Interim Segment Information

3 Months Ended

Mar. 31, 2013

Interim Segment Information

Interim Segment Information

Note 12. Interim Segment Information

Factors Used to Identify Reportable Segments

We have evaluated our disclosures of our business segments in accordance with FASB ASC Subtopic 280-10, and as a result we have classified our operations into two principal reportable segments:  Tissue and Paper, each providing different products.  Separate management of each segment is required because each business unit is subject to different marketing, production, and technology strategies.

Products From Which Revenue Is Derived

The Tissue segment produces a complete line of towel and tissue products that are marketed along with soap and dispensing systems for the away-from-home market.  Tissue operates a paper mill in Middletown, Ohio, and a manufacturing and converting facility in Harrodsburg, Kentucky.

The Paper segment produces specialty papers within three core markets — Food, Industrial & Tape, and Coated & Liner.  During 2012 and into the first quarter of 2013, these products were produced at manufacturing facilities located in Brainerd, Minnesota, and in Rhinelander and Mosinee, Wisconsin.  The manufacturing facility in Brainerd, Minnesota permanently closed in the first quarter of 2013.  In the first quarter of 2012, the Paper segment also produced fine printing and writing papers at a manufacturing facility in Brokaw, Wisconsin.  Papermaking operations at the Brokaw facility permanently ceased on February 10, 2012.  We have reported the Brokaw facility as a discontinued operation.  See Note 3 for additional information on facility closures.

Reconciliations

The following are reconciliations to corresponding totals in the accompanying condensed consolidated financial statements.  The sales and operating profit (loss) information excludes discontinued operations in all periods presented.

	Three Months
	Ended March 31,
(all dollar amounts in thousands)	2013			2012
Net sales external customers:
Tissue	$	78,035		$	81,686
Paper	109,945			134,496
	$	187,980		$	216,182
Operating profit (loss):
Tissue	$	3,784		$	9,177
Paper	(41,156		)	289
Corporate & eliminations	(7,393		)	(6,150		)
	$	(44,765	)	$	3,316

	March 31,		December 31,
	2013		2012
Segment assets:
Tissue	$	398,767	$	378,278
Paper	233,318		271,793
Corporate & unallocated*	65,814		50,644
	$	697,899	$	700,715

* Segment assets of Tissue and Paper do not include intersegment accounts receivable, cash, deferred tax assets, and certain other assets, which are not identifiable with segments.