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 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 March 31, 2018	Trade		Inter-segment			Total			Operating Income (Loss) (a)
Packaging	$	1,396.6	$	6.3		$	1,402.9		$	224.7		(b)
Paper		269.4		—			269.4			7.2		(b)
Corporate and other		24.6		29.0			53.6			(19.0	)	(b)
Intersegment eliminations		—		(35.3	)		(35.3	)		—
	$	1,690.6	$	—		$	1,690.6			212.9
Interest expense, net and other										(26.3	)
Income before taxes									$	186.6

	Sales, net
Three Months Ended March 31, 2017	Trade		Inter-segment			Total			Operating Income (Loss) (a)
Packaging	$	1,251.3	$	5.7		$	1,257.0		$	192.5		(c)
Paper		259.2		—			259.2			27.9
Corporate and Other		26.0		28.2			54.2			(17.0	)	(c)
Intersegment eliminations		—		(33.9	)		(33.9	)		—
	$	1,536.5	$	—		$	1,536.5			203.4
Interest expense, net and other										(24.3	)
Income before taxes									$	179.1

(a)

Effective January 1, 2018, the Company adopted ASU 2017-07, Compensation: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost and applied this standard retrospectively to the prior period reflected herein. This new standard requires the presentation of non-service cost components of net periodic benefits expense to be shown separately outside the subtotal of operating income in the income statement. See Note 2, New and Recently Adopted Accounting Standards, for more information.

The components of our financial statements affected by the change in presentation of operating and non-operating pension expense as originally reported in 2017 and as adjusted for the requirements per the new standard are as follows (dollars in millions):

Segment income (loss)	March 31, 2017 As Reported			Non-Operating Pension Adjustment			March 31, 2017 Adjusted
Packaging	$	190.8		$	1.7		$	192.5
Paper		29.8			(1.9	)		27.9
Corporate		(17.5	)		0.5			(17.0	)
Income from operations		203.1			0.3			203.4
Interest expense, net and other		(24.0	)		(0.3	)		(24.3	)
Income before taxes	$	179.1		$	—		$	179.1

(b)

Includes $0.3 million of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility and $8.8 million of charges related to the announced second quarter 2018 discontinuation of uncoated free sheet and coated one-side grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to a high-performance 100% virgin kraft linerboard machine.

(c)

Includes the following:

$0.8 million of charges consisting of closure costs related to corrugated products facilities, integration costs related to the TimBar Corporation and Columbus Container Inc. acquisitions, and costs related to a lump sum settlement payment of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities.

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

$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.