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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2020
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,

 

 

 

2020

 

 

2019

 

 

2018

 

Packaging

 

$

5,919.5

 

 

$

5,932.2

 

 

$

5,938.5

 

Paper

 

 

674.8

 

 

 

964.3

 

 

 

1,002.0

 

Corporate and Other

 

 

63.9

 

 

 

67.8

 

 

 

74.1

 

 

 

$

6,658.2

 

 

$

6,964.3

 

 

$

7,014.6

 
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, 2020

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (j)

 

 

Assets

 

Packaging

 

$

5,901.7

 

 

$

17.8

 

 

$

5,919.5

 

 

$

829.5

 

(a)

$

365.2

 

 

$

394.8

 

 

$

5,744.0

 

Paper

 

 

674.7

 

 

 

0.1

 

 

 

674.8

 

 

 

(20.0

)

(b)(c)

 

36.5

 

 

 

20.1

 

 

 

497.2

 

Corporate and Other

 

 

81.8

 

 

 

131.3

 

 

 

213.1

 

 

 

(85.6

)

 

 

8.3

 

 

 

6.3

 

 

 

1,192.0

 

Intersegment eliminations

 

 

—

 

 

 

(149.2

)

 

 

(149.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

6,658.2

 

 

$

—

 

 

$

6,658.2

 

 

 

723.9

 

 

$

410.0

 

 

$

421.2

 

 

$

7,433.2

 

Non-operating pension income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(93.5

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

632.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

 

Operating

 

 

Depreciation,

 

 

 

 

 

 

 

 

 

Year Ended

December 31, 2019

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (j)

 

 

Assets

 

Packaging

 

$

5,905.1

 

 

$

27.1

 

 

$

5,932.2

 

 

$

963.4

 

(d)

$

342.8

 

 

$

367.4

 

 

$

5,491.5

 

Paper

 

 

964.3

 

 

 

—

 

 

 

964.3

 

 

 

175.4

 

(e)

 

37.7

 

 

 

23.8

 

 

 

791.4

 

Corporate and Other

 

 

94.9

 

 

 

133.1

 

 

 

228.0

 

 

 

(85.1

)

 

 

7.0

 

 

 

8.3

 

 

 

952.9

 

Intersegment eliminations

 

 

—

 

 

 

(160.2

)

 

 

(160.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

6,964.3

 

 

$

—

 

 

$

6,964.3

 

 

 

1,053.7

 

 

$

387.5

 

 

$

399.5

 

 

$

7,235.8

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(128.8

)

(f)

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

917.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

 

Operating

 

 

Depreciation,

 

 

 

 

 

 

 

 

 

Year Ended

December 31, 2018

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (j)

 

 

Assets

 

Packaging

 

$

5,912.3

 

 

$

26.2

 

 

$

5,938.5

 

 

$

1,045.4

 

(g)

$

342.0

 

 

$

504.0

 

 

$

5,347.0

 

Paper

 

 

1,002.0

 

 

 

—

 

 

 

1,002.0

 

 

 

97.7

 

(h)

 

62.0

 

 

 

12.6

 

 

 

760.1

 

Corporate and Other

 

 

100.3

 

 

 

129.4

 

 

 

229.7

 

 

 

(75.4

)

(i)

 

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

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(95.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

970.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)     Includes the following:

 

o

$27.3 million 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 of 2020, partially offset by income related to the sale of a corrugated products facility during the second quarter of 2020.

 

o

$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.

 

o

$6.3 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.

(b)     Includes the following:

 

o

$0.8 million of restructuring costs for paper administrative functions.

 

o

$0.6 million 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.

(d)     Includes the following:

 

o

$3.0 million of charges for the disposal of fixed assets related to the containerboard mill conversion at our DeRidder, Louisiana mill.

 

o

$0.8 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

 

o

$0.3 million of charges consisting of closure costs related to corrugated products facilities, partially offset by income from the sale of a building related to a closed corrugated products facility.

(e)     Includes $0.2 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side           white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

(f)     Includes $38.7 million of charges related to the Company’s November 2019 debt refinancing, which included redemption premiums and the write-offs of remaining balances of treasury locks and unamortized debt issuance costs.

(g)     Includes the following:

 

o

$12.3 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

 

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.

(h)     Includes $17.7 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

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

(j)     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.