Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Business Segment and Geographic Information

Business Segment and Geographic Information

Note 13.  Business Segment and Geographic Information

The Company reports its operations in two segments: Technical Products and Fine Paper. The technical products business is an international producer of transportation and other filter media and durable, saturated and coated substrates for industrial products backings and a variety of other end markets. The fine paper business is a supplier of premium writing, text and cover papers, bright papers and specialty papers in North America. Each segment employs different technologies and marketing strategies. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. The accounting policies of the reportable operating segments are the same as those described in Note 2, "Summary of Significant Accounting Policies."

Business Segments

	Year Ended December 31,
	2011		2010		2009
Net sales
Technical Products	$	421.1	$	384.3	$	318.3
Fine Paper		274.9		273.4		255.6
Consolidated	$	696.0	$	657.7	$	573.9

	Year Ended December 31,
	2011			2010			2009
Operating income (loss)
Technical Products	$	33.8		$	29.2		$	14.4
Fine Paper (a)		39.7			40.5			17.5
Unallocated corporate costs (b)		(16.9	)		(14.6	)		(15.5	)
Consolidated	$	56.6		$	55.1		$	16.4

(a)

Operating earnings for the years ended December 31, 2010 and 2009 include gains (losses) related to the closure and sale of the Ripon Mill of $3.4 million and $(17.1) million, respectively.

(b)

Unallocated corporate costs for the year ended December 31, 2011 includes a pre-tax loss of approximately $2.4 million in connection with the Early Redemption, including the write-off of related unamortized debt issuance costs.

	Year Ended December 31,
	2011		2010		2009
Depreciation and amortization
Technical Products	$	17.6	$	16.9	$	17.8
Fine Paper		9.5		9.7		10.7
Corporate		3.9		4.7		6.0
Consolidated	$	31.0	$	31.3	$	34.5

	Year Ended December 31,
	2011		2010		2009
Capital expenditures
Technical Products	$	18.0	$	10.7	$	4.3
Fine Paper		4.2		6.7		4.0
Corporate		0.9		—		0.1
Consolidated	$	23.1	$	17.4	$	8.4

	December 31,
	2011		2010
Total Assets
Technical Products	$	336.3	$	337.9
Fine Paper		162.2		162.2
Corporate and other		66.6		106.6
Total	$	565.1	$	606.7

Geographic Information

	Year Ended December 31,
	2011		2010		2009
Net sales
United States	$	416.2	$	413.6	$	360.9
Europe		279.8		244.1		213.0
Consolidated	$	696.0	$	657.7	$	573.9

	December 31,
	2011		2010
Total Assets
United States	$	286.4	$	308.9
Canada		0.3		0.1
Europe		278.4		297.7
Total	$	565.1	$	606.7

Net sales are attributed to geographic areas based on the physical location of the selling entities. Segment identifiable assets are those that are directly used in the segments operations. Corporate assets are primarily cash, deferred income taxes and deferred financing costs.

Concentrations

For the years ended December 31, 2011, 2010 and 2009, sales to the fine paper business's three largest customers represented approximately 41 percent, 39 percent and 37 percent, respectively, of its total sales. For the years ended December 31, 2011, 2010 and 2009, no single customer accounted for more than 10 percent of the Company's consolidated revenue. Except for certain specialty latex grades and specialty softwood pulp used by Technical Products, management is not aware of any significant concentration of business transacted with a particular supplier that could, if suddenly eliminated, have a material affect on its operations. An interruption in supply of a latex specialty grade or of specialty softwood pulp to our technical products business or cotton fiber to our fine paper business could disrupt and eventually cause a shutdown of production of certain technical products and fine paper products.