BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION

Effective January 5, 2017, the consumer product and beverage operating segments (previously aggregated into the Americas Paperboard Packaging reportable segment) were reorganized and combined into an Americas Converting operating segment (Americas Paperboard Packaging reportable segment). As part of this reorganization, Australia, which was previously included as part of the Americas Paperboard Packaging reportable segment, is now an operating segment and included in Corporate/Other/Elimination. Prior periods have been recast.

The Company has three reportable segments as follows:

Paperboard Mills includes the six North American paperboard mills which produce primarily CUK and CRB. The majority of the paperboard is consumed internally to produce paperboard packaging for the Americas and Europe Paperboard Packaging segments. The remaining paperboard is sold externally to a wide variety of paperboard packaging converters and brokers. The Paperboard Mills segment Net Sales represent the sale of paperboard only to external customers. The effect of intercompany transfers to the paperboard packaging segments has been eliminated from the Paperboard Mills segment to reflect the economics of the integration of these segments.

Americas Paperboard Packaging includes paperboard packaging folding cartons sold primarily to Consumer Packaged Goods ("CPG") companies serving the food, beverage, and consumer product markets in the Americas.

Europe Paperboard Packaging includes paperboard packaging folding cartons sold primarily to CPG companies serving the food, beverage and consumer product markets in Europe.

The Company allocates certain mill and corporate costs to the reportable segments to appropriately represent the economics of these segments. The Corporate and Other caption includes the Pacific Rim and Australia operating segments and unallocated corporate and one-time costs.

These segments are evaluated by the chief operating decision maker based primarily on Income from Operations as adjusted for depreciation and amortization. The accounting policies of the reportable segments are the same as those described above in Note 1 - Nature of Business and Summary of Significant Accounting Policies.

The Company did not have any one customer who accounted for 10% or more of the Company’s net sales during 2017, 2016 or 2015.

Business segment information is as follows:



	Year Ended December 31,
In millions	2017			2016			2015
NET SALES:
Paperboard Mills	$	399.7		$	394.7		$	480.5
Americas Paperboard Packaging	3,243.6			3,193.1			3,012.1
Europe Paperboard Packaging	593.1			569.9			603.9
Corporate/Other/Eliminations	167.3			140.4			63.7
Total	$	4,403.7		$	4,298.1		$	4,160.2

INCOME (LOSS) FROM OPERATIONS:
Paperboard Mills^(a)	$	(35.0	)	$	(3.7	)	$	17.1
Americas Paperboard Packaging	358.2			409.0			395.2
Europe Paperboard Packaging	37.3			25.4			40.8
Corporate and Other^(b)	(17.8		)	(34.7		)	(26.0		)
Total	$	342.7		$	396.0		$	427.1

CAPITAL EXPENDITURES:
Paperboard Mills	$	111.4		$	184.2		$	145.0
Americas Paperboard Packaging	98.8			45.9			49.7
Europe Paperboard Packaging	17.3			37.1			39.9
Corporate and Other	32.6			27.4			9.5
Total	$	260.1		$	294.6		$	244.1

DEPRECIATION AND AMORTIZATION:
Paperboard Mills	$	143.7		$	120.3		$	124.7
Americas Paperboard Packaging	125.3			124.7			107.3
Europe Paperboard Packaging	42.1			41.1			40.1
Corporate and Other	19.2			13.2			8.4
Total	$	330.3		$	299.3		$	280.5


^(a)	Includes accelerated depreciation related to shutdown of Santa Clara in 2017.


^(b)	Includes expenses related to acquisitions, integration activities and shutdown costs (excluding accelerated depreciation).



	December 31,
In millions	2017		2016		2015
ASSETS AT DECEMBER 31:
Paperboard Mills	$	1,487.0	$	1,496.1	$	1,445.0
Americas Paperboard Packaging	2,478.7		2,419.8		2,157.1
Europe Paperboard Packaging	607.1		491.9		574.0
Corporate and Other	290.2		195.6		80.0
Total	$	4,863.0	$	4,603.4	$	4,256.1

Business geographic area information is as follows:



	Year Ended December 31,
In millions	2017			2016			2015
NET SALES:
Americas^(a)	$	3,643.3		$	3,601.7		$	3,492.6
Europe	593.1			569.9			603.9
Asia Pacific	215.7			198.1			117.4
Corporate and Other	(48.4		)	(71.6		)	(53.7		)
Total	$	4,403.7		$	4,298.1		$	4,160.2



In millions	2017		2016		2015
ASSETS AT DECEMBER 31:
Americas^(a)	$	4,046.4	$	3,923.2	$	3,590.4
Europe	607.1		491.9		574.0
Asia Pacific	209.5		188.3		91.7
Total	$	4,863.0	$	4,603.4	$	4,256.1

^(a)Includes North America and Brazil.