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Segment Reporting | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. Effective January 1, 2024, the Company integrated its flexible packaging and thermoformed packaging businesses within the Consumer Packaging segment in order to streamline operations, enhance customer service and better position the business for accelerated growth. As a result, the Company changed its operating and reporting structure to reflect the way it now manages its operations, evaluates performance, and allocates resources. Accordingly, the Company’s consumer thermoformed businesses have moved from the All Other group of businesses to the Consumer Packaging segment. Prior year segment results presented below have been recast to conform with the current presentation. In addition, effective January 1, 2024, the Company began conducting its recycling operations, part of the Industrial Paper Packaging segment, as a procurement function. As a result, no recycling net sales are recorded and the margin from the operations reduces “Cost of sales.” The products produced and sold within the Consumer Packaging segment consist primarily of round and shaped rigid paper, steel and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and applications; and high-barrier flexible packaging. The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboard. The primary products produced with the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials. The following tables set forth net sales, intersegment sales, segment operating profit, and the reconciliation of segment operating profit to “Income before income taxes.” Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with ASC 280 - “Segment Reporting,” as prescribed by the FASB.
SEGMENT FINANCIAL INFORMATION
|  |  |  |  | Three Months Ended
|  |  |  |  |  |  | March 31, 2024 |  |  |  | April 2, 2023
Net sales: |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  |  |  |  | $ | 910,577 |  |  |  |  | $ | 958,008 |
Industrial Paper Packaging |  |  |  |  |  |  | 593,060 |  |  |  |  | 615,855 |
Total reportable segments |  |  |  |  |  |  | $ | 1,503,637 |  |  |  |  | $ | 1,573,863 |
All Other |  |  |  |  |  |  | 133,906 |  |  |  |  | 155,920 |
Net Sales |  |  |  |  |  |  | $ | 1,637,543 |  |  |  |  | $ | 1,729,783 |
Intersegment sales(1): |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  |  |  |  | $ | 3,545 |  |  |  |  | $ | 2,007 |
Industrial Paper Packaging |  |  |  |  |  |  | 28,417 |  |  |  |  | 38,720 |
Total reportable segments |  |  |  |  |  |  | $ | 31,962 |  |  |  |  | $ | 40,727 |
All Other |  |  |  |  |  |  | 1,791 |  |  |  |  | 2,789 |
Intersegment Sales |  |  |  |  |  |  | $ | 33,753 |  |  |  |  | $ | 43,516 |
Segment operating profit(2): |  |  |  |  |  |  |  |  |  |  |
Consumer Packaging |  |  |  |  |  |  | $ | 93,027 |  |  |  |  | $ | 96,494 |
Industrial Paper Packaging |  |  |  |  |  |  | 65,844 |  |  |  |  | 94,367 |
Segment operating profit |  |  |  |  |  |  | $ | 158,871 |  |  |  |  | $ | 190,861 |
(1) Intersegment sales are recorded at a market-related transfer price. (2) Segment operating profit viewed by the Company’s management to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in last-in, first-out inventory reserves; gains/losses from the sale of businesses or other assets; derivative gains/(losses); or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses.
RECONCILIATION OF SEGMENT OPERATING PROFIT TO INCOME BEFORE INCOME TAXES
|  |  |  | Three Months Ended
|  |  |  |  |  | March 31, 2024 |  |  |  | April 2, 2023
Segment operating profit |  |  |  |  |  | $ | 158,871 |  |  |  |  | $ | 190,861 |
All Other operating profit |  |  |  |  |  | 17,125 |  |  |  |  | 22,560 |
Corporate |  |  |  |  |  |  |  |  |  |
Restructuring/Asset impairment charges |  |  |  |  |  | (31,618) |  |  |  |  | (28,814) |
Amortization of acquisition intangibles |  |  |  |  |  | (22,939) |  |  |  |  | (21,164) |
Gains from divestiture of business and other assets |  |  |  |  |  | — |  |  |  |  | 72,010 |
Acquisition, integration and divestiture-related costs |  |  |  |  |  | (5,661) |  |  |  |  | (5,188) |
Changes in LIFO inventory reserves |  |  |  |  |  | (431) |  |  |  |  | 5,425 |
Derivative gains/(losses) |  |  |  |  |  | 286 |  |  |  |  | (6,085) |
Other operating (charges)/income, net(3) |  |  |  |  |  | (3,180) |  |  |  |  | 43 |
Operating profit |  |  |  |  |  | $ | 112,453 |  |  |  |  | $ | 229,648 |
Non-operating pension costs |  |  |  |  |  | (3,295) |  |  |  |  | (3,658) |
Interest expense |  |  |  |  |  | (31,220) |  |  |  |  | (34,232) |
Interest income |  |  |  |  |  | 3,558 |  |  |  |  | 1,562 |
Income before income taxes |  |  |  |  |  | $ | 81,496 |  |  |  |  | $ | 193,320 |
(3) Primarily consists of losses related to highly inflationary accounting in Turkey and consulting fees.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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