Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We evaluate performance of our business segments and allocate resources based on the adjusted EBIT of our business segments. Adjusted EBIT is not a defined term under GAAP. We define adjusted EBIT as income before interest and income taxes excluding acquired intangible asset amortization expense, other pension expense (income) for U.S. pension plans, rationalization charges, the impact from charges for the write-up of acquired inventory required under purchase accounting, the charge for the European Commission settlement and costs attributed to announced acquisitions. We began using adjusted EBIT in 2023. Previously, we used segment income, without any adjustments, for our business segments. We have provided adjusted EBIT for 2022 below for comparative purposes. Adjusted EBIT should not be considered in isolation or as a substitute for income before interest and income taxes or any other financial data prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Reportable segment information for the three months ended March 31 was as follows:

	Dispensing and Specialty Closures		Metal Containers		Custom Containers		Corporate		Total
	(Dollars in thousands)
Three months ended March 31, 2023
Net sales	$	579,932	$	670,096	$	168,253	$	—	$	1,418,281
Adjusted EBIT	82,936		52,400		20,034		(5,966)		149,404
Depreciation	24,759		17,988		8,835		40		51,622
Three months ended March 31, 2022
Net sales	$	597,927	$	650,726	$	193,233	$	—	$	1,441,886
Adjusted EBIT	96,528		32,951		23,364		(6,624)		146,219
Depreciation	24,661		20,731		8,743		42		54,177

Total adjusted EBIT is reconciled to income before income taxes for the three months ended March 31 as follows:

	2023		2022
	(Dollars in thousands)
Total adjusted EBIT	$	149,404	$	146,219
Less:
Acquired intangible asset amortization expense	13,221		13,430
Other pension expense (income) for U.S. pension plans	834		(11,982)
Rationalization charges	4,121		1,379
Income before interest and income taxes	131,228		143,392
Less interest and other debt expense	36,766		30,830
Income before income taxes	$	94,462	$	112,562

Net sales and adjusted EBIT of our metal containers segment and of part of our dispensing and specialty closures segment are dependent, in part, upon the vegetable and fruit harvests in the United States and, to a lesser extent, in a variety of national growing regions in Europe. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in applicable regions. Because of the seasonality of the harvests, we have historically experienced higher unit sales volume in the third quarter of our fiscal year and generated a disproportionate amount of our annual adjusted EBIT during that quarter.