Segment Information

3 Months Ended

Dec. 31, 2019

Note 7.

Segment Information

We report our financial results of operations in the following three reportable segments: Corrugated Packaging, which consists of our containerboard mills, corrugated packaging and distribution operations, as well as our merchandising displays and recycling procurement operations; Consumer Packaging, which consists of our consumer mills, food and beverage and partition operations; and Land and Development, which previously sold real estate primarily in the Charleston, SC region. Certain income and expenses are not allocated to our segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect these amounts. Items not allocated are reported as non-allocated expenses or in other line items in the table below after segment income.

The following tables show selected operating data for our segments (in millions):

	Three Months Ended
	December 31,
	2019			2018
Net sales (aggregate):
Corrugated Packaging	$	2,909.5		$	2,733.8
Consumer Packaging		1,536.9			1,618.8
Land and Development		18.9			13.9
Total	$	4,465.3		$	4,366.5
Less net sales (intersegment):
Corrugated Packaging	$	18.3		$	18.0
Consumer Packaging		23.3			21.1
Total	$	41.6		$	39.1
Net sales (unaffiliated customers):
Corrugated Packaging	$	2,891.2		$	2,715.8
Consumer Packaging		1,513.6			1,597.7
Land and Development		18.9			13.9
Total	$	4,423.7		$	4,327.4
Segment income:
Corrugated Packaging	$	283.4		$	246.8
Consumer Packaging		46.2			76.9
Land and Development		1.4			0.7
Segment income		331.0			324.4
Gain on sale of certain closed facilities		0.5			50.5
Restructuring and other costs		(30.1	)		(54.4	)
Non-allocated expenses		(18.2	)		(19.0	)
Interest expense, net		(93.5	)		(94.4	)
Loss on extinguishment of debt		—			(1.9	)
Other expense, net		(3.7	)		(2.7	)
Income before income taxes	$	186.0		$	202.5

	Three Months Ended
	December 31,
	2019		2018
Depreciation and amortization:
Corrugated Packaging	$	244.3	$	218.5
Consumer Packaging		135.3		138.6
Corporate		1.6		2.0
Total	$	381.2	$	359.1

In October 2018, our containerboard and pulp mill located in Panama City, FL sustained extensive damage from Hurricane Michael. In the three months ended December 31, 2019, we received the remaining Hurricane Michael-related insurance proceeds of $32.3 million, of which $2.8 million was deferred and $29.5 million was recorded as a reduction of cost of goods sold in our Corrugated Packaging segment. The insurance proceeds consisted of $11.7 million of business interruption recoveries and $20.6 million for direct costs and property damage. Our condensed consolidated statement of cash flows for the three months ended December 31, 2019 included $30.9 million in net cash provided by operating activities and $1.4 million in net cash used for investing activities. In the three months ended December 31, 2018, we received Hurricane Michael-related insurance proceeds of $20.0 million, for the recovery of direct costs, that were recorded as a reduction of cost of goods sold in our Corrugated Packaging segment and reflected in net cash provided by operating activities in our condensed consolidated statement of cash flows.