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Business Segment Information
 6 Months Ended
Jun. 30, 2011
Business Segment Information
Note 13.   Business Segment Information

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

   
Metal
          
Plastic
              
   
Containers(1)
    
Closures
    
Containers
    
Corporate
    
Total
  
   
(Dollars in thousands)
  
Three Months Ended June 30, 2011
                              
                               
Net sales
   $ 482,258     $ 184,538     $ 155,428     $  -     $ 822,224  
Depreciation and amortization(2)
     20,160       8,604       11,191       424       40,379  
Rationalization charges
     1,378       317       674       -       2,369  
Segment income from operations(3) (4)
     42,874       22,681       4,512       24,395       94,462  
                                         
Three Months Ended June 30, 2010
                                        
                                         
Net sales
   $ 378,063     $ 165,773     $ 150,013     $  -     $ 693,849  
Depreciation and amortization(2)
     16,881       6,929       11,573       419       35,802  
Rationalization charges
     314       -       395       -       709  
Segment income from operations
     44,034       23,955       3,969       (4,900 )     67,058  
                                         
Six Months Ended June 30, 2011
                                        
                                         
Net sales
   $ 872,742     $ 344,580     $ 307,990     $ -     $ 1,525,312  
Depreciation and amortization(2)
     37,983       16,720       22,308       847       77,858  
Rationalization charges
     1,378       1,392       1,331       -       4,101  
Segment income from operations(3) (4)
     81,238       38,498       10,827       17,542       148,105  
                                         
Six Months Ended June 30, 2010
                                        
                                         
Net sales
   $ 753,115     $ 309,819     $ 294,951     $ -     $ 1,357,885  
Depreciation and amortization(2)
     33,602       14,059       22,738       838       71,237  
Rationalization charges
     314       -       2,449       -       2,763  
Segment income from operations(5)
     90,424       35,050       6,874       (8,584 )     123,764  

(1)  
Our metal containers segment includes the operations formerly categorized as metal food containers and the VN operations acquired in March 2011.
(2)  
Depreciation and amortization excludes amortization of debt discount and issuance costs of $0.8 million and $0.6 million for the three months ended June 30, 2011 and 2010, respectively, and $1.6 million and $1.3 million for the six months ended June 30, 2011 and 2010, respectively.
(3)  
Income from operations for corporate 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 Graham Packaging merger agreement, net of costs associated with certain corporate development activities.
(4)  
Income from operations of the metal containers segment includes 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.
(5)  
Income from operations for the closures segment includes a charge of $3.2 million for the remeasurement of net assets in the Venezuela operations to the devalued official Bolivar exchange rate.

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,
    
     
2011
    
2010
    
2011
    
2010
    
     
(Dollars in thousands)
    
                             
 
Total segment income from operations
   $ 94,462     $ 67,058     $ 148,105     $ 123,764    
 
Interest and other debt expense
     16,446       11,971        30,385        24,506    
 
Income before income taxes
   $ 78,016     $ 55,087     $ 117,720     $ 99,258    

Sales and income from operations of our metal container business are dependent, in part, upon the vegetable and fruit harvests in the midwest and western regions of the United States and, to a lesser degree, various geographies in Central and Eastern Europe.  Our closures business is also dependent, in part, upon vegetable and fruit harvests.  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.