Business Segment and Geographic Information

The Company's reportable operating segments 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,
	2018		2017		2016
Filtration	41	%	44	%	42	%
Backings	28	%	32	%	31	%
Specialty	31	%	24	%	27	%
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,
	2018		2017		2016
Graphic Imaging	78	%	80	%	81	%
Packaging	18	%	16	%	14	%
Filing/Office	4	%	4	%	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,
	2018		2017		2016
Net sales
Technical Products	$	567.6	$	502.1	$	466.4
Fine Paper and Packaging	445.8		455.3		452.1
Other	21.5		22.5		23.0
Consolidated	$	1,034.9	$	979.9	$	941.5



	Year Ended December 31,
	2018			2017			2016
Operating income (loss)
Technical Products (a)	$	50.9		$	55.3		$	65.6
Fine Paper and Packaging (b)	29.4			69.5			70.7
Other (c)	(6.4		)	(0.4		)	(1.1		)
Unallocated corporate costs (d)	(19.8		)	(20.1		)	(21.1		)
Consolidated	$	54.1		$	104.3		$	114.1

_______________________


(a)	Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring and integration costs, and pension settlement charges of $2.5 million, offset by favorable acquisition adjustments of $3.9 million.

(b)

Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and pension settlement charges of $24.6 million, offset by favorable insurance settlement of $0.3 million. Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $2.9 million. Operating income for the year ended December 31, 2016 included integration costs of $1.8 million.

(c)

Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and a pension settlement charge of $6.0 million, offset by favorable insurance settlement of $0.1 million. Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $0.3 million. Operating income for the years ended December 31, 2016 included integration costs of $1.1 million.

(d)

Unallocated corporate costs for the year ended December 31, 2018 included restructuring costs and pension settlement charge of $1.9 million. 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.



	Year Ended December 31,
	2018		2017		2016
Depreciation and amortization
Technical Products	$	23.7	$	19.4	$	18.1
Fine Paper and Packaging	9.9		11.0		11.1
Other	0.9		1.2		1.3
Corporate	1.6		1.7		1.5
Consolidated	$	36.1	$	33.3	$	32.0



	Year Ended December 31,
	2018		2017		2016
Capital expenditures
Technical Products	$	28.0	$	28.6	$	57.9
Fine Paper and Packaging	8.7		12.5		7.6
Other	—		1.1		0.3
Corporate	1.4		0.5		2.7
Consolidated	$	38.1	$	42.7	$	68.5



	December 31,
	2018		2017
Total Assets (a)
Technical Products	$	586.4	$	613.0
Fine Paper and Packaging	234.7		261.6
Corporate and other (b)	40.1		29.8
Total	861.2		904.4

_______________________


(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,
	2018		2017		2016
Net sales
United States	$	744.4	$	748.9	$	727.6
Germany	216.5		210.3		201.2
Rest of Europe	74.0		20.7		12.7
Consolidated	$	1,034.9	$	979.9	$	941.5

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



	December 31,
	2018		2017
Long-Lived Assets
United States	$	366.3	$	393.1
Germany	157.9		164.6
Rest of Europe	59.1		61.5
Total	$	583.3	$	619.2

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

Concentrations

For the year ended December 31, 2018, sales to CNG and Veritiv represented approximately 7 percent and 5 percent, respectively, of consolidated net sales, and approximately 16 percent and 12 percent, respectively, of net sales of the fine paper and packaging business. 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 year ended December 31, 2016 sales to Veritiv represented approximately 8 percent of consolidated net sales and approximately 15 percent 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.