Business Segment Information

3 Months Ended

Mar. 31, 2013

Business Segment Information

Note 11.             Business Segment Information

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

	Metal				Plastic
	Containers		Closures		Containers		Corporate			Total
	(Dollars in thousands)
2013
Net sales	$	463,760	$	161,142	$	170,839	$	-		$	795,741
Depreciation and amortization(1)		22,008		8,327		12,154		34			42,523
Rationalization charges		1,050		-		301		-			1,351
Segment income from operations(2)(3)(4)		39,561		10,632		10,406		(2,475	)		58,124
2012
Net sales	$	444,885	$	162,965	$	160,507	$	-		$	768,357
Depreciation and amortization(1)		21,661		8,271		10,521		418			40,871
Rationalization charges		-		2,141		1,462		-			3,603
Segment income from operations(2)		42,017		18,020		8,919		(3,194	)		65,762

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(1)   Depreciation and amortization excludes amortization of debt issuance costs of $1.2 million and amortization of debt discount and issuance costs of $1.3 million for the three months ended March 31, 2013 and 2012, respectively.

(2)   Income from operations of the metal containers segment includes plant start-up costs of $0.8 million and $1.0 million for the three months ended March 31, 2013 and 2012, respectively.

(3)   Income from operations of the closures segment includes a charge of $3.0 million for the remeasurement of net assets in Venezuela due to the recently devalued official Bolivar exchange rate.

(4)   Income from operations for Corporate includes costs attributable to announced acquisitions of $0.2 million.

Total segment income from operations is reconciled to income before income taxes for the three months ended March 31 as follows:

	2013		2012
	(Dollars in thousands)
Total segment income from operations	$	58,124	$	65,762
Interest and other debt expense		17,417		15,588
Income before income taxes	$	40,707	$	50,174

Sales and income from operations of our metal container business and part of our closures business are dependent, in part, upon the fruit and vegetable 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 income from operations during that quarter.