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Segment Information | 9 Months Ended
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Sep. 30, 2014
Segment Reporting [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" of our updated 2013 Financial Statements. 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 were as follows (dollars in millions):
|  | Sales, net |  | Operating Income (Loss) |
Three Months Ended September 30, 2014 (a) |  | Trade |  | Inter- segment |  | Total |  |
Packaging |  | $ | 1,174.2 |  |  | $ | 1.5 |  |  | $ | 1,175.7 |  |  | $ | 164.7 |  | (b)
Paper |  | 312.5 |  |  | — |  |  | 312.5 |  |  | 43.0 |  | (c)
Corporate and Other |  | 32.2 |  |  | 37.0 |  |  | 69.2 |  |  | (19.3 | ) | (d)
Intersegment eliminations |  | — |  |  | (38.5 | ) |  | (38.5 | ) |  | — |  |
|  | $ | 1,518.9 |  |  | $ | — |  |  | $ | 1,518.9 |  |  | 188.4 |  |
Interest expense, net |  |  |  |  |  |  |  | (23.1 | ) | (e)
Income before taxes |  |  |  |  |  |  |  | $ | 165.3 |  |
|  | Sales, net |  | Operating Income (Loss) |
Three Months Ended September 30, 2013 |  | Trade |  | Inter- segment |  | Total |  |
Packaging |  | $ | 845.4 |  |  | $ | — |  |  | $ | 845.4 |  |  | $ | 154.9 |  | (f)
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (12.1 | ) | (g)
|  | $ | 845.4 |  |  | $ | — |  |  | $ | 845.4 |  |  | 142.8 |  |
Interest expense, net |  |  |  |  |  |  |  | (11.9 | ) | (h)
Income before taxes |  |  |  |  |  |  |  | $ | 130.9 |  |
|  | Sales, net |  | Operating Income (Loss) |
Nine Months Ended September 30, 2014 (a) |  | Trade |  | Inter- segment |  | Total |  |
Packaging |  | $ | 3,413.8 |  |  | $ | 4.5 |  |  | $ | 3,418.3 |  |  | $ | 501.8 |  | (b)
Paper |  | 917.0 |  |  | — |  |  | 917.0 |  |  | 104.3 |  | (c)
Corporate and Other |  | 87.9 |  |  | 112.8 |  |  | 200.7 |  |  | (76.6 | ) | (d)
Intersegment eliminations |  | — |  |  | (117.3 | ) |  | (117.3 | ) |  | — |  |
|  | $ | 4,418.7 |  |  | $ | — |  |  | $ | 4,418.7 |  |  | 529.5 |  |
Interest expense, net |  |  |  |  |  |  |  | (65.3 | ) | (e)
Income before taxes |  |  |  |  |  |  |  | $ | 464.2 |  |
|  | Sales, net |  | Operating Income (Loss) |
Nine Months Ended September 30, 2013 |  | Trade |  | Inter- segment |  | Total |  |
Packaging |  | $ | 2,400.9 |  |  | $ | — |  |  | $ | 2,400.9 |  |  | $ | 395.1 |  | (f)
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (36.1 | ) | (g)
|  | $ | 2,400.9 |  |  | $ | — |  |  | $ | 2,400.9 |  |  | 359.0 |  |
Interest expense, net |  |  |  |  |  |  |  | (30.4 | ) | (h)
Income before taxes |  |  |  |  |  |  |  | $ | 328.6 |  |
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(a) | On October 25, 2013, we acquired Boise. The 2014 results include Boise for the full period.
(b) | Includes costs related primarily to the conversion of the Number 3 newsprint machine at our DeRidder, Louisiana, mill to produce lightweight linerboard and corrugating medium, and our exit from the newsprint business in September 2014. The three and nine months ended September 30, 2014, include $26.0 million and $47.8 million, respectively, of restructuring charges, primarily accelerated depreciation. The three and nine months ended September 30, 2014, includes $1.0 million and $5.4 million of Boise acquisition integration-related and other costs recorded in "Other expense, net".
(c) | Includes $0.4 million of income, net of expenses, for the nine months ended September 30, 2014, of integration related and other costs recorded in "Other expense, net".
(d) | Includes $2.0 million and $7.0 million, for the three and nine months ended September 30, 2014, of Boise acquisition integration-related and other costs recorded in "Other expense, net".
The nine months ended September 30, 2014, includes $17.6 million of costs 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. These costs are recorded in "Other expense, net".
(e) | Includes $1.5 million of expense related to the write-off of deferred financing costs in connection with the debt refinancing discussed in Note 10, Debt.
(f) | Includes $3.1 million and $10.9 million, for the three and nine months ended September 30, 2013, respectively, of non-cash pension curtailment charges related to pension plan changes in which certain hourly corrugated plant and containerboard mill employees will transition from a defined benefit pension plan to a defined contribution (401k) plan.
(g) | Includes $1.5 million of Boise acquisition-related costs primarily for professional fees related to transaction-advisory services.
(h) | Includes $2.7 million of acquisition-related costs primarily related to financing the acquisition of Boise.

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- 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 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: 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 4: 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 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 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: 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 8: 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 Reference 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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