Segment Information

3 Months Ended

Mar. 31, 2020

18.	SEGMENT INFORMATION

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

Three months ended March 31									Other and
Dollars in thousands	Composite Fibers				Airlaid Materials				Unallocated						Total
	2020		2019		2020		2019		2020			2019			2020			2019
Net sales	$	132,711	$	128,717	$	98,849	$	100,416	$	—		$	—		$	231,560		$	229,133
Cost of products sold		106,985		106,563		82,246		85,989		5,454			964			194,685			193,516
Gross profit (loss)		25,726		22,154		16,603		14,427		(5,454	)		(964	)		36,875			35,617
SG&A		10,624		10,805		4,581		4,389		9,389			9,428			24,594			24,622
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—			(669	)		—			(669	)
Total operating income (loss)		15,102		11,349		12,022		10,038		(14,843	)		(9,723	)		12,281			11,664
Non-operating expense		—		—		—		—		(2,267	)		(5,203	)		(2,267	)		(5,203	)
Income (loss) before income taxes	$	15,102	$	11,349	$	12,022	$	10,038	$	(17,110	)	$	(14,926	)	$	10,014		$	6,461
Supplementary Data
Net tons sold (thousands)		35,983		31,529		35,039		33,177		—			—			71,022			64,706
Depreciation, depletion and amortization⁽¹⁾	$	6,466	$	6,674	$	5,451	$	5,268	$	3,485		$	846		$	15,402		$	12,788
Capital expenditures		3,956		3,188		2,103		2,192		955			485			7,014			5,865

(1)

The amount presented in 2020 in the Other and unallocated column represents accelerated depreciation incurred in connection with the restructuring of our metallized operations.

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.