Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is a leading global innovator and manufacturer of specialty materials, primarily focused on the production of nonwoven products. The Company operates through four operating segments, which represent its four reportable segments: North America, South America, Europe and Asia, with the main source of revenue being the sales of primary and intermediate products to consumer and industrial markets. The Company has one major customer, Procter & Gamble, which accounts for approximately 11% of its business, the loss of which would have a material adverse impact on reported financial results. Sales to this customer are reported within each of the reportable segments.

Segment information is based on the “management” approach which designates the internal reporting used by management for making decisions and assessing performance. The Company manages its business on a geographic basis, as each region provides similar products and services. The reportable segments are consistent with the manner in which financial information is disaggregated for internal review and decision making. The accounting policies of the reportable segments are the same as those described in Note 3, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the Company’s 2014 Form 10-K. Intercompany sales between the segments are eliminated.

Financial data by reportable segment is as follows:

In thousands	Three Months Ended June 30, 2015			Three Months Ended June 28, 2014			Six Months Ended June 30, 2015			Six Months Ended June 28, 2014
Net sales:
North America	$	202,345		$	195,425		$	410,667		$	388,723
South America	88,443			58,842			181,529			96,992
Europe	119,932			139,458			232,321			283,079
Asia	46,974			46,173			94,415			93,688
Total	$	457,694		$	439,898		$	918,932		$	862,482
Operating income (loss):
North America	$	31,633		$	22,976		$	60,830		$	40,758
South America	9,606			3,717			23,280			6,703
Europe	8,803			4,093			18,558			10,325
Asia	4,479			4,707			9,762			8,859
Unallocated Corporate	(15,312		)	(16,838		)	(31,729		)	(30,091		)
Eliminations	(49		)	(93		)	311			(130		)
Subtotal	39,160			18,562			81,012			36,424
Special charges, net	(6,613		)	(24,264		)	(12,635		)	(32,975		)
Total	$	32,547		$	(5,702	)	$	68,377		$	3,449
Depreciation and amortization expense:
North America	$	12,726		$	9,684		$	25,403		$	19,513
South America	5,802			2,819			11,647			4,772
Europe	4,872			7,900			8,872			13,786
Asia	5,697			5,524			11,218			11,096
Unallocated Corporate	1,087			(293		)	1,645			48
Subtotal	30,184			25,634			58,785			49,215
Amortization of loan acquisition costs	1,586			1,274			3,240			2,300
Total	$	31,770		$	26,908		$	62,025		$	51,515
Capital spending:
North America	$	10,830		$	10,807		$	14,277		$	16,858
South America	1,846			1,525			2,648			3,734
Europe	5,405			1,512			8,512			4,021
Asia	(1,111		)	4,884			2,357			7,484
Corporate	1,040			957			1,226			1,703
Total	$	18,010		$	19,685		$	29,020		$	33,800

In thousands	June 30, 2015		December 31, 2014
Division assets:
North America	$	827,019	$	819,133
South America	464,999		536,140
Europe	362,296		304,879
Asia	252,690		261,172
Corporate	84,440		113,849
Total	$	1,991,444	$	2,035,173

The Company serves customers focused on personal care, infection prevention and high performance solutions, where our products are critical components used in a broad array of consumer and commercial products. Products within each of these three applications are as follows:

• Personal Care - Specialty materials used for hygiene, dryer sheets and personal wipes products

• Infection Prevention - Specialty materials used for healthcare, filtration and disinfectant wipes products

• High Performance Solutions - Specialty materials used for Building & Construction/Geosynthetics & Agriculture, industrial wipes, filtration, and various other applications

Net sales by key application is as follows:

In thousands	Three Months Ended June 30, 2015		Three Months Ended June 28, 2014		Six Months Ended June 30, 2015		Six Months Ended June 28, 2014
Personal Care	$	227,527	$	206,894	$	462,756	$	401,364
Infection Prevention	86,045		84,695		165,901		165,134
High Performance Solutions	144,122		148,309		290,275		295,984
Total	$	457,694	$	439,898	$	918,932	$	862,482