Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Segment and Geographic Information [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

23. SEGMENT AND GEOGRAPHIC INFORMATION

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

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 income (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 income (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
For the year ended December 31, 2009 In millions		Specialty Papers		Composite Fibers		Advanced Airlaid Materials		Other and Unallocated			Total
Net sales	$	791.9	$	392.1	$	–	$	–		$	1,184.0
Energy and related sales, net		13.3		–		–		–			13.3
Total revenue		805.2		392.1		–		–			1,197.3
Cost of products sold		693.9		334.4		–		(100.7	)		927.6
Gross profit		111.3		57.7		–		100.7			269.8
SG&A		55.4		35.8		–		19.1			110.3
Gains on dispositions of plant, equipment and timberlands, net		–		–		–		(0.9	)		(0.9	)
Total operating income (loss)		55.9		21.9		–		82.6			160.4
Non-operating income (expense)		–		–		–		(17.3	)		(17.3	)
Income (loss) before income taxes	$	55.9	$	21.9	$	–	$	65.3		$	143.1
Supplementary Data
Plant, equipment and timberlands, net	$	262.8	$	207.8	$	–	$	–		$	470.6
Depreciation, depletion and amortization		37.5		23.7		–		–			61.3
Capital expenditures		14.2		12.1		–		–			26.3

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 asset dispositions. Management believes that this is a more meaningful representation of the operating performance of its core papermaking 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, transfer, casting, release, postal, playing card, 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		2011		2010		2009
Carbonless & forms	$	368,582	$	359,033	$	320,088
Book publishing		166,506		168,155		176,646
Envelope & converting		170,380		157,202		146,812
Engineered products		166,660		155,257		143,490
Other		2,950		2,967		4,879
Total	$	875,078	$	842,614	$	791,915

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, 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, medical masks and other highly engineered applications.

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

In thousands		2011		2010		2009
Food & beverage	$	284,748	$	242,882	$	233,899
Metallized		95,276		88,753		81,388
Composite laminates		53,334		50,801		46,442
Technical specialties and other		42,671		36,781		30,366
Total	$	476,029	$	419,217	$	392,095

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 such as specialty wipes;

• table top and towels; and

• food pads and other.

In thousands		2011		2010	2009
Feminine hygiene	$	206,724	$	157,691	–
Adult Incontinence		6,083		6,146	–
Home care		24,492		17,902	–
Food pads		9,526		8,200	–
Other		5,222		3,560	–
Total	$	252,047	$	193,499	–

No individual customer accounted for more than 10% of our consolidated net sales in 2011, 2010 or 2009. However, one customer accounted for the majority of Advanced Airlaid Materials’ net sales in 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.

	2011				2010				2009
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	$	933,357	$	250,217	$	880,089	$	251,318	$	824,833	$	262,807
Germany		410,183		181,537		327,952		198,585		191,660		124,881
United Kingdom		122,218		57,634		128,598		55,672		125,047		60,104
Canada		88,018		86,079		75,195		80,177		–		–
Other		49,378		26,483		43,497		22,418		42,470		22,840
Total	$	1,603,154	$	601,950	$	1,455,331	$	608,170	$	1,184,010	$	470,632