Business Segment Information

3 Months Ended

Mar. 31, 2020

The Company’s reportable operating segments consist of Technical Products and Fine Paper and Packaging.

The Technical Products segment is an aggregation of the Company’s performance materials and filtration 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 deliver high performance benefits to customers. Included in this segment are tape and abrasives backings products, digital image transfer, durable label and other specialty substrate products ("Performance Materials"), and filtration media for transportation, water and other end use applications ("Filtration"). During the three months ended March 31, 2020, the Company aggregated the backings and specialties revenues into Performance Materials and recast the prior year period disclosure based on the economic similarity of the products per ASC Topic 280, Segment Reporting, and changes in the internal management of these products. The following table presents sales by product category for the technical products business:



	Three Months Ended March 31,
	2020		2019
Performance Materials	58	%	58	%
Filtration	42	%	42	%
Total	100	%	100	%

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



	Three Months Ended March 31,
	2020		2019
Graphic Imaging	76	%	79	%
Packaging	24	%	21	%
Total	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 following tables summarize the net sales and operating income for each of the Company’s business segments:



	Three Months Ended March 31,
	2020		2019
Net sales
Technical Products	$	142.2	$	140.0
Fine Paper and Packaging	91.4		99.7
Consolidated	$	233.6	$	239.7



	Three Months Ended March 31,
	2020 (a)			2019
Operating income (loss)
Technical Products	$	16.2		$	11.3
Fine Paper and Packaging	14.8			11.9
Unallocated corporate costs	(7.4		)	(5.8		)
Consolidated	$	23.6		$	17.4

(a) Operating income for the three months ended March 31, 2020 included (1) $1.1 million of costs ($0.6 million within Technical Products and $0.5 million within Fine Paper and Packaging) related to a one-time special payment to its mill operators related to the COVID-19 pandemic; (2) $1.4 million of restructuring and other non-routine costs ($0.2 million within Technical Products, $0.9 million within Fine Paper and Packaging, and $0.3 million within Unallocated corporate costs); and (3) $1.0 million of due diligence and transaction costs of a terminated acquisition attempt within Unallocated corporate costs.

The following tables represent a disaggregation of revenue from contracts with customers by location of the selling entities for the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31,
	2020		2019
United States	70	%	71	%
Germany	23	%	22	%
Rest of Europe	7	%	7	%
Total	100	%	100	%