Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

18.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.

Packaging. We manufacture and sell a wide variety of containerboard and corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays with strong visual appeal that help to merchandise the packaged product in retail locations. In addition, we are a large producer of packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.

Paper. We manufacture and sell a range of communication-based papers. Our papers can be manufactured as either commodity papers or specialty papers with specialized or custom features, such as colors, coatings, high brightness, or recycled content.

Corporate and Other. Our Corporate and Other segment includes corporate support staff services and related assets and liabilities, and foreign exchange gains and losses. This segment also includes transportation assets, such as rail cars and trucks, which we use to transport our products from some of our manufacturing sites and assets related to LTP. See Note 17, Transactions with Related Parties, for more information related to LTP. Sales in this segment relate primarily to LTP and our rail and truck business. We provide transportation services not only to our own facilities but also, on a limited basis, to third parties when geographic proximity and logistics are favorable. Rail cars and trucks are generally leased.

Each segments' profits and losses are measured on operating profits before interest expense, net and other and income taxes. For many of these allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

Segment sales to external customers by product line were as follows (dollars in millions):

	Year Ended December 31,
	2023		2022		2021
Packaging	$	7,135.6	$	7,780.7	$	7,052.6
Paper		595.4		622.1		599.7
Corporate and Other		71.4		75.2		78.0
	$	7,802.4	$	8,478.0	$	7,730.3

Sales to foreign unaffiliated customers during the years ended December 31, 2023, 2022, and 2021 were $402.6 million, $512.9 million, and $497.8 million, respectively. At both December 31, 2023 and 2022, we did not have any significant long-lived assets held by foreign operations.

An analysis of operations by reportable segment is as follows (dollars in millions):

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2023	Trade		Inter- segment			Total			Income (Loss)				Amortization, and Depletion		Capital Expenditures (i)		Assets
Packaging	$	7,116.7	$	18.9		$	7,135.6		$	1,074.3		(a)	$	472.5	$	426.8	$	6,903.7
Paper		595.4		—			595.4			118.9		(b)		29.6		9.7		384.4
Corporate and Other		90.3		157.6			247.9			(118.1	)			15.6		33.2		1,393.0
Intersegment eliminations		—		(176.5	)		(176.5	)		—				—		—		—
	$	7,802.4	$	—		$	7,802.4			1,075.1			$	517.7	$	469.7	$	8,681.1
Non-operating pension expense										(7.7	)
Interest expense, net										(53.3	)
Income before taxes									$	1,014.1

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2022	Trade		Inter- segment			Total			Income (Loss)				Amortization, and Depletion		Capital Expenditures (i)		Assets
Packaging	$	7,760.7	$	20.0		$	7,780.7		$	1,423.7		(c)	$	420.2	$	753.5	$	6,986.5
Paper		622.1		—			622.1			103.0		(d)		26.1		14.1		403.1
Corporate and Other		95.2		148.2			243.4			(106.0	)			10.5		56.6		614.2
Intersegment eliminations		—		(168.2	)		(168.2	)		—				—		—		—
	$	8,478.0	$	—		$	8,478.0			1,420.7			$	456.8	$	824.2	$	8,003.8
Non-operating pension income										14.5
Interest expense, net										(70.4	)
Income before taxes									$	1,364.8

	Sales, net								Operating				Depreciation,
Year Ended December 31, 2021	Trade		Inter- segment			Total			Income (Loss)				Amortization, and Depletion		Capital Expenditures (i)		Assets
Packaging	$	7,036.2	$	16.4		$	7,052.6		$	1,306.0		(e)	$	381.0	$	562.5	$	6,603.3
Paper		599.6		0.1			599.7			39.1		(f)		27.4		30.1		398.9
Corporate and Other		94.5		135.9			230.4			(103.7	)	(g)		9.1		12.5		834.6
Intersegment eliminations		—		(152.4	)		(152.4	)		—				—		—		—
	$	7,730.3	$	—		$	7,730.3			1,241.4			$	417.5	$	605.1	$	7,836.8
Non-operating pension expense										19.7
Interest expense, net										(152.4	)	(h)
Income before taxes									$	1,108.7

(a)Includes $14.4 million of charges related to the closure of corrugated products facilities and design centers, partially offset by a gain on sale of a corrugated products facility.

(b)Includes $11.1 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(c)Includes the following:

•$5.3 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

•$0.7 million of charges consisting of closure costs partially offset by insurance proceeds received for a natural disaster at one of the corrugated products facilities, a gain on sale of assets related to a corrugated products facility, and a favorable lease buyout for a closed corrugated products facility.

•$1.0 million of income from a favorable inventory adjustment related to the December 2021 Advance Packaging Corporation acquisition, partially offset by acquisition and integration related costs.

(d)Includes $8.8 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(e)Includes the following:

•$4.3 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

•$2.8 million of income primarily consisting of an adjustment of the required asset retirement obligation related to the 2020 closure of the San Lorenzo, California facility, a gain on sale of corrugated products facilities, and insurance proceeds received for a natural disaster at one of the corrugated products facilities, partially offset by closure costs related to corrugated products facilities.

•$0.4 million of charges for acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition.

(f)Includes $9.3 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(g)Includes the following:

•$0.8 million of income related to a gain on sale of transportation assets.

•$0.5 million of charges for acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition.

•$0.4 million of charges related to the announced discontinuation of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(h)Includes $58.9 million of costs related to the Company's debt refinancing completed in October 2021, which included a redemption premium and the write-off of the remaining balance of unamortized debt issuance costs.

(i)Includes “Additions to property, plant, and equipment” and excludes cash used for “Acquisition of business, net of cash acquired” as reported on our Consolidated Statements of Cash Flows.