Segment Information

9 Months Ended

Sep. 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 September 30, 2024	Trade		Intersegment			Total			Segment Operating Income (Loss)
Packaging	$	1,998.8	$	9.9		$	2,008.7		$	320.7		(a)
Paper		159.3		—			159.3			38.5
Corporate and Other		24.3		41.3			65.6			(32.1	)
Intersegment eliminations		—		(51.2	)		(51.2	)		—
	$	2,182.4	$	—		$	2,182.4			327.1
Non-operating pension income										1.2
Interest expense, net										(9.7	)
Income before taxes									$	318.6

	Sales, net
Three Months Ended September 30, 2023	Trade		Intersegment			Total			Segment Operating Income (Loss)
Packaging	$	1,755.2	$	4.6		$	1,759.8		$	256.8		(c)
Paper		157.9		—			157.9			27.6		(c)
Corporate and Other		22.9		40.6			63.5			(25.8	)
Intersegment eliminations		—		(45.2	)		(45.2	)		—
	$	1,936.0	$	—		$	1,936.0			258.6
Non-operating pension expense										(1.8	)
Interest expense, net										(12.3	)
Income before taxes									$	244.5

	Sales, net
Nine Months Ended September 30, 2024	Trade		Intersegment			Total			Segment Operating Income (Loss)
Packaging	$	5,694.3	$	21.0		$	5,715.3		$	804.3		(a) (b)
Paper		473.2		—			473.2			94.9		(b)
Corporate and Other		69.7		119.5			189.2			(100.1	)
Intersegment eliminations		—		(140.5	)		(140.5	)		—
	$	6,237.2	$	—		$	6,237.2			799.1
Non-operating pension income										3.4
Interest expense, net										(29.7	)
Income before taxes									$	772.8

	Sales, net
Nine Months Ended September 30, 2023	Trade		Intersegment			Total			Segment Operating Income (Loss)
Packaging	$	5,344.3	$	14.4		$	5,358.7		$	810.5		(c)
Paper		451.6		—			451.6			90.8		(c)
Corporate and Other		68.6		116.5			185.1			(87.7	)
Intersegment eliminations		—		(130.9	)		(130.9	)		—
	$	5,864.5	$	—		$	5,864.5			813.6
Non-operating pension expense										(5.8	)
Interest expense, net										(42.2	)
Income before taxes									$	765.6

(a)The three and nine months ended September 30, 2024 include $0.9 million and $1.0 million, respectively, of charges consisting of closure costs related to corrugated products facilities. For the nine months ended September 30, 2024, these charges were partially offset by income primarily related to a favorable lease buyout for a closed corrugated products facility during the first quarter of 2024.

(b)The nine months ended September 30, 2024 include $9.7 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)The three and nine months ended September 30, 2023 include the following:

1.$2.6 million and $8.2 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.$0.1 million of income and $13.5 million of charges, respectively, related to the closure of corrugated products facilities and design centers. Included therein are closure costs as well as the gain on sale of a corrugated products facility.