Segment Information

6 Months Ended

Jun. 30, 2024

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.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension income (expense), and income taxes. For certain 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
Three Months Ended June 30, 2024	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,902.0	$	6.3		$	1,908.3		$	279.8		(a)
Paper		150.1		—			150.1			26.7		(a)
Corporate and Other		23.2		38.8			62.0			(30.5	)
Intersegment eliminations		—		(45.1	)		(45.1	)		—
	$	2,075.3	$	—		$	2,075.3			276.0
Non-operating pension income										1.1
Interest expense, net										(10.4	)
Income before taxes									$	266.7

	Sales, net
Three Months Ended June 30, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,785.7	$	4.6		$	1,790.3		$	285.8		(b)
Paper		142.8		—			142.8			29.1		(b)
Corporate and Other		23.6		37.4			61.0			(30.5	)
Intersegment eliminations		—		(42.0	)		(42.0	)		—
	$	1,952.1	$	—		$	1,952.1			284.4
Non-operating pension expense										(2.0	)
Interest expense, net										(14.6	)
Income before taxes									$	267.8

	Sales, net
Six Months Ended June 30, 2024	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	3,695.4	$	11.1		$	3,706.5		$	483.6		(a)
Paper		313.9		—			313.9			56.4		(a)
Corporate and Other		45.5		78.2			123.7			(68.0	)
Intersegment eliminations		—		(89.3	)		(89.3	)		—
	$	4,054.8	$	—		$	4,054.8			472.0
Non-operating pension income										2.2
Interest expense, net										(19.9	)
Income before taxes									$	454.3

	Sales, net
Six Months Ended June 30, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	3,589.1	$	9.8		$	3,598.9		$	553.7		(b)
Paper		293.7		—			293.7			63.2		(b)
Corporate and Other		45.6		76.0			121.6			(61.9	)
Intersegment eliminations		—		(85.8	)		(85.8	)		—
	$	3,928.4	$	—		$	3,928.4			555.0
Non-operating pension expense										(4.0	)
Interest expense, net										(29.9	)
Income before taxes									$	521.1

(a)The three and six months ended June 30, 2024 include the following:

1.$0.6 million of income and $9.7 million of charges, respectively, 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.$0.1 million of charges consisting of closure costs related to corrugated products facilities. For the six months ended June 30, 2024, these charges were completely offset by $0.1 million of income primarily related to a favorable lease buyout for a closed corrugated products facility during the first quarter of 2024.

(b)The three and six months ended June 30, 2023 include the following:

1.$4.4 million and $5.7 million, respectively, 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.$3.9 million and $13.6 million, respectively, of charges consisting of closure costs related to corrugated products facilities and design centers.