Segment Information

9 Months Ended

Sep. 30, 2019

19.	SEGMENT INFORMATION

The following tables set forth financial and other information by segment for the period indicated:

Three months ended September 30									Other and
Dollars in millions	Composite Fibers				Airlaid Materials				Unallocated						Total
	2019		2018		2019		2018		2019			2018			2019			2018
Net sales	$	127.7	$	139.2	$	104.8	$	70.7	$	—		$	—		$	232.5		$	209.9
Cost of products sold		106.0		116.8		88.4		62.3		0.1			0.9			194.5			180.0
Gross profit (loss)		21.7		22.4		16.4		8.4		(0.1	)		(0.9	)		38.0			29.9
SG&A		10.6		10.5		4.8		2.9		8.3			12.4			23.7			25.8
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		(0.2	)		(0.2	)		(0.2	)		(0.2	)
Total operating income (loss)		11.1		11.9		11.6		5.5		(8.2	)		(13.1	)		14.5			4.3
Non-operating expense		—		—		—		—		(2.8	)		(1.6	)		(2.8	)		(1.6	)
Income (loss) before income taxes	$	11.1	$	11.9	$	11.6	$	5.5	$	(11.0	)	$	(14.7	)	$	11.8		$	2.8
Supplementary Data
Net tons sold (thousands)		33.4		37.4		35.9		24.0		—			—			69.3			61.5
Depreciation, depletion and amortization	$	6.4	$	7.1	$	5.3	$	3.4	$	0.9		$	1.0		$	12.6		$	11.5
Capital expenditures		4.0		3.0		2.9		1.9		0.5			1.3			7.4			6.2

Nine months ended September 30									Other and
Dollars in millions	Composite Fibers				Airlaid Materials				Unallocated						Total
	2019		2018		2019		2018		2019			2018			2019			2018
Net sales	$	389.0	$	423.7	$	307.7	$	213.1	$	—		$	—		$	696.7		$	636.8
Cost of products sold		322.2		349.5		262.3		184.7		1.1			2.8			585.6			537.1
Gross profit (loss)		66.8		74.2		45.4		28.4		(1.1	)		(2.8	)		111.1			99.7
SG&A		31.4		34.0		13.4		8.1		26.3			39.8			71.1			81.9
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		(1.3	)		(1.9	)		(1.3	)		(1.9	)
Total operating income (loss)		35.4		40.2		32.0		20.3		(26.1	)		(40.8	)		41.3			19.8
Non-operating expense		—		—		—		—		(11.1	)		(9.9	)		(11.1	)		(9.9	)
Income (loss) before income taxes	$	35.4	$	40.2	$	32.0	$	20.3	$	(37.2	)	$	(50.7	)	$	30.2		$	9.9
Supplementary Data
Net tons sold (thousands)		99.4		110.4		103.1		72.4		—			—			202.6			182.8
Depreciation, depletion and amortization	$	19.7	$	21.7	$	15.8	$	9.7	$	2.6		$	3.3		$	38.1		$	34.7
Capital expenditures		8.7		10.9		7.9		17.6		1.4			3.7			18.0			32.2

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

Segments Results of individual operating segments 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 segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the segments. 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 segment are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the table set forth above.

Management evaluates results of operations of the operating segments before 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 the segments 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 operating segments 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.

Specialty Papers’ results of operations are reported as discontinued operations. In addition, corporate shared services costs previously included in Specialty Papers’ results are required to be included in income from continuing operations and are reported as “other and unallocated”.