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Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information

16.

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

 

 

 

 

 

 

Three Months Ended June 30, 2017

 

Trade

 

 

Inter-segment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

1,305.5

 

 

$

6.0

 

 

$

1,311.5

 

 

$

224.5

 

(a)

Paper

 

 

253.7

 

 

 

—

 

 

 

253.7

 

 

 

29.1

 

 

Corporate and Other

 

 

24.8

 

 

 

31.1

 

 

 

55.9

 

 

 

(19.8

)

 

Intersegment eliminations

 

 

—

 

 

 

(37.1

)

 

 

(37.1

)

 

 

—

 

 

 

 

$

1,584.0

 

 

 

—

 

 

$

1,584.0

 

 

 

233.8

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25.2

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

208.6

 

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Three Months Ended June 30, 2016

 

Trade

 

 

Inter-segment

 

 

Total

 

 

Operating

Income (Loss)

 

 

Packaging

 

$

1,123.6

 

 

$

1.7

 

 

$

1,125.3

 

 

$

192.4

 

(c)

Paper

 

 

266.8

 

 

 

—

 

 

 

266.8

 

 

 

24.4

 

 

Corporate and Other

 

 

27.0

 

 

 

33.0

 

 

 

60.0

 

 

 

(16.6

)

(c)

Intersegment eliminations

 

 

—

 

 

 

(34.7

)

 

 

(34.7

)

 

 

—

 

 

 

 

$

1,417.4

 

 

$

—

 

 

$

1,417.4

 

 

 

200.2

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22.5

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

177.7

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Six Months Ended June 30, 2017

 

Trade

 

 

Inter-segment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

2,556.8

 

 

$

11.6

 

 

$

2,568.4

 

 

$

415.3

 

(b)

Paper

 

 

512.9

 

 

 

—

 

 

 

512.9

 

 

 

58.9

 

 

Corporate and Other

 

 

50.8

 

 

 

59.3

 

 

 

110.1

 

 

 

(37.3

)

(b)

Intersegment eliminations

 

 

—

 

 

 

(70.9

)

 

 

(70.9

)

 

 

—

 

 

 

 

$

3,120.5

 

 

 

—

 

 

$

3,120.5

 

 

 

436.9

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(49.2

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

387.7

 

 

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Six Months Ended June 30, 2016

 

Trade

 

 

Inter-segment

 

 

Total

 

 

Operating Income (Loss)

 

 

Packaging

 

$

2,217.4

 

 

$

3.4

 

 

$

2,220.8

 

 

$

353.9

 

(c)

Paper

 

 

547.3

 

 

 

—

 

 

 

547.3

 

 

 

60.5

 

 

Corporate and Other

 

 

53.7

 

 

 

69.0

 

 

 

122.7

 

 

 

(33.4

)

(c)

Intersegment eliminations

 

 

—

 

 

 

(72.4

)

 

 

(72.4

)

 

 

—

 

 

 

 

$

2,818.4

 

 

$

—

 

 

$

2,818.4

 

 

 

381.0

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44.1

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

336.9

 

 

 

 

(a)

The three months ended June 30, 2017 include $0.5 million of charges consisting of closure costs related to corrugated products facilities and integration costs related to the recent acquisitions.

 

(b)

The six months ended June 30, 2017 include:

 

1.  $5.0 million of costs for the property damage and business interruption insurance deductible corresponding to the February 2017 explosion at our DeRidder, LA mill.

 

2.  $1.2 million of charges consisting of closure costs related to corrugated products facilities, integration costs related to the recent acquisitions, and costs related to a lump sum settlement payment of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities.

 

3.  $2.3 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.

 

(c)

The three and six months ended June 30, 2016 include $2.9 million and $5.7 million of charges consisting of closure costs related to corrugated products facilities and a paper products facility, acquisition-related costs for the TimBar acquisition, and costs related to our withdrawal from a multiemployer pension plan for one of our corrugated products facilities.