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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Information | 18. 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. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of uncoated freesheet paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. Before October 2020, operating results for the Jackson mill were included in the Paper segment. Beginning in October 2020, operating results for the Jackson mill are included in both the Packaging and Paper segments. Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension income, 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 September 30, 2021 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 1,825.0 |  |  | $ | 4.4 |  |  | $ | 1,829.4 |  |  | $ | 365.2 |  | (a)
Paper |  |  | 150.3 |  |  |  | — |  |  |  | 150.3 |  |  |  | 11.0 |  | (a)
Corporate and Other |  |  | 24.8 |  |  |  | 36.5 |  |  |  | 61.3 |  |  |  | (23.4 | ) | (a)
Intersegment eliminations |  |  | — |  |  |  | (40.9 | ) |  |  | (40.9 | ) |  |  | — |  |
|  | $ | 2,000.1 |  |  | $ | — |  |  | $ | 2,000.1 |  |  |  | 352.8 |  |
Non-operating pension income |  |  |  |  |  |  |  |  |  |  |  | 5.0 |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | (23.9 | ) | (a)
Income before taxes |  |  |  |  |  |  |  |  |  |  | $ | 333.9 |  |
|  | 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 |  | (b)
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 |  |  |  |  |
Nine Months Ended September 30, 2021 |  | Trade |  |  | Intersegment |  |  | Total |  |  | Operating Income (Loss) |  |
Packaging |  | $ | 5,159.3 |  |  | $ | 12.1 |  |  | $ | 5,171.4 |  |  | $ | 940.3 |  | (a)
Paper |  |  | 457.0 |  |  |  | 0.1 |  |  |  | 457.1 |  |  |  | 22.3 |  | (a)
Corporate and Other |  |  | 70.8 |  |  |  | 101.0 |  |  |  | 171.8 |  |  |  | (76.9 | ) | (a)
Intersegment eliminations |  |  | — |  |  |  | (113.2 | ) |  |  | (113.2 | ) |  |  | — |  |
|  | $ | 5,687.1 |  |  | $ | — |  |  | $ | 5,687.1 |  |  |  | 885.7 |  |
Non-operating pension income |  |  |  |  |  |  |  |  |  |  |  | 14.8 |  |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  | (72.2 | ) | (a)
Income before taxes |  |  |  |  |  |  |  |  |  |  | $ | 828.3 |  |
|  | 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 |  | (b)(c)
Paper |  |  | 518.7 |  |  |  | — |  |  |  | 518.7 |  |  |  | (21.7 | ) | (c)(d)
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 |  |
(a) | The three and nine months ended September 30, 2021 include the following:
| 1. | $4.5 million and $9.4 million, respectively, of charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
| 2. | $2.7 million and $0.1 million, respectively, of charges consisting of closure costs related to corrugated products facilities. For the nine months ended September 30, 2021, these costs are partially offset by income primarily consisting of an adjustment of the required asset retirement obligation related to the 2020 closure of the San Lorenzo, California facility, a gain on sale of transportation assets, and insurance proceeds received for a natural disaster at one of the corrugated products facilities.
| 3. | $0.5 million of costs related to the Company's September 2021 debt refinancing, which included the issuance of the new 3.05% Senior Notes due 2051.
(b) | The three and nine months ended September 30, 2020 include the following:
| 1. | $3.3 million and $24.1 million of charges, respectively, consisting of closure costs related to corrugated products facilities, substantially all of which relates to the 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.
| 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.
(c) | The nine months ended September 20, 2020 include $6.9 million of incremental, out-of-pocket costs related to COVID-19, including supplies, cleaning and sick pay. Beginning in July 2020, all corresponding COVID-19 related expenses were included in normalized costs.
(d) | 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.

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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