[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) Three Months Ended June 30, 2017 As Reported Non-Operating Pension Adjustment Three Months Ended June 30, 2017 Adjusted Packaging $224.5 $1.7 $226.2 Paper 29.1 (1.9) 27.2 Corporate (19.8) 0.5 (19.3) Income from operations 233.8 0.3 234.1 Interest expense, net and other (25.2) (0.3) (25.5) Income before taxes $208.6 $— $208.6 Segment income (loss) Six Months Ended June 30, 2017 As Reported Non-Operating Pension Adjustment Six Months Ended June 30, 2017 Adjusted Packaging $415.3 $3.3 $418.6 Paper 58.9 (3.8) 55.1 Corporate (37.3) 1.1 (36.2) Income from operations 436.9 0.6 437.5 Interest expense, net and other (49.2) (0.6) (49.8) Income before taxes $387.7 $— $387.7

[2]

(b)Includes the following: 1.For the three and six months ended June 30, 2018, $0.2 million and $0.5 million, respectively, of charges consisting of closure costs related to corrugated products facilities and a corporate administration facility. 2.For the three and six months ended June 30, 2018, $13.6 million and $22.4 million, respectively, of charges related to the 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.

[3]

(c)Includes $0.5 million of charges consisting of closure costs related to corrugated products facilities and integration costs related to the TimBar Corporation and Columbus Container Inc. acquisitions.

[4]

(d)Includes the following: 1.$1.2 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. 2.$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. 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.