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Segment and Geographical Information
 12 Months Ended
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,
 202420232022
High Purity Cellulose
Cellulose Specialties$871,752 $783,424 $866,225 
Commodity Products341,128 431,902 354,612 
Other sales(a)
88,742 97,438 115,009 
Total High Purity Cellulose1,301,622 1,312,764 1,335,846 
Paperboard227,628 219,408 250,167 
High-Yield Pulp126,897 135,954 159,704 
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,
 202420232022
High Purity Cellulose(a)
$75,593 $(41,567)$31,498 
Paperboard31,431 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 CellulosePaperboardHigh-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 
Freight75,382 20,512 20,380 — 116,274 
Depreciation and amortization115,963 7,832 2,329 — 126,124 
Fixed and other general costs(b)
443,086 41,802 38,589 733 524,210 
Total cost of sales1,169,486 187,539 133,188 (25,487)1,464,726 
Selling, general and administrative expense20,515 11,021 2,912 57,810 92,258 
Asset impairment25,169 — — — 25,169 
Indefinite suspension charges16,630 — — — 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 amortization117,749 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 CellulosePaperboardHigh-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 
Freight83,390 18,131 29,312 — 130,833 
Depreciation and amortization125,522 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 sales1,270,991 172,678 135,961 (24,454)1,555,176 
Selling, general and administrative expense18,243 9,570 2,893 45,006 75,712 
Asset impairment62,300 — — — 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 amortization122,925 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 CellulosePaperboardHigh-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 
Freight93,952 22,434 29,636 — 146,022 
Depreciation and amortization115,117 5,998 2,322 — 123,437 
Fixed and other general costs(b)
409,587 39,967 32,814 681 483,049 
Total cost of sales1,278,511 203,527 140,381 (28,235)1,594,184 
Selling, general and administrative expense19,683 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,
 20242023
United States$719,386 $710,896 
Canada611,647 683,468 
France197,290 213,180 
Other373 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 
China352,290 22 473,778 29 346,026 20 
Europe280,261 17 222,778 13 343,058 20 
Other Asia174,208 11 126,072 8 181,952 11 
Japan121,879 7 158,106 10 149,373 9 
Canada90,572 6 62,657 4 72,510 4 
Latin America17,659 1 11,073 — 23,886 1 
All other33,320 2 44,002 3 31,197 2 
Net sales$1,630,308 100 $1,643,330 100 $1,717,267 100