Segment Information

9 Months Ended

Oct. 01, 2011

Segment Information [Abstract]

Segment Information

Note 12 - Segment Information

We have two business segments: corrugated packaging and building products.  Corrugated packaging manufactures linerboard and corrugating medium (collectively referred to as containerboard), which we convert into corrugated packaging, and lightweight gypsum facing paper.  Building products manufactures a variety of building products.

We evaluate performance based on operating income before items not included in segments and income taxes.  Items not included in segments represent items managed on a company-wide basis and include corporate general and administrative expense, share-based and long-term incentive compensation, other operating and non-operating income (expense), and interest income and expense.  Other operating income (expense) includes gain or loss on sale of assets, asset impairments, closure related severance costs, and unusual income and expense items.  The accounting policies of the segments are the same as those described in the accounting policy notes to the financial statements.  Intersegment sales are recorded at market prices.  Intersegment sales and shared service expense allocations are netted in costs and expenses.

		Corrugated Packaging		Building Products			Items Not Included in Segments and Eliminations			Total
		(In millions)
Third Quarter 2011:
Revenues from external customers	$	808	$	166		$	0		$	974
Depreciation and amortization		39		9			1			49
Equity income from joint ventures		0		0			0			0
Income (loss) before taxes		84		(5	)		(65	)(a)		14
Capital expenditures		37		3			1			41
First Nine Months 2011 or at Third Quarter-End 2011:
Revenues from external customers	$	2,474	$	511		$	0		$	2,985
Depreciation and amortization		113		29			4			146
Equity income from joint ventures		0		0			0			0
Income (loss) before taxes		278		(19	)		(189	)(a)		70
Total assets		2,499		530			2,938			5,967
Investment in equity method investees and joint ventures		2		23			0			25
Goodwill		265		129			0			394
Capital expenditures		156		11			3			170
Third Quarter 2010:
Revenues from external customers	$	809	$	157		$	0		$	966
Depreciation and amortization		37		10			2			49
Equity income from joint ventures		0		1			0			1
Income (loss) before taxes		121		(10	)		(44	)(a)		67
Capital expenditures		48		10			1			59
First Nine Months 2010 or at Third Quarter-End 2010:
Revenues from external customers	$	2,347	$	500		$	0		$	2,847
Depreciation and amortization		107		31			7			145
Equity income from joint ventures		0		3			0			3
Income (loss) before taxes		230		(4	)		(130	)(a)		96
Total assets		2,378		551			2,950			5,879
Investment in equity method investees and joint ventures		2		25			0			27
Goodwill		265		129			0			394
Capital expenditures		121		18			5			144

(a) Items not included in segments consist of:

		Third Quarter						First Nine Months
		2011			2010			2011			2010
		(In millions)
General and administrative expense	$	(16	)	$	(17	)	$	(50	)	$	(54	)
Share-based and long-term incentive compensation		(12	)		(6	)		(51	)		(20	)
Other operating income (expense)		(23	)		(5	)		(38	)		(7	)
Other non-operating income (expense)		(1	)		0			(5	)		0
Net interest income (expense) on financial assets and nonrecourse financial liabilities of special purpose entities		(2	)		(3	)		(11	)		(10	)
Interest expense on debt		(11	)		(13	)		(34	)		(39	)
	$	(65	)	$	(44	)	$	(189	)	$	(130	)
Other operating income (expense) applies to:
Corrugated packaging	$	(15	)	$	(4	)	$	(28	)	$	(6	)
Building products		0			(1	)		0			(1	)
Unallocated		(8	)		0			(10	)		0
	$	(23	)	$	(5	)	$	(38	)	$	(7	)