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Segment Reporting
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2023202220232022
Net Sales
Aluminum Extrusions$109,410 $161,649 $364,607 $510,066 
PE Films19,938 20,059 56,036 82,613 
Flexible Packaging Films30,111 47,278 94,861 128,117 
Total net sales159,459 228,986 515,504 720,796 
Add back freight6,733 9,500 19,977 28,619 
Sales as shown in the condensed consolidated statements of income (loss)$166,192 $238,486 $535,481 $749,415 
EBITDA from Ongoing Operations
Aluminum Extrusions:
Ongoing operations:
EBITDA$5,113 $12,071 $29,968 $57,885 
Depreciation & amortization(4,683)(4,416)(13,252)(12,846)
EBIT430 7,655 16,716 45,039 
Plant shutdowns, asset impairments, restructurings and other(1,483)(32)(1,821)(120)
PE Films:
Ongoing operations:
EBITDA4,037 431 6,700 14,543 
Depreciation & amortization(2,111)(1,579)(5,305)(4,733)
EBIT1,926 (1,148)1,395 9,810 
Plant shutdowns, asset impairments, restructurings and other(4,566)(498)(4,565)(650)
Goodwill impairment(19,478)— (34,891)— 
Flexible Packaging Films:
Ongoing operations:
EBITDA477 7,830 2,076 20,495 
Depreciation & amortization(704)(590)(2,115)(1,723)
EBIT(227)7,240 (39)18,772 
Plant shutdowns, asset impairments, restructurings and other— (6)(79)(86)
Total(23,398)13,211 (23,284)72,765 
Interest income62 9 135 41 
Interest expense3,106 1,138 7,791 3,158 
Gain on investment in kaléo— — 262 1,406 
Stock option-based compensation costs— 271 231 1,153 
Pension settlement loss25,612 — 25,612 — 
Corporate expenses, net11,633 9,653 30,100 30,119 
Income (loss) before income taxes(63,687)2,158 (86,621)39,782 
Income tax expense (benefit)(13,307)1,125 (16,307)7,460 
Net income (loss)$(50,380)$1,033 $(70,314)$32,322 
The following table presents identifiable assets by segment at September 30, 2023 and December 31, 2022:
(In thousands)September 30, 2023December 31, 2022
Aluminum Extrusions$256,671 $293,308 
PE Films58,459 102,431 
Flexible Packaging Films82,789 103,448 
Subtotal397,919 499,187 
General corporate32,994 23,674 
Cash and cash equivalents48,604 19,232 
Total$479,517 $542,093 
The following tables disaggregate the Company’s revenue by geographic area and product group for the three and nine months ended September 30, 2023 and 2022:
Net Sales by Geographic Area (a)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2023202220232022
United States$125,407 $181,405 $409,433 $577,496 
Exports from the United States to:
Asia7,873 7,437 19,082 34,582 
Latin America1,764 2,138 5,440 4,824 
Canada3,640 4,065 12,879 12,431 
Europe282 1,016 1,414 3,464 
Operations outside the United States:
Brazil20,351 32,925 66,954 87,999 
Asia142 — 302 — 
Total$159,459 $228,986 $515,504 $720,796 
(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 $4.8 million and $4.4 million in the third quarter of 2023 and 2022, respectively, and $11.7 million and $16.1 million in the first nine months of 2023 and 2022, respectively.
Net Sales by Product Group
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2023202220232022
Aluminum Extrusions:
Nonresidential building & construction$59,476 $86,659 $203,889 $266,882 
Consumer durables8,662 16,714 30,723 52,409 
Automotive13,025 11,543 36,916 39,857 
Residential building & construction7,999 15,136 29,658 52,549 
Electrical2,016 4,730 16,223 21,704 
Machinery & equipment14,202 20,028 36,008 48,902 
Distribution4,030 6,839 11,190 27,763 
Subtotal109,410 161,649 364,607 510,066 
PE Films:
Surface protection films12,755 13,018 34,251 58,839 
Overwrap packaging7,183 7,041 21,785 23,774 
Subtotal19,938 20,059 56,036 82,613 
Flexible Packaging Films30,111 47,278 94,861 128,117 
Total $159,459 $228,986 $515,504 $720,796