Segment EBITDA Margins

Our management uses “Segment EBITDA Margins”, along with other factors, to evaluate our segment performance against our peers. Management believes that investors also use this measure to evaluate our performance relative to our peers.

Set forth below is a reconciliation of Segment EBITDA margins to the most directly comparable GAAP measures, Segment Income and Segment Sales for the quarter ending September 30, 2012:
(In Millions, except percentages)                    

Corrugated Packaging

Consumer Packaging
Recycling

Corporate / Other
Consolidated
 
Segment Sales $ 1,597.3 $ 660.6 $ 264.4 $ (168.5 ) $ 2,353.8
 
Segment Income (Loss) (1) $ 112.8 $ 98.8 $ (2.8 ) $ 208.8

Depreciation and Amortization
  106.4     24.1     3.5   3.6 137.6
EBITDA $ 219.2 $ 122.9 $ 0.7
 
Segment EBITDA Margins 13.7 % 18.6 % 0.3 %
 
 

(1) Corrugated Packaging segment excludes $0.2 million of inventory step-up expense.

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