Segment Information

6 Months Ended

Jun. 30, 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 June 30, 2015	Trade		Inter- segment			Total
Packaging	$	1,140.9	$	1.3		$	1,142.2		$	194.6		(a)
Paper	281.1		—			281.1			23.4
Corporate and Other	32.3		34.1			66.4			(20.4		)	(b)
Intersegment eliminations	—		(35.4		)	(35.4		)	—
	$	1,454.3	$	—		$	1,454.3		197.6
Interest expense, net									(22.2		)
Income before taxes									$	175.4

	Sales, net								Operating Income (Loss)
Three Months Ended June 30, 2014	Trade		Inter- segment			Total
Packaging	$	1,144.0	$	1.2		$	1,145.2		$	166.4		(a)
Paper	295.2		—			295.2			33.6
Corporate and Other	29.2		38.1			67.3			(19.8		)	(b)
Intersegment eliminations	—		(39.3		)	(39.3		)	—
	$	1,468.4	$	—		$	1,468.4		180.2
Interest expense, net									(21.4		)
Income before taxes									$	158.8

	Sales, net								Operating Income (Loss)
Six Months Ended June 30, 2015	Trade		Inter- segment			Total
Packaging	$	2,238.8	$	2.7		$	2,241.5		$	335.7		(a)
Paper	578.4		—			578.4			59.0
Corporate and Other	62.8		64.6			127.4			(40.0		)	(b)
Intersegment eliminations	—		(67.3		)	(67.3		)	—
	$	2,880.0	$	—		$	2,880.0		354.7
Interest expense, net									(41.4		)
Income before taxes									$	313.3

	Sales, net								Operating Income (Loss)
Six Months Ended June 30, 2014	Trade		Inter- segment			Total
Packaging	$	2,239.6	$	3.0		$	2,242.6		$	337.1		(a)
Paper	604.5		—			604.5			61.3
Corporate and Other	55.6		75.8			131.4			(57.2		)	(b)
Intersegment eliminations	—		(78.8		)	(78.8		)	—
	$	2,899.7	$	—		$	2,899.7		341.2
Interest expense, net									(42.2		)
Income before taxes									$	299.0

___________

(a) The three months ended June 30, 2015 and 2014, include $1.0 million of income and $17.8 million of expense, respectively, related to restructuring activities at our mill in DeRidder, Louisiana, while the six months ended June 30, 2015 and 2014, include net charges of $9.3 million and $21.8 million, respectively. Restructuring activities at DeRidder include costs related to the conversion of the No. 3 newsprint machine to containerboard, our exit from the newsprint business, and other improvements. The restructuring charges primarily related to accelerated depreciation and were mostly recorded in "Cost of sales". We completed the restructuring activities in first quarter 2015, but we received $1.0 million of insurance proceeds related to the restructuring during the three months ended June 30, 2015, which we recorded in "Other expense, net".

The three months ended June 30, 2015 and 2014, includes $1.7 million and $4.4 million, respectively, of Boise acquisition integration-related and other costs, and the six months ended June 30, 2015 and 2014, includes $2.6 million and $4.4 million, respectively. These costs primarily relate to professional fees, severance, retention, relocation, travel, and other integration-related costs, and are mostly recorded in "Other expense, net".

(b) The three months ended June 30, 2015 and 2014, includes $2.0 million and $1.5 million, respectively, of Boise acquisition integration-related and other costs, mostly recorded in "Other expense, net" and the six months ended June 30, 2015 and 2014, include $4.6 million, and $5.0 million, respectively.

The six months ended June 30, 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".