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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information |
1 8. | Segment Information
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. Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension expense, and income taxes. For certain allocated expenses, the related assets and liabilities remain in the Corporate and Other segment. Selected financial information by reportable segment was as follows (dollars in millions):
|  | Sales, net |  |  |  |  |  |
Three Months Ended June 30, 2020 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 1,401.8 |  |  | $ | 8.1 |  |  | $ | 1,409.9 |  |  | $ | 197.6 |  | (a)
Paper |  |  | 123.3 |  |  |  | — |  |  |  | 123.3 |  |  |  | (61.4 | ) | (a)(b)
Corporate and Other |  |  | 16.5 |  |  |  | 34.0 |  |  |  | 50.5 |  |  |  | (20.1 | ) |
Intersegment eliminations |  |  | — |  |  |  | (42.1 | ) |  |  | (42.1 | ) |  |  | — |  |
|  | $ | 1,541.6 |  |  | $ | — |  |  | $ | 1,541.6 |  |  |  | 116.1 |  |
Non-operating pension income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.6 |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (25.1 | ) |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 91.6 |  |
|  | Sales, net |  |  |  |  |  |
Three Months Ended June 30, 2019 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 1,497.8 |  |  | $ | 6.8 |  |  | $ | 1,504.6 |  |  | $ | 263.9 |  |
Paper |  |  | 237.8 |  |  |  | — |  |  |  | 237.8 |  |  |  | 38.8 |  |
Corporate and Other |  |  | 24.3 |  |  |  | 31.5 |  |  |  | 55.8 |  |  |  | (22.3 | ) |
Intersegment eliminations |  |  | — |  |  |  | (38.3 | ) |  |  | (38.3 | ) |  |  | — |  |
|  | $ | 1,759.9 |  |  | $ | — |  |  | $ | 1,759.9 |  |  |  | 280.4 |  |
Non-operating pension expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2.0 | ) |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22.4 | ) |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 256.0 |  |
|  | Sales, net |  |  |  |  |  |
Six Months Ended June 30, 2020 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 2,867.2 |  |  | $ | 10.2 |  |  | $ | 2,877.4 |  |  | $ | 397.5 |  | (a)
Paper |  |  | 340.7 |  |  |  | — |  |  |  | 340.7 |  |  |  | (29.0 | ) | (a)(b)
Corporate and Other |  |  | 42.4 |  |  |  | 68.3 |  |  |  | 110.7 |  |  |  | (43.3 | ) |
Intersegment eliminations |  |  | — |  |  |  | (78.5 | ) |  |  | (78.5 | ) |  |  | — |  |
|  | $ | 3,250.3 |  |  | $ | — |  |  | $ | 3,250.3 |  |  |  | 325.2 |  |
Non-operating pension income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1.1 |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (44.6 | ) |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 281.7 |  |
|  | Sales, net |  |  |  |  |  |
Six Months Ended June 30, 2019 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 2,968.6 |  |  | $ | 13.6 |  |  | $ | 2,982.2 |  |  | $ | 513.4 |  | (c)
Paper |  |  | 477.5 |  |  |  | — |  |  |  | 477.5 |  |  |  | 84.4 |  | (c)
Corporate and Other |  |  | 47.5 |  |  |  | 65.0 |  |  |  | 112.5 |  |  |  | (42.0 | ) |
Intersegment eliminations |  |  | — |  |  |  | (78.6 | ) |  |  | (78.6 | ) |  |  | — |  |
|  | $ | 3,493.6 |  |  | $ | — |  |  | $ | 3,493.6 |  |  |  | 555.8 |  |
Non-operating pension expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4.1 | ) |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (46.4 | ) |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 505.3 |  |
(a) | The three and six months ended June 30, 2020 include the following: 1. $20.4 million and $20.8 million, respectively, consisting of closure costs related to corrugated products facilities, substantially all of which relates to the previously announced closure of the San Lorenzo, California facility during the second quarter, partially offset by income related to the sale of a corrugated products facility. 2. $6.1 million and $6.9 million, respectively, of incremental, out-of-pocket costs related to COVID-19, including supplies, cleaning and sick pay.
(b) | During the second quarter of 2020, with the exacerbated deterioration in uncoated freesheet market conditions and the estimated impact on our Paper reporting unit arising from the COVID-19 pandemic, as well as projected future results of operations, we identified a triggering event indicating possible impairment of goodwill within our Paper reporting unit. The Company performed an interim quantitative impairment analysis as of May 31, 2020, and, based on the evaluation performed, we determined that goodwill was fully impaired for the Paper reporting unit and recognized a non-cash impairment charge of $55.2 million. See Note 9, Goodwill and Intangible Assets, for additional information.
(c) | The six months ended June 30, 2019 include $0.6 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 produce virgin kraft linerboard.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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