Business Segment Information

3 Months Ended

Mar. 31, 2019

Following the disposition of the Brattleboro mill which eliminated a significant portion of the products of the Other business segment, in January 2019 the Company realigned the remaining products manufactured in the Other business segment to be managed as part of the Technical Products business segment. As a result, the Company recast the comparable 2018 information and presented the $4.5 million of net sales for the three months ended March 31, 2018 of this remaining portion of the Other business segment within the Technical Products business segment. The 2018 operating income (loss) of the Other business segment was immaterial and was not recast. The Company also recast the total assets by segment and presented the $12.9 million of total assets as of December 31, 2018 of this remaining portion of the Other business segment within the Technical Products business segment.

The Company’s reportable operating segments consist of Technical Products, Fine Paper and Packaging and, in the prior year period only, 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 segment 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 transportation and other filtration media, tape and abrasives backings products, digital image transfer, durable label and other specialty substrate products.


•	The Fine Paper and Packaging segment is a leading supplier of premium printing and other high-end specialty papers, and premium packaging, primarily in North America.

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The Other segment was composed of papers sold to converters for end uses such as covering materials for datebooks, diaries, yearbooks and traditional photo albums. These product lines represented an operating segment which did not meet the quantitative threshold for a reportable segment, however, due to the dissimilar nature of these products, they were previously not managed as part of either the Fine Paper and Packaging or Technical Products segments.

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 following tables summarize the net sales, operating income, and total assets for each of the Company’s business segments.



	Three Months Ended March 31,
	2019		2018
Net sales
Technical Products	$	140.0	$	153.5
Fine Paper and Packaging	99.7		111.6
Other	—		1.4
Consolidated	$	239.7	$	266.5



	Three Months Ended March 31,
	2019			2018 (a)
Operating income (loss)
Technical Products	$	11.3		$	17.5
Fine Paper and Packaging	11.9			12.8
Other	—			—
Unallocated corporate costs	(5.8		)	(6.2		)
Consolidated	$	17.4		$	24.1


(a)	Consolidated operating income for three months ended March 31, 2018 includes a SERP settlement loss of $0.8 million in Unallocated corporate costs.



	March 31, 2019		December 31, 2018
Total Assets (a)
Technical Products	$	604.8	$	599.3
Fine Paper and Packaging	235.5		234.7
Corporate (b)	35.6		27.2
Consolidated	$	875.9	$	861.2


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

(b)

Corporate assets are primarily deferred income taxes and lease ROU assets.