Business Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

We are engaged in the packaging industry and report our results in three business segments, which are our reportable segments: metal containers, closures and plastic containers. The metal containers segment manufactures steel and aluminum containers for human and pet food and general line products. The closures segment manufactures an extensive range of dispensing systems and metal and plastic closures for food, beverage, health care, garden, home, personal care and beauty products. The plastic containers segment manufactures custom designed plastic containers for personal care, food, health care, pharmaceutical, household and industrial chemical, pet food and care, agricultural, automotive and marine chemical products. These segments are strategic business operations that are managed separately to maximize the production, technology and marketing of their packaging product. Our metal container business operates primarily in North America and Europe. Our closures business operates in North and South America, Europe and Asia. Our plastic container business operates primarily in North America. The accounting policies of the business segments are the same as those described in Note 1.

Information for each of the past three years for our business segments is as follows:

	Metal Containers		Closures		Plastic Containers		Corporate		Total
	(Dollars in thousands)
2020
Net sales	$	2,557,980	$	1,712,433	$	651,530	$	—	$	4,921,943
Depreciation and amortization	82,404		99,062		37,473		159		219,098
Rationalization charges	9,905		5,759		367		—		16,031
Segment income (1)	246,628		224,374		87,810		(46,426)		512,386
Segment assets	1,973,933		3,617,969		814,303		35,214		6,441,419
Capital expenditures	80,701		91,291		52,151		34		224,177
2019
Net sales	$	2,473,214	$	1,405,611	$	611,102	$	—	$	4,489,927
Depreciation and amortization	86,114		83,133		37,077		159		206,483
Rationalization charges	49,425		6,562		364		—		56,351
Segment income (1)	159,980		173,485		48,915		(22,894)		359,486
Segment assets	1,853,875		2,263,131		722,848		35,474		4,875,328
Capital expenditures	102,832		95,153		32,928		31		230,944
2018
Net sales	$	2,377,980	$	1,456,799	$	614,096	$	—	$	4,448,875
Depreciation and amortization	81,420		74,217		35,949		151		191,737
Rationalization charges	5,316		180		757		—		6,253
Segment income	198,826		189,906		42,562		(19,194)		412,100
Segment assets	1,601,944		2,169,985		722,205		33,791		4,527,925
Capital expenditures	84,490		62,183		44,242		58		190,973

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(1)    Corporate includes costs attributed to announced acquisitions of $19.3 million and $1.8 million in 2020 and 2019, respectively.

Total segment income is reconciled to income before income taxes as follows:

	2020		2019		2018
	(Dollars in thousands)
Total segment income	$	512,386	$	359,486	$	412,100
Interest and other debt expense	105,308		107,350		118,799
Income before income taxes	$	407,078	$	252,136	$	293,301

Total segment assets at December 31 are reconciled to total assets as follows:

	2020		2019
	(Dollars in thousands)
Total segment assets	$	6,441,419	$	4,875,328
Other assets	70,167		55,731
Total assets	$	6,511,586	$	4,931,059

Financial information relating to our operations by geographic area is as follows:

	2020		2019		2018
	(Dollars in thousands)
Net sales:
United States	$	3,650,953	$	3,418,848	$	3,333,668
Foreign:
Europe	953,695		818,032		858,255
Other	317,295		253,047		256,952
Total net sales from foreign operations	1,270,990		1,071,079		1,115,207
Total net sales	$	4,921,943	$	4,489,927	$	4,448,875
Long-lived assets:
United States	$	1,121,596	$	1,028,965
Foreign:
Europe	551,365		419,195
Other	167,797		122,171
Total long-lived assets at foreign operations	719,162		541,366
Total long-lived assets	$	1,840,758	$	1,570,331

Net sales are attributed to the country from which the product was manufactured and shipped.

Sales of our metal containers segment to Nestlé Food Company accounted for 10.5 percent, 11.1 percent and 10.4 percent of our consolidated net sales in 2020, 2019 and 2018, respectively.

Sales and income from operations of our metal container business and part of our closures business 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 income from operations during that quarter.