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Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended
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Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract] |
Summary of Quarterly Financial Data |
2018: |  | First (b) |  |  | Second (c) |  |  | Third (d) |  |  | Fourth (e) |  |  | Total |
Net sales |  | $ | 1,690.6 |  |  | $ | 1,767.5 |  |  | $ | 1,809.9 |  |  | $ | 1,746.6 |  |  | $ | 7,014.6 |
Gross profit |  |  | 356.1 |  |  |  | 420.6 |  |  |  | 443.2 |  |  |  | 425.4 |  |  |  | 1,645.3 |
Income from operations |  |  | 212.9 |  |  |  | 269.6 |  |  |  | 298.5 |  |  |  | 286.7 |  |  |  | 1,067.7 |
Net income |  |  | 140.1 |  |  |  | 186.6 |  |  |  | 206.7 |  |  |  | 204.6 |  |  |  | 738.0 |
Basic earnings per share |  |  | 1.48 |  |  |  | 1.98 |  |  |  | 2.19 |  |  |  | 2.17 |  |  |  | 7.82 |
Diluted earnings per share |  |  | 1.48 |  |  |  | 1.97 |  |  |  | 2.18 |  |  |  | 2.16 |  |  |  | 7.80 |
Stock price - high |  |  | 131.13 |  |  |  | 124.70 |  |  |  | 118.88 |  |  |  | 110.62 |  |  |  | 131.13 |
Stock price - low |  |  | 109.04 |  |  |  | 107.96 |  |  |  | 107.39 |  |  |  | 77.90 |  |  |  | 77.90 |
2017: |  | First (f) |  |  | Second (g) |  |  | Third (h) |  |  | Fourth (i) |  |  | Total |
Net sales |  | $ | 1,536.5 |  |  | $ | 1,584.0 |  |  | $ | 1,640.1 |  |  | $ | 1,684.3 |  |  | $ | 6,444.9 |
Gross profit (a) |  |  | 338.2 |  |  |  | 364.3 |  |  |  | 397.0 |  |  |  | 371.4 |  |  |  | 1,470.8 |
Income from operations (a) |  |  | 203.4 |  |  |  | 234.1 |  |  |  | 242.6 |  |  |  | 252.3 |  |  |  | 932.5 |
Net income |  |  | 117.4 |  |  |  | 143.2 |  |  |  | 139.1 |  |  |  | 268.9 |  |  |  | 668.6 |
Basic earnings per share |  |  | 1.25 |  |  |  | 1.52 |  |  |  | 1.47 |  |  |  | 2.85 |  |  |  | 7.09 |
Diluted earnings per share |  |  | 1.24 |  |  |  | 1.52 |  |  |  | 1.47 |  |  |  | 2.84 |  |  |  | 7.07 |
Stock price - high |  |  | 96.87 |  |  |  | 113.52 |  |  |  | 119.43 |  |  |  | 121.38 |  |  |  | 121.38 |
Stock price - low |  |  | 84.01 |  |  |  | 89.73 |  |  |  | 105.81 |  |  |  | 108.49 |  |  |  | 84.01 |
Note: The sum of the quarters may not equal the total of the respective year's earnings per share on either a basic or diluted basis due to changes in the weighted average shares outstanding throughout the year.
(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, Summary of Significant Accounting Policies, 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):
First quarter, 2017 |  | As Reported |  |  | Non-Operating Pension Adjustment |  |  | Adjusted |
Gross profit |  | $ | 338.5 |  |  | $ | (0.3 | ) |  | $ | 338.2 |
Income from operations |  |  | 203.1 |  |  |  | 0.3 |  |  |  | 203.4 |
Second quarter, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Gross profit |  | $ | 364.6 |  |  | $ | (0.3 | ) |  | $ | 364.3 |
Income from operations |  |  | 233.8 |  |  |  | 0.3 |  |  |  | 234.1 |
Third quarter, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Gross profit |  | $ | 397.3 |  |  | $ | (0.3 | ) |  | $ | 397.0 |
Income from operations |  |  | 242.3 |  |  |  | 0.3 |  |  |  | 242.6 |
Fourth quarter, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Gross profit |  | $ | 371.7 |  |  | $ | (0.3 | ) |  | $ | 371.4 |
Income from operations |  |  | 252.0 |  |  |  | 0.3 |  |  |  | 252.3 |
Full year 2017 |  |  |  |  |  |  |  |  |  |  |  |
Gross profit |  | $ | 1,472.2 |  |  | $ | (1.4 | ) |  | $ | 1,470.8 |
Income from operations |  |  | 931.2 |  |  |  | 1.3 |  |  |  | 932.5 |
(b) | Includes $0.3 million of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility ($0.2 million after-tax or $0.0 per diluted share) and $8.8 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 ($6.6 million after-tax or $0.07 per diluted share).
(c) | Includes $0.2 million of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility ($0.2 million after-tax and $0.0 per diluted share) and $13.6 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 ($10.2 million after-tax or $0.11 per diluted share).
(d) | Includes $4.0 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 ($2.9 million after-tax or $0.04 per diluted share) and $1.3 million of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility ($1.0 million after-tax or $0.01 per diluted share). Also includes $0.5 million of costs for the property damage insurance deductible for a weather-related incident at one of the corrugated products facilities ($0.4 million after-tax or $0.0 per diluted share) and $0.1 million of charges for acquisition and integration costs related to recent acquisitions ($0.01 million after-tax or $0.0 per diluted share).
(e) | Includes $3.6 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 ($2.7 million after-tax or $0.03 per diluted share) and $0.1 million of charges for acquisition and integration costs related to recent acquisitions ($0.1 million after-tax or $0.0 per diluted share). Also includes $2.0 million of income tax benefit for the re-measurement of our net deferred tax liability to our 2017 measurement period adjustments in accordance with SEC Staff Accounting Bulletin No. 118 (SAB 118), Income Tax Accounting Implications of the Tax Cuts and Jobs Act ($0.02 per diluted share).
(f) | Includes $0.6 million of charges related to the closure of corrugated products facilities and lump sum settlement of a multiemployer pension plan withdrawal liability for one of corrugated products facilities ($0.4 million after-tax or $0.01 per diluted share) and $0.2 million of charges for integration costs related to recent acquisitions ($0.1 million after-tax or $0.0 per diluted share). Also includes $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 ($3.1 million after-tax or $0.03 per diluted share) and $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 ($1.4 million after-tax or $0.01 per diluted share).
(g) | Includes $0.3 million of charges related to the closure of corrugated products facilities ($0.3 million after-tax or $0.0 per diluted share) and $0.2 million of charges for integration costs related to recent acquisitions ($0.1 after-tax or $0.0 per diluted share).
(h) | Includes $0.9 million of charges related to the closure of 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 ($0.6 million after-tax or $0.01 per diluted share) and $0.5 million of charges for acquisition and integration costs related to recent acquisitions ($0.3 million after-tax or $0.0 per diluted share). Also includes $25.3 million of charges related to the announced 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 ($15.5 million after-tax or $0.16 per diluted share) and $3.3 million of tax expense for the change in value of deferred taxes as a result of an internal legal entity consolidation that will simplify future operating activities ($0.04 per diluted share).
(i) | Includes $7.6 million of income primarily related to the sale of land corresponding to the closure of a corrugated products facility, partially offset by closure costs related to corrugated products facilities, a paper administration facility, and a corporate administration facility ($4.7 million after-tax or $0.05 per diluted share) and $0.9 million of charges for acquisition and integration costs related to recent acquisitions ($0.5 million after-tax or $0.01 per diluted share), and $8.0 million of charges related to the announced 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 ($4.6 million after-tax or $0.05 per diluted share). Also includes $1.8 million of expense related to the write-off of deferred debt issuance costs in connection with the December 2017 debt refinancing ($1.1 million after-tax or $0.01 per diluted share), $2.0 million gain related to the expiration of a repurchase option corresponding to timberland previously sold ($1.2 million after-tax or $0.01 per diluted share), and $122.1 million of estimated income tax benefit related to the enactment in December 2017 of the Tax Cuts and Jobs Act (H.R.1) primarily for the re-measurement of our net deferred tax liability as a result of the reduction in the U.S. corporate income tax rate ($1.29 per diluted share).

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