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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Sales to External Customers by Product Line

Segment sales to external customers by product line were as follows (dollars in millions):

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Packaging

 

$

5,932.2

 

 

$

5,938.5

 

 

$

5,312.3

 

Paper

 

 

964.3

 

 

 

1,002.0

 

 

 

1,051.8

 

Corporate and Other

 

 

67.8

 

 

 

74.1

 

 

 

80.8

 

 

 

$

6,964.3

 

 

$

7,014.6

 

 

$

6,444.9

 
Analysis of Operations by Reportable Segment

An analysis of operations by reportable segment is as follows (dollars in millions):

 

 

 

Sales, net

 

 

Operating

 

 

Depreciation,

 

 

 

 

 

 

 

 

 

Year Ended

December 31, 2019

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (l)

 

 

Assets

 

Packaging

 

$

5,905.1

 

 

$

27.1

 

 

$

5,932.2

 

 

$

963.4

 

(b)

$

342.8

 

 

$

367.4

 

 

$

5,491.5

 

Paper

 

 

964.3

 

 

 

—

 

 

 

964.3

 

 

 

175.4

 

(c)

 

37.7

 

 

 

23.8

 

 

 

791.4

 

Corporate and Other

 

 

94.9

 

 

 

133.1

 

 

 

228.0

 

 

 

(85.1

)

 

 

7.0

 

 

 

8.3

 

 

 

952.9

 

Intersegment eliminations

 

 

—

 

 

 

(160.2

)

 

 

(160.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

6,964.3

 

 

$

—

 

 

$

6,964.3

 

 

 

1,053.7

 

 

$

387.5

 

 

$

399.5

 

 

$

7,235.8

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(128.8

)

(d)

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

917.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

 

Operating

 

 

Depreciation,

 

 

 

 

 

 

 

 

 

Year Ended

December 31, 2018

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (l)

 

 

Assets

 

Packaging

 

$

5,912.3

 

 

$

26.2

 

 

$

5,938.5

 

 

$

1,045.4

 

(e)

$

342.0

 

 

$

504.0

 

 

$

5,347.0

 

Paper

 

 

1,002.0

 

 

 

—

 

 

 

1,002.0

 

 

 

97.7

 

(f)

 

62.0

 

 

 

12.6

 

 

 

760.1

 

Corporate and Other

 

 

100.3

 

 

 

129.4

 

 

 

229.7

 

 

 

(75.4

)

(g)

 

6.9

 

 

 

34.8

 

 

 

462.6

 

Intersegment eliminations

 

 

—

 

 

 

(155.6

)

 

 

(155.6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

7,014.6

 

 

$

—

 

 

$

7,014.6

 

 

 

1,067.7

 

 

$

410.9

 

 

$

551.4

 

 

$

6,569.7

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(95.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

970.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

 

Operating

 

 

Depreciation,

 

 

 

 

 

 

 

 

 

Year Ended

December 31, 2017

 

Trade

 

 

Inter-

segment

 

 

Total

 

 

Income

(Loss) (a)

 

 

Amortization,

and Depletion

 

 

Capital

Expenditures (l)

 

 

Assets

 

Packaging

 

$

5,288.6

 

 

$

23.7

 

 

$

5,312.3

 

 

$

950.3

 

(h)

$

317.5

 

 

$

305.1

 

 

$

4,933.6

 

Paper

 

 

1,051.8

 

 

 

—

 

 

 

1,051.8

 

 

 

54.0

 

(i)

 

67.6

 

 

 

22.6

 

 

 

945.2

 

Corporate and Other

 

 

104.5

 

 

 

124.7

 

 

 

229.2

 

 

 

(71.8

)

(j)

 

6.3

 

 

 

15.3

 

 

 

318.7

 

Intersegment eliminations

 

 

—

 

 

 

(148.4

)

 

 

(148.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

6,444.9

 

 

$

—

 

 

$

6,444.9

 

 

 

932.5

 

 

$

391.4

 

 

$

343.0

 

 

$

6,197.5

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.3

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(102.6

)

(k)

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

828.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 2017. 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.

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)

 

Year Ended

December 31, 2017

As Reported

 

 

Non-Operating Pension Adjustment

 

 

Year Ended

December 31, 2017

Adjusted

 

Packaging

 

$

943.7

 

 

$

6.6

 

 

$

950.3

 

Paper

 

 

61.5

 

 

 

(7.5

)

 

 

54.0

 

Corporate

 

 

(74.0

)

 

 

2.2

 

 

 

(71.8

)

Income from operations

 

 

931.2

 

 

 

1.3

 

 

 

932.5

 

Non-operating pension expense

 

 

—

 

 

 

(1.3

)

 

 

(1.3

)

Interest expense, net

 

 

(102.6

)

 

 

—

 

 

 

(102.6

)

Income before taxes

 

$

828.6

 

 

$

—

 

 

$

828.6

 

 

(b)     Includes the following:

 

o

$3.0 million of charges for the disposal of fixed assets related to the containerboard mill conversion at our DeRidder, Louisiana mill.

 

o

$0.8 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

 

o

$0.3 million of charges consisting of closure costs related to corrugated products facilities, partially offset by income from the sale of a building related to a closed corrugated products facility.

(c)     Includes $0.2 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

(d)     Includes $38.7 million of charges related to the Company’s November 2019 debt refinancing, which included redemption premiums and the write-offs of remaining balances of treasury locks and unamortized debt issuance costs.

(e)     Includes the following:

 

o

$12.3 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

 

o

$1.6 million of charges consisting of closure costs related to corrugated products facilities.

 

o

$0.5 million of costs for the property damage insurance deductible for a weather-related incident at one of the corrugated products facilities.

 

o

$0.2 million of charges for acquisition and integration costs related to recent acquisitions.

(f)     Includes $17.7 million of charges related to the second quarter discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard.

(g)     Includes $0.2 million of charges consisting of closure costs related to a corporate administration facility.

(h)     Includes the following:

 

o

$7.2 million of income, net, primarily related to the sale of land corresponding to the closure of a corrugated products facility, partially offset by closure costs related to corrugated products facilities, and a lump sum settlement of a multiemployer pension plan withdrawal liability for one of our corrugated products facilities.

 

o

$1.7 million of charges for acquisition and integration costs related to recent acquisitions.

 

o

$2.0 million gain related to the expiration of a repurchase option corresponding to timberland previously sold.

 

o

$1.6 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.

 

o

$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.

(i)     Includes $33.4 million of charges related to the second quarter 2018 discontinuation of uncoated free sheet and coated one-side white paper grades at the Wallula, Washington mill associated with the conversion of the No. 3 paper machine to produce virgin kraft linerboard and $0.4 million of charges related to the closure costs of a paper administration facility.

(j)     Includes $1.0 million of charges related to the closure costs of a corporate administration facility and $0.7 million of income related to a working capital adjustment from the April 2015 sale of our Hexacomb corrugated manufacturing operations in Europe and Mexico.

(k)     Includes $1.8 million of expense related to the write-off of deferred debt issuance costs in connection with the December 2017 debt refinancing.

(l)     Includes “Additions to property, plant, and equipment” and excludes cash used for “Acquisitions of businesses, net of cash acquired” as reported on our Consolidated Statements of Cash Flows.