Segment Information

6 Months Ended

Jun. 30, 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 was as follows:

	Dispensing and Specialty Closures		Metal Containers		Custom Containers		Corporate		Total
	(Dollars in thousands)
Three Months Ended June 30, 2023
Net sales	$	560,096	$	710,864	$	155,767	$	—	$	1,426,727
Adjusted EBIT	76,882		75,740		18,444		(10,268)		160,798
Depreciation	25,756		18,528		8,999		18		53,301
Three Months Ended June 30, 2022
Net sales	$	602,431	$	754,396	$	186,954	$	—	$	1,543,781
Adjusted EBIT	100,340		63,439		29,451		(5,377)		187,853
Depreciation	24,808		19,558		8,796		39		53,201
Six Months Ended June 30, 2023
Net sales	$	1,140,028	$	1,380,960	$	324,020	$	—	$	2,845,008
Adjusted EBIT	159,818		128,140		38,478		(16,234)		310,202
Depreciation	50,515		36,516		17,834		58		104,923
Six Months Ended June 30, 2022
Net sales	$	1,200,358	$	1,405,122	$	380,187	$	—	$	2,985,667
Adjusted EBIT	196,868		96,390		52,815		(12,001)		334,072
Depreciation	49,469		40,289		17,539		81		107,378

Total adjusted EBIT is reconciled to income before income taxes as follows:

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
	(Dollars in thousands)
Total adjusted EBIT	$	160,798	$	187,853	$	310,202	$	334,072
Less:
Acquired intangible asset amortization expense	13,304		13,188		26,525		26,618
Other pension expense (income) for U.S. pension plans	834		(11,983)		1,668		(23,965)
Rationalization charges	2,667		3,428		6,788		4,807
European Commission settlement	—		25,203		—		25,203
Income before interest and income taxes	143,993		158,017		275,221		301,409
Less interest and other debt expense	46,792		28,660		83,558		59,490
Income before income taxes	$	97,201	$	129,357	$	191,663	$	241,919

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.