[1]

Prior periods have not been adjusted under the modified retrospective method for Topic 606.

[2]

(a)Effective January 1, 2018, the Company adopted ASU 2017-07, Compensation: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost and applied this standard retrospectively to the prior period reflected herein. This new standard requires the presentation of non-service cost components of net periodic benefits expense to be shown separately outside the subtotal of operating income in the income statement. See Note 2, New and Recently Adopted Accounting Standards, for more information. The components of our financial statements affected by the change in presentation of operating and non-operating pension expense as originally reported in 2017 and as adjusted for the requirements per the new standard are as follows (dollars in millions): Segment income (loss) Three Months Ended September 30, 2017 As Reported Non-Operating Pension Adjustment Three Months Ended September 30, 2017 Adjusted Packaging $261.5 $1.7 $263.2 Paper (0.7) (1.9) (2.6) Corporate (18.5) 0.5 (18.0) Income from operations 242.3 0.3 242.6 Interest expense, net and other (25.4) (0.3) (25.7) Income before taxes $216.9 $— $216.9 Segment income (loss) Nine Months Ended September 30, 2017 As Reported Non-Operating Pension Adjustment Nine Months Ended September 30, 2017 Adjusted Packaging $676.8 $4.9 $681.7 Paper 58.1 (5.6) 52.5 Corporate (55.7) 1.6 (54.1) Income from operations 679.2 0.9 680.1 Interest expense, net and other (74.6) (0.9) (75.5) Income before taxes $604.6 $— $604.6

[3]

(b)The three and nine months ended September 30, 2018 include: $4.0 million and $26.4 million, respectively, of charges related to the second quarter 2018 discontinuation of uncoated free sheet and coated one-side grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to a high-performance 100% virgin kraft linerboard machine. $1.3 million and $1.8 million, respectively, of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility. $0.5 million of costs for the property damage insurance deductible for a weather-related incident at one of the corrugated products facilities. 4.$0.1 million of charges related to the Sacramento Container acquisition and integration.

[4]

(c)The three and nine months ended September 30, 2017 include: $0.9 million and $1.9 million, respectively, of charges consisting of closure costs related to corrugated products facilities, a paper administration facility, and a lump sum settlement of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities. $0.5 million and $0.8 million, respectively, of charges related to the Sacramento Container Corporation acquisition and integration costs related to other recent acquisitions. $25.3 million of charges related to the second quarter 2018 discontinuation of uncoated free sheet and coated one-side grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to a high-performance 100% virgin kraft linerboard machine.

[5]

(d)The nine months ended September 30, 2017 include: 1.$5.0 million of costs for the property damage and business interruption insurance deductible corresponding to the February 2017 explosion at our DeRidder, Louisiana mill. 2.$2.3 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.