Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

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, and income taxes. For many of these 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								Operating Income (Loss)
Three Months Ended March 31, 2015	Trade		Inter- segment			Total
Packaging	$	1,097.9	$	1.4		$	1,099.3		$	141.1		(a)
Paper	297.3		—			297.3			35.6
Corporate and Other	30.5		30.5			61.0			(19.6		)	(b)
Intersegment eliminations	—		(31.9		)	(31.9		)	—
	$	1,425.7	$	—		$	1,425.7		157.1
Interest expense, net									(19.2		)	(d)
Income before taxes									$	137.9

	Sales, net								Operating Income (Loss)
Three Months Ended March 31, 2014	Trade		Inter- segment			Total
Packaging	$	1,095.6	$	1.8		$	1,097.4		$	170.7		(a)
Paper	309.3		—			309.3			27.7			(c)
Corporate and Other	26.4		37.7			64.1			(37.5		)	(b)
Intersegment eliminations	—		(39.5		)	(39.5		)	—
	$	1,431.3	$	—		$	1,431.3		160.9
Interest expense, net									(20.8		)	(d)
Income before taxes									$	140.1

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(a) The three months ended March 31, 2015 and 2014, include $10.3 million and $4.0 million, respectively, of restructuring charges at our mill in DeRidder, Louisiana. The restructuring charges primarily related to accelerated depreciation and were mostly recorded in "Cost of sales". The three months ended March 31, 2015, includes $0.9 million of Boise acquisition integration-related and other costs, mostly recorded in "Other expense, net".

(b) The three months ended March 31, 2015 and 2014, includes $2.6 million and $3.4 million, respectively, of Boise acquisition integration-related and other costs, mostly recorded in "Other expense, net". The three months ended March 31, 2014, includes $17.6 million of costs accrued for the settlement of the Kleen Products LLC v Packaging Corp. of America et al class action lawsuit. These costs are recorded in "Other expense, net".

(c) Includes $0.7 million of Boise acquisition integration-related costs, recorded in "Other expense, net".

(d) During the three months ended March 31, 2015 and 2014, we received an interest rebate on a portion of our bank debt, reducing our interest expense $4.1 million and $0.8 million, respectively.