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Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Selected Financial Information by Reportable Segment

Selected financial information by reportable segment was as follows (dollars in millions):

	Sales, net
Three Months Ended September 30, 2020	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,497.6	$	3.5		$	1,501.1		$	222.4		(a)
Paper		178.1		—			178.1			7.3
Corporate and Other		18.0		30.8			48.8			(20.2	)
Intersegment eliminations		—		(34.3	)		(34.3	)		—
	$	1,693.7	$	—		$	1,693.7			209.5
Non-operating pension income										0.6
Interest expense, net										(24.4	)
Income before taxes									$	185.7

	Sales, net
Three Months Ended September 30, 2019	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,482.9	$	7.0		$	1,489.9		$	235.1		(d)
Paper		242.8		—			242.8			48.1
Corporate and Other		25.0		34.0			59.0			(20.4	)
Intersegment eliminations		—		(41.0	)		(41.0	)		—
	$	1,750.7	$	—		$	1,750.7			262.8
Non-operating pension expense										(1.9	)
Interest expense, net										(21.6	)
Income before taxes									$	239.3

	Sales, net
Nine Months Ended September 30, 2020	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	4,364.8	$	13.7		$	4,378.5		$	619.9		(a)(b)
Paper		518.7		—			518.7			(21.7	)	(b)(c)
Corporate and Other		60.5		99.2			159.7			(63.5	)
Intersegment eliminations		—		(112.9	)		(112.9	)		—
	$	4,944.0	$	—		$	4,944.0			534.7
Non-operating pension income										1.7
Interest expense, net										(69.1	)
Income before taxes									$	467.3

	Sales, net
Nine Months Ended September 30, 2019	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	4,451.5	$	20.6		$	4,472.1		$	748.6		(d)(e)
Paper		720.3		—			720.3			132.5		(e)
Corporate and Other		72.5		98.9			171.4			(62.5	)
Intersegment eliminations		—		(119.5	)		(119.5	)		—
	$	5,244.3	$	—		$	5,244.3			818.6
Non-operating pension expense										(6.0	)
Interest expense, net										(68.0	)
Income before taxes									$	744.6

(a)

The three and nine months ended September 30, 2020 include the following:

1. $3.3 million and $24.1 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 during the second quarter.

2. $10.0 million of charges related to the impact of Hurricane Laura at our DeRidder, Louisiana mill, including unabsorbed costs related to lost production, excess purchased containerboard and freight costs, repair expenses, rental and supplies costs, and other recovery expenses.

(b)

The nine months ended September 30, 2020 include $6.9 million of incremental, out-of-pocket costs related to COVID-19 that were incurred in the first half of 2020. Costs include materials, cleaning supplies, and sick pay as well as expenses for establishing processes and logistics for the new work requirements in all of our facilities for mitigating the spread of the virus within the Company. With the process now established, we anticipate any corresponding COVID-19 related expenses to be included in normalized costs through the span of the pandemic.

(c)

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.

(d)	The three months ended September 30, 2019 include $3.0 million of charges for the disposal of fixed assets related to the containerboard mill conversion at our DeRidder, Louisiana mill.

(e)	The nine months ended September 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.