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Segment and Geographic Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographic Information

23.SEGMENT AND GEOGRAPHIC INFORMATION

The following tables set forth profitability and other information by segment:

 

For the year ended December 31, 2019

 

Composite

 

 

 

Airlaid

 

 

 

Other and

 

 

 

 

 

 

In millions

 

Fibers

 

 

 

Materials

 

 

 

Unallocated

 

 

 

Total

 

Net sales

 

$

521.7

 

 

 

$

406.0

 

 

 

$

 

 

 

$

927.7

 

Cost of products sold

 

 

432.2

 

 

 

 

346.6

 

 

 

 

1.3

 

 

 

 

780.1

 

Gross profit (loss)

 

 

89.5

 

 

 

 

59.4

 

 

 

 

(1.3

)

 

 

 

147.5

 

SG&A

 

 

41.6

 

 

 

 

18.3

 

 

 

 

35.1

 

 

 

 

95.0

 

Gains on dispositions of plant, equipment

   and timberlands, net

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

(2.1

)

Total operating income (loss)

 

 

47.9

 

 

 

 

41.1

 

 

 

 

(34.3

)

 

 

 

54.6

 

Non-operating expense

 

 

 

 

 

 

 

 

 

 

(89.1

)

 

 

 

(89.1

)

Income (loss) before income taxes

 

$

47.9

 

 

 

$

41.1

 

 

 

$

(123.4

)

 

 

$

(34.5

)

Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant, equipment and timberlands, net

 

$

222.7

 

 

 

$

293.8

 

 

 

$

20.9

 

 

 

$

537.4

 

Depreciation, depletion and amortization

 

 

26.2

 

 

 

 

21.1

 

 

 

 

3.5

 

 

 

 

50.8

 

Capital expenditures

 

 

12.0

 

 

 

 

13.7

 

 

 

 

2.1

 

 

 

 

27.8

 

 

For the year ended December 31, 2018

 

Composite

 

 

 

Airlaid

 

 

 

Other and

 

 

 

 

 

 

In millions

 

Fibers

 

 

 

Materials

 

 

 

Unallocated

 

 

 

Total

 

Net sales

 

$

554.9

 

 

 

$

311.4

 

 

 

$

 

 

 

$

866.3

 

Cost of products sold

 

 

462.3

 

 

 

 

269.3

 

 

 

 

4.3

 

 

 

 

735.9

 

Gross profit (loss)

 

 

92.6

 

 

 

 

42.1

 

 

 

 

(4.3

)

 

 

 

130.4

 

SG&A

 

 

44.2

 

 

 

 

12.2

 

 

 

 

55.3

 

 

 

 

111.7

 

Gains on dispositions of plant, equipment

   and timberlands, net

 

 

 

 

 

 

 

 

 

 

(3.3

)

 

 

 

(3.3

)

Total operating income (loss)

 

 

48.4

 

 

 

 

29.9

 

 

 

 

(56.3

)

 

 

 

21.9

 

Non-operating expense

 

 

 

 

 

 

 

 

 

 

(14.7

)

 

 

 

(14.7

)

Income (loss) before income taxes

 

$

48.4

 

 

 

$

29.9

 

 

 

$

(71.0

)

 

 

$

7.3

 

Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant, equipment and timberlands, net

 

$

233.2

 

 

 

$

298.2

 

 

 

$

24.6

 

 

 

$

556.0

 

Depreciation, depletion and amortization

 

 

28.3

 

 

 

 

14.9

 

 

 

 

4.3

 

 

 

 

47.5

 

Capital expenditures

 

 

15.7

 

 

 

 

21.6

 

 

 

 

4.8

 

 

 

 

42.1

 

 

For the year ended December 31, 2017

 

Composite

 

 

 

Airlaid

 

 

 

Other and

 

 

 

 

 

 

In millions

 

Fibers

 

 

 

Materials

 

 

 

Unallocated

 

 

 

Total

 

Net sales

 

$

544.3

 

 

 

$

256.1

 

 

 

$

 

 

 

$

800.4

 

Cost of products sold

 

 

437.6

 

 

 

 

216.7

 

 

 

 

2.5

 

 

 

 

656.8

 

Gross profit (loss)

 

 

106.7

 

 

 

 

39.4

 

 

 

 

(2.5

)

 

 

 

143.6

 

SG&A

 

 

44.4

 

 

 

 

9.3

 

 

 

 

56.8

 

 

 

 

110.5

 

Loss on dispositions of plant, equipment

   and timberlands, net

 

 

 

 

 

 

 

 

 

 

(0.2

)

 

 

 

(0.2

)

Total operating income (loss)

 

 

62.3

 

 

 

 

30.1

 

 

 

 

(59.1

)

 

 

 

33.3

 

Non-operating expense

 

 

 

 

 

 

 

 

 

 

(13.8

)

 

 

 

(13.8

)

Income (loss) before income taxes

 

$

62.3

 

 

 

$

30.1

 

 

 

$

(72.9

)

 

 

$

19.5

 

Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant, equipment and timberlands, net

 

$

254.0

 

 

 

$

235.6

 

 

 

$

25.6

 

 

 

$

515.2

 

Depreciation, depletion and amortization

 

 

28.3

 

 

 

 

9.6

 

 

 

 

4.2

 

 

 

 

42.1

 

Capital expenditures

 

 

15.9

 

 

 

 

50.6

 

 

 

 

14.3

 

 

 

 

80.8

 

 

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

Results of individual operating segments 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 segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the operating segments. 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 operating segments are allocated primarily based on an estimated utilization of support area services.

Management evaluates results of operations of the operating segments before pension expense, certain corporate level costs, and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of segments and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of operating segment results, management does not use any measures of total assets. 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 Composite Fibers segment serves customers globally and focuses on higher value-added products in the following markets:

 

Food & Beverage filtration paper primarily used for single-serve coffee and tea products;

 

Wallcovering base materials used by the world’s largest wallpaper manufacturers;

 

Technical Specialties a diverse line of specialty papers used in commercial and industrial applications such as electrical energy storage, homecare, hygiene, and other highly-engineered fiber-based applications;

 

Composite Laminate paper used in production of decorative laminates, furniture, and flooring applications; and

 

Metallized products used in labels, packaging liners, gift wrap, and other consumer product applications.

The Airlaid Materials segment is a leading global supplier of highly absorbent cellulose-based airlaid nonwoven materials used in:

 

feminine hygiene;

 

specialty wipes;

 

table top;

 

adult incontinence;

 

home care; and

 

other consumer products.

 

Disaggregated revenue by market segment and geographic region for Composite Fibers and Airlaid Materials is presented in Item 8 Financial Statements and Supplementary Data, Note 6 – Revenue.

Approximately 16% of our consolidated net revenue in 2019, 2018 and 2017, were from sales to Procter & Gamble Company, a customer of the Airlaid Materials segment.

 

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.

 

 

2019

 

 

2018

 

 

2017

 

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

$

167,887

 

 

$

105,763

 

 

$

124,690

 

 

$

109,797

 

 

$

89,773

 

 

$

105,663

 

Germany

 

504,012

 

 

 

274,146

 

 

 

483,628

 

 

 

286,839

 

 

 

450,668

 

 

 

240,932

 

United Kingdom

 

70,018

 

 

 

52,039

 

 

 

76,053

 

 

 

50,483

 

 

 

76,594

 

 

 

55,494

 

Canada

 

121,789

 

 

 

72,436

 

 

 

114,877

 

 

 

74,448

 

 

 

120,433

 

 

 

78,220

 

Other

 

63,967

 

 

 

33,037

 

 

 

67,038

 

 

 

34,477

 

 

 

62,894

 

 

 

34,874

 

Total

$

927,673

 

 

$

537,421

 

 

$

866,286

 

 

$

556,044

 

 

$

800,362

 

 

$

515,183