GRAPHIC PACKAGING HOLDING CO, 10-K filed on 2/7/2018
Annual Report
Document and Entity Information Document (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Feb. 5, 2018
Jun. 30, 2017
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
GRAPHIC PACKAGING HOLDING CO 
 
 
Entity Central Index Key
0001408075 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 4.0 
Entity Common Stock, Shares Outstanding
 
309,715,624 
 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Cost of Sales
 
 
 
 
 
 
 
 
3,684.2 
3,506.2 
3,371.1 
Selling, General and Administrative
 
 
 
 
 
 
 
 
342.7 
355.7 
347.7 
Other Expense (Income), Net
 
 
 
 
 
 
 
 
3.0 
3.1 
(7.7)
Business Combinations and Shutdown and Other Special Charges, Net
12.8 
3.6 
6.1 
8.6 
13.9 
7.4 
5.3 
10.5 
31.1 
37.1 
22.0 
Income from Operations
84.2 
95.4 
87.6 
75.5 
78.1 
105.1 
105.6 
107.2 
342.7 
396.0 
427.1 
Interest Expense, Net
 
 
 
 
 
 
 
 
(89.7)
(76.6)
(67.8)
Income before Income Taxes and Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
253.0 
319.4 
359.3 
Income Tax Benefit (Expense)
 
 
 
 
 
 
 
 
45.5 
(93.2)
(130.4)
Income before Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
298.5 
226.2 
228.9 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
1.7 
1.8 
1.2 
Net Income
$ 173.9 
$ 47.3 
$ 42.0 
$ 37.0 
$ 34.9 
$ 57.8 
$ 77.8 
$ 57.5 
$ 300.2 
$ 228.0 
$ 230.1 
Net Income Per Share Attributable to Graphic Packaging Holding Company - Basic (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.97 
$ 0.71 
$ 0.70 
Net Income Per Share Attributable to Graphic Packaging Holding Company - Diluted (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.96 
$ 0.71 
$ 0.70 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income
$ 300.2 
$ 228.0 
$ 230.1 
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
Derivative Instruments
(4.9)
13.0 
(0.7)
Pension and Postretirement Benefit Plans
8.8 
4.0 
26.8 
Currency Translation Adjustment
44.9 
(58.9)
(37.2)
Total Other Comprehensive Income (Loss), Net of Tax
48.8 
(41.9)
(11.1)
Total Comprehensive Income
$ 349.0 
$ 186.1 
$ 219.0 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current Assets:
 
 
Cash and Cash Equivalents
$ 67.4 
$ 59.1 
Receivables, Net
422.8 
426.8 
Inventories, Net
634.0 
582.9 
Other Current Assets
45.7 
46.1 
Total Current Assets
1,169.9 
1,114.9 
Property, Plant and Equipment, Net
1,867.2 
1,751.9 
Goodwill
1,323.0 
1,260.3 
Intangible Assets, Net
436.5 
445.3 
Other Assets
66.4 
31.0 
Total Assets
4,863.0 
4,603.4 
Current Liabilities:
 
 
Short-Term Debt and Current Portion of Long-Term Debt
61.3 
63.4 
Accounts Payable
516.5 
466.5 
Compensation and Employee Benefits
113.4 
107.3 
Interest Payable
14.9 
15.4 
Other Accrued Liabilities
145.3 
127.2 
Total Current Liabilities
851.4 
779.8 
Long-Term Debt
2,213.2 
2,088.5 
Deferred Income Tax Liabilities, Net
321.8 
408.0 
Accrued Pension and Postretirement Benefits
80.0 
202.5 
Other Noncurrent Liabilities
104.7 
68.1 
Commitments and Contingencies
   
   
SHAREHOLDERS' EQUITY
 
 
Preferred Stock, par value $.01 per share; 100,000,000 shares authorized; no shares issued or outstanding
Common Stock, par value $.01 per share; 1,000,000,000 shares authorized; 309,715,624 and 313,533,785 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively
3.1 
3.1 
Capital in Excess of Par Value
1,683.6 
1,709.0 
Accumulated Deficit
(56.0)
(268.0)
Accumulated Other Comprehensive Loss
(338.8)
(387.6)
Total Shareholders' Equity
1,291.9 
1,056.5 
Total Liabilities and Shareholders' Equity
$ 4,863.0 
$ 4,603.4 
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Preferred Stock, Par Value (in usd per share)
$ 0.01 
$ 0.01 
Preferred Stock Authorized
100,000,000 
100,000,000 
Preferred Stock Issued
Preferred Stock Outstanding
Common Stock Par Value (in usd per share)
$ 0.01 
$ 0.01 
Common Stock Authorized
1,000,000,000 
1,000,000,000 
Common Stock Issued
309,715,624 
313,533,785 
Common Stock Outstanding
309,715,624 
313,533,785 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Common Stock
Capital In Excess of Par Value
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2014
$ 1,012.3 
$ 3.3 
$ 1,796.5 
$ (452.9)
$ (334.6)
Beginning balance, shares at Dec. 31, 2014
 
327,044,500 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net Income (Loss) Attributable to Parent
230.1 
 
 
230.1 
 
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
Derivative Instruments
(0.7)
 
 
 
(0.7)
Pension and Postretirement Benefit Plans
26.8 
 
 
 
26.8 
Currency Translation Adjustment
(37.2)
 
 
 
(37.2)
Repurchase of Common Stock
(63.0)
(0.1)
(24.4)
(38.5)
 
Repurchase of Common Stock, Shares
(4,600,000)
(4,625,211)
 
 
 
Dividends Declared
(65.5)
 
 
(65.5)
 
Recognition of Stock-Based Compensation
(1.1)
 
(1.1)
 
 
Issuance of Shares for Stock-Based Awards
 
 
 
Issuance of Shares for Stock-Based Awards, Shares
 
2,269,428 
 
 
 
Ending balance at Dec. 31, 2015
1,101.7 
3.2 
1,771.0 
(326.8)
(345.7)
Ending balance, shares at Dec. 31, 2015
 
324,688,717 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net Income (Loss) Attributable to Parent
228.0 
 
 
228.0 
 
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
Derivative Instruments
13.0 
 
 
 
13.0 
Pension and Postretirement Benefit Plans
4.0 
 
 
 
4.0 
Currency Translation Adjustment
(58.9)
 
 
 
(58.9)
Repurchase of Common Stock
(169.0)
(0.1)
(71.2)
(97.5)
 
Repurchase of Common Stock, Shares
(13,200,000)
(13,202,425)
 
 
 
Dividends Declared
(71.7)
 
 
(71.7)
 
Recognition of Stock-Based Compensation
9.2 
 
9.2 
 
 
Issuance of Shares for Stock-Based Awards
 
 
 
Issuance of Shares for Stock-Based Awards, Shares
 
1,659,493 
 
 
 
Ending balance at Dec. 31, 2016
1,056.5 
3.1 
1,709.0 
(268.0)
(387.6)
Ending balance, shares at Dec. 31, 2016
313,533,785 
313,145,785 
 
 
 
Pre-2017 Excess Tax Benefit related to Share-Based Payments
39.1 
 
 
39.1 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net Income (Loss) Attributable to Parent
300.2 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
Derivative Instruments
(4.9)
 
 
 
(4.9)
Pension and Postretirement Benefit Plans
8.8 
 
 
 
8.8 
Currency Translation Adjustment
44.9 
 
 
 
44.9 
Repurchase of Common Stock
(58.0)
(24.2)
(34.2)
 
Repurchase of Common Stock, Shares
(4,500,000)
(4,462,263)1
 
 
 
Dividends Declared
(93.1)
 
 
(93.1)
 
Recognition of Stock-Based Compensation
(1.2)
 
(1.2)
 
 
Issuance of Shares for Stock-Based Awards
 
 
 
Issuance of Shares for Stock-Based Awards, Shares
 
1,032,102 
 
 
 
Ending balance at Dec. 31, 2017
$ 1,291.9 
$ 3.1 
$ 1,683.6 
$ (56.0)
$ (338.8)
Ending balance, shares at Dec. 31, 2017
309,715,624 
309,715,624 
 
 
 
Consolidated Statements of Shareholders' Equity Consolidated Statements of Shareholders' Equity (Parenthetical)
1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Feb. 10, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 30, 2016
Common Stock [Member]
Dec. 31, 2017
Common Stock [Member]
Dec. 31, 2016
Common Stock [Member]
Dec. 31, 2015
Common Stock [Member]
Stock Repurchased During Period, Shares
1,400,000 
4,500,000 
13,200,000 
4,600,000 
388,000 
4,462,263 1
13,202,425 
4,625,211 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
$ 300.2 
$ 228.0 
$ 230.1 
Non-cash Items Included in Net Income:
 
 
 
Depreciation and Amortization
330.3 
299.3 
280.5 
Amortization of Deferred Debt Issuance Costs
5.1 
4.8 
4.1 
Deferred Income Taxes
(54.0)
76.7 
110.0 
Amount of Postretirement Expense Less Than Funding
(127.1)
(31.3)
(39.4)
(Gain) Loss on the Sale of Assets, net
(3.7)
1.9 
Other, Net
2.0 
25.4 
21.0 
Changes in Operating Assets and Liabilities, Net of Acquisitions and Dispositions
63.4 
38.5 
(19.0)
Net Cash Provided by Operating Activities
516.2 
641.4 
589.2 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
(240.9)
(278.6)
(228.9)
Packaging Machinery Spending
(19.2)
(16.0)
(15.2)
Acquisition of Businesses, Net of Cash Acquired
(189.4)
(332.7)
(163.2)
Proceeds Received from Sale of Assets, Net of Selling Costs
7.9 
Other, Net
1.0 
(5.2)
7.5 
Net Cash Used in Investing Activities
(440.6)
(632.5)
(399.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
(62.1)
(164.9)
(63.0)
Payments on Debt
(25.0)
(25.0)
(25.0)
Proceeds from Issuance of Debt
300.0 
Borrowings under Revolving Credit Facilities
1,202.9 
1,200.0 
903.0 
Payments on Revolving Credit Facilities
(1,090.8)
(1,235.8)
(953.8)
Debt Issuance Costs
(5.3)
Repurchase of Common Stock Related to Share-Based Payments
(10.2)
(11.3)
(21.5)
Dividends Paid
(93.4)
(64.4)
(49.3)
Other, Net
8.8 
3.6 
(1.3)
Net Cash Used In Financing Activities
(69.8)
(3.1)
(210.9)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
2.5 
(1.6)
(5.2)
Net (Decrease) Increase in Cash and Cash Equivalents
8.3 
4.2 
(26.7)
Cash and Cash Equivalents at Beginning of Year
59.1 
54.9 
81.6 
CASH AND CASH EQUIVALENTS AT END OF YEAR
$ 67.4 
$ 59.1 
$ 54.9 
Nature of Business and Summary of Significant Accounting Policies
Nature of Business and Summary of Significant Accounting Policies
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Graphic Packaging Holding Company (“GPHC” and, together with its subsidiaries, the “Company”) is committed to providing consumer packaging that makes a world of difference. The Company is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The Company operates on a global basis and is one of the largest producers of folding cartons in the United States ("U.S.") and holds leading market positions in coated unbleached kraft paperboard (“CUK”) and coated-recycled paperboard (“CRB”).

The Company’s customers include many of the world's most widely recognized companies and brands with prominent market positions in beverage, food and other consumer products. The Company strives to provide its customers with packaging solutions designed to deliver marketing and performance benefits at a competitive cost by capitalizing on its low-cost paperboard mills and converting plants, its proprietary carton and packaging designs, and its commitment to quality and service.

In preparation for the combination of the Company's existing businesses with the North America Consumer Packaging business of International Paper Company ("IP") as described in Note 19 - Subsequent Events, on December 29, 2017, Graphic Packaging International, Inc., the primary operating subsidiary of GPHC, underwent a statutory conversion and became a Delaware limited liability company. As a result, Graphic Packaging International, Inc.'s name changed to Graphic Packaging International, LLC ("GPI"). When used herein, GPI refers to Graphic Packaging International, Inc. prior to December 29, 2017 and Graphic Packaging International, LLC after such date. As of December 29, 2017, GPI was wholly owned by Graphic Packaging International Partners, LLC, which was in turn wholly-owned by GPI Holding III, LLC, a limited liability company that is classified as a partnership for U.S. Federal income tax purposes. GPI Holding III, LLC is a wholly-owned indirect subsidiary of GPHC.

GPHC conducts no significant business and has no independent assets or operations other than its ownership of all of GPI's membership interest.

Basis of Presentation and Principles of Consolidation

The Company’s Consolidated Financial Statements include all subsidiaries in which the Company has the ability to exercise direct or indirect control over operating and financial policies. Intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to current year presentation.

The Company holds a 50% ownership interest in a joint venture called Rengo Riverwood Packaging, Ltd. (in Japan) which is accounted for using the equity method.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, pension benefits, retained insurable risks, slow-moving and obsolete inventory, allowance for doubtful accounts, useful lives for depreciation and amortization, impairment testing of goodwill and long-term assets, fair values related to acquisition accounting, fair value of derivative financial instruments, deferred income tax assets and potential income tax assessments, and loss contingencies.

Cash and Cash Equivalents

Cash and cash equivalents include time deposits, certificates of deposit and other marketable securities with original maturities of three months or less.

Accounts Receivable and Allowances

Accounts receivable are stated at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, returns and allowances, and cash discounts. The allowance for doubtful accounts is estimated based on historical experience, current economic conditions and the credit worthiness of customers. Receivables are charged to the allowance when determined to be no longer collectible.

The Company has entered into agreements for the purchasing and servicing of receivables to sell, on a revolving basis, certain trade accounts receivable to third party financial institutions. Transfers under these agreements meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification" or "ASC"). During 2017, the Company sold and derecognized $1.8 billion of receivables, collected $1.6 billion on behalf of the financial institutions, and received funding of approximately $134 million by the financial institutions, resulting in deferred proceeds of approximately $102 million as of December 31, 2017. During 2016, the Company sold and derecognized $1.3 billion of receivables, collected approximately $1.2 billion on behalf of the financial institutions, and received funding of approximately $116 million by the financial institutions, resulting in deferred proceeds of approximately $31 million as of December 31, 2016. Cash proceeds related to the sales are included in cash from operating activities on the Consolidated Statements of Cash Flows in the Changes in Operating Assets and Liabilities line item. The loss on sale is not material and is included in Other Expense (Income), Net line item on the Consolidated Statement of Operations.

The Company has also entered into various factoring and supply chain financing arrangements which also qualify for sale accounting in accordance with the Transfers and Servicing topic of the FASB Codification. For the years ended December 31, 2017 and 2016, the Company sold receivables of approximately $64 million and $66 million respectively, related to these factoring arrangements.

Receivables sold under all programs subject to continuing involvement, which consists principally of collection services, were approximately $583 million and $376 million as of December 31, 2017 and 2016, respectively.

Concentration of Credit Risk

The Company’s cash, cash equivalents, and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located in the U.S. and internationally and generally do not require collateral. As of and for the years ended December 31, 2017 and 2016, no customer accounted for more than 10% of net sales.

Inventories

Inventories are stated at the lower of cost and net realizable value with cost determined principally by the first-in, first-out (“FIFO”) basis. Average cost basis is used to determine the cost of supply inventories and certain raw materials. Raw materials and consumables used in the production process such as wood chips and chemicals are valued at purchase cost on a FIFO basis upon receipt. Work in progress and finished goods inventories are valued at the cost of raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) as incurred and an applicable portion of manufacturing overhead. Inventories are stated net of an allowance for slow-moving and obsolete inventory.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Betterments, renewals and extraordinary repairs that extend the life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The Company’s cost and related accumulated depreciation applicable to assets retired or sold are removed from the accounts and the gain or loss on disposition is included in income from operations.

Interest is capitalized on assets under construction for one year or longer with an estimated spending of $1.0 million or more. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest was $1.2 million, $1.3 million and $0.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The Company assesses its long-lived assets, including certain identifiable intangibles, for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. To analyze recoverability, the Company projects future cash flows, undiscounted and before interest, over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets. The Company assesses the appropriateness of the useful life of its long-lived assets periodically.


Depreciation and Amortization

Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets:

Buildings
40 years
Land improvements
15 years
Machinery and equipment
3 to 40 years
Furniture and fixtures
10 years
Automobiles, trucks and tractors
3 to 5 years


Depreciation expense, including the depreciation expense of assets under capital leases, for 2017, 2016 and 2015 was $268.5 million, $240.0 million and $227.6 million, respectively.

Intangible assets with a determinable life are amortized on a straight-line or accelerated basis over their useful lives. The amortization expense for each intangible asset is recorded in the Consolidated Statements of Operations according to the nature of that asset.

Goodwill is the Company’s only intangible asset not subject to amortization. The following table displays the intangible assets that continue to be subject to amortization and accumulated amortization expense as of December 31, 2017 and 2016:

 
December 31, 2017
 
December 31, 2016
 
 
In millions
Gross Carrying Amount
 Accumulated Amortization
 Net Carrying Amount
 
Gross Carrying Amount
 Accumulated Amortization
Net Carrying Amount
Amortizable Intangible Assets:
 
 
 
 
 
 
 
Customer Relationships
$
786.9

$
(377.2
)
$
409.7

 
$
736.0

$
(321.0
)
$
415.0

Patents, Trademarks, Licenses, and Leases
130.2

(103.4
)
26.8

 
125.1

(94.8
)
30.3

Total
$
917.1

$
(480.6
)
$
436.5

 
$
861.1

$
(415.8
)
$
445.3



The Company recorded amortization expense for the years ended December 31, 2017, 2016 and 2015 of $61.8 million,
$59.3 million and $52.9 million, respectively. The Company expects amortization expense for the next five consecutive years to be as follows: $62 million, $60 million, $54 million, $50 million, and $45 million.

Goodwill

The Company tests goodwill for impairment annually as of October 1, as well as whenever events or changes in circumstances suggest that the estimated fair value of a reporting unit may no longer exceed its carrying amount.

The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics.

Potential goodwill impairment is measured at the reporting unit level by comparing the reporting unit’s carrying amount (including goodwill), to the fair value of the reporting unit. When performing the quantitative analysis, the estimated fair value of each reporting unit is determined by utilizing a discounted cash flow analysis based on the Company’s forecasts, discounted using a weighted average cost of capital and market indicators of terminal year cash flows based upon a multiple of EBITDA. If the carrying amount of a reporting unit exceeds its estimated fair value, goodwill is considered potentially impaired. In determining fair value, management relies on and considers a number of factors, including but not limited to, operating results, business plans, economic projections, forecasts including future cash flows, and market data and analysis, including market capitalization. The assumptions used are based on what a hypothetical market participant would use in estimating fair value. Fair value determinations are sensitive to changes in the factors described above. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

Periodically, the Company may perform a qualitative impairment analysis of goodwill associated with each of its reporting units to determine if it is more likely than not that the carrying value of a reporting unit exceeded its fair value. As a result of its testing of goodwill as of October 1, 2017, the Company concluded goodwill was not impaired.

The following is a rollforward of goodwill by reportable segment:

In millions
Paperboard Mills
Americas Paperboard Packaging
Europe Paperboard Packaging
Corporate/Other(a)
Total
Balance at December 31, 2015
$
408.5

$
698.3

$
61.0

$

$
1,167.8

Acquisition of Businesses

98.8


14.1

112.9

Foreign Currency Effects

(7.7
)
(12.0
)
(0.7
)
(20.4
)
Balance at December 31, 2016
$
408.5

$
789.4

$
49.0

$
13.4

$
1,260.3

Acquisition of Businesses

51.4

6.3

(2.3
)
55.4

Reallocation of Goodwill

(4.0
)

4.0


Foreign Currency Effects

2.2

4.2

0.9

7.3

Balance at December 31, 2017
$
408.5

$
839.0

$
59.5

$
16.0

$
1,323.0

(a) 
Includes Australia operating segment.


Retained Insurable Risks

It is the Company’s policy to self-insure or fund a portion of certain expected losses related to group health benefits and workers’ compensation claims. Provisions for expected losses are recorded based on the Company’s estimates, on an undiscounted basis, of the aggregate liabilities for known claims and estimated claims incurred but not reported.

Asset Retirement Obligations

Asset retirement obligations are accounted for in accordance with the provisions of the Asset Retirement and Environmental Obligations topic of the FASB Codification. A liability and asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the asset. Upon settlement of the liability, the Company will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made.

International Currency

The functional currency of the international subsidiaries is the local currency for the country in which the subsidiaries own their primary assets. The translation of the applicable currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. Any related translation adjustments are recorded directly to a separate component of Shareholders’ Equity, unless there is a sale or substantially complete liquidation of the underlying foreign investments.

The Company pursues a currency hedging program which utilizes derivatives to reduce the impact of foreign currency exchange fluctuations on its consolidated financial results. Under this program, the Company has entered into forward exchange contracts in the normal course of business to hedge certain foreign currency denominated transactions. Realized and unrealized gains and losses on these forward contracts are included in the measurement of the basis of the related foreign currency transaction when recorded.

Revenue Recognition

The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an agreement exists, delivery has occurred or services have been rendered, the Company’s price to the buyer is fixed or determinable and collectability is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership.

The timing of revenue recognition is largely dependent on the location of title transfer which is normally either at our plant (shipping point) or upon arrival at our customer’s plant (destination). The Company recognizes revenues on its annual and multi-year carton supply contracts as the shipment occurs in accordance with the title transfer discussed above.

Discounts and allowances are comprised of trade allowances and rebates, cash discounts and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Customer rebates are determined based on contract terms and are recorded at the time of sale.

Shipping and Handling

The Company includes shipping and handling costs in Cost of Sales.

Research and Development

Research and development costs, which relate primarily to the development and design of new packaging machines and products and are recorded as a component of Selling, General and Administrative expenses, are expensed as incurred. Expenses for the years ended December 31, 2017, 2016 and 2015 were $14.4 million, $14.9 million and $13.8 million, respectively.

Business Combinations and Shutdown and Other Special Charges, Net

The following table summarizes the transactions recorded in Business Combinations and Shutdown and Other Special Charges, Net in the Consolidated Statements of Operations as of December 31:
In millions
2017
2016
2015
Net Charges Associated with Business Combinations
$
16.2

$
21.2

$
14.0

Shutdown and Other Special Charges
18.6

15.9

6.1

(Gain) Loss on Sale of Assets
(3.7
)

1.9

Total
$
31.1

$
37.1

$
22.0



2017

On December 1, 2017, the Company acquired the assets of Seydaco Packaging Corp. and its affiliates National Carton and Coating Co., and Groupe Ecco Boites Pliantes Ltée (collectively, "Seydaco"), a folding carton producer focused on the foodservice, food, personal care, and household goods markets. The acquisition includes three folding carton facilities located in Mississauga, Ontario, St.-Hyacinthe, Québec, and Xenia, Ohio.

On December 1, 2017, the Company closed its coated recycled paperboard mill in Santa Clara, California. This decision was made as a result of a thorough assessment of the facility's manufacturing capabilities and associated costs in the context of the Company's overall mill operating capabilities and cost structure. The financial impact is reflected in Shutdown and Other Special Charges in the table above.

On October 4, 2017, the Company acquired Norgraft Packaging, S.A., ("Norgraft"), a leading folding carton producer in Spain focused on the food and household goods markets. The acquisition includes two folding carton facilities located in Miliaño and Requejada, Spain.

On July 10, 2017, the Company acquired substantially all the assets of Carton Craft Corporation and its affiliate Lithocraft, Inc (collectively, "Carton Craft"). The acquisition includes two folding carton facilities located in New Albany, Indiana, focused on the production of paperboard based air filter frames and folding cartons.

The Seydaco, Norgraft, and Carton Craft transactions are referred to collectively as the "2017 Acquisitions." Seydaco and Carton Craft are included in the Americas Paperboard Packaging Segment. Norgraft is included in the Europe Paperboard Packaging Segment.

The Company completed the sale of its Renton, WA facility which was classified as Asset Held for Sale on December 31, 2016. The financial impact is reflected in (Gain) Loss on Sale of Assets in the table above.

2016

On April 29, 2016, the Company acquired Colorpak Limited ("Colorpak"), a leading folding carton supplier in Australia and New Zealand. Colorpak operates three folding carton facilities that convert paperboard into folding cartons for the food, beverage and consumer product markets. The folding carton facilities are located in Melbourne, Australia, Sydney, Australia and Auckland, New Zealand.

On March 31, 2016, the Company acquired substantially all of the assets of Metro Packaging & Imaging, Inc. ("Metro"), a single folding carton facility located in Wayne, New Jersey.

On February 16, 2016, the Company acquired Walter G. Anderson, Inc., ("WG Anderson") a folding carton manufacturer with a focus on store branded food and consumer product markets. WG Anderson operates two sheet-fed folding carton facilities located in Hamel, Minnesota and Newton, Iowa.

On January 5, 2016, the Company acquired G-Box, S.A. de C.V., ("G-Box"). The acquisition includes two folding carton facilities located in Monterrey, Mexico and Tijuana, Mexico that service the food, beverage and consumer product markets.

2015

On October 1, 2015, the Company acquired the folding carton assets of Staunton, VA-based Carded Graphics, LLC. ("Carded"), a folding carton producer with a strong regional presence in the food, craft beer and other consumer product markets. 

On February 4, 2015, the Company acquired certain assets of Cascades' Norampac Division ("Cascades") in Canada. Cascades services the food and beverage markets and operates three folding carton facilities located in Cobourg, Ontario, Mississauga, Ontario and Winnipeg, Manitoba along with a thermo mechanical pulp mill located in Jonquière, Quebec and a coated recycled board mill located in East Angus, Quebec. The Jonquière mill was shutdown in the third quarter of 2015.

On January 2, 2015, the Company acquired Rose City Printing and Packaging Inc. ("Rose City"). Rose City services food and beverage markets and operates two folding carton facilities located in Gresham, OR and Vancouver, WA.

As also disclosed in Note 1 - Nature of Business and Summary of Significant Accounting Policies, the Company acquired Rose City, Cascades and Carded and are included in the Americas Paperboard Packaging Segment.

Charges associated with all acquisitions are included in Net Charges Associated with Business Combinations in the table above. For more information regarding these acquisitions see Note 4 - Acquisitions.

Capital Allocation Plan

On January 10, 2017, the Company's board of directors authorized an additional share repurchase program to allow the Company to repurchase up to $250 million of the Company's issued and outstanding shares of common stock through open market purchases, privately negotiated transactions and Rule 10b5-1 plans (the "2017 share repurchase program"). The original $250 million share repurchase program was authorized on February 4, 2015 (the "2015 share repurchase program").

During 2017, the Company repurchased 4.5 million shares, or approximately $58 million, of its common stock at an average price of $13.08, including 1.4 million shares repurchased under the 2015 share repurchase program thereby completing that program. During 2016, the Company repurchased 13.2 million shares, or approximately $169 million, of its common stock at an average price of $12.77. During 2015, the Company repurchased 4.6 million shares, or approximately $63 million at an average price of $13.60.

At December 31, 2017, the Company had approximately $210 million remaining under the 2017 share repurchase program.

During 2017 and 2016, the Company paid cash dividends of $93.4 million and $64.4 million, respectively.

Adoption of New Accounting Standards

Effective January 1, 2017 the Company adopted Accounting Standards Update ("ASU") No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for income taxes, among other changes, related to stock-based compensation. In the first quarter of 2017, the Company recorded a discrete benefit of approximately $2 million related to the excess benefit associated with share based payments to employees. The remaining $39 million of previously unrecognized excess tax benefits, which were prohibited from recognition due to net operating loss carryforwards, were recognized in accumulated deficit. The Company is continuing its practice of estimating forfeitures and recording cash paid for withholding taxes as a financing activity.

Effective January 1, 2017 the Company adopted ASU No. 2015-11, Inventory (Topic 330); Simplifying the Measurement of Inventory. This amendment replaced the method of measuring inventories at lower of cost or market with a lower of cost and net realizable value method. The adoption had no impact on the Company's financial position, results of operations and cash flows.

Accounting Standards Not Yet Adopted

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815); Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align the risk management activities and financial reporting for these hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718); Scope of Modification Accounting. The amendments in this ASU provide guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the value, vesting conditions or classification of the award changes, modification accounting will apply. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715); Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments to this ASU require the service cost component of net periodic benefit cost be reported in the same income statement line or lines as other compensation costs for employees. The other components of net periodic benefit cost are required to be reported separately from service costs and outside a subtotal of income from operations. Only the service cost component is eligible for capitalization. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied retrospectively for the income statement presentations and prospectively for the capitalization of service costs. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350); Simplifying the Test for Goodwill Impairment which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 of the goodwill impairment model. Step 2 measures a goodwill impairment loss by comparing the implied value of a reporting unit’s goodwill with the carrying amount of that goodwill. An entity would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized is limited to the amount of goodwill allocated to that reporting unit. The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this ASU provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and will be applied prospectively.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230); Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance to clarify how certain cash receipts and payments should be presented in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a retrospective adoption method. The Company is evaluating the impact of adoption of this standard on the Company's statement of cash flows.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is evaluating the impact of adoption on the Company's financial position, results of operation and cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Adoption of ASU No. 2014-09 requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB deferred the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard but not before the original effective date of December 15, 2016, and can be applied using a full retrospective or modified retrospective approach. The Company is adopting this standard in the first quarter of fiscal 2018 and will use the modified retrospective approach. The Company formed an implementation team including representatives from finance, sales, and legal to assist in the assessment and implementation of this standard. The Company considered whether the adoption may require acceleration of revenue for products produced by the Company without an alternative use and when the Company would have a legally enforceable right of payment. Based on the Company's contract review, relevant laws, and other procedures, the Company concluded an enforceable right of payment does not exist because the Company is only entitled to cost for unclaimed cartons should a customer terminate without cause; therefore acceleration of revenue is not required. The Company is continuing its evaluation of all other aspects of the standard, and currently does not believe the adoption of the standard will have a material impact on the Company's financial position, results of operations and cash flows.
Supplemental Balance Sheet Data
Supplemental Balance Sheet Data
SUPPLEMENTAL BALANCE SHEET DATA

The following tables provide disclosure related to the components of certain line items included in our consolidated balance sheets.

Receivables, Net:

In millions
2017
2016
Trade
$
279.2

$
370.0

Less: Allowance
(7.2
)
(6.7
)
 
272.0

363.3

Other (a)
150.8

63.5

Total
$
422.8

$
426.8

(a) 
Includes a receivable of approximately $102 million and $31 million for 2017 and 2016, respectively, from the financial institution under the purchasing and servicing of receivables agreements, which is a Level 3 fair value measurement.


Inventories, Net by major class:

In millions
2017
2016
Finished Goods
$
240.5

$
238.3

Work in Progress
74.1

73.5

Raw Materials
229.4

187.2

Supplies
90.0

83.9

Total
$
634.0

$
582.9


Other Current Assets:

In millions
2017
2016
Prepaid Assets
$
34.3

$
34.1

Assets Held for Sale
10.2

5.0

Fair Value of Derivatives, current portion
1.2

7.0

Total
$
45.7

$
46.1

Property, Plant and Equipment, Net:

In millions
2017
2016
Property, Plant and Equipment, at Cost:
 
 
Land and Improvements
$
106.2

$
105.9

Buildings
431.9

404.1

Machinery and Equipment (a)    
4,384.5

4,137.0

Construction-in-Progress
151.0

106.4

 
5,073.6

4,753.4

Less: Accumulated Depreciation (a)    
(3,206.4
)
(3,001.5
)
Total
$
1,867.2

$
1,751.9


(a) 
Includes gross assets under capital lease of $39.7 million and related accumulated depreciation of $7.4 million as of December 31, 2017 and gross assets under capital lease of $25.6 million and related accumulated depreciation of $5.0 million as of December 31, 2016.


Other Assets:

In millions
2017
2016
Deferred Debt Issuance Costs, Net of Amortization of $10.9 million and $9.3 million for 2017 and 2016, respectively    
$
2.9

$
4.5

Deferred Income Tax Assets
6.8

3.2

Pension Assets
20.4

3.0

Fair Value of Derivatives, noncurrent portion

0.7

Other
36.3

19.6

Total
$
66.4

$
31.0


Other Accrued Liabilities:

In millions
2017
2016
Dividends Payable
$
23.3

$
23.6

Deferred Revenue
11.6

11.4

Accrued Customer Rebates
15.5

8.0

Fair Value of Derivatives, current portion
1.2

0.8

Other Accrued Taxes
29.8

22.3

Accrued Payables
25.7

10.8

Other
38.2

50.3

Total
$
145.3

$
127.2



Other Noncurrent Liabilities:

In millions
2017
2016
Deferred Revenue
$
6.6

$
6.7

Multi-employer Plans
29.0

30.4

Workers Compensation Reserve
10.9

10.7

Accrued Build-to-Suit Obligation
35.8


Other
22.4

20.3

Total
$
104.7

$
68.1

Supplemental Cash Flow Information
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION

Cash Flow Provided by (Used In) Operations Due to Changes in Operating Assets and Liabilities, net of acquisitions:
In millions
2017
2016
2015
Receivables, Net
$
49.9

$
25.5

$
(1.5
)
Inventories, Net
(6.5
)
10.5

(19.7
)
Prepaid Expenses
0.8

(1.2
)
0.1

Other Assets
(32.8
)
8.5

(12.4
)
Accounts Payable
27.0

4.3

12.7

Compensation and Employee Benefits
3.5

(21.7
)
(1.9
)
Income Taxes
2.3

1.7

0.9

Interest Payable
(1.7
)
5.0

(1.1
)
Other Accrued Liabilities
6.7

12.8

(3.9
)
Other Noncurrent Liabilities
14.2

(6.9
)
7.8

Total
$
63.4

$
38.5

$
(19.0
)



Cash paid for interest and cash paid, net of refunds, for income taxes was as follows:
In millions
2017
2016
2015
Interest
$
81.8

$
64.9

$
60.9

Income Taxes
$
15.9

$
14.5

$
11.2

Acquisitions
Acquisitions
ACQUISITIONS

As disclosed in Note 1 - Nature of Business and Summary of Significant Accounting Policies, the Company acquired Seydaco, Norgraft and Carton Craft which are referred to collectively as the "2017 Acquisitions." Seydaco and Carton Craft are included in the Americas Paperboard Packaging segment. Norgraft is included in the Europe Paperboard Packaging Segment.

The Company paid approximately $189 million, net of cash acquired, for the 2017 Acquisitions using existing cash and borrowings under its revolving line of credit, and assumed debt of approximately $14 million. The acquisition accounting for the 2017 Acquisitions is preliminarily based on the estimated fair values as of the purchase dates and is subject to adjustments in subsequent periods once the third party valuations are completed. Management believes that the purchase price attributable to goodwill represents the benefits expected as the acquisitions were made to continue to expand its product offering, integrate paperboard from the Company's mills and to further optimize the Company's supply chain footprint.

The Company expects that the goodwill related to Seydaco and Carton Craft will be deductible for tax purposes. The preliminary acquisition accounting for the 2017 Acquisitions is as follows:

In millions
Amounts Recognized as of Acquisition Date
Measurement Period Adjustments
Amounts Recognized as of Acquisition Dates (as adjusted)
Purchase Price
$
191.0

$
1.5

$
192.5

Assumed Debt
14.0


14.0

  Total Purchase Consideration
$
205.0

$
1.5

$
206.5

 
 
 
 
Cash and Cash Equivalents
$
3.1

$

$
3.1

Receivables, Net
25.9


25.9

Inventories, Net
29.9

1.1

31.0

Property, Plant and Equipment, Net
32.6

21.9

54.5

Intangible Assets, Net(a)

43.3

43.3

Other Assets
0.5


0.5

  Total Assets Acquired    
92.0

66.3

158.3

Current Liabilities
3.7


3.7

Pension and Postretirement Benefits
0.5


0.5

Deferred Tax Liabilities

4.6

4.6

Other Noncurrent Liabilities
0.7


0.7

  Total Liabilities Assumed    
4.9

4.6

9.5

  Net Assets Acquired    
87.1

61.7

148.8

Goodwill
117.9

(60.2
)
57.7

  Total Estimated Fair Value of Net Assets Acquired    
$
205.0

$
1.5

$
206.5



(a) 
The weighted average life of Intangibles, Net, is 18 years. The Intangible Assets, Net were valued using the income approach and are a Level 3 fair value measurement.

During 2017, Net Sales and Income from Operations for the 2017 Acquisitions were $44.5 million and $1.5 million, respectively.

As also disclosed in Note 1 - Nature of Business and Summary of Significant Accounting Policies, during 2016, the Company acquired Colorpak, Metro, WG Anderson and G-Box for approximately $333 million. The acquisitions are referred to collectively as the "2016 Acquisitions" and the acquisition accounting has been finalized.
Debt
Debt
DEBT

Short-Term Debt is comprised of the following:

In millions
2017
2016
Short Term Borrowings
$
9.1

$
37.1

Current Portion of Capital Lease Obligations
2.2

1.3

Current Portion of Long-Term Debt
50.0

25.0

Total
$
61.3

$
63.4



Short-term borrowings are principally at the Company’s international subsidiaries. The weighted average interest rate on short-term borrowings as of December 31, 2017 and 2016 was 6.1% and 3.2%, respectively.


Long-Term Debt is comprised of the following:

In millions
2017
2016
Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.19%, payable in 2024
$
300.0

$
300.0

Senior Notes with interest payable semi-annually at 4.875%, effective rate of 4.93%, payable in 2022
250.0

250.0

Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.78%, payable in 2021
425.0

425.0

Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (2.84% at December 31, 2017) payable through 2019
925.0

950.0

Senior Secured Revolving Credit Facilities with interest payable at floating rates (2.55% at December 31, 2017) payable in 2019
319.0

184.8

Capital Lease Obligations
30.0

17.9

Other
28.9

3.0

Total Long-Term Debt
2,277.9

2,130.7

Less: Current Portion
52.2

26.3

 
2,225.7

2,104.4

Less: Unamortized Deferred Debt Issuance Costs
12.5

15.9

Total
$
2,213.2

$
2,088.5




Long-Term Debt maturities (excluding capital leases) are as follows:

In millions
2018
$
50.0

2019
1,194.8

2020
20.7

2021
425.4

2022
250.6

After 2022
306.4

Total
$
2,247.9




Senior Notes

During August 2016, the Company completed the issuance and sale of $300 million aggregate principal amount of 4.125% Notes due 2024. In connection with the new notes, the Company recorded deferred financing cost of approximately $5.4 million.


Credit Facilities

The following describes the Senior Secured Term Loan and Revolving Credit Facilities:

Date
Document(a)(b)
Provision
Expiration
March 2012
Amended and Restated Credit Agreement
•$1.0 billion revolving credit facility •$1.0 billion amortizing term loan facility •LIBOR plus variable spread(between 175 basis points and 275 basis points) depending on consolidated total leverage ratio
March 2017
December 2012
Amendment No. 1 to Credit Agreement
•$300 million incremental term loan
March 2017
September 2013
Amendment No. 2 to Credit Agreement
•Added €75 million (approximately $100 million) revolving credit facility for borrowings in Euro and Pound Sterling and a ¥2.5 billion (approximately $25 million) revolving credit facility for borrowings in Yen. LIBOR plus variable spread (between 150 basis points and 250 basis points) depending on consolidated total leverage ratio
September 2018
June 2014
Amendment No. 3 to Credit Agreement
•Increased revolving credit facility under which borrowings can be made in Euros or Sterling by €63 million (approximately $86 million)
September 2018
October 2014
Second Amended and Restated Credit Agreement
•Increased the domestic revolving credit facility by $250 million and reduced the term loan by approximately $169 million. LIBOR plus variable spread (between 125 basis points and 225 basis points) depending on consolidated total leverage ratio
October 2019


(a) The Company's obligations under the Credit Agreement are secured by substantially all of the Company's domestic assets.

(b) On January 1, 2018, the Company entered into a Third Amended and Restated Credit Agreement that increased the commitment and drawn balance of the domestic revolving credit facility by $200 million and reduced the term loan by $125 million. The rate is LIBOR plus variable spread (between 125 basis points and 200 basis points) depending on consolidated total leverage ratio. The maturity date has been extended to January 2023. The Third Amended and Restated Credit Agreement was filed as an exhibit to the Company's Form 8-K filed on January 2, 2018. In addition to the Amended and Restated Credit Agreement, the Company assumed debt of $660.0 million as described in Note 19 - Subsequent Events.
  
At December 31, 2017, the Company and its U.S. and international subsidiaries had the following commitments, amounts outstanding and amounts available under revolving credit facilities:

In millions
Total Commitments
Total Outstanding
Total Available
Senior Secured Domestic Revolving Credit Facility (a)
$
1,250.0

$
218.8

$
1,010.6

Senior Secured International Revolving Credit Facilities
188.1

100.2

87.9

Other International Facilities
67.5

38.0

29.5

Total
$
1,505.6

$
357.0

$
1,128.0

(a) 
In accordance with its debt agreements, the Company's availability under its Revolving Credit Facility has been reduced by the amount of standby letters of credit issued of $20.6 million as of December 31, 2017. These letters of credit are primarily used as security against its self-insurance obligations and workers' compensation obligations. These letters of credit expire throughout 2018 unless extended.

The Amended and Restated Credit Agreement, the Term Loan Credit Agreement and the indentures governing the 4.75% Senior Notes due 2021, 4.875% Senior Notes due 2022 and 4.125% Senior Notes due 2024, (the “Indentures”) limit the Company’s ability to incur additional indebtedness. Additional covenants contained in the Credit Agreement and the Indentures may, among other things, restrict the ability of the Company to dispose of assets, incur guarantee obligations, prepay other indebtedness, repurchase stock, pay dividends and make other restricted payments, create liens, make equity or debt investments, make acquisitions, modify terms of the Indenture, engage in mergers or consolidations, change the business conducted by the Company and its subsidiaries, and engage in certain transactions with affiliates. Such restrictions could limit the Company’s ability to respond to changing market conditions, fund its capital spending program, provide for unexpected capital investments or take advantage of business opportunities.

As of December 31, 2017, the Company was in compliance with the covenants in the Amended and Restated Credit Agreement, the Term Loan Credit Agreement and the Indentures.
Stock Incentive Plans
Stock Incentive Plans
STOCK INCENTIVE PLANS

The Company has one active equity compensation plan from which new grants may be made, the Graphic Packaging Holding Company 2014 Omnibus Stock and Incentive Compensation Plan (the “2014 Plan”). Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU’s”) and other types of stock-based and cash awards. Awards under the 2014 Plan generally vest and expire in accordance with terms established at the time of grant. Shares issued pursuant to awards under the 2014 Plan are from the Company’s authorized but unissued shares. Compensation costs are recognized on a straight-line basis over the requisite service period of the award.

Stock Awards, Restricted Stock and Restricted Stock Units

Under the 2014 Plan, all RSUs generally vest and become payable in three years from date of grant. RSUs granted to employees generally contain performance conditions based on various financial targets or service requirements that must be met for the shares to vest. Stock awards granted to non-employee directors as part of their compensation for service on the Board are unrestricted on the grant date.
Data concerning RSUs and stock awards granted in the years ended December 31:

 
2017
2016
2015
RSUs — Employees
1,547,049

1,891,335

1,751,823

Weighted-average grant date fair value
$
13.35

$
11.20

$
13.28

Stock Awards — Board of Directors
65,520

59,880

54,120

Weighted-average grant date fair value
$
13.43

$
13.36

$
14.78



A summary of the changes in the number of unvested RSUs from December 31, 2014 to December 31, 2017 is presented below:

 
 
 
Shares
Weighted Average Grant Date Fair Value
Outstanding — December 31, 2014
7,613,698

$
7.20

Granted
1,751,823

13.28

Released
(3,657,373
)
5.45

Forfeited
(268,560
)
9.32

Outstanding — December 31, 2015
5,439,588

$
10.22

Granted
1,891,335

11.20

Released
(2,596,292
)
7.29

Forfeited
(66,956
)
12.74

Outstanding — December 31, 2016
4,667,675

$
12.21

Granted
1,547,049

13.35

Released
(1,720,327
)
10.05

Forfeited
(622,463
)
13.13

Outstanding — December 31, 2017
3,871,934

$
13.10



The initial value of the RSUs is based on the market value of the Company’s common stock on the date of grant. RSUs are recorded in Stockholders' Equity. The unrecognized expense at December 31, 2017 is approximately $22 million and is expected to be recognized over a weighted average period of 2 years.

The value of stock awards granted to the Company's directors are based on the market value of the Company’s common stock on the date of grant. These awards are unrestricted on the date of grant.

During 2017, 2016, and 2015, $8.9 million, $20.2 million and $20.4 million, respectively, were charged to compensation expense for stock incentive plans.

During 2017, 2016, and 2015, RSUs with an aggregate fair value of $23.2 million, $32.0 million and $56.1 million, respectively, vested and were paid out. The RSUs vested and paid out in 2017 were granted primarily during 2014.
Pensions and Other Postretirement Benefits
Pensions and Other Postretirement Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS

DEFINED BENEFIT PLANS

The Company maintains both defined benefit pension plans and postretirement health care plans that provide medical and life insurance coverage to eligible salaried and hourly retired employees in North America and their dependents. The Company maintains international defined benefit pension plans which are both noncontributory and contributory and are funded in accordance with applicable local laws. Pension or termination benefits are based primarily on years of service and the employees’ compensation.

Currently, the North American plans are closed to newly-hired employees. Effective July 1, 2011, the North American plans were frozen for most salaried and non-union hourly employees and replaced with a defined contribution plan. During 2015, the remaining union plans were closed to newly-hired employees. Also in 2015, the Company assumed defined benefit pension and postretirement benefit plans in the Cascades acquisition. These plans are closed to newly-hired employees. In 2016, the Company assumed a defined benefit plan in the WG Anderson acquisition, which was frozen for all participants on December 31, 2016.

During the fourth quarter of 2017, the Company made an additional $75 million contribution to its U.S. defined benefit plan.  Since this plan is closed and mostly frozen, the Company has hedged a significant portion of the liabilities.  This additional contribution will allow the Company to begin the process of settling these liabilities through lump sum payments or the purchase of annuities.
 
The Company, also in the fourth quarter of 2017, made an additional contribution of $6.8 million to its U.K. defined benefit plan and will continue de-risking that plan.

During the fourth quarter of 2015, the Company partially settled obligations of certain of its defined benefit pension plans through lump sum payments to certain term-vested employees who were not currently receiving a monthly benefit. Term-vested employees whose future pension benefits were above an established threshold had the option to either accept the lump sum offer or continue to be entitled to their future monthly benefit. The impact of acceptance reduced the projected benefit obligation by $34.7 million and required cash payments from existing plan assets of $34.6 million.
During 2015, the Company settled obligations of a defined benefit plan associated with the Brampton, Ontario facility which was closed. The settlements resulted from lump sum payments to plan participants or the purchase of annuities.


Pension and Postretirement Expense

The pension and postretirement expenses related to the Company’s plans consisted of the following:

 
 
Pension Benefits
Postretirement Benefits
 
Year Ended December 31,
In millions
2017
2016
2015
2017
2016
2015
Components of Net Periodic Cost:
 
 
 
 
 
 
Service Cost
$
8.2

$
10.0

$
12.8

$
0.8

$
0.8

$
1.0

Interest Cost
42.6

43.8

54.8

1.3

1.3

1.7

Expected Return on Plan Assets
(64.1
)
(61.3
)
(74.4
)



Amortization:
 
 
 
 
 
 
   Prior Service Cost (Credit)
0.5

0.8

0.7

(0.3
)
(0.2
)
(0.3
)
   Actuarial Loss (Gain)
6.5

27.3

19.7

(2.1
)
(2.1
)
(1.6
)
  Net Curtailment/Settlement Loss

1.0

1.5




Other
0.8

0.8

0.9




Net Periodic (Benefit) Cost
$
(5.5
)
$
22.4

$
16.0

$
(0.3
)
$
(0.2
)
$
0.8



Certain assumptions used in determining the pension and postretirement expenses were as follows:

 
Pension Benefits
Postretirement Benefits
 
Year Ended December 31,
 
2017
2016
2015
2017
2016
2015
Weighted Average Assumptions:
 
 
 
 
 
 
Discount Rate
4.01
%
4.41
%
4.02
%
4.10
%
4.29
%
3.95
%
Rate of Increase in Future Compensation Levels
1.45
%
1.49
%
1.45
%



Expected Long-Term Rate of Return on Plan Assets
5.79
%
5.90
%
6.81
%



Initial Health Care Cost Trend Rate



7.45
%
7.80
%
7.38
%
Ultimate Health Care Cost Trend Rate



4.50
%
4.50
%
4.96
%
Ultimate Year



2024

2024

2036



For the largest plan, the actuarial loss is amortized over the average remaining life expectancy period of employees expected to receive benefits.

Funded Status

The following table sets forth the funded status of the Company’s pension and postretirement plans as of December 31:
 
Pension Benefits
Postretirement Benefits
In millions
2017
2016
2017
2016
Change in Benefit Obligation:
 
 
 
 
Benefit Obligation at Beginning of Year
$
1,279.0

$
1,239.0

$
40.6

$
40.8

Service Cost
8.2

10.0

0.8

0.8

Interest Cost
42.6

43.8

1.3

1.3

Actuarial Loss (Gain)
76.4

79.3

(3.4
)
(0.7
)
Foreign Currency Exchange
22.9

(36.0
)
0.1

0.1

Settlement/Curtailment (Gain)
(0.2
)
(3.8
)

0.3

Benefits Paid
(62.7
)
(58.4
)
(2.2
)
(2.1
)
Acquisition

4.1



Other
0.9

1.0

0.1

0.1

Benefit Obligation at End of Year
$
1,367.1

$
1,279.0

$
37.3

$
40.6

 
 
 
 
 
Change in Plan Assets:
 
 
 
 
Fair Value of Plan Assets at Beginning of Year
$
1,115.6

$
1,038.9

$

$

Actual Return on Plan Assets
147.1

116.3



Employer Contributions
119.1

51.4

2.2

2.1

Foreign Currency Exchange
21.6

(34.6
)


Benefits Paid
(62.7
)
(58.4
)
(2.2
)
(2.1
)
Acquisition

4.8



Settlements

(2.9
)


Other

0.1



Fair Value of Plan Assets at End of Year
$
1,340.7

$
1,115.6

$

$

Plan Assets Less than Projected Benefit Obligation
$
(26.4
)
$
(163.4
)
$
(37.3
)
$
(40.6
)
 
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheets Consist of:
 
 
 
 
Pension Assets
$
20.4

$
3.0

$

$

Accrued Pension and Postretirement Benefits Liability — Current
$
(1.7
)
$
(1.7
)
$
(2.4
)
$
(2.8
)
Accrued Pension and Postretirement Benefits Liability — Noncurrent
$
(45.1
)
$
(164.7
)
$
(34.9
)
$
(37.8
)
Accumulated Other Comprehensive Income:
 
 
 
 
Net Actuarial Loss (Gain)
$
267.1

$
277.8

$
(20.1
)
$
(18.7
)
Prior Service Cost (Credit)
$
0.7

$
1.3

$
(0.8
)
$
(1.1
)
Weighted Average Calculations:
 
 
 
 
Discount Rate
3.49
%
4.01
%
3.64
%
4.10
%
Rates of Increase in Future Compensation Levels
2.09
%
1.45
%


Initial Health Care Cost Trend Rate


9.00
%
7.45
%
Ultimate Health Care Cost Trend Rate


4.50
%
4.50
%
Ultimate Year


2027

2024




Accumulated Benefit Obligation

The accumulated benefit obligation, (“ABO”), for all defined benefit pension plans was $1,359.4 million and $1,270.0 million at December 31, 2017 and 2016, respectively. There are two plans where the ABO and projected benefit obligation ("PBO") exceed plan assets. The aggregate ABO, PBO and fair value of plan assets for these plans are $37.4 million, $38.2 million and $25.9 million, respectively.

Employer Contributions

The Company made contributions of $119.1 million and $51.4 million to its pension plans during 2017 and 2016, respectively. The Company also made postretirement health care benefit payments of $2.2 million and $2.1 million during 2017 and 2016, respectively. For 2018, the Company expects to make contributions of $10 to $15 million to its pension plans and approximately $3 million to its postretirement health care plans.

Pension Assets

The Company’s overall investment strategy is to achieve a mix of investments for long-term growth and near-term benefit payments through diversification of asset types, fund strategies and fund managers. Investment risk is measured on an on-going basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. The plans invest in the following major asset categories: cash, equity securities, fixed income securities, real estate and diversified growth funds. At December 31, 2017 and 2016, pension investments did not include any direct investments in the Company’s stock or the Company’s debt.

The weighted average allocation of plan assets and the target allocation by asset category is as follows:
 
Target
2017
2016
Cash
%
2.4
%
1.3
%
Equity Securities
46.6

11.2

40.0

Fixed Income Securities
53.4

82.7

53.9

Other Investments

3.7

4.8

Total
100.0
%
100.0
%
100.0
%


The plans’ investment in equity securities primarily includes investments in U.S. and international companies of varying sizes and industries. The strategy of these investments is to 1) exceed the return of an appropriate benchmark for such equity classes and 2) through diversification, reduce volatility while enhancing long term real growth.

The plans’ investment in fixed income securities includes government bonds, investment grade bonds and non-investment grade bonds across a broad and diverse issuer base. The strategy of these investments is to provide income and stability and to diversify the fixed income exposure of the plan assets, thereby reducing volatility.

The Company’s approach to developing the expected long-term rate of return on pension plan assets is based on fair values and combines an analysis of historical investment performance by asset class, the Company’s investment guidelines and current and expected economic fundamentals.

In 2016, the Company implemented a de-risking or liability driven investment strategy for its U.S. pension plans.  This strategy moved assets from return seeking (equities) to investments that mirror the underlying benefit obligations (fixed income).  The allocation of equities and fixed income changed from 45% and 55% at December 31, 2016, to 10% and 90% at December 31, 2017. 


The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2017 and 2016:

 
Fair Value Measurements at December 31, 2017
 
 
 
 
In millions
 
 
 
 
Total    
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Asset Category:
 
 
 
 
Cash (a)
$
32.2

$
0.3

$
31.9

$

Equity Securities:
 
 
 
 
Domestic (a)
140.5

4.1

136.4


Foreign (a)
9.1

5.8

3.3


Fixed Income Securities (a)
1,108.6

16.1

1,092.5


Other Investments:
 
 
 
 
Real estate
10.4

9.6


0.8

Diversified growth fund (b)
39.9


39.9


Total
$
1,340.7

$
35.9

$
1,304.0

$
0.8



 
Fair Value Measurements at December 31, 2016
In millions
Total
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Asset Category:
 
 
 
 
Cash (a)
$
14.5

$
0.3

$
14.2

$

Equity Securities:
 
 
 
 
Domestic (a)
340.2

68.7

271.5


Foreign (a)
107.0

55.5

51.5


Fixed Income Securities (a)
600.8

194.6

406.2


Other Investments:
 
 
 
 
Real estate
14.8

14.8



Diversified growth fund (b)
38.3


38.3


Total
$
1,115.6

$
333.9

$
781.7

$

(a) 
The Level 2 investments are held in pooled funds and fair value is determined by net asset value, based on the underlying investments, as reported on the valuation date.
(b) 
The fund invests in a combination of traditional investments (equities, bonds, and foreign exchange), seeking to achieve returns through active asset allocation over a three to five year horizon.

A reconciliation of fair value measurements of plan assets using significant unobservable inputs (Level 3) is as follows:

 
 
In millions
2017
2016
Balance at January 1,
$

$
35.9

Transfers (Out) In
0.8

(35.9
)
Return on Assets Held at December 31


Balance at December 31,
$
0.8

$




Postretirement Health Care Trend Rate Sensitivity

Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects on 2017 data:

 
One Percentage Point
In millions
Increase
Decrease
Health Care Cost Trend Rate Sensitivity:
 
 
Effect on Total Interest and Service Cost Components
$
0.1

$
(0.1
)
Effect on Year-End Postretirement Benefit Obligation
$
1.9

$
(1.6
)


Estimated Future Benefit Payments

The following represents the Company’s estimated future pension and postretirement health care benefit payments through the year 2027:

In millions
Pension Plans
Postretirement Health Care Benefits
2018
$
67.1

$
2.4

2019
69.1

2.4

2020
71.7

2.7

2021
74.4

2.7

2022
76.7

2.9

2023— 2027
405.2

13.4



Amounts in Accumulated Other Comprehensive Loss Expected to Be Recognized in Net Periodic Benefit Costs in 2018

During 2018, amounts recorded in Accumulated Other Comprehensive Loss expected to be recognized in Net Periodic Benefit Costs are as follows:

 
 
In millions
Pension Benefits
Postretirement Health Care Benefits
Recognition of Prior Service Cost
$
0.4

$
(0.3
)
Recognition of Actuarial Loss (Gain)
5.6

(1.8
)



Multi-Employer Plans

Certain of the Company’s employees participate in multi-employer plans that provide both pension and other postretirement health care benefits to employees under union-employer organization agreements. Expense related to ongoing participation in these plans for the years ended December 31, 2017 and 2016 was $2.3 million and $2.7 million, respectively.

Estimated liabilities have been established related to the partial or complete withdrawal from certain multi-employment benefit plans for facilities which have been closed. At December 31, 2017, and December 31, 2016, the Company has $29.0 million and $30.4 million, respectively, recorded in Other Noncurrent Liabilities for these withdrawal liabilities which represents the Company's best estimate of the expected withdrawal liability.

The Company's remaining participation in multi-employer pension plans consists of contributions to three plans under the terms contained in collective bargaining agreements. The risks of participating in these multi-employer plans are different from single-employer plans in the following ways:

a.
Assets contributed to the multi-employers plan by one employer may be used to provide benefits to employees of other participating employers.
b.
If a participating employer stops contributing to the plan, the unfunded obligation of the plan may be borne by the remaining participating employers.
c.
If a company chooses to stop participating in a multi-employer plan, a company may be required to pay that plan an amount based on the underfunded status of the plan, referred to as the withdrawal liability.

The Company's participation in these plans for the year ended December 31, 2017, 2016 and 2015 is shown in the table below:
 
 
Pension Protection Act Zone Status
 
Company Contributions (in millions)
 
 
Multi-employer Pension Fund
EIN/Pension Plan Number
2017
2016
FIP/RP Status Implemented
2017
2016
2015
Surcharge Imposed
Expiration Date of Bargaining Agreement
Central States Southeast and Southwest Areas Pension Fund
36-6044243/001
Red
Red
Yes
$
0.1

$
0.1

$
0.1

Yes
7/31/2018
PACE Industry Union - Management Pension Fund(a)
11-6166763/001
Red
Red
Yes
0.1

0.1


Yes
6/15/2018
Western Conference of Teamsters Pension Trust - Northwest Area(b)
91-6145047/001
Green
Green
No


0.1

No
4/30/2017
Graphic Communications Conference of International Brotherhood of Teamster Pension Fund(a)
52-6118568/001
Red
Red
Yes
0.3

0.2


Yes
5/01/2019
Total
 
 
 
 
$
0.5

$
0.4

$
0.2

 
 

(a) In 2016, the WG Anderson acquisition included facilities with these plans.
(b) The facility associated with this plan was closed in 2016.
   
The EIN Number column provides the Employer Identification Number (EIN). Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2017 and 2016 is for the plan's year-end at December 31, 2016 and December 31, 2015, respectively. The zone status is based on information that the Company receives from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Implemented" column indicates plans for which a Financial Improvement Plan (FIP) or Rehabilitation Plan (RP) has been implemented. The Company's share of the contributions to these plans did not exceed 5% of total plan contributions for the most recent plan year.

DEFINED CONTRIBUTION PLANS

The Company provides defined contribution plans for certain eligible employees. The Company’s contributions to the plans are based upon employee contributions, a percentage of eligible compensation, and the Company’s annual operating results. Contributions to these plans for the years ended December 31, 2017, 2016 and 2015 were $37.7 million, $34.7 million and $29.0 million, respectively.
Income Taxes
Income Taxes
INCOME TAXES

The U.S. and international components of Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following:
 
Year Ended December 31,
In millions
2017
2016
2015
U.S.
$
227.5

$
290.0

$
307.6

International
25.5

29.4

51.7

Income before Income Taxes and Equity Income of Unconsolidated Entity
$
253.0

$
319.4

$
359.3



The provisions for Income Tax Benefit (Expense) on Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following:
 
Year Ended December 31,
In millions
2017
2016
2015
Current Benefit (Expense):
 
 
 
U.S.
$
0.7

$
(5.1
)
$
(7.9
)
International
(9.2
)
(11.4
)
(12.5
)
Total Current
$
(8.5
)
$
(16.5
)
$
(20.4
)
 
 
 
 
Deferred Benefit (Expense):
 
 
 
U.S.
51.0

(78.8
)
(110.6
)
International
3.0

2.1

0.6

Total Deferred
$
54.0

$
(76.7
)
$
(110.0
)
Income Tax Benefit (Expense)
$
45.5

$
(93.2
)
$
(130.4
)


A reconciliation of Income Tax (Expense) Benefit on Income before Income Taxes and Equity Income of Unconsolidated Entity at the federal statutory rate of 35% compared with the Company’s actual Income Tax (Expense) Benefit is as follows:
 
Year Ended December 31,
In millions
2017
Percent
 
2016
Percent
 
2015
Percent
Income Tax Expense at U.S. Statutory Rate
$
(88.5
)
35.0
 %
 
$
(111.8
)
35.0
 %
 
$
(125.8
)
35.0
 %
U.S. State and Local Tax Expense
(8.7
)
3.4

 
(10.0
)
3.2

 
(11.4
)
3.2

IRS Agreement


 
22.8

(7.2
)
 


Permanent Items
(2.7
)
1.0

 
(1.3
)
0.5

 
1.7

(0.5
)
U.S. Tax Reform
138.0

(54.5
)
 


 


Change in Valuation Allowance due to Tax Reform
(2.0
)
0.8

 


 


Change in Valuation Allowance
(3.5
)
1.4

 
0.5

(0.2
)
 
1.8

(0.5
)
International Tax Rate Differences
3.2

(1.3
)
 
1.8

(0.6
)
 
2.4

(0.7
)
Foreign Withholding Tax
(0.4
)
0.2

 
(0.2
)
0.1

 
(0.2
)
0.1

Change in Tax Rates
(3.0
)
1.2

 
0.2

(0.1
)
 
1.0

(0.3
)
U.S. Federal & State Tax Credits
10.2

(4.0
)
 
3.5

(1.1
)
 
5.5

(1.5
)
Uncertain Tax Positions
(0.3
)
0.1

 
1.2

(0.4
)
 
(3.7
)
1.0

Other
3.2

(1.3
)
 
0.1


 
(1.7
)
0.5

Income Tax Benefit (Expense)
$
45.5

(18.0
)%
 
$
(93.2
)
29.2
 %
 
$
(130.4
)
36.3
 %



U.S. Tax Reform

The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to record/pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. The Company recognized a provisional net tax benefit of $136.0 million, which is included as a component of income tax expense from continuing operations.

Provisional Amounts

Deferred tax assets and liabilities: The Company remeasured certain deferred tax assets and liabilities based on the federal rate at which they are expected to reverse in the future, which is generally 21%. The Company also remeasured the state rate at which certain deferred tax assets and liabilities are expected to reverse in the future associated with the reduction in the future federal benefit from state deferred tax assets and liabilities from 35% to 21%. However, the Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of the Company's deferred tax balance was a tax benefit of $156.3 million, including the remeasurement of its federal valuation allowance.

Foreign tax effects: The one-time transition tax is based on the Company's total post-1986 earnings and profits ("E&P") that were previously deferred from U.S. income taxes. The Company recorded a provisional amount for the one-time transition tax liability for all of its foreign subsidiaries resulting in an increase in income tax expense of $20.5 million. The Company has not yet completed its calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based, in part, on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets.

The Company has not provided for any additional outside basis difference inherent in its foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any additional outside basis difference in these entities is not practicable. In addition, the Company is still evaluating the impact of the one-time transition tax on the outside basis differences and cumulative temporary differences inherent in these subsidiaries as of December 31, 2017 and as a result, it is not practicable to provide the amount of any cumulative temporary differences related to unrecorded differences. The Company has adjusted the existing deferred tax liability it previously recorded associated with the Company's equity investment in the joint venture, Rengo Riverwood Packaging, Ltd. resulting in a provisional income tax benefit of $1.7 million. The remaining deferred tax liability recorded relates to future withholding tax expense attributable to the remaining outside basis difference.

The Company has not yet made a policy election with respect to its treatment of potential global intangible low-taxed income (“GILTI”). Companies can either account for taxes on GILTI as incurred or recognize deferred taxes when basis differences exist that are expected to affect the amount of the GILTI inclusion upon reversal. The Company is still in the process of analyzing the provisions of the Act associated with GILTI and the expected impact of GILTI on the Company in the future.

State tax effects: As noted above, the Company remeasured certain deferred tax assets and liabilities to account for the reduction in the future federal benefit from state deferred tax assets and liabilities. In addition, the Company reassessed its previous determination of the realizability of certain state deferred tax assets based on whether or not the state’s currently enacted legislation adopts the changes made by the Act. As a result of a reduction in projected future taxable income associated with certain state’s adoption of federal tax reform, the Company has increased its valuation allowance against certain state deferred tax assets resulting in expense of $0.9 million.

Other Federal effects: As a result of the Act, the corporate alternative minimum tax ("AMT") was repealed. In addition, taxpayers with AMT credit carryovers in excess of their regular tax liability may have the credits refunded over multiple years from 2018 to 2022. However, AMT transactions, including refunds, are subject to sequestration by the Office of Management Budget. As a result, the Company has reclassed its AMT credit carryforward to a non-current federal income tax receivable and reduced the estimated refund to account for the effects of the sequester. This provisional adjustment resulted in additional tax expense of $0.6 million.

Other Effective Tax Rate Differences    

During 2017, the Company claimed U.S. federal and state tax credits associated with various investments made by the Company in previous years, in addition to claiming U.S. federal and state research and development ("R&D") tax credits. The Company claimed U.S. federal R&D and investment tax credits of $5.2 million, excluding reductions for uncertain tax positions, and U.S. state R&D and investment tax credits of $5.0 million. Of the total state tax credits claimed in 2017, $4.3 million was reduced for uncertain tax positions or by a valuation allowance.

During the second quarter of 2016, the Company executed an agreement with the Internal Revenue Service related to certain elections made on its 2011 and 2012 tax returns. As a result of the agreement, the Company has amended its 2011 and 2012 U.S. federal and state income tax returns resulting in the utilization of previously expired net operating loss carryforwards. The Company recorded a discrete benefit during the second quarter of 2016 of $22.4 million to reflect the federal and state impact of the amended returns as a reduction in its net long-term deferred tax liability.
    
The tax effects of differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of December 31 were as follows:

In millions
2017
2016
Deferred Income Tax Assets:
 
 
Compensation Based Accruals
$
16.5

$
20.1

Net Operating Loss Carryforwards
114.9

165.3

Postretirement Benefits
25.6

88.0

Tax Credits
17.6

35.3

Other
45.9

55.4

Valuation Allowance
(51.5
)
(45.5
)
Total Deferred Income Tax Assets
$
169.0

$
318.6

Deferred Income Tax Liabilities:
 
 
Property, Plant and Equipment
(219.8
)
(334.6
)
Goodwill
(192.0
)
(284.5
)
Other Intangibles
(68.7
)
(99.6
)
Other
(3.5
)
(4.7
)
Net Noncurrent Deferred Income Tax Liabilities
$
(484.0
)
$
(723.4
)
Net Deferred Income Tax Liability
$
(315.0
)
$
(404.8
)


The Company has total deferred income tax assets, excluding valuation allowance, of $220.5 million and $364.1 million as of December 31, 2017 and 2016, respectively. The Company has total deferred income tax liabilities of $484.0 million and $723.4 million as of December 31, 2017 and 2016, respectively.
According to the Income Taxes topic of the FASB Codification, a valuation allowance is required to be established or maintained when, based on currently available information and other factors, it is more likely than not that all or a portion of a deferred tax asset will not be realized. The FASB Codification provides important factors in determining whether a deferred tax asset will be realized, including whether there has been sufficient pretax income in recent years and whether sufficient income can reasonably be expected in future years in order to utilize the deferred tax asset. The Company has evaluated the need to maintain a valuation allowance for deferred tax assets based on its assessment of whether it is more likely than not that deferred tax assets will be realized through the generation of future taxable income. Appropriate consideration was given to all available evidence, both positive and negative, in assessing the need for a valuation allowance.
The Company reviewed its deferred income tax assets as of December 31, 2017 and 2016, respectively, and determined that it is more likely than not that a portion will not be realized. A valuation allowance of $51.5 million and $45.5 million at December 31, 2017 and 2016, respectively, is maintained on the deferred income tax assets for which the Company has determined that realization is not more likely than not. Of the total valuation allowance at December 31, 2017, $31.3 million relates to net deferred tax assets in certain foreign jurisdictions, $3.3 million relates to a deferred tax asset related to a U.S. federal capital loss carryforward, $11.9 million relates to tax credit carryforwards in certain states, and the remaining $5.0 million relates to net operating losses and other deferred tax assets in certain U.S. states. The need for a valuation allowance is made on a jurisdiction-by-jurisdiction basis. As of December 31, 2017, the Company concluded that due to cumulative pretax losses and the lack of sufficient future taxable income of the appropriate character, realization is less than more likely than not on the net deferred income tax assets related primarily to the Company’s Brazil, China, France and Germany operations as well as the Company's previously discontinued Canadian operations.

The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years ended December 31, 2017, 2016, and 2015, respectively:

 
December 31,
In millions
2017
2016
2015
Balance Beginning of Period
$
45.5

$
44.8

$
53.6

Charges to Costs and Expenses
5.5

1.2


Additions (Deductions)
0.5

(0.5
)
(8.8
)
Balance at End of Period
$
51.5

$
45.5

$
44.8



The U.S. federal net operating loss carryforwards expire as follows:

In millions
 
2024
$
84.0

2026
22.9

2027
93.0

2028
12.1

2029
114.6

Total
$
326.6



The Company adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) during the first quarter of 2017 and recorded additional federal and state net operating losses of approximately $107 million that were generated through excess tax benefit deductions claimed on the Company’s 2011-2016 U.S. federal income tax returns and were previously prohibited from being recognized. The Company recognized the cumulative federal and state income tax effects of these previously unrecognized net operating losses in accumulated deficit in accordance with ASU 2016-09.
U.S. state net operating loss carryforward amounts total $243.9 million and expire in various years through 2037.

International net operating loss carryforward amounts total $117.8 million, of which substantially all have no expiration date.

Tax Credit carryforwards total $17.6 million which expire in various years from 2019 through 2037.

Uncertain Tax Positions

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

In millions
2017
2016
Balance at January 1,
$
10.1

$
9.1

Additions for Tax Positions of Current Year
0.6

1.5

Additions for Tax Positions of Prior Years
0.7

1.1

Reductions for Tax Positions of Prior Years
(0.9
)
(1.6
)
Balance at December 31,
$
10.5

$
10.1



At December 31, 2017, $10.5 million of the total gross unrecognized tax benefits, if recognized, would affect the annual effective income tax rate.

The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within its global operations in Income Tax Expense. The Company had an accrual for the payment of interest and penalties of $0.1 million and $0.1 million at December 31, 2017 and 2016, respectively.

The Company anticipates that $0.1 million of the total unrecognized tax benefits at December 31, 2017 could change within the next 12 months.

The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local tax examinations for years before 2014 or non-U.S. income tax examinations for years before 2008.
Financial Instruments, Derivatives and Hedging Activities
Financial Instruments, Derivatives and Hedging Activities
FINANCIAL INSTRUMENTS, DERIVATIVES AND HEDGING ACTIVITIES


The Company enters into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments under the Derivatives and Hedging topic of the FASB Codification and those not designated as hedging instruments under this guidance. The Company uses interest rate swaps, natural gas swaps, and forward foreign exchange contracts. These derivative instruments are designated as cash flow hedges and, to the extent they are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in Accumulated Other Comprehensive Loss. These changes in fair value will subsequently be reclassified to earnings, contemporaneously with and offsetting changes in the related hedged exposure.

Interest Rate Risk

The Company uses interest rate swaps to manage interest rate risks on future interest payments caused by interest rate changes on its variable rate term loan facility. These changes in fair value will subsequently be reclassified into earnings as a component of Interest Expense, Net as interest is incurred on amounts outstanding under the term loan facility.

The following table summarizes the Company's current interest rate swap positions for each period presented as of December 31, 2017:

Start
End
(In Millions) 
Notional Amount
Weighted Average Interest Rate
12/01/2017
10/01/2018
$250.0
1.16%



These derivative instruments are designated as cash flow hedges and, to the extent they are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in Accumulated Other Comprehensive Income (Loss). Ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs. During 2017 and 2016, there were no amounts of ineffectiveness. During 2017 and 2016, there were no amounts excluded from the measure of effectiveness.

Commodity Risk

To manage risks associated with future variability in cash flows and price risk attributable to certain commodity purchases, the Company enters into natural gas swaps to hedge prices for a designated percentage of its expected natural gas usage. The Company has hedged a portion of its expected usage for 2018. Such contracts are designated as cash flow hedges. The contracts are carried at fair value with changes in fair value recognized in Accumulated Other Comprehensive Income (Loss), and the resulting gain or loss is reclassified into Cost of Sales concurrently with the recognition of the commodity purchased. The ineffective portion of the swap contract’s change in fair value, if any, would be recognized immediately in earnings.

During 2017 and 2016, there were minimal amounts of ineffectiveness related to changes in the fair value of natural gas swap contracts. Additionally, there were no amounts excluded from the measure of effectiveness.

Foreign Currency Risk

The Company enters into forward foreign exchange contracts, designated as cash flow hedges, to manage risks associated with foreign currency transactions and future variability of cash flows arising from those transactions that may be adversely affected by changes in exchange rates. The contracts are carried at fair value with changes in fair value recognized in Accumulated Other Comprehensive Loss and gains/losses related to these contracts are recognized in Other Expense (Income), Net or Net Sales, when appropriate.

At December 31, 2017 and 2016, multiple forward exchange contracts existed that expire on various dates throughout the following year. Those purchased forward exchange contracts outstanding at December 31, 2017 and 2016, when aggregated and measured in U.S. dollars at contractual rates at December 31, 2017 and 2016, had notional amounts totaling $66.1 million and $55.9 million, respectively. 

No amounts were reclassified to earnings during 2017 and 2016 in connection with forecasted transactions that were no longer considered probable of occurring and there was no amount of ineffectiveness related to changes in the fair value of foreign currency forward contracts. Additionally, there were no amounts excluded from the measure of effectiveness during 2017 and 2016.

Derivatives not Designated as Hedges

The Company enters into forward foreign exchange contracts to effectively hedge substantially all of accounts receivable resulting from transactions denominated in foreign currencies in order to manage risks associated with foreign currency transactions adversely affected by changes in exchange rates. At December 31, 2017 and 2016, multiple foreign currency forward exchange contracts existed, with maturities ranging up to three months. Those foreign currency exchange contracts outstanding at December 31, 2017 and 2016, when aggregated and measured in U.S. dollars at exchange rates at December 31, 2017 and 2016, respectively, had net notional amounts totaling $90.1 million and $68.1 million. Unrealized gains and losses resulting from these contracts are recognized in Other Expense (Income), Net and approximately offset corresponding recognized but unrealized gains and losses on these accounts receivable.

Foreign Currency Movement Effect

For the year ended December 31, 2017 and 2016, net currency exchange losses included in determining Income from Operations were $3.1 million and $4.8 million, respectively. For the year ended December 31, 2015, net currency exchange gains included in determining Income from Operations was $4.7 million.
Fair Value Measurement
Fair Value Measurement
FAIR VALUE MEASUREMENT
The Company follows the fair value guidance integrated into the Fair Value Measurements and Disclosures topic of the FASB Codification in regards to financial and nonfinancial assets and liabilities. Nonfinancial assets and nonfinancial liabilities include those measured at fair value in goodwill impairment testing, asset retirement obligations initially measured at fair value, and those assets and liabilities initially measured at fair value in a business combination.

The FASB’s guidance defines fair value, establishes a framework for measuring fair value and expands the fair value disclosure requirements. The accounting guidance applies to accounting pronouncements that require or permit fair value measurements. It indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The guidance defines fair value based upon an exit price model, whereby fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance clarifies that fair value should be based on assumptions that market participants would use, including a consideration of non-performance risk.

Valuation Hierarchy

The Fair Value Measurements and Disclosures topic establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1 inputs — quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs — quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 inputs — unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The Company has determined that its financial assets and financial liabilities include derivative instruments which are carried at fair value and are valued using Level 2 inputs in the fair value hierarchy. The Company uses valuation techniques based on discounted cash flow analyses, which reflects the terms of the derivatives and uses observable market-based inputs, including forward rates and uses market price quotations obtained from independent derivatives brokers, corroborated with information obtained from independent pricing service providers.

Fair Value of Financial Instruments

As of December 31, 2017 and 2016, the Company had a gross derivative liability of $1.2 million and $0.8 million respectively, and a gross derivative asset of $1.2 million and $7.7 million respectively, related to interest rate, foreign currency and commodity contracts.

As of December 31, 2017, there has not been any significant impact to the fair value of the Company’s derivative liabilities due to its own credit risk. Similarly, there has not been any significant adverse impact to the Company’s derivative assets based on evaluation of the Company’s counterparties’ credit risks.

The fair values of the Company’s other financial assets and liabilities at December 31, 2017 and 2016 approximately equal the carrying values reported on the Consolidated Balance Sheets except for Long-Term Debt. The fair value of the Company’s Long-Term Debt (excluding capital leases and deferred financing fees) was $2,299.1 million and $2,132.7 million, as compared to the carrying amounts of $2,247.9 million and $2,112.8 million. The fair value of the Company's Long-Term Debt, including the Senior Notes, are based on quoted market prices (Level 2 inputs). Level 2 valuation techniques for Long-Term Debt are based on quotations obtained from independent pricing service providers.

Effect of Derivative Instruments

The pre-tax effect of derivative instruments in cash flow hedging relationships on the Company’s Consolidated Statements of Operations for the year ended December 31, 2017 and 2016 is as follows:

 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
 
Location in Statement of Operations (Effective Portion)
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
 
Location in Statement of Operations (Ineffective Portion)
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
 
Year Ended December 31,
 
Year Ended December 31,
 
Year Ended December 31,
In millions
2017
2016
 
2017
2016
 
2017
2016
Commodity Contracts
$
3.6

$
(5.0
)
 
Cost of Sales
$
(1.2
)
$
12.5

 
Cost of Sales
$
(0.1
)
$
(0.1
)
Foreign Currency Contracts
3.1

(1.4
)
 
Other Income, Net
(0.3
)
0.5

 
Other Income, Net


Interest Rate Swap Agreements
(1.0
)
0.4

 
Interest Expense, Net
(0.6
)
2.0

 
Interest Expense, Net


Total
$
5.7

$
(6.0
)
 
 
$
(2.1
)
$
15.0

 
 
$
(0.1
)
$
(0.1
)

The effect of derivative instruments not designated as hedging instruments on the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 is as follows:

In millions
 
2017
2016
Foreign Currency Contracts
Other Expense, Net
$
9.7

$
3.3



Accumulated Derivative Instruments Income (Loss)

The following is a rollforward of pre-tax Accumulated Derivative Instruments Income (Loss) which is included in the Company’s Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity as of December 31:

In millions
2017
2016
2015
Balance at January 1
$
7.5

$
(13.5
)
$
(12.5
)
Reclassification to earnings
(2.1
)
15.0

11.7

Current period change in fair value
(5.7
)
6.0

(12.7
)
Balance at December 31
$
(0.3
)
$
7.5

$
(13.5
)


At December 31, 2017, the Company expects to reclassify $0.2 million of pre-tax gains in the next twelve months from Accumulated Other Comprehensive (Loss) Income to earnings, contemporaneously with and offsetting changes in the related hedged exposure. The actual amount that will be reclassified to future earnings may vary from this amount as a result of changes in market conditions.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The components of Accumulated Other Comprehensive (Loss) Income are as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
In millions
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
Derivative Instruments (Loss) Gain
$
(7.8
)
$
2.9

$
(4.9
)
 
$
21.0

$
(8.0
)
$
13.0

 
$
(1.0
)
$
0.3

$
(0.7
)
Pension and Postretirement Benefit Plans
12.3

(3.5
)
8.8

 
7.9

(3.9
)
4.0

 
40.0

(13.2
)
26.8

Currency Translation Adjustment
44.9


44.9

 
(58.9
)

(58.9
)
 
(37.2
)

(37.2
)
Other Comprehensive Income (Loss)
$
49.4

$
(0.6
)
$
48.8

 
$
(30.0
)
$
(11.9
)
$
(41.9
)
 
$
1.8

$
(12.9
)
$
(11.1
)


The balances of Accumulated Other Comprehensive Loss, net of applicable taxes are as follows:
 
December 31,
In millions
2017
2016
Accumulated Derivative Instruments Loss
$
(10.3
)
$
(5.4
)
Pension and Postretirement Benefit Plans
(226.7
)
(235.5
)
Currency Translation Adjustment
(101.8
)
(146.7
)
Accumulated Other Comprehensive Loss
$
(338.8
)
$
(387.6
)
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following represents changes in Accumulated Other Comprehensive (Loss) Income by component for the year ended December 31, 2017 (a):
In millions
Derivatives Instruments
Pension Benefit Plans
Postretirement Benefit Plans
Currency Translation Adjustments
Total
Balance at December 31, 2016
$
(5.4
)
$
(250.2
)
$
14.7

$
(146.7
)
$
(387.6
)
Other Comprehensive (Loss) Income before Reclassifications
(3.6
)
3.3

2.6

44.9

47.2

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (b)
(1.3
)
4.4

(1.5
)

1.6

Net Current-period Other Comprehensive (Loss) Income
(4.9
)
7.7

1.1

44.9

48.8

Balance at December 31, 2017
$
(10.3
)
$
(242.5
)
$
15.8

$
(101.8
)
$
(338.8
)

(a) 
All amounts are net-of-tax.
(b) See following table for details about these reclassifications.

The following represents reclassifications out of Accumulated Other Comprehensive Income for the year ended December 31, 2017:

In millions
 
 
 
 
Details about Accumulated Other Comprehensive Income Components
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Affected Line Item in the Statement Where Net Income is Presented
Derivatives Instruments:
 
 
 
 
Commodity Contracts
 
$
(1.2
)
 
Cost of Sales
Foreign Currency Contracts
 
(0.3
)
 
Other Expense, Net
Interest Rate Swap Agreements
 
(0.6
)
 
Interest Expense, Net
 
 
(2.1
)
 
Total before Tax
 
 
0.8

 
Tax Expense
 
 
$
(1.3
)
 
Net of Tax
 
 
 
 
 
Amortization of Defined Benefit Pension Plans:
 
 
 
 
Prior Service Costs
 
$
0.5

(c) 
 
Actuarial Losses
 
6.5

(c) 
 
 
 
7.0

 
Total before Tax
 
 
(2.6
)
 
Tax Benefit
 
 
$
4.4

 
Net of Tax
 
 
 
 
 
Amortization of Postretirement Benefit Plans:
 
 
 
 
Prior Service Credits
 
$
(0.3
)
(c) 
 
Actuarial Gains
 
(2.1
)
(c) 
 
 
 
(2.4
)
 
Total before Tax
 
 
0.9

 
Tax Expense
 
 
$
(1.5
)
 
Net of Tax
 
 
 
 
 
Total Reclassifications for the Period
 
$
1.6

 
 
 

(c) 
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7 — Pensions and Other Postretirement Benefits).
Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
The Company leases certain warehouses, operating facilities, office space, data processing equipment and plant equipment under long-term, non-cancelable contracts that expire at various dates (some of these leases are subject to renewal options and contain escalation clauses). Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) and the future minimum lease payments at December 31, 2017, are as follows:
 
 
 
In millions
Capital Leases
Operating Leases
Total
2018
$
3.7

$
42.9

$
46.6

2019
3.4

32.8

36.2

2020
3.4

27.7

31.1

2021
3.3

22.5

25.8

2022
2.8

19.2

22.0

Thereafter
24.5

26.3

50.8

Total Minimum Lease Payments
41.1

171.4

212.5

Less: Amount Representing Interest
(11.1
)

(11.1
)
Present Value of Net Minimum Leases
$
30.0

$
171.4

$
201.4



Total rental expense was approximately $38 million, $35 million, and $29 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The Company has entered into other long-term contracts principally for the purchase of fiber and chip processing. The minimum purchase commitments extend beyond 2022. At December 31, 2017, total commitments under these contracts were as follows:

In millions
 
2018
$
151.8

2019
86.4

2020
43.0

2021
37.9

2022
38.0

Thereafter
310.6

Total
$
667.7

Business Segment and Geographic Area Information
Business Segment and Geographic Area Information
BUSINESS SEGMENT AND GEOGRAPHIC AREA INFORMATION


Effective January 5, 2017, the consumer product and beverage operating segments (previously aggregated into the Americas Paperboard Packaging reportable segment) were reorganized and combined into an Americas Converting operating segment (Americas Paperboard Packaging reportable segment). As part of this reorganization, Australia, which was previously included as part of the Americas Paperboard Packaging reportable segment, is now an operating segment and included in Corporate/Other/Elimination. Prior periods have been recast.

The Company has three reportable segments as follows:

Paperboard Mills includes the six North American paperboard mills which produce primarily CUK and CRB. The majority of the paperboard is consumed internally to produce paperboard packaging for the Americas and Europe Paperboard Packaging segments. The remaining paperboard is sold externally to a wide variety of paperboard packaging converters and brokers. The Paperboard Mills segment Net Sales represent the sale of paperboard only to external customers. The effect of intercompany transfers to the paperboard packaging segments has been eliminated from the Paperboard Mills segment to reflect the economics of the integration of these segments.
     
Americas Paperboard Packaging includes paperboard packaging folding cartons sold primarily to Consumer Packaged Goods ("CPG") companies serving the food, beverage, and consumer product markets in the Americas.

Europe Paperboard Packaging includes paperboard packaging folding cartons sold primarily to CPG companies serving the food, beverage and consumer product markets in Europe.
     
The Company allocates certain mill and corporate costs to the reportable segments to appropriately represent the economics of these segments. The Corporate and Other caption includes the Pacific Rim and Australia operating segments and unallocated corporate and one-time costs.

These segments are evaluated by the chief operating decision maker based primarily on Income from Operations as adjusted for depreciation and amortization. The accounting policies of the reportable segments are the same as those described above in Note 1 - Nature of Business and Summary of Significant Accounting Policies.
The Company did not have any one customer who accounted for 10% or more of the Company’s net sales during 2017, 2016 or 2015.
Business segment information is as follows:
 
Year Ended December 31,
In millions
2017
2016
2015
NET SALES:
 
 
 
Paperboard Mills
$
399.7

$
394.7

$
480.5

Americas Paperboard Packaging
3,243.6

3,193.1

3,012.1

Europe Paperboard Packaging
593.1

569.9

603.9

Corporate/Other/Eliminations
167.3

140.4

63.7

Total
$
4,403.7

$
4,298.1

$
4,160.2

 
 
 
 
INCOME (LOSS) FROM OPERATIONS:
 
 
 
Paperboard Mills(a)
$
(35.0
)
$
(3.7
)
$
17.1

Americas Paperboard Packaging
358.2

409.0

395.2

Europe Paperboard Packaging
37.3

25.4

40.8

Corporate and Other(b)
(17.8
)
(34.7
)
(26.0
)
Total
$
342.7

$
396.0

$
427.1

 
 
 
 
CAPITAL EXPENDITURES:
 
 
 
Paperboard Mills
$
111.4

$
184.2

$
145.0

Americas Paperboard Packaging
98.8

45.9

49.7

Europe Paperboard Packaging
17.3

37.1

39.9

Corporate and Other
32.6

27.4

9.5

Total
$
260.1

$
294.6

$
244.1

 
 
 
 
DEPRECIATION AND AMORTIZATION:
 
 
 
Paperboard Mills
$
143.7

$
120.3

$
124.7

Americas Paperboard Packaging
125.3

124.7

107.3

Europe Paperboard Packaging
42.1

41.1

40.1

Corporate and Other
19.2

13.2

8.4

Total
$
330.3

$
299.3

$
280.5

(a) 
Includes accelerated depreciation related to shutdown of Santa Clara in 2017.
(b) 
Includes expenses related to acquisitions, integration activities and shutdown costs (excluding accelerated depreciation).


 
December 31,
In millions
2017
2016
2015
ASSETS AT DECEMBER 31:
 
 
 
Paperboard Mills
$
1,487.0

$
1,496.1

$
1,445.0

Americas Paperboard Packaging
2,478.7

2,419.8

2,157.1

Europe Paperboard Packaging
607.1

491.9

574.0

Corporate and Other
290.2

195.6

80.0

Total
$
4,863.0

$
4,603.4

$
4,256.1




Business geographic area information is as follows:
 
Year Ended December 31,
In millions
2017
2016
2015
NET SALES:
 
 
 
Americas(a)
$
3,643.3

$
3,601.7

$
3,492.6

Europe
593.1

569.9

603.9

Asia Pacific
215.7

198.1

117.4

Corporate and Other
(48.4
)
(71.6
)
(53.7
)
Total
$
4,403.7

$
4,298.1

$
4,160.2


In millions
2017
2016
2015
ASSETS AT DECEMBER 31:
 
 
 
Americas(a)
$
4,046.4

$
3,923.2

$
3,590.4

Europe
607.1

491.9

574.0

Asia Pacific
209.5

188.3

91.7

Total
$
4,863.0

$
4,603.4

$
4,256.1


(a) Includes North America and Brazil.
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Results of operations for the four quarters of 2017 and 2016 are shown below.

 
2017
In millions, except per share amounts
First
Second
Third
Fourth
Total
Statement of Operations Data:
 
 
 
 
 
Net Sales
$
1,061.5

$
1,094.7

$
1,137.6

$
1,109.9

$
4,403.7

Gross Profit
175.0

176.9

191.6

176.0

719.5

Business Combinations and Shutdown and Other Special Charges, Net
8.6

6.1

3.6

12.8

31.1

Income from Operations
75.5

87.6

95.4

84.2

342.7

Net Income
37.0

42.0

47.3

173.9

300.2

Net Income Per Share — Basic
$
0.12

$
0.14

$
0.15

$
0.56

$
0.97

Net Income Per Share — Diluted(a)
$
0.12

$
0.14

$
0.15

$
0.56

$
0.96

(a) Does not cross foot due to rounding

 
2016
In millions, except per share amounts
First
Second
Third
Fourth
Total
Statement of Operations Data:
 
 
 
 
 
Net Sales
$
1,034.0

$
1,103.2

$
1,103.7

$
1,057.2

$
4,298.1

Gross Profit
207.7

204.8

191.3

188.1

791.9

Business Combinations and Shutdown and Other Special Charges, Net
10.5

5.3

7.4

13.9

37.1

Income from Operations
107.2

105.6

105.1

78.1

396.0

Net Income
57.5

77.8

57.8

34.9

228.0

 
 
 
 
 
 
Net Income Per Share — Basic
$
0.18

$
0.24

$
0.18

$
0.11

$
0.71

Net Income Per Share — Diluted
$
0.18

$
0.24

$
0.18

$
0.11

$
0.71

Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
 
Year Ended December 31,
In millions, except per share data
2017
2016
2015
Net Income
$
300.2

$
228.0

$
230.1

Weighted Average Shares:
 
 
 
Basic
311.1

320.9

329.5

Dilutive effect of RSUs
0.8

0.6

1.2

Diluted
311.9

321.5

330.7

Earnings Per Share — Basic
$
0.97

$
0.71

$
0.70

Earnings Per Share — Diluted
$
0.96

$
0.71

$
0.70

Other Comprehensive (Loss) Income Other Comprehensive (Loss) Income
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The components of Accumulated Other Comprehensive (Loss) Income are as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
In millions
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
Derivative Instruments (Loss) Gain
$
(7.8
)
$
2.9

$
(4.9
)
 
$
21.0

$
(8.0
)
$
13.0

 
$
(1.0
)
$
0.3

$
(0.7
)
Pension and Postretirement Benefit Plans
12.3

(3.5
)
8.8

 
7.9

(3.9
)
4.0

 
40.0

(13.2
)
26.8

Currency Translation Adjustment
44.9


44.9

 
(58.9
)

(58.9
)
 
(37.2
)

(37.2
)
Other Comprehensive Income (Loss)
$
49.4

$
(0.6
)
$
48.8

 
$
(30.0
)
$
(11.9
)
$
(41.9
)
 
$
1.8

$
(12.9
)
$
(11.1
)


The balances of Accumulated Other Comprehensive Loss, net of applicable taxes are as follows:
 
December 31,
In millions
2017
2016
Accumulated Derivative Instruments Loss
$
(10.3
)
$
(5.4
)
Pension and Postretirement Benefit Plans
(226.7
)
(235.5
)
Currency Translation Adjustment
(101.8
)
(146.7
)
Accumulated Other Comprehensive Loss
$
(338.8
)
$
(387.6
)
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following represents changes in Accumulated Other Comprehensive (Loss) Income by component for the year ended December 31, 2017 (a):
In millions
Derivatives Instruments
Pension Benefit Plans
Postretirement Benefit Plans
Currency Translation Adjustments
Total
Balance at December 31, 2016
$
(5.4
)
$
(250.2
)
$
14.7

$
(146.7
)
$
(387.6
)
Other Comprehensive (Loss) Income before Reclassifications
(3.6
)
3.3

2.6

44.9

47.2

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (b)
(1.3
)
4.4

(1.5
)

1.6

Net Current-period Other Comprehensive (Loss) Income
(4.9
)
7.7

1.1

44.9

48.8

Balance at December 31, 2017
$
(10.3
)
$
(242.5
)
$
15.8

$
(101.8
)
$
(338.8
)

(a) 
All amounts are net-of-tax.
(b) See following table for details about these reclassifications.

The following represents reclassifications out of Accumulated Other Comprehensive Income for the year ended December 31, 2017:

In millions
 
 
 
 
Details about Accumulated Other Comprehensive Income Components
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Affected Line Item in the Statement Where Net Income is Presented
Derivatives Instruments:
 
 
 
 
Commodity Contracts
 
$
(1.2
)
 
Cost of Sales
Foreign Currency Contracts
 
(0.3
)
 
Other Expense, Net
Interest Rate Swap Agreements
 
(0.6
)
 
Interest Expense, Net
 
 
(2.1
)
 
Total before Tax
 
 
0.8

 
Tax Expense
 
 
$
(1.3
)
 
Net of Tax
 
 
 
 
 
Amortization of Defined Benefit Pension Plans:
 
 
 
 
Prior Service Costs
 
$
0.5

(c) 
 
Actuarial Losses
 
6.5

(c) 
 
 
 
7.0

 
Total before Tax
 
 
(2.6
)
 
Tax Benefit
 
 
$
4.4

 
Net of Tax
 
 
 
 
 
Amortization of Postretirement Benefit Plans:
 
 
 
 
Prior Service Credits
 
$
(0.3
)
(c) 
 
Actuarial Gains
 
(2.1
)
(c) 
 
 
 
(2.4
)
 
Total before Tax
 
 
0.9

 
Tax Expense
 
 
$
(1.5
)
 
Net of Tax
 
 
 
 
 
Total Reclassifications for the Period
 
$
1.6

 
 
 

(c) 
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7 — Pensions and Other Postretirement Benefits).
Guarantor Condensed Consolidated Financial Statements
Guarantor Consolidating Financial Statements
GUARANTOR CONSOLIDATING FINANCIAL STATEMENTS
This disclosure is required because certain subsidiaries are guarantors of GPI debt securities.

These consolidating financial statements reflect GPHC (“the Parent”); GPI (the "Subsidiary Issuer"); and the Subsidiary Guarantors, which consist of all material 100% owned subsidiaries of GPI other than its foreign subsidiaries; and the nonguarantor subsidiaries (herein referred to as “Nonguarantor Subsidiaries”). The Nonguarantor Subsidiaries include all of GPI's foreign subsidiaries and the immaterial domestic subsidiaries. Separate complete financial statements of the Subsidiary Guarantors are not presented because the guarantors are jointly and severally, fully and unconditionally liable under the guarantees.

 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,509.0

$
50.6

$
1,166.6

$
(322.5
)
$
4,403.7

Cost of Sales

2,934.0

40.7

1,032.0

(322.5
)
3,684.2

Selling, General and Administrative

257.4

3.5

81.8


342.7

Other (Income) Expense, Net

(6.1
)
0.1

9.0


3.0

Business Combinations and Shutdown and Other Special Charges, Net

19.4


11.7


31.1

Income from Operations

304.3

6.3

32.1


342.7

Interest Expense, Net

(84.9
)

(4.8
)

(89.7
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

219.4

6.3

27.3


253.0

Income Tax Benefit (Expense)

54.9

(3.5
)
(5.9
)

45.5

Income before Equity Income of Unconsolidated Entity

274.3

2.8

21.4


298.5

Equity Income of Unconsolidated Entity



1.7


1.7

Equity in Net Earnings of Subsidiaries
300.2

25.9

(6.1
)

(320.0
)

Net Income (Loss)
300.2

300.2

(3.3
)
23.1

(320.0
)
300.2

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
349.0

$
349.0

$
(26.0
)
$
78.5

$
(401.5
)
$
349.0


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,462.5

$
106.2

$
1,051.3

$
(321.9
)
$
4,298.1

Cost of Sales

2,812.2

88.6

927.3

(321.9
)
3,506.2

Selling, General and Administrative

264.4

11.2

80.1


355.7

Other (Income) Expense, Net

(3.8
)

6.9


3.1

Business Combinations and Shutdown and Other Special Charges, Net

32.9


4.2


37.1

Income from Operations

356.8

6.4

32.8


396.0

Interest (Expense) Income, Net

(72.3
)

(4.3
)

(76.6
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

284.5

6.4

28.5


319.4

Income Tax Expense

(81.5
)
(2.6
)
(9.1
)

(93.2
)
Income before Equity Income of Unconsolidated Entity

203.0

3.8

19.4


226.2

Equity Income of Unconsolidated Entity



1.8


1.8

Equity in Net Earnings of Subsidiaries
228.0

25.0

(6.1
)

(246.9
)

Net Income (Loss)
228.0

228.0

(2.3
)
21.2

(246.9
)
228.0

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
186.1

$
186.1

$
16.8

$
(65.7
)
$
(137.2
)
$
186.1




 
Year Ended December 31, 2015
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,363.6

$
1.6

$
1,037.2

$
(242.2
)
$
4,160.2

Cost of Sales

2,730.2

(1.1
)
884.2

(242.2
)
3,371.1

Selling, General and Administrative

274.9

2.5

70.3


347.7

Other (Income) Expense, Net

(10.7
)

3.0


(7.7
)
Business Combinations and Shutdown and Other Special Charges, Net

6.1


15.9


22.0

Income from Operations

363.1

0.2

63.8


427.1

Interest Expense, Net

(64.9
)

(2.9
)

(67.8
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

298.2

0.2

60.9


359.3

Income Tax Expense

(115.8
)
(0.2
)
(14.4
)

(130.4
)
Income before Equity Income of Unconsolidated Entity

182.4


46.5


228.9

Equity Income of Unconsolidated Entity



1.2


1.2

Equity in Net Earnings of Subsidiaries
230.1

47.7

(1.3
)

(276.5
)

Net Income (Loss)
$
230.1

$
230.1

$
(1.3
)
$
47.7

$
(276.5
)
$
230.1

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
219.0

$
219.0

$
(5.9
)
$
(2.7
)
$
(210.4
)
$
219.0



 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
ASSETS
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
Cash and Cash Equivalents
$
23.3

$
1.2

$

$
42.9

$

$
67.4

Receivables, Net

82.9


339.9


422.8

Inventories, Net

417.8


216.2


634.0

Intercompany

1,232.0

204.3


(1,436.3
)

Other Current Assets

33.6


12.1


45.7

Total Current Assets
23.3

1,767.5

204.3

611.1

(1,436.3
)
1,169.9

Property, Plant and Equipment, Net

1,532.9

0.1

334.2


1,867.2

Investment in Consolidated Subsidiaries
1,711.9


13.0


(1,724.9
)

Goodwill

1,154.8


168.2


1,323.0

Other Assets

362.1


140.8


502.9

Total Assets
$
1,735.2

$
4,817.3

$
217.4

$
1,254.3

$
(3,161.2
)
$
4,863.0

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
$

$
51.5

$

$
9.8

$

$
61.3

Accounts Payable

381.7


134.8


516.5

Interest Payable

14.3


0.6


14.9

Intercompany
420.0



1,033.1

(1,453.1
)

Other Accrued Liabilities
23.3

166.5


68.9


258.7

Total Current Liabilities
443.3

614.0


1,247.2

(1,453.1
)
851.4

Long-Term Debt

2,082.3


130.9


2,213.2

Deferred Income Tax Liabilities

295.0


26.8


321.8

Other Noncurrent Liabilities

114.1


70.6


184.7

 












EQUITY
 
 
 
 
 
 
Total Equity
1,291.9

1,711.9

217.4

(221.2
)
(1,708.1
)
1,291.9

Total Liabilities and Equity
$
1,735.2

$
4,817.3

$
217.4

$
1,254.3

$
(3,161.2
)
$
4,863.0


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
ASSETS
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
Cash and Cash Equivalents
$

$
0.9

$
1.2

$
57.0

$

$
59.1

Receivables, Net

183.7

10.1

233.0


426.8

Inventories, Net

403.8

16.1

163.0


582.9

Intercompany

1,077.5

73.3


(1,150.8
)

Other Current Assets

36.4


9.7


46.1

Total Current Assets

1,702.3

100.7

462.7

(1,150.8
)
1,114.9

Property, Plant and Equipment, Net

1,435.8

64.1

252.0


1,751.9

Investment in Consolidated Subsidiaries
1,362.9


12.3


(1,375.2
)

Goodwill

1,098.9

55.5

105.9


1,260.3

Other Assets

314.8

65.6

95.9


476.3

Total Assets
$
1,362.9

$
4,551.8

$
298.2

$
916.5

$
(2,526.0
)
$
4,603.4

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
$

$
26.0

$

$
37.4

$

$
63.4

Accounts Payable

354.3

8.5

103.7


466.5

Interest Payable

15.4




15.4

Intercompany
306.4



913.0

(1,219.4
)

Other Accrued Liabilities

163.2

3.0

68.3


234.5

Total Current Liabilities
306.4

558.9

11.5

1,122.4

(1,219.4
)
779.8

Long-Term Debt

2,042.4


46.1


2,088.5

Deferred Income Tax Liabilities

342.1

43.3

22.6


408.0

Other Noncurrent Liabilities

245.5


25.1


270.6

 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
Total Equity
1,056.5

1,362.9

243.4

(299.7
)
(1,306.6
)
1,056.5

Total Liabilities and Equity
$
1,362.9

$
4,551.8

$
298.2

$
916.5

$
(2,526.0
)
$
4,603.4







 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
300.2

$
300.2

$
(3.3
)
$
23.1

$
(320.0
)
$
300.2

Non-cash Items Included in Net Income (Loss):
 
 
 
 
 
 
Depreciation and Amortization

260.8

4.8

64.7


330.3

Deferred Income Taxes

(49.0
)
(1.1
)
(3.9
)

(54.0
)
Amount of Postretirement Expense Less Than Funding

(113.8
)

(13.3
)

(127.1
)
Gain on the Sale of Assets, net

(3.7
)



(3.7
)
Equity in Net Earnings of Subsidiaries
(300.2
)
(25.9
)
6.1


320.0


Other, Net

7.5


(0.4
)

7.1

Changes in Operating Assets and Liabilities

99.5

(7.7
)
(28.4
)

63.4

Net Cash Provided by (Used In) Operating Activities

475.6

(1.2
)
41.8


516.2

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(193.2
)

(47.7
)

(240.9
)
Packaging Machinery Spending

(19.1
)

(0.1
)

(19.2
)
Acquisition of Business, Net of Cash Acquired

(127.0
)

(62.4
)

(189.4
)
Proceeds Received from Sale of Assets, Net of Selling Costs

7.9




7.9

Other, Net
189.0

(15.5
)


(172.5
)
1.0

Net Cash Provided by (Used in) by Investing Activities
189.0

(346.9
)

(110.2
)
(172.5
)
(440.6
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(62.1
)




(62.1
)
Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

1,103.4


99.5


1,202.9

Payments on Revolving Credit Facilities

(1,026.6
)

(64.2
)

(1,090.8
)
Dividends Paid
(93.4
)




(93.4
)
Repurchase of Common Stock related to Share-Based Payments
(10.2
)




(10.2
)
Other, Net

(180.2
)

16.5

172.5

8.8

Net Cash (Used in) Provided by Financing Activities
(165.7
)
(128.4
)

51.8

172.5

(69.8
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



2.5


2.5

 
 
 
 
 
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
23.3

0.3

(1.2
)
(14.1
)

8.3

Cash and Cash Equivalents at Beginning of Period

0.9

1.2

57.0


59.1

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
23.3

$
1.2

$

$
42.9

$

$
67.4


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
228.0

$
228.0

$
(2.3
)
$
21.2

$
(246.9
)
$
228.0

Non-cash Items Included in Net Income (Loss):












Depreciation and Amortization

233.4

12.9

53.0


299.3

Deferred Income Taxes

77.5

1.7

(2.5
)

76.7

Amount of Postretirement Expense Less Than Funding

(25.8
)

(5.5
)

(31.3
)
Equity in Net Earnings of Subsidiaries
(228.0
)
(25.0
)
6.1


246.9


Other, Net

30.8


(0.6
)

30.2

Changes in Operating Assets and Liabilities

44.9

(17.2
)
10.8


38.5

Net Cash Provided by Operating Activities

563.8

1.2

76.4


641.4

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(239.7
)

(38.9
)

(278.6
)
Package Machinery Spending

(9.4
)

(6.6
)

(16.0
)
Acquisition of Businesses, Net of Cash Acquired

(173.1
)

(159.6
)

(332.7
)
Other, Net
240.6

(166.0
)


(79.8
)
(5.2
)
Net Cash Provided by (Used in) Investing Activities
240.6

(588.2
)

(205.1
)
(79.8
)
(632.5
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(164.9
)




(164.9
)
Proceeds from Issuance or Modification of Debt

300.0




300.0

Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

1,136.0


64.0


1,200.0

Payments on Revolving Credit Facilities

(1,143.5
)

(92.3
)

(1,235.8
)
Debt Issuance Costs

(5.3
)



(5.3
)
Dividends Paid
(64.4
)




(64.4
)
Repurchase of Common Stock related to Share-Based Payments
(11.3
)




(11.3
)
Other, Net

(237.0
)

160.8

79.8

3.6

Net Cash (Used in) Provided by Financing Activities
(240.6
)
25.2


132.5

79.8

(3.1
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



(1.6
)

(1.6
)
 
 
 
 
 
 
 
Net Increase in Cash and Cash Equivalents

0.8

1.2

2.2


4.2

Cash and Cash Equivalents at Beginning of Period

0.1


54.8


54.9

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$

$
0.9

$
1.2

$
57.0

$

$
59.1


 
Year Ended December 31, 2015
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
230.1

$
230.1

$
(1.3
)
$
47.7

$
(276.5
)
$
230.1

Non-cash Items Included in Net Income:
 
 
 
 
 
 
Depreciation and Amortization

239.2

0.1

41.2


280.5

Deferred Income Taxes

108.5


1.5


110.0

Amount of Postretirement Expense Less Than Funding

(31.4
)

(8.0
)

(39.4
)
Loss on the Sale of Assets, net

1.9




1.9

Equity in Net Earnings of Subsidiaries
(230.1
)
(47.7
)
1.3


276.5


Other, Net

31.6


(6.5
)

25.1

Changes in Operating Assets and Liabilities
0.3

(99.0
)
0.3

79.4


(19.0
)
Net Cash Provided by Operating Activities
0.3

433.2

0.4

155.3


589.2

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(188.7
)
(0.4
)
(39.8
)

(228.9
)
Packaging Machinery Spending

(12.5
)

(2.7
)

(15.2
)
Acquisition of Businesses, Net of Cash Acquired

(131.1
)

(32.1
)

(163.2
)
Other, Net
133.5

78.6


9.9

(214.5
)
7.5

Net Cash Provided by (Used in) Investing Activities
133.5

(253.7
)
(0.4
)
(64.7
)
(214.5
)
(399.8
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(63.0
)




(63.0
)
Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

831.3


71.7


903.0

Payments on Revolving Credit Facilities

(852.9
)

(100.9
)

(953.8
)
Dividends Paid
(49.3
)




(49.3
)
Repurchase of Common Stock Related to Share-Based Payments
(21.5
)




(21.5
)
Other, Net

(134.8
)

(81.0
)
214.5

(1.3
)
Net Cash (Used in) Provided by Financing Activities
(133.8
)
(181.4
)

(110.2
)
214.5

(210.9
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



(5.2
)

(5.2
)
 
 
 
 
 
 
 
Net Decrease in Cash and Cash Equivalents

(1.9
)

(24.8
)

(26.7
)
Cash and Cash Equivalents at Beginning of Period

2.0


79.6


81.6

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$

$
0.1

$

$
54.8

$

$
54.9

Subsequent Event (Notes)
Subsequent Events [Text Block]
SUBSEQUENT EVENTS

On January 1, 2018, GPHC, International Paper Company (“IP”), Graphic Packaging International Partners, LLC (“GPIP”), and GPI completed a series of transactions by which the North America Consumer Packaging business of IP was combined with the businesses of GPI. Pursuant to the Transaction Agreement dated October 23, 2017, on the closing date IP transferred its business to GPIP, which subsequently transferred the business to GPI. Concurrently therewith, GPIP issued 20.5% of its membership interests to IP and IP was admitted as a member of GPIP. As a result, GPHC indirectly holds 79.5% of the membership interests in GPIP and IP holds 20.5% of the membership interests in GPIP.

In connection with consummation of the transactions with IP, GPI entered into a Third Amended and Restated Credit Agreement dated as of January 1, 2018 (the “Amended and Restated Credit Agreement”) by and among GPI and certain subsidiaries thereof as Borrowers, the lenders and agents named therein, and Bank of America, N.A., as Administrative Agent. The Amended and Restated Credit Agreement effects an “amend and extend” transaction with respect to the Company’s existing senior credit facility by which, among other things: (i) the maturity date thereof was extended to January 1, 2023, (ii) the U.S. dollar commitment portion increased by $75 million, (iii) the applicable margin interest rate pricing grid levels were reduced from those set forth in the prior credit facility, (iv) certain negative covenants contained in the prior credit facility were relaxed and (v) certain amendments were effected so as to accommodate the transactions with IP.

In addition to the Amended and Restated Credit Agreement, on January 1, 2018 the Company assumed the term loan indebtedness previously incurred by IP (the “Term Loan Credit Agreement”) in an aggregate amount of $660.0 million, repayable pursuant to the same amortization schedule (expressed as a percentage of the principal amount thereof) as the Term Loan A under the Amended and Restated Credit Agreement and has the same maturity date of January 1, 2023. The applicable margin pricing grid, covenant and other terms are substantially equivalent to those contained in the Amended and Restated Credit Agreement. The Term Loan Credit Agreement is secured by a lien and security interest in substantially all of the assets of GPI on a pari passu basis with the liens and security interests securing the Amended and Restated Credit Agreement pursuant to the terms of a customary intercreditor agreement among the parties.
Nature of Business and Summary of Significant Accounting Policies (Policies)
Basis of Presentation and Principles of Consolidation

The Company’s Consolidated Financial Statements include all subsidiaries in which the Company has the ability to exercise direct or indirect control over operating and financial policies. Intercompany transactions and balances are eliminated in consolidation. Certain reclassifications have been made to prior year amounts to conform to current year presentation.

The Company holds a 50% ownership interest in a joint venture called Rengo Riverwood Packaging, Ltd. (in Japan) which is accounted for using the equity method.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, pension benefits, retained insurable risks, slow-moving and obsolete inventory, allowance for doubtful accounts, useful lives for depreciation and amortization, impairment testing of goodwill and long-term assets, fair values related to acquisition accounting, fair value of derivative financial instruments, deferred income tax assets and potential income tax assessments, and loss contingencies.
Cash and Cash Equivalents

Cash and cash equivalents include time deposits, certificates of deposit and other marketable securities with original maturities of three months or less.

Accounts Receivable and Allowances

Accounts receivable are stated at the amount owed by the customer, net of an allowance for estimated uncollectible accounts, returns and allowances, and cash discounts. The allowance for doubtful accounts is estimated based on historical experience, current economic conditions and the credit worthiness of customers. Receivables are charged to the allowance when determined to be no longer collectible.
Concentration of Credit Risk

The Company’s cash, cash equivalents, and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located in the U.S. and internationally and generally do not require collateral.
Inventories

Inventories are stated at the lower of cost and net realizable value with cost determined principally by the first-in, first-out (“FIFO”) basis. Average cost basis is used to determine the cost of supply inventories and certain raw materials. Raw materials and consumables used in the production process such as wood chips and chemicals are valued at purchase cost on a FIFO basis upon receipt. Work in progress and finished goods inventories are valued at the cost of raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) as incurred and an applicable portion of manufacturing overhead. Inventories are stated net of an allowance for slow-moving and obsolete inventory.
Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Betterments, renewals and extraordinary repairs that extend the life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The Company’s cost and related accumulated depreciation applicable to assets retired or sold are removed from the accounts and the gain or loss on disposition is included in income from operations.

Interest is capitalized on assets under construction for one year or longer with an estimated spending of $1.0 million or more. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest was $1.2 million, $1.3 million and $0.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The Company assesses its long-lived assets, including certain identifiable intangibles, for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. To analyze recoverability, the Company projects future cash flows, undiscounted and before interest, over the remaining life of such assets. If these projected cash flows are less than the carrying amount, an impairment would be recognized, resulting in a write-down of assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets. The Company assesses the appropriateness of the useful life of its long-lived assets periodically.


Depreciation and Amortization

Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets:

Buildings
40 years
Land improvements
15 years
Machinery and equipment
3 to 40 years
Furniture and fixtures
10 years
Automobiles, trucks and tractors
3 to 5 years
Intangible assets with a determinable life are amortized on a straight-line or accelerated basis over their useful lives. The amortization expense for each intangible asset is recorded in the Consolidated Statements of Operations according to the nature of that asset.
Goodwill

The Company tests goodwill for impairment annually as of October 1, as well as whenever events or changes in circumstances suggest that the estimated fair value of a reporting unit may no longer exceed its carrying amount.

The Company tests goodwill for impairment at the reporting unit level, which is an operating segment or a level below an operating segment, which is referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics.

Potential goodwill impairment is measured at the reporting unit level by comparing the reporting unit’s carrying amount (including goodwill), to the fair value of the reporting unit. When performing the quantitative analysis, the estimated fair value of each reporting unit is determined by utilizing a discounted cash flow analysis based on the Company’s forecasts, discounted using a weighted average cost of capital and market indicators of terminal year cash flows based upon a multiple of EBITDA. If the carrying amount of a reporting unit exceeds its estimated fair value, goodwill is considered potentially impaired. In determining fair value, management relies on and considers a number of factors, including but not limited to, operating results, business plans, economic projections, forecasts including future cash flows, and market data and analysis, including market capitalization. The assumptions used are based on what a hypothetical market participant would use in estimating fair value. Fair value determinations are sensitive to changes in the factors described above. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

Periodically, the Company may perform a qualitative impairment analysis of goodwill associated with each of its reporting units to determine if it is more likely than not that the carrying value of a reporting unit exceeded its fair value. As a result of its testing of goodwill as of October 1, 2017, the Company concluded goodwill was not impaired.

Retained Insurable Risks

It is the Company’s policy to self-insure or fund a portion of certain expected losses related to group health benefits and workers’ compensation claims. Provisions for expected losses are recorded based on the Company’s estimates, on an undiscounted basis, of the aggregate liabilities for known claims and estimated claims incurred but not reported
Asset Retirement Obligations

Asset retirement obligations are accounted for in accordance with the provisions of the Asset Retirement and Environmental Obligations topic of the FASB Codification. A liability and asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated. The liability is accreted over time and the asset is depreciated over the remaining life of the asset. Upon settlement of the liability, the Company will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations with indeterminate settlement dates are not recorded until such time that a reasonable estimate may be made.
International Currency

The functional currency of the international subsidiaries is the local currency for the country in which the subsidiaries own their primary assets. The translation of the applicable currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. Any related translation adjustments are recorded directly to a separate component of Shareholders’ Equity, unless there is a sale or substantially complete liquidation of the underlying foreign investments.

The Company pursues a currency hedging program which utilizes derivatives to reduce the impact of foreign currency exchange fluctuations on its consolidated financial results. Under this program, the Company has entered into forward exchange contracts in the normal course of business to hedge certain foreign currency denominated transactions. Realized and unrealized gains and losses on these forward contracts are included in the measurement of the basis of the related foreign currency transaction when recorded.
Revenue Recognition

The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an agreement exists, delivery has occurred or services have been rendered, the Company’s price to the buyer is fixed or determinable and collectability is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership.

The timing of revenue recognition is largely dependent on the location of title transfer which is normally either at our plant (shipping point) or upon arrival at our customer’s plant (destination). The Company recognizes revenues on its annual and multi-year carton supply contracts as the shipment occurs in accordance with the title transfer discussed above.

Discounts and allowances are comprised of trade allowances and rebates, cash discounts and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Customer rebates are determined based on contract terms and are recorded at the time of sale.
Shipping and Handling

The Company includes shipping and handling costs in Cost of Sales.
Research and Development

Research and development costs, which relate primarily to the development and design of new packaging machines and products and are recorded as a component of Selling, General and Administrative expenses, are expensed as incurred.
Adoption of New Accounting Standards

Effective January 1, 2017 the Company adopted Accounting Standards Update ("ASU") No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for income taxes, among other changes, related to stock-based compensation. In the first quarter of 2017, the Company recorded a discrete benefit of approximately $2 million related to the excess benefit associated with share based payments to employees. The remaining $39 million of previously unrecognized excess tax benefits, which were prohibited from recognition due to net operating loss carryforwards, were recognized in accumulated deficit. The Company is continuing its practice of estimating forfeitures and recording cash paid for withholding taxes as a financing activity.

Effective January 1, 2017 the Company adopted ASU No. 2015-11, Inventory (Topic 330); Simplifying the Measurement of Inventory. This amendment replaced the method of measuring inventories at lower of cost or market with a lower of cost and net realizable value method. The adoption had no impact on the Company's financial position, results of operations and cash flows.

Accounting Standards Not Yet Adopted

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815); Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align the risk management activities and financial reporting for these hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718); Scope of Modification Accounting. The amendments in this ASU provide guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the value, vesting conditions or classification of the award changes, modification accounting will apply. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715); Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments to this ASU require the service cost component of net periodic benefit cost be reported in the same income statement line or lines as other compensation costs for employees. The other components of net periodic benefit cost are required to be reported separately from service costs and outside a subtotal of income from operations. Only the service cost component is eligible for capitalization. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied retrospectively for the income statement presentations and prospectively for the capitalization of service costs. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial position, results of operations and cash flows.

In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350); Simplifying the Test for Goodwill Impairment which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 of the goodwill impairment model. Step 2 measures a goodwill impairment loss by comparing the implied value of a reporting unit’s goodwill with the carrying amount of that goodwill. An entity would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized is limited to the amount of goodwill allocated to that reporting unit. The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this ASU provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and will be applied prospectively.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230); Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance to clarify how certain cash receipts and payments should be presented in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a retrospective adoption method. The Company is evaluating the impact of adoption of this standard on the Company's statement of cash flows.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is evaluating the impact of adoption on the Company's financial position, results of operation and cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Adoption of ASU No. 2014-09 requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB deferred the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard but not before the original effective date of December 15, 2016, and can be applied using a full retrospective or modified retrospective approach. The Company is adopting this standard in the first quarter of fiscal 2018 and will use the modified retrospective approach. The Company formed an implementation team including representatives from finance, sales, and legal to assist in the assessment and implementation of this standard. The Company considered whether the adoption may require acceleration of revenue for products produced by the Company without an alternative use and when the Company would have a legally enforceable right of payment. Based on the Company's contract review, relevant laws, and other procedures, the Company concluded an enforceable right of payment does not exist because the Company is only entitled to cost for unclaimed cartons should a customer terminate without cause; therefore acceleration of revenue is not required. The Company is continuing its evaluation of all other aspects of the standard, and currently does not believe the adoption of the standard will have a material impact on the Company's financial position, results of operations and cash flows.
Nature of Business and Summary of Significant Accounting Policies (Tables)
Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets:

Buildings
40 years
Land improvements
15 years
Machinery and equipment
3 to 40 years
Furniture and fixtures
10 years
Automobiles, trucks and tractors
3 to 5 years
Property, Plant and Equipment, Net:

In millions
2017
2016
Property, Plant and Equipment, at Cost:
 
 
Land and Improvements
$
106.2

$
105.9

Buildings
431.9

404.1

Machinery and Equipment (a)    
4,384.5

4,137.0

Construction-in-Progress
151.0

106.4

 
5,073.6

4,753.4

Less: Accumulated Depreciation (a)    
(3,206.4
)
(3,001.5
)
Total
$
1,867.2

$
1,751.9


(a) 
Includes gross assets under capital lease of $39.7 million and related accumulated depreciation of $7.4 million as of December 31, 2017 and gross assets under capital lease of $25.6 million and related accumulated depreciation of $5.0 million as of December 31, 2016.


The following table displays the intangible assets that continue to be subject to amortization and accumulated amortization expense as of December 31, 2017 and 2016:

 
December 31, 2017
 
December 31, 2016
 
 
In millions
Gross Carrying Amount
 Accumulated Amortization
 Net Carrying Amount
 
Gross Carrying Amount
 Accumulated Amortization
Net Carrying Amount
Amortizable Intangible Assets:
 
 
 
 
 
 
 
Customer Relationships
$
786.9

$
(377.2
)
$
409.7

 
$
736.0

$
(321.0
)
$
415.0

Patents, Trademarks, Licenses, and Leases
130.2

(103.4
)
26.8

 
125.1

(94.8
)
30.3

Total
$
917.1

$
(480.6
)
$
436.5

 
$
861.1

$
(415.8
)
$
445.3

The following is a rollforward of goodwill by reportable segment:

In millions
Paperboard Mills
Americas Paperboard Packaging
Europe Paperboard Packaging
Corporate/Other(a)
Total
Balance at December 31, 2015
$
408.5

$
698.3

$
61.0

$

$
1,167.8

Acquisition of Businesses

98.8


14.1

112.9

Foreign Currency Effects

(7.7
)
(12.0
)
(0.7
)
(20.4
)
Balance at December 31, 2016
$
408.5

$
789.4

$
49.0

$
13.4

$
1,260.3

Acquisition of Businesses

51.4

6.3

(2.3
)
55.4

Reallocation of Goodwill

(4.0
)

4.0


Foreign Currency Effects

2.2

4.2

0.9

7.3

Balance at December 31, 2017
$
408.5

$
839.0

$
59.5

$
16.0

$
1,323.0

(a) 
Includes Australia operating segment.


The following table summarizes the transactions recorded in Business Combinations and Shutdown and Other Special Charges, Net in the Consolidated Statements of Operations as of December 31:
In millions
2017
2016
2015
Net Charges Associated with Business Combinations
$
16.2

$
21.2

$
14.0

Shutdown and Other Special Charges
18.6

15.9

6.1

(Gain) Loss on Sale of Assets
(3.7
)

1.9

Total
$
31.1

$
37.1

$
22.0

Supplemental Balance Sheet Data (Tables)
The following tables provide disclosure related to the components of certain line items included in our consolidated balance sheets.

Receivables, Net:

In millions
2017
2016
Trade
$
279.2

$
370.0

Less: Allowance
(7.2
)
(6.7
)
 
272.0

363.3

Other (a)
150.8

63.5

Total
$
422.8

$
426.8

(a) 
Includes a receivable of approximately $102 million and $31 million for 2017 and 2016, respectively, from the financial institution under the purchasing and servicing of receivables agreements, which is a Level 3 fair value measurement.


Inventories, Net by major class:

In millions
2017
2016
Finished Goods
$
240.5

$
238.3

Work in Progress
74.1

73.5

Raw Materials
229.4

187.2

Supplies
90.0

83.9

Total
$
634.0

$
582.9



Other Current Assets:

In millions
2017
2016
Prepaid Assets
$
34.3

$
34.1

Assets Held for Sale
10.2

5.0

Fair Value of Derivatives, current portion
1.2

7.0

Total
$
45.7

$
46.1

Depreciation is computed using the straight-line method based on the following estimated useful lives of the related assets:

Buildings
40 years
Land improvements
15 years
Machinery and equipment
3 to 40 years
Furniture and fixtures
10 years
Automobiles, trucks and tractors
3 to 5 years
Property, Plant and Equipment, Net:

In millions
2017
2016
Property, Plant and Equipment, at Cost:
 
 
Land and Improvements
$
106.2

$
105.9

Buildings
431.9

404.1

Machinery and Equipment (a)    
4,384.5

4,137.0

Construction-in-Progress
151.0

106.4

 
5,073.6

4,753.4

Less: Accumulated Depreciation (a)    
(3,206.4
)
(3,001.5
)
Total
$
1,867.2

$
1,751.9


(a) 
Includes gross assets under capital lease of $39.7 million and related accumulated depreciation of $7.4 million as of December 31, 2017 and gross assets under capital lease of $25.6 million and related accumulated depreciation of $5.0 million as of December 31, 2016.


Other Assets:

In millions
2017
2016
Deferred Debt Issuance Costs, Net of Amortization of $10.9 million and $9.3 million for 2017 and 2016, respectively    
$
2.9

$
4.5

Deferred Income Tax Assets
6.8

3.2

Pension Assets
20.4

3.0

Fair Value of Derivatives, noncurrent portion

0.7

Other
36.3

19.6

Total
$
66.4

$
31.0


Other Accrued Liabilities:

In millions
2017
2016
Dividends Payable
$
23.3

$
23.6

Deferred Revenue
11.6

11.4

Accrued Customer Rebates
15.5

8.0

Fair Value of Derivatives, current portion
1.2

0.8

Other Accrued Taxes
29.8

22.3

Accrued Payables
25.7

10.8

Other
38.2

50.3

Total
$
145.3

$
127.2

Other Noncurrent Liabilities:

In millions
2017
2016
Deferred Revenue
$
6.6

$
6.7

Multi-employer Plans
29.0

30.4

Workers Compensation Reserve
10.9

10.7

Accrued Build-to-Suit Obligation
35.8


Other
22.4

20.3

Total
$
104.7

$
68.1

Supplemental Cash Flow Information Supplemental Cash Flow Information (Tables)
Cash Flow Provided by (Used In) Operations Due to Changes in Operating Assets and Liabilities, net of acquisitions:
In millions
2017
2016
2015
Receivables, Net
$
49.9

$
25.5

$
(1.5
)
Inventories, Net
(6.5
)
10.5

(19.7
)
Prepaid Expenses
0.8

(1.2
)
0.1

Other Assets
(32.8
)
8.5

(12.4
)
Accounts Payable
27.0

4.3

12.7

Compensation and Employee Benefits
3.5

(21.7
)
(1.9
)
Income Taxes
2.3

1.7

0.9

Interest Payable
(1.7
)
5.0

(1.1
)
Other Accrued Liabilities
6.7

12.8

(3.9
)
Other Noncurrent Liabilities
14.2

(6.9
)
7.8

Total
$
63.4

$
38.5

$
(19.0
)
Cash paid for interest and cash paid, net of refunds, for income taxes was as follows:
In millions
2017
2016
2015
Interest
$
81.8

$
64.9

$
60.9

Income Taxes
$
15.9

$
14.5

$
11.2

Acquisitions (Tables)
Schedule of Purchase Price Allocation
The preliminary acquisition accounting for the 2017 Acquisitions is as follows:

In millions
Amounts Recognized as of Acquisition Date
Measurement Period Adjustments
Amounts Recognized as of Acquisition Dates (as adjusted)
Purchase Price
$
191.0

$
1.5

$
192.5

Assumed Debt
14.0


14.0

  Total Purchase Consideration
$
205.0

$
1.5

$
206.5

 
 
 
 
Cash and Cash Equivalents
$
3.1

$

$
3.1

Receivables, Net
25.9


25.9

Inventories, Net
29.9

1.1

31.0

Property, Plant and Equipment, Net
32.6

21.9

54.5

Intangible Assets, Net(a)

43.3

43.3

Other Assets
0.5


0.5

  Total Assets Acquired    
92.0

66.3

158.3

Current Liabilities
3.7


3.7

Pension and Postretirement Benefits
0.5


0.5

Deferred Tax Liabilities

4.6

4.6

Other Noncurrent Liabilities
0.7


0.7

  Total Liabilities Assumed    
4.9

4.6

9.5

  Net Assets Acquired    
87.1

61.7

148.8

Goodwill
117.9

(60.2
)
57.7

  Total Estimated Fair Value of Net Assets Acquired    
$
205.0

$
1.5

$
206.5



(a) 
The weighted average life of Intangibles, Net, is 18 years. The Intangible Assets, Net were valued using the income approach and are a Level 3 fair value measurement.

Debt (Tables)
Short-Term Debt is comprised of the following:

In millions
2017
2016
Short Term Borrowings
$
9.1

$
37.1

Current Portion of Capital Lease Obligations
2.2

1.3

Current Portion of Long-Term Debt
50.0

25.0

Total
$
61.3

$
63.4

Long-Term Debt is comprised of the following:

In millions
2017
2016
Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.19%, payable in 2024
$
300.0

$
300.0

Senior Notes with interest payable semi-annually at 4.875%, effective rate of 4.93%, payable in 2022
250.0

250.0

Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.78%, payable in 2021
425.0

425.0

Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (2.84% at December 31, 2017) payable through 2019
925.0

950.0

Senior Secured Revolving Credit Facilities with interest payable at floating rates (2.55% at December 31, 2017) payable in 2019
319.0

184.8

Capital Lease Obligations
30.0

17.9

Other
28.9

3.0

Total Long-Term Debt
2,277.9

2,130.7

Less: Current Portion
52.2

26.3

 
2,225.7

2,104.4

Less: Unamortized Deferred Debt Issuance Costs
12.5

15.9

Total
$
2,213.2

$
2,088.5




Long-Term Debt maturities (excluding capital leases) are as follows:

In millions
2018
$
50.0

2019
1,194.8

2020
20.7

2021
425.4

2022
250.6

After 2022
306.4

Total
$
2,247.9

The following describes the Senior Secured Term Loan and Revolving Credit Facilities:

Date
Document(a)(b)
Provision
Expiration
March 2012
Amended and Restated Credit Agreement
•$1.0 billion revolving credit facility •$1.0 billion amortizing term loan facility •LIBOR plus variable spread(between 175 basis points and 275 basis points) depending on consolidated total leverage ratio
March 2017
December 2012
Amendment No. 1 to Credit Agreement
•$300 million incremental term loan
March 2017
September 2013
Amendment No. 2 to Credit Agreement
•Added €75 million (approximately $100 million) revolving credit facility for borrowings in Euro and Pound Sterling and a ¥2.5 billion (approximately $25 million) revolving credit facility for borrowings in Yen. LIBOR plus variable spread (between 150 basis points and 250 basis points) depending on consolidated total leverage ratio
September 2018
June 2014
Amendment No. 3 to Credit Agreement
•Increased revolving credit facility under which borrowings can be made in Euros or Sterling by €63 million (approximately $86 million)
September 2018
October 2014
Second Amended and Restated Credit Agreement
•Increased the domestic revolving credit facility by $250 million and reduced the term loan by approximately $169 million. LIBOR plus variable spread (between 125 basis points and 225 basis points) depending on consolidated total leverage ratio
October 2019


(a) The Company's obligations under the Credit Agreement are secured by substantially all of the Company's domestic assets.

(b) On January 1, 2018, the Company entered into a Third Amended and Restated Credit Agreement that increased the commitment and drawn balance of the domestic revolving credit facility by $200 million and reduced the term loan by $125 million. The rate is LIBOR plus variable spread (between 125 basis points and 200 basis points) depending on consolidated total leverage ratio. The maturity date has been extended to January 2023. The Third Amended and Restated Credit Agreement was filed as an exhibit to the Company's Form 8-K filed on January 2, 2018. In addition to the Amended and Restated Credit Agreement, the Company assumed debt of $660.0 million as described in Note 19 - Subsequent Events.
At December 31, 2017, the Company and its U.S. and international subsidiaries had the following commitments, amounts outstanding and amounts available under revolving credit facilities:

In millions
Total Commitments
Total Outstanding
Total Available
Senior Secured Domestic Revolving Credit Facility (a)
$
1,250.0

$
218.8

$
1,010.6

Senior Secured International Revolving Credit Facilities
188.1

100.2

87.9

Other International Facilities
67.5

38.0

29.5

Total
$
1,505.6

$
357.0

$
1,128.0

(a) 
In accordance with its debt agreements, the Company's availability under its Revolving Credit Facility has been reduced by the amount of standby letters of credit issued of $20.6 million as of December 31, 2017. These letters of credit are primarily used as security against its self-insurance obligations and workers' compensation obligations. These letters of credit expire throughout 2018 unless extended.

Stock Incentive Plans (Tables)
Data concerning RSUs and stock awards granted in the years ended December 31:

 
2017
2016
2015
RSUs — Employees
1,547,049

1,891,335

1,751,823

Weighted-average grant date fair value
$
13.35

$
11.20

$
13.28

Stock Awards — Board of Directors
65,520

59,880

54,120

Weighted-average grant date fair value
$
13.43

$
13.36

$
14.78

A summary of the changes in the number of unvested RSUs from December 31, 2014 to December 31, 2017 is presented below:

 
 
 
Shares
Weighted Average Grant Date Fair Value
Outstanding — December 31, 2014
7,613,698

$
7.20

Granted
1,751,823

13.28

Released
(3,657,373
)
5.45

Forfeited
(268,560
)
9.32

Outstanding — December 31, 2015
5,439,588

$
10.22

Granted
1,891,335

11.20

Released
(2,596,292
)
7.29

Forfeited
(66,956
)
12.74

Outstanding — December 31, 2016
4,667,675

$
12.21

Granted
1,547,049

13.35

Released
(1,720,327
)
10.05

Forfeited
(622,463
)
13.13

Outstanding — December 31, 2017
3,871,934

$
13.10

Pensions and Other Postretirement Benefits (Tables)
The pension and postretirement expenses related to the Company’s plans consisted of the following:

 
 
Pension Benefits
Postretirement Benefits
 
Year Ended December 31,
In millions
2017
2016
2015
2017
2016
2015
Components of Net Periodic Cost:
 
 
 
 
 
 
Service Cost
$
8.2

$
10.0

$
12.8

$
0.8

$
0.8

$
1.0

Interest Cost
42.6

43.8

54.8

1.3

1.3

1.7

Expected Return on Plan Assets
(64.1
)
(61.3
)
(74.4
)



Amortization:
 
 
 
 
 
 
   Prior Service Cost (Credit)
0.5

0.8

0.7

(0.3
)
(0.2
)
(0.3
)
   Actuarial Loss (Gain)
6.5

27.3

19.7

(2.1
)
(2.1
)
(1.6
)
  Net Curtailment/Settlement Loss

1.0

1.5




Other
0.8

0.8

0.9




Net Periodic (Benefit) Cost
$
(5.5
)
$
22.4

$
16.0

$
(0.3
)
$
(0.2
)
$
0.8

Certain assumptions used in determining the pension and postretirement expenses were as follows:

 
Pension Benefits
Postretirement Benefits
 
Year Ended December 31,
 
2017
2016
2015
2017
2016
2015
Weighted Average Assumptions:
 
 
 
 
 
 
Discount Rate
4.01
%
4.41
%
4.02
%
4.10
%
4.29
%
3.95
%
Rate of Increase in Future Compensation Levels
1.45
%
1.49
%
1.45
%



Expected Long-Term Rate of Return on Plan Assets
5.79
%
5.90
%
6.81
%



Initial Health Care Cost Trend Rate



7.45
%
7.80
%
7.38
%
Ultimate Health Care Cost Trend Rate



4.50
%
4.50
%
4.96
%
Ultimate Year



2024

2024

2036

The following table sets forth the funded status of the Company’s pension and postretirement plans as of December 31:
 
Pension Benefits
Postretirement Benefits
In millions
2017
2016
2017
2016
Change in Benefit Obligation:
 
 
 
 
Benefit Obligation at Beginning of Year
$
1,279.0

$
1,239.0

$
40.6

$
40.8

Service Cost
8.2

10.0

0.8

0.8

Interest Cost
42.6

43.8

1.3

1.3

Actuarial Loss (Gain)
76.4

79.3

(3.4
)
(0.7
)
Foreign Currency Exchange
22.9

(36.0
)
0.1

0.1

Settlement/Curtailment (Gain)
(0.2
)
(3.8
)

0.3

Benefits Paid
(62.7
)
(58.4
)
(2.2
)
(2.1
)
Acquisition

4.1



Other
0.9

1.0

0.1

0.1

Benefit Obligation at End of Year
$
1,367.1

$
1,279.0

$
37.3

$
40.6

 
 
 
 
 
Change in Plan Assets:
 
 
 
 
Fair Value of Plan Assets at Beginning of Year
$
1,115.6

$
1,038.9

$

$

Actual Return on Plan Assets
147.1

116.3



Employer Contributions
119.1

51.4

2.2

2.1

Foreign Currency Exchange
21.6

(34.6
)


Benefits Paid
(62.7
)
(58.4
)
(2.2
)
(2.1
)
Acquisition

4.8



Settlements

(2.9
)


Other

0.1



Fair Value of Plan Assets at End of Year
$
1,340.7

$
1,115.6

$

$

Plan Assets Less than Projected Benefit Obligation
$
(26.4
)
$
(163.4
)
$
(37.3
)
$
(40.6
)
 
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheets Consist of:
 
 
 
 
Pension Assets
$
20.4

$
3.0

$

$

Accrued Pension and Postretirement Benefits Liability — Current
$
(1.7
)
$
(1.7
)
$
(2.4
)
$
(2.8
)
Accrued Pension and Postretirement Benefits Liability — Noncurrent
$
(45.1
)
$
(164.7
)
$
(34.9
)
$
(37.8
)
Accumulated Other Comprehensive Income:
 
 
 
 
Net Actuarial Loss (Gain)
$
267.1

$
277.8

$
(20.1
)
$
(18.7
)
Prior Service Cost (Credit)
$
0.7

$
1.3

$
(0.8
)
$
(1.1
)
Weighted Average Calculations:
 
 
 
 
Discount Rate
3.49
%
4.01
%
3.64
%
4.10
%
Rates of Increase in Future Compensation Levels
2.09
%
1.45
%


Initial Health Care Cost Trend Rate


9.00
%
7.45
%
Ultimate Health Care Cost Trend Rate


4.50
%
4.50
%
Ultimate Year


2027

2024



The weighted average allocation of plan assets and the target allocation by asset category is as follows:
 
Target
2017
2016
Cash
%
2.4
%
1.3
%
Equity Securities
46.6

11.2

40.0

Fixed Income Securities
53.4

82.7

53.9

Other Investments

3.7

4.8

Total
100.0
%
100.0
%
100.0
%
The following tables set forth, by category and within the fair value hierarchy, the fair value of the Company’s pension assets at December 31, 2017 and 2016:

 
Fair Value Measurements at December 31, 2017
 
 
 
 
In millions
 
 
 
 
Total    
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Asset Category:
 
 
 
 
Cash (a)
$
32.2

$
0.3

$
31.9

$

Equity Securities:
 
 
 
 
Domestic (a)
140.5

4.1

136.4


Foreign (a)
9.1

5.8

3.3


Fixed Income Securities (a)
1,108.6

16.1

1,092.5


Other Investments:
 
 
 
 
Real estate
10.4

9.6


0.8

Diversified growth fund (b)
39.9


39.9


Total
$
1,340.7

$
35.9

$
1,304.0

$
0.8



 
Fair Value Measurements at December 31, 2016
In millions
Total
Quoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Asset Category:
 
 
 
 
Cash (a)
$
14.5

$
0.3

$
14.2

$

Equity Securities:
 
 
 
 
Domestic (a)
340.2

68.7

271.5


Foreign (a)
107.0

55.5

51.5


Fixed Income Securities (a)
600.8

194.6

406.2


Other Investments:
 
 
 
 
Real estate
14.8

14.8



Diversified growth fund (b)
38.3


38.3


Total
$
1,115.6

$
333.9

$
781.7

$

(a) 
The Level 2 investments are held in pooled funds and fair value is determined by net asset value, based on the underlying investments, as reported on the valuation date.
(b) 
The fund invests in a combination of traditional investments (equities, bonds, and foreign exchange), seeking to achieve returns through active asset allocation over a three to five year horizon.
A reconciliation of fair value measurements of plan assets using significant unobservable inputs (Level 3) is as follows:

 
 
In millions
2017
2016
Balance at January 1,
$

$
35.9

Transfers (Out) In
0.8

(35.9
)
Return on Assets Held at December 31


Balance at December 31,
$
0.8

$

A one-percentage-point change in assumed health care cost trend rates would have the following effects on 2017 data:

 
One Percentage Point
In millions
Increase
Decrease
Health Care Cost Trend Rate Sensitivity:
 
 
Effect on Total Interest and Service Cost Components
$
0.1

$
(0.1
)
Effect on Year-End Postretirement Benefit Obligation
$
1.9

$
(1.6
)
The following represents the Company’s estimated future pension and postretirement health care benefit payments through the year 2027:

In millions
Pension Plans
Postretirement Health Care Benefits
2018
$
67.1

$
2.4

2019
69.1

2.4

2020
71.7

2.7

2021
74.4

2.7

2022
76.7

2.9

2023— 2027
405.2

13.4

During 2018, amounts recorded in Accumulated Other Comprehensive Loss expected to be recognized in Net Periodic Benefit Costs are as follows:

 
 
In millions
Pension Benefits
Postretirement Health Care Benefits
Recognition of Prior Service Cost
$
0.4

$
(0.3
)
Recognition of Actuarial Loss (Gain)
5.6

(1.8
)
The Company's participation in these plans for the year ended December 31, 2017, 2016 and 2015 is shown in the table below:
 
 
Pension Protection Act Zone Status
 
Company Contributions (in millions)
 
 
Multi-employer Pension Fund
EIN/Pension Plan Number
2017
2016
FIP/RP Status Implemented
2017
2016
2015
Surcharge Imposed
Expiration Date of Bargaining Agreement
Central States Southeast and Southwest Areas Pension Fund
36-6044243/001
Red
Red
Yes
$
0.1

$
0.1

$
0.1

Yes
7/31/2018
PACE Industry Union - Management Pension Fund(a)
11-6166763/001
Red
Red
Yes
0.1

0.1


Yes
6/15/2018
Western Conference of Teamsters Pension Trust - Northwest Area(b)
91-6145047/001
Green
Green
No


0.1

No
4/30/2017
Graphic Communications Conference of International Brotherhood of Teamster Pension Fund(a)
52-6118568/001
Red
Red
Yes
0.3

0.2


Yes
5/01/2019
Total
 
 
 
 
$
0.5

$
0.4

$
0.2

 
 

Income Taxes (Tables)
The U.S. and international components of Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following:
 
Year Ended December 31,
In millions
2017
2016
2015
U.S.
$
227.5

$
290.0

$
307.6

International
25.5

29.4

51.7

Income before Income Taxes and Equity Income of Unconsolidated Entity
$
253.0

$
319.4

$
359.3

The provisions for Income Tax Benefit (Expense) on Income before Income Taxes and Equity Income of Unconsolidated Entity consisted of the following:
 
Year Ended December 31,
In millions
2017
2016
2015
Current Benefit (Expense):
 
 
 
U.S.
$
0.7

$
(5.1
)
$
(7.9
)
International
(9.2
)
(11.4
)
(12.5
)
Total Current
$
(8.5
)
$
(16.5
)
$
(20.4
)
 
 
 
 
Deferred Benefit (Expense):
 
 
 
U.S.
51.0

(78.8
)
(110.6
)
International
3.0

2.1

0.6

Total Deferred
$
54.0

$
(76.7
)
$
(110.0
)
Income Tax Benefit (Expense)
$
45.5

$
(93.2
)
$
(130.4
)
A reconciliation of Income Tax (Expense) Benefit on Income before Income Taxes and Equity Income of Unconsolidated Entity at the federal statutory rate of 35% compared with the Company’s actual Income Tax (Expense) Benefit is as follows:
 
Year Ended December 31,
In millions
2017
Percent
 
2016
Percent
 
2015
Percent
Income Tax Expense at U.S. Statutory Rate
$
(88.5
)
35.0
 %
 
$
(111.8
)
35.0
 %
 
$
(125.8
)
35.0
 %
U.S. State and Local Tax Expense
(8.7
)
3.4

 
(10.0
)
3.2

 
(11.4
)
3.2

IRS Agreement


 
22.8

(7.2
)
 


Permanent Items
(2.7
)
1.0

 
(1.3
)
0.5

 
1.7

(0.5
)
U.S. Tax Reform
138.0

(54.5
)
 


 


Change in Valuation Allowance due to Tax Reform
(2.0
)
0.8

 


 


Change in Valuation Allowance
(3.5
)
1.4

 
0.5

(0.2
)
 
1.8

(0.5
)
International Tax Rate Differences
3.2

(1.3
)
 
1.8

(0.6
)
 
2.4

(0.7
)
Foreign Withholding Tax
(0.4
)
0.2

 
(0.2
)
0.1

 
(0.2
)
0.1

Change in Tax Rates
(3.0
)
1.2

 
0.2

(0.1
)
 
1.0

(0.3
)
U.S. Federal & State Tax Credits
10.2

(4.0
)
 
3.5

(1.1
)
 
5.5

(1.5
)
Uncertain Tax Positions
(0.3
)
0.1

 
1.2

(0.4
)
 
(3.7
)
1.0

Other
3.2

(1.3
)
 
0.1


 
(1.7
)
0.5

Income Tax Benefit (Expense)
$
45.5

(18.0
)%
 
$
(93.2
)
29.2
 %
 
$
(130.4
)
36.3
 %
The tax effects of differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of December 31 were as follows:

In millions
2017
2016
Deferred Income Tax Assets:
 
 
Compensation Based Accruals
$
16.5

$
20.1

Net Operating Loss Carryforwards
114.9

165.3

Postretirement Benefits
25.6

88.0

Tax Credits
17.6

35.3

Other
45.9

55.4

Valuation Allowance
(51.5
)
(45.5
)
Total Deferred Income Tax Assets
$
169.0

$
318.6

Deferred Income Tax Liabilities:
 
 
Property, Plant and Equipment
(219.8
)
(334.6
)
Goodwill
(192.0
)
(284.5
)
Other Intangibles
(68.7
)
(99.6
)
Other
(3.5
)
(4.7
)
Net Noncurrent Deferred Income Tax Liabilities
$
(484.0
)
$
(723.4
)
Net Deferred Income Tax Liability
$
(315.0
)
$
(404.8
)
The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years ended December 31, 2017, 2016, and 2015, respectively:

 
December 31,
In millions
2017
2016
2015
Balance Beginning of Period
$
45.5

$
44.8

$
53.6

Charges to Costs and Expenses
5.5

1.2


Additions (Deductions)
0.5

(0.5
)
(8.8
)
Balance at End of Period
$
51.5

$
45.5

$
44.8

The U.S. federal net operating loss carryforwards expire as follows:

In millions
 
2024
$
84.0

2026
22.9

2027
93.0

2028
12.1

2029
114.6

Total
$
326.6

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

In millions
2017
2016
Balance at January 1,
$
10.1

$
9.1

Additions for Tax Positions of Current Year
0.6

1.5

Additions for Tax Positions of Prior Years
0.7

1.1

Reductions for Tax Positions of Prior Years
(0.9
)
(1.6
)
Balance at December 31,
$
10.5

$
10.1

Financial Instruments, Derivatives and Hedging Activities Current Interest Rate Swap Positions (Tables)
Schedule of Interest Rate Derivatives [Table Text Block]
The following table summarizes the Company's current interest rate swap positions for each period presented as of December 31, 2017:

Start
End
(In Millions) 
Notional Amount
Weighted Average Interest Rate
12/01/2017
10/01/2018
$250.0
1.16%

Fair Value Measurement (Tables)
The pre-tax effect of derivative instruments in cash flow hedging relationships on the Company’s Consolidated Statements of Operations for the year ended December 31, 2017 and 2016 is as follows:

 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
 
Location in Statement of Operations (Effective Portion)
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
 
Location in Statement of Operations (Ineffective Portion)
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
 
Year Ended December 31,
 
Year Ended December 31,
 
Year Ended December 31,
In millions
2017
2016
 
2017
2016
 
2017
2016
Commodity Contracts
$
3.6

$
(5.0
)
 
Cost of Sales
$
(1.2
)
$
12.5

 
Cost of Sales
$
(0.1
)
$
(0.1
)
Foreign Currency Contracts
3.1

(1.4
)
 
Other Income, Net
(0.3
)
0.5

 
Other Income, Net


Interest Rate Swap Agreements
(1.0
)
0.4

 
Interest Expense, Net
(0.6
)
2.0

 
Interest Expense, Net


Total
$
5.7

$
(6.0
)
 
 
$
(2.1
)
$
15.0

 
 
$
(0.1
)
$
(0.1
)

The effect of derivative instruments not designated as hedging instruments on the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 is as follows:

In millions
 
2017
2016
Foreign Currency Contracts
Other Expense, Net
$
9.7

$
3.3

The following is a rollforward of pre-tax Accumulated Derivative Instruments Income (Loss) which is included in the Company’s Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity as of December 31:

In millions
2017
2016
2015
Balance at January 1
$
7.5

$
(13.5
)
$
(12.5
)
Reclassification to earnings
(2.1
)
15.0

11.7

Current period change in fair value
(5.7
)
6.0

(12.7
)
Balance at December 31
$
(0.3
)
$
7.5

$
(13.5
)
Accumulated Other Comprehensive Income (Loss) (Tables)
The components of Accumulated Other Comprehensive (Loss) Income are as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
In millions
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
 
Pretax Amount
Tax Effect
Net Amount
Derivative Instruments (Loss) Gain
$
(7.8
)
$
2.9

$
(4.9
)
 
$
21.0

$
(8.0
)
$
13.0

 
$
(1.0
)
$
0.3

$
(0.7
)
Pension and Postretirement Benefit Plans
12.3

(3.5
)
8.8

 
7.9

(3.9
)
4.0

 
40.0

(13.2
)
26.8

Currency Translation Adjustment
44.9


44.9

 
(58.9
)

(58.9
)
 
(37.2
)

(37.2
)
Other Comprehensive Income (Loss)
$
49.4

$
(0.6
)
$
48.8

 
$
(30.0
)
$
(11.9
)
$
(41.9
)
 
$
1.8

$
(12.9
)
$
(11.1
)
The balances of Accumulated Other Comprehensive Loss, net of applicable taxes are as follows:
 
December 31,
In millions
2017
2016
Accumulated Derivative Instruments Loss
$
(10.3
)
$
(5.4
)
Pension and Postretirement Benefit Plans
(226.7
)
(235.5
)
Currency Translation Adjustment
(101.8
)
(146.7
)
Accumulated Other Comprehensive Loss
$
(338.8
)
$
(387.6
)
The following represents changes in Accumulated Other Comprehensive (Loss) Income by component for the year ended December 31, 2017 (a):
In millions
Derivatives Instruments
Pension Benefit Plans
Postretirement Benefit Plans
Currency Translation Adjustments
Total
Balance at December 31, 2016
$
(5.4
)
$
(250.2
)
$
14.7

$
(146.7
)
$
(387.6
)
Other Comprehensive (Loss) Income before Reclassifications
(3.6
)
3.3

2.6

44.9

47.2

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (b)
(1.3
)
4.4

(1.5
)

1.6

Net Current-period Other Comprehensive (Loss) Income
(4.9
)
7.7

1.1

44.9

48.8

Balance at December 31, 2017
$
(10.3
)
$
(242.5
)
$
15.8

$
(101.8
)
$
(338.8
)

(a) 
All amounts are net-of-tax.
(b) See following table for details about these reclassifications.

Commitments and Contingencies Commitments and Contingencies (Tables)
Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) and the future minimum lease payments at December 31, 2017, are as follows:
 
 
 
In millions
Capital Leases
Operating Leases
Total
2018
$
3.7

$
42.9

$
46.6

2019
3.4

32.8

36.2

2020
3.4

27.7

31.1

2021
3.3

22.5

25.8

2022
2.8

19.2

22.0

Thereafter
24.5

26.3

50.8

Total Minimum Lease Payments
41.1

171.4

212.5

Less: Amount Representing Interest
(11.1
)

(11.1
)
Present Value of Net Minimum Leases
$
30.0

$
171.4

$
201.4

Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) and the future minimum lease payments at December 31, 2017, are as follows:
 
 
 
In millions
Capital Leases
Operating Leases
Total
2018
$
3.7

$
42.9

$
46.6

2019
3.4

32.8

36.2

2020
3.4

27.7

31.1

2021
3.3

22.5

25.8

2022
2.8

19.2

22.0

Thereafter
24.5

26.3

50.8

Total Minimum Lease Payments
41.1

171.4

212.5

Less: Amount Representing Interest
(11.1
)

(11.1
)
Present Value of Net Minimum Leases
$
30.0

$
171.4

$
201.4

At December 31, 2017, total commitments under these contracts were as follows:

In millions
 
2018
$
151.8

2019
86.4

2020
43.0

2021
37.9

2022
38.0

Thereafter
310.6

Total
$
667.7

Business Segment and Geographic Area Information (Tables)
Business segment information is as follows:
 
Year Ended December 31,
In millions
2017
2016
2015
NET SALES:
 
 
 
Paperboard Mills
$
399.7

$
394.7

$
480.5

Americas Paperboard Packaging
3,243.6

3,193.1

3,012.1

Europe Paperboard Packaging
593.1

569.9

603.9

Corporate/Other/Eliminations
167.3

140.4

63.7

Total
$
4,403.7

$
4,298.1

$
4,160.2

 
 
 
 
INCOME (LOSS) FROM OPERATIONS:
 
 
 
Paperboard Mills(a)
$
(35.0
)
$
(3.7
)
$
17.1

Americas Paperboard Packaging
358.2

409.0

395.2

Europe Paperboard Packaging
37.3

25.4

40.8

Corporate and Other(b)
(17.8
)
(34.7
)
(26.0
)
Total
$
342.7

$
396.0

$
427.1

 
 
 
 
CAPITAL EXPENDITURES:
 
 
 
Paperboard Mills
$
111.4

$
184.2

$
145.0

Americas Paperboard Packaging
98.8

45.9

49.7

Europe Paperboard Packaging
17.3

37.1

39.9

Corporate and Other
32.6

27.4

9.5

Total
$
260.1

$
294.6

$
244.1

 
 
 
 
DEPRECIATION AND AMORTIZATION:
 
 
 
Paperboard Mills
$
143.7

$
120.3

$
124.7

Americas Paperboard Packaging
125.3

124.7

107.3

Europe Paperboard Packaging
42.1

41.1

40.1

Corporate and Other
19.2

13.2

8.4

Total
$
330.3

$
299.3

$
280.5

(a) 
Includes accelerated depreciation related to shutdown of Santa Clara in 2017.
(b) 
Includes expenses related to acquisitions, integration activities and shutdown costs (excluding accelerated depreciation).


 
December 31,
In millions
2017
2016
2015
ASSETS AT DECEMBER 31:
 
 
 
Paperboard Mills
$
1,487.0

$
1,496.1

$
1,445.0

Americas Paperboard Packaging
2,478.7

2,419.8

2,157.1

Europe Paperboard Packaging
607.1

491.9

574.0

Corporate and Other
290.2

195.6

80.0

Total
$
4,863.0

$
4,603.4

$
4,256.1




Business geographic area information is as follows:
 
Year Ended December 31,
In millions
2017
2016
2015
NET SALES:
 
 
 
Americas(a)
$
3,643.3

$
3,601.7

$
3,492.6

Europe
593.1

569.9

603.9

Asia Pacific
215.7

198.1

117.4

Corporate and Other
(48.4
)
(71.6
)
(53.7
)
Total
$
4,403.7

$
4,298.1

$
4,160.2


In millions
2017
2016
2015
ASSETS AT DECEMBER 31:
 
 
 
Americas(a)
$
4,046.4

$
3,923.2

$
3,590.4

Europe
607.1

491.9

574.0

Asia Pacific
209.5

188.3

91.7

Total
$
4,863.0

$
4,603.4

$
4,256.1


(a) Includes North America and Brazil.



Quarterly Financial Information (Unaudited) (Tables)
Quarterly Results of Operations
Results of operations for the four quarters of 2017 and 2016 are shown below.

 
2017
In millions, except per share amounts
First
Second
Third
Fourth
Total
Statement of Operations Data:
 
 
 
 
 
Net Sales
$
1,061.5

$
1,094.7

$
1,137.6

$
1,109.9

$
4,403.7

Gross Profit
175.0

176.9

191.6

176.0

719.5

Business Combinations and Shutdown and Other Special Charges, Net
8.6

6.1

3.6

12.8

31.1

Income from Operations
75.5

87.6

95.4

84.2

342.7

Net Income
37.0

42.0

47.3

173.9

300.2

Net Income Per Share — Basic
$
0.12

$
0.14

$
0.15

$
0.56

$
0.97

Net Income Per Share — Diluted(a)
$
0.12

$
0.14

$
0.15

$
0.56

$
0.96

(a) Does not cross foot due to rounding

 
2016
In millions, except per share amounts
First
Second
Third
Fourth
Total
Statement of Operations Data:
 
 
 
 
 
Net Sales
$
1,034.0

$
1,103.2

$
1,103.7

$
1,057.2

$
4,298.1

Gross Profit
207.7

204.8

191.3

188.1

791.9

Business Combinations and Shutdown and Other Special Charges, Net
10.5

5.3

7.4

13.9

37.1

Income from Operations
107.2

105.6

105.1

78.1

396.0

Net Income
57.5

77.8

57.8

34.9

228.0

 
 
 
 
 
 
Net Income Per Share — Basic
$
0.18

$
0.24

$
0.18

$
0.11

$
0.71

Net Income Per Share — Diluted
$
0.18

$
0.24

$
0.18

$
0.11

$
0.71




Earnings Per Share (Tables)
Earnings Per Share, Basic and Diluted
 
Year Ended December 31,
In millions, except per share data
2017
2016
2015
Net Income
$
300.2

$
228.0

$
230.1

Weighted Average Shares:
 
 
 
Basic
311.1

320.9

329.5

Dilutive effect of RSUs
0.8

0.6

1.2

Diluted
311.9

321.5

330.7

Earnings Per Share — Basic
$
0.97

$
0.71

$
0.70

Earnings Per Share — Diluted
$
0.96

$
0.71

$
0.70

Other Comprehensive (Loss) Income (Tables)
The balances of Accumulated Other Comprehensive Loss, net of applicable taxes are as follows:
 
December 31,
In millions
2017
2016
Accumulated Derivative Instruments Loss
$
(10.3
)
$
(5.4
)
Pension and Postretirement Benefit Plans
(226.7
)
(235.5
)
Currency Translation Adjustment
(101.8
)
(146.7
)
Accumulated Other Comprehensive Loss
$
(338.8
)
$
(387.6
)
The following represents changes in Accumulated Other Comprehensive (Loss) Income by component for the year ended December 31, 2017 (a):
In millions
Derivatives Instruments
Pension Benefit Plans
Postretirement Benefit Plans
Currency Translation Adjustments
Total
Balance at December 31, 2016
$
(5.4
)
$
(250.2
)
$
14.7

$
(146.7
)
$
(387.6
)
Other Comprehensive (Loss) Income before Reclassifications
(3.6
)
3.3

2.6

44.9

47.2

Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (b)
(1.3
)
4.4

(1.5
)

1.6

Net Current-period Other Comprehensive (Loss) Income
(4.9
)
7.7

1.1

44.9

48.8

Balance at December 31, 2017
$
(10.3
)
$
(242.5
)
$
15.8

$
(101.8
)
$
(338.8
)

(a) 
All amounts are net-of-tax.
(b) See following table for details about these reclassifications.

The following represents reclassifications out of Accumulated Other Comprehensive Income for the year ended December 31, 2017:

In millions
 
 
 
 
Details about Accumulated Other Comprehensive Income Components
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Affected Line Item in the Statement Where Net Income is Presented
Derivatives Instruments:
 
 
 
 
Commodity Contracts
 
$
(1.2
)
 
Cost of Sales
Foreign Currency Contracts
 
(0.3
)
 
Other Expense, Net
Interest Rate Swap Agreements
 
(0.6
)
 
Interest Expense, Net
 
 
(2.1
)
 
Total before Tax
 
 
0.8

 
Tax Expense
 
 
$
(1.3
)
 
Net of Tax
 
 
 
 
 
Amortization of Defined Benefit Pension Plans:
 
 
 
 
Prior Service Costs
 
$
0.5

(c) 
 
Actuarial Losses
 
6.5

(c) 
 
 
 
7.0

 
Total before Tax
 
 
(2.6
)
 
Tax Benefit
 
 
$
4.4

 
Net of Tax
 
 
 
 
 
Amortization of Postretirement Benefit Plans:
 
 
 
 
Prior Service Credits
 
$
(0.3
)
(c) 
 
Actuarial Gains
 
(2.1
)
(c) 
 
 
 
(2.4
)
 
Total before Tax
 
 
0.9

 
Tax Expense
 
 
$
(1.5
)
 
Net of Tax
 
 
 
 
 
Total Reclassifications for the Period
 
$
1.6

 
 
 

(c) 
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7 — Pensions and Other Postretirement Benefits).
Guarantor Condensed Consolidated Financial Statements (Tables)
 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,509.0

$
50.6

$
1,166.6

$
(322.5
)
$
4,403.7

Cost of Sales

2,934.0

40.7

1,032.0

(322.5
)
3,684.2

Selling, General and Administrative

257.4

3.5

81.8


342.7

Other (Income) Expense, Net

(6.1
)
0.1

9.0


3.0

Business Combinations and Shutdown and Other Special Charges, Net

19.4


11.7


31.1

Income from Operations

304.3

6.3

32.1


342.7

Interest Expense, Net

(84.9
)

(4.8
)

(89.7
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

219.4

6.3

27.3


253.0

Income Tax Benefit (Expense)

54.9

(3.5
)
(5.9
)

45.5

Income before Equity Income of Unconsolidated Entity

274.3

2.8

21.4


298.5

Equity Income of Unconsolidated Entity



1.7


1.7

Equity in Net Earnings of Subsidiaries
300.2

25.9

(6.1
)

(320.0
)

Net Income (Loss)
300.2

300.2

(3.3
)
23.1

(320.0
)
300.2

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
349.0

$
349.0

$
(26.0
)
$
78.5

$
(401.5
)
$
349.0


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,462.5

$
106.2

$
1,051.3

$
(321.9
)
$
4,298.1

Cost of Sales

2,812.2

88.6

927.3

(321.9
)
3,506.2

Selling, General and Administrative

264.4

11.2

80.1


355.7

Other (Income) Expense, Net

(3.8
)

6.9


3.1

Business Combinations and Shutdown and Other Special Charges, Net

32.9


4.2


37.1

Income from Operations

356.8

6.4

32.8


396.0

Interest (Expense) Income, Net

(72.3
)

(4.3
)

(76.6
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

284.5

6.4

28.5


319.4

Income Tax Expense

(81.5
)
(2.6
)
(9.1
)

(93.2
)
Income before Equity Income of Unconsolidated Entity

203.0

3.8

19.4


226.2

Equity Income of Unconsolidated Entity



1.8


1.8

Equity in Net Earnings of Subsidiaries
228.0

25.0

(6.1
)

(246.9
)

Net Income (Loss)
228.0

228.0

(2.3
)
21.2

(246.9
)
228.0

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
186.1

$
186.1

$
16.8

$
(65.7
)
$
(137.2
)
$
186.1




 
Year Ended December 31, 2015
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
Net Sales
$

$
3,363.6

$
1.6

$
1,037.2

$
(242.2
)
$
4,160.2

Cost of Sales

2,730.2

(1.1
)
884.2

(242.2
)
3,371.1

Selling, General and Administrative

274.9

2.5

70.3


347.7

Other (Income) Expense, Net

(10.7
)

3.0


(7.7
)
Business Combinations and Shutdown and Other Special Charges, Net

6.1


15.9


22.0

Income from Operations

363.1

0.2

63.8


427.1

Interest Expense, Net

(64.9
)

(2.9
)

(67.8
)
Income before Income Taxes and Equity Income of Unconsolidated Entity

298.2

0.2

60.9


359.3

Income Tax Expense

(115.8
)
(0.2
)
(14.4
)

(130.4
)
Income before Equity Income of Unconsolidated Entity

182.4


46.5


228.9

Equity Income of Unconsolidated Entity



1.2


1.2

Equity in Net Earnings of Subsidiaries
230.1

47.7

(1.3
)

(276.5
)

Net Income (Loss)
$
230.1

$
230.1

$
(1.3
)
$
47.7

$
(276.5
)
$
230.1

 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
219.0

$
219.0

$
(5.9
)
$
(2.7
)
$
(210.4
)
$
219.0

 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
ASSETS
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
Cash and Cash Equivalents
$
23.3

$
1.2

$

$
42.9

$

$
67.4

Receivables, Net

82.9


339.9


422.8

Inventories, Net

417.8


216.2


634.0

Intercompany

1,232.0

204.3


(1,436.3
)

Other Current Assets

33.6


12.1


45.7

Total Current Assets
23.3

1,767.5

204.3

611.1

(1,436.3
)
1,169.9

Property, Plant and Equipment, Net

1,532.9

0.1

334.2


1,867.2

Investment in Consolidated Subsidiaries
1,711.9


13.0


(1,724.9
)

Goodwill

1,154.8


168.2


1,323.0

Other Assets

362.1


140.8


502.9

Total Assets
$
1,735.2

$
4,817.3

$
217.4

$
1,254.3

$
(3,161.2
)
$
4,863.0

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
$

$
51.5

$

$
9.8

$

$
61.3

Accounts Payable

381.7


134.8


516.5

Interest Payable

14.3


0.6


14.9

Intercompany
420.0



1,033.1

(1,453.1
)

Other Accrued Liabilities
23.3

166.5


68.9


258.7

Total Current Liabilities
443.3

614.0


1,247.2

(1,453.1
)
851.4

Long-Term Debt

2,082.3


130.9


2,213.2

Deferred Income Tax Liabilities

295.0


26.8


321.8

Other Noncurrent Liabilities

114.1


70.6


184.7

 












EQUITY
 
 
 
 
 
 
Total Equity
1,291.9

1,711.9

217.4

(221.2
)
(1,708.1
)
1,291.9

Total Liabilities and Equity
$
1,735.2

$
4,817.3

$
217.4

$
1,254.3

$
(3,161.2
)
$
4,863.0


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
ASSETS
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
Cash and Cash Equivalents
$

$
0.9

$
1.2

$
57.0

$

$
59.1

Receivables, Net

183.7

10.1

233.0


426.8

Inventories, Net

403.8

16.1

163.0


582.9

Intercompany

1,077.5

73.3


(1,150.8
)

Other Current Assets

36.4


9.7


46.1

Total Current Assets

1,702.3

100.7

462.7

(1,150.8
)
1,114.9

Property, Plant and Equipment, Net

1,435.8

64.1

252.0


1,751.9

Investment in Consolidated Subsidiaries
1,362.9


12.3


(1,375.2
)

Goodwill

1,098.9

55.5

105.9


1,260.3

Other Assets

314.8

65.6

95.9


476.3

Total Assets
$
1,362.9

$
4,551.8

$
298.2

$
916.5

$
(2,526.0
)
$
4,603.4

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
$

$
26.0

$

$
37.4

$

$
63.4

Accounts Payable

354.3

8.5

103.7


466.5

Interest Payable

15.4




15.4

Intercompany
306.4



913.0

(1,219.4
)

Other Accrued Liabilities

163.2

3.0

68.3


234.5

Total Current Liabilities
306.4

558.9

11.5

1,122.4

(1,219.4
)
779.8

Long-Term Debt

2,042.4


46.1


2,088.5

Deferred Income Tax Liabilities

342.1

43.3

22.6


408.0

Other Noncurrent Liabilities

245.5


25.1


270.6

 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
Total Equity
1,056.5

1,362.9

243.4

(299.7
)
(1,306.6
)
1,056.5

Total Liabilities and Equity
$
1,362.9

$
4,551.8

$
298.2

$
916.5

$
(2,526.0
)
$
4,603.4

 
Year Ended December 31, 2017
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
300.2

$
300.2

$
(3.3
)
$
23.1

$
(320.0
)
$
300.2

Non-cash Items Included in Net Income (Loss):
 
 
 
 
 
 
Depreciation and Amortization

260.8

4.8

64.7


330.3

Deferred Income Taxes

(49.0
)
(1.1
)
(3.9
)

(54.0
)
Amount of Postretirement Expense Less Than Funding

(113.8
)

(13.3
)

(127.1
)
Gain on the Sale of Assets, net

(3.7
)



(3.7
)
Equity in Net Earnings of Subsidiaries
(300.2
)
(25.9
)
6.1


320.0


Other, Net

7.5


(0.4
)

7.1

Changes in Operating Assets and Liabilities

99.5

(7.7
)
(28.4
)

63.4

Net Cash Provided by (Used In) Operating Activities

475.6

(1.2
)
41.8


516.2

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(193.2
)

(47.7
)

(240.9
)
Packaging Machinery Spending

(19.1
)

(0.1
)

(19.2
)
Acquisition of Business, Net of Cash Acquired

(127.0
)

(62.4
)

(189.4
)
Proceeds Received from Sale of Assets, Net of Selling Costs

7.9




7.9

Other, Net
189.0

(15.5
)


(172.5
)
1.0

Net Cash Provided by (Used in) by Investing Activities
189.0

(346.9
)

(110.2
)
(172.5
)
(440.6
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(62.1
)




(62.1
)
Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

1,103.4


99.5


1,202.9

Payments on Revolving Credit Facilities

(1,026.6
)

(64.2
)

(1,090.8
)
Dividends Paid
(93.4
)




(93.4
)
Repurchase of Common Stock related to Share-Based Payments
(10.2
)




(10.2
)
Other, Net

(180.2
)

16.5

172.5

8.8

Net Cash (Used in) Provided by Financing Activities
(165.7
)
(128.4
)

51.8

172.5

(69.8
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



2.5


2.5

 
 
 
 
 
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
23.3

0.3

(1.2
)
(14.1
)

8.3

Cash and Cash Equivalents at Beginning of Period

0.9

1.2

57.0


59.1

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
23.3

$
1.2

$

$
42.9

$

$
67.4


 
Year Ended December 31, 2016
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
228.0

$
228.0

$
(2.3
)
$
21.2

$
(246.9
)
$
228.0

Non-cash Items Included in Net Income (Loss):












Depreciation and Amortization

233.4

12.9

53.0


299.3

Deferred Income Taxes

77.5

1.7

(2.5
)

76.7

Amount of Postretirement Expense Less Than Funding

(25.8
)

(5.5
)

(31.3
)
Equity in Net Earnings of Subsidiaries
(228.0
)
(25.0
)
6.1


246.9


Other, Net

30.8


(0.6
)

30.2

Changes in Operating Assets and Liabilities

44.9

(17.2
)
10.8


38.5

Net Cash Provided by Operating Activities

563.8

1.2

76.4


641.4

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(239.7
)

(38.9
)

(278.6
)
Package Machinery Spending

(9.4
)

(6.6
)

(16.0
)
Acquisition of Businesses, Net of Cash Acquired

(173.1
)

(159.6
)

(332.7
)
Other, Net
240.6

(166.0
)


(79.8
)
(5.2
)
Net Cash Provided by (Used in) Investing Activities
240.6

(588.2
)

(205.1
)
(79.8
)
(632.5
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(164.9
)




(164.9
)
Proceeds from Issuance or Modification of Debt

300.0




300.0

Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

1,136.0


64.0


1,200.0

Payments on Revolving Credit Facilities

(1,143.5
)

(92.3
)

(1,235.8
)
Debt Issuance Costs

(5.3
)



(5.3
)
Dividends Paid
(64.4
)




(64.4
)
Repurchase of Common Stock related to Share-Based Payments
(11.3
)




(11.3
)
Other, Net

(237.0
)

160.8

79.8

3.6

Net Cash (Used in) Provided by Financing Activities
(240.6
)
25.2


132.5

79.8

(3.1
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



(1.6
)

(1.6
)
 
 
 
 
 
 
 
Net Increase in Cash and Cash Equivalents

0.8

1.2

2.2


4.2

Cash and Cash Equivalents at Beginning of Period

0.1


54.8


54.9

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$

$
0.9

$
1.2

$
57.0

$

$
59.1


 
Year Ended December 31, 2015
In millions
Parent
Subsidiary Issuer
Combined Guarantor Subsidiaries
Combined Nonguarantor Subsidiaries
Consolidating Eliminations
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net Income (Loss)
$
230.1

$
230.1

$
(1.3
)
$
47.7

$
(276.5
)
$
230.1

Non-cash Items Included in Net Income:
 
 
 
 
 
 
Depreciation and Amortization

239.2

0.1

41.2


280.5

Deferred Income Taxes

108.5


1.5


110.0

Amount of Postretirement Expense Less Than Funding

(31.4
)

(8.0
)

(39.4
)
Loss on the Sale of Assets, net

1.9




1.9

Equity in Net Earnings of Subsidiaries
(230.1
)
(47.7
)
1.3


276.5


Other, Net

31.6


(6.5
)

25.1

Changes in Operating Assets and Liabilities
0.3

(99.0
)
0.3

79.4


(19.0
)
Net Cash Provided by Operating Activities
0.3

433.2

0.4

155.3


589.2

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital Spending

(188.7
)
(0.4
)
(39.8
)

(228.9
)
Packaging Machinery Spending

(12.5
)

(2.7
)

(15.2
)
Acquisition of Businesses, Net of Cash Acquired

(131.1
)

(32.1
)

(163.2
)
Other, Net
133.5

78.6


9.9

(214.5
)
7.5

Net Cash Provided by (Used in) Investing Activities
133.5

(253.7
)
(0.4
)
(64.7
)
(214.5
)
(399.8
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repurchase of Common Stock
(63.0
)




(63.0
)
Payments on Debt

(25.0
)



(25.0
)
Borrowings under Revolving Credit Facilities

831.3


71.7


903.0

Payments on Revolving Credit Facilities

(852.9
)

(100.9
)

(953.8
)
Dividends Paid
(49.3
)




(49.3
)
Repurchase of Common Stock Related to Share-Based Payments
(21.5
)




(21.5
)
Other, Net

(134.8
)

(81.0
)
214.5

(1.3
)
Net Cash (Used in) Provided by Financing Activities
(133.8
)
(181.4
)

(110.2
)
214.5

(210.9
)
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash



(5.2
)

(5.2
)
 
 
 
 
 
 
 
Net Decrease in Cash and Cash Equivalents

(1.9
)

(24.8
)

(26.7
)
Cash and Cash Equivalents at Beginning of Period

2.0


79.6


81.6

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$

$
0.1

$

$
54.8

$

$
54.9

Nature of Business and Summary of Significant Accounting Policies - Principals of Consolidation (Details)
Dec. 31, 2017
Investment [Line Items]
 
Ownership percentage
100.00% 
Rengo Riverwood Packaging, Ltd.
 
Investment [Line Items]
 
Ownership percentage
50.00% 
Nature of Business and Summary of Significant Accounting Policies - Accounts Receivable and Allowances (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
Receivables sold and derecognized
$ 1,800,000,000 
$ 1,300,000,000 
Amount collected by financial institution
1,600,000,000 
1,200,000,000 
Amounted funded by financial institution
134,000,000 
116,000,000 
Receivable from financial institution
102,000,000 
31,000,000 
Receivables sold
64,000,000 
66,000,000 
Amount transferred subject to continuing involvement
$ 583,000,000 
$ 376,000,000 
Nature of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) (Customer Concentration Risk, Sales Revenue, Net)
12 Months Ended
Dec. 31, 2017
customer
Dec. 31, 2016
customer
Customer Concentration Risk |
Sales Revenue, Net
 
 
Concentration Risk [Line Items]
 
 
Number of customers accounting for 10% or more of sales
Nature of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment [Line Items]
 
 
 
Spending threshold for capitalization of interest
$ 1.0 
 
 
Capitalized interest
1.2 
1.3 
0.8 
Depreciation
$ 268.5 
$ 240.0 
$ 227.6 
Buildings
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
40 years 
 
 
Land Improvements
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
15 years 
 
 
Machinery and Equipment |
Minimum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
3 years 
 
 
Machinery and Equipment |
Maximum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
40 years 
 
 
Furniture and Fixtures
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
10 years 
 
 
Automobiles, Trucks and Tractors |
Minimum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
3 years 
 
 
Automobiles, Trucks and Tractors |
Maximum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Useful life (in years)
5 years 
 
 
Nature of Business and Summary of Significant Accounting Policies - Finite-lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
$ 917.1 
$ 861.1 
 
Accumulated amortization
(480.6)
(415.8)
 
Net carrying amount
436.5 
445.3 
 
Amortization
61.8 
59.3 
52.9 
Future Amortization Expense, 2018
62 
 
 
Future Amortization Expense, 2019
60 
 
 
Future Amortization Expense, 2020
54 
 
 
Future Amortization Expense, 2021
50 
 
 
Future Amortization Expense, 2022
45 
 
 
Customer Relationships
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
786.9 
736.0 
 
Accumulated amortization
(377.2)
(321.0)
 
Net carrying amount
409.7 
415.0 
 
Patents, Trademarks and Licenses
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
130.2 
125.1 
 
Accumulated amortization
(103.4)
(94.8)
 
Net carrying amount
$ 26.8 
$ 30.3 
 
Nature of Business and Summary of Significant Accounting Policies - Goodwill (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
$ 1,260,300,000 
$ 1,167,800,000 
Acquisition of Businesses
55,400,000 
112,900,000 
Reallocation of Goodwill
 
Foreign Currency Effects
7,300,000 
(20,400,000)
Goodwill, ending balance
1,323,000,000 
1,260,300,000 
Paperboard Mills
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
408,500,000 
408,500,000 
Acquisition of Businesses
Reallocation of Goodwill
 
Foreign Currency Effects
Goodwill, ending balance
408,500,000 
408,500,000 
Americas Paperboard Packaging
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
789,400,000 
698,300,000 
Acquisition of Businesses
51,400,000.0 
98,800,000.0 
Reallocation of Goodwill
(4,000,000)
 
Foreign Currency Effects
2,200,000.0 
(7,700,000.0)
Goodwill, ending balance
839,000,000 
789,400,000 
Europe Paperboard Packaging
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
49,000,000 
61,000,000 
Acquisition of Businesses
6,300,000.0 
Reallocation of Goodwill
 
Foreign Currency Effects
4,200,000 
(12,000,000)
Goodwill, ending balance
59,500,000 
49,000,000 
Corporate and Other [Member]
 
 
Goodwill [Roll Forward]
 
 
Goodwill, beginning balance
13,400,000 
Acquisition of Businesses
(2,300,000.0)
14,100,000 
Reallocation of Goodwill
4,000,000 
 
Foreign Currency Effects
900,000 
(700,000)
Goodwill, ending balance
$ 16,000,000 
$ 13,400,000 
Nature of Business and Summary of Significant Accounting Policies - Research and Development and Restructuring and Other Special Charges, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Research and development expense
 
 
 
 
 
 
 
 
$ 14.4 
$ 14.9 
$ 13.8 
Restructuring and Other Special Charges, Net
 
 
 
 
 
 
 
 
 
 
 
Net Charges Associated with Business Combinations
 
 
 
 
 
 
 
 
16.2 
21.2 
14.0 
Other Special Charges
 
 
 
 
 
 
 
 
18.6 
15.9 
6.1 
Gain (Loss) on Sale of Assets and Asset Impairment Charges
 
 
 
 
 
 
 
 
(3.7)
1.9 
Restructuring and Other Special Charges
$ 12.8 
$ 3.6 
$ 6.1 
$ 8.6 
$ 13.9 
$ 7.4 
$ 5.3 
$ 10.5 
$ 31.1 
$ 37.1 
$ 22.0 
Nature of Business and Summary of Significant Accounting Policies - Capital Allocation Plan, Equity Offerings and Share Repurchases (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 12 Months Ended
Feb. 10, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Jan. 10, 2017
Feb. 4, 2015
Class of Stock [Line Items]
 
 
 
 
 
 
Share repurchase program, authorized amount
 
 
 
 
$ 250 
$ 250 
Number of shares repurchased
1.4 
4.5 
13.2 
4.6 
 
 
Shares repurchased, value
 
58 
169 
63 
 
 
Share price (in dollars per share)
 
$ 13.08 
$ 12.77 
$ 13.60 
 
 
Dividends declared
 
93.1 
71.7 
65.5 
 
 
Cash dividends paid
 
93.4 
64.4 
49.3 
 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
 
$ 210 
 
 
 
 
Nature of Business and Summary of Significant Accounting Policies - Adoption of New Accounting Standards (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
Excess Tax Benefit from Share-based Compensation, Operating Activities
$ 2 
Pre-2017 Excess Tax Benefit related to Share-Based Payments
$ 39.1 
Nature of Business and Summary of Significant Accounting Policies Dividends Declared (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dividends Declared [Abstract]
 
 
 
Dividends
$ 93.1 
$ 71.7 
$ 65.5 
Payments of Dividends
$ 93.4 
$ 64.4 
$ 49.3 
Supplemental Balance Sheet Data - Receivables, Net (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Trade
$ 279.2 
$ 370.0 
Less: Allowance
(7.2)
(6.7)
Trade Receivables, Net, Current
272.0 
363.3 
Other
150.8 
63.5 
Total
$ 422.8 
$ 426.8 
Supplemental Balance Sheet Data - Inventories, Net (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Finished Goods
$ 240.5 
$ 238.3 
Work in Progress
74.1 
73.5 
Raw Materials
229.4 
187.2 
Supplies
90.0 
83.9 
Total
$ 634.0 
$ 582.9 
Supplemental Balance Sheet Data - Other Current Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Prepaid Assets
$ 34.3 
$ 34.1 
Assets Held for Sale
10.2 
5.0 
Fair Value of Derivatives, current portion
1.2 
7.0 
Total
$ 45.7 
$ 46.1 
Supplemental Balance Sheet Data - Property, Plant and Equipment, Net (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, at Cost
$ 5,073.6 
$ 4,753.4 
Less: Accumulated Depreciation
(3,206.4)
(3,001.5)
Total
1,867.2 
1,751.9 
Land and Improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, at Cost
106.2 
105.9 
Buildings
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, at Cost
431.9 
404.1 
Machinery and Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, at Cost
4,384.5 
4,137.0 
Gross assets under capital lease
39.7 
25.6 
Accumulated depreciation related to assets under capital lease
7.4 
5.0 
Construction-in-Progress
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, Plant and Equipment, at Cost
$ 151.0 
$ 106.4 
Supplemental Balance Sheet Data - Other Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Accumulated Amortization of Debt Issuance Costs, Line of Credit Arrangements
$ 10.9 
$ 9.3 
Deferred Debt Issuance Costs, Net of Amortization of $10.9 million and $9.3 million for 2017 and 2016, respectively
2.9 
4.5 
Deferred Income Tax Assets
6.8 
3.2 
Pension Assets
20.4 
3.0 
Fair Value of Derivatives, noncurrent portion
0.7 
Other
36.3 
19.6 
Total
$ 66.4 
$ 31.0 
Supplemental Balance Sheet Data - Other Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Dividends Payable
$ 23.3 
$ 23.6 
Deferred Revenue, Current
11.6 
11.4 
Accrued Customer Rebates
15.5 
8.0 
Fair Value of Derivatives, current portion
1.2 
0.8 
Other Accrued Taxes
29.8 
22.3 
Accrued Payables
25.7 
10.8 
Other
38.2 
50.3 
Total
$ 145.3 
$ 127.2 
Supplemental Balance Sheet Data - Other Noncurrent Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred Revenue
$ 6.6 
$ 6.7 
Multi-employer Plans
29.0 
30.4 
Workers Compensation Reserve
10.9 
10.7 
Accrued Build-to-Suit Obligation
35.8 
Other
22.4 
20.3 
Total
$ 104.7 
$ 68.1 
Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flow Provided by (Used in) Operations Due to Changes in Operating Assets and Liabilities
 
 
 
Receivables, Net
$ 49.9 
$ 25.5 
$ (1.5)
Inventories, Net
(6.5)
10.5 
(19.7)
Prepaid Expenses
0.8 
(1.2)
0.1 
Other Assets
(32.8)
8.5 
(12.4)
Accounts Payable
27.0 
4.3 
12.7 
Compensation and Employee Benefits
3.5 
(21.7)
(1.9)
Income Taxes
2.3 
1.7 
0.9 
Interest Payable
(1.7)
5.0 
(1.1)
Other Accrued Liabilities
6.7 
12.8 
(3.9)
Other Noncurrent Liabilities
14.2 
(6.9)
7.8 
Total
63.4 
38.5 
(19.0)
Cash paid for interest and cash paid, net of refunds, for income taxes
 
 
 
Interest
81.8 
64.9 
60.9 
Income Taxes
$ 15.9 
$ 14.5 
$ 11.2 
Acquisitions - Additional Disclosures (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Income (Loss) from Operations
84.2 
95.4 
87.6 
75.5 
78.1 
105.1 
105.6 
107.2 
342.7 
396.0 
427.1 
Payments to Acquire Businesses, Net of Cash Acquired
 
 
 
 
 
 
 
 
189.4 
332.7 
163.2 
Acquisition of Business
 
 
 
 
 
 
 
 
 
 
163.2 
2017 Acquisitions [Member]
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets acquired and Liabilities Assumed, Pension and Postretirement Benefits
0.5 
 
 
 
 
 
 
 
0.5 
 
 
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Pension and Postretirement Benefits
 
 
 
 
 
 
 
 
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
 
 
 
 
 
 
 
 
18 years 
 
 
Revenues
 
 
 
 
 
 
 
 
44.5 
 
 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
1.5 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
 
 
 
 
 
 
 
189.0 
 
 
Acquisition of Business
 
 
 
 
 
 
 
 
192.5 
 
 
Total Purchase Consideration
 
 
 
 
 
 
 
 
206.5 
 
 
2016 Acquisitions [Member]
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
 
 
 
 
 
 
 
 
333.0 
 
Scenario, Previously Reported [Member] |
2017 Acquisitions [Member]
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Acquisition of Business
 
 
 
 
 
 
 
 
191.0 
 
 
Total Purchase Consideration
 
 
 
 
 
 
 
 
$ 205.0 
 
 
Acquisitions - Purchase Price Allocation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Business Acquisition [Line Items]
 
 
 
Acquisition of Business
 
 
$ 163.2 
Payments to Acquire Businesses, Net of Cash Acquired
189.4 
332.7 
163.2 
Goodwill
1,323.0 
1,260.3 
1,167.8 
2017 Acquisitions [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
18 years 
 
 
Acquisition of Business
192.5 
 
 
Business Combination, Consideration Transferred, Liabilities Incurred
14.0 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
189.0 
 
 
Total Purchase Consideration
206.5 
 
 
Cash and Cash Equivalents
3.1 
 
 
Receivables, Net
25.9 
 
 
Inventories, Net
31.0 
 
 
Property, Plant and Equipment, Net
54.5 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
43.3 
 
 
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles
43.3 
 
 
Other Assets
0.5 
 
 
Total Assets Acquired
158.3 
 
 
Current Liabilities
3.7 
 
 
Business Combination, Recognized Identifiable Assets acquired and Liabilities Assumed, Pension and Postretirement Benefits
0.5 
 
 
Deferred Tax Liabilities
4.6 
 
 
Other Noncurrent Liabilities
0.7 
 
 
Total Liabilities Assumed
9.5 
 
 
Net Assets Acquired
148.8 
 
 
Goodwill
57.7 
 
 
Total Estimated Fair Value of Net Assets Acquired
206.5 
 
 
Measurement Period Adjustments
 
 
 
Purchase Price
1.5 
 
 
Cash and Cash Equivalents
 
 
Receivables, Net
 
 
Inventories, Net
1.1 
 
 
Property, Plant and Equipment, Net
21.9 
 
 
Other Assets
 
 
Total Assets Acquired
66.3 
 
 
Current Liabilities
 
 
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Pension and Postretirement Benefits
 
 
Deferred Tax Liabilities
4.6 
 
 
Other Noncurrent Liabilities
 
 
Total Liabilities Assumed
4.6 
 
 
Net Assets Acquired
61.7 
 
 
Goodwill
(60.2)
 
 
Total Estimated Fair Value of Net Assets Acquired
1.5 
 
 
Previously Reported [Member] |
2017 Acquisitions [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Acquisition of Business
191.0 
 
 
Business Combination, Consideration Transferred, Liabilities Incurred
14.0 
 
 
Total Purchase Consideration
205.0 
 
 
Cash and Cash Equivalents
3.1 
 
 
Receivables, Net
25.9 
 
 
Inventories, Net
29.9 
 
 
Property, Plant and Equipment, Net
32.6 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
 
 
Other Assets
0.5 
 
 
Total Assets Acquired
92.0 
 
 
Current Liabilities
3.7 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Pension and Postretirement Benefits
0.5 
 
 
Deferred Tax Liabilities
 
 
Other Noncurrent Liabilities
0.7 
 
 
Total Liabilities Assumed
4.9 
 
 
Net Assets Acquired
87.1 
 
 
Goodwill
117.9 
 
 
Total Estimated Fair Value of Net Assets Acquired
$ 205.0 
 
 
Debt - Short-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Disclosure [Abstract]
 
 
Short Term Borrowings
$ 9.1 
$ 37.1 
Current Portion of Capital Lease Obligations
2.2 
1.3 
Current Portion of Long-Term Debt
50.0 
25.0 
Total
$ 61.3 
$ 63.4 
Weighted average interest rate on short-term borrowings
6.10% 
3.20% 
Debt - Long-Term Debt Instruments (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Aug. 11, 2016
Debt Instrument [Line Items]
 
 
 
Capital lease obligations
$ 30,000,000 
$ 17,900,000 
 
Long-term debt and capital lease obligations
2,277,900,000 
2,130,700,000 
 
Long-term Debt and Capital Lease Obligations, Current
52,200,000 
26,300,000 
 
Long-term debt and capital lease obligations, noncurrent portion
2,225,700,000 
2,104,400,000 
 
Less: unamortized deferred debt issuance costs
12,500,000 
15,900,000 
 
Total
2,213,200,000 
2,088,500,000 
 
Senior Notes |
Senior Notes with interest payable semi-annually at 4.125%, payable in 2024
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
300,000,000 
300,000,000 
 
Stated interest rate
4.125% 
 
 
Principal amount
 
 
300,000,000 
Interest rate at period end
4.19% 
 
 
Senior Notes |
Senior Notes with interest payable semi-annually at 4.95%, payable in 2022
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
250,000,000 
250,000,000 
 
Stated interest rate
4.875% 
 
4.125% 
Interest rate at period end
4.93% 
 
 
Senior Notes |
Senior Notes with interest payable semi-annually at 4.8%, payable in 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
425,000,000 
425,000,000 
 
Stated interest rate
4.75% 
 
 
Interest rate at period end
4.78% 
 
 
Term Loans
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
925,000,000 
950,000,000 
 
Interest rate at period end
2.84% 
 
 
Revolving Credit Facility
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
319,000,000 
184,800,000 
 
Interest rate at period end
2.55% 
 
 
Other Debt [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt, Gross
$ 28,900,000 
$ 3,000,000 
 
Debt - Long-Term Debt Maturities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Long-term Debt Maturities
 
 
2018
$ 50.0 
 
2019
1,194.8 
 
2020
20.7 
 
2021
425.4 
 
2022
250.6 
 
After 2022
306.4 
 
Total
$ 2,247.9 
$ 2,112.8 
Debt - Senior Notes (Details) (Senior Notes, USD $)
Dec. 31, 2017
Aug. 11, 2016
Senior Notes Payable in 2024
 
 
Debt Instrument [Line Items]
 
 
Principal amount
 
$ 300,000,000 
Stated interest rate
4.125% 
 
Senior Notes due in 2022
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.875% 
4.125% 
Deferred financing costs
 
$ 5,400,000 
Senior Notes due in 2021
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.75% 
 
Debt - Credit Facilities (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Senior Secured International Revolving Credit Facility
Dec. 31, 2017
Term Loans
Dec. 31, 2016
Term Loans
Dec. 31, 2017
Minimum
Dec. 31, 2017
Maximum
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Domestic Revolving Credit Facility, Commitment and Drawn Balance, Increase
$ 200 
 
 
 
 
 
Total Commitments
1,505.6 
188.1 
 
 
 
 
Basis spread on variable rate
 
 
 
 
12,500.00% 
20,000.00% 
Term Loan, Commitment and Drawn Balance, Reduction
125 
 
 
 
 
 
Long-term Debt, Gross
 
 
$ 925.0 
$ 950.0 
 
 
Debt - Credit Facilities - Commitments, Amounts Outstanding, and Amounts Available (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Line of Credit Facility [Line Items]
 
Total Commitments
$ 1,505.6 
Total Outstanding
357.0 
Total Available
1,128.0 
Standby letters of credit issued
20.6 
Senior Secured Domestic Revolving Credit Facility
 
Line of Credit Facility [Line Items]
 
Total Commitments
1,250.0 
Total Outstanding
218.8 
Total Available
1,010.6 
Senior Secured International Revolving Credit Facility
 
Line of Credit Facility [Line Items]
 
Total Commitments
188.1 
Total Outstanding
100.2 
Total Available
87.9 
Other International Facilities
 
Line of Credit Facility [Line Items]
 
Total Commitments
67.5 
Total Outstanding
38.0 
Total Available
$ 29.5 
Stock Incentive Plans - RSUs and Stock Awards Granted (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
RSUs - Employees
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Grants during period (shares)
1,547,049 
1,891,335 
1,751,823 
Weighted-average grant date fair value (in dollars per share)
$ 13.35 
$ 11.20 
$ 13.28 
Stock Awards - Board of Directors
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Grants during period (shares)
65,520 
59,880 
54,120 
Weighted-average grant date fair value (in dollars per share)
$ 13.43 
$ 13.36 
$ 14.78 
Stock Incentive Plans - Summary of Unvested RSU Activity (Details) (Restricted Stock Units (RSUs), USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restricted Stock Units (RSUs)
 
 
 
Shares
 
 
 
Outstanding - beginning of period (shares)
4,667,675 
5,439,588 
7,613,698 
Granted (shares)
1,547,049 
1,891,335 
1,751,823 
Released (shares)
(1,720,327)
(2,596,292)
(3,657,373)
Canceled (shares)
(622,463)
(66,956)
(268,560)
Outstanding - end of period (shares)
3,871,934 
4,667,675 
5,439,588 
Weighted Average Grant Date Fair Value
 
 
 
Outstanding - beginning of period (in dollars per share)
$ 12.21 
$ 10.22 
$ 7.20 
Granted (in dollars per share)
$ 13.35 
$ 11.20 
$ 13.28 
Released (in dollars per share)
$ 10.05 
$ 7.29 
$ 5.45 
Canceled (in dollars per share)
$ 13.13 
$ 12.74 
$ 9.32 
Outstanding - end of period (in dollars per share)
$ 13.10 
$ 12.21 
$ 10.22 
Stock Incentive Plans - Additional Disclosures (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Recognized share-based compensation expense
$ 8.9 
$ 20.2 
$ 20.4 
Restricted Stock Units (RSUs)
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Restricted stock unit vesting period
 
3 years 
 
Unrecognized compensation expense
22 
 
 
Unrecognized compensation expense, Weighted average recognition period (in Years)
2 years 
 
 
Aggregate fair value of awards vested
$ 23.2 
$ 32.0 
$ 56.1 
Pensions and Other Postretirement Benefits - Additional Disclosures (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2017
plans
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2015
Pension Benefit Plans
Dec. 31, 2017
Pension Benefit Plans
Dec. 31, 2016
Pension Benefit Plans
Dec. 31, 2017
Postretirement Benefits
Dec. 31, 2016
Postretirement Benefits
Dec. 31, 2017
Minimum
Dec. 31, 2017
Minimum
Pension Benefit Plans
Dec. 31, 2017
Maximum
Dec. 31, 2017
Maximum
Pension Benefit Plans
Dec. 31, 2017
UNITED STATES
Dec. 31, 2017
UNITED KINGDOM
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment for Pension Benefits
 
 
 
 
 
 
 
 
 
 
 
 
$ 75.0 
$ 6.8 
Settlement, reduction in projected benefit obligation
 
 
 
34.7 
 
 
 
 
 
 
 
 
 
 
Cash payment from existing plan assets
 
 
 
34.6 
2.9 
 
 
 
 
 
 
Accumulated Benefit Obligation
 
 
 
 
1,359.4 
1,270.0 
 
 
 
 
 
 
 
 
Company's contributions to its pension plans
 
 
 
 
119.1 
51.4 
2.2 
2.1 
 
 
 
 
 
 
Benefit payments made
 
 
 
 
62.7 
58.4 
2.2 
2.1 
 
 
 
 
 
 
Expected contributions in 2016
 
 
 
 
 
 
 
 
10 
 
15 
 
 
Asset allocation horizon term
 
 
 
 
 
 
 
 
3 years 
 
5 years 
 
 
 
Multiemployer Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multiemployer plans, plan contributions
2.3 
2.7 
 
 
 
 
 
 
 
 
 
 
 
 
Multiemployer withdrawal liability
29.0 
30.4 
 
 
 
 
 
 
 
 
 
 
 
 
Number of multiemployer plans
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of total plan contributions for the most recent plan year
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contributions to defined contribution plans
$ 37.7 
$ 34.7 
$ 29.0 
 
 
 
 
 
 
 
 
 
 
 
Pensions and Other Postretirement Benefits - Net Periodic Cost (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation
$ 37.4 
 
 
Pension Benefits
 
 
 
Components of Net Periodic Cost:
 
 
 
Service Cost
8.2 
10.0 
12.8 
Interest Cost
42.6 
43.8 
54.8 
Expected Return on Plan Assets
(64.1)
(61.3)
(74.4)
Amortization:
 
 
 
Prior Service Cost (Credit)
0.5 
0.8 
0.7 
Actuarial Loss (Gain)
6.5 
27.3 
19.7 
Net Curtailment/Settlement Loss
1.0 
1.5 
Other
0.8 
0.8 
0.9 
Net Periodic (Benefit) Cost
(5.5)
22.4 
16.0 
Postretirement Benefits
 
 
 
Components of Net Periodic Cost:
 
 
 
Service Cost
0.8 
0.8 
1.0 
Interest Cost
1.3 
1.3 
1.7 
Expected Return on Plan Assets
Amortization:
 
 
 
Prior Service Cost (Credit)
(0.3)
(0.2)
(0.3)
Actuarial Loss (Gain)
(2.1)
(2.1)
(1.6)
Net Curtailment/Settlement Loss
Other
Net Periodic (Benefit) Cost
$ (0.3)
$ (0.2)
$ 0.8 
Pensions and Other Postretirement Benefits - Assumptions Used (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Benefits
 
 
 
Weighted Average Assumptions:
 
 
 
Discount Rate
4.01% 
4.41% 
4.02% 
Rate of Increase in Future Compensation Levels
1.45% 
1.49% 
1.45% 
Expected Long-Term Rate of Return on Plan Assets
5.79% 
5.90% 
6.81% 
Initial Health Care Cost Trend Rate
0.00% 
0.00% 
0.00% 
Ultimate Health Care Cost Trend Rate
0.00% 
0.00% 
0.00% 
Postretirement Benefits
 
 
 
Weighted Average Assumptions:
 
 
 
Discount Rate
4.10% 
4.29% 
3.95% 
Rate of Increase in Future Compensation Levels
0.00% 
0.00% 
0.00% 
Expected Long-Term Rate of Return on Plan Assets
0.00% 
0.00% 
0.00% 
Initial Health Care Cost Trend Rate
7.45% 
7.80% 
7.38% 
Ultimate Health Care Cost Trend Rate
4.50% 
4.50% 
 
DefinedBenefitPlanAssumptionsUsedCalculatingNetPeriodicBenefitCostUltimateHealthCareCostTrendRate
4.50% 
4.50% 
4.96% 
Pensions and Other Postretirement Benefits - Net Funded Status (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation
 
$ 37,400,000 
 
 
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation
 
38,200,000 
 
 
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets
 
25,900,000 
 
 
Change in Plan Assets:
 
 
 
 
Fair Value of Plan Assets at End of Year
 
1,340,700,000 
1,115,600,000 
 
Amounts Recognized in the Consolidated Balance Sheets Consist of:
 
 
 
 
Pension Assets
 
20,400,000 
3,000,000 
 
Accrued Pension and Postretirement Benefits Liability — Noncurrent
 
(80,000,000)
(202,500,000)
 
Weighted Average Calculations:
 
 
 
 
Rates of Increase in Future Compensation Levels
 
2.09% 
1.45% 
 
Pension Benefits
 
 
 
 
Change in Benefit Obligation:
 
 
 
 
Benefit Obligation at Beginning of Year
 
1,279,000,000 
1,239,000,000 
 
Service Cost
 
8,200,000 
10,000,000 
12,800,000 
Interest Cost
 
42,600,000 
43,800,000 
54,800,000 
Actuarial Loss (Gain)
 
76,400,000 
79,300,000 
 
Foreign Currency Exchange
 
22,900,000 
(36,000,000)
 
Settlement/Curtailment (Gain)
 
(200,000)
(3,800,000)
 
Settlements
(34,700,000)
 
 
 
Benefit payments made
 
(62,700,000)
(58,400,000)
 
Acquisition
 
4,100,000 
 
Other
 
900,000 
1,000,000 
 
Benefit Obligation at End of Year
1,239,000,000 
1,367,100,000 
1,279,000,000 
1,239,000,000 
Change in Plan Assets:
 
 
 
 
Fair Value of Plan Assets at Beginning of Year
 
1,115,600,000 
1,038,900,000 
 
Actual Return on Plan Assets
 
147,100,000 
116,300,000 
 
Employer Contributions
 
119,100,000 
51,400,000 
 
Foreign Currency Exchange
 
21,600,000 
(34,600,000)
 
Benefits Paid
 
(62,700,000)
(58,400,000)
 
Acquisition
 
4,800,000 
 
Settlements
(34,600,000)
(2,900,000)
 
Other
 
100,000 
 
Fair Value of Plan Assets at End of Year
1,038,900,000 
1,340,700,000 
1,115,600,000 
1,038,900,000 
Plan Assets Less than Projected Benefit Obligation
 
(26,400,000)
(163,400,000)
 
Amounts Recognized in the Consolidated Balance Sheets Consist of:
 
 
 
 
Pension Assets
 
20,400,000 
3,000,000 
 
Accrued Pension and Postretirement Benefits Liability — Current
 
(1,700,000)
(1,700,000)
 
Accrued Pension and Postretirement Benefits Liability — Noncurrent
 
(45,100,000)
(164,700,000)
 
Accumulated Other Comprehensive Income:
 
 
 
 
Net Actuarial Loss (Gain)
 
267,100,000 
277,800,000 
 
Prior Service Cost (Credit)
 
700,000 
1,300,000 
 
Weighted Average Calculations:
 
 
 
 
Discount Rate
 
3.49% 
4.01% 
 
Initial Health Care Cost Trend Rate
 
0.00% 
0.00% 
 
Ultimate Health Care Cost Trend Rate
0.00% 
0.00% 
0.00% 
0.00% 
Postretirement Benefits
 
 
 
 
Change in Benefit Obligation:
 
 
 
 
Benefit Obligation at Beginning of Year
 
40,600,000 
40,800,000 
 
Service Cost
 
800,000 
800,000 
1,000,000 
Interest Cost
 
1,300,000 
1,300,000 
1,700,000 
Actuarial Loss (Gain)
 
(3,400,000)
(700,000)
 
Foreign Currency Exchange
 
100,000 
100,000 
 
Settlement/Curtailment (Gain)
 
300,000 
 
Benefit payments made
 
(2,200,000)
(2,100,000)
 
Acquisition
 
 
Other
 
100,000 
100,000 
 
Benefit Obligation at End of Year
40,800,000 
37,300,000 
40,600,000 
40,800,000 
Change in Plan Assets:
 
 
 
 
Fair Value of Plan Assets at Beginning of Year
 
 
Actual Return on Plan Assets
 
 
Employer Contributions
 
2,200,000 
2,100,000 
 
Foreign Currency Exchange
 
 
Benefits Paid
 
(2,200,000)
(2,100,000)
 
Acquisition
 
 
Settlements
 
 
Other
 
 
Fair Value of Plan Assets at End of Year
Plan Assets Less than Projected Benefit Obligation
 
(37,300,000)
(40,600,000)
 
Amounts Recognized in the Consolidated Balance Sheets Consist of:
 
 
 
 
Pension Assets
 
 
Accrued Pension and Postretirement Benefits Liability — Current
 
(2,400,000)
(2,800,000)
 
Accrued Pension and Postretirement Benefits Liability — Noncurrent
 
(34,900,000)
(37,800,000)
 
Accumulated Other Comprehensive Income:
 
 
 
 
Net Actuarial Loss (Gain)
 
(20,100,000)
(18,700,000)
 
Prior Service Cost (Credit)
 
$ (800,000)
$ (1,100,000)
 
Weighted Average Calculations:
 
 
 
 
Discount Rate
 
3.64% 
4.10% 
 
Initial Health Care Cost Trend Rate
 
9.00% 
7.45% 
 
Ultimate Health Care Cost Trend Rate
 
4.50% 
4.50% 
 
Pensions and Other Postretirement Benefits - Allocation of Plan Assets (Details)
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Allocation of Equities, Pension Plan De-Risking
10.00% 
45.00% 
Allocation of Fixed Income, Pension Plan De-Risking
90.00% 
55.00% 
Target plan asset allocations
100.00% 
 
Actual plan asset allocations
100.00% 
100.00% 
Cash
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Target plan asset allocations
0.00% 
 
Actual plan asset allocations
2.40% 
1.30% 
Equity Securities
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Target plan asset allocations
46.60% 
 
Actual plan asset allocations
11.20% 
40.00% 
Fixed Income Securities
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Target plan asset allocations
53.40% 
 
Actual plan asset allocations
82.70% 
53.90% 
Other Investments
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Target plan asset allocations
0.00% 
 
Actual plan asset allocations
3.70% 
4.80% 
Pensions and Other Postretirement Benefits - Fair Value of Plan Assets (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 1,340,700,000 
$ 1,115,600,000 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
35,900,000 
333,900,000 
 
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1,304,000,000 
781,700,000 
 
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
800,000 
35,900,000 
Cash
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
32,200,000 
14,500,000 
 
Cash |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
300,000 
300,000 
 
Cash |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
31,900,000 
14,200,000 
 
Cash |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Equity Securities, Domestic
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
140,500,000 
340,200,000 
 
Equity Securities, Domestic |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
4,100,000 
68,700,000 
 
Equity Securities, Domestic |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
136,400,000 
271,500,000 
 
Equity Securities, Domestic |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Equity Securities, Foreign
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
9,100,000 
107,000,000 
 
Equity Securities, Foreign |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
5,800,000 
55,500,000 
 
Equity Securities, Foreign |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
3,300,000 
51,500,000 
 
Equity Securities, Foreign |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Fixed Income Securities
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1,108,600,000 
600,800,000 
 
Fixed Income Securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
16,100,000 
194,600,000 
 
Fixed Income Securities |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1,092,500,000 
406,200,000 
 
Fixed Income Securities |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Real Estate
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
10,400,000 
14,800,000 
 
Real Estate |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
9,600,000 
14,800,000.0 
 
Real Estate |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Real Estate |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
800,000.0 
 
Diversified Growth Fund
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
39,900,000 
38,300,000 
 
Diversified Growth Fund |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
 
Diversified Growth Fund |
Significant Observable Inputs (Level 2)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
39,900,000.0 
38,300,000 
 
Diversified Growth Fund |
Significant Unobservable Inputs (Level 3)
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 0 
$ 0 
 
Pensions and Other Postretirement Benefits - Reconciliation of Fair Value of Plan Assets (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
Fair Value of Plan Assets at End of Year
$ 1,340,700,000 
$ 1,115,600,000 
Significant Unobservable Inputs (Level 3)
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
Fair Value of Plan Assets at Beginning of Year
35,900,000 
Transfers (Out) In
800,000 
(35,900,000)
Return on assets held
Fair Value of Plan Assets at End of Year
$ 800,000 
$ 0 
Pensions and Other Postretirement Benefits - Effect of One-Percentage-Point Change in Assumed Health Care Trend Rates (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Health Care Trend Rate Sensitivity:
 
Effect on Total Interest and Service Cost Components, One-Percentage-Point Increase
$ 0.1 
Effect on Total Interest and Service Cost Components, One-Percentage-Point Decrease
(0.1)
Effect on Year-End Postretirement Benefit Obligation, One-Percentage-Point Increase
1.9 
Effect on Year-End Postretirement Benefit Obligation, One-Percentage-Point Decrease
$ (1.6)
Pensions and Other Postretirement Benefits - Expected Benefit Payments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Pension Benefit Plans
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
2017
$ 67.1 
2018
69.1 
2019
71.7 
2020
74.4 
2021
76.7 
2022 - 2026
405.2 
Postretirement Benefits
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
2017
2.4 
2018
2.4 
2019
2.7 
2020
2.7 
2021
2.9 
2022 - 2026
$ 13.4 
Pensions and Other Postretirement Benefits - Amounts in Accumulated Other Comprehensive Loss to be Recognized (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Pension Benefit Plans
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
Recognition of Prior Service Cost
$ 0.4 
Recognition of Actuarial Loss (Gain)
5.6 
Postretirement Benefits
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
Recognition of Prior Service Cost
(0.3)
Recognition of Actuarial Loss (Gain)
$ (1.8)
Pensions and Other Postretirement Benefits - Multi-employer Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Company contributions
$ 0.5 
$ 0.4 
$ 0.2 
Central States Southeast and Southwest Areas Pension Fund
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Company contributions
0.1 
0.1 
0.1 
Pension Protection Act Zone Status
Red 
Red 
 
PIUMPF
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Company contributions
0.1 
0.1 
Pension Protection Act Zone Status
Red 
Red 
 
Western Conference of Teamsters Pension Trust - Northwest Area(b)
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Company contributions
0.1 
Pension Protection Act Zone Status
Green 
Green 
 
Graphic Communications Conference of International Brotherhood of Teamster Pension Fund [Member]
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Company contributions
$ 0.3 
$ 0.2 
$ 0 
Pension Protection Act Zone Status
Red 
Red 
 
Income Taxes - Components of Income before Income Tax, Domestic and Foreign (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
U.S.
$ 227.5 
$ 290.0 
$ 307.6 
International
25.5 
29.4 
51.7 
Income before Income Taxes and Equity Income of Unconsolidated Entity
$ 253.0 
$ 319.4 
$ 359.3 
Income Taxes - Components of Income Tax (Expense) Benefit (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
 
 
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent
 
 
1.20% 
(0.10%)
(0.30%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount
 
 
$ 3.0 
$ (0.2)
$ (1.0)
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount
 
 
88.5 
111.8 
125.8 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
 
 
35.00% 
35.00% 
35.00% 
Tax Benefit (Expense) related to The Tax Cuts and Jobs Act
 
 
(138.0)
Tax Benefit (Expense) related to The Tax Cuts and Jobs Act, Percent
 
 
(54.50%)
0.00% 
0.00% 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate after The Tax Cuts and Jobs Act, Percent
 
 
21.00% 
 
 
Provisional Amount Related to Remeasurement of Deferred Tax Balance
 
 
156.3 
 
 
Foreign Tax Effect, One-Time Transition Tax, The Tax Cuts and Jobs Act
 
 
20.5 
 
 
Provisional Tax Benefit, Equity Investment, The Tax Cuts and Jobs Act
 
 
1.7 
 
 
Valuation Allowance, State Deferred Tax Assets, The Tax Cuts and Jobs Act
 
 
0.9 
 
 
Provisional Adjustment, AMT Carryforward, The Tax Cuts and Jobs Act
 
 
0.6 
 
 
U.S. Federal R&D and Investment Tax Credits
 
 
5.2 
 
 
U.S. State R&D and Investment Tax Credits
 
 
5.0 
 
 
Reduction in U.S. State R&D and Investment Tax Credits for Uncertain Tax Positions
 
4.3 
 
 
 
Provisional Tax Benefit, Component of Income Tax Expense from Continuing Operations
 
 
136.0 
 
 
Current Benefit (Expense):
 
 
 
 
 
U.S.
 
 
0.7 
(5.1)
(7.9)
International
 
 
(9.2)
(11.4)
(12.5)
Total Current
 
 
(8.5)
(16.5)
(20.4)
Deferred Benefit (Expense):
 
 
 
 
 
U.S.
 
 
51.0 
(78.8)
(110.6)
International
 
 
3.0 
2.1 
0.6 
Total Deferred
 
 
54.0 
(76.7)
(110.0)
Income Tax Benefit (Expense)
 
 
45.5 
(93.2)
(130.4)
Effective Income Tax Rate Reconciliation, Percent
 
 
(18.00%)
29.20% 
36.30% 
Change in Valuation Allowance due to Tax Reform
 
 
2.0 
Change in Valuation Allowance due to Tax Reform
 
 
0.80% 
0.00% 
0.00% 
U.S. State and Local Tax Expense
 
 
8.7 
10.0 
11.4 
U.S. State and Local Tax Expense
 
 
3.40% 
3.20% 
3.20% 
IRS Agreement
 
 
22.8 
IRS Agreement
 
 
0.00% 
(7.20%)
0.00% 
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount
 
 
2.7 
1.3 
(1.7)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent
 
 
1.00% 
0.50% 
(0.50%)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount
 
 
3.5 
(0.5)
(1.8)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent
 
 
1.40% 
(0.20%)
(0.50%)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount
 
 
(3.2)
(1.8)
(2.4)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent
 
 
(1.30%)
(0.60%)
(0.70%)
Income Tax Reconciliation, Foreign Withholding Tax
 
 
0.4 
0.2 
0.2 
Effective Income Tax Rate Reconciliation, Foreign Withholding Tax
 
 
0.20% 
0.10% 
0.10% 
U.S. Federal & State Tax Credits
 
 
10.2 
3.5 
5.5 
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent
 
 
4.00% 
1.10% 
1.50% 
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount
 
 
0.3 
(1.2)
3.7 
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent
 
 
0.10% 
(0.40%)
1.00% 
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount
$ (22.4)
 
$ (3.2)
$ (0.1)
$ 1.7 
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent
 
 
(1.30%)
0.00% 
0.50% 
Income Taxes - Effective Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective income tax reconciliation, amount
 
 
 
 
Income Tax Expense at U.S. Statutory Rate
 
$ (88.5)
$ (111.8)
$ (125.8)
U.S. State and Local Tax Expense
 
(8.7)
(10.0)
(11.4)
IRS Agreement
 
22.8 
Permanent Items
 
(2.7)
(1.3)
1.7 
Change in Valuation Allowance
 
(3.5)
0.5 
1.8 
International Tax Rate Differences
 
3.2 
1.8 
2.4 
Foreign Withholding Tax
 
(0.4)
(0.2)
(0.2)
Change in Tax Rates
 
(3.0)
0.2 
1.0 
U.S. Federal & State Tax Credits
 
10.2 
3.5 
5.5 
Uncertain Tax Positions
 
(0.3)
1.2 
(3.7)
Other
22.4 
3.2 
0.1 
(1.7)
Income Tax Benefit (Expense)
 
45.5 
(93.2)
(130.4)
Effective income tax reconciliation, percent
 
 
 
 
Income Tax Expense at U.S. Statutory Rate
 
35.00% 
35.00% 
35.00% 
U.S. State and Local Tax Expense
 
3.40% 
3.20% 
3.20% 
IRS Agreement
 
0.00% 
7.20% 
0.00% 
Permanent Items
 
1.00% 
0.50% 
(0.50%)
Change in Valuation Allowance
 
1.40% 
(0.20%)
(0.50%)
International Tax Rate Differences
 
(1.30%)
(0.60%)
(0.70%)
Foreign Withholding Tax
 
0.20% 
0.10% 
0.10% 
Change in Tax Rates
 
1.20% 
(0.10%)
(0.30%)
U.S. Federal & State Tax Credits
 
(4.00%)
(1.10%)
(1.50%)
Uncertain Tax Positions
 
0.10% 
(0.40%)
1.00% 
Other
 
(1.30%)
0.00% 
0.50% 
Income Tax Expense, percent
 
(18.00%)
29.20% 
36.30% 
Tax Benefit (Expense) related to The Tax Cuts and Jobs Act
 
138.0 
Tax Benefit (Expense) related to The Tax Cuts and Jobs Act, Percent
 
(54.50%)
0.00% 
0.00% 
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance related to The Tax Cuts and Jobs Act, Amount
 
$ (2.0)
$ 0 
$ 0 
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance related to The Tax Cuts and Jobs Act, Percent
 
0.80% 
0.00% 
0.00% 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate after The Tax Cuts and Jobs Act, Percent
 
21.00% 
 
 
Income Taxes - Tax Credit Carryforwards (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Tax Credit Carryforward [Line Items]
 
 
 
U.S. Federal & State Research Credits established
$ 10.2 
$ 3.5 
$ 5.5 
Income Taxes - Operating Loss Carryforwards (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Mar. 31, 2017
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
$ 326.6 
$ 107.0 
Tax Credit carryforwards
17.6 
 
United States
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
243.9 
 
International
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
117.8 
 
2024
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
84.0 
 
2026
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
22.9 
 
2027
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
93.0 
 
2028
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
12.1 
 
2029
 
 
Operating Loss Carryforwards [Line Items]
 
 
Operating loss carryforwards
$ 114.6 
 
Income Taxes - Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits
 
 
Balance at January 1,
$ 10.1 
$ 9.1 
Additions for Tax Positions of Current Year
0.6 
1.5 
Additions for Tax Positions of Prior Years
0.7 
1.1 
Reductions for Tax Positions of Prior Years
(0.9)
(1.6)
Balance at December 31,
10.5 
10.1 
Gross unrecognized tax benefits that would affect the annual effective income tax rate
10.5 
 
Accrual for the payment of interest and penalties
0.1 
0.1 
Unrealized tax benefits expected to change in next twelve months
$ 0.1 
 
Financial Instruments, Derivatives and Hedging Activities (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Foreign Currency Movement Effect
 
 
 
Net currency exchange gains included in determining Income from Operations
$ 3,100,000 
$ 4,800,000 
$ 4,700,000 
Interest Swap Position Three [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Average Variable Interest Rate
1.16% 
 
 
Interest Rate Risk
 
 
 
Notional amount
250,000,000 
 
 
Foreign Currency Risk
 
 
 
Notional amount
250,000,000 
 
 
Derivatives Not Designated as Hedges
 
 
 
Notional amount
250,000,000 
 
 
Derivative Contracts Designated as Hedging Instruments |
Instruments in a Cash Flow Hedging Relationship |
Interest Rate Swap Agreements
 
 
 
Interest Rate Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Commodity Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Foreign Currency Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Derivative Contracts Designated as Hedging Instruments |
Instruments in a Cash Flow Hedging Relationship |
Commodity Contracts
 
 
 
Interest Rate Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Commodity Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Foreign Currency Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Derivative Contracts Designated as Hedging Instruments |
Instruments in a Cash Flow Hedging Relationship |
Forward Exchange Contract
 
 
 
Interest Rate Risk
 
 
 
Notional amount
66,100,000 
55,900,000 
 
Amounts excluded from the measure of effectiveness
 
Commodity Risk
 
 
 
Amounts excluded from the measure of effectiveness
 
Foreign Currency Risk
 
 
 
Notional amount
66,100,000 
55,900,000 
 
Amounts reclassified into earnings connected to forecasted transactions no longer considered probable
 
Amount of ineffectiveness related to changes in the fair value of derivatives
 
Amounts excluded from the measure of effectiveness
 
Derivatives Not Designated as Hedges
 
 
 
Notional amount
66,100,000 
55,900,000 
 
Derivative Contracts Not Designated as Hedging Instruments |
Forward Exchange Contract
 
 
 
Interest Rate Risk
 
 
 
Notional amount
90,100,000 
68,100,000 
 
Foreign Currency Risk
 
 
 
Notional amount
90,100,000 
68,100,000 
 
Derivatives Not Designated as Hedges
 
 
 
Notional amount
$ 90,100,000 
$ 68,100,000 
 
Fair Value Measurement - Additional Disclosures (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fair Value Disclosures [Abstract]
 
 
Gross derivative liability
$ 1.2 
$ 0.8 
Gross derivative asset
1.2 
7.7 
Long-term debt, fair value
2,299.1 
2,132.7 
Long-term debt, carrying value
$ 2,247.9 
$ 2,112.8 
Fair Value Measurement - Effect of Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Derivative Contracts Designated as Hedging Instruments |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
$ 5.7 
$ (6.0)
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
(2.1)
15.0 
Amount of Loss (Gain) Recognized in Statement of Operations (Ineffective Portion)
(0.1)
(0.1)
Derivative Contracts Designated as Hedging Instruments |
Commodity Contracts |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
3.6 
(5.0)
Derivative Contracts Designated as Hedging Instruments |
Commodity Contracts |
Cost of Sales |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
(1.2)
12.5 
Amount of Loss (Gain) Recognized in Statement of Operations (Ineffective Portion)
(0.1)
(0.1)
Derivative Contracts Designated as Hedging Instruments |
Foreign Currency Contracts |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
3.1 
(1.4)
Derivative Contracts Designated as Hedging Instruments |
Foreign Currency Contracts |
Other (Income) Expense, Net |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
(0.3)
0.5 
Amount of Loss (Gain) Recognized in Statement of Operations (Ineffective Portion)
Derivative Contracts Designated as Hedging Instruments |
Interest Rate Swap Agreements |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss
(1.0)
0.4 
Derivative Contracts Designated as Hedging Instruments |
Interest Rate Swap Agreements |
Interest Expense, Net |
Instruments in a Cash Flow Hedging Relationship
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
(0.6)
2.0 
Amount of Loss (Gain) Recognized in Statement of Operations (Ineffective Portion)
Derivative Contracts Not Designated as Hedging Instruments |
Foreign Currency Contracts |
Other (Income) Expense, Net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss (Gain) Recognized in Statement of Operations (Effective Portion)
$ 9.7 
$ 3.3 
Fair Value Measurement - Accumulated Derivative Instruments (Loss) Gain (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cumulative Changes in Derivative Net Gain (Loss) [Roll Forward]
 
 
 
Balance at beginning of period
$ 7.5 
$ (13.5)
$ (12.5)
Reclassification to earnings
(2.1)
15.0 
11.7 
Current period change in fair value
(5.7)
6.0 
(12.7)
Balance at end of period
(0.3)
7.5 
(13.5)
Expected reclassification of pre-tax losses in the next twelve months from ACOL to earnings
$ 0.2 
 
 
Accumulated Other Comprehensive Income (Loss) - Change in the Components of AOCI (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Equity [Abstract]
 
 
 
Derivative Instruments Gain (Loss), Pretax
$ (7.8)
$ 21.0 
$ (1.0)
Derivative Instruments Gain (Loss), Tax Effect
2.9 
(8.0)
0.3 
Derivative Instruments Gain (Loss), Net Amount
(4.9)
13.0 
(0.7)
Pension and Postretirement Benefit Plans, Pretax Amount
12.3 
7.9 
40.0 
Pension and Postretirement Benefit Plans, Tax Effect
(3.5)
(3.9)
(13.2)
Pension and Postretirement Benefit Plans, Net Amount
8.8 
4.0 
26.8 
Currency Translation Adjustment, Pretax Amount
44.9 
(58.9)
(37.2)
Currency Translation Adjustment, Tax Effect
Currency Translation Adjustment, Net Amount
44.9 
(58.9)
(37.2)
Other Comprehensive Income (Loss), Pretax Amount
49.4 
(30.0)
1.8 
Other Comprehensive Income (Loss), Tax Effect
(0.6)
(11.9)
(12.9)
Net Current-period Other Comprehensive (Loss) Income
$ 48.8 
$ (41.9)
$ (11.1)
Accumulated Other Comprehensive Income (Loss) - Balances of AOCI (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Equity [Abstract]
 
 
Accumulated Derivative Instruments Loss
$ (10.3)
$ (5.4)
Pension and Postretirement Benefit Plans
(226.7)
(235.5)
Currency Translation Adjustment
(101.8)
(146.7)
Accumulated Other Comprehensive Loss
$ (338.8)
$ (387.6)
Commitments and Contingencies Commitments and Contingencies - Capital and Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
2018
$ 3.7 
 
 
2019
3.4 
 
 
2020
3.4 
 
 
2021
3.3 
 
 
2022
2.8 
 
 
Thereafter
24.5 
 
 
Total Minimum Lease Payments
41.1 
 
 
Less: Amount Representing Interest
(11.1)
 
 
Present Value of Net Minimum Leases
30.0 
 
 
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
2018
42.9 
 
 
2019
32.8 
 
 
2020
27.7 
 
 
2021
22.5 
 
 
2022
19.2 
 
 
Thereafter
26.3 
 
 
Total Minimum Lease Payments
171.4 
 
 
Capital and Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
 
 
2018
46.6 
 
 
2019
36.2 
 
 
2020
31.1 
 
 
2021
25.8 
 
 
2022
22.0 
 
 
Thereafter
50.8 
 
 
Total Minimum Lease Payments
212.5 
 
 
Less: amount representing interest
(11.1)
 
 
Present Value of Net Minimum Leases
201.4 
 
 
Total rental expense
$ 38 
$ 35 
$ 29 
Commitments and Contingencies Commitments and Contingencies - Long-term Purchase Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
$ 667.7 
2018
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
151.8 
2019
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
86.4 
2020
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
43.0 
2021
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
37.9 
2022
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
38.0 
Thereafter
 
Long-term Purchase Commitment [Line Items]
 
Long-term purchase commitments
$ 310.6 
Business Segment and Geographic Area Information - Segment Reporting, by Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Income (Loss) from Operations
84.2 
95.4 
87.6 
75.5 
78.1 
105.1 
105.6 
107.2 
342.7 
396.0 
427.1 
Capital Expenditures
 
 
 
 
 
 
 
 
260.1 
294.6 
244.1 
Depreciation and Amortization
 
 
 
 
 
 
 
 
330.3 
299.3 
280.5 
Assets
4,863.0 
 
 
 
4,603.4 
 
 
 
4,863.0 
4,603.4 
4,256.1 
Operating Segments |
Paperboard Mills
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
399.7 
394.7 
480.5 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
(35.0)
(3.7)
17.1 
Capital Expenditures
 
 
 
 
 
 
 
 
111.4 
184.2 
145.0 
Depreciation and Amortization
 
 
 
 
 
 
 
 
143.7 
120.3 
124.7 
Assets
1,487.0 
 
 
 
1,496.1 
 
 
 
1,487.0 
1,496.1 
1,445.0 
Operating Segments |
Americas Paperboard Packaging
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
3,243.6 
3,193.1 
3,012.1 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
358.2 
409.0 
395.2 
Capital Expenditures
 
 
 
 
 
 
 
 
98.8 
45.9 
49.7 
Depreciation and Amortization
 
 
 
 
 
 
 
 
125.3 
124.7 
107.3 
Assets
2,478.7 
 
 
 
2,419.8 
 
 
 
2,478.7 
2,419.8 
2,157.1 
Operating Segments |
Europe Paperboard Packaging
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
593.1 
569.9 
603.9 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
37.3 
25.4 
40.8 
Capital Expenditures
 
 
 
 
 
 
 
 
17.3 
37.1 
39.9 
Depreciation and Amortization
 
 
 
 
 
 
 
 
42.1 
41.1 
40.1 
Assets
607.1 
 
 
 
491.9 
 
 
 
607.1 
491.9 
574.0 
Operating Segments |
Corporate, Reconciling Items, And Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
167.3 
140.4 
63.7 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
(17.8)
(34.7)
(26.0)
Capital Expenditures
 
 
 
 
 
 
 
 
32.6 
27.4 
9.5 
Depreciation and Amortization
 
 
 
 
 
 
 
 
19.2 
13.2 
8.4 
Assets
$ 290.2 
 
 
 
$ 195.6 
 
 
 
$ 290.2 
$ 195.6 
$ 80.0 
Business Segment and Geographic Area Information - Segment Reporting, by Geographic Area (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Assets
4,863.0 
 
 
 
4,603.4 
 
 
 
4,863.0 
4,603.4 
4,256.1 
Reportable Geographical Components |
Americas
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
3,643.3 
3,601.7 
3,492.6 
Assets
4,046.4 
 
 
 
3,923.2 
 
 
 
4,046.4 
3,923.2 
3,590.4 
Reportable Geographical Components |
Europe
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
593.1 
569.9 
603.9 
Assets
607.1 
 
 
 
491.9 
 
 
 
607.1 
491.9 
574.0 
Reportable Geographical Components |
Asia Pacific
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
215.7 
198.1 
117.4 
Assets
209.5 
 
 
 
188.3 
 
 
 
209.5 
188.3 
91.7 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
$ (48.4)
$ (71.6)
$ (53.7)
Quarterly Financial Information (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Gross Profit
176.0 
191.6 
176.9 
175.0 
188.1 
191.3 
204.8 
207.7 
719.5 
791.9 
 
Business Combinations and Shutdown and Other Special Charges, Net
12.8 
3.6 
6.1 
8.6 
13.9 
7.4 
5.3 
10.5 
31.1 
37.1 
22.0 
Income from Operations
84.2 
95.4 
87.6 
75.5 
78.1 
105.1 
105.6 
107.2 
342.7 
396.0 
427.1 
Net Income
$ 173.9 
$ 47.3 
$ 42.0 
$ 37.0 
$ 34.9 
$ 57.8 
$ 77.8 
$ 57.5 
$ 300.2 
$ 228.0 
$ 230.1 
Net Income Per Share Attributable to Graphic Packaging Holding Company - Basic (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.97 
$ 0.71 
$ 0.70 
Net Income Per Share Attributable to Graphic Packaging Holding Company - Diluted (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.96 
$ 0.71 
$ 0.70 
Earnings Per Share - Basic and Diluted (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
 
 
 
 
 
 
$ 300.2 
$ 228.0 
$ 230.1 
Net Income
$ 173.9 
$ 47.3 
$ 42.0 
$ 37.0 
$ 34.9 
$ 57.8 
$ 77.8 
$ 57.5 
$ 300.2 
$ 228.0 
$ 230.1 
Weighted Average Shares:
 
 
 
 
 
 
 
 
 
 
 
Basic (in shares)
 
 
 
 
 
 
 
 
311.1 
320.9 
329.5 
Dilutive effect of RSUs (in shares)
 
 
 
 
 
 
 
 
0.8 
0.6 
1.2 
Diluted (in shares)
 
 
 
 
 
 
 
 
311.9 
321.5 
330.7 
Earnings Per Share - Basic (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.97 
$ 0.71 
$ 0.70 
Earnings Per Share - Diluted (in dollars per share)
$ 0.56 
$ 0.15 
$ 0.14 
$ 0.12 
$ 0.11 
$ 0.18 
$ 0.24 
$ 0.18 
$ 0.96 
$ 0.71 
$ 0.70 
Other Comprehensive (Loss) Income - Changes in AOCI (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning balance
$ (387.6)
 
 
Other Comprehensive (Loss) Income before Reclassifications
47.2 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
1.6 
 
 
Net Current-period Other Comprehensive (Loss) Income
48.8 
(41.9)
(11.1)
Ending balance
(338.8)
(387.6)
 
Derivatives Instruments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning balance
(5.4)
 
 
Other Comprehensive (Loss) Income before Reclassifications
(3.6)
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(1.3)
 
 
Net Current-period Other Comprehensive (Loss) Income
(4.9)
 
 
Ending balance
(10.3)
 
 
Currency Translation Adjustment
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning balance
(146.7)
 
 
Other Comprehensive (Loss) Income before Reclassifications
44.9 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
Net Current-period Other Comprehensive (Loss) Income
44.9 
 
 
Ending balance
(101.8)
 
 
Pension and Postretirement Benefit Plans |
Pension Benefits
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning balance
(250.2)
 
 
Other Comprehensive (Loss) Income before Reclassifications
3.3 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
4.4 
 
 
Net Current-period Other Comprehensive (Loss) Income
7.7 
 
 
Ending balance
(242.5)
 
 
Pension and Postretirement Benefit Plans |
Postretirement Benefit Plans
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning balance
14.7 
 
 
Other Comprehensive (Loss) Income before Reclassifications
2.6 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(1.5)
 
 
Net Current-period Other Comprehensive (Loss) Income
1.1 
 
 
Ending balance
$ 15.8 
 
 
Other Comprehensive (Loss) Income - Reclassifications out of AOCI (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Cost of Sales
$ 3,684.2 
$ 3,506.2 
$ 3,371.1 
Other Expense (Income), Net
3.0 
3.1 
(7.7)
Total before Tax
(253.0)
(319.4)
(359.3)
Income Tax Expense (Benefit)
(45.5)
93.2 
130.4 
Net of Tax
(300.2)
(228.0)
(230.1)
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net of Tax
1.6 
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Derivatives Instruments
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before Tax
(2.1)
 
 
Income Tax Expense (Benefit)
0.8 
 
 
Net of Tax
(1.3)
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Derivatives Instruments |
Commodity Contracts
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Cost of Sales
(1.2)
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Derivatives Instruments |
Foreign Currency Contracts
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Other Expense (Income), Net
(0.3)
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Derivatives Instruments |
Interest Rate Swap Agreements
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Interest Expense, Net
(0.6)
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Pension and Postretirement Benefit Plans |
Pension Benefits
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Prior Service Costs (Credits)
0.5 
 
 
Actuarial Losses (Gains)
6.5 
 
 
Total before Tax
7.0 
 
 
Income Tax Expense (Benefit)
(2.6)
 
 
Net of Tax
4.4 
 
 
Reclassification out of Accumulated Other Comprehensive Income |
Pension and Postretirement Benefit Plans |
Postretirement Benefit Plans
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Prior Service Costs (Credits)
(0.3)
 
 
Actuarial Losses (Gains)
(2.1)
 
 
Total before Tax
(2.4)
 
 
Income Tax Expense (Benefit)
0.9 
 
 
Net of Tax
$ (1.5)
 
 
Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statements of Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Parent's ownership percentage
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
Net Sales
$ 1,109.9 
$ 1,137.6 
$ 1,094.7 
$ 1,061.5 
$ 1,057.2 
$ 1,103.7 
$ 1,103.2 
$ 1,034.0 
$ 4,403.7 
$ 4,298.1 
$ 4,160.2 
Cost of Sales
 
 
 
 
 
 
 
 
3,684.2 
3,506.2 
3,371.1 
Selling, General and Administrative
 
 
 
 
 
 
 
 
342.7 
355.7 
347.7 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
3.0 
3.1 
(7.7)
Business Combinations and Shutdown and Other Special Charges, Net
12.8 
3.6 
6.1 
8.6 
13.9 
7.4 
5.3 
10.5 
31.1 
37.1 
22.0 
Income (Loss) from Operations
84.2 
95.4 
87.6 
75.5 
78.1 
105.1 
105.6 
107.2 
342.7 
396.0 
427.1 
Interest Expense, Net
 
 
 
 
 
 
 
 
(89.7)
(76.6)
(67.8)
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
253.0 
319.4 
359.3 
Income Tax Expense
 
 
 
 
 
 
 
 
45.5 
(93.2)
(130.4)
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
298.5 
226.2 
228.9 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
1.7 
1.8 
1.2 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
Net Income
173.9 
47.3 
42.0 
37.0 
34.9 
57.8 
77.8 
57.5 
300.2 
228.0 
230.1 
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
300.2 
228.0 
230.1 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
349.0 
186.1 
219.0 
Reportable Legal Entities |
Parent
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
Cost of Sales
 
 
 
 
 
 
 
 
Selling, General and Administrative
 
 
 
 
 
 
 
 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
Business Combinations and Shutdown and Other Special Charges, Net
 
 
 
 
 
 
 
 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
Interest Expense, Net
 
 
 
 
 
 
 
 
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
Income Tax Expense
 
 
 
 
 
 
 
 
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
300.2 
228.0 
230.1 
Net Income
 
 
 
 
 
 
 
 
300.2 
228.0 
230.1 
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
300.2 
228.0 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
349.0 
186.1 
219.0 
Reportable Legal Entities |
Subsidiary Issuer
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
3,509.0 
3,462.5 
3,363.6 
Cost of Sales
 
 
 
 
 
 
 
 
2,934.0 
2,812.2 
2,730.2 
Selling, General and Administrative
 
 
 
 
 
 
 
 
257.4 
264.4 
274.9 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
(6.1)
(3.8)
(10.7)
Business Combinations and Shutdown and Other Special Charges, Net
 
 
 
 
 
 
 
 
19.4 
32.9 
6.1 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
304.3 
356.8 
363.1 
Interest Expense, Net
 
 
 
 
 
 
 
 
(84.9)
(72.3)
(64.9)
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
219.4 
284.5 
298.2 
Income Tax Expense
 
 
 
 
 
 
 
 
54.9 
(81.5)
(115.8)
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
274.3 
203.0 
182.4 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
25.9 
25.0 
47.7 
Net Income
 
 
 
 
 
 
 
 
300.2 
228.0 
230.1 
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
300.2 
228.0 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
349.0 
186.1 
219.0 
Reportable Legal Entities |
Combined Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
50.6 
106.2 
1.6 
Cost of Sales
 
 
 
 
 
 
 
 
40.7 
88.6 
(1.1)
Selling, General and Administrative
 
 
 
 
 
 
 
 
3.5 
11.2 
2.5 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
0.1 
Business Combinations and Shutdown and Other Special Charges, Net
 
 
 
 
 
 
 
 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
6.3 
6.4 
0.2 
Interest Expense, Net
 
 
 
 
 
 
 
 
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
6.3 
6.4 
0.2 
Income Tax Expense
 
 
 
 
 
 
 
 
(3.5)
(2.6)
(0.2)
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
2.8 
3.8 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
(6.1)
(6.1)
(1.3)
Net Income
 
 
 
 
 
 
 
 
(3.3)
(2.3)
(1.3)
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
(3.3)
(2.3)
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
(26.0)
16.8 
(5.9)
Reportable Legal Entities |
Combined Nonguarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
1,166.6 
1,051.3 
1,037.2 
Cost of Sales
 
 
 
 
 
 
 
 
1,032.0 
927.3 
884.2 
Selling, General and Administrative
 
 
 
 
 
 
 
 
81.8 
80.1 
70.3 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
9.0 
6.9 
3.0 
Business Combinations and Shutdown and Other Special Charges, Net
 
 
 
 
 
 
 
 
11.7 
4.2 
15.9 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
32.1 
32.8 
63.8 
Interest Expense, Net
 
 
 
 
 
 
 
 
(4.8)
(4.3)
(2.9)
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
27.3 
28.5 
60.9 
Income Tax Expense
 
 
 
 
 
 
 
 
(5.9)
(9.1)
(14.4)
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
21.4 
19.4 
46.5 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
1.7 
1.8 
1.2 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
Net Income
 
 
 
 
 
 
 
 
23.1 
21.2 
47.7 
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
23.1 
21.2 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
78.5 
(65.7)
(2.7)
Consolidating Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
(322.5)
(321.9)
(242.2)
Cost of Sales
 
 
 
 
 
 
 
 
(322.5)
(321.9)
(242.2)
Selling, General and Administrative
 
 
 
 
 
 
 
 
Other (Income) Expense, Net
 
 
 
 
 
 
 
 
Business Combinations and Shutdown and Other Special Charges, Net
 
 
 
 
 
 
 
 
Income (Loss) from Operations
 
 
 
 
 
 
 
 
Interest Expense, Net
 
 
 
 
 
 
 
 
Income before Income Taxes and Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
Income Tax Expense
 
 
 
 
 
 
 
 
Income before Equity Income of Unconsolidated Entities
 
 
 
 
 
 
 
 
Equity Income of Unconsolidated Entity
 
 
 
 
 
 
 
 
Equity in Net Income (Loss) of Subsidiaries
 
 
 
 
 
 
 
 
(320.0)
(246.9)
(276.5)
Net Income
 
 
 
 
 
 
 
 
(320.0)
(246.9)
(276.5)
Net Income Attributable Graphic Packaging Holding Company
 
 
 
 
 
 
 
 
(320.0)
(246.9)
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
$ (401.5)
$ (137.2)
$ (210.4)
Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current Assets:
 
 
 
 
Cash and Cash Equivalents
$ 67.4 
$ 59.1 
$ 54.9 
$ 81.6 
Receivables, Net
422.8 
426.8 
 
 
Inventories, Net
634.0 
582.9 
 
 
Intercompany
 
 
Other Current Assets
45.7 
46.1 
 
 
Total Current Assets
1,169.9 
1,114.9 
 
 
Property, Plant and Equipment, Net
1,867.2 
1,751.9 
 
 
Investment in Consolidated Subsidiaries
 
 
Goodwill
1,323.0 
1,260.3 
1,167.8 
 
Other Assets
502.9 
476.3 
 
 
Total Assets
4,863.0 
4,603.4 
4,256.1 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
61.3 
63.4 
 
 
Accounts Payable
516.5 
466.5 
 
 
Interest Payable
14.9 
15.4 
 
 
Intercompany
 
 
Other Accrued Liabilities
258.7 
234.5 
 
 
Total Current Liabilities
851.4 
779.8 
 
 
Long-Term Debt
2,213.2 
2,088.5 
 
 
Deferred Income Tax Liabilities
321.8 
408.0 
 
 
Other Noncurrent Liabilities
184.7 
270.6 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
1,291.9 
1,056.5 
 
 
Total Liabilities and Shareholders' Equity
4,863.0 
4,603.4 
 
 
Reportable Legal Entities |
Parent
 
 
 
 
Current Assets:
 
 
 
 
Cash and Cash Equivalents
23.3 
Receivables, Net
 
 
Inventories, Net
 
 
Intercompany
 
 
Other Current Assets
 
 
Total Current Assets
23.3 
 
 
Property, Plant and Equipment, Net
 
 
Investment in Consolidated Subsidiaries
1,711.9 
1,362.9 
 
 
Goodwill
 
 
Other Assets
 
 
Total Assets
1,735.2 
1,362.9 
 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
 
 
Accounts Payable
 
 
Interest Payable
 
 
Intercompany
420.0 
306.4 
 
 
Other Accrued Liabilities
23.3 
 
 
Total Current Liabilities
443.3 
306.4 
 
 
Long-Term Debt
 
 
Deferred Income Tax Liabilities
 
 
Other Noncurrent Liabilities
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
1,291.9 
1,056.5 
 
 
Total Liabilities and Shareholders' Equity
1,735.2 
1,362.9 
 
 
Reportable Legal Entities |
Subsidiary Issuer
 
 
 
 
Current Assets:
 
 
 
 
Cash and Cash Equivalents
1.2 
0.9 
0.1 
2.0 
Receivables, Net
82.9 
183.7 
 
 
Inventories, Net
417.8 
403.8 
 
 
Intercompany
1,232.0 
1,077.5 
 
 
Other Current Assets
33.6 
36.4 
 
 
Total Current Assets
1,767.5 
1,702.3 
 
 
Property, Plant and Equipment, Net
1,532.9 
1,435.8 
 
 
Investment in Consolidated Subsidiaries
 
 
Goodwill
1,154.8 
1,098.9 
 
 
Other Assets
362.1 
314.8 
 
 
Total Assets
4,817.3 
4,551.8 
 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
51.5 
26.0 
 
 
Accounts Payable
381.7 
354.3 
 
 
Interest Payable
14.3 
15.4 
 
 
Intercompany
 
 
Other Accrued Liabilities
166.5 
163.2 
 
 
Total Current Liabilities
614.0 
558.9 
 
 
Long-Term Debt
2,082.3 
2,042.4 
 
 
Deferred Income Tax Liabilities
295.0 
342.1 
 
 
Other Noncurrent Liabilities
114.1 
245.5 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
1,711.9 
1,362.9 
 
 
Total Liabilities and Shareholders' Equity
4,817.3 
4,551.8 
 
 
Reportable Legal Entities |
Combined Guarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and Cash Equivalents
1.2 
Receivables, Net
10.1 
 
 
Inventories, Net
16.1 
 
 
Intercompany
204.3 
73.3 
 
 
Other Current Assets
 
 
Total Current Assets
204.3 
100.7 
 
 
Property, Plant and Equipment, Net
0.1 
64.1 
 
 
Investment in Consolidated Subsidiaries
13.0 
12.3 
 
 
Goodwill
55.5 
 
 
Other Assets
65.6 
 
 
Total Assets
217.4 
298.2 
 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
 
 
Accounts Payable
8.5 
 
 
Interest Payable
 
 
Intercompany
 
 
Other Accrued Liabilities
3.0 
 
 
Total Current Liabilities
11.5 
 
 
Long-Term Debt
 
 
Deferred Income Tax Liabilities
43.3 
 
 
Other Noncurrent Liabilities
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
217.4 
243.4 
 
 
Total Liabilities and Shareholders' Equity
217.4 
298.2 
 
 
Reportable Legal Entities |
Combined Nonguarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and Cash Equivalents
42.9 
57.0 
54.8 
79.6 
Receivables, Net
339.9 
233.0 
 
 
Inventories, Net
216.2 
163.0 
 
 
Intercompany
 
 
Other Current Assets
12.1 
9.7 
 
 
Total Current Assets
611.1 
462.7 
 
 
Property, Plant and Equipment, Net
334.2 
252.0 
 
 
Investment in Consolidated Subsidiaries
 
 
Goodwill
168.2 
105.9 
 
 
Other Assets
140.8 
95.9 
 
 
Total Assets
1,254.3 
916.5 
 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
9.8 
37.4 
 
 
Accounts Payable
134.8 
103.7 
 
 
Interest Payable
0.6 
 
 
Intercompany
1,033.1 
913.0 
 
 
Other Accrued Liabilities
68.9 
68.3 
 
 
Total Current Liabilities
1,247.2 
1,122.4 
 
 
Long-Term Debt
130.9 
46.1 
 
 
Deferred Income Tax Liabilities
26.8 
22.6 
 
 
Other Noncurrent Liabilities
70.6 
25.1 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
(221.2)
(299.7)
 
 
Total Liabilities and Shareholders' Equity
1,254.3 
916.5 
 
 
Consolidating Eliminations
 
 
 
 
Current Assets:
 
 
 
 
Cash and Cash Equivalents
Receivables, Net
 
 
Inventories, Net
 
 
Intercompany
(1,436.3)
(1,150.8)
 
 
Other Current Assets
 
 
Total Current Assets
(1,436.3)
(1,150.8)
 
 
Property, Plant and Equipment, Net
 
 
Investment in Consolidated Subsidiaries
(1,724.9)
(1,375.2)
 
 
Goodwill
 
 
Other Assets
 
 
Total Assets
(3,161.2)
(2,526.0)
 
 
Current Liabilities:
 
 
 
 
Short-Term Debt and Current Portion of Long-Term Debt
 
 
Accounts Payable
 
 
Interest Payable
 
 
Intercompany
(1,453.1)
(1,219.4)
 
 
Other Accrued Liabilities
 
 
Total Current Liabilities
(1,453.1)
(1,219.4)
 
 
Long-Term Debt
 
 
Deferred Income Tax Liabilities
 
 
Other Noncurrent Liabilities
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
Total Shareholders' Equity
(1,708.1)
(1,306.6)
 
 
Total Liabilities and Shareholders' Equity
$ (3,161.2)
$ (2,526.0)
 
 
Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statements of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
$ 300.2 
$ 228.0 
$ 230.1 
Depreciation and Amortization
330.3 
299.3 
280.5 
Deferred Income Taxes
(54.0)
76.7 
110.0 
Amount of Postretirement Expense Less Than Funding
(127.1)
(31.3)
(39.4)
Gain (Loss) on the Sale of Assets
(3.7)
1.9 
Equity in Net Earnings of Subsidiaries
Other, Net
7.1 
30.2 
25.1 
Changes in Operating Assets and Liabilities
63.4 
38.5 
(19.0)
Net Cash Provided by Operating Activities
516.2 
641.4 
589.2 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
(240.9)
(278.6)
(228.9)
Packaging Machinery Spending
(19.2)
(16.0)
(15.2)
Acquisition of Businesses, Net of Cash Acquired
(189.4)
(332.7)
(163.2)
Acquisition of Businesses, Net of Cash Acquired
 
 
(163.2)
Proceeds Received from Sale of Assets, Net of Selling Costs
7.9 
Other, Net
1.0 
(5.2)
7.5 
Net Cash Used in Investing Activities
(440.6)
(632.5)
(399.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
(62.1)
(164.9)
(63.0)
Proceeds from Issuance of Senior Long-term Debt
300.0 
Payments on Debt
(25.0)
(25.0)
(25.0)
Borrowings under Revolving Credit Facilities
1,202.9 
1,200.0 
903.0 
Payments on Revolving Credit Facilities
(1,090.8)
(1,235.8)
(953.8)
Debt Issuance Costs
(5.3)
Dividends Paid
(93.4)
(64.4)
(49.3)
Repurchase of Common Stock related to Share-Based Payments
(10.2)
(11.3)
(21.5)
Other, Net
8.8 
3.6 
(1.3)
Net Cash Used in Financing Activities
(69.8)
(3.1)
(210.9)
Effect of Exchange Rate on Cash and Cash Equivalents
2.5 
(1.6)
(5.2)
Net (Decrease) Increase in Cash and Cash Equivalents
8.3 
4.2 
(26.7)
Cash and Cash Equivalents at Beginning of Year
59.1 
54.9 
81.6 
CASH AND CASH EQUIVALENTS AT END OF YEAR
67.4 
59.1 
54.9 
Combined Guarantor Subsidiaries
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Acquisition of Businesses, Net of Cash Acquired
 
 
Reportable Legal Entities |
Parent
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
300.2 
228.0 
230.1 
Depreciation and Amortization
Deferred Income Taxes
Amount of Postretirement Expense Less Than Funding
Gain (Loss) on the Sale of Assets
 
Equity in Net Earnings of Subsidiaries
(300.2)
(228.0)
(230.1)
Other, Net
Changes in Operating Assets and Liabilities
0.3 
Net Cash Provided by Operating Activities
0.3 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
Packaging Machinery Spending
Acquisition of Businesses, Net of Cash Acquired
 
Acquisition of Businesses, Net of Cash Acquired
 
 
Proceeds Received from Sale of Assets, Net of Selling Costs
 
 
Other, Net
189.0 
240.6 
133.5 
Net Cash Used in Investing Activities
189.0 
240.6 
133.5 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
(62.1)
(164.9)
(63.0)
Proceeds from Issuance of Senior Long-term Debt
 
 
Payments on Debt
Borrowings under Revolving Credit Facilities
Payments on Revolving Credit Facilities
Debt Issuance Costs
 
 
Dividends Paid
(93.4)
(64.4)
(49.3)
Repurchase of Common Stock related to Share-Based Payments
(10.2)
(11.3)
(21.5)
Other, Net
Net Cash Used in Financing Activities
(165.7)
(240.6)
(133.8)
Effect of Exchange Rate on Cash and Cash Equivalents
Net (Decrease) Increase in Cash and Cash Equivalents
23.3 
Cash and Cash Equivalents at Beginning of Year
CASH AND CASH EQUIVALENTS AT END OF YEAR
23.3 
Reportable Legal Entities |
Subsidiary Issuer
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
300.2 
228.0 
230.1 
Depreciation and Amortization
260.8 
233.4 
239.2 
Deferred Income Taxes
(49.0)
77.5 
108.5 
Amount of Postretirement Expense Less Than Funding
(113.8)
(25.8)
(31.4)
Gain (Loss) on the Sale of Assets
(3.7)
 
1.9 
Equity in Net Earnings of Subsidiaries
(25.9)
(25.0)
(47.7)
Other, Net
7.5 
30.8 
31.6 
Changes in Operating Assets and Liabilities
99.5 
44.9 
(99.0)
Net Cash Provided by Operating Activities
475.6 
563.8 
433.2 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
(193.2)
(239.7)
(188.7)
Packaging Machinery Spending
(19.1)
(9.4)
(12.5)
Acquisition of Businesses, Net of Cash Acquired
(127.0)
(173.1)
 
Acquisition of Businesses, Net of Cash Acquired
 
 
(131.1)
Proceeds Received from Sale of Assets, Net of Selling Costs
7.9 
 
 
Other, Net
(15.5)
(166.0)
78.6 
Net Cash Used in Investing Activities
(346.9)
(588.2)
(253.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
Proceeds from Issuance of Senior Long-term Debt
 
300.0 
 
Payments on Debt
(25.0)
(25.0)
(25.0)
Borrowings under Revolving Credit Facilities
1,103.4 
1,136.0 
831.3 
Payments on Revolving Credit Facilities
(1,026.6)
(1,143.5)
(852.9)
Debt Issuance Costs
 
(5.3)
 
Dividends Paid
Repurchase of Common Stock related to Share-Based Payments
Other, Net
(180.2)
(237.0)
(134.8)
Net Cash Used in Financing Activities
(128.4)
25.2 
(181.4)
Effect of Exchange Rate on Cash and Cash Equivalents
Net (Decrease) Increase in Cash and Cash Equivalents
0.3 
0.8 
(1.9)
Cash and Cash Equivalents at Beginning of Year
0.9 
0.1 
2.0 
CASH AND CASH EQUIVALENTS AT END OF YEAR
1.2 
0.9 
0.1 
Reportable Legal Entities |
Combined Guarantor Subsidiaries
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
(3.3)
(2.3)
(1.3)
Depreciation and Amortization
4.8 
12.9 
0.1 
Deferred Income Taxes
(1.1)
1.7 
Amount of Postretirement Expense Less Than Funding
Gain (Loss) on the Sale of Assets
 
Equity in Net Earnings of Subsidiaries
6.1 
6.1 
1.3 
Other, Net
Changes in Operating Assets and Liabilities
(7.7)
(17.2)
0.3 
Net Cash Provided by Operating Activities
(1.2)
1.2 
0.4 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
(0.4)
Packaging Machinery Spending
Acquisition of Businesses, Net of Cash Acquired
 
Proceeds Received from Sale of Assets, Net of Selling Costs
 
 
Other, Net
Net Cash Used in Investing Activities
(0.4)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
Proceeds from Issuance of Senior Long-term Debt
 
 
Payments on Debt
Borrowings under Revolving Credit Facilities
Payments on Revolving Credit Facilities
Debt Issuance Costs
 
 
Dividends Paid
Repurchase of Common Stock related to Share-Based Payments
Other, Net
Net Cash Used in Financing Activities
Effect of Exchange Rate on Cash and Cash Equivalents
Net (Decrease) Increase in Cash and Cash Equivalents
(1.2)
1.2 
Cash and Cash Equivalents at Beginning of Year
1.2 
CASH AND CASH EQUIVALENTS AT END OF YEAR
1.2 
Reportable Legal Entities |
Combined Nonguarantor Subsidiaries
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
23.1 
21.2 
47.7 
Depreciation and Amortization
64.7 
53.0 
41.2 
Deferred Income Taxes
(3.9)
(2.5)
1.5 
Amount of Postretirement Expense Less Than Funding
(13.3)
(5.5)
(8.0)
Gain (Loss) on the Sale of Assets
 
Equity in Net Earnings of Subsidiaries
Other, Net
(0.4)
(0.6)
(6.5)
Changes in Operating Assets and Liabilities
(28.4)
10.8 
79.4 
Net Cash Provided by Operating Activities
41.8 
76.4 
155.3 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
(47.7)
(38.9)
(39.8)
Packaging Machinery Spending
(0.1)
(6.6)
(2.7)
Acquisition of Businesses, Net of Cash Acquired
(62.4)
(159.6)
 
Acquisition of Businesses, Net of Cash Acquired
 
 
(32.1)
Proceeds Received from Sale of Assets, Net of Selling Costs
 
 
Other, Net
9.9 
Net Cash Used in Investing Activities
(110.2)
(205.1)
(64.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
Proceeds from Issuance of Senior Long-term Debt
 
 
Payments on Debt
Borrowings under Revolving Credit Facilities
99.5 
64.0 
71.7 
Payments on Revolving Credit Facilities
(64.2)
(92.3)
(100.9)
Debt Issuance Costs
 
 
Dividends Paid
Repurchase of Common Stock related to Share-Based Payments
Other, Net
16.5 
160.8 
(81.0)
Net Cash Used in Financing Activities
51.8 
132.5 
(110.2)
Effect of Exchange Rate on Cash and Cash Equivalents
2.5 
(1.6)
(5.2)
Net (Decrease) Increase in Cash and Cash Equivalents
(14.1)
2.2 
(24.8)
Cash and Cash Equivalents at Beginning of Year
57.0 
54.8 
79.6 
CASH AND CASH EQUIVALENTS AT END OF YEAR
42.9 
57.0 
54.8 
Consolidating Eliminations
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net Income
(320.0)
(246.9)
(276.5)
Depreciation and Amortization
Deferred Income Taxes
Amount of Postretirement Expense Less Than Funding
Gain (Loss) on the Sale of Assets
 
Equity in Net Earnings of Subsidiaries
320.0 
246.9 
276.5 
Other, Net
Changes in Operating Assets and Liabilities
Net Cash Provided by Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Capital Spending
Packaging Machinery Spending
Acquisition of Businesses, Net of Cash Acquired
 
Acquisition of Businesses, Net of Cash Acquired
 
 
Proceeds Received from Sale of Assets, Net of Selling Costs
 
 
Other, Net
(172.5)
(79.8)
(214.5)
Net Cash Used in Investing Activities
(172.5)
(79.8)
(214.5)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of Common Stock
Proceeds from Issuance of Senior Long-term Debt
 
 
Payments on Debt
Borrowings under Revolving Credit Facilities
Payments on Revolving Credit Facilities
Debt Issuance Costs
 
 
Dividends Paid
 
Repurchase of Common Stock related to Share-Based Payments
Other, Net
172.5 
79.8 
214.5 
Net Cash Used in Financing Activities
172.5 
79.8 
214.5 
Effect of Exchange Rate on Cash and Cash Equivalents
Net (Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
CASH AND CASH EQUIVALENTS AT END OF YEAR
$ 0 
$ 0 
$ 0 
Subsequent Event (Details) (Subsequent Event [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Jan. 1, 2018
Jan. 8, 2018
Subsequent Event [Member]
 
 
Subsequent Event [Line Items]
 
 
Membership Interest
20.50% 
 
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest
79.50% 
 
Line of Credit Facility, Increase (Decrease), Net
$ 75 
 
Long-term Debt, Gross
 
$ 660.0