Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

25.SEGMENT AND GEOGRAPHIC INFORMATION

The following tables set forth profitability and other information by segment:

For the year ended December 31, 2020	Composite		Airlaid		Other and
In thousands	Fibers		Materials		Unallocated			Total
Net sales	$	525,089	$	391,409	$	—		$	916,498
Cost of products sold		430,420		326,809		11,400			768,629
Gross profit (loss)		94,669		64,600		(11,400	)		147,869
SG&A		42,575		18,296		39,174			100,045
Gains on dispositions of plant, equipment and timberlands, net		—		—		(1,332	)		(1,332	)
Total operating income (loss)		52,094		46,304		(49,242	)		49,156
Non-operating expense		—		—		(16,797	)		(16,797	)
Income (loss) before income taxes	$	52,094	$	46,304	$	(66,039	)	$	32,359
Supplementary Data
Plant, equipment and timberlands, net	$	225,444	$	295,806	$	22,017		$	543,267
Depreciation, depletion and amortization		26,175		22,416		8,009			56,600
Capital expenditures		13,262		9,311		5,563			28,136

For the year ended December 31, 2019	Composite		Airlaid		Other and
In thousands	Fibers		Materials		Unallocated			Total
Net sales	$	521,666	$	406,007	$	—		$	927,673
Cost of products sold		432,154		346,568		1,409			780,131
Gross profit (loss)		89,512		59,439		(1,409	)		147,542
SG&A		41,629		18,321		35,017			94,967
Gains on dispositions of plant, equipment and timberlands, net		—		—		(2,060	)		(2,060	)
Total operating income (loss)		47,883		41,118		(34,366	)		54,635
Non-operating expense		—		—		(89,088	)		(89,088	)
Income (loss) before income taxes	$	47,883	$	41,118	$	(123,454	)	$	(34,453	)
Supplementary Data
Plant, equipment and timberlands, net	$	222,710	$	293,779	$	20,932		$	537,421
Depreciation, depletion and amortization		26,153		21,136		3,531			50,820
Capital expenditures		11,972		13,667		2,126			27,765

For the year ended December 31, 2018	Composite		Airlaid		Other and
In thousands	Fibers		Materials		Unallocated			Total
Net sales	$	554,869	$	311,417	$	—		$	866,286
Cost of products sold		462,270		269,272		4,337			735,879
Gross profit (loss)		92,599		42,145		(4,337	)		130,407
SG&A		44,205		12,182		55,334			111,721
Loss on dispositions of plant, equipment and timberlands, net		—		—		(3,256	)		(3,256	)
Total operating income (loss)		48,394		29,963		(56,415	)		21,942
Non-operating expense		—		—		(14,667	)		(14,667	)
Income (loss) before income taxes	$	48,394	$	29,963	$	(71,082	)	$	7,275
Supplementary Data
Plant, equipment and timberlands, net	$	233,167	$	298,232	$	24,645		$	556,044
Depreciation, depletion and amortization		28,256		14,892		4,377			47,525
Capital expenditures		15,685		21,646		4,798			42,129

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 operating 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 operating segments are allocated primarily based on an estimated utilization of support area services.

Management evaluates results of operations of the operating segments 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 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 segment 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 segment serves customers globally and focuses on higher value-added products in the following categories:

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

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

• Technical Specialties - consists of a diverse line of specialty engineered products used in commercial and industrial applications such as electrical energy storage, home, hygiene, and other highly-engineered fiber-based applications;

• Composite Laminate - decorative laminate solutions used in furniture, and household and commercial flooring, and other applications; and

• Metallized products - used in labels, packaging liners, gift wrap, and other consumer product applications.

The Airlaid Materials segment is a leading global supplier of highly absorbent cellulose-based airlaid nonwoven materials used in the following categories:

• Feminine hygiene and other hygiene applications;

• Specialty wipes;

• Tabletop;

• Home care;

• Adult incontinence; and

• Other consumer and industrial products.

Disaggregated net sales by categories and geographic region for Composite Fibers and Airlaid Materials is presented in Item 8 Financial Statements and Supplementary Data, Note 8 – “Revenue.”

GLATFELTER 2020 FORM 10-K 61

Approximately 16% of our consolidated net sales in 2020, 2019 and 2018, were from sales to Procter & Gamble Company, a customer of the Airlaid Materials segment.

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.

	2020				2019				2018
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	$	166,131	$	103,570	$	167,887	$	105,763	$	124,690	$	109,797
Germany		489,655		286,591		504,012		274,146		483,628		286,839
United Kingdom		73,604		50,140		70,018		52,039		76,053		50,483
Canada		112,128		68,975		121,789		72,436		114,877		74,448
Other		74,980		33,991		63,967		33,037		67,038		34,477
Total	$	916,498	$	543,267	$	927,673	$	537,421	$	866,286	$	556,044