22.	SEGMENT AND GEOGRAPHIC INFORMATION

The following tables set forth profitability and other information by business unit:

For the year ended December 31, 2016	Composite		Advanced Airlaid		Specialty		Other and
In millions	Fibers		Materials		Papers		Unallocated			Total
Net sales	$	517.0	$	244.3	$	843.6	$	—		$	1,604.8
Energy and related sales, net		—		—		6.1		—			6.1
Total revenue		517.0		244.3		849.7		—			1,610.9
Cost of products sold		416.4		209.5		752.6		13.8			1,392.3
Gross profit		100.6		34.8		97.1		(13.8	)		218.7
SG&A		46.3		8.4		55.9		80.1			190.7
Loss on dispositions of plant, equipment and timberlands, net		—		—		—		0.2			0.2
Total operating income (loss)		54.3		26.4		41.2		(94.1	)		27.8
Non-operating expense		—		—		—		(16.9	)		(16.9	)
Income (loss) before income taxes	$	54.3	$	26.4	$	41.2	$	(111.0	)	$	10.9
Supplementary Data
Plant, equipment and timberlands, net	$	235.1	$	179.3	$	352.9	$	8.6		$	775.9
Depreciation, depletion and amortization		27.8		9.0		26.3		2.7			65.8
Capital expenditures		18.8		36.8		99.0		5.6			160.2

For the year ended December 31, 2015	Composite		Advanced Airlaid		Specialty		Other and
In millions	Fibers		Materials		Papers		Unallocated			Total
Net sales	$	541.5	$	244.6	$	875.0	$	—		$	1,661.1
Energy and related sales, net		—		—		5.7		—			5.7
Total revenue		541.5		244.6		880.7		—			1,666.7
Cost of products sold		434.4		215.7		804.5		9.2			1,463.8
Gross profit		107.1		28.9		76.2		(9.2	)		203.0
SG&A		45.7		7.6		43.3		31.0			127.7
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		(21.1	)		(21.1	)
Total operating income (loss)		61.4		21.3		32.9		(19.1	)		96.4
Non-operating expense		—		—		—		(17.8	)		(17.8	)
Income (loss) before income taxes	$	61.4	$	21.3	$	32.9	$	(36.9	)	$	78.6
Supplementary Data
Plant, equipment and timberlands, net	$	258.1	$	153.5	$	281.6	$	5.7		$	698.9
Depreciation, depletion and amortization		26.2		8.8		26.0		2.2			63.2
Capital expenditures		26.8		7.8		63.5		1.8			99.9

For the year ended December 31, 2014	Composite		Advanced Airlaid		Specialty		Other and
In millions	Fibers		Materials		Papers		Unallocated			Total
Net sales	$	617.9	$	281.7	$	902.9	$	—		$	1,802.4
Energy and related sales, net		—		—		7.9		—			7.9
Total revenue		617.9		281.7		910.8		—			1,810.3
Cost of products sold		498.0		247.6		821.8		7.8			1,575.2
Gross profit		119.9		34.1		89.0		(7.8	)		235.1
SG&A		51.6		8.8		50.4		22.4			133.2
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		(4.9	)		(4.9	)
Total operating income (loss)		68.3		25.3		38.6		(25.3	)		106.8
Non-operating expense		—		—		—		(19.4	)		(19.4	)
Income (loss) before income taxes	$	68.3	$	25.3	$	38.6	$	(44.7	)	$	87.4
Supplementary Data
Plant, equipment and timberlands, net	$	277.8	$	163.6	$	250.1	$	6.1		$	697.6
Depreciation, depletion and amortization		29.7		9.1		29.9		1.9			70.6
Capital expenditures		23.9		7.6		32.1		2.4			66.0

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the business unit are allocated primarily based on an estimated utilization of support area services.

Management evaluates results of operations of the business units before pension expense, certain corporate level costs, and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of business unit results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

Our Composite Fibers business unit serves customers globally and focuses on higher value-added products in the following markets:

•

Food & Beverage filtration paper primarily used for single-serve coffee and tea products;

•

Wallcovering base materials used by the world’s largest wallpaper manufacturers;

•

Metallized products used in labels, packaging liners, gift wrap, and other consumer product applications;

•

Composite Laminate paper used in production of decorative laminates, furniture, and flooring applications; and

•

Technical Specialties a diverse line of special paper products used in applications such as electrical energy storage, transport and transmission, wipes, and other highly-engineered fiber-based applications.

Composite Fibers’ revenue composition by market consisted of the following for the years indicated:

In thousands	2016		2015		2014
Food & beverage	$	258,463	$	274,865	$	296,304
Wallcovering		90,767		91,620		149,957
Metallized		61,059		68,397		80,839
Composite laminates		35,107		34,897		38,159
Technical specialties and other		71,558		71,689		52,592
Total	$	516,954	$	541,468	$	617,851

The Advanced Airlaid Materials business unit is a leading global supplier of highly absorbent cellulose-based airlaid nonwoven materials primarily used to manufacture consumer products for growing global end-user markets. These products include:

•

feminine hygiene;

•

specialty wipes;

•

adult incontinence;

•

home care; and

•

other consumer products.

Advanced Airlaid Materials’ revenue composition by market consisted of the following for the years indicated:

In thousands	2016		2015		2014
Feminine hygiene	$	173,902	$	182,048	$	216,836
Specialty wipes		25,206		22,950		16,002
Adult incontinence		12,281		10,720		17,586
Home care		12,630		13,345		15,401
Other		20,243		15,526		15,848
Total	$	244,262	$	244,589	$	281,673

Our Specialty Papers business unit focuses on producing papers for the following markets:

•

Carbonless & non-carbonless forms papers for credit card receipts, multi-part forms, security papers and other end-user applications;

•

Engineered products for high speed ink jet printing, office specialty products, greeting cards, and other niche specialty applications;

•

Envelope and converting papers primarily utilized for transactional and direct mail envelopes; and

•

Book publishing papers for the production of high quality hardbound books and other book publishing needs.

Specialty Papers’ revenue composition by market consisted of the following for the years indicated:

In thousands	2016		2015		2014
Carbonless & forms	$	319,648	$	349,831	$	376,959
Engineered products		189,463		190,943		194,189
Envelope & converting		173,362		178,067		183,194
Book publishing		157,541		152,647		144,744
Other		3,568		3,538		3,805
Total	$	843,582	$	875,026	$	902,891

No individual customer accounted for more than 10% of our consolidated net sales in 2016, 2015 and 2014. However, one customer accounted for the majority of Advanced Airlaid Materials’ net sales in each of the past three years ended December 31, 2016.

Our net sales to external customers and location of net plant, equipment and timberlands are summarized below. Net sales are attributed to countries based upon origin of shipment.

	2016				2015				2014
In thousands	Net sales		Plant, Equipment and Timberlands – Net		Net sales		Plant, Equipment and Timberlands – Net		Net sales		Plant, Equipment and Timberlands – Net
United States	$	918,567	$	391,977	$	959,730	$	287,447	$	980,933	$	256,251
Germany		427,520		220,380		444,009		232,340		529,003		257,311
United Kingdom		78,759		51,903		86,442		62,931		103,219		62,617
Canada		115,902		79,727		118,568		81,201		129,401		82,774
Other		64,049		31,911		52,335		34,945		59,859		38,655
Total	$	1,604,797	$	775,898	$	1,661,084	$	698,864	$	1,802,415	$	697,608