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Business Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

The Company is a global manufacturer and supplier of consumable products primarily used in the production of paper, and is organized into two reportable segments: machine clothing and roll covers. The machine clothing segment represents the manufacture and sale of synthetic textile belts used to transport paper along the length of papermaking machines. The roll covers segment primarily represents the manufacture and refurbishment of covers used on the steel rolls of a papermaking machine. The Company manages each of these operating segments separately.

Management evaluates segment performance based on earnings before interest, taxes, depreciation and amortization before allocation of corporate charges. Such measure is then adjusted to exclude items that are of an unusual nature and are not used in measuring segment performance or are not segment specific (“Segment Earnings (Loss)”). The accounting policies of these segments are the same as those described in Accounting Policies in Note 2. Inter-segment net sales and inter-segment eliminations are not material for any of the periods presented.
The corporate column consists of the Company’s headquarters, related assets and expenses that are not allocable to reportable segments. Significant corporate assets include cash, investments in subsidiaries and deferred financing costs. Corporate depreciation and amortization consists primarily of deferred financing costs. Corporate segment earnings (loss) consists of general and administrative expenses. The eliminations column represents eliminations of investments in subsidiaries.
Summarized financial information for the Company’s reportable segments is presented in the tables that follow for each of the three years ended December 31, 2014.
 
 
Machine clothing
 
Roll
Covers
 
Corporate
 
Eliminations
 
Total
2014
 
 
 
 
 
 
 
 
 
Net sales
$
347,003

 
$
195,929

 
$
—

 
$
—

 
$
542,932

Depreciation and amortization (1)
$
23,457

 
$
9,666

 
$
1,169

 
$
—

 
$
34,292

Segment Earnings (Loss)
$
89,305

 
$
41,172

 
$
(14,508
)
 
$
—

 
 
Total assets
$
475,945

 
$
222,355

 
$
670,988

 
$
(775,244
)
 
$
594,044

Capital expenditures
$
22,964

 
$
10,918

 
$
11,336

 
$
—

 
$
45,218

2013
 
 
 
 
 
 
 
 
 
Net sales
$
352,336

 
$
194,556

 
$
—

 
$
—

 
$
546,892

Depreciation and amortization (1)
$
26,148

 
$
10,133

 
$
122

 
$
—

 
$
36,403

Segment Earnings (Loss) (2)
$
79,852

 
$
41,256

 
$
(13,783
)
 
$
—

 
 
Total assets
$
497,109

 
$
229,105

 
$
712,704

 
$
(814,854
)
 
$
624,064

Capital expenditures
$
18,799

 
$
10,029

 
$
15,317

 
$
—

 
$
44,145

2012
 
 
 
 
 
 
 
 
 
Net sales
$
354,172

 
$
184,568

 
$
—

 
$
—

 
$
538,740

Depreciation and amortization (1)
$
29,818

 
$
10,852

 
$
168

 
$
—

 
$
40,838

Segment Earnings (Loss) (2)
$
66,731

 
$
34,365

 
$
(11,868
)
 
$
—

 
 
Total assets
$
490,283

 
$
224,288

 
$
698,944

 
$
(794,672
)
 
$
618,843

Capital expenditures
$
14,026

 
$
7,314

 
$
365

 
$
—

 
$
21,705

 
(1)
Depreciation and amortization excludes amortization of financing costs, included in interest expense of $3,303, $2,963, and $3,424 for 2014, 2013 and 2012, respectively.
 
(2) During 2014, the Company adopted a global policy for allocating overhead costs to segments.  As a result of this change, segment earnings reclassifications were made to 2013 and 2012 to be on a consistent basis with 2014, increasing Clothing Segment Earnings and decreasing Rolls Segment Earnings by $3,922k and $3,847k for the years ending December 31, 2013 and December 31, 2012, respectively.


Provided below is a reconciliation of Segment Earnings (Loss) to income before provision for income taxes for each of the three years in the period ended December 31:
 
2014
 
2013
 
2012
Segment Earnings (Loss):
 
 
 
 
 
Machine clothing
$
89,305

 
$
79,852

 
$
66,731

Roll Covers
41,172

 
41,256

 
34,365

Corporate
(14,508
)
 
(13,783
)
 
(11,868
)
Stock-based compensation
(2,548
)
 
(1,736
)
 
(1,949
)
Legal fees related to debt refinancing
—

 
—

 
(115
)
Inventory write-off related to closed facilities
—

 
(954
)
 
 
Idle facility asset impairment
—

 
(667
)
 
(1,195
)
Non-recurring expenses related to CEO retirement
—

 
—

 
(3,385
)
Plant startup costs
(1,521
)
 
(401
)
 
 
Interest expense, net
(36,768
)
 
(40,681
)
 
(37,878
)
Depreciation and amortization (1)
(34,292
)
 
(36,403
)
 
(40,838
)
Restructuring expenses
(18,142
)
 
(14,844
)
 
(25,708
)
(Loss) gain on debt extinguishment
—

 
(3,123
)
 
243

Income (loss) before provision for income taxes
$
22,698

 
$
8,516

 
$
(21,597
)
 
(1) Excludes amortization of deferred finance costs that are charged to interest expense.
Information concerning principal geographic areas is set forth below. Net sales amounts are for the years ended December 31, 2014, 2013 and 2012 and property, plant and equipment amounts are as of December 31, 2014, 2013 and 2012.
 
 
North America
 
Europe
 
Asia Pacific
 
Other
 
Total
2014
 
 
 
 
 
 
 
 
 
Net sales
$
207,839

 
$
182,788

 
$
101,596

 
$
50,709

 
$
542,932

Property, plant and equipment
$
98,421

 
$
113,217

 
$
50,038

 
$
41,941

 
$
303,617

2013
 
 
 
 
 
 
 
 
 
Net sales
$
208,746

 
$
189,696

 
$
101,516

 
$
46,934

 
$
546,892

Property, plant and equipment
$
103,179

 
$
125,857

 
$
30,733

 
$
49,895

 
$
309,664

2012
 
 
 
 
 
 
 
 
 
Net sales
$
202,554

 
$
183,822

 
$
101,758

 
$
50,606

 
$
538,740

Property, plant and equipment
$
97,270

 
$
125,980

 
$
29,977

 
$
55,579

 
$
308,806