Business Segment and Geographic Information

On July 1, 2015, the Company reorganized its internal management structure and, accordingly, addressed its segment reporting structure. As a result of this reorganization, the Other operating segment (composed of the non-premium Index, Tag and Vellum Bristol product lines acquired as part of the purchase of the Wausau brands) was combined with the Fine Paper and Packaging operating segment to reflect the manner in which this business is managed. Segment information for prior periods has been restated to conform to the current period presentation. In addition, as part of the FiberMark acquisition, the Company acquired certain product lines composed of papers sold to converters for end uses such as covering materials for datebooks, diaries, yearbooks and traditional photo albums. Due to the dissimilar nature of these products, management decided that they would not be managed as part of either the existing Fine Paper and Packaging or Technical Products businesses. These product lines represent an operating segment which does not meet the quantitative threshold for a reportable segment.

The Company's reportable operating segments now consist of Technical Products, Fine Paper and Packaging and Other. The Technical Products segment is an aggregation of the Company's filtration and performance materials businesses which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods.

The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media ("Filtration"), tape and abrasives backings products ("Backings"), digital image transfer, durable label, and other specialty substrate products ("Specialty"). The following table presents sales by product category for the technical products business:



	Year Ended December 31,
	2017		2016		2015
Filtration	44	%	42	%	45	%
Backings	32	%	31	%	30	%
Specialty	24	%	27	%	25	%
Total	100	%	100	%	100	%

The fine paper and packaging business is a leading supplier of premium printing and other high end specialty papers ("Graphic Imaging"), premium packaging ("Packaging") and specialty office papers ("Filing/Office") primarily in North America. The following table presents sales by product category for the fine paper and packaging business:



	Year Ended December 31,
	2017		2016		2015
Graphic Imaging	80	%	81	%	80	%
Packaging	16	%	14	%	15	%
Filing/Office	4	%	5	%	5	%
Total	100	%	100	%	100	%

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,
	2017		2016		2015
Net sales
Technical Products	$	502.1	$	466.4	$	429.2
Fine Paper and Packaging	455.3		452.1		442.7
Other	22.5		23.0		15.8
Consolidated	$	979.9	$	941.5	$	887.7



	Year Ended December 31,
	2017			2016			2015
Operating income (loss)
Technical Products (a)	$	55.3		$	65.6		$	54.1
Fine Paper and Packaging (b)	69.5			70.7			67.3
Other (c)	(0.4		)	(1.1		)	(2.0		)
Unallocated corporate costs (d)	(20.1		)	(21.1		)	(18.0		)
Consolidated	$	104.3		$	114.1		$	101.4

_______________________


(a)	Operating income for the year ended December 31, 2016 included integration costs of $1.4 million. Operating income for the year ended December 31, 2015 included acquisition, integration and restructuring costs of $1.7 million.


(b)	Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $2.9 million. Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.8 million and $1.5 million, respectively.


(c)	Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $0.3 million. Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.1 million and $2.4 million, respectively.

(d)

Unallocated corporate costs for the year ended December 31, 2017 included acquisition and integration costs of $1.3 million and $0.6 million from pension plan and SERP settlement costs. December 31, 2016 included $2.7 million of pre-operating costs related to conversion of a fine paper machine to filtration and $0.8 million for a pension plan settlement charge. December 31, 2015 included $0.8 million of costs related to this filtration project.



	Year Ended December 31,
	2017		2016		2015
Depreciation and amortization
Technical Products	$	19.4	$	18.1	$	16.5
Fine Paper and Packaging	11.0		11.1		9.8
Other	1.2		1.3		0.6
Corporate	1.7		1.5		1.9
Total Continuing Operations	33.3		32.0		28.8
Discontinued operations	—		—		2.7
Consolidated	$	33.3	$	32.0	$	31.5



	Year Ended December 31,
	2017		2016		2015
Capital expenditures
Technical Products	$	28.6	$	57.9	$	36.0
Fine Paper and Packaging	12.5		7.6		10.3
Other	1.1		0.3		0.4
Corporate	0.5		2.7		0.8
Total Continuing Operations	42.7		68.5		47.5
Discontinued operations	—		—		0.6
Consolidated	$	42.7	$	68.5	$	48.1



	December 31,
	2017		2016
Total Assets (a)
Technical Products	$	613.0	$	487.6
Fine Paper and Packaging	261.6		248.9
Corporate and other (b)	29.8		29.1
Total	$	904.4	$	765.6

_______________________


(a)	Segment identifiable assets are those that are directly used in the segments operations.


(b)	Corporate assets are primarily cash and income taxes.

Geographic Information



	Year Ended December 31,
	2017		2016		2015
Net sales
United States	$	748.9	$	727.6	$	687.3
Europe	231.0		213.9		200.4
Consolidated	$	979.9	$	941.5	$	887.7

Net sales are attributed to geographic areas based on the physical location of the selling entities.



	December 31,
	2017		2016
Long-Lived Assets
United States	$	393.1	$	377.4
Europe	226.1		151.9
Total	$	619.2	$	529.3

Long-lived assets consist of property and equipment, deferred income taxes, goodwill, intangibles and other assets.

Concentrations

For the year ended December 31, 2017, sales to Veritiv and CNG each represented approximately 7 percent of consolidated net sales and approximately 15 percent of net sales of the fine paper and packaging business. For the years ended December 31, 2016 and 2015 sales to Veritiv represented approximately 8 percent and 10 percent, respectively, of consolidated net sales and approximately 15 percent and 20 percent, respectively, of net sales of the fine paper and packaging business. 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 effect on its operations.