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Segment and Geographical Information | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment and Geographical Information | 21. Segment and Geographical Information During the periods presented, the Company operated in the following operating segments: High Purity Cellulose, Paperboard and High-Yield Pulp. See Note 1—Nature of Operations and Basis of Presentation for a description of the operating businesses. Corporate consists primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. The Company’s segment structure was determined based primarily on how its CODM, the CEO, reviews and evaluates Company operations. Each operating segment is separately managed and has discrete financial information that is utilized by the CODM in determining how to allocate resources and evaluate performance. The Company uses operating income (loss) as a measure of profitability to evaluate segment performance. Intersegment sales consist primarily of High-Yield Pulp sales to Paperboard, which are eliminated in consolidation. Intersegment sales prices are at rates that approximate market for the respective operating area. No single customer accounted for 10 percent or more of total sales during the years ended December 31, 2024 and 2022. One customer in the High Purity Cellulose operating segment represented 10 percent of total sales for the year ended December 31, 2023. In October 2024, an isolated fire occurred at the Company’s High Purity Cellulose plant in Jesup, Georgia, during planned maintenance activity. There were no injuries to employees or contractors and no risk to the surrounding community. The plant’s operations fully resumed within two weeks, incurring $2 million in immediate repair costs and $3 million of emergency maintenance capital expenditures. The Company’s preliminary estimates indicate that additional capital expenditures of approximately $15 million will be required over the next two years. The Company carries property and business interruption loss insurance with a $15 million combined deductible. The Company has notified its insurance underwriters and is in the process of evaluating and documenting the damage caused by the fire. The amount expected to be recovered from property and business interruption loss insurance is not currently estimable. Following the indefinite suspension of Temiscaming High Purity Cellulose operations in the third quarter of 2024, the Temiscaming site continues to incur custodial site costs in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. Further, the electricity generated from the Temiscaming High Purity Cellulose plant assets is no longer deemed a by-product of the High Purity Cellulose manufacturing process. Due to these assets now running solely to support Paperboard and High-Yield Pulp, beginning in the fourth quarter, the net impact of these electricity sales and the custodial site costs being incurred in support of these operations is reflected within the operating results of the Paperboard and High-Yield Pulp businesses. Net sales, disaggregated by product line, was comprised of the following:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
High Purity Cellulose |  |  |  |  |
Cellulose Specialties | $ | 871,752 |  |  | $ | 783,424 |  |  | $ | 866,225 |
Commodity Products | 341,128 |  |  | 431,902 |  |  | 354,612 |
Other sales(a) | 88,742 |  |  | 97,438 |  |  | 115,009 |
Total High Purity Cellulose | 1,301,622 |  |  | 1,312,764 |  |  | 1,335,846 |
Paperboard | 227,628 |  |  | 219,408 |  |  | 250,167 |
High-Yield Pulp | 126,897 |  |  | 135,954 |  |  | 159,704 |
Eliminations | (25,839) |  |  | (24,796) |  |  | (28,450) |
Net sales | $ | 1,630,308 |  |  | $ | 1,643,330 |  |  | $ | 1,717,267 |
(a)Include sales of bioelectricity, lignosulfonates and other by-products to third parties. Operating income (loss) by segment was comprised of the following:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
High Purity Cellulose(a) | $ | 75,593 |  |  | $ | (41,567) |  |  | $ | 31,498 |
Paperboard | 31,431 |  |  | 37,160 |  |  | 37,158 |
High-Yield Pulp | (7,594) |  |  | (3,155) |  |  | 16,199 |
Corporate | (59,949) |  |  | (57,702) |  |  | (58,720) |
Operating income (loss) | $ | 39,481 |  |  | $ | (65,264) |  |  | $ | 26,135 |
(a)In 2024, included a $25 million non-cash impairment recorded during the third quarter related to the indefinite suspension of operations at the Temiscaming High Purity Cellulose plant. In 2023, included a $62 million non-cash impairment recorded during the fourth quarter related to an asset realignment. See Note 8—Property, Plant and Equipment, Net for further information regarding these impairments. Significant segment operating expenses and other segment financial information included:
| Year Ended December 31, 2024
| High Purity Cellulose |  | Paperboard |  | High-Yield Pulp |  | Corporate(a) and Eliminations |  | Total
Cost of sales |  |  |  |  |  |  |  |  |
Key input costs (wood, chemicals, energy) | $ | 535,055 |  |  | $ | 117,393 |  |  | $ | 71,890 |  |  | $ | (26,220) |  |  | $ | 698,118 |
Freight | 75,382 |  |  | 20,512 |  |  | 20,380 |  |  | — |  |  | 116,274 |
Depreciation and amortization | 115,963 |  |  | 7,832 |  |  | 2,329 |  |  | — |  |  | 126,124 |
Fixed and other general costs(b) | 443,086 |  |  | 41,802 |  |  | 38,589 |  |  | 733 |  |  | 524,210 |
Total cost of sales | 1,169,486 |  |  | 187,539 |  |  | 133,188 |  |  | (25,487) |  |  | 1,464,726 |
Selling, general and administrative expense | 20,515 |  |  | 11,021 |  |  | 2,912 |  |  | 57,810 |  |  | 92,258 |
Asset impairment | 25,169 |  |  | — |  |  | — |  |  | — |  |  | 25,169 |
Indefinite suspension charges | 16,630 |  |  | — |  |  | — |  |  | — |  |  | 16,630 |
Other operating (income) expense(c) | (5,771) |  |  | (2,363) |  |  | (1,609) |  |  | 1,787 |  |  | (7,956) |
Identifiable assets(d) | $ | 1,503,268 |  |  | $ | 93,600 |  |  | $ | 49,798 |  |  | $ | 482,991 |  |  | $ | 2,129,657 |
Depreciation and amortization | 117,749 |  |  | 14,701 |  |  | 2,451 |  |  | 2,272 |  |  | 137,173 |
Capital expenditures(e) | 100,797 |  |  | 5,644 |  |  | 2,156 |  |  | 8,553 |  |  | 117,150 |
| Year Ended December 31, 2023
| High Purity Cellulose |  | Paperboard |  | High-Yield Pulp |  | Corporate(a) and Eliminations |  | Total
Cost of sales |  |  |  |  |  |  |  |  |
Key input costs (wood, chemicals, energy) | $ | 607,773 |  |  | $ | 113,678 |  |  | $ | 75,144 |  |  | $ | (25,486) |  |  | $ | 771,109 |
Freight | 83,390 |  |  | 18,131 |  |  | 29,312 |  |  | — |  |  | 130,833 |
Depreciation and amortization | 125,522 |  |  | 5,848 |  |  | 2,103 |  |  | — |  |  | 133,473 |
Fixed and other general costs(b) | 454,306 |  |  | 35,021 |  |  | 29,402 |  |  | 1,032 |  |  | 519,761 |
Total cost of sales | 1,270,991 |  |  | 172,678 |  |  | 135,961 |  |  | (24,454) |  |  | 1,555,176 |
Selling, general and administrative expense | 18,243 |  |  | 9,570 |  |  | 2,893 |  |  | 45,006 |  |  | 75,712 |
Asset impairment | 62,300 |  |  | — |  |  | — |  |  | — |  |  | 62,300 |
Other operating expense(c) | 2,797 |  |  | — |  |  | 255 |  |  | 12,354 |  |  | 15,406 |
Identifiable assets(d) | $ | 1,510,076 |  |  | $ | 105,804 |  |  | $ | 43,811 |  |  | $ | 523,009 |  |  | $ | 2,182,700 |
Depreciation and amortization | 122,925 |  |  | 12,933 |  |  | 2,025 |  |  | 2,100 |  |  | 139,983 |
Capital expenditures(e) | 118,665 |  |  | 776 |  |  | 1,421 |  |  | 12,281 |  |  | 133,143 |
| Year Ended December 31, 2022
| High Purity Cellulose |  | Paperboard |  | High-Yield Pulp |  | Corporate(a) and Eliminations |  | Total
Cost of sales |  |  |  |  |  |  |  |  |
Key input costs (wood, chemicals, energy) | $ | 659,855 |  |  | $ | 135,128 |  |  | $ | 75,609 |  |  | $ | (28,916) |  |  | $ | 841,676 |
Freight | 93,952 |  |  | 22,434 |  |  | 29,636 |  |  | — |  |  | 146,022 |
Depreciation and amortization | 115,117 |  |  | 5,998 |  |  | 2,322 |  |  | — |  |  | 123,437 |
Fixed and other general costs(b) | 409,587 |  |  | 39,967 |  |  | 32,814 |  |  | 681 |  |  | 483,049 |
Total cost of sales | 1,278,511 |  |  | 203,527 |  |  | 140,381 |  |  | (28,235) |  |  | 1,594,184 |
Selling, general and administrative expense | 19,683 |  |  | 9,471 |  |  | 3,084 |  |  | 59,237 |  |  | 91,475 |
Other operating (income) expense(c) | 6,154 |  |  | 11 |  |  | 40 |  |  | (732) |  |  | 5,473 |
Depreciation and amortization | $ | 117,017 |  |  | $ | 13,130 |  |  | $ | 2,364 |  |  | $ | 2,065 |  |  | $ | 134,576 |
Capital expenditures(e) | 136,866 |  |  | 3,413 |  |  | 2,210 |  |  | 3,790 |  |  | 146,279 |
(a)Includes ERP and certain lease expense and assets shared across operating segments. (b)Includes salaries, wages and benefits, maintenance costs and other costs of sales. (c)Primarily includes foreign exchange gain (loss), environmental expense, gain (loss) on disposal of property, plant and equipment and income (loss) from equity method investments. (d)In 2024, included a $25 million non-cash impairment recorded during the third quarter related to the indefinite suspension of operations at the Temiscaming High Purity Cellulose plant. In 2023, included a $62 million non-cash impairment recorded during the fourth quarter related to an asset realignment. See Note 8—Property, Plant and Equipment, Net for further details. (e)Amounts exclude the impact of changes in capital assets purchased on account and government grants. In 2024 and 2023, Corporate reflects expenditures associated with the Company’s ERP transformation project. Long-life assets by country were as follows:
| December 31,
| 2024 |  | 2023
United States | $ | 719,386 |  |  | $ | 710,896 |
Canada | 611,647 |  |  | 683,468 |
France | 197,290 |  |  | 213,180 |
Other | 373 |  |  | 98 |
Total long-life assets | $ | 1,528,696 |  |  | $ | 1,607,642 |
Net sales geographical distribution was as follows:
| Year Ended December 31,
| 2024 |  | % |  | 2023 |  | % |  | 2022 |  | %
United States | $ | 560,119 |  |  | 34 |  |  | $ | 544,864 |  |  | 33 |  |  | $ | 569,265 |  |  | 33 |
China | 352,290 |  |  | 22 |  |  | 473,778 |  |  | 29 |  |  | 346,026 |  |  | 20 |
Europe | 280,261 |  |  | 17 |  |  | 222,778 |  |  | 13 |  |  | 343,058 |  |  | 20 |
Other Asia | 174,208 |  |  | 11 |  |  | 126,072 |  |  | 8 |  |  | 181,952 |  |  | 11 |
Japan | 121,879 |  |  | 7 |  |  | 158,106 |  |  | 10 |  |  | 149,373 |  |  | 9 |
Canada | 90,572 |  |  | 6 |  |  | 62,657 |  |  | 4 |  |  | 72,510 |  |  | 4 |
Latin America | 17,659 |  |  | 1 |  |  | 11,073 |  |  | — |  |  | 23,886 |  |  | 1 |
All other | 33,320 |  |  | 2 |  |  | 44,002 |  |  | 3 |  |  | 31,197 |  |  | 2 |
Net sales | $ | 1,630,308 |  |  | 100 |  |  | $ | 1,643,330 |  |  | 100 |  |  | $ | 1,717,267 |  |  | 100 |

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