Business Segment Information

6 Months Ended

Jun. 30, 2012

Business Segment Information

Note 12.   Business Segment Information

Reportable business segment information for the three and six months ended June 30 is as follows:

	Metal				Plastic
	Containers		Closures		Containers		Corporate			Total
	(Dollars in thousands)
Three Months Ended June 30, 2012
Net sales	$	479,687	$	183,088	$	158,836	$	-		$	821,611
Depreciation and amortization(1)		21,346		7,938		10,414		289			39,987
Rationalization charges		-		-		158		-			158
Segment income from operations(2) (3)		40,134		22,918		9,061		(3,474	)		68,639
Three Months Ended June 30, 2011
Net sales	$	482,258	$	184,538	$	155,428	$	-		$	822,224
Depreciation and amortization(1)		20,160		8,604		11,191		424			40,379
Rationalization charges		1,378		317		674		-			2,369
Segment income from operations(2) (3)		42,874		22,681		4,512		24,395			94,462
Six Months Ended June 30, 2012
Net sales	$	924,572	$	346,052	$	319,344	$	-		$	1,589,968
Depreciation and amortization(1)		43,005		16,211		20,935		707			80,858
Rationalization charges		-		2,141		1,620		-			3,761
Segment income from operations(2) (3)		82,151		40,939		17,980		(6,668	)		134,402
Six Months Ended June 30, 2011
Net sales	$	872,742	$	344,580	$	307,990	$	-		$	1,525,312
Depreciation and amortization(1)		37,983		16,720		22,308		847			77,858
Rationalization charges		1,378		1,392		1,331		-			4,101
Segment income from operations(2) (3)		81,238		38,498		10,827		17,542			148,105

(1)   Depreciation and amortization excludes amortization of debt issuance costs of $1.2 million and amortization of debt discount and issuance costs of $0.8 million for the three months ended June 30, 2012 and 2011, respectively, and amortization of debt discount and issuance costs of $2.5 million and $1.6 million for the six months ended June 30, 2012 and 2011, respectively.

(2)   Income from operations for corporate includes costs attributable to announced acquisitions of $0.7 million for the three and six months ended June 30, 2012 and also includes income of $27.0 million and $25.2 million for the three and six months ended June 30, 2011, respectively, for proceeds received as a result of the termination of the merger agreement with Graham Packaging Company Inc., or the Graham Packaging merger agreement, net of costs associated with certain corporate development activities.

(3)   Income from operations of the metal containers segment includes new plant start-up costs of $1.9 million and $2.9 million for the three and six months ended June 30, 2012, respectively, and a charge for the resolution of a past product liability dispute of $3.3 million for the three and six months ended June 30, 2011.

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

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2012		2011		2012		2011
	(Dollars in thousands)
Total segment income from operations	$	68,639	$	94,462	$	134,402	$	148,105
Interest and other debt expense		54,732		16,446		70,322		30,385
Income before income taxes	$	13,907	$	78,016	$	64,080	$	117,720

Sales and income from operations of our metal container and closures businesses 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.