| Segment Information |
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, and income taxes. For many of these 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 | | Operating Income (Loss) | | Three Months Ended September 30, 2016 | | Trade | | Inter-segment | | Total | | | Packaging | | $ | 1,165.0 |
| | $ | 2.1 |
| | $ | 1,167.1 |
| | $ | 179.6 |
| (a) | Paper | | 292.8 |
| | — |
| | 292.8 |
| | 44.5 |
| (a) | Corporate and Other | | 26.2 |
| | 36.7 |
| | 62.9 |
| | (17.7 | ) | | Intersegment eliminations | | — |
| | (38.8 | ) | | (38.8 | ) | | — |
| | | | $ | 1,484.0 |
| | $ | — |
| | $ | 1,484.0 |
| | 206.4 |
| | Interest expense, net | | | | | | | | (23.4 | ) | | Income before taxes | | | | | | | | $ | 183.0 |
| |
| | | | | | | | | | | | | | | | | | | | | Sales, net | | Operating Income (Loss) | | Three Months Ended September 30, 2015 | | Trade | | Inter-segment | | Total | | | Packaging | | $ | 1,144.0 |
| | $ | 0.4 |
| | $ | 1,144.4 |
| | $ | 198.2 |
| (b) | Paper | | 291.9 |
| | — |
| | 291.9 |
| | 39.5 |
| (c) | Corporate and Other | | 34.9 |
| | 36.3 |
| | 71.2 |
| | (18.3 | ) | (d) | Intersegment eliminations | | — |
| | (36.7 | ) | | (36.7 | ) | | — |
| | | | $ | 1,470.8 |
| | $ | — |
| | $ | 1,470.8 |
| | 219.4 |
| | Interest expense, net | | | | | | | | (21.7 | ) | | Income before taxes | | | | | | | | $ | 197.7 |
| |
| | | | | | | | | | | | | | | | | | | | | Sales, net | | Operating Income (Loss) | | Nine Months Ended September 30, 2016 | | Trade | | Inter-segment | | Total | | | Packaging | | $ | 3,382.4 |
| | $ | 5.5 |
| | $ | 3,387.9 |
| | $ | 533.5 |
| (a) | Paper | | 840.1 |
| | — |
| | 840.1 |
| | 105.0 |
| (a) | Corporate and Other | | 79.9 |
| | 105.7 |
| | 185.6 |
| | (51.1 | ) | (a) | Intersegment eliminations | | — |
| | (111.2 | ) | | (111.2 | ) | | — |
| | | | $ | 4,302.4 |
| | $ | — |
| | $ | 4,302.4 |
| | 587.4 |
| | Interest expense | | | | | | | | (67.5 | ) | | Income before taxes | | | | | | | | $ | 519.9 |
| |
| | | | | | | | | | | | | | | | | | | | | Sales, net | | Operating Income (Loss) | | Nine Months Ended September 30, 2015 | | Trade | | Inter-segment | | Total | | | Packaging | | $ | 3,382.8 |
| | $ | 3.1 |
| | $ | 3,385.9 |
| | $ | 533.9 |
| (b) | Paper | | 870.3 |
| | — |
| | 870.3 |
| | 98.6 |
| (c) | Corporate and Other | | 97.7 |
| | 101.0 |
| | 198.7 |
| | (58.4 | ) | (d) | Intersegment eliminations | | — |
| | (104.0 | ) | | (104.0 | ) | | — |
| | | | $ | 4,350.8 |
| | $ | — |
| | $ | 4,350.8 |
| | 574.1 |
| | Interest expense | | | | | | | | (63.2 | ) | | Income before taxes | | | | | | | | $ | 510.9 |
| |
___________ | | (a) | The three and nine months ended September 30, 2016 include $2.0 million and $6.5 million, respectively, of closure costs related to corrugated products facilities and a paper products facility. The closure costs are recorded within "Other income (expense), net" and "Cost of sales", as appropriate. |
The three and nine months ended September 30, 2016 include $2.9 million and $3.2 million of acquisition-related costs for the TimBar Corporation acquisition, which we recorded in "Other income (expense), net". The nine months ended September 30, 2016 include $0.9 million of costs related to our withdrawal from a multiemployer pension plan for one of our corrugated products facilities. | | (b) | The three and nine months ended September 30, 2015 include $3.8 million of income and $5.4 million of expense, respectively, related to restructuring charges at our mill in DeRidder, Louisiana, which were recorded in "Other income (expense), net" and "Cost of sales", as appropriate. |
The nine months ended September 30, 2015 include $2.7 million of Boise acquisition integration-related and other costs, respectively. These costs primarily relate to professional fees, severance, retention, relocation, travel, and other integration-related costs, and are mostly recorded in "Other income (expense), net". | | (c) | In September 2015, we sold the remaining land, buildings, and equipment at our paper mill site in St. Helens, Oregon, where we ceased paper production in December 2012. We recorded a $6.7 million gain on the sale, in "Other income (expense), net". |
| | (d) | The three and nine months ended September 30, 2015 include $2.4 million and $6.9 million, respectively, of Boise acquisition integration-related and other costs, mostly recorded in "Other income (expense), net". |
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