v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
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 non-operating pension income, interest expense, net, and income taxes. For many of these allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

On September 2, 2025, we completed the Greif Acquisition for $1.8 billion in cash. The Greif containerboard business includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants located across the United States. Greif’s financial results are included in the Packaging segment from the date of acquisition.

Chief Operating Decision Maker

ASC 280-10-50-5 (Topic 280) defines the chief operating decision maker (“CODM”) as an individual or group of individuals responsible for assessing the performance of the operating segments of a public entity and determining the overall resource allocation to those operating segments. Based on these criteria, we deem our Chief Executive Officer as the CODM, as the Chief Executive Officer is responsible for evaluating our operating results and concluding on the overall resource allocation.

Analysis of Operations by Reportable Segments

An analysis of operations by reportable segments is as follows (dollars in millions):

 

Three Months Ended June 30, 2026

 

Packaging

 

 

Paper

 

 

Corporate and Other

 

 

Total

 

Trade sales

 

$

2,309.3

 

 

$

157.3

 

 

$

23.3

 

 

$

2,489.9

 

Intersegment sales

 

 

2.0

 

 

 

—

 

 

 

39.6

 

 

 

41.6

 

 

 

 

2,311.3

 

 

 

157.3

 

 

 

62.9

 

 

 

2,531.5

 

Elimination of intersegment sales

 

 

 

 

 

 

 

 

 

 

 

(41.6

)

   Net sales

 

 

 

 

 

 

 

 

 

 

 

2,489.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

 

   Variable costs (b)

 

 

(1,110.6

)

 

 

(83.2

)

 

 

—

 

 

 

—

 

   Fixed costs (c)

 

 

(522.7

)

 

 

(21.0

)

 

 

—

 

 

 

—

 

   Freight

 

 

(268.7

)

 

 

(18.9

)

 

 

—

 

 

 

—

 

   Other segment items (d)

 

 

(96.1

)

 

 

0.1

 

 

 

(119.2

)

 

 

—

 

Income (loss) from operations

 

 

313.2

 

 

 

34.3

 

 

 

(56.3

)

(e)

 

291.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating pension income

 

 

 

 

 

 

 

 

 

 

 

1.1

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(33.3

)

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

259.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

   Segment sales to external customers

 

$

2,309.3

 

 

$

157.3

 

 

$

23.3

 

(f)

$

2,489.9

 

   Depreciation, amortization, and depletion

 

 

166.3

 

 

 

4.8

 

 

 

5.2

 

 

 

176.3

 

   Capital expenditures (g)

 

 

198.7

 

 

 

3.2

 

 

 

4.0

 

 

 

205.9

 

   Assets

 

 

9,676.6

 

 

 

399.8

 

 

 

939.1

 

 

 

11,015.5

 

 

Three Months Ended June 30, 2025

 

Packaging

 

 

Paper

 

 

Corporate and Other

 

 

Total

 

Trade sales

 

$

2,005.9

 

 

$

145.8

 

 

$

19.6

 

 

$

2,171.3

 

Intersegment sales

 

 

—

 

 

 

—

 

 

 

38.8

 

 

 

38.8

 

 

 

 

2,005.9

 

 

 

145.8

 

 

 

58.4

 

 

 

2,210.1

 

Elimination of intersegment sales

 

 

 

 

 

 

 

 

 

 

 

(38.8

)

   Net sales

 

 

 

 

 

 

 

 

 

 

 

2,171.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

 

   Variable costs (b)

 

 

(960.1

)

 

 

(82.8

)

 

 

—

 

 

 

—

 

   Fixed costs (c)

 

 

(445.2

)

 

 

(21.8

)

 

 

—

 

 

 

—

 

   Freight

 

 

(198.4

)

 

 

(15.2

)

 

 

—

 

 

 

—

 

   Other segment items (d)

 

 

(55.9

)

 

 

(0.2

)

 

 

(96.8

)

 

 

—

 

Income (loss) from operations

 

 

346.3

 

 

 

25.8

 

 

 

(38.4

)

(e)

 

333.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

—

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(13.1

)

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

320.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

   Segment sales to external customers

 

$

2,005.9

 

 

$

145.8

 

 

$

19.6

 

(f)

$

2,171.3

 

   Depreciation, amortization, and depletion

 

 

131.8

 

 

 

4.5

 

 

 

4.4

 

 

 

140.7

 

   Capital expenditures (g)

 

 

165.0

 

 

 

1.0

 

 

 

3.7

 

 

 

169.7

 

   Assets

 

 

7,418.6

 

 

 

405.3

 

 

 

1,217.3

 

 

 

9,041.2

 

 

 

Six Months Ended June 30, 2026

 

Packaging

 

 

Paper

 

 

Corporate and Other

 

 

Total

 

Trade sales

 

$

4,497.0

 

 

$

317.2

 

 

$

43.4

 

 

$

4,857.6

 

Intersegment sales

 

 

2.8

 

 

 

—

 

 

 

77.5

 

 

 

80.3

 

 

 

 

4,499.8

 

 

 

317.2

 

 

 

120.9

 

 

 

4,937.9

 

Elimination of intersegment sales

 

 

 

 

 

 

 

 

 

 

 

(80.3

)

   Net sales

 

 

 

 

 

 

 

 

 

 

 

4,857.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

 

   Variable costs (b)

 

 

(2,139.0

)

 

 

(171.9

)

 

 

—

 

 

 

—

 

   Fixed costs (c)

 

 

(1,093.9

)

 

 

(40.0

)

 

 

—

 

 

 

—

 

   Freight

 

 

(508.6

)

 

 

(37.7

)

 

 

—

 

 

 

—

 

   Other segment items (d)

 

 

(184.8

)

 

 

(0.4

)

 

 

(219.1

)

 

 

—

 

Income (loss) from operations

 

 

573.5

 

 

 

67.2

 

 

 

(98.2

)

(e)

 

542.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating pension income

 

 

 

 

 

 

 

 

 

 

 

2.2

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(66.0

)

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

478.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

   Segment sales to external customers

 

$

4,497.0

 

 

$

317.2

 

 

$

43.4

 

(f)

$

4,857.6

 

   Depreciation, amortization, and depletion

 

 

382.2

 

 

 

9.6

 

 

 

9.7

 

 

 

401.5

 

   Capital expenditures (g)

 

 

361.4

 

 

 

4.8

 

 

 

4.4

 

 

 

370.6

 

   Assets

 

 

9,676.6

 

 

 

399.8

 

 

 

939.1

 

 

 

11,015.5

 

 

Six Months Ended June 30, 2025

 

Packaging

 

 

Paper

 

 

Corporate and Other

 

 

Total

 

Trade sales

 

$

3,976.3

 

 

$

300.0

 

 

$

36.0

 

 

$

4,312.3

 

Intersegment sales

 

 

—

 

 

 

—

 

 

 

78.8

 

 

 

78.8

 

 

 

 

3,976.3

 

 

 

300.0

 

 

 

114.8

 

 

 

4,391.1

 

Elimination of intersegment sales

 

 

 

 

 

 

 

 

 

 

 

(78.8

)

   Net sales

 

 

 

 

 

 

 

 

 

 

 

4,312.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

 

   Variable costs (b)

 

 

(1,921.2

)

 

 

(165.7

)

 

 

—

 

 

 

—

 

   Fixed costs (c)

 

 

(892.7

)

 

 

(40.6

)

 

 

—

 

 

 

—

 

   Freight

 

 

(395.1

)

 

 

(32.0

)

 

 

—

 

 

 

—

 

   Other segment items (d)

 

 

(142.9

)

 

 

(0.3

)

 

 

(186.6

)

 

 

—

 

Income (loss) from operations

 

 

624.4

 

 

 

61.4

 

 

 

(71.8

)

(e)

 

614.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating pension expense

 

 

 

 

 

 

 

 

 

 

 

—

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(26.0

)

Income before taxes

 

 

 

 

 

 

 

 

 

 

$

588.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

   Segment sales to external customers

 

$

3,976.3

 

 

$

300.0

 

 

$

36.0

 

(f)

$

4,312.3

 

   Depreciation, amortization, and depletion

 

 

260.1

 

 

 

9.1

 

 

 

9.4

 

 

 

278.6

 

   Capital expenditures (g)

 

 

296.1

 

 

 

1.8

 

 

 

19.9

 

 

 

317.8

 

   Assets

 

 

7,418.6

 

 

 

405.3

 

 

 

1,217.3

 

 

 

9,041.2

 

 

(a)
The significant expense categories align with the segment-level information that is regularly provided to the CODM.
(b)
For the Packaging segment, primarily includes expense items for liner consumption, purchased sheets usage, medium consumption, hourly-employee related expenses and benefits, and raw materials. For the Paper segment, primarily includes expense items for chemicals, raw materials, finishing materials, hourly-employee related expenses, and repair service and materials.
(c)
For both the Packaging and Paper segments, primarily includes expense items for depreciation, salaried employee-related expenses, and professional services.
(d)
Other segment items for each reportable segment primarily include:
1.
Packaging: farmout purchases, certain divisional allocations, and other expense/income items.
2.
Paper: other expense/income items.
3.
Corporate and Other: unallocated corporate costs, transportation business activity, and activity related to LTP.
(e)
The significant expense categories reported for the Packaging and Paper segments are not used for Corporate and Other in the segment-level information that is regularly reviewed by the CODM. The CODM makes resource allocation decisions for Corporate and Other based on divisional income (loss) from operations.
(f)
The Corporate and Other segment sales to external customers is presented net of total company intersegment eliminations.
(g)
Includes “Additions to property, plant, and equipment” and excludes cash used for “Acquisition of business, net of cash acquired” as reported on our Consolidated Statements of Cash Flows.