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Segment Information
 9 Months Ended
Sep. 30, 2023
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.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension (expense) 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, 2023

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

1,755.2

 

 

$

4.6

 

 

$

1,759.8

 

 

$

256.8

 

 (a)

Paper

 

 

157.9

 

 

 

—

 

 

 

157.9

 

 

 

27.6

 

 (a)

Corporate and Other

 

 

22.9

 

 

 

40.6

 

 

 

63.5

 

 

 

(25.8

)

 

Intersegment eliminations

 

 

—

 

 

 

(45.2

)

 

 

(45.2

)

 

 

—

 

 

 

 

$

1,936.0

 

 

$

—

 

 

$

1,936.0

 

 

 

258.6

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

(1.8

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(12.3

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

244.5

 

 

 

 

 

Sales, net

 

 

 

 

 

Three Months Ended September 30, 2022

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

1,935.1

 

 

$

5.1

 

 

$

1,940.2

 

 

$

359.2

 

 (b)

Paper

 

 

165.3

 

 

 

—

 

 

 

165.3

 

 

 

26.1

 

 (b)

Corporate and Other

 

 

25.5

 

 

 

37.8

 

 

 

63.3

 

 

 

(25.0

)

 

Intersegment eliminations

 

 

—

 

 

 

(42.9

)

 

 

(42.9

)

 

 

—

 

 

 

 

$

2,125.9

 

 

$

—

 

 

$

2,125.9

 

 

 

360.3

 

 

Non-operating pension income

 

 

 

 

 

 

 

 

 

 

 

3.6

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(16.5

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

347.4

 

 

 

 

 

Sales, net

 

 

 

 

 

Nine Months Ended September 30, 2023

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

5,344.3

 

 

$

14.4

 

 

$

5,358.7

 

 

$

810.5

 

 (a)

Paper

 

 

451.6

 

 

 

—

 

 

 

451.6

 

 

 

90.8

 

 (a)

Corporate and Other

 

 

68.6

 

 

 

116.5

 

 

 

185.1

 

 

 

(87.7

)

 

Intersegment eliminations

 

 

—

 

 

 

(130.9

)

 

 

(130.9

)

 

 

—

 

 

 

 

$

5,864.5

 

 

$

—

 

 

$

5,864.5

 

 

 

813.6

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

(5.8

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(42.2

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

765.6

 

 

 

 

 

Sales, net

 

 

 

 

 

Nine Months Ended September 30, 2022

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

5,956.8

 

 

$

14.8

 

 

$

5,971.6

 

 

$

1,141.3

 

 (b)

Paper

 

 

468.6

 

 

 

—

 

 

 

468.6

 

 

 

71.2

 

 (b)

Corporate and Other

 

 

74.2

 

 

 

110.6

 

 

 

184.8

 

 

 

(79.8

)

 

Intersegment eliminations

 

 

—

 

 

 

(125.4

)

 

 

(125.4

)

 

 

—

 

 

 

 

$

6,499.6

 

 

$

—

 

 

$

6,499.6

 

 

 

1,132.7

 

 

Non-operating pension income

 

 

 

 

 

 

 

 

 

 

 

10.9

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(55.3

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

1,088.3

 

 

 

(a)

The three and nine months ended September 30, 2023 include the following:

 

1.

$2.6 million and $8.2 million, respectively, of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

 

2.

$0.1 million of income and $13.5 million of charges, respectively, related to the closure of corrugated products facilities and design centers. Included therein are closure costs as well as the gain on sale of a corrugated products facility.

 

 

 

(b)

The three and nine months ended September 30, 2022 include the following:

 

1.

$3.9 million and $9.4 million, respectively, of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

 

2.

$0.2 million of charges and $0.2 million of income, respectively, consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition, partially offset by a gain on sale of assets related to a corrugated products facility. For the nine months ended September 30, 2022, these costs were offset by insurance proceeds received for a natural disaster at one of the corrugated products facilities and a favorable lease buyout for a closed corrugated products facility.