BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

We are engaged in the packaging industry and report our results in three segments, which are our reportable segments: dispensing and specialty closures; metal containers; and custom containers. The dispensing and specialty closures segment manufactures an extensive range of dispensing systems and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products. The metal containers segment manufactures steel and aluminum containers for human and pet food and general line products. The custom 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 dispensing and specialty closures segment operates in North and South America, Europe and Asia. Our metal containers segment operates primarily in North America and Europe. Our custom containers segment operates 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:

 

	Dispensing and Specialty Closures		Metal Containers		Custom Containers		Corporate		Total
	(Dollars in thousands)
2022
Net sales	$	2,316,690	$	3,371,776	$	723,033	$	—	$	6,411,499
Depreciation and amortization	144,980		77,789		39,860		159		262,788
Rationalization charges	944		73,137		—		—		74,081
Segment income (1)	323,001		234,156		92,478		(47,673)		601,962
Segment assets	4,391,599		1,965,415		898,308		43,911		7,299,233
Capital expenditures	105,759		81,533		28,462		7		215,761
2021
Net sales	$	2,160,484	$	2,808,065	$	708,556	$	—	$	5,677,105
Depreciation and amortization	125,640		85,499		39,064		157		250,360
Rationalization charges	5,806		8,873		331		—		15,010
Segment income (1)	262,148		253,736		92,359		(32,130)		576,113
Segment assets	4,429,186		2,319,982		888,715		34,490		7,672,373
Capital expenditures	113,601		78,462		40,196		5		232,264
2020
Net sales	$	1,712,433	$	2,557,980	$	651,530	$	—	$	4,921,943
Depreciation and amortization	99,062		82,404		37,473		159		219,098
Rationalization charges	5,759		9,905		367		—		16,031
Segment income (1)	224,374		246,628		87,810		(46,426)		512,386
Segment assets	3,617,969		1,973,933		814,303		35,214		6,441,419
Capital expenditures	91,291		80,701		52,151		34		224,177

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(1)    Corporate includes a charge of $25.2 million for the settlement with the European Commission in 2022 and costs attributed to announced acquisitions of $5.0 million and $19.3 million in 2021 and 2020, respectively.

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

	2022		2021		2020
	(Dollars in thousands)
Total segment income	$	601,962	$	576,113	$	512,386
Interest and other debt expense	127,823		109,800		105,308
Income before income taxes	$	474,139	$	466,313	$	407,078

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

	2022		2021
	(Dollars in thousands)
Total segment assets	$	7,299,233	$	7,672,373
Other assets	46,524		98,473
Total assets	$	7,345,757	$	7,770,846

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

	2022		2021		2020
	(Dollars in thousands)
Net sales:
United States	$	4,805,266	$	4,131,375	$	3,650,953
Foreign:
Europe	1,299,616		1,166,557		953,695
Other	306,617		379,173		317,295
Total net sales from foreign operations	1,606,233		1,545,730		1,270,990
Total net sales	$	6,411,499	$	5,677,105	$	4,921,943
Long-lived assets:
United States	$	1,286,034	$	1,286,167
Foreign:
Europe	481,648		536,401
Other	163,815		171,309
Total long-lived assets at foreign operations	645,463		707,710
Total long-lived assets	$	1,931,497	$	1,993,877

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

Sales of our metal containers segment to Nestlé S.A. accounted for 11.4 percent, 10.7 percent and 10.5 percent of our consolidated net sales in 2022, 2021 and 2020, respectively.

Sales and income from operations 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 income from operations during that quarter.