Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

18. 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) income, 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 March 31, 2024	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,793.5	$	4.8		$	1,798.3		$	203.8		(a)
Paper		163.8		—			163.8			29.7		(a)
Corporate and Other		22.2		39.4			61.6			(37.5	)
Intersegment eliminations		—		(44.2	)		(44.2	)		—
	$	1,979.5	$	—		$	1,979.5			196.0
Non-operating pension income										1.1
Interest expense, net										(9.6	)
Income before taxes									$	187.5

	Sales, net
Three Months Ended March 31, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,803.5	$	5.1		$	1,808.6		$	268.0		(b)
Paper		150.9		—			150.9			34.1		(b)
Corporate and Other		21.9		38.6			60.5			(31.4	)
Intersegment eliminations		—		(43.7	)		(43.7	)		—
	$	1,976.3	$	—		$	1,976.3			270.7
Non-operating pension expense										(2.0	)
Interest expense, net										(15.4	)
Income before taxes									$	253.3

(a)	The three months ended March 31, 2024 include the following:
	1.	$10.4 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
	2.	$0.1 million of income primarily related to a favorable lease buyout for a closed corrugated products facility, partially offset by closure costs related to corrugated products facilities and design centers.
(b)	The three months ended March 31, 2023 include the following:
	1.	$9.7 million of charges consisting of closure costs related to corrugated products facilities and design centers.
	2.	$1.2 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.