Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

19. SEGMENT INFORMATION

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

Three months ended June 30									Other and
Dollars in thousands	Composite Fibers				Airlaid Materials				Unallocated						Total
	2020		2019		2020		2019		2020			2019			2020			2019
Net sales	$	122,137	$	132,581	$	94,046	$	102,472	$	—		$	—		$	216,183		$	235,053
Cost of products sold		100,387		109,565		77,581		87,825		6,152			163			184,120			197,553
Gross profit (loss)		21,750		23,016		16,465		14,647		(6,152	)		(163	)		32,063			37,500
SG&A		10,263		10,031		4,173		4,285		9,115			8,484			23,551			22,800
Gains on dispositions of plant,    equipment and timberlands, net		—		—		—		—		(597	)		(423	)		(597	)		(423	)
Total operating income (loss)		11,487		12,985		12,292		10,362		(14,670	)		(8,224	)		9,109			15,123
Non-operating expense		—		—		—		—		(8,837	)		(3,175	)		(8,837	)		(3,175	)
Income (loss) before income taxes	$	11,487	$	12,985	$	12,292	$	10,362	$	(23,507	)	$	(11,399	)	$	272		$	11,948
Supplementary Data
Net tons sold (thousands)		29,032		34,523		33,277		34,041		—			—			62,309			68,564
Depreciation, depletion and amortization(1)	$	6,431	$	6,601	$	5,473	$	5,279	$	2,302		$	852		$	14,206		$	12,732
Capital expenditures		2,105		1,516		1,712		2,821		1,180			431			4,997			4,768

Six months ended June 30									Other and
Dollars in thousands	Composite Fibers				Airlaid Materials				Unallocated						Total
	2020		2019		2020		2019		2020			2019			2020			2019
Net sales	$	254,848	$	261,298	$	192,895	$	202,888	$	—		$	—		$	447,743		$	464,186
Cost of products sold		207,372		216,128		159,827		173,814		11,679			1,127			378,878			391,069
Gross profit (loss)		47,476		45,170		33,068		29,074		(11,679	)		(1,127	)		68,865			73,117
SG&A		20,887		20,837		8,754		8,674		18,431			17,911			48,072			47,422
Gains on dispositions of plant,    equipment and timberlands, net		—		—		—		—		(597	)		(1,092	)		(597	)		(1,092	)
Total operating income (loss)		26,589		24,333		24,314		20,400		(29,513	)		(17,946	)		21,390			26,787
Non-operating expense		—		—		—		—		(11,104	)		(8,378	)		(11,104	)		(8,378	)
Income (loss) before income taxes	$	26,589	$	24,333	$	24,314	$	20,400	$	(40,617	)	$	(26,324	)	$	10,286		$	18,409
Supplementary Data
Net tons sold (thousands)		65,015		66,052		68,316		67,218		—			—			133,332			133,270
Depreciation, depletion and amortization(1)	$	12,897	$	13,275	$	10,924	$	10,547	$	5,787		$	1,698		$	29,608		$	25,520
Capital expenditures		6,061		4,704		3,815		5,013		2,135			916			12,011			10,633

(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.