v3.26.1
Property, Plant, and Equipment
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant, and Equipment

9. Property, Plant, and Equipment

The components of property, plant, and equipment were as follows (dollars in millions):

 

 

 

June 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Land and land improvements

 

$

246.7

 

 

$

258.0

 

Buildings

 

 

1,381.7

 

 

 

1,343.8

 

Machinery and equipment

 

 

8,238.5

 

 

 

8,271.7

 

Construction in progress

 

 

722.5

 

 

 

552.8

 

Other

 

 

221.8

 

 

 

217.0

 

Property, plant and equipment, at cost

 

 

10,811.2

 

 

 

10,643.3

 

Less accumulated depreciation

 

 

(5,800.7

)

 

 

(5,658.2

)

Property, plant, and equipment, net

 

$

5,010.5

 

 

$

4,985.1

 

Depreciation expense for the three months ended June 30, 2026 and 2025 was $157.0 million and $130.8 million, respectively. During the six months ended June 30, 2026 and 2025, depreciation expense was $363.1 million and $258.9 million, respectively. During the six months ended June 30, 2026, we recognized $56.1 million of incremental depreciation expense related to the announced discontinuation of the No. 2 paper machine and kraft pulping facilities at the Wallula, Washington containerboard mill and closure costs related to corrugated products facilities. During the six months ended June 30, 2025, we recognized $3.6 million of incremental depreciation expense as a result of closure costs related to corrugated products facilities.

During the fourth quarter of 2025, the Company entered into an agreement with a third-party contractor to design, construct, and operate a new woodyard and chip processing facility at the Valdosta, Georgia mill. Pursuant to the agreement and in accordance with the build-to-suit guidance in ASC 842, Leases, the Company recorded $12.5 million as construction in progress within “Property, plant, and equipment, net” and a corresponding financing obligation within “Other long-term liabilities” on the Consolidated Balance Sheet as of June 30, 2026. See Note 19, Commitments, Guarantees, Indemnifications, and Legal Proceedings, for additional information.

At June 30, 2026 and December 31, 2025, purchases of property, plant, and equipment included in accounts payable were $100.3 million and $50.4 million, respectively.