XML 35 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Business Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2012
Business Segment Information | NOTE 16. BUSINESS SEGMENT INFORMATION We are engaged in the packaging industry and report our results in three business segments: metal containers, closures and plastic containers. The metal containers segment manufactures steel and aluminum containers for human and pet food and general line products. The closures segment manufactures an extensive range of metal, composite and plastic vacuum closures for food and beverage products and plastic closures for the dairy and juice markets. The plastic containers segment manufactures custom designed plastic containers, tubes and closures for personal care, food, health care, pharmaceutical, household and industrial chemical, pet care, agricultural chemical, 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 metal container business operates primarily in North America and Europe. Our closures business operates in North and South America, Europe and Asia. Our plastic container business operates primarily 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:
|  | Metal Containers |  |  | Closures |  |  | Plastic Containers |  |  | Corporate |  |  | Total |
|  | (Dollars in thousands) |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 2,293,749 |  |  | $ | 680,031 |  |  | $ | 614,538 |  |  | $ | — |  |  | $ | 3,588,318 |
Depreciation and amortization |  |  | 87,629 |  |  |  | 32,427 |  |  |  | 44,203 |  |  |  | 756 |  |  |  | 165,015 |
Rationalization charges |  |  | 2,446 |  |  |  | 2,878 |  |  |  | 3,336 |  |  |  | — |  |  |  | 8,660 |
Segment income from operations (1) |  |  | 231,456 |  |  |  | 73,148 |  |  |  | 30,848 |  |  |  | (9,943 | ) |  |  | 325,509 |
Segment assets |  |  | 1,742,842 |  |  |  | 639,598 |  |  |  | 809,937 |  |  |  | 33,726 |  |  |  | 3,226,103 |
Capital expenditures |  |  | 68,737 |  |  |  | 19,838 |  |  |  | 30,405 |  |  |  | 261 |  |  |  | 119,241 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 2,211,549 |  |  | $ | 687,801 |  |  | $ | 609,877 |  |  | $ | — |  |  | $ | 3,509,227 |
Depreciation and amortization |  |  | 79,655 |  |  |  | 33,232 |  |  |  | 44,237 |  |  |  | 1,677 |  |  |  | 158,801 |
Rationalization charges |  |  | 1,378 |  |  |  | 1,805 |  |  |  | 3,996 |  |  |  | 538 |  |  |  | 7,717 |
Segment income from operations (2) |  |  | 256,336 |  |  |  | 75,897 |  |  |  | 12,639 |  |  |  | 9,249 |  |  |  | 354,121 |
Segment assets |  |  | 1,714,516 |  |  |  | 632,048 |  |  |  | 561,312 |  |  |  | 36,868 |  |  |  | 2,944,744 |
Capital expenditures |  |  | 108,394 |  |  |  | 24,637 |  |  |  | 39,904 |  |  |  | 74 |  |  |  | 173,009 |
2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,864,157 |  |  | $ | 618,805 |  |  | $ | 588,583 |  |  | $ | — |  |  | $ | 3,071,545 |
Depreciation and amortization |  |  | 67,114 |  |  |  | 28,771 |  |  |  | 45,385 |  |  |  | 1,679 |  |  |  | 142,949 |
Rationalization charges |  |  | 694 |  |  |  | 9,212 |  |  |  | 12,308 |  |  |  | — |  |  |  | 22,214 |
Segment income from operations (3) |  |  | 232,620 |  |  |  | 58,557 |  |  |  | 10,291 |  |  |  | (18,149 | ) |  |  | 283,319 |
Segment assets |  |  | 931,244 |  |  |  | 627,006 |  |  |  | 537,978 |  |  |  | 39,940 |  |  |  | 2,136,168 |
Capital expenditures |  |  | 47,836 |  |  |  | 15,769 |  |  |  | 41,707 |  |  |  | 83 |  |  |  | 105,395 |
1) | Metal containers includes plant start-up costs of $6.4 million. Corporate includes costs attributable to announced acquisitions of $1.5 million.
2) | Metal containers includes a charge for the resolution of a past product liability dispute of $3.3 million. Corporate includes income of $25.2 million for proceeds received as a result of the termination of the merger agreement with Graham Packaging, net of costs associated with certain corporate development activities.
3) | Closures includes a charge of $3.2 million for the remeasurement of net assets in Venezuela. Corporate includes costs attributable to announced acquisitions of $2.7 million.
Total segment income from operations is reconciled to income before income taxes as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Total segment income from operations |  | $ | 325,509 |  |  | $ | 354,121 |  |  | $ | 283,319 |
Interest and other debt expense |  |  | 101,722 |  |  |  | 63,954 |  |  |  | 61,639 |
Income before income taxes |  | $ | 223,787 |  |  | $ | 290,167 |  |  | $ | 221,680 |
Total segment assets at December 31 are reconciled to total assets as follows:
|  | 2012 |  |  | 2011 |  |  |
|  | (Dollars in thousands) |  |  |
Total segment assets |  | $ | 3,226,103 |  |  | $ | 2,944,744 |  |  |
Other assets |  |  | 67,440 |  |  |  | 34,343 |  |  |
Total assets |  | $ | 3,293,543 |  |  | $ | 2,979,087 |  |  |
Financial information relating to our operations by geographic area is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,845,773 |  |  | $ | 2,767,293 |  |  | $ | 2,627,539 |
Foreign: |  |  |  |  |  |  |  |  |  |  |  |
Europe |  |  | 559,818 |  |  |  | 563,991 |  |  |  | 269,513 |
Canada |  |  | 124,059 |  |  |  | 128,882 |  |  |  | 121,494 |
Other |  |  | 58,668 |  |  |  | 49,061 |  |  |  | 52,999 |
Total net sales from foreign operations |  |  | 742,545 |  |  |  | 741,934 |  |  |  | 444,006 |
Total net sales |  | $ | 3,588,318 |  |  | $ | 3,509,227 |  |  | $ | 3,071,545 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 679,273 |  |  | $ | 689,705 |  |  |  |  |
Foreign: |  |  |  |  |  |  |  |  |  |  |  |
Europe |  |  | 341,908 |  |  |  | 301,001 |  |  |  |  |
Canada |  |  | 46,804 |  |  |  | 42,021 |  |  |  |  |
Other |  |  | 30,824 |  |  |  | 31,981 |  |  |  |  |
Total long-lived assets at foreign operations |  |  | 419,536 |  |  |  | 375,003 |  |  |  |  |
Total long-lived assets |  | $ | 1,098,809 |  |  | $ | 1,064,708 |  |  |  |  |
Net sales are attributed to the country from which the product was manufactured and shipped. Sales of our metal containers segment to Nestlé Food Company accounted for 11.3 percent, 10.6 percent and 10.4 percent of our consolidated net sales in 2012, 2011 and 2010, respectively. Sales and income from operations of our metal container business and part of our closures business 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 (see Note 17).

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration