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Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information [Abstract]  
Segment Information
Segment Information

Prior to the acquisition of Boise on October 25, 2013, we manufactured and sold packaging products and reported our results in one reportable segment. In connection with the acquisition, we expanded our packaging business and entered the paper business as the third largest producer of white papers in North America in terms of production capacity. As a result, we began managing our business in three reportable segments: Packaging, Paper, and Corporate and Other. These segments represent distinct businesses that are managed separately because of differing products and services. Each of these businesses requires distinct operating and marketing strategies. There are no differences in our basis of segmentation or in our basis of measurement of segment profit or loss from those disclosed in Note 19, Segment Information, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" in our Annual Report on Form 10-K for the year ended December 31, 2013.

Each segment's profits and losses are measured on operating profits before interest expense and interest income. After the acquisition of Boise, expenses that were historically included in "Corporate overhead" on our Consolidated Statements of Income, were reclassified to "Selling, general, and administrative expenses" to conform with the current year presentation. In addition, after increasing our product offerings to include both packaging and paper products after the Boise acquisition, we began allocating the amounts associated with running those businesses, previously included in "Corporate overhead", to our segments. For many of these allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

Effective January 1, 2014, the Company elected to change its method of accounting for certain inventories from lower of cost, as determined by the LIFO method, or market, to lower of cost, as determined by the average cost method, or market. The Company has applied this change in method of inventory costing retrospectively to all prior periods presented herein in accordance with U.S. generally accepted accounting principles relating to accounting changes. See Note 2, Change in Accounting Principle; Inventories, for additional information.

An analysis of operations by reportable segment is as follows (dollars in millions):
 
 
Sales, net
 
Operating Income (Loss)
 
Three Months Ended March 31, 2014 (a)
 
Trade
 
Inter-
segment
 
Total
 
 
Packaging
 
$
1,095.6

 
$
1.8

 
$
1,097.4

 
$
170.7

(b)
Paper
 
309.3

 
—

 
309.3

 
27.7

(c)
Corporate and Other
 
26.4

 
37.7

 
64.1

 
(37.5
)
(d)
Intersegment eliminations
 
—

 
(39.5
)
 
(39.5
)
 
—

 
 
 
$
1,431.3

 
$
—

 
$
1,431.3

 
160.9

 
Interest expense, net
 
 
 
 
 
 
 
(20.8
)
 
Income before taxes
 
 
 
 
 
 
 
$
140.1

 
 
 
Sales, net
 
Operating Income (Loss)
 
Three Months Ended March 31, 2013
 
Trade
 
Inter-
segment
 
Total
 
 
Packaging
 
$
755.2

 
$
—

 
$
755.2

 
$
117.9

 
Corporate and Other
 
—

 
—

 
—

 
(11.9
)
 
 
 
$
755.2

 
$
—

 
$
755.2

 
106.0

 
Interest expense, net
 
 
 
 
 
 
 
(9.3
)
 
Income before taxes
 
 
 
 
 
 
 
$
96.7

 
____________
(a)
On October 25, 2013, we acquired Boise. Our first quarter 2014 results include Boise for the full period.
(b)
Includes costs related primarily to our plans to convert the Number 3 newsprint machine at our DeRidder, Louisiana, mill to produce lightweight linerboard and corrugating medium and to exit the newsprint business in mid-September 2014. The three months ended March 31, 2014, included $4.0 million of restructuring charges, of which $2.9 million were recorded in "Cost of sales" and $1.1 million were recorded in "Other expense, net".
(c)
Includes $0.7 million of Boise acquisition integration-related costs, primarily for employee severance, professional fees, and other costs. These costs are recorded in "Other expense, net".
(d)
Includes $3.4 million of Boise acquisition integration-related costs and $17.6 million of costs accrued for the settlement of the Kleen Products LLC v Packaging Corp. of America et al class action lawsuit. See Note 18, Commitments, Guarantees, Indemnifications and Legal Proceedings, for more information.