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Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting
The Company’s business segments are Aluminum Extrusions, PE Films, and Flexible Packaging Films. Information by business segment is reported below. There are no accounting transactions between segments and no allocations to segments.
The Company’s reportable segments are based on its method of internal reporting, which is generally segregated by differences in products. Accounting standards for presentation of segments require an approach based on the way the Company organizes the segments for making operating decisions and how the chief operating decision maker (“CODM”) assesses performance. EBITDA from ongoing operations is the key profitability measure used by the CODM (Tredegar’s President and Chief Executive Officer) for purposes of assessing financial performance. The Company uses sales less freight (“net sales”) as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM.
The following table presents net sales and EBITDA from ongoing operations by segment for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
(In thousands)20232022
Net Sales
Aluminum Extrusions$133,370 $158,110 
PE Films20,182 31,131 
Flexible Packaging Films31,527 39,244 
Total net sales185,079 228,485 
Add back freight6,043 8,081 
Sales as shown in the condensed consolidated statements of income (loss)$191,122 $236,566 
EBITDA from Ongoing Operations
Aluminum Extrusions:
Ongoing operations:
EBITDA$14,638 $23,919 
Depreciation & amortization(4,411)(4,261)
EBIT10,227 19,658 
Plant shutdowns, asset impairments, restructurings and other(493)(105)
PE Films:
Ongoing operations:
EBITDA1,849 7,047 
Depreciation & amortization(1,643)(1,595)
EBIT206 5,452 
Plant shutdowns, asset impairments, restructurings and other2 (102)
Flexible Packaging Films:
Ongoing operations:
EBITDA1,350 5,035 
Depreciation & amortization(700)(550)
EBIT650 4,485 
Plant shutdowns, asset impairments, restructurings and other(78)(43)
Total10,514 29,345 
Interest income44 29 
Interest expense2,311 786 
Gain on investment in kaléo262 — 
Stock option-based compensation costs231 631 
Corporate expenses, net8,956 10,757 
Income (loss) before income taxes(678)17,200 
Income tax expense (benefit)331 778 
Net income (loss)$(1,009)$16,422 
The following table presents identifiable assets by segment at March 31, 2023 and December 31, 2022:
(In thousands)March 31, 2023December 31, 2022
Aluminum Extrusions$296,861 $293,308 
PE Films99,725 102,431 
Flexible Packaging Films93,467 103,448 
Subtotal490,053 499,187 
General corporate21,096 23,674 
Cash and cash equivalents15,025 19,232 
Total$526,174 $542,093 
The following tables disaggregate the Company’s revenue by geographic area and product group for the three months ended March 31, 2023 and 2022:
Net Sales by Geographic Area (a)
Three Months Ended March 31,
(In thousands)20232022
United States$150,611 $182,138 
Exports from the United States to:
Asia5,732 12,465 
Latin America1,859 1,441 
Canada4,284 4,193 
Europe860 1,363 
Operations outside the United States:
Brazil21,628 26,885 
Asia105 — 
Total$185,079 $228,485 
(a) Export sales relate mostly to PE Films. Operations in Brazil relate to Flexible Packaging Films.
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $3.4 million and $6.5 million in the first three months of 2023 and 2022, respectively.
Net Sales by Product Group
Three Months Ended March 31,
(In thousands)20232022
Aluminum Extrusions:
Nonresidential building & construction$78,629 $80,921 
Consumer durables10,347 16,891 
Automotive12,122 13,841 
Residential building & construction11,603 16,465 
Electrical8,129 7,287 
Machinery & equipment10,724 12,945 
Distribution1,816 9,760 
Subtotal133,370 158,110 
PE Films:
Surface protection films12,855 22,148 
Overwrap packaging7,327 8,983 
Subtotal20,182 31,131 
Flexible Packaging Films31,527 39,244 
Total $185,079 $228,485