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Segment Information
 9 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information

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

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net sales (aggregate):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

2,728.8

 

 

$

3,072.8

 

 

$

8,520.8

 

 

$

8,797.3

 

Consumer Packaging

 

 

1,552.6

 

 

 

1,650.1

 

 

 

4,705.8

 

 

 

4,937.2

 

Land and Development

 

 

—

 

 

 

8.6

 

 

 

18.9

 

 

 

23.3

 

Total

 

$

4,281.4

 

 

$

4,731.5

 

 

$

13,245.5

 

 

$

13,757.8

 

Less net sales (intersegment):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

15.3

 

 

$

19.7

 

 

$

54.3

 

 

$

57.1

 

Consumer Packaging

 

 

29.8

 

 

 

21.8

 

 

 

83.9

 

 

 

63.3

 

Total

 

$

45.1

 

 

$

41.5

 

 

$

138.2

 

 

$

120.4

 

Net sales (unaffiliated customers):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

2,713.5

 

 

$

3,053.1

 

 

$

8,466.5

 

 

$

8,740.2

 

Consumer Packaging

 

 

1,522.8

 

 

 

1,628.3

 

 

 

4,621.9

 

 

 

4,873.9

 

Land and Development

 

 

—

 

 

 

8.6

 

 

 

18.9

 

 

 

23.3

 

Total

 

$

4,236.3

 

 

$

4,690.0

 

 

$

13,107.3

 

 

$

13,637.4

 

Segment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

227.9

 

 

$

392.7

 

 

$

755.8

 

 

$

949.8

 

Consumer Packaging

 

 

95.3

 

 

 

91.0

 

 

 

232.3

 

 

 

253.1

 

Land and Development

 

 

—

 

 

 

1.6

 

 

 

1.4

 

 

 

2.8

 

Segment income

 

 

323.2

 

 

 

485.3

 

 

 

989.5

 

 

 

1,205.7

 

(Loss) gain on sale of certain closed facilities

 

 

—

 

 

 

(2.7

)

 

 

5.5

 

 

 

47.8

 

Multiemployer pension withdrawal income

 

 

2.0

 

 

 

1.7

 

 

 

1.1

 

 

 

1.7

 

Land and Development impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13.0

)

Restructuring and other costs

 

 

(9.7

)

 

 

(17.9

)

 

 

(56.2

)

 

 

(107.1

)

Non-allocated expenses

 

 

(18.3

)

 

 

(24.4

)

 

 

(54.1

)

 

 

(67.8

)

Interest expense, net

 

 

(92.4

)

 

 

(111.1

)

 

 

(283.2

)

 

 

(317.3

)

Loss on extinguishment of debt

 

 

(0.6

)

 

 

(3.2

)

 

 

(1.1

)

 

 

(4.7

)

Other (expense) income, net

 

 

(5.0

)

 

 

3.7

 

 

 

(9.6

)

 

 

(2.3

)

Income before income taxes

 

$

199.2

 

 

$

331.4

 

 

$

591.9

 

 

$

743.0

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corrugated Packaging

 

$

233.1

 

 

$

241.4

 

 

$

717.0

 

 

$

702.6

 

Consumer Packaging

 

 

131.2

 

 

 

140.7

 

 

 

399.7

 

 

 

418.5

 

Corporate

 

 

1.4

 

 

 

3.2

 

 

 

4.7

 

 

 

7.0

 

Total

 

$

365.7

 

 

$

385.3

 

 

$

1,121.4

 

 

$

1,128.1

 

 

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 $29.5 million was recorded as a reduction of cost of goods sold in our Corrugated Packaging segment. The remaining $2.8 million was deferred and recorded as a reduction of cost of goods sold in the three months ended March 31, 2020. 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 nine months ended June 30, 2020 included $30.9 million in net cash provided by operating activities and $1.4 million of cash proceeds included in net cash used for investing activities related to Hurricane Michael and a $1.0 million receipt of proceeds recorded as a reduction of cost of goods sold in the third quarter of fiscal 2020 for an unrelated matter in the Consumer Packaging segment.

 

In the three and nine months ended June 30, 2019, we received Hurricane Michael-related insurance proceeds of $30.0 million and $110.0 million, respectively, that were recorded as a reduction of cost of goods sold in our Corrugated Packaging segment. The insurance proceeds for the nine months ended June 30, 2019 consisted of $45.0 million of business interruption recoveries and $65.0 million for direct costs and property damage. Our condensed consolidated statement of cash flows for the nine months ended June 30, 2019 included $93.5 million in net cash provided by operating activities and $16.5 million of cash proceeds included in net cash used for investing activities.