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Segment Information
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information

19.

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 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, 2019

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income

(Loss)

 

 

Packaging

 

$

1,497.8

 

 

$

6.8

 

 

$

1,504.6

 

 

$

263.9

 

 

Paper

 

 

237.8

 

 

 

—

 

 

 

237.8

 

 

 

38.8

 

 

Corporate and other

 

 

24.3

 

 

 

31.5

 

 

 

55.8

 

 

 

(22.3

)

 

Intersegment eliminations

 

 

—

 

 

 

(38.3

)

 

 

(38.3

)

 

 

—

 

 

 

 

$

1,759.9

 

 

$

—

 

 

$

1,759.9

 

 

 

280.4

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.0

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22.4

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

256.0

 

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Three Months Ended June 30, 2018

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income

(Loss)

 

 

Packaging

 

$

1,489.6

 

 

$

6.6

 

 

$

1,496.2

 

 

$

273.2

 

(b)

Paper

 

 

250.8

 

 

 

—

 

 

 

250.8

 

 

 

16.2

 

(b)

Corporate and Other

 

 

27.1

 

 

 

33.5

 

 

 

60.6

 

 

 

(19.8

)

(b)

Intersegment eliminations

 

 

—

 

 

 

(40.1

)

 

 

(40.1

)

 

 

—

 

 

 

 

$

1,767.5

 

 

$

—

 

 

$

1,767.5

 

 

 

269.6

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.5

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23.8

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

245.3

 

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Six Months Ended June 30, 2019

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income

(Loss)

 

 

Packaging

 

$

2,968.6

 

 

$

13.6

 

 

$

2,982.2

 

 

$

513.4

 

(a)

Paper

 

 

477.5

 

 

 

—

 

 

 

477.5

 

 

 

84.4

 

(a)

Corporate and Other

 

 

47.5

 

 

 

65.0

 

 

 

112.5

 

 

 

(42.0

)

 

Intersegment eliminations

 

 

—

 

 

 

(78.6

)

 

 

(78.6

)

 

 

—

 

 

 

 

$

3,493.6

 

 

$

—

 

 

$

3,493.6

 

 

 

555.8

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4.1

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46.4

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

505.3

 

 

 

 

 

 

Sales, net

 

 

 

 

 

 

Six Months Ended June 30, 2018

 

Trade

 

 

Intersegment

 

 

Total

 

 

Operating Income

(Loss)

 

 

Packaging

 

$

2,886.3

 

 

$

12.8

 

 

$

2,899.1

 

 

$

497.9

 

(b)

Paper

 

 

520.2

 

 

 

—

 

 

 

520.2

 

 

 

23.5

 

(b)

Corporate and Other

 

 

51.6

 

 

 

62.6

 

 

 

114.2

 

 

 

(38.9

)

(b)

Intersegment eliminations

 

 

—

 

 

 

(75.4

)

 

 

(75.4

)

 

 

—

 

 

 

 

$

3,458.1

 

 

$

—

 

 

$

3,458.1

 

 

 

482.5

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.1

)

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(49.6

)

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

431.8

 

 

 

(a)

The six months ended June 30, 2019 include $0.6 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.

 

(b)

Includes the following:

 

1.

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.

 

 

2.

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.