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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Sales to External Customers by Product Line

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

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Packaging sales

 

 

 

 

 

 

 

 

 

 

 

 

Packaging sales

 

$

5,938.5

 

 

$

5,312.3

 

 

$

4,584.8

 

Paper

 

 

 

 

 

 

 

 

 

 

 

 

White papers

 

 

1,002.0

 

 

 

1,051.8

 

 

 

1,065.8

 

Market pulp

 

 

—

 

 

 

—

 

 

 

28.1

 

 

 

 

1,002.0

 

 

 

1,051.8

 

 

 

1,093.9

 

Corporate and Other

 

 

74.1

 

 

 

80.8

 

 

 

100.3

 

 

 

$

7,014.6

 

 

$

6,444.9

 

 

$

5,779.0

 
Analysis of Operations by Reportable Segment

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:

 

o

$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.

 

o

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

 

o

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

 

o

$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:

 

o

$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.

 

o

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

 

o

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

 

o

$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.

 

o

$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.