XML 41 R27.htm IDEA: XBRL DOCUMENT v3.24.0.1
BUSINESS SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
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 fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden products. The metal containers segment manufactures steel and aluminum containers for pet and human food and general line products. The custom containers segment manufactures custom designed plastic containers for pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive 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.

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 and 2021 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 each of the past three years is as follows:
 
Dispensing and Specialty ClosuresMetal
Containers		Custom ContainersCorporateTotal
 (Dollars in thousands)
2023
Net sales$2,221,430 $3,140,830 $625,945 $— $5,988,205 
Income before interest
and income taxes
281,030 287,380 52,836 (25,810)595,436 
Adjusted EBIT340,644 282,402 63,317 (25,810)660,553 
Depreciation101,664 73,558 34,846 74 210,142 
Segment assets4,437,833 2,178,416 898,582 46,270 7,561,101 
Capital expenditures110,073 95,260 20,474 1,003 226,810 
2022
Net sales$2,316,690 $3,371,776 $723,033 $— $6,411,499 
Income before interest
and income taxes
323,001 234,156 92,478 (47,673)601,962 
Adjusted EBIT359,753 282,214 86,809 (22,470)706,306 
Depreciation98,214 76,537 35,325 159 210,235 
Segment assets4,391,599 1,965,415 898,308 43,911 7,299,233 
Capital expenditures105,759 81,533 28,462 7 215,761 
2021
Net sales$2,160,484 $2,808,065 $708,556 $— $5,677,105 
Income before interest
and income taxes
262,148 253,736 92,359 (32,130)576,113 
Adjusted EBIT295,194 235,317 86,462 (27,171)589,802 
Depreciation87,375 83,756 34,499 157 205,787 
Segment assets4,429,186 2,319,982 888,715 34,490 7,672,373 
Capital expenditures113,601 78,462 40,196 5 232,264 


Total adjusted EBIT is reconciled to income before income taxes as follows:
202320222021
 (Dollars in thousands)
Total adjusted EBIT$660,553 $706,306 $589,802 
Less:
Acquired intangible asset amortization expense53,091 52,553 44,573 
Other pension expense (income) for U.S. pension plans3,614 (47,494)(53,469)
Rationalization charges8,412 74,082 15,010 
Purchase accounting write-up of inventory— — 2,617 
European Commission settlement— 25,203 — 
Costs attributed to announced acquisitions— — 4,958 
Income before interest and income taxes595,436 601,962 576,113 
Interest and other debt expense173,315 127,823 109,800 
Income before income taxes$422,121 $474,139 $466,313 
Total segment assets at December 31 are reconciled to total assets as follows:
20232022
 (Dollars in thousands)
Total segment assets$7,561,101 $7,299,233 
Other assets50,135 46,524 
Total assets$7,611,236 $7,345,757 

Financial information relating to our operations by geographic area is as follows:
202320222021
 (Dollars in thousands)
Net sales:
United States$4,377,928 $4,805,266 $4,131,375 
Foreign:
Europe1,201,534 1,299,616 1,166,557 
Other408,743 306,617 379,173 
Total net sales from
foreign operations
1,610,277 1,606,233 1,545,730 
Total net sales$5,988,205 $6,411,499 $5,677,105 
Long-lived assets:
United States$1,258,531 $1,286,034 
Foreign:
Europe540,254 481,648 
Other162,800 163,815 
Total long-lived assets at
foreign operations
703,054 645,463 
Total long-lived assets$1,961,585 $1,931,497 
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 11.2 percent, 11.4 percent and 10.7 percent of our consolidated net sales in 2023, 2022 and 2021, respectively.
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.