We report 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.

During the second quarter of 2018, the Company discontinued the production of uncoated free sheet and coated one-side grades at the Wallula, Washington mill and converted the No. 3 machine to a virgin kraft linerboard machine. Subsequent to the date of conversion in May 2018, operating results for the Wallula mill are primarily included in the Packaging segment.

Packaging. We manufacture and sell a wide variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays with strong visual appeal that help to merchandise the packaged product in retail locations. In addition, we are a large producer of packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.

Paper. We manufacture and sell a range of white papers, including communication-based papers, and pressure sensitive papers. Our white papers can be manufactured as either commodity papers or specialty papers with specialized or custom features, such as colors, coatings, high brightness, or recycled content. Sales for market pulp decreased in 2016 as we ceased softwood market pulp operations at our Wallula, Washington mill with the permanent shutdown of the No.1 machine.

Corporate and Other. Our Corporate and Other segment includes corporate support staff services and related assets and liabilities, and foreign exchange gains and losses. This segment also includes transportation assets, such as rail cars and trucks, which we use to transport our products from some of our manufacturing sites and assets related to LTP. See Note 17, Transactions with Related Parties, for more information related to LTP. Sales in this segment relate primarily to LTP and our rail and truck business. We provide transportation services not only to our own facilities but also, on a limited basis, to third parties when geographic proximity and logistics are favorable. Rail cars and trucks are generally leased.

Each segments' profits and losses are measured on operating profits before interest expense, net and other and income taxes. For many of these allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

Segment sales to external customers by product line were as follows (dollars in millions):

Sales to foreign unaffiliated customers during the years ended December 31, 2018, 2017, and 2016 were $487.8 million, $390.3 million, and $289.5 million, respectively. At December 31, 2018 and 2017, we did not have any significant long-lived assets held by foreign operations.

An analysis of operations by reportable segment is as follows (dollars in millions):

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2018	Trade		Inter- segment			Total			Income (Loss) (a)				Amortization, and Depletion		Capital Expenditures (l)		Assets
Packaging	$	5,912.3	$	26.2		$	5,938.5		$	1,045.4		(b)	$	342.0	$	504.0	$	5,347.0
Paper		1,002.0		—			1,002.0			97.7		(c)		62.0		12.6		760.1
Corporate and Other		100.3		129.4			229.7			(75.4	)	(d)		6.9		34.8		462.6
Intersegment eliminations		—		(155.6	)		(155.6	)		—				—		—		—
	$	7,014.6	$	—		$	7,014.6			1,067.7			$	410.9	$	551.4	$	6,569.7
Interest expense, net and other										(97.2	)
Income before taxes									$	970.5

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2017	Trade		Inter- segment			Total			Income (Loss) (a)				Amortization, and Depletion		Capital Expenditures (l)		Assets
Packaging	$	5,288.6	$	23.7		$	5,312.3		$	950.3		(e)	$	317.5	$	305.1	$	4,933.6
Paper		1,051.8		—			1,051.8			54.0		(f)		67.6		22.6		945.2
Corporate and Other		104.5		124.7			229.2			(71.8	)	(g)		6.3		15.3		318.7
Intersegment eliminations		—		(148.4	)		(148.4	)		—				—		—		—
	$	6,444.9	$	—		$	6,444.9			932.5			$	391.4	$	343.0	$	6,197.5
Interest expense, net and other										(103.9	)	(h)
Income before taxes									$	828.6

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2016	Trade		Inter- segment			Total			Income (Loss) (a)				Amortization, and Depletion		Capital Expenditures (l)		Assets
Packaging	$	4,577.4	$	7.4		$	4,584.8		$	718.5		(i)	$	293.3	$	239.9	$	4,530.5
Paper		1,093.9		—			1,093.9			131.7		(j)		59.6		31.6		946.2
Corporate and Other		107.7		139.2			246.9			(66.9	)	(k)		5.1		2.8		300.3
Intersegment eliminations		—		(146.6	)		(146.6	)		—				—		—		—
	$	5,779.0	$	—		$	5,779.0			783.3			$	358.0	$	274.3	$	5,777.0
Interest expense, net and other										(94.8	)
Income before taxes									$	688.5

(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 2016 and as adjusted for the requirements per the new standard are as follows (dollars in millions):

Segment income (loss)	Year Ended December 31, 2017 As Reported			Non-Operating Pension Adjustment			Year Ended December 31, 2017 Adjusted
Packaging	$	943.7		$	6.6		$	950.3
Paper		61.5			(7.5	)		54.0
Corporate		(74.0	)		2.2			(71.8	)
Income from operations		931.2			1.3			932.5
Interest expense, net and other		(102.6	)		(1.3	)		(103.9	)
Income before taxes	$	828.6		$	—		$	828.6

Segment income (loss)	Year Ended December 31, 2016 As Reported			Non-Operating Pension Adjustment			Year Ended December 31, 2016 Adjusted
Packaging	$	711.1		$	7.4		$	718.5
Paper		138.1			(6.4	)		131.7
Corporate		(68.9	)		2.0			(66.9	)
Income from operations		780.3			3.0			783.3
Interest expense, net and other		(91.8	)		(3.0	)		(94.8	)
Income before taxes	$	688.5		$	—		$	688.5

(b)	Includes the following:

$12.3 million of charges related to the second quarter 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.

$1.6 million of charges consisting of closure costs related to corrugated products facilities.

$0.5 million of costs for the property damage insurance deductible for a weather-related incident at one of the corrugated products facilities.

$0.2 million of charges for acquisition and integration costs related to recent acquisitions.

(c)	Includes $17.7 million of charges related to the second quarter 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.

(d)	Includes $0.2 million of charges consisting of closure costs related to a corporate administration facility.

(e)	Includes the following:

$7.2 million of income, net, 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, and a lump sum settlement of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities.

$1.7 million of charges for acquisition and integration costs related to recent acquisitions.

$2.0 million gain related to the expiration of a repurchase option corresponding to timberland previously sold.

$1.6 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.

$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.

(f)

Includes $33.4 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 and $0.4 million of charges related to the closure costs of a paper administration facility.

(g)	Includes $1.0 million of charges related to the closure costs of a corporate administration facility and $0.7 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.

(h)	Includes $1.8 million of expense related to the write-off of deferred debt issuance costs in connection with the December 2017 debt refinancing.

(i)	Includes $10.2 million of closure costs related to corrugated product facilities and a lump sum settlement of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities and $4.2 million of acquisition-related costs for recent acquisitions.

(j)	Includes $2.7 million of costs related to ceased softwood market pulp operations at our Wallula, Washington mill and the permanent shut down of the No.1 machine and $1.7 million of closure costs related to a paper products facility.

(k)	Includes $0.3 million of acquisition-related costs related to recent acquisitions.

(l)	Includes “Additions to property, plant, and equipment” and excludes cash used for “Acquisitions of businesses, net of cash acquired” as reported on our Consolidated Statements of Cash Flows.