XML 72 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2012
Segment and Geographic Information [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION
22. SEGMENT AND GEOGRAPHIC INFORMATION

The following tables set forth profitability and other information by business unit:

 

                                         

For the year ended December 31, 2012

In millions

     Specialty Papers       Composite Fibers      
 		 Advanced Airlaid
Materials		   
  		    
 		 Other and
Unallocated		   
  		     Total  

Net sales

   $ 894.8     $ 436.7     $ 246.3     $ –     $ 1,577.8  

Energy and related sales, net

     7.0       –       –       –       7.0  

Total revenue

     901.8       436.7       246.3       –       1,584.8  

Cost of products sold

     779.5       362.6       218.7       10.3       1,371.1  

Gross profit

     122.3       74.2       27.6       (10.4 )      213.6  

SG&A

     55.0       38.1       9.6       18.9       121.6  

Gains on dispositions of plant, equipment and timberlands, net

     –       –       –       (9.8 )      (9.8 ) 

Total operating income (loss)

     67.3       36.1       18.0       (19.5 )      101.9  

Non-operating expense

     –       –       –       (22.9 )      (22.9 ) 

Income (loss) before income taxes

   $ 67.3     $ 36.1     $ 18.0     $ (42.4 )    $ 78.9  

Supplementary Data

                                        

Plant, equipment and timberlands, net

   $ 247.9     $ 200.1     $ 172.9     $ 0.3     $ 621.2  

Depreciation, depletion and amortization

     37.4       23.5       8.7       –       69.5  

Capital expenditures

     23.1       31.4       3.9       0.3       58.8  

 

                                         

For the year ended December 31, 2011

In millions

     Specialty Papers       Composite Fibers      
 		 Advanced Airlaid
Materials		   
  		    
 		 Other and
Unallocated		   
  		     Total  

Net sales

   $ 875.1     $ 476.0     $ 252.0     $ –     $ 1,603.2  

Energy and related sales, net

     9.3       –       –       –       9.3  
   

 

 

  

Total revenue

     884.4       476.0       252.0       –       1,612.5  

Cost of products sold

     775.7       395.7       227.7       7.2       1,406.3  
   

 

 

  

Gross profit

     108.7       80.3       24.3       (7.2 )      206.2  

SG&A

     51.4       39.5       10.9       23.0       124.9  

Gains on dispositions of plant, equipment and timberlands, net

     –       –       –       (4.0 )      (4.0 ) 
   

 

 

  

Total operating income (loss)

     57.3       40.8       13.4       (26.2 )      85.3  

Non-operating expense

     –       –       –       (34.4 )      (34.4 ) 
   

 

 

  

Income (loss) before income taxes

   $ 57.3     $ 40.8     $ 13.4       (60.7 )    $ 50.8  
   

 

 

  

Supplementary Data

                                        

Plant, equipment and timberlands, net

   $ 250.2     $ 176.2     $ 175.6     $ –     $ 602.0  

Depreciation, depletion and amortization

     36.0       24.8       8.5       –       69.3  

Capital expenditures

     31.4       22.5       10.6       –       64.5  

 

                                         

For the year ended December 31, 2010

In millions

     Specialty Papers       Composite Fibers      
 		 Advanced Airlaid
Materials		   
  		    
 		 Other and
Unallocated		   
  		     Total  

Net sales

   $ 842.6     $ 419.2     $ 193.5     $ –     $ 1,455.3  

Energy and related sales, net

     10.7       –       –       –       10.7  
   

 

 

  

Total revenue

     853.3       419.2       193.5       –       1,466.0  

Cost of products sold

     740.2       350.5       181.7       7.4       1,279.7  
   

 

 

  

Gross profit

     113.1       68.7       11.8       (7.4 )      186.2  

SG&A

     54.7       35.8       7.4       24.3       122.1  

Gains on dispositions of plant, equipment and timberlands, net

     –       –       –       (0.5 )      (0.5 ) 
   

 

 

  

Total operating income (loss)

     58.4       32.9       4.4       (31.2 )      64.6  

Non-operating expense

     –       –       –       (31.1 )      (31.1 ) 
   

 

 

  

Income (loss) before income taxes

   $ 58.4     $ 32.9     $ 4.4     $ (62.3 )    $ 33.5  
   

 

 

  

Supplementary Data

                                        

Plant, equipment and timberlands, net

   $ 251.3     $ 181.6     $ 175.3     $ –     $ 608.2  

Depreciation, depletion and amortization

     34.9       23.7       7.2       –       65.8  

Capital expenditures

     24.1       8.2       4.2       –       36.5  

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

 

Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the business unit are allocated primarily based on an estimated utilization of support area services.

Management evaluates results of operations of the business units before pension income or expense, alternative fuel mixture credits, debt redemption costs, restructuring related charges, certain corporate level costs, and the effects of certain asset dispositions. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

Our Specialty Papers business unit focuses on producing papers for the following markets:

 

  •  

Carbonless & forms papers for credit card receipts, multi-part forms, security papers and other end-user applications;

 

  •  

Book publishing papers for the production of high quality hardbound books and other book publishing needs;

 

  •  

Envelope and converting papers for the direct mail market, shopping bags, and other converting applications; and

 

  •  

Engineered products for digital imaging, casting, release, transfer, playing card, postal, FDA-compliant food and beverage applications, and other niche specialty applications.

 

Specialty Papers’ revenue composition by market consisted of the following for the years indicated:

 

                         

In thousands

     2012       2011       2010  

Carbonless & forms

   $ 372,950     $ 368,582     $ 359,033  

Book publishing

     155,925       166,506       168,155  

Envelope & converting

     174,781       170,380       157,202  

Engineered products

     187,724       166,660       155,257  

Other

     3,397       2,950       2,967  

Total

   $ 894,777     $ 875,078     $ 842,614  

Our Composite Fibers business unit serves customers globally and focuses on higher value-added products in the following markets:

 

  •  

Food & Beverage papers used for single-serve coffee and tea products and other applications;

 

  •  

Metallized products used in the labeling of beer bottles, packaging innerliners, gift wrap, self-adhesive labels and other consumer products applications;

 

  •  

Composite Laminates papers used in production of decorative laminates, furniture and flooring applications; and

 

  •  

Technical Specialties is a diverse line of paper products used in batteries, adhesive tapes and other highly engineered applications.

Composite Fibers’ revenue composition by market consisted of the following for the years indicated:

 

                         

In thousands

     2012       2011       2010  

Food & beverage

   $ 265,423     $ 284,748     $ 242,882  

Metallized

     87,720       95,276       88,753  

Composite laminates

     44,613       53,334       50,801  

Technical specialties and other

     38,984       42,671       36,781  

Total

   $ 436,740     $ 476,029     $ 419,217  

 

On February 12, 2010, we acquired Concert Industries Corp., which we now operate as the Advanced Airlaid Materials business unit. This business unit is a leading global supplier of highly absorbent cellulose-based airlaid non-woven materials used to manufacture a diverse range of consumer and industrial products for growing global end-user markets. These products include:

 

  •  

feminine hygiene;

 

  •  

adult incontinence;

 

  •  

home care;

 

  •  

specialty wipes;

 

  •  

table top; and

 

  •  

food pads.

 

Advanced Airlaid Materials’ revenue composition by market consisted of the following for the years indicated:

 

                         

In thousands

     2012       2011       2010  

Feminine hygiene

   $ 197,792     $ 206,724     $ 157,660  

Home care

     14,527       15,308       13,691  

Wipes

     13,562       5,463       –  

Adult incontinence

     6,959       6,083       6,167  

Other

     13,442       18,469       15,981  

Total

   $ 246,282     $ 252,047     $ 193,499  

No individual customer accounted for more than 10% of our consolidated net sales in 2012, 2011 or 2010. However, one customer accounted for the majority of Advanced Airlaid Materials’ net sales in 2012, 2011 and 2010.

 

 

Our net sales to external customers and location of net plant, equipment and timberlands are summarized below. Net sales are attributed to countries based upon origin of shipment.

 

                                                 
    2012     2011     2010  

In thousands

     Net sales      
 
 		 Plant,
Equipment and
Timberlands – Net		   
  
  		     Net sales      
 
 		 Plant,
Equipment and
Timberlands – Net		   
  
  		     Net sales      
 
 		 Plant,
Equipment and
Timberlands – Net		   
  
  

United States

   $ 952,195     $ 248,185     $ 933,357     $ 250,217     $ 880,089     $ 251,318  

Germany

     358,442       191,559       410,183       181,537       327,952       198,585  

United Kingdom

     119,092       59,131       122,218       57,634       128,598       55,672  

Canada

     106,702       83,796       88,018       86,079       75,195       80,177  

Other

     41,357       38,515       49,378       26,483       43,497       22,418  

Total

   $ 1,577,788     $ 621,186     $ 1,603,154     $ 601,950     $ 1,455,331     $ 608,170