v3.25.2
Segments
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Segments
17. Segments
As discussed in Note 1—Nature of Operations and Basis of Presentation, beginning in the first quarter of 2025, the Company reorganized its segment structure and now operates in five operating segments: Cellulose Specialties, Cellulose Commodities, Biomaterials, Paperboard and High-Yield Pulp. Corporate consists primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. Prior period segment results have been recast to align with this new segment reporting structure.
The Company uses operating income (loss) as a measure of profitability to evaluate segment performance. Intersegment sales consist primarily of High-Yield Pulp sales to Paperboard, which are eliminated in consolidation. Additionally, there are intersegment sales of chemicals, sugars and energy from the cellulose plants to Biomaterials, also eliminated in consolidation. Intersegment sales prices are at rates that approximate market for the respective operating area.
Net sales, significant operating expenses, operating income (loss) and other financial information by segment were as follows:
Three Months Ended June 28, 2025
Cellulose SpecialtiesBiomaterialsCellulose CommoditiesPaperboardHigh-Yield Pulp
Corporate(a) and Eliminations
Total
Net sales$207,682 $6,531 $59,443 $46,451 $28,858 $(8,917)$340,048 
Cost of sales
Key input costs (wood, chemicals, energy)81,770 1,362 27,482 22,695 17,134 (8,685)141,758 
Freight9,365 527 4,407 4,617 5,957 — 24,873 
Depreciation and amortization16,705 579 7,438 2,904 517 — 28,143 
Fixed and other general costs(b)
67,121 1,708 27,751 14,122 11,410 (479)121,633 
Total cost of sales174,961 4,176 67,078 44,338 35,018 (9,164)316,407 
Selling, general and administrative expense3,414 1,308 1,287 2,637 717 8,602 17,965 
Indefinite suspension charges— — 229 — — — 229 
Other operating expense, net(c)
761 57 562 — 9 5,397 6,786 
Operating income (loss)$28,546 $990 $(9,713)$(524)$(6,886)$(13,752)$(1,339)
Total depreciation and amortization$16,798 $754 $7,178 $5,382 $546 $529 $31,187 
Three Months Ended June 29, 2024
Cellulose SpecialtiesBiomaterialsCellulose CommoditiesPaperboardHigh-Yield Pulp
Corporate(a) and Eliminations
Total
Net sales$240,642 $7,790 $85,458 $60,299 $32,833 $(7,977)$419,045 
Cost of sales
Key input costs (wood, chemicals, energy)90,517 1,587 49,135 31,025 17,708 (8,525)181,447 
Freight11,087 858 7,410 5,176 5,260 — 29,791 
Depreciation and amortization17,966 657 10,807 1,494 558 — 31,482 
Fixed and other general costs(b)
69,571 2,968 34,787 10,276 9,310 1,104 128,016 
Total cost of sales189,141 6,070 102,139 47,971 32,836 (7,421)370,736 
Selling, general and administrative expense2,928 289 1,893 2,461 767 13,471 21,809 
Indefinite suspension charges— — 6,626 — — — 6,626 
Other operating (income) expense, net(c)
(893)(4)(4,461)(2,333)(1,583)951 (8,323)
Operating income (loss)$49,466 $1,435 $(20,739)$12,200 $813 $(14,978)$28,197 
Total depreciation and amortization$18,578 $653 $9,796 $3,206 $563 $715 $33,511 
Six Months Ended June 28, 2025
Cellulose SpecialtiesBiomaterialsCellulose CommoditiesPaperboardHigh-Yield Pulp
Corporate(a) and Eliminations
Total
Net sales$408,790 $13,452 $134,498 $95,644 $60,347 $(16,716)$696,015 
Cost of sales
Key input costs (wood, chemicals, energy)161,206 2,587 66,374 49,377 36,274 (16,527)299,291 
Freight18,653 1,055 10,737 9,465 12,213 — 52,123 
Depreciation and amortization31,883 1,099 17,136 6,132 1,076 — 57,326 
Fixed and other general costs(b)
128,792 3,239 57,462 26,859 23,476 (248)239,580 
Total cost of sales340,534 7,980 151,709 91,833 73,039 (16,775)648,320 
Selling, general and administrative expense7,432 2,667 3,671 5,514 1,330 20,610 41,224 
Indefinite suspension charges— — 634 — — — 634 
Other operating expense, net(c)
1,002 71 922 471 9 19,794 22,269 
Operating income (loss)$59,822 $2,734 $(22,438)$(2,174)$(14,031)$(40,345)$(16,432)
Total depreciation and amortization$31,650 $1,235 $16,928 $10,634 $1,121 $870 $62,438 
Six Months Ended June 29, 2024
Cellulose SpecialtiesBiomaterialsCellulose CommoditiesPaperboardHigh-Yield Pulp
Corporate(a) and Eliminations
Total
Net sales$445,994 $14,577 $180,731 $113,259 $67,159 $(15,019)$806,701 
Cost of sales
Key input costs (wood, chemicals, energy)171,034 2,707 99,667 58,024 36,676 (15,452)352,656 
Freight20,895 1,735 14,823 10,023 11,004 — 58,480 
Depreciation and amortization33,761 757 22,285 2,897 1,147 — 60,847 
Fixed and other general costs(b)
128,590 5,668 76,834 19,660 18,198 698 249,648 
Total cost of sales354,280 10,867 213,609 90,604 67,025 (14,754)721,631 
Selling, general and administrative expense5,588 570 4,177 4,879 1,575 26,095 42,884 
Indefinite suspension charges— — 6,626 — — — 6,626 
Other operating expense, net(c)
(842)(25)(4,451)(2,333)(1,583)(478)(9,712)
Operating income (loss)$86,968 $3,165 $(39,230)$20,109 $142 $(25,882)$45,272 
Total depreciation and amortization$35,807 $748 $21,520 $6,436 $1,119 $1,164 $66,794 
(a)Includes ERP and certain lease expense shared across operating segments.
(b)Includes salaries, wages and benefits, maintenance costs and other costs of sales.
(c)Primarily includes foreign exchange gain (loss), environmental remediation expense, gain (loss) on disposal of property, plant and equipment and income (loss) from equity method investments.
Due to their integrated nature, certain operating and production assets are jointly utilized across the Cellulose Specialties and Cellulose Commodities segments. These assets are essential for the production processes of both types of products and are not directly attributable to either segment. As such, direct allocation to a specific segment is not feasible or prudent and they are considered shared assets. The Company allocates related fixed, maintenance and other costs based on a rational and consistent approach that reflects the segments’ contribution, usage and economic benefit derived from the shared assets in the production process, which varies from period to period between specialties and commodities products.
Identifiable assets by segment were as follows:
June 28, 2025December 31, 2024
Cellulose Specialties$176,801 $214,659 
Biomaterials89,373 78,006 
Cellulose Commodities170,177 187,996 
Paperboard96,969 93,600 
High-Yield Pulp46,505 49,798 
Shared/Corporate(a)
1,175,143 1,505,597 
Total assets$1,754,968 $2,129,657 
(a)At June 28, 2025 and December 31, 2024, included $1.1 billion and $1.0 billion, respectively, of assets shared by Cellulose Specialties and Cellulose Commodities. Corporate includes ERP and certain other operating and lease assets shared across segments.
Capital additions by segment were as follows:
Six Months Ended
June 28, 2025June 29, 2024
Cellulose Specialties$— $— 
Biomaterials1,429 7,590 
Cellulose Commodities1,537 6,904 
Paperboard1,502 1,655 
High-Yield Pulp1,895 962 
Shared/Corporate(a)
55,858 41,488 
Total capital additions(b)
$62,221 $58,599 
(a)Includes $54 million and $36 million of asset additions during the six months ended June 28, 2025 and June 29, 2024, respectively, that are shared by Cellulose Specialties and Cellulose Commodities. Corporate includes capital additions for ERP and certain other operational assets shared across segments.
(b)Amounts exclude the impact of changes in capital assets purchased on account and government grants.