10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2015

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

96 South George Street, Suite 520

York, Pennsylvania 17401

(Address of principal executive offices)

(717) 225-4711

(Registrant’s telephone number, including area code)

Commission file number	Exact name of registrant as specified in its charter	IRS Employer Identification No.	State or other jurisdiction of incorporation or organization
1-03560	P. H. Glatfelter Company	23-0628360	Pennsylvania

N/A

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at the past 90 days.    Yes  þ    No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.        þ  Large accelerated filer        ¨   Accelerated filer        ¨  Non-accelerated filer        ¨  Small reporting company  (Do not check if a smaller reporting company).

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ¨    No  þ.

Common Stock outstanding on October 30, 2015 totaled 43,406,546 shares.

P. H. GLATFELTER COMPANY AND

SUBSIDIARIES

REPORT ON FORM 10-Q

For the QUARTERLY PERIOD ENDED

September 30, 2015

Table of Contents

		Page
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements
	Condensed Consolidated Statements of Income for the three months and nine months ended September  30, 2015 and 2014 (unaudited)		2
	Condensed Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2015 and 2014 (unaudited)		3
	Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014 (unaudited)		5
	Notes to Condensed Consolidated Financial Statements (unaudited)		6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3	Quantitative and Qualitative Disclosures About Market Risks		39
Item 4	Controls and Procedures		39
PART II – OTHER INFORMATION
Item 6	Exhibits		40
SIGNATURES			40

PART I

Item  1 – Financial Statements

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three months ended September 30						Nine months ended September 30
In thousands, except per share	2015			2014			2015			2014
Net sales	$	419,960		$	465,092		$	1,248,232		$	1,366,154
Energy and related sales, net		1,153			860			3,936			6,912
Total revenues		421,113			465,952			1,252,168			1,373,066
Costs of products sold		361,205			385,439			1,107,319			1,196,076
Gross profit		59,908			80,513			144,849			176,990
Selling, general and administrative expenses		39,792			37,886			100,201			103,751
Gains on dispositions of plant, equipment and timberlands, net		(123	)		(1,590	)		(2,888	)		(3,881	)
Operating income		20,239			44,217			47,536			77,120
Non-operating income (expense)
Interest expense		(4,317	)		(4,671	)		(13,177	)		(14,245	)
Interest income		90			30			232			143
Other, net		(220	)		(167	)		(192	)		105
Total non-operating expense		(4,447	)		(4,808	)		(13,137	)		(13,997	)
Income before income taxes		15,792			39,409			34,399			63,123
Income tax provision		2,288			9,037			4,122			13,434
Net income	$	13,504		$	30,372		$	30,277		$	49,689
Earnings per share
Basic	$	0.31		$	0.71		$	0.70		$	1.15
Diluted		0.31			0.69			0.69			1.13
Cash dividends declared per common share	$	0.12		$	0.11		$	0.36		$	0.33
Weighted average shares outstanding
Basic		43,457			43,049			43,363			43,233
Diluted		43,865			43,841			43,949			44,111

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GLATFELTER

9.30.15 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015			2014
Net income	$	13,504		$	30,372		$	30,277		$	49,689
Foreign currency translation adjustments		(3,262	)		(33,450	)		(27,895	)		(33,255	)
Net change in:
Deferred gains (losses) on cash flow hedges, net of taxes of $1,045, $(593), $938, and $(974), respectively		(2,823	)		1,475			(2,558	)		2,476
Unrecognized retirement obligations, net of taxes of $(1,895), $(1,463), $(5,675), and $(4,391), respectively		3,083			2,398			9,253			7,193
Other comprehensive loss		(3,002	)		(29,577	)		(21,200	)		(23,586	)
Comprehensive income	$	10,502		$	795		$	9,077		$	26,103

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GLATFELTER

9.30.15 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	September 30			December 31
In thousands	2015			2014
Assets
Cash and cash equivalents	$	73,665		$	99,837
Accounts receivable, net		177,917			163,760
Inventories		248,086			248,705
Prepaid expenses and other current assets		59,776			62,320
Total current assets		559,444			574,622
Plant, equipment and timberlands, net		697,324			697,608
Goodwill		78,126			84,137
Intangible assets		66,212			77,098
Other assets		136,641			128,039
Total assets	$	1,537,747		$	1,561,504
Liabilities and Shareholders’ Equity
Current portion of long-term debt	$	7,580		$	5,734
Accounts payable		151,751			157,070
Dividends payable		5,228			4,775
Environmental liabilities		16,022			1,075
Other current liabilities		111,769			111,077
Total current liabilities		292,350			279,731
Long-term debt		381,535			398,878
Deferred income taxes		101,207			104,016
Other long-term liabilities		116,539			129,770
Total liabilities		891,631			912,395
Commitments and contingencies		—			—
Shareholders’ equity
Common stock		544			544
Capital in excess of par value		52,852			54,342
Retained earnings		934,077			919,468
Accumulated other comprehensive loss		(176,070	)		(154,870	)
		811,403			819,484
Less cost of common stock in treasury		(165,287	)		(170,375	)
Total shareholders’ equity		646,116			649,109
Total liabilities and shareholders’ equity	$	1,537,747		$	1,561,504

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GLATFELTER

9.30.15 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Nine months ended September 30
In thousands	2015			2014
Operating activities
Net income	$	30,277		$	49,689
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization		47,423			53,547
Amortization of debt issue costs		893			985
Pension expense, net of unfunded benefits paid		5,541			4,575
Charge for impairment of intangible asset		1,200			3,262
Charge for environmental matter		10,000			—
Deferred income tax benefit		(2,043	)		(4,434	)
Gains on dispositions of plant, equipment and timberlands, net		(2,888	)		(3,881	)
Share-based compensation		5,502			5,811
Change in operating assets and liabilities
Accounts receivable		(21,572	)		(35,528	)
Inventories		(5,714	)		(19,982	)
Prepaid and other current assets		420			(2,367	)
Accounts payable		5,561			(25,576	)
Accruals and other current liabilities		797			(6,214	)
Environmental matters		(5,617	)		(39	)
Other		743			1,532
Net cash provided by operating activities		70,523			21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(74,280	)		(47,036	)
Proceeds from disposals of plant, equipment and timberlands, net		3,181			4,051
Acquisition, net of cash acquired		(224	)		—
Other		(1,600	)		(600	)
Net cash used by investing activities		(72,923	)		(43,585	)
Financing activities
Net repayments of revolving credit facility		—			(30,720	)
Payments of borrowing costs		(1,329	)		—
Repayment of term loans		(3,387	)		—
Proceeds from term loans		—			12,592
Repurchases of common stock		—			(12,180	)
Payments of dividends		(15,215	)		(13,935	)
Payments related to share-based compensation awards and other		(2,015	)		(1,764	)
Net cash used by financing activities		(21,946	)		(46,007	)
Effect of exchange rate changes on cash		(1,826	)		(1,015	)
Net decrease in cash and cash equivalents		(26,172	)		(69,227	)
Cash and cash equivalents at the beginning of period		99,837			122,882
Cash and cash equivalents at the end of period	$	73,665		$	53,655
Supplemental cash flow information
Cash paid for:
Interest, net of amounts capitalized	$	8,943		$	9,959
Income taxes, net		14,566			19,928

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GLATFELTER

9.30.15 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. ORGANIZATION

P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, PA, U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in Russia and China. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

2. ACCOUNTING POLICIES

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2014 Annual Report on Form 10-K.

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a

common revenue standard for GAAP and International Financial Reporting Standards. The FASB deferred the effective date to provide adequate time to effectively implement the new revenue standard. The new standard is now required to be adopted for fiscal years beginning after December 15, 2017. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

3. ACQUISITION

On October 1, 2014, we completed the acquisition of all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for $8.2 million. SPO has annual sales of approximately $33 million. SPO, located near Frankfurt, Germany, primarily produces highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags. SPO is operated as part of the Composite Fibers business unit, and complements other technical specialties.

4. GAINS ON DISPOSITIONS OF PLANT, EQUIPMENT AND TIMBERLANDS, NET

During the first nine months of 2015 and 2014, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2015
Timberlands		1,398	$	2,794	$	2,704
Other		n/a		387		184
Total			$	3,181	$	2,888
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881

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GLATFELTER

9.30.15 Form 10-Q

On October 9, 2015, we completed the sale of 9,803 acres of timberlands for $17.0 million in cash. We expect to realize an after-tax gain on the transaction of approximately $9.1 million in the fourth quarter of 2015.

5. EARNINGS PER SHARE

The following table sets forth the details of basic and diluted earnings per share (“EPS”):

	Three months ended September 30
In thousands, except per share	2015		2014
Net income	$	13,504	$	30,372
Weighted average common shares outstanding used in basic EPS		43,457		43,049
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		408		792
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,865		43,841
Earnings per share
Basic	$	0.31	$	0.71
Diluted		0.31		0.69

	Nine months ended September 30
In thousands, except per share	2015		2014
Net income	$	30,277	$	49,689
Weighted average common shares outstanding used in basic EPS		43,363		43,233
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		586		878
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,949		44,111
Earnings per share
Basic	$	0.70	$	1.15
Diluted		0.69		1.13

The following table sets forth potential common shares outstanding for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive:

	September 30
In thousands	2015		2014
Three months ended		696		282
Nine months ended		696		282

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GLATFELTER

9.30.15 Form 10-Q

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2015 and 2014.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2015	$	(58,857	)	$	2,621		$	(114,076	)	$	(2,756	)	$	(173,068	)
Other comprehensive income before reclassifications (net of tax)		(3,262	)		(1,381	)		—			—			(4,643	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(1,442	)		3,090			(7	)		1,641
Net current period other comprehensive income (loss)		(3,262	)		(2,823	)		3,090			(7	)		(3,002	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(27,895	)		793			—			—			(27,102	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(3,351	)		9,274			(21	)		5,902
Net current period other comprehensive income (loss)		(27,895	)	$	(2,558	)		9,274			(21	)		(21,200	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

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GLATFELTER

9.30.15 Form 10-Q

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015			2014
Description													Line Item in Statements of Income
Cash flow hedges (Note 15)
(Gains) losses on cash flow hedges	$	(1,972	)	$	137		$	(4,595	)	$	1,227		Costs of products sold
Tax (benefit) expense		530			(41	)		1,244			(345	)	Income tax provision
Net of tax		(1,442	)		96			(3,351	)		882
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		571			621			1,713			1,864		Costs of products sold
		189			206			568			618		Selling, general and administrative
Actuarial losses		3,144			2,215			9,432			6,644		Costs of products sold
		1,082			762			3,247			2,287		Selling, general and administrative
		4,986			3,804			14,960			11,413
Tax benefit		(1,896	)		(1,441	)		(5,686	)		(4,325	)	Income tax provision
Net of tax		3,090			2,363			9,274			7,088
Amortization of deferred benefit other plan items
Prior service costs		(58	)		(59	)		(173	)		(178	)	Costs of products sold
		(12	)		(13	)		(37	)		(38	)	Selling, general and administrative
Actuarial losses		48			106			142			319		Costs of products sold
		10			23			31			68		Selling, general and administrative
		(12	)		57			(37	)		171
Tax benefit		5			(22	)		16			(66	)	Income tax provision
Net of tax		(7	)		35			(21	)		105
Total reclassifications, net of tax	$	1,641		$	2,494		$	5,902		$	8,075

7. INCOME TAXES

Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

As of September 30, 2015 and December 31, 2014, we had $12.0 million and $14.9 million of gross unrecognized tax benefits. As of September 30, 2015, if such benefits were to be recognized, approximately $12.0 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate. Gross unrecognized tax benefits reflected a net decrease of $2.9 million during the nine months ended September 30, 2015, primarily due to the completion of federal and state examinations during the second quarter.

We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities.

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2014		N/A
State		2010 - 2014		N/A
Canada (1)		2010 - 2014		N/A
Germany (1)		2012 - 2014		2007 - 2011
France		2013 - 2014		2011 - 2012
United Kingdom		2013 - 2014		N/A
Philippines		2012, 2014		2013

(1) – includes provincial or similar local jurisdictions, as applicable

- 9 -

GLATFELTER

9.30.15 Form 10-Q

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. Substantially all of this range relates to tax positions taken in the U.S. and Germany.

We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2015		2014
Interest expense	$	—	$	0.1
Penalties		—		—
	September 30 2015		December 31 2014
Accrued interest payable	$	0.6	$	0.6

8. STOCK-BASED COMPENSATION

The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights.

Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. PSAs are issued annually to members of management and each respective grant cliff vests each December 31 of the third year following the grant, assuming the achievement of predetermined, three-year cumulative performance targets. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For both RSUs and PSAs, the grant date fair value of the awards, which is equal to the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury.

The following table summarizes RSU and PSA activity during periods indicated:

Units	2015			2014
Balance at January 1,		888,942			1,001,814
Granted		160,514			173,206
Forfeited		(87,567	)		(45,355	)
Shares delivered		(286,857	)		(239,394	)
Balance at September 30,		675,032			890,271

The amount granted in 2015 and 2014 includes PSAs of 105,017 and 95,691 respectively, exclusive of reinvested dividends.

- 10 -

GLATFELTER

9.30.15 Form 10-Q

The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	395	$	854
Nine months ended		1,214		1,874

Stock Only Stock Appreciation Rights (“SOSARs”) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. The SOSARs vest ratably over a three year period and have a term of ten years.

The following table sets forth information related to outstanding SOSARS.

	2015					2014
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,864,707		$	16.20		1,977,133		$	13.91
Granted		423,590			24.62		281,881			29.22
Exercised		(70,347	)		14.12		(26,245	)		15.67
Canceled / forfeited		(17,559	)		25.24		(29,842	)		19.36
Outstanding at September 30,		2,200,391		$	17.82		2,202,927		$	15.77
SOSAR Grants
Weighted average grant date fair value per share	$	7.46				$	9.81
Aggregate grant date fair value (in thousands)	$	3,134				$	2,764
Black-Scholes assumptions
Dividend yield		1.94	%				1.48	%
Risk free rate of return		1.64	%				1.74	%
Volatility		36.38	%				37.59	%
Expected life		6 yrs					6 yrs

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	671	$	577
Nine months ended		1,940		1,585

9. RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

The following tables provide information with respect to the net periodic costs of our pension and post retirement medical benefit plans.

	Three months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	2,850		$	2,602
Interest cost		5,868			6,216
Expected return on plan assets		(11,498	)		(10,969	)
Amortization of prior service cost		760			827
Amortization of unrecognized loss		4,226			2,977
Net periodic benefit cost	$	2,206		$	1,653
Other Benefits
Service cost	$	358		$	614
Interest cost		499			597
Amortization of prior service cost		(70	)		(72	)
Amortization of unrecognized loss		58			129
Net periodic benefit cost	$	845		$	1,268

	Nine months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	8,546		$	7,810
Interest cost		17,606			18,696
Expected return on plan assets		(34,495	)		(32,907	)
Amortization of prior service cost		2,281			2,482
Amortization of unrecognized loss		12,679			8,931
Net periodic benefit cost	$	6,617		$	5,012
Other Benefits
Service cost	$	1,074		$	1,844
Interest cost		1,498			1,793
Amortization of prior service cost		(210	)		(216	)
Amortization of unrecognized loss		173			387
Net periodic benefit cost	$	2,535		$	3,808

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GLATFELTER

9.30.15 Form 10-Q

10. ASSET IMPAIRMENT CHARGE

During the third quarters of 2015 and 2014, in connection with our annual test of potential impairment of indefinite lived intangible assets, we recorded $1.2 million and $3.3 million, respectively, of non-cash asset impairment charges related to a trade name intangible asset acquired in connection with our Composite Fibers business unit’s 2013 Dresden acquisition. The charges were due to changes in the estimated fair value of the trade name, primarily driven by lower forecasted revenues associated with the business, an increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political and economic instability. The charges are recorded in the accompanying condensed consolidated statements of income under the caption “Selling, general and administrative expenses.” The fair value of the asset was estimated using a discounted cash flow model, Level 3 fair value classification.

11. INVENTORIES

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2015		2014
Raw materials	$	59,985	$	61,266
In-process and finished		117,980		117,580
Supplies		70,121		69,859
Total	$	248,086	$	248,705

12. LONG-TERM DEBT

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2015			2014
Revolving credit facility, due Mar. 2020	$	83,464		$	—
Revolving credit facility, due Nov. 2016		—			90,555
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,803			12,155
2.05% Term Loan, due Mar. 2023		44,848			51,902
Total long-term debt		389,115			404,612
Less current portion		(7,580	)		(5,734	)
Long-term debt, net of current portion	$	381,535		$	398,878

On March 12, 2015, we amended our revolving credit agreement with a consortium of banks (the “Revolving Credit Facility”) which increased the amount available for borrowing to $400 million, extended the maturity of the facility to March 12, 2020, and instituted a revised interest rate pricing grid.

For all US dollar denominated borrowings under the Revolving Credit Facility, the borrowing rate is, at our option, either, (a) the bank’s base rate which is equal to the greater of i) the prime rate; ii) the federal funds rate plus 50 basis points; or iii) the daily Euro-rate plus 100 basis points plus an applicable spread over either i), ii) or iii) ranging from 12.5 basis points to 100 basis points based on the Company’s leverage ratio and its corporate credit ratings determined by Standard & Poor’s Rating Services and Moody’s Investor Service, Inc. (the “Corporate Credit Rating”); or (b) the daily Euro-rate plus an applicable margin ranging from 112.5 basis points to 200 basis points based on the Company’s leverage ratio and the Corporate Credit Rating. For non-US dollar denominated borrowings, interest is based on (b) above.

The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); and ii) a consolidated EBITDA to interest expense ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of September 30, 2015, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.2x which is within the limits set forth in our credit agreement. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the credit facility.

On October 3, 2012, we completed a private placement offering of $250.0 million aggregate principal amount of 5.375% Senior Notes due 2020 (the “5.375% Notes”). The 5.375% Notes are fully and unconditionally guaranteed, jointly and severally, by PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC (the “Guarantors”). Interest on the 5.375% Notes is payable semiannually in arrears on April 15 and October 15.

The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a “make-whole” premium as specified in the Indenture. These Notes and the guarantees of the notes are senior obligations of the Company and the Guarantors, respectively, rank equally in right of payment with future senior indebtedness of the Company and the Guarantors and will mature on October 15, 2020.

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9.30.15 Form 10-Q

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of September 30, 2015, we met all of the requirements of our debt covenants.

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, has two separate agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”). Pursuant to the first agreement, dated April 11, 2013, Gernsbach borrowed €42.7 million (or $57.6 million) aggregate principal amount (the “2013 IKB Loan”). The 2013 IKB Loan is repayable in 32 quarterly installments beginning on June 30, 2015 and ending on March 31, 2023 and bears interest at a rate of 2.05% per annum.

Pursuant to the second agreement with IKB dated September 4, 2014, Gernsbach borrowed €10.0 million (or $12.6 million) aggregate principal amount (the “2014 IKB Loan”). The 2014 IKB Loan is repayable in 27 quarterly installments beginning on September 30, 2015 and ending on June 30, 2022 and bears interest at a rate of 2.40% per annum. Interest on the IKB Loan or portion thereof is payable quarterly.

The IKB loans provide for representations, warranties and covenants customary for financings of these types. The financial covenants contained in each of the IKB loans, which relate to the minimum ratio of consolidated EBITDA to consolidated interest expense and the maximum ratio of consolidated total net debt to consolidated adjusted EBITDA, will be calculated by reference to our Revolving Credit Agreement.

Aggregated unamortized deferred debt issuance costs incurred in connection with all of our outstanding debt totaled $5.6 million at September 30, 2015 and are reported under the caption “Other assets” in the accompanying condensed consolidated balance sheets. The deferred costs are being amortized on a straight line basis over the life of the underlying instruments.

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries, including each of the IKB loans. All such obligations are recorded in these condensed consolidated financial statements.

As of September 30, 2015 and December 31, 2014, we had $5.3 million of letters of credit issued to us by certain financial institutions. The letters of credit, which reduce amounts available under our revolving credit facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

13. ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first nine months of 2015 and 2014:

In thousands	2015			2014
Balance at January 1,	$	4,114		$	5,032
Accretion		59			115
Payments		(2,384	)		(767	)
Downward revision		(1,000	)		—
Gain		(359	)		(128	)
Balance at September 30,	$	430		$	4,252

During the second quarter of 2015 we recorded a downward revision to our estimated cost of closing the lagoons. The revision was recorded as an adjustment to both the carrying value of the associated property, equipment and timberlands as well as the asset retirement obligation.

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2015		2014
Other current liabilities	$	430	$	2,855
Other long-term liabilities		—		1,259
Total	$	430	$	4,114

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GLATFELTER

9.30.15 Form 10-Q

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

The amounts reported on the condensed consolidated balance sheets for cash and cash equivalents and accounts receivable approximate fair value. The following table sets forth carrying value and fair value of long-term debt:

	September 30, 2015				December 31, 2014
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	83,464	$	83,464	$	90,555	$	90,555
Fixed-rate bonds		250,000		253,908		250,000		255,470
2.40% Term loan		10,803		10,729		12,155		12,626
2.05% Term loan		44,848		43,611		51,902		53,106
Total	$	389,115	$	391,712	$	404,612	$	411,757

As of September 30, 2015, and December 31, 2014, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 15.

15. FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.”

Derivatives Designated as Hedging Instruments—Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs expected to be incurred over a twelve month to eighteen month period of time. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases or certain production costs with exposure to changes in foreign currency exchange rates. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk is deferred as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets and is subsequently reclassified into costs of products sold in the period that inventory produced using the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly to earnings and reflected in the accompanying condensed consolidated statements of income as non-operating income (expense) under the caption “Other, net.”

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
Euro / British Pound		9,189		4,592
Sell/Buy - buy notional
Euro / Philippine Peso		661,453		523,313
British Pound / Philippine Peso		471,607		260,535
Euro / U.S. Dollar		47,751		32,527
U.S. Dollar / Canadian Dollar		19,205		10,036

These contracts have maturities of between twelve months and eighteen months from the date originally entered into.

Derivatives Not Designated as Hedging Instruments—Foreign Currency Hedges We also enter into forward foreign exchange contracts to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities. None of these contracts are designated as hedges for financial accounting purposes and, accordingly, changes in value of the foreign exchange forward contracts and in the offsetting underlying on-balance-sheet transactions are reflected in the accompanying condensed consolidated statements of income under the caption “Other, net.”

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GLATFELTER

9.30.15 Form 10-Q

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
U.S. Dollar / Euro		—		4,000
U.S. Dollar / British Pound		7,000		9,000
Euro / British Pound		—		2,000
British Pound / Euro		2,000		—
Sell/Buy - buy notional
Euro / U.S. Dollar		7,000		—
British Pound / Euro		15,500		3,000

These contracts have maturities of one month from the date originally entered into.

Fair Value Measurements The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	September 30 2015		December 31 2014		September 30 2015		December 31 2014
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	693	$	3,106	$	1,676	$	394
Not designated as hedging:
Forward foreign currency exchange contracts	$	91.0	$	70	$	0	$	161

The amounts set forth in the table above represent the net asset or liability giving effect to rights of offset with each counterparty. The effect of netting the amounts presented above did not have a material effect on our consolidated financial position.

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015		2014
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	1,972		$	(137	)	$	4,595	$	(1,227	)
Ineffective portion – other – net		(184	)		81			104		181
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	621		$	595		$	1,028	$	1,792

The impact of activity not designated as hedging was substantially offset by the remeasurement of the underlying on-balance sheet item.

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

The fair values of the foreign exchange forward contracts are considered to be Level 2. Foreign currency forward contracts are valued using foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Prepaid expenses and other current assets” and the value of contracts in a loss position is recorded under the caption “Other current liabilities.”

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2015			2014
Balance at January 1,	$	3,282		$	(1,296	)
Deferred gains on cash flow hedges		1,100			2,223
Reclassified to earnings		(4,595	)		1,227
Balance at September 30,	$	(213	)	$	2,154

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be realized in results of operations within the next twelve months and the amount ultimately recognized will vary depending on actual market rates.

Credit risk related to derivative activity arises in the event the counterparty fails to meet its obligations to us.

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9.30.15 Form 10-Q

This exposure is generally limited to the amounts, if any, by which the counterparty’s obligations exceed our obligation to them. Our policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings.

16. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River—Neenah, Wisconsin

Background. We have significant uncertainties associated with environmental claims arising out of the presence of polychlorinated biphenyls (“PCBs”) in sediments in the lower Fox River, on which our former Neenah facility was located, and in the Bay of Green Bay Wisconsin (collectively, the “Site”). Since the early 1990s, the United States, the State of Wisconsin and two Indian tribes (collectively, the “Governments”) have pursued a cleanup of a 39-mile stretch of river from Little Lake Butte des Morts into Green Bay and natural resource damages (“NRDs”).

The United States notified the following parties (“PRPs”) of their potential responsibility to implement response actions, to pay response costs, and to compensate for NRDs at this site: Appvion, Inc. (formerly known as Appleton Papers Inc.), CBC Coating, Inc. (formerly known as Riverside Paper Corporation), Georgia-Pacific Consumer Products, L.P. (“Georgia-Pacific”, formerly known as Fort James Operating Company), Menasha Corporation, NCR Corporation (“NCR”), U.S. Paper Mills Corp., and WTM I Company. As described below, many other parties have been joined in litigation. After giving effect to settlements reached with the Governments, the remaining PRPs exposed to continuing obligations to implement the remainder of the cleanup consist of us, Georgia-Pacific and NCR.

The Site has been subject to certain studies and the parties conducted certain demonstration projects and completed certain interim cleanups. The permanent cleanup, known as a “remedial action” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), consists of sediment dredging, installation of engineered caps, and placement of sand covers in various areas in the bed of the river.

The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

We and WTM I Company implemented the remedial action in OU1 under a consent decree with the Governments; Menasha Corporation made a financial contribution to that work. That project began in 2004 and the work is complete other than on-going monitoring and maintenance.

For OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions from 2007 through 2014 were funded primarily by NCR and its indemnitors, including Appvion, Inc. In late June 2015, we began placing sand covers and certain other covering and capping in OU4b as a response to the Government’s demands. We expect the cost of the remediation we will perform in 2015 to be approximately $10 million. Georgia Pacific and NCR are funding work in 2015 pursuant to a proposed consent decree. Work is scheduled to continue in OU2-5 through 2017; although work may be required into 2018 to complete the project, with monitoring and maintenance to follow.

Although we have not contributed significant funds towards remedial actions other than in OU1 until 2015, as more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $500 million for OU2-5 prior to the 2015 remediation season.

In previous years, the Governments indicated their expectation was to have work in OU2-5 completed at a rate estimated to cost at least $70 million annually in 2015 and 2016, and at lower rates thereafter. However, the Governments have revised their estimate per year and the cost for the 2015 dredging season was increased to be approximately $100 million.

As the result of a partial settlement, Georgia-Pacific has no obligation to pay for work upstream of a line near

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GLATFELTER

9.30.15 Form 10-Q

Georgia-Pacific’s Green Bay West Mill located in OU4. We believe substantially all in-water work upstream of this line had been completed as of the end of the 2014 dredging season.

Allocation Litigation. In January 2008, NCR and Appvion brought an action in the federal district court in Green Bay to allocate among all parties responsible for this Site all of the costs incurred by the Governments, all of the costs incurred by the parties, and all of the NRDs owed to the Natural Resource Trustees. We have previously referred to this case as the “Whiting Litigation.” After several summary judgment rulings and a trial, the trial court entered judgment in the Whiting Litigation, allocating to NCR 100% of the costs of (a) the OU2-5 cleanup, (b) NRDs, (c) past and future costs incurred by the Governments in OU2-5, and (d) past and future costs incurred by any of the other parties net of an appropriate equitable adjustment for insurance recoveries. As to Glatfelter, NCR was judged liable to us for $4.28 million and any future costs or damages we may incur. NCR was held not responsible for costs incurred in OU1.

All parties appealed the Whiting Litigation judgment to the United States Court of Appeals for the Seventh Circuit. On September 25, 2014, that court affirmed, holding that if knowledge and fault were the only equitable factors governing allocation of costs and NRDs at the Site, NCR would owe 100% of all costs and damages in OU2-5, but would not have a share of costs in OU1 — which is upstream of the outfall of the facilities for which NCR is responsible — solely as an “arranger for disposal” of PCB-containing waste paper by recycling it at our mill. However, the court of appeals vacated the judgment and remanded the case for the district court’s further consideration of whether any other equitable factors might cause the district court to alter its allocation.

We contend the district court should, after further consideration, reinstate the 100%, or some similar very high, allocation to NCR of all the costs, and should hold that we should bear no share or a very small share. However, NCR has taken a contrary position and has sought contributions from others for future work until all allocation issues are resolved.

In addition, we take the position that the “single site” theory on which the courts held us responsible for cleaning up parts of the Site far downstream of our former mill should, if applied to NCR, make it liable for costs incurred in OU1. The district court agreed with us in an order dated March 3, 2015. On March 31, 2015, NCR sought review of that order by the court of appeals which review was denied on May 1, 2015. However, on May 15, 2015, the district court issued an opinion in the Government Action, described below, containing a sentence suggesting that NCR would not be liable for

OU1. Also as described below, on October 19, 2015, the district court reconsidered its May 15 opinion and ruled against NCR generally, although with no specific reference to OU1.

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party, then Appvion may have a right to recover those costs under CERCLA. We and Appvion disagree over the proper treatment of amounts that Appvion incurred while a PRP that were also subject to a cost-sharing agreement with NCR; we contend Appvion may not recover costs it was contractually obligated to incur, that it has no other costs, and if it did, we would have a right to contribution of any recovery against NCR and others. However, Appvion takes a contrary position and claims in excess of $170 million.

The district court has established a schedule for the Whiting Litigation under which it would hold a trial in July 2016 on remaining issues.

Enforcement Litigation. In October 2010, the United States and the State of Wisconsin brought an action (“Government Action”) in the federal district court in Green Bay against us and 13 other defendants seeking (a) to recover all of their unreimbursed past costs, (b) to obtain a declaration of joint and several liability for all of their future costs, (c) to recover NRDs, and (d) to obtain a declaration of liability of all of the respondents on the UAO to perform the remedy in OU2-5 as required by the UAO and a mandatory permanent injunction to the same effect. The last of these claims was tried in 2012, and in May 2013, the district court enjoined us, NCR, WTM I, and Menasha Corp. to perform the work under the UAO. As the result of partial settlements, U.S. Paper Mills Corp. and Georgia-Pacific agreed to joint and several liability for some of the work. Appvion was held not liable for this Site under CERCLA.

All other potentially responsible parties, including the United States and the State of Wisconsin, have settled with the Governments. As a result, the remaining defendants consist of us, NCR, and Georgia-Pacific.

We appealed the injunction to the United States Court of Appeals for the Seventh Circuit, as did NCR, WTM I, and Menasha. On September 25, 2014, the court of appeals decided our and NCR’s appeals; the others’ appeals were not decided because they entered into a settlement. The court of appeals vacated the injunction as to us and NCR. However, it affirmed the district court’s ruling that we are liable for response actions in OU2-5 and for complying with the UAO. The court of appeals vacated and remanded the district court’s decision that

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9.30.15 Form 10-Q

NCR had failed to prove that liability for OU2-5 could be apportioned, directing the lower court to consider issues it had not considered initially.

On remand, the district court issued an opinion on May 15, 2015, (“May 15 Decision”) in which it held that the existing trial record allowed it to apportion NCR’s liability for OU4 at 28% of the total OU4 costs. The district court did not apportion liability for OU2 or OU3. The court’s opinion contains a sentence stating that NCR would not be liable for OU1 because the facilities formerly owned by NCR discharged downstream. We moved for reconsideration of the May 15 Decision, as did the United States, Georgia-Pacific, and certain other parties. On October 19, 2015, the district court reconsidered its May 15 Decision and held that NCR had not shown a reasonable basis for apportionment of its liability for the site.

We do not know the Governments’ intentions concerning further litigation of the Government Action, nor do we know the schedule for any further proceedings. We cannot now predict when it will be resolved.

Interim Funding of Ongoing Work. As described above, the court of appeals vacated the allocation judgment in the Whiting Litigation on September 25, 2014, but neither court has since replaced that allocation with any other. The 2007 UAO requires the PRPs to submit annual remediation work plans. For 2015, the EPA approved the 2015 Work Plan for $100 million of remediation activities. NCR, GP, and we were not able to reach agreement on a division of the costs of that work on an interim basis, subject to reallocation in the Whiting Litigation. NCR and GP have entered into a proposed consent decree with the United States under which they will fund certain work estimated to cost approximately $67 million in 2015, and they will not be responsible for completing the remainder of the work in 2015, estimated to cost approximately $33 million. The United States has not moved to enter that consent decree. Through the issuance of the 2015 Work Plan the EPA assigned to us those remaining tasks. Under the proposed consent decree, all parties would remain jointly and severally liable for work in the 2015 Work Plan not completed in 2015, except for a small amount of work upstream of the area for which GP is responsible. We contracted for remediation work in OU4, estimated to total approximately $10 million, an amount less than the amount assigned to us in the 2015 Work Plan.

We anticipate that $10 million of work in 2015 would satisfy our share of the obligation if NCR and GP perform the work assigned to them in the 2015 Work Plan. The United States disagrees. We cannot predict the outcome of these disagreements or any possible resulting litigation.

With respect to the 2015 Work Plan, we disagree with the United States over i) whether the work purportedly assigned to

us could be completed in the specified timeframe; ii) whether the EPA has the legal authority to assign remedial tasks as it purports to have done under the terms of the UAO; iii) whether we have available to us avenues for relief from the purported obligation to perform the assigned work in 2015; iv) whether we have any other responses of which we may avail our self; v) whether an arbitrary per capita allocation of one-third can be imposed on us in light of the multiple rulings by the courts since 2009 that appear inconsistent with a per capita allocation; and vi) whether the 2015 Work Plan affects the Company’s ultimate liability for this Site.

In September 2015, the U.S. Department of Justice notified us that we, along with Georgia - Pacific, should be prepared to participate in the remediation activities during 2016. In addition, we understand NCR has submitted a draft 2016 Work Plan. Although we do not have an estimate of the costs of completing the work NCR proposes be completed in 2016, we expect the cost could approximate $100 million. The draft does not assign work to particular parties.

Because we may not be able to obtain an agreement with the other parties or a ruling in litigation defining our obligation to contribute to work in 2016 prior to the time that work would have to be implemented, it is conceivable that we may have to choose an amount of work that we believe satisfies any obligation we may have to complete work in 2016, which selection we will have to defend after the fact. It is also conceivable we may be in the same position with respect to work in OU2-5 beyond the 2016 season. Although we are unable to determine with any degree of certainty the amount we may be required to complete or fund, those amounts could be significant. Any amounts we pay or any other party pays in the interim may be subject to reallocation when the Whiting Litigation is resolved.

NRDs. The Governments’ NRD assessment documents originally claimed we are jointly and severally responsible for NRDs with a value between $176 million and $333 million. The Governments claimed this range should be inflated to current dollars and then certain unreimbursed past assessment costs should be added, so the range of their claim was $287 million to $423 million in 2009.

However, on October 14, 2014, the Governments represented to the district court that if certain settlements providing $45.9 million toward compensation of NRDs were approved, the total NRD recovery would amount to $105 million. The Governments stated they would consider those recoveries adequate and they would withdraw their claims against us and NCR for additional compensation of NRDs. On October 19, 2015, the district court granted the Governments leave to withdraw their

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GLATFELTER

9.30.15 Form 10-Q

NRD claims against us without prejudice to re-filing them at some later time. Some of the settling parties, including all of the settling parties contributing the $45.9 million, have waived their rights to seek contribution from us of the settlement amounts. We previously paid a portion of the earlier settlements that the Governments value at $59 million and that we contend may be somewhat more.

Reserves for the Site. Our reserve including ongoing monitoring obligations in OU1, our share of remediation of the downstream portions of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination is set forth below:

In thousands	2015			2014
Balance at January 1,	$	16,223		$	16,276
Payments		(5,617	)		(39	)
Accruals		10,000			—
Balance at September 30,	$	20,606		$	16,237

The payments set forth above represent cash paid towards completion of remediation activities in connection with the 2015 Work Plan, of which approximately $4.5 million will be paid during the fourth quarter of 2015. In addition, in the third quarter of 2015 we increased our reserve by $10.0 million to reflect our estimate of costs to be incurred related to the 2016 Work Plan. The charge is recorded in the accompanying condensed consolidated financial statements under the caption “Selling, general and administrative expenses.” If we are unsuccessful in the allocation litigation or in the enforcement litigation described above, we may be required to record additional charges and such charges could be significant.

Of our total reserve for the Fox River, $16.0 million is recorded in the accompanying September 30, 2015 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.”

As described above, the appellate court vacated and remanded for reconsideration the district court’s ruling in the Whiting Litigation that NCR would bear 100% of costs for the downstream portion of the Site. We continue to believe we will not be allocated a significant share of liability in any final equitable allocation of the response costs for OU2-5 or for NRDs. The accompanying condensed consolidated financial

statements do not include reserves for any future defense costs, which could be significant, related to our involvement at the Site.

In setting our reserve for the Site, we have assessed our legal defenses, including our successful defenses to the allegations made in the Whiting Litigation and the original determination in the Whiting Litigation that NCR owes us “full contribution” for response costs and for NRDs that we may become obligated to pay except in OU1. We assume we will not bear the entire cost of remediation or damages to the exclusion of other known parties at the Site, who are also jointly and severally liable. The existence and ability of other parties to participate has also been taken into account in setting our reserve, and setting our reserve is generally based on our evaluation of recent publicly available financial information on certain of the responsible parties and any known insurance, indemnity or cost sharing agreements between responsible parties and third parties. In addition, we have considered the magnitude, nature, location and circumstances associated with the various discharges of PCBs to the river and the relationship of those discharges to identified contamination. We will continue to evaluate our exposure and the level of our reserves associated with the Site.

Other Information. The Governments have published studies estimating the amount of PCBs discharged by each identified potentially responsible party to the lower Fox River and Green Bay. These reports estimate our Neenah mill’s share of the mass of PCBs discharged to be as high as 27%. The district court has found the discharge mass estimates used in these studies not to be accurate. We believe the Neenah mill’s absolute and relative contribution of PCB mass is significantly lower than the estimates set forth in these studies. The district court in the Government Action has found that the Neenah mill discharged an unknown amount of PCBs.

Based upon the rulings in the Whiting Litigation and the Government Action, neither of which endorsed an equitable allocation in proportion to the mass of PCBs discharged, we continue to believe an allocation in proportion to mass of PCBs discharged would not constitute an equitable allocation of the potential liability for the contamination at the Fox River. We contend other factors, such as a party’s role in causing costs, the location of discharge, and the location of contamination must be considered in order for the allocation to be equitable.

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GLATFELTER

9.30.15 Form 10-Q

Range of Reasonably Possible Outcomes. Based on our analysis of all available information, including but not limited to decisions of the courts, official documents such as records of decision, as well as discussions with legal counsel and cost estimates for work to be performed at the Site, and substantially dependent on the resolution of the allocation issues discussed above, we believe it is reasonably possible that our costs associated with the Fox River matter could exceed the aggregate amounts accrued for the Fox River matter by amounts ranging from insignificant to $175 million. We believe the likelihood of an outcome in the upper end of the monetary range is less than other possible outcomes within the range and the possibility of an outcome in excess of the upper end of the monetary range is remote.

We expect remediation costs to be incurred primarily over the next two to three years, although we are unable to determine with any degree of certainty the amount we may be required to fund for interim remediation work. To the extent we provide such interim funding, we contend that NCR or another party would be required to reimburse us once the final allocation is determined.

Summary. Our current assessment is we will be able to manage this environmental matter without a long-term, material adverse impact on the Company. This matter could, however, at any particular time or for any particular year or years, have a material adverse effect on our consolidated financial position, liquidity and/or results of operations or could result in a default under our debt covenants. Moreover, there can be no assurance our reserves will be adequate to provide for future obligations related to this matter, or our share of costs and/or damages will not exceed our available resources, or those obligations will not have a long-term, material adverse effect on our consolidated financial position, liquidity or results of operations. Should a court grant the United States or the State of Wisconsin relief requiring us individually either to perform directly or to contribute significant amounts towards remedial action downstream of Little Lake Butte des Morts those developments could have a material adverse effect on our consolidated financial position, liquidity and results of operations and might result in a default under our loan covenants.

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GLATFELTER

9.30.15 Form 10-Q

17. SEGMENT INFORMATION

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	133.9	$	154.5	$	63.2	$	74.4	$	222.8	$	236.2	$	—		$	—		$	420.0		$	465.1
Energy and related sales, net		—		—		—		—		1.2		0.9		—			—			1.2			0.9
Total revenue		133.9		154.5		63.2		74.4		224.0		237.1		—			—			421.1			466.0
Cost of products sold		108.4		123.7		54.6		64.7		196.1		195.2		2.1			1.8			361.2			385.4
Gross profit (loss)		25.5		30.8		8.6		9.7		27.9		41.9		(2.1	)		(1.8	)		59.9			80.5
SG&A		11.5		12.6		1.8		2.2		10.4		14.1		16.2			9.0			39.8			37.9
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(0.1	)		(1.6	)		(0.1	)		(1.6	)
Total operating income (loss)		14.0		18.1		6.8		7.5		17.5		27.8		(18.2	)		(9.2	)		20.2			44.2
Non-operating expense		—		—		—		—		—		—		(4.4	)		(4.8	)		(4.4	)		(4.8	)
Income (loss) before income taxes	$	14.0	$	18.1	$	6.8	$	7.5	$	17.5	$	27.8	$	(22.6	)	$	(14.0	)	$	15.8		$	39.4
Supplementary Data
Net tons sold (thousands)		38.9		40.1		24.8		26.3		203.6		208.4		—			—			267.2			274.7
Depreciation, depletion and amortization	$	6.7	$	7.4	$	2.2	$	2.3	$	6.4	$	6.5	$	0.5		$	0.5		$	15.8		$	16.7
Capital expenditures		5.8		5.4		1.8		1.3		22.1		9.7		—			0.5			29.7			16.9
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	409.6	$	470.1	$	183.0	$	216.2	$	655.6	$	679.9	$	—		$	—		$	1,248.2		$	1,366.2
Energy and related sales, net		—		—		—		—		3.9		6.9		—			—			3.9			6.9
Total revenue		409.6		470.1		183.0		216.2		659.5		686.8		—			—			1,252.2			1,373.1
Cost of products sold		329.8		376.7		162.0		189.9		608.4		624.3		7.1			5.2			1,107.3			1,196.1
Gross profit (loss)		79.8		93.4		21.0		26.3		51.1		62.5		(7.1	)		(5.2	)		144.8			177.0
SG&A		34.4		38.8		5.8		6.8		34.2		39.5		25.7			18.7			100.2			103.8
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(2.9	)		(3.9	)		(2.9	)		(3.9	)
Total operating income (loss)		45.4		54.6		15.2		19.5		16.9		23.0		(29.9	)		(20.0	)		47.5			77.1
Non-operating expense		—		—		—		—		—		—		(13.1	)		(14.0	)		(13.1	)		(14.0	)
Income (loss) before income taxes	$	45.4	$	54.6	$	15.2	$	19.5	$	16.9	$	23.0	$	(43.0	)	$	(34.0	)	$	34.4		$	63.1
Supplementary Data
Net tons sold (thousands)		116.2		119.5		71.4		76.0		593.6		601.3		—			—			781.2			796.8
Depreciation, depletion and amortization	$	20.1	$	22.7	$	6.5	$	6.9	$	19.3	$	22.6	$	1.5		$	1.3		$	47.4		$	53.5
Capital expenditures		17.3		16.7		4.6		4.1		51.0		24.5		1.4			1.7			74.3			47.0

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

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GLATFELTER

9.30.15 Form 10-Q

18. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Our 5.375% Notes issued by P. H. Glatfelter Company (the “Parent”) are fully and unconditionally guaranteed, on a joint and several basis, by certain of our 100%-owned domestic subsidiaries, PHG Tea Leaves, Inc., Mollanvick, Inc., Glatfelter Composite Fibers N. A., Inc. (“CFNA”), Glatfelter Advanced Materials N.A., Inc. (“GAMNA”), and Glatfelter Holdings, LLC. The guarantees are subject to certain customary release provisions including i) the designation of such subsidiary as an unrestricted or excluded subsidiary; (ii) in connection with any sale or disposition of the capital stock of the subsidiary guarantor; and (iii) upon our exercise of our legal defeasance option or our covenant defeasance option, all of which are more fully described in the Indenture dated as of October 3, 2012 and the First Supplemental Indenture dated as of October 27, 2015, among us, the Guarantors and US Bank National Association, as Trustee, relating to the 5.375% Notes.

The following presents the condensed consolidating statements of income, including comprehensive income for the three months and nine months ended September 30, 2015 and 2014, the condensed consolidating balance sheets as of September 30, 2015 and December 31, 2014 and the condensed consolidating cash flows for the nine months ended September 30, 2015 and 2014. These financial statements reflect the Parent, the guarantor subsidiaries (on a combined basis), the non-guarantor subsidiaries (on a combined basis) and elimination entries necessary to combine such entities on a consolidated basis. The condensed consolidating financial statements set forth below include the addition of CFNA and GAMNA as guarantors effective September 30, 2015 and all prior periods have been restated to retroactively effect this change. In addition, our presentation of the Guarantors’ statement of income for the three months and nine months ended September 30, 2014 has been restated to correctly apply the equity method of accounting to reflect the Guarantors’ equity interests in certain Non Guarantors. Such changes are reflected under the caption “Equity in earnings of subsidiaries” in the accompanying condensed consolidating statements of income. The correction had no impact on any financial information of the Parent Company, the Non Guarantors or on the condensed consolidating balance sheet or the statement of cash flows.

Condensed Consolidating Statement of Income for the

three months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	222,803		$	19,005		$	197,589		$	(19,437	)	$	419,960
Energy and related sales, net		1,153			—			—			—			1,153
Total revenues		223,956			19,005			197,589			(19,437	)		421,113
Costs of products sold		197,906			17,299			165,437			(19,437	)		361,205
Gross profit		26,050			1,706			32,152			—			59,908
Selling, general and administrative expenses		24,764			(8	)		15,036			—			39,792
Gains on dispositions of plant, equipment and timberlands, net		(4	)		—			(119	)		—			(123	)
Operating income		1,290			1,714			17,235			—			20,239
Other non-operating income (expense)
Interest expense		(4,346	)		—			(23,201	)		23,230			(4,317	)
Interest income		181			23,129			11			(23,231	)		90
Equity in earnings of subsidiaries		14,173			(9,366	)		—			(4,808	)		—
Other, net		(961	)		23			718			—			(220	)
Total other non-operating income (expense)		9,047			13,786			(22,472	)		(4,809	)		(4,447	)
Income (loss) before income taxes		10,337			15,500			(5,237	)		(4,809	)		15,792
Income tax provision (benefit)		(3,167	)		1,270			4,185			—			2,288
Net income (loss)		13,504			14,230			(9,422	)		(4,809	)		13,504
Other comprehensive income (loss)		(3,002	)		(5,954	)		(7,752	)		13,706			(3,002	)
Comprehensive income (loss)	$	10,502		$	8,276		$	(17,174	)	$	8,897		$	10,502

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GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Statement of Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	17,735		$	228,699		$	(17,524	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			17,735			228,699			(17,524	)		465,952
Costs of products sold		197,182			17,019			188,762			(17,524	)		385,439
Gross profit		39,860			716			39,937			—			80,513
Selling, general and administrative expenses		19,352			589			17,946			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income		22,098			127			21,991			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Equity in earnings of subsidiaries		14,935			(74,502	)		—			59,566			—
Other, net		(383	)		9			202			5			(167	)
Total other non-operating income (expense)		9,914			15,458			(89,751	)		59,570			(4,808	)
Income (loss) before income taxes		32,012			15,585			(67,760	)		59,570			39,409
Income tax provision (benefit)		1,640			1,091			6,306			—			9,037
Net income (loss)		30,372			14,494			(74,066	)		59,570			30,372
Other comprehensive income (loss)		(29,577	)		(25,843	)		16,924			8,919			(29,577	)
Comprehensive income (loss)	$	795		$	(11,349	)	$	(57,142	)	$	68,489		$	795

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GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	655,599		$	61,822		$	590,466		$	(59,655	)	$	1,248,232
Energy and related sales, net		3,936			—			—			—			3,936
Total revenues		659,535			61,822			590,466			(59,655	)		1,252,168
Costs of products sold		614,060			58,554			494,360			(59,655	)		1,107,319
Gross profit		45,475			3,268			96,106			—			144,849
Selling, general and administrative expenses		57,607			947			41,647			—			100,201
Gains on dispositions of plant, equipment and timberlands, net		(1,526	)		(1,183	)		(179	)		—			(2,888	)
Operating income (loss)		(10,606	)		3,504			54,638			—			47,536
Other non-operating income (expense)
Interest expense		(13,771	)		—			(35,965	)		36,559			(13,177	)
Interest income		513			36,226			52			(36,559	)		232
Equity in earnings of subsidiaries		48,775			11,879			—			(60,654	)		—
Other, net		(2,423	)		(136	)		2,367			—			(192	)
Total other non-operating income (expense)		33,094			47,969			(33,546	)		(60,654	)		(13,137	)
Income before income taxes		22,488			51,473			21,092			(60,654	)		34,399
Income tax provision (benefit)		(7,789	)		2,586			9,325			—			4,122
Net income		30,277			48,887			11,767			(60,654	)		30,277
Other comprehensive income (loss)		(21,200	)		(30,607	)		21,156			9,451			(21,200	)
Comprehensive income	$	9,077		$	18,280		$	32,923		$	(51,203	)	$	9,077

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GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	56,138		$	685,350		$	(55,211	)	$	1,366,154
Energy and related sales, net		6,912			—			—			—			6,912
Total revenues		686,789			56,138			685,350			(55,211	)		1,373,066
Costs of products sold		629,984			53,491			567,812			(55,211	)		1,196,076
Gross profit		56,805			2,647			117,538			—			176,990
Selling, general and administrative expenses		53,699			1,431			48,622			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		5,671			2,532			68,916			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Equity in earnings of subsidiaries		56,784			(38,229	)		—			(18,555	)		—
Other, net		(1,603	)		30			1,673			5			105
Total other non-operating income (expense)		41,365			56,966			(93,777	)		(18,551	)		(13,997	)
Income (loss) before income taxes		47,036			59,498			(24,861	)		(18,551	)		63,123
Income tax provision (benefit)		(2,653	)		2,719			13,368			—			13,434
Net income (loss)		49,689			56,779			(38,229	)		(18,551	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	30,387		$	(19,322	)	$	(11,066	)	$	26,103

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GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Balance Sheet as of

September 30, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	28,626	$	297		$	44,742	$	—		$	73,665
Other current assets		232,486		260,054			261,431		(268,192	)		485,779
Plant, equipment and timberlands, net		283,712		1,005			412,607		—			697,324
Investments in subsidiaries		734,303		504,783			—		(1,239,086	)		—
Other assets		132,732		—			148,732		(485	)		280,979
Total assets	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747
Liabilities and Shareholders’ Equity
Current liabilities	$	368,220	$	31,720		$	163,984	$	(271,574	)	$	292,350
Long-term debt		250,000		—			131,535		—			381,535
Deferred income taxes		48,226		(505	)		50,110		3,376			101,207
Other long-term liabilities		99,297		33			17,209		—			116,539
Total liabilities		765,743		31,248			362,838		(268,198	)		891,631
Shareholders’ equity		646,116		734,891			504,674		(1,239,565	)		646,116
Total liabilities and shareholders’ equity	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747

Condensed Consolidating Balance Sheet as of

December 31, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	42,208	$	509		$	57,120		$	—		$	99,837
Other current assets		216,940		439,910			254,911			(436,976	)		474,785
Plant, equipment and timberlands, net		255,255		996			441,357			—			697,608
Investments in subsidiaries		826,084		401,540			—			(1,227,624	)		—
Other assets		121,125		—			186,128			(17,979	)		289,274
Total assets	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504
Liabilities and Shareholders’ Equity
Current liabilities		403,662		13,143			307,184			(444,258	)		279,731
Long-term debt		250,000		—			721,457			(572,579	)		398,878
Deferred income taxes		46,483		(506	)		70,328			(12,289	)		104,016
Other long-term liabilities		112,358		24			11,608			5,780			129,770
Total liabilities		812,503		12,661			1,110,577			(1,023,346	)		912,395
Shareholders’ equity		649,109		830,294			(171,061	)		(659,233	)		649,109
Total liabilities and shareholders’ equity	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504

- 26 -

GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	9,927		$	152		$	60,444		$	—		$	70,523
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(52,331	)		(42	)		(21,907	)		—			(74,280	)
Proceeds from disposal plant, equipment and timberlands, net		1,584			1,213			384			—			3,181
Repayments from intercompany loans		1,465			53,855			—			(55,320	)		—
Advances of intercompany loans		—			(44,590	)		—			44,590			—
Intercompany capital (contributed) returned		10,500			(300	)		—			(10,200	)		—
Acquisitions, net of cash acquired		—			—			(224	)		—			(224	)
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(40,382	)		10,136			(21,747	)		(20,930	)		(72,923	)
Financing activities
Net repayments of indebtedness		—			—			(3,387	)		—			(3,387	)
Payments of borrowing costs		(1,329	)		—			—			—			(1,329	)
Payment of dividends to shareholders		(15,215	)		—			—			—			(15,215	)
Repayments of intercompany loans		(9,158	)		—			(46,162	)		55,320			—
Borrowings of intercompany loans		44,590			—			—			(44,590	)		—
Intercompany capital received (returned)		—			(10,500	)		300			10,200			—
Payments related to share-based compensation awards and other		(2,015	)		—			—			—			(2,015	)
Total financing activities		16,873			(10,500	)		(49,249	)		20,930			(21,946	)
Effect of exchange rate on cash		—			—			(1,826	)		—			(1,826	)
Net decrease in cash		(13,582	)		(212	)		(12,378	)		—			(26,172	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	28,626		$	297		$	44,742		$	—		$	73,665

- 27 -

GLATFELTER

9.30.15 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,371		$	17,297		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net proceeds from indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Payments related to share-based compensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(405	)		(32,914	)		—			(69,227	)
Cash at the beginning of period		56,216			495			66,171			—			122,882
Cash at the end of period	$	20,308		$	90		$	33,257		$	—		$	53,655

- 28 -

GLATFELTER

9.30.15 Form 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the information in the unaudited condensed consolidated financial statements and notes thereto included herein and Glatfelter’s Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2014 Annual Report on Form 10-K.

Forward-Looking Statements This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects and future consolidated financial position or results of operations, made in this Report on Form 10-Q are forward looking. We use words such as “anticipates”, “believes”, “expects”, “future”, “intends” and similar expressions to identify forward-looking statements. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from such expectations. The following discussion includes forward-looking statements regarding expectations of, among others, shipping volumes, selling prices, input costs, non-cash pension expense, environmental costs, capital expenditures and liquidity, all of which are inherently difficult to predict. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. Accordingly, we identify the following important factors, among others, which could cause our results to differ from any results that might be projected, forecasted or estimated in any such forward-looking statements:

i. variations in demand for our products including the impact of unplanned market-related downtime, variations in product pricing, or product substitution;

ii. changes in the cost or availability of raw materials we use, in particular pulpwood, pulp, pulp substitutes, caustic soda, and abaca fiber;

iii. changes in energy-related costs and commodity raw materials with an energy component;

iv. our ability to develop new, high value-added products;

v. the impact of exposure to volatile market-based pricing for sales of excess electricity;

vi. the impact of competition, both domestic and international, changes in industry production capacity, including the construction of new mills or new machines, the closing of mills and incremental changes due to capital expenditures or productivity increases;

vii. the gain or loss of significant customers and/or on-going viability of such customers;

viii. the impact of unplanned production interruption;

ix. cost and other effects of environmental compliance, cleanup, damages, remediation or restoration, or personal injury or property damages related thereto, such as the costs of natural resource restoration or damages related to the presence of polychlorinated biphenyls (“PCBs”) in the lower Fox River on which our former Neenah mill was located;

x. adverse results in litigation of the Fox River matter;

xi. risks associated with our international operations, including local economic and political environments and fluctuations in currency exchange rates;

xii. geopolitical events, including the impact of conflicts such as Russia and Ukraine;

xiii. the impact of war and terrorism;

xiv. disruptions in production and/or increased costs due to labor disputes;

xv. the impact of unfavorable outcomes of audits by various state, federal or international tax authorities;

xvi. enactment of adverse state, federal or foreign tax or other legislation or changes in government policy or regulation; and

xvii. our ability to finance, consummate and integrate acquisitions.

We manufacture a wide array of specialty papers and fiber-based engineered materials. We manage our company along three business units:

• Composite Fibers with revenue from the sale of single-serve coffee and tea filtration papers, non-woven wallcover, papers for battery and capacitor applications, metallized papers, composite laminates, and other technical specialty papers;

• Advanced Airlaid Materials with revenue from the sale of airlaid non-woven fabric like materials used in feminine hygiene products, adult incontinence products, cleaning pads, food pads, napkins, tablecloths, and baby wipes; and

• Specialty Papers with revenue from the sale of carbonless papers, non-carbonless forms, book publishing, envelope & converting papers, and fiber-based engineered products.

- 29 -

GLATFELTER

9.30.15 Form 10-Q

RESULTS OF OPERATIONS

Nine months ended September 30, 2015 versus the nine months ended September 30, 2014

Overview For the first nine months of 2015, net income was $30.3 million, or $0.69 per diluted share, compared with $49.7 million, or $1.13 per diluted share, in the first nine months of 2014. On an adjusted earnings basis, a non-GAAP measure that excludes non-core business items discussed below, earnings per share were $0.82 compared with $1.11 in 2014. The year-over-year comparison of results of operations reflects the adverse impact of i) the stronger U.S. dollar on our euro-denominated businesses; ii) weaker demand and pricing for nonwoven wallcover products primarily due to economic conditions in Russia and Ukraine; iii) pricing pressures in our Specialty Papers business; and iv) weaker demand for certain Advanced Airlaid Materials’ products. The following table sets forth summarized results of operations:

	Nine months ended September 30
In thousands, except per share	2015		2014
Net sales	$	1,248,232	$	1,366,154
Gross profit		144,849		176,990
Operating income		47,536		77,120
Net income		30,277		49,689
Earnings per diluted share		0.69		1.13

In addition to the results reported in accordance with GAAP, we evaluate our performance using adjusted net income and adjusted earnings per diluted share. We disclose this information to allow investors to evaluate our performance exclusive of certain items that impact the comparability of results from period to period and we believe it is helpful in understanding underlying operating trends and cash flow generation. Adjusted net income consists of net income determined in accordance with GAAP adjusted to exclude the impact of the following:

Timberland sales and related costs. These adjustments exclude gains from the sales of timberlands as these items are not considered to be part of our core business, ongoing results of operations or cash flows. These adjustments are irregular in timing and amount and may significantly impact our operating performance. As such, these items may not be indicative of past or future performance of the Company and therefore are excluded for comparability purposes.

Workforce efficiency charges. These adjustments include costs that are directly related to actions undertaken to reduce costs and improve operating efficiencies. Such costs were specifically incurred as part of our initiative to reduce global headcount as part of a more broad based cost reduction effort initiated in the fourth quarter of 2014.

Acquisition and integration related costs. These adjustments include costs directly related to the consummation of the acquisition process and those related to integrating recently acquired businesses. These costs are irregular in timing and as such may not be indicative of our past or future performance.

Fox River environmental matter. This adjustment reflects a charge incurred to increase our reserve for estimated costs to remediate environmental contamination at the Fox River site. These costs are irregular in timing and as such may not be indicative of our past or future performance.

Asset impairment charges. This adjustment represents a non-cash charge required to adjust to its estimated fair value the carrying value of a trade name intangible asset. Charges of this nature are irregular in timing and as such may not be indicative of our past and future performance.

Alternative fuel mixture/Cellulosic biofuel credits. These adjustments reflect the release of reserves for uncertain tax position due to the lapse of statutes of limitation.

Adjusted earnings per diluted share is calculated by dividing adjusted net income by diluted weighted-average shares outstanding. Adjusted earnings and adjusted earnings per diluted share are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. These non-GAAP measures may differ from other companies. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP. The following table sets forth the reconciliation of net income to adjusted earnings for the nine months ended September 30, 2015 and 2014:

In thousands, except per share	After-tax amounts			Diluted EPS
2015
Net income	$	30,277		$	0.69
Timberland sales and related costs		(3,078	)		(0.07	)
Fox River environmental matter		6,222			0.14
Workforce efficiency charges		1,621			0.04
Asset impairment charge		857			0.02
Acquisition and integration related costs		126			—
Adjusted earnings (non-GAAP)	$	36,025		$	0.82
2014
Net income	$	49,689		$	1.13
Timberland sales and related costs		(2,381	)		(0.05	)
Asset impairment charge		2,356			0.05
Acquisition and integration related costs		115			—
Alternative fuel mixture/Cellulosic biofuel credits		(1,032	)		(0.02	)
Adjusted earnings (non-GAAP)	$	48,747		$	1.11

- 30 -

GLATFELTER

9.30.15 Form 10-Q

Business Unit Performance

Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	409.6	$	470.1	$	183.0	$	216.2	$	655.6	$	679.9	$	—		$	—		$	1,248.2		$	1,366.2
Energy and related sales, net		—		—		—		—		3.9		6.9		—			—			3.9			6.9
Total revenue		409.6		470.1		183.0		216.2		659.5		686.8		—			—			1,252.2			1,373.1
Cost of products sold		329.8		376.7		162.0		189.9		608.4		624.3		7.1			5.2			1,107.3			1,196.1
Gross profit (loss)		79.8		93.4		21.0		26.3		51.1		62.5		(7.1	)		(5.2	)		144.8			177.0
SG&A		34.4		38.8		5.8		6.8		34.2		39.5		25.7			18.7			100.2			103.8
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(2.9	)		(3.9	)		(2.9	)		(3.9	)
Total operating income (loss)		45.4		54.6		15.2		19.5		16.9		23.0		(29.9	)		(20.0	)		47.5			77.1
Non-operating expense		—		—		—		—		—		—		(13.1	)		(14.0	)		(13.1	)		(14.0	)
Income (loss) before income taxes	$	45.4	$	54.6	$	15.2	$	19.5	$	16.9	$	23.0	$	(43.0	)	$	(34.0	)	$	34.4		$	63.1
Supplementary Data
Net tons sold (thousands)		116.2		119.5		71.4		76.0		593.6		601.3		—			—			781.2			796.8
Depreciation, depletion and amortization	$	20.1	$	22.7	$	6.5	$	6.9	$	19.3	$	22.6	$	1.5		$	1.3		$	47.4		$	53.5
Capital expenditures		17.3		16.7		4.6		4.1		51.0		24.5		1.4			1.7			74.3			47.0

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

Business Units Results of individual business units 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 business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. 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 business unit are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the Business Unit Performance table.

Management evaluates results of operations of the business units 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 business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” 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.

- 31 -

GLATFELTER

9.30.15 Form 10-Q

Sales and Costs of Products Sold

	Nine months ended September 30
In thousands	2015			2014			Change
Net sales	$	1,248,232		$	1,366,154		$	(117,922	)
Energy and related sales, net		3,936			6,912			(2,976	)
Total revenues		1,252,168			1,373,066			(120,898	)
Costs of products sold		1,107,319			1,196,076			(88,757	)
Gross profit	$	144,849		$	176,990		$	(32,141	)
Gross profit as a percent of Net sales		11.6	%		13.0	%

The following table sets forth the contribution to consolidated net sales by each business unit:

	Nine months ended September 30
Percent of Total	2015			2014
Business Unit
Composite Fibers		32.8	%		34.4	%
Advanced Airlaid Material		14.7			15.8
Specialty Papers		52.5			49.8
Total		100.0	%		100.0	%

Net sales totaled $1,248.2 million in the first nine months of 2015 compared with $1,366.2 million in the first nine months of 2014. Currency translation adjustments unfavorably impacted the year-over-year comparison by $82.7 million reflecting a significantly stronger U.S. dollar.

Composite Fibers’ net sales declined $60.5 million, or 12.9%, due to $62.1 million of unfavorable currency translation together with lower shipping volumes and $7.8 million from lower selling prices, partially offset by the inclusion of Spezialpapierfabrik (SPO), which was acquired in the fourth quarter of 2014. Shipping volumes declined 2.8% primarily due to a 21.4% decline in shipments of nonwoven wallcover, partially offset by higher shipments of technical specialties and food and beverage segments. The weakness in sales to the wallcover segment is directly related to economic conditions in Russia and Ukraine, a region that accounts for roughly 50% of sales of this business unit’s wallcover products.

Composite Fibers’ operating income for the first nine months of 2015 decreased $9.2 million to $45.4 million. The decline in operating income was primarily related to lower selling prices and shipping volumes and $6.6 million of unfavorable currency translation. These factors were partially offset by a $4.7 million benefit from lower raw material and energy prices and $2.5 million from improved operations.

On a year-over-year basis, Advanced Airlaid Materials’ net sales decreased $33.2 million largely due to $20.6 million of unfavorable foreign currency translation and a 6.1% decline in shipping volumes. These factors were partially offset by $1.5 million of higher selling prices.

Advanced Airlaid Materials’ operating income for the first nine months of 2015 declined $4.3 million compared to the same period a year-ago as the combined impact of softer market demand and related production downtime and $1.5 million from the adverse impact of foreign currency translation more than offset the benefit of higher selling prices.

On a year-over-year basis, Specialty Papers’ net sales declined $24.3 million, or 3.6% due to lower shipping volumes and $6.4 million from lower selling.

This business unit’s operating income totaled $16.9 million for the first nine months of 2015 compared to $23.0 million a year ago. The decline in operating income was due to lower selling prices and shipping volumes together with $4.3 million of operating cost penalties primarily related to the expanded scope of the annual maintenance outages. These unfavorable factors were partially offset by a $9.3 million benefit from lower raw material and energy costs.

Energy and related sales decreased $3.0 million in the comparison as severe weather conditions in 2014 resulted in higher selling prices for excess power and a boiler outage in the first quarter of 2015 reduced power sales.

We sell excess power generated by the Spring Grove, PA facility. The following table summarizes this activity for the first nine months of 2015 and 2014:

	Nine months ended September 30
In thousands	2015			2014			Change
Energy sales	$	4,375		$	10,714		$	(6,339	)
Costs to produce		(3,387	)		(5,288	)		1,901
Net		988			5,426			(4,438	)
Renewable energy credits		2,948			1,486			1,462
Total	$	3,936		$	6,912		$	(2,976	)

Renewable energy credits (“RECs”) represent sales of certified credits earned related to burning renewable sources of energy such as black liquor and wood waste. We sell RECs into an illiquid market. The extent and value of future revenues from REC sales is dependent on many factors outside of management’s control. Therefore, we may not be able to generate consistent additional sales of RECs in future periods.

- 32 -

GLATFELTER

9.30.15 Form 10-Q

Other and Unallocated The amount of net operating expenses not allocated to a business unit and reported as “Other and Unallocated” in our table of Business Unit Performance, totaled $29.9 million in the first nine months of 2015 compared with $20.0 million in the first nine months of 2014. Excluding the gains from sales of timberlands in the comparison, unallocated net operating expenses increased $8.9 million primarily due to the $10.0 million Fox River environmental matter charge and severance costs related to our workforce efficiency initiative partially offset by lower corporate spending.

Pension Expense The following table summarizes the amounts of pension expense recognized for the periods indicated:

	Nine months ended September 30
In thousands	2015		2014		Change
Recorded as:
Costs of products sold	$	5,247	$	4,957	$	290
SG&A expense		1,370		55		1,315
Total	$	6,617	$	5,012	$	1,605

The amount of pension expense recognized each year is dependent on various actuarial assumptions and certain other factors, including discount rates and the fair value of our pension assets. Pension expense for the full year of 2015 is expected to be approximately $9.1 million compared with $6.7 million in 2014. The increase reflects the higher amortization of deferred actuarial losses related to lower discount rates and mortality assumptions.

Income taxes For the first nine months of 2015, we recorded a provision for income taxes of $4.1 million on pretax income of $34.4 million. The comparable amounts in the first nine months of 2014 were income tax expense of $13.4 million on $63.1 million of pretax income. The amount of taxes recorded in 2014 included a $1.0 million benefit from the release of tax reserves related to alternative fuel mixture credits earned in 2009, due to the lapse of the applicable statutes of limitation.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany and France it is the Euro, in the UK, it is the British Pound Sterling, and in the Philippines the functional currency is the Peso. On an annual basis, our euro denominated revenue exceeds euro expenses by approximately €120 million. With respect to the British Pound Sterling, Canadian dollar, and Philippine Peso, we have greater outflows than inflows of these currencies, although to a lesser degree. As a result, particularly with respect to the euro, we are exposed to changes in currency exchange rates and such changes could be significant. The translation of the results from international operations into U.S. dollars is subject to changes in foreign currency exchange rates.

The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation’s results for the first nine months of 2015.

In thousands	Nine months ended September 30, 2015
	Favorable (unfavorable)
Net sales		$(82,693	)
Costs of products sold		62,069
SG&A expenses		6,987
Income taxes and other		2,263
Net income		$(11,375	)

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2015 were the same as 2014 before giving effect to foreign currency hedges. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

- 33 -

GLATFELTER

9.30.15 Form 10-Q

Three months ended September 30, 2015 versus the three months ended September 30, 2014

Overview For the third quarter of 2015, net income totaled $13.5 million, or $0.31 per diluted share, compared with $30.4 million, or $0.69 per diluted share, in the third quarter of 2014.

The following table sets forth summarized results of operations:

	Three months ended September 30
In thousands, except per share	2015		2014
Net sales	$	419,960	$	465,092
Gross profit		59,908		80,513
Operating income		20,239		44,217
Net income		13,504		30,372
Earnings per diluted share		0.31		0.69

Adjusted earnings, a non-GAAP financial measure, is set forth in the following table for the third quarters of 2015 and 2014:

In thousands, except per share	After-tax amounts			Diluted EPS
2015
Net income	$	13,504		$	0.31
Fox River environmental matter		6,222			0.14
Asset impairment charge		857			0.02
Workforce efficiency charges		211			—
Acquisition and integration related costs		13			—
Adjusted earnings (non-GAAP)	$	20,807		$	0.47
2014
Net income	$	30,372		$	0.69
Asset impairment charge		2,356			0.05
Acquisition and integration related costs		115			—
Timberland sales and related costs		(1,004	)		(0.02	)
Alternative fuel mixture/ Cellulosic biofuel credits		(1,032	)		(0.02	)
Adjusted earnings (non-GAAP)	$	30,807		$	0.70

Business Unit Performance

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	133.9	$	154.5	$	63.2	$	74.4	$	222.8	$	236.2	$	—		$	—		$	420.0		$	465.1
Energy and related sales, net		—		—		—		—		1.2		0.9		—			—			1.2			0.9
Total revenue		133.9		154.5		63.2		74.4		224.0		237.1		—			—			421.1			466.0
Cost of products sold		108.4		123.7		54.6		64.7		196.1		195.2		2.1			1.8			361.2			385.4
Gross profit (loss)		25.5		30.8		8.6		9.7		27.9		41.9		(2.1	)		(1.8	)		59.9			80.5
SG&A		11.5		12.6		1.8		2.2		10.4		14.1		16.2			9.0			39.8			37.9
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(0.1	)		(1.6	)		(0.1	)		(1.6	)
Total operating income (loss)		14.0		18.1		6.8		7.5		17.5		27.8		(18.2	)		(9.2	)		20.2			44.2
Non-operating expense		—		—		—		—		—		—		(4.4	)		(4.8	)		(4.4	)		(4.8	)
Income (loss) before income taxes	$	14.0	$	18.1	$	6.8	$	7.5	$	17.5	$	27.8	$	(22.6	)	$	(14.0	)	$	15.8		$	39.4
Supplementary Data
Net tons sold (thousands)		38.9		40.1		24.8		26.3		203.6		208.4		—			—			267.2			274.7
Depreciation, depletion and amortization	$	6.7	$	7.4	$	2.2	$	2.3	$	6.4	$	6.5	$	0.5		$	0.5		$	15.8		$	16.7
Capital expenditures		5.8		5.4		1.8		1.3		22.1		9.7		—			0.5			29.7			16.9

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

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GLATFELTER

9.30.15 Form 10-Q

Sales and Costs of Products Sold

	Three months ended September 30
In thousands	2015			2014			Change
Net sales	$	419,960		$	465,092		$	(45,132	)
Energy and related sales, net		1,153			860			293
Total revenues		421,113			465,952			(44,839	)
Costs of products sold		361,205			385,439			(24,234	)
Gross profit	$	59,908		$	80,513		$	(20,605	)
Gross profit as a percent of Net sales		14.3	%		17.3	%

The following table sets forth the contribution to consolidated net sales by each business unit:

	Three months ended September 30
Percent of Total	2015			2014
Business Unit
Composite Fibers		31.9	%		33.2	%
Advanced Airlaid Material		15.0			16.0
Specialty Papers		53.1			50.8
Total		100.0	%		100.0	%

Net sales totaled $420.0 million in the third quarter of 2015 compared with $465.1 million in the third quarter of 2014. The translation of non-U.S. dollar sales unfavorably impacted the year-over-year comparison by $25.2 million reflecting the weaker Euro.

Net sales for Composite Fibers declined $20.6 million, or 13.3%, primarily due to $18.8 million of unfavorable currency translation and $3.9 million from lower selling prices, partially offset by the inclusion of Spezialpapierfabrik Oberschmitten GmbH (SPO), which was acquired in the fourth quarter of 2014. Shipping volumes declined 3.0% due to a 23.2% decline in nonwoven wallcover.

Composite Fibers’ third-quarter 2015 operating income totaled $14.1 million, a $4.0 million decline compared to the year-ago period. The negative impact of lower selling prices and wallcover shipping volumes was partially offset by $2.2 million of improved operations and $1.2 million of lower raw material and energy costs. The change in foreign currency exchange rates negatively impacted results by $1.3 million.

On a year-over-year basis, Advanced Airlaid Materials’ net sales decreased $11.2 million largely due to $6.4 million of unfavorable currency translation and a 5.8% decline in shipping volumes.

Third-quarter 2015 operating income declined $0.7 million compared to the same quarter a year-ago primarily due to approximately $1.7 million related to lower shipping volumes and downtime to align production with demand, partially offset by $1.5 million of lower raw material and energy costs.

On a year-over-year basis, Specialty Papers’ net sales decreased $13.4 million, or 5.7%, due to lower average selling prices totaling $5.7 million and a decline in shipping volumes.

Specialty Papers’ third-quarter 2015 operating income totaled $17.5 million, a $10.2 million decrease in the year-over-year comparison primarily due to lower selling prices, $3.1 million of market downtime and $3.7 million from lower pulp production, partially offset by $2.9 million of lower raw material and energy costs.

We sell excess power generated by the Spring Grove, PA facility. The following table summarizes this activity for the third quarters of 2015 and 2014:

	Three months ended September 30
In thousands	2015			2014			Change
Energy sales	$	1,047		$	1,513		$	(466	)
Costs to produce		(1,131	)		(1,268	)		137
Net		(84	)		245			(329	)
Renewable energy credits		1,237			615			622
Total	$	1,153		$	860		$	293

Renewable energy credits (“RECs”) represent sales of certified credits earned related to burning renewable sources of energy such as black liquor and wood waste. We sell RECs into an illiquid market. The extent and value of future revenues from REC sales is dependent on many factors outside of management’s control. Therefore, we may not be able to generate consistent additional sales of RECs in future periods.

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GLATFELTER

9.30.15 Form 10-Q

Other and Unallocated The amount of net operating expenses not allocated to a business unit and reported as “Other and Unallocated” in our table of Business Unit Performance, totaled $18.2 million in the third quarter of 2015 compared with $9.1 million in the third quarter of 2014. Excluding the impact of sales of timberlands in the comparison, unallocated net operating expenses increased $7.6 million primarily due to the $10.0 million Fox River environmental matter charge partially offset by lower corporate spending.

Pension Expense The following table summarizes the amounts of pension expense recognized for the periods indicated:

	Three months ended September 30
In thousands	2015		2014		Change
Recorded as:
Costs of products sold	$	1,752	$	1,650	$	102
SG&A expense		454		3		451
Total	$	2,206	$	1,653	$	553

Income taxes For the third quarter of 2015, we recorded a provision for income taxes of $2.3 million on pretax income of $15.8 million. The comparable amounts in the third quarter of 2014 were income tax expense of $9.0 million on $39.4 million of pretax income. In the third quarter of 2014, we recorded a $1.0 million benefit from the release of tax reserves related to alternative fuel mixture credits earned in 2009, due to the lapse of the applicable statutes of limitation.

Foreign Currency The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation’s results for the third quarter of 2015 compared to the third quarter of 2014:

In thousands	Three months ended September 30, 2015
	Favorable (unfavorable)
Net sales		$(25,198	)
Costs of products sold		19,146
SG&A expenses		2,052
Income taxes and other		491
Net income		$  (3,509	)

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2015 were the same as 2014 before giving effect to foreign currency hedges. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

LIQUIDITY AND CAPITAL RESOURCES

Our business is capital intensive and requires significant expenditures for new or enhanced equipment, to support our research and development efforts, for environmental compliance matters including, but not limited to, the Clean Air Act, and to support our business strategy. In addition, we have mandatory debt service requirements of both principal and interest. The following table summarizes cash flow information for each of the periods presented:

	September 30
In thousands	2015			2014
Cash and cash equivalents at beginning of period	$	99,837		$	122,882
Cash provided (used) by
Operating activities		70,523			21,380
Investing activities		(72,923	)		(43,585	)
Financing activities		(21,946	)		(46,007	)
Effect of exchange rate changes on cash		(1,826	)		(1,015	)
Net cash used		(26,172	)		(69,227	)
Cash and cash equivalents at end of period	$	73,665		$	53,655

At September 30, 2015, we had $73.7 million in cash and cash equivalents held by both domestic and foreign subsidiaries. Although unremitted earnings of our foreign subsidiaries are deemed to be permanently reinvested, substantially all of the cash and cash equivalents is available for use domestically. In addition to our cash and cash equivalents, $157.2 million is available under our revolving credit agreement which matures in March 2020.

Cash provided by operating activities totaled $70.5 million in the first nine months of 2015 compared with $21.4 million in the same period a year ago. The increase in cash from operations primarily reflects a decrease in cash used for working capital primarily related to lower inventory and improved payment terms with suppliers together with lower income tax payments partially offset by cash used for Fox River environmental remediation activities.

Net cash used by investing activities increased by $29.3 million in the year-over-year comparison primarily due to capital expenditures largely related to environmental compliance projects. Capital expenditures during the first nine months of 2015 and 2014, include $19.0 million and $2.9 million, respectively, related to environmental compliance projects. Capital expenditures in 2015 are expected to be approximately $105 million to $115 million including approximately $35 million for Specialty Papers’ compliance projects.

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GLATFELTER

9.30.15 Form 10-Q

Net cash used by financing activities totaled $21.9 million in the first nine months of 2015 compared with $46.0 million in the same period of 2014. In 2014, we used $30.7 million of cash to reduce amounts outstanding on our revolving credit facility compared with no changes in the first nine months of 2015.

At September 30, 2015, our net debt (defined as total debt less cash) totaled $315.5 million compared to $304.8 million at the end of 2014. The following table sets forth our outstanding long-term indebtedness:

	September 30			December 31
In thousands	2015			2014
Revolving credit facility, due Mar. 2020	$	83,464		$	—
Revolving credit facility, due Nov. 2016		—			90,555
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,803			12,155
2.05% Term Loan, due Mar. 2023		44,848			51,902
Total long-term debt		389,115			404,612
Less current portion		(7,580	)		(5,734	)
Long-term debt, net of current portion	$	381,535		$	398,878

Our revolving credit facility contains a number of customary compliance covenants, the most restrictive of which is a maximum leverage ratio of 3.5x. As of September 30, 2015, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.2x, within the limits set forth in our credit agreement. Based on our expectations of future results of operations and capital needs, we do not believe the debt covenants will impact our operations or limit our ability to undertake financings that may be necessary to meet our capital needs.

The 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the credit agreement at maturity, or a default under the credit agreement that accelerates the debt outstanding thereunder. As of September 30, 2015, we met all of the requirements of our debt covenants. The significant terms of the debt instruments are more fully discussed in Item 1—Financial Statements – Note 12.

Our long-term debt includes two term loans with mandatory principal repayments that have used $3.4 million of cash in the first nine months of 2015. Principal repayments will total approximately $4.7 million and $6.8 million, in 2015 and 2016, respectively.

Cash used for financing activities includes cash used for common stock dividends, and, with respect to the first nine months of 2014, stock repurchases. In February 2015, our Board of Directors authorized a 9% increase in our quarterly cash dividend. In the first nine months of 2015, we used $15.2 million of cash for dividends on our common stock compared with $13.9 million in the same period of 2014. The Board of Directors determines what, if any, dividends will be paid to our shareholders. Dividend payment decisions are based upon then-existing factors and conditions and, therefore, historical trends of dividend payments are not necessarily indicative of future payments.

On May 1, 2014, we announced that our Board of Directors approved a $25 million increase to our share repurchase program and extended the expiration date to May 1, 2016. Under the revised program, we may repurchase up to $50 million of our outstanding common stock of which $33.4 million remains available as of September 30, 2015. No repurchases were made in the first nine months of 2015 and repurchases totaled $12.2 million in the first nine months of 2014.

We are subject to various federal, state and local laws and regulations intended to protect the environment as well as human health and safety. At various times, we have incurred significant costs to comply with these regulations and we could incur additional costs as new regulations are developed or regulatory priorities change. We will incur material capital costs to comply with new air quality regulations including the U.S. EPA Best Available Retrofit Technology rule (BART; otherwise known as the Regional Haze Rule) and the Boiler Maximum Achievable Control Technology rule (Boiler MACT). These rules will require process modifications and/or installation of air pollution controls on boilers at two of our facilities. We have begun converting or replacing four coal-fired boilers to natural gas and upgrading site infrastructure to accommodate the new boilers, including connecting to gas pipelines. The total cost of these projects is estimated at $85 million to $90 million of which $25.1 million has been spent to date. The balance of the costs will be incurred substantially over the next eighteen months. The amount of capital spending ultimately incurred may differ, and the difference could be material. Enactment of new environmental laws or regulations or changes in existing laws or regulations could significantly change our estimates.

As more fully discussed in Note 16 – Commitments, Contingencies and Legal Proceedings, during the fourth quarter of 2015, we expect to spend approximately $5 million to remediate a portion of the Lower Fox River in Wisconsin (the “Fox River”), an EPA Superfund site. It is conceivable we may need to fund a portion of the on-going costs beyond 2015. Although we are unable to determine with any degree of certainty the amount we may

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GLATFELTER

9.30.15 Form 10-Q

be required to fund for interim remediation work, such amounts could be significant. The ultimate allocation of such costs is the subject of extensive ongoing litigation amongst three potentially responsible parties. See Item 1 – Financial Statements – Note 16 for a summary of significant environmental matters.

We expect to meet all of our near- and longer-term cash needs from a combination of operating cash flow, cash and cash equivalents, our credit facility or other bank lines of credit and other long-term debt. However, as discussed in Item 1 – Financial Statements – Note 16, an unfavorable outcome of the Fox River matters could have a material adverse impact on our consolidated financial position, liquidity and/or results of operations.

Off-Balance-Sheet Arrangements As of September 30, 2015 and December 31, 2014, we had not entered into any off-balance-sheet arrangements. Financial derivative instruments, to which we are a party, and guarantees of indebtedness, which solely consist of obligations of subsidiaries and a partnership, are reflected in the condensed consolidated balance sheets included herein in Item 1 – Financial Statements.

Outlook Composite Fibers’ shipping volumes and selling prices in the fourth quarter are expected to approximate the third quarter of 2015 levels. Raw material and energy prices are expected to be slightly higher than the third quarter.

Shipping volumes for Advanced Airlaid Materials in the fourth quarter of 2015 are expected to be down slightly compared with the third quarter. Average selling prices and raw material prices in the fourth quarter are expected to be in-line with the third quarter.

For Specialty Papers, we expect shipping volumes in the fourth quarter of 2015 to be in-line with the third quarter. Overall, selling prices are expected to decline slightly in the fourth quarter compared to the third quarter due to continued pressure on commodity products and input costs are expected to be in-line with the third quarter of 2015. We do not expect any market downtime in Specialty Papers in the fourth quarter.

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GLATFELTER

9.30.15 Form 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

	Year Ended December 31															September 30, 2015
Dollars in thousands	2015			2016			2017			2018			2019			Carrying Value		Fair Value
Long-term debt
Average principal outstanding
At fixed interest rates – Bond	$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000	$	253,908
At fixed interest rates – Term Loans		57,547			52,261			44,681			37,101			29,521			55,651		54,340
At variable interest rates		83,464			83,464			83,464			83,464			83,464			83,464		83,464
																$	389,115	$	391,712
Weighted-average interest rate
On fixed rate debt – Bond		5.375	%		5.375	%		5.375	%		5.375	%		5.375	%
On fixed rate debt – Term Loans		2.12	%		2.12	%		2.12	%		2.12	%		2.12	%
On variable rate debt		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%

The table above presents the average principal outstanding and related interest rates for the next five years for debt outstanding as of September 30, 2015. Fair values included herein have been determined based upon rates currently available to us for debt with similar terms and remaining maturities.

Our market risk exposure primarily results from changes in interest rates and currency exchange rates. At September 30, 2015, we had $389.1 million of long-term debt, of which 21.5% was at variable interest rates. Variable-rate debt outstanding consists of borrowings under our revolving credit agreement that accrues interest based on LIBOR plus a margin. At September 30, 2015, the interest rate paid was approximately 1.50%. A hypothetical 100 basis point increase or decrease in the interest rate on variable rate debt would increase or decrease annual interest expense by $0.8 million.

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.” For a more complete discussion of this activity, refer to Item 1 – Financial Statements – Note 15.

We are subject to certain risks associated with changes in foreign currency exchange rates to the extent our operations are conducted in currencies other than the U.S. Dollar. Our euro denominated revenue exceeds euro expenses by approximately €120 million. With respect to the British Pound Sterling, Canadian dollar, and Philippine Peso, we have greater outflows than inflows of these currencies, although to a lesser degree. As a result, particularly with respect to the euro, we are exposed to changes in currency exchange rates and such changes have been and could continue to be significant.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures Our chief executive officer and our principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2015, have concluded that, as of the evaluation date, our disclosure controls and procedures are effective.

Changes in Internal Controls There were no changes in our internal control over financial reporting during the three months ended September 30, 2015, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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GLATFELTER

9.30.15 Form 10-Q

PART II

ITEM 6. EXHIBITS

The following exhibits are filed herewith or incorporated by reference as indicated.

4.1	First Supplemental Indenture dated as of October 27, 2015 by and among P. H. Glatfelter Company, the Subsidiary Guarantors named therein and US Bank National Association, as Trustee.
31.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
32.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	P. H. GLATFELTER COMPANY
	(Registrant)
November 3, 2015
	By	/s/ David C. Elder
		David C. Elder
		Vice President, Finance

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GLATFELTER

9.30.15 Form 10-Q

EXHIBIT INDEX

Exhibit Number	Description
4.1	First Supplemental Indenture dated as of October 27, 2015 by and among P. H. Glatfelter Company, the Subsidiary Guarantors named therein and US Bank National Association, as Trustee.
31.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 – Chief Executive Officer, filed herewith.
31.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer, filed herewith.
32.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer, filed herewith.
32.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 – Chief Financial Officer, filed herewith.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

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GLATFELTER

9.30.15 Form 10-Q

EX-4.1

Exhibit 4.1

P. H. GLATFELTER COMPANY

Issuer

5.375% Senior Notes due 2020

FIRST SUPPLEMENTAL INDENTURE

Dated as of October 27, 2015

U.S. BANK NATIONAL ASSOCIATION

Trustee

FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of October 27, 2015, among Glatfelter Advanced Materials N.A., Inc. and Glatfelter Composite Fibers NA, Inc., each a Delaware corporation (the “Additional Subsidiary Guarantors”), the entities listed on Schedule I hereto (collectively, the “Existing Subsidiary Guarantors”), P. H. Glatfelter Company, a Pennsylvania corporation (the “Company”), and U.S. Bank National Association, as trustee (the “Trustee”).

WITNESSETH

WHEREAS, the Company, the Existing Subsidiary Guarantors and the Trustee are parties to an indenture dated as of October 3, 2012 (the “Indenture”), providing for the issuance of 5.375% Senior Notes due 2020 (the “Notes”);

WHEREAS, each Additional Subsidiary Guarantor desires to become a Subsidiary Guarantor under the Indenture;

WHEREAS, pursuant to Section 9.01 of the Indenture, the Company, the Subsidiary Guarantors and the Trustee may amend the Indenture without notice to or consent of any Noteholder to, among other things, add Subsidiary Guarantees and;

WHEREAS, the Company has heretofore delivered or is delivering contemporaneously to the Trustee an Officers’ Certificate and an Opinion of Counsel.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree, for the equal and proportionate benefit of all Noteholders, as follows:

ARTICLE ONE

Ratifications; Definitions

SECTION 1.01. First Supplemental Indenture. This Supplemental Indenture is supplemental to, and is entered into in accordance with Section 9.01 of the Indenture, and except as modified, amended and supplemented by this Supplemental Indenture, the provisions of the Indenture are in all respects ratified and confirmed and shall remain in full force and effect; and

SECTION 1.02. Definitions. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

ARTICLE TWO

Additional Subsidiary Guarantors

SECTION 2.01. Guarantee. Each Additional Subsidiary Guarantor hereby expressly assumes the obligations of, and otherwise agrees to perform all of the duties of, a Subsidiary Guarantor (in addition to any other Subsidiary Guarantors) under the Indenture, subject to the terms and conditions thereof, with the same effect as if such Additional Subsidiary Guarantor had been named as a Subsidiary Guarantor therein as of the date this Supplemental Indenture is executed and delivered.

ARTICLE THREE

Miscellaneous

SECTION 3.01. Successors and Assigns. This Supplemental Indenture shall be binding upon each Additional Subsidiary Guarantor and its successors and assigns and shall enure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in the Indenture, this Supplemental Indenture and the Notes shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Supplemental Indenture and the Indenture.

SECTION 3.02. Multiple Originals. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Supplemental Indenture.

SECTION 3.03. Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

2

SECTION 3.04. Effective Date. This Supplemental Indenture shall become effective upon execution and delivery hereof.

SECTION 3.05. Incorporation into Indenture. All provisions of this Supplemental Indenture shall be deemed to be incorporated in, and made part of, the Indenture; and the Indenture, as amended and supplemented by this Supplemental Indenture, shall be read, taken and construed as one and the same instrument.

SECTION 3.06. Acceptance. The Trustee accepts the Indenture, as supplemented by this Supplemental Indenture, and agrees to perform the same upon the terms and conditions set forth therein as so supplemented.

SECTION 3.07. Severability. In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 3.08. Table of Contents; Headings. The headings of the Articles and Sections of this Supplemental Indenture have been inserted for convenience of reference only, are not intended to be considered part hereof and shall not modify or restrict any of the terms or provisions hereof.

* * *

3

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first written above.

P. H. GLATFELTER COMPANY
By:	/s/ Ramesh Shettigar
Name:	Ramesh Shettigar
Title:	VP, Treasurer
PHG TEA LEAVES, INC.
By:	/s/ Gregory L. Barta
Name:	Gregory L. Barta
Title:	President
MOLLANVICK, INC.
By:	/s/ Gregory L. Barta
Name:	Gregory L. Barta
Title:	President
GLATFELTER HOLDINGS LLC
By:	/s/ Gregory L. Barta
Name:	Gregory L. Barta
Title:	President
GLATFELTER ADVANCED MATERIALS N.A., INC.
By:	/s/ Christopher W. Astley
Name:	Christopher W. Astley
Title:	President
GLATFELTER COMPOSITE FIBERS NA, INC.
By:	/s/ Ramesh Shettigar
Name:	Ramesh Shettigar
Title:	Vice President

[Signature Page to First Supplemental Indenture]

U.S. BANK NATIONAL ASSOCIATION, as Trustee
By:	/s/ Patricia A. Welling
Name:	Patricia A. Welling
Title:	Vice President

[Signature Page to First Supplemental Indenture]

SCHEDULE I

EXISTING SUBSIDIARY GUARANTORS

PHG Tea Leaves, Inc.

Mollanvick, Inc.

Glatfelter Holdings LLC

Schedule I to First Supplemental Indenture

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

I, Dante C. Parrini certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 of P. H. Glatfelter Company (“Glatfelter”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. Glatfelter’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Glatfelter and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Glatfelter, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of Glatfelter’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in Glatfelter’s internal control over financial reporting that occurred during Glatfelter’s most recent fiscal quarter (the fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Glatfelter’s internal control over financial reporting.

5. Glatfelter’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Glatfelter’s auditors and the audit committee of Glatfelter’s board of directors (or persons performing similar functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Glatfelter’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in Glatfelter’s internal control over financial reporting.

November 3, 2015

By	/s/ Dante C. Parrini
	Dante C. Parrini
	Chairman and Chief Executive Officer

- 42 -

GLATFELTER

9.30.15 Form 10-Q

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

I, John P. Jacunski certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 of P. H. Glatfelter Company (“Glatfelter”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. Glatfelter’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Glatfelter and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Glatfelter, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of Glatfelter’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in Glatfelter’s internal control over financial reporting that occurred during Glatfelter’s most recent fiscal quarter (the fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Glatfelter’s internal control over financial reporting.

5. Glatfelter’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Glatfelter’s auditors and the audit committee of Glatfelter’s board of directors (or persons performing similar functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Glatfelter’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in Glatfelter’s internal control over financial reporting.

November 3, 2015

By	/s/	John P. Jacunski
		John P. Jacunski
		Executive Vice President and Chief Financial Officer

- 43 -

GLATFELTER

9.30.15 Form 10-Q

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, of P. H. Glatfelter Company (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dante C. Parrini, Chairman and Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Glatfelter and will be retained by Glatfelter and furnished to the Securities and Exchange Commission or its staff upon request.

November 3, 2015

By	/s/ Dante C. Parrini
	Dante C. Parrini
	Chairman and Chief Executive Officer

- 44 -

GLATFELTER

9.30.15 Form 10-Q

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, of P. H. Glatfelter Company (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Jacunski, Executive Vice President and Chief Financial Officer of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Glatfelter and will be retained by Glatfelter and furnished to the Securities and Exchange Commission or its staff upon request.

November 3, 2015

By	/s/ John P. Jacunski
	John P. Jacunski
	Executive Vice President and Chief Financial Officer

- 45 -

GLATFELTER

9.30.15 Form 10-Q

XML

Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income for the

three months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	222,803		$	19,005		$	197,589		$	(19,437	)	$	419,960
Energy and related sales, net		1,153			—			—			—			1,153
Total revenues		223,956			19,005			197,589			(19,437	)		421,113
Costs of products sold		197,906			17,299			165,437			(19,437	)		361,205
Gross profit		26,050			1,706			32,152			—			59,908
Selling, general and administrative expenses		24,764			(8	)		15,036			—			39,792
Gains on dispositions of plant, equipment and timberlands, net		(4	)		—			(119	)		—			(123	)
Operating income		1,290			1,714			17,235			—			20,239
Other non-operating income (expense)
Interest expense		(4,346	)		—			(23,201	)		23,230			(4,317	)
Interest income		181			23,129			11			(23,231	)		90
Equity in earnings of subsidiaries		14,173			(9,366	)		—			(4,808	)		—
Other, net		(961	)		23			718			—			(220	)
Total other non-operating income (expense)		9,047			13,786			(22,472	)		(4,809	)		(4,447	)
Income (loss) before income taxes		10,337			15,500			(5,237	)		(4,809	)		15,792
Income tax provision (benefit)		(3,167	)		1,270			4,185			—			2,288
Net income (loss)		13,504			14,230			(9,422	)		(4,809	)		13,504
Other comprehensive income (loss)		(3,002	)		(5,954	)		(7,752	)		13,706			(3,002	)
Comprehensive income (loss)	$	10,502		$	8,276		$	(17,174	)	$	8,897		$	10,502

Condensed Consolidating Statement of Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	17,735		$	228,699		$	(17,524	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			17,735			228,699			(17,524	)		465,952
Costs of products sold		197,182			17,019			188,762			(17,524	)		385,439
Gross profit		39,860			716			39,937			—			80,513
Selling, general and administrative expenses		19,352			589			17,946			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income		22,098			127			21,991			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Equity in earnings of subsidiaries		14,935			(74,502	)		—			59,566			—
Other, net		(383	)		9			202			5			(167	)
Total other non-operating income (expense)		9,914			15,458			(89,751	)		59,570			(4,808	)
Income (loss) before income taxes		32,012			15,585			(67,760	)		59,570			39,409
Income tax provision (benefit)		1,640			1,091			6,306			—			9,037
Net income (loss)		30,372			14,494			(74,066	)		59,570			30,372
Other comprehensive income (loss)		(29,577	)		(25,843	)		16,924			8,919			(29,577	)
Comprehensive income (loss)	$	795		$	(11,349	)	$	(57,142	)	$	68,489		$	795

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	655,599		$	61,822		$	590,466		$	(59,655	)	$	1,248,232
Energy and related sales, net		3,936			—			—			—			3,936
Total revenues		659,535			61,822			590,466			(59,655	)		1,252,168
Costs of products sold		614,060			58,554			494,360			(59,655	)		1,107,319
Gross profit		45,475			3,268			96,106			—			144,849
Selling, general and administrative expenses		57,607			947			41,647			—			100,201
Gains on dispositions of plant, equipment and timberlands, net		(1,526	)		(1,183	)		(179	)		—			(2,888	)
Operating income (loss)		(10,606	)		3,504			54,638			—			47,536
Other non-operating income (expense)
Interest expense		(13,771	)		—			(35,965	)		36,559			(13,177	)
Interest income		513			36,226			52			(36,559	)		232
Equity in earnings of subsidiaries		48,775			11,879			—			(60,654	)		—
Other, net		(2,423	)		(136	)		2,367			—			(192	)
Total other non-operating income (expense)		33,094			47,969			(33,546	)		(60,654	)		(13,137	)
Income before income taxes		22,488			51,473			21,092			(60,654	)		34,399
Income tax provision (benefit)		(7,789	)		2,586			9,325			—			4,122
Net income		30,277			48,887			11,767			(60,654	)		30,277
Other comprehensive income (loss)		(21,200	)		(30,607	)		21,156			9,451			(21,200	)
Comprehensive income	$	9,077		$	18,280		$	32,923		$	(51,203	)	$	9,077

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	56,138		$	685,350		$	(55,211	)	$	1,366,154
Energy and related sales, net		6,912			—			—			—			6,912
Total revenues		686,789			56,138			685,350			(55,211	)		1,373,066
Costs of products sold		629,984			53,491			567,812			(55,211	)		1,196,076
Gross profit		56,805			2,647			117,538			—			176,990
Selling, general and administrative expenses		53,699			1,431			48,622			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		5,671			2,532			68,916			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Equity in earnings of subsidiaries		56,784			(38,229	)		—			(18,555	)		—
Other, net		(1,603	)		30			1,673			5			105
Total other non-operating income (expense)		41,365			56,966			(93,777	)		(18,551	)		(13,997	)
Income (loss) before income taxes		47,036			59,498			(24,861	)		(18,551	)		63,123
Income tax provision (benefit)		(2,653	)		2,719			13,368			—			13,434
Net income (loss)		49,689			56,779			(38,229	)		(18,551	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	30,387		$	(19,322	)	$	(11,066	)	$	26,103

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet as of

September 30, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	28,626	$	297		$	44,742	$	—		$	73,665
Other current assets		232,486		260,054			261,431		(268,192	)		485,779
Plant, equipment and timberlands, net		283,712		1,005			412,607		—			697,324
Investments in subsidiaries		734,303		504,783			—		(1,239,086	)		—
Other assets		132,732		—			148,732		(485	)		280,979
Total assets	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747
Liabilities and Shareholders’ Equity
Current liabilities	$	368,220	$	31,720		$	163,984	$	(271,574	)	$	292,350
Long-term debt		250,000		—			131,535		—			381,535
Deferred income taxes		48,226		(505	)		50,110		3,376			101,207
Other long-term liabilities		99,297		33			17,209		—			116,539
Total liabilities		765,743		31,248			362,838		(268,198	)		891,631
Shareholders’ equity		646,116		734,891			504,674		(1,239,565	)		646,116
Total liabilities and shareholders’ equity	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747

Condensed Consolidating Balance Sheet as of

December 31, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	42,208	$	509		$	57,120		$	—		$	99,837
Other current assets		216,940		439,910			254,911			(436,976	)		474,785
Plant, equipment and timberlands, net		255,255		996			441,357			—			697,608
Investments in subsidiaries		826,084		401,540			—			(1,227,624	)		—
Other assets		121,125		—			186,128			(17,979	)		289,274
Total assets	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504
Liabilities and Shareholders’ Equity
Current liabilities		403,662		13,143			307,184			(444,258	)		279,731
Long-term debt		250,000		—			721,457			(572,579	)		398,878
Deferred income taxes		46,483		(506	)		70,328			(12,289	)		104,016
Other long-term liabilities		112,358		24			11,608			5,780			129,770
Total liabilities		812,503		12,661			1,110,577			(1,023,346	)		912,395
Shareholders’ equity		649,109		830,294			(171,061	)		(659,233	)		649,109
Total liabilities and shareholders’ equity	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	9,927		$	152		$	60,444		$	—		$	70,523
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(52,331	)		(42	)		(21,907	)		—			(74,280	)
Proceeds from disposal plant, equipment and timberlands, net		1,584			1,213			384			—			3,181
Repayments from intercompany loans		1,465			53,855			—			(55,320	)		—
Advances of intercompany loans		—			(44,590	)		—			44,590			—
Intercompany capital (contributed) returned		10,500			(300	)		—			(10,200	)		—
Acquisitions, net of cash acquired		—			—			(224	)		—			(224	)
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(40,382	)		10,136			(21,747	)		(20,930	)		(72,923	)
Financing activities
Net repayments of indebtedness		—			—			(3,387	)		—			(3,387	)
Payments of borrowing costs		(1,329	)		—			—			—			(1,329	)
Payment of dividends to shareholders		(15,215	)		—			—			—			(15,215	)
Repayments of intercompany loans		(9,158	)		—			(46,162	)		55,320			—
Borrowings of intercompany loans		44,590			—			—			(44,590	)		—
Intercompany capital received (returned)		—			(10,500	)		300			10,200			—
Payments related to share-based compensation awards and other		(2,015	)		—			—			—			(2,015	)
Total financing activities		16,873			(10,500	)		(49,249	)		20,930			(21,946	)
Effect of exchange rate on cash		—			—			(1,826	)		—			(1,826	)
Net decrease in cash		(13,582	)		(212	)		(12,378	)		—			(26,172	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	28,626		$	297		$	44,742		$	—		$	73,665

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,371		$	17,297		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net proceeds from indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Payments related to share-based compensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(405	)		(32,914	)		—			(69,227	)
Cash at the beginning of period		56,216			495			66,171			—			122,882
Cash at the end of period	$	20,308		$	90		$	33,257		$	—		$	53,655

XML

Retirement Plans and Other Post-Retirement Benefits - Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,850	$ 2,602	$ 8,546	$ 7,810
Interest cost	5,868	6,216	17,606	18,696
Expected return on plan assets	(11,498)	(10,969)	(34,495)	(32,907)
Amortization of prior service cost	760	827	2,281	2,482
Amortization of unrecognized loss	4,226	2,977	12,679	8,931
Net periodic benefit cost	2,206	1,653	6,617	5,012
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	358	614	1,074	1,844
Interest cost	499	597	1,498	1,793
Amortization of prior service cost	(70)	(72)	(210)	(216)
Amortization of unrecognized loss	58	129	173	387
Net periodic benefit cost	$ 845	$ 1,268	$ 2,535	$ 3,808

XML

Income Taxes - Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction (Detail)	9 Months Ended
	Sep. 30, 2015
United States - Federal [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013 - 2014
Examination in progress	N/A
United States - State [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010 - 2014
Examination in progress	N/A
Foreign Tax Authority [Member] | Canada [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010 - 2014
Examination in progress	N/A
Foreign Tax Authority [Member] | Germany [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012 - 2014
Examination in progress	2007 - 2011
Foreign Tax Authority [Member] | France [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013 - 2014
Examination in progress	2011 - 2012
Foreign Tax Authority [Member] | United Kingdom [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013 - 2014
Examination in progress	N/A
Foreign Tax Authority [Member] | Philippines [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012, 2014
Examination in progress	2013

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Financial Derivatives and Hedging Activities - Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance at January 1,	$ 3,282	$ (1,296)
Deferred gains on cash flow hedges	1,100	2,223
Reclassified to earnings	(4,595)	1,227
Balance at September 30,	$ (213)	$ 2,154

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Asset Impairment Charge - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Indefinite-lived Intangible Assets [Line Items]
Non-cash asset impairment charge			$ 1,200	$ 3,262
Dresden Papier GmbH [Member] | Trade Name [Member]
Indefinite-lived Intangible Assets [Line Items]
Non-cash asset impairment charge	$ 1,200	$ 3,300

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Accumulated Other Comprehensive Income - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	$ (361,205)	$ (385,439)	$ (1,107,319)	$ (1,196,076)
Selling, general and administrative	(39,792)	(37,886)	(100,201)	(103,751)
Income tax provision	2,288	9,037	4,122	13,434
Net income	13,504	30,372	30,277	49,689
Reclassifications Out of Accumulated Other Comprehensive Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Net income	1,641	2,494	5,902	8,075
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs and Expenses	4,986	3,804	14,960	11,413
Income tax provision	(1,896)	(1,441)	(5,686)	(4,325)
Net income	3,090	2,363	9,274	7,088
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	571	621	1,713	1,864
Selling, general and administrative	189	206	568	618
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	3,144	2,215	9,432	6,644
Selling, general and administrative	1,082	762	3,247	2,287
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs and Expenses	(12)	57	(37)	171
Income tax provision	5	(22)	16	(66)
Net income	(7)	35	(21)	105
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(58)	(59)	(173)	(178)
Selling, general and administrative	(12)	(13)	(37)	(38)
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	48	106	142	319
Selling, general and administrative	10	23	31	68
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | (Gains) Losses on Cash Flow Hedges [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(1,972)	137	(4,595)	1,227
Income tax provision	530	(41)	1,244	(345)
Net income	$ (1,442)	$ 96	$ (3,351)	$ 882

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2015			2014
Revolving credit facility, due Mar. 2020	$	83,464		$	—
Revolving credit facility, due Nov. 2016		—			90,555
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,803			12,155
2.05% Term Loan, due Mar. 2023		44,848			51,902
Total long-term debt		389,115			404,612
Less current portion		(7,580	)		(5,734	)
Long-term debt, net of current portion	$	381,535		$	398,878

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Segment Information - Schedule of Financial and Other Information by Business Unit (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) T	Sep. 30, 2014 USD ($) T	Sep. 30, 2015 USD ($) T	Sep. 30, 2014 USD ($) T
Segment Reporting Information [Line Items]
Net sales	$ 419,960	$ 465,092	$ 1,248,232	$ 1,366,154
Energy and related sales, net	1,153	860	3,936	6,912
Total revenue	421,113	465,952	1,252,168	1,373,066
Cost of products sold	361,205	385,439	1,107,319	1,196,076
Gross profit (loss)	59,908	80,513	144,849	176,990
SG&A	39,792	37,886	100,201	103,751
Gains on dispositions of plant, equipment and timberlands, net	(123)	(1,590)	(2,888)	(3,881)
Total operating income (loss)	20,239	44,217	47,536	77,120
Non-operating expense	(4,447)	(4,808)	(13,137)	(13,997)
Income (loss) before income taxes	$ 15,792	$ 39,409	$ 34,399	$ 63,123
Supplementary Data
Net tons sold | T	267,200	274,700	781,200	796,800
Depreciation, depletion and amortization	$ 15,800	$ 16,700	$ 47,423	$ 53,547
Capital expenditures	29,700	16,900	74,300	47,000
Composite Fibers [Member]
Segment Reporting Information [Line Items]
Net sales	133,900	154,500	409,600	470,100
Total revenue	133,900	154,500	409,600	470,100
Cost of products sold	108,400	123,700	329,800	376,700
Gross profit (loss)	25,500	30,800	79,800	93,400
SG&A	11,500	12,600	34,400	38,800
Total operating income (loss)	14,000	18,100	45,400	54,600
Income (loss) before income taxes	$ 14,000	$ 18,100	$ 45,400	$ 54,600
Supplementary Data
Net tons sold | T	38,900,000	40,100,000	116,200,000	119,500,000
Depreciation, depletion and amortization	$ 6,700	$ 7,400	$ 20,100	$ 22,700
Capital expenditures	5,800	5,400	17,300	16,700
Advanced Airlaid Materials [Member]
Segment Reporting Information [Line Items]
Net sales	63,200	74,400	183,000	216,200
Total revenue	63,200	74,400	183,000	216,200
Cost of products sold	54,600	64,700	162,000	189,900
Gross profit (loss)	8,600	9,700	21,000	26,300
SG&A	1,800	2,200	5,800	6,800
Total operating income (loss)	6,800	7,500	15,200	19,500
Income (loss) before income taxes	$ 6,800	$ 7,500	$ 15,200	$ 19,500
Supplementary Data
Net tons sold | T	24,800,000	26,300,000	71,400,000	76,000,000
Depreciation, depletion and amortization	$ 2,200	$ 2,300	$ 6,500	$ 6,900
Capital expenditures	1,800	1,300	4,600	4,100
Specialty Papers [Member]
Segment Reporting Information [Line Items]
Net sales	222,800	236,200	655,600	679,900
Energy and related sales, net	1,200	900	3,900	6,900
Total revenue	224,000	237,100	659,500	686,800
Cost of products sold	196,100	195,200	608,400	624,300
Gross profit (loss)	27,900	41,900	51,100	62,500
SG&A	10,400	14,100	34,200	39,500
Total operating income (loss)	17,500	27,800	16,900	23,000
Income (loss) before income taxes	$ 17,500	$ 27,800	$ 16,900	$ 23,000
Supplementary Data
Net tons sold | T	203,600,000	208,400,000	593,600,000	601,300,000
Depreciation, depletion and amortization	$ 6,400	$ 6,500	$ 19,300	$ 22,600
Capital expenditures	22,100	9,700	51,000	24,500
Other and Unallocated [Member]
Segment Reporting Information [Line Items]
Cost of products sold	2,100	1,800	7,100	5,200
Gross profit (loss)	(2,100)	(1,800)	(7,100)	(5,200)
SG&A	16,200	9,000	25,700	18,700
Gains on dispositions of plant, equipment and timberlands, net	(100)	(1,600)	(2,900)	(3,900)
Total operating income (loss)	(18,200)	(9,200)	(29,900)	(20,000)
Non-operating expense	(4,400)	(4,800)	(13,100)	(14,000)
Income (loss) before income taxes	(22,600)	(14,000)	(43,000)	(34,000)
Supplementary Data
Depreciation, depletion and amortization	$ 500	500	1,500	1,300
Capital expenditures		$ 500	$ 1,400	$ 1,700

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Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total long-term debt	$ 389,115	$ 404,612
Less current portion	(7,580)	(5,734)
Long-term debt, net of current portion	381,535	398,878
Total long-term debt	389,115	404,612
Revolving Credit Facility, Due Mar. 2020 [Member]
Debt Instrument [Line Items]
Total long-term debt	83,464
Total long-term debt	83,464
Revolving Credit Facility, Due Nov. 2016 [Member]
Debt Instrument [Line Items]
Total long-term debt		90,555
Total long-term debt		90,555
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Total long-term debt	250,000	250,000
Long-term debt, net of current portion	250,000	250,000
Total long-term debt	250,000	250,000
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Total long-term debt	10,803	12,155
Total long-term debt	10,803	12,155
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Total long-term debt	44,848	51,902
Total long-term debt	$ 44,848	$ 51,902

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Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 73,665	$ 99,837	$ 53,655	$ 122,882
Other current assets	485,779	474,785
Plant, equipment and timberlands, net	697,324	697,608
Other assets	280,979	289,274
Total assets	1,537,747	1,561,504
Liabilities and Shareholders' Equity
Current liabilities	292,350	279,731
Long-term debt	381,535	398,878
Deferred income taxes	101,207	104,016
Other long-term liabilities	116,539	129,770
Total liabilities	891,631	912,395
Shareholders' equity	646,116	649,109
Total liabilities and shareholders' equity	1,537,747	1,561,504
Adjustments/ Eliminations [Member]
Assets
Other current assets	(268,192)	(436,976)
Investments in subsidiaries	(1,239,086)	(1,227,624)
Other assets	(485)	(17,979)
Total assets	(1,507,763)	(1,682,579)
Liabilities and Shareholders' Equity
Current liabilities	(271,574)	(444,258)
Long-term debt		(572,579)
Deferred income taxes	3,376	(12,289)
Other long-term liabilities		5,780
Total liabilities	(268,198)	(1,023,346)
Shareholders' equity	(1,239,565)	(659,233)
Total liabilities and shareholders' equity	(1,507,763)	(1,682,579)
Parent Company [Member]
Assets
Cash and cash equivalents	28,626	42,208	20,308	56,216
Other current assets	232,486	216,940
Plant, equipment and timberlands, net	283,712	255,255
Investments in subsidiaries	734,303	826,084
Other assets	132,732	121,125
Total assets	1,411,859	1,461,612
Liabilities and Shareholders' Equity
Current liabilities	368,220	403,662
Long-term debt	250,000	250,000
Deferred income taxes	48,226	46,483
Other long-term liabilities	99,297	112,358
Total liabilities	765,743	812,503
Shareholders' equity	646,116	649,109
Total liabilities and shareholders' equity	1,411,859	1,461,612
Guarantors [Member]
Assets
Cash and cash equivalents	297	509	90	495
Other current assets	260,054	439,910
Plant, equipment and timberlands, net	1,005	996
Investments in subsidiaries	504,783	401,540
Total assets	766,139	842,955
Liabilities and Shareholders' Equity
Current liabilities	31,720	13,143
Deferred income taxes	(505)	(506)
Other long-term liabilities	33	24
Total liabilities	31,248	12,661
Shareholders' equity	734,891	830,294
Total liabilities and shareholders' equity	766,139	842,955
Non Guarantors [Member]
Assets
Cash and cash equivalents	44,742	57,120	$ 33,257	$ 66,171
Other current assets	261,431	254,911
Plant, equipment and timberlands, net	412,607	441,357
Other assets	148,732	186,128
Total assets	867,512	939,516
Liabilities and Shareholders' Equity
Current liabilities	163,984	307,184
Long-term debt	131,535	721,457
Deferred income taxes	50,110	70,328
Other long-term liabilities	17,209	11,608
Total liabilities	362,838	1,110,577
Shareholders' equity	504,674	(171,061)
Total liabilities and shareholders' equity	$ 867,512	$ 939,516

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Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	$ 70,523	$ 21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(74,280)	(47,036)
Proceeds from disposal plant, equipment and timberlands, net	3,181	4,051
Acquisitions, net of cash acquired	(224)
Other	(1,600)	(600)
Net cash used by investing activities	(72,923)	(43,585)
Financing activities
Net proceeds from (repayments of) indebtedness	(3,387)	(18,128)
Payments of borrowing costs	(1,329)
Payment of dividends to shareholders	(15,215)	(13,935)
Repurchases of common stock		(12,180)
Payments related to share-based compensation awards and other	(2,015)	(1,764)
Net cash used by financing activities	(21,946)	(46,007)
Effect of exchange rate on cash	(1,826)	(1,015)
Net (decrease) increase in cash	(26,172)	(69,227)
Cash and cash equivalents at the beginning of period	99,837	122,882
Cash and cash equivalents at the end of period	73,665	53,655
Adjustments/ Eliminations [Member]
Investing activities
Repayments from intercompany loans	(55,320)	(10,409)
Advances of intercompany loans	44,590	15,540
Intercompany capital (contributed) returned	(10,200)
Net cash used by investing activities	(20,930)	5,131
Financing activities
Repayments of intercompany loans	55,320	10,409
Borrowings of intercompany loans	(44,590)	(15,540)
Intercompany capital received (returned)	10,200
Net cash used by financing activities	20,930	(5,131)
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	9,927	712
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(52,331)	(26,368)
Proceeds from disposal plant, equipment and timberlands, net	1,584	2,687
Repayments from intercompany loans	1,465
Intercompany capital (contributed) returned	10,500
Other	(1,600)	(600)
Net cash used by investing activities	(40,382)	(24,281)
Financing activities
Payments of borrowing costs	(1,329)
Payment of dividends to shareholders	(15,215)	(13,935)
Repayments of intercompany loans	(9,158)
Repurchases of common stock		(12,180)
Borrowings of intercompany loans	44,590	15,540
Payments related to share-based compensation awards and other	(2,015)	(1,764)
Net cash used by financing activities	16,873	(12,339)
Net (decrease) increase in cash	(13,582)	(35,908)
Cash and cash equivalents at the beginning of period	42,208	56,216
Cash and cash equivalents at the end of period	28,626	20,308
Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	152	3,371
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(42)
Proceeds from disposal plant, equipment and timberlands, net	1,213	1,355
Repayments from intercompany loans	53,855	10,409
Advances of intercompany loans	(44,590)	(15,540)
Intercompany capital (contributed) returned	(300)
Net cash used by investing activities	10,136	(3,776)
Financing activities
Intercompany capital received (returned)	(10,500)
Net cash used by financing activities	(10,500)
Net (decrease) increase in cash	(212)	(405)
Cash and cash equivalents at the beginning of period	509	495
Cash and cash equivalents at the end of period	297	90
Non Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	60,444	17,297
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(21,907)	(20,668)
Proceeds from disposal plant, equipment and timberlands, net	384	9
Acquisitions, net of cash acquired	(224)
Net cash used by investing activities	(21,747)	(20,659)
Financing activities
Net proceeds from (repayments of) indebtedness	(3,387)	(18,128)
Repayments of intercompany loans	(46,162)	(10,409)
Intercompany capital received (returned)	300
Net cash used by financing activities	(49,249)	(28,537)
Effect of exchange rate on cash	(1,826)	(1,015)
Net (decrease) increase in cash	(12,378)	(32,914)
Cash and cash equivalents at the beginning of period	57,120	66,171
Cash and cash equivalents at the end of period	$ 44,742	$ 33,257

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Commitments, Contingencies and Legal Proceedings - Additional Information (Detail)			1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 14, 2014 USD ($)	Sep. 25, 2014	Jan. 31, 2008	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($) Operable_Unit	Sep. 30, 2014 USD ($)	May. 15, 2015	Dec. 31, 2014 USD ($)
Commitments Contingencies And Litigation [Line Items]
Number of operable units | Operable_Unit						5
Upper end estimate of total past and future response costs	$ 1,100,000,000
Uncertainty premium for future response costs	100,000,000
Cost of response incurred by government						$ 4,280,000
Initial minimum amount of NRD assessment						176,000,000
Initial maximum amount of NRD assessment						333,000,000
Revised minimum amount of NRD assessment						287,000,000
Revised maximum amount of NRD assessment						423,000,000
Cash payments towards completion of remediation activities	45,900,000					5,617,000	$ 39,000
Environmental loss contingencies	105,000,000
Other prepaid loss contingencies for earlier settlements	59,000,000
Increase in remediation activities reserve						10,000,000
Reserve for Environmental liabilities, current portion					$ 16,022,000	$ 16,022,000			$ 1,075,000
Maximum estimated percentage of discharge						27.00%
Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Remaining costs and damages amount						$ 33,000,000
2015 Work Plan [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated cost of work to satisfy our share of obligation					10,000,000	10,000,000
2016 Work Plan [Member]
Commitments Contingencies And Litigation [Line Items]
Increase in remediation activities reserve					10,000,000
Scenario, Forecast [Member]
Commitments Contingencies And Litigation [Line Items]
Cash payments towards completion of remediation activities				$ 4,500,000
NCR [Member]
Commitments Contingencies And Litigation [Line Items]
Percentage of apportion liability on cost								28.00%
NCR and GP [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Costs and damages amount						67,000,000
NCR and GP [Member] | 2016 Work Plan [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Annual estimated cost rate seek by Government					100,000,000	$ 100,000,000
Minimum [Member]
Commitments Contingencies And Litigation [Line Items]
Period over which estimated cost to be incurred						2 years
Minimum [Member] | Appvion [Member]
Commitments Contingencies And Litigation [Line Items]
Litigation claim amount						$ 170,000,000
Maximum [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated cost related to Fox River matter						$ 175,000,000
Period over which estimated cost to be incurred						3 years
OU2-5 [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated future cost of work yet to be done	500,000,000
Annual estimated cost rate seek by Government					70,000,000	$ 70,000,000
NCR costs and damages percentage		100.00%
OU2-5 [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
NCR costs and damages percentage			100.00%
OU2-5 [Member] | 2015 Work Plan [Member]
Commitments Contingencies And Litigation [Line Items]
Annual remediation cost rate seek by Government					100,000,000	100,000,000
OU2-5 [Member] | Scenario, Forecast [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated future cost of remediation				$ 10,000,000
Dredging Season [Member]
Commitments Contingencies And Litigation [Line Items]
Annual estimated cost rate seek by Government					$ 100,000,000	$ 100,000,000
OU1 [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated future cost of work yet to be done	$ 100,000,000

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Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2014 Annual Report on Form 10-K.

Accounting Estimates

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The FASB deferred the effective date to provide adequate time to effectively implement the new revenue standard. The new standard is now required to be adopted for fiscal years beginning after December 15, 2017. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

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Stock-Based Compensation - Additional Information (Detail) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Restricted Stock Units (RSU) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The vesting graded scale	The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting.
Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative performance targets	3 years
Grants under performance share awards	105,017	95,691
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of stock	3 years
Vesting term	10 years

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Gains on Dispositions of Plant, Equipment and Timberlands, Net - Additional Information (Detail) $ in Thousands		3 Months Ended			9 Months Ended
	Oct. 09, 2015 USD ($) a	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Property, Plant and Equipment [Line Items]
Proceeds from sale of timberlands					$ 3,181	$ 4,051
After-tax gain on timberlands			$ 123	$ 1,590	$ 2,888	$ 3,881
Timber Properties [Member] | Scenario, Forecast [Member]
Property, Plant and Equipment [Line Items]
After-tax gain on timberlands		$ 9,100
Timber Properties [Member] | Subsequent Event [Member]
Property, Plant and Equipment [Line Items]
Acres of timberlands | a	9,803
Proceeds from sale of timberlands	$ 17,000

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Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Income Statements, Captions [Line Items]
Net sales	$ 419,960	$ 465,092	$ 1,248,232	$ 1,366,154
Energy and related sales, net	1,153	860	3,936	6,912
Total revenues	421,113	465,952	1,252,168	1,373,066
Costs of products sold	361,205	385,439	1,107,319	1,196,076
Gross profit	59,908	80,513	144,849	176,990
Selling, general and administrative expenses	39,792	37,886	100,201	103,751
Gains on dispositions of plant, equipment and timberlands, net	(123)	(1,590)	(2,888)	(3,881)
Operating income (loss)	20,239	44,217	47,536	77,120
Other non-operating income (expense)
Interest expense	(4,317)	(4,671)	(13,177)	(14,245)
Interest income	90	30	232	143
Other, net	(220)	(167)	(192)	105
Total non-operating expense	(4,447)	(4,808)	(13,137)	(13,997)
Income (loss) before income taxes	15,792	39,409	34,399	63,123
Income tax provision (benefit)	2,288	9,037	4,122	13,434
Net income (loss)	13,504	30,372	30,277	49,689
Other comprehensive income (loss)	(3,002)	(29,577)	(21,200)	(23,586)
Comprehensive income (loss)	10,502	795	9,077	26,103
Adjustments/ Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	(19,437)	(17,524)	(59,655)	(55,211)
Total revenues	(19,437)	(17,524)	(59,655)	(55,211)
Costs of products sold	(19,437)	(17,524)	(59,655)	(55,211)
Other non-operating income (expense)
Interest expense	23,230	90,217	36,559	95,682
Interest income	(23,231)	(90,218)	(36,559)	(95,683)
Equity in earnings of subsidiaries	(4,808)	59,566	(60,654)	(18,555)
Other, net		5		5
Total non-operating expense	(4,809)	59,570	(60,654)	(18,551)
Income (loss) before income taxes	(4,809)	59,570	(60,654)	(18,551)
Net income (loss)	(4,809)	59,570	(60,654)	(18,551)
Other comprehensive income (loss)	13,706	8,919	9,451	7,485
Comprehensive income (loss)	8,897	68,489	(51,203)	(11,066)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	222,803	236,182	655,599	679,877
Energy and related sales, net	1,153	860	3,936	6,912
Total revenues	223,956	237,042	659,535	686,789
Costs of products sold	197,906	197,182	614,060	629,984
Gross profit	26,050	39,860	45,475	56,805
Selling, general and administrative expenses	24,764	19,352	57,607	53,699
Gains on dispositions of plant, equipment and timberlands, net	(4)	(1,590)	(1,526)	(2,565)
Operating income (loss)	1,290	22,098	(10,606)	5,671
Other non-operating income (expense)
Interest expense	(4,346)	(4,790)	(13,771)	(14,284)
Interest income	181	152	513	468
Equity in earnings of subsidiaries	14,173	14,935	48,775	56,784
Other, net	(961)	(383)	(2,423)	(1,603)
Total non-operating expense	9,047	9,914	33,094	41,365
Income (loss) before income taxes	10,337	32,012	22,488	47,036
Income tax provision (benefit)	(3,167)	1,640	(7,789)	(2,653)
Net income (loss)	13,504	30,372	30,277	49,689
Other comprehensive income (loss)	(3,002)	(29,577)	(21,200)	(23,586)
Comprehensive income (loss)	10,502	795	9,077	26,103
Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	19,005	17,735	61,822	56,138
Total revenues	19,005	17,735	61,822	56,138
Costs of products sold	17,299	17,019	58,554	53,491
Gross profit	1,706	716	3,268	2,647
Selling, general and administrative expenses	(8)	589	947	1,431
Gains on dispositions of plant, equipment and timberlands, net			(1,183)	(1,316)
Operating income (loss)	1,714	127	3,504	2,532
Other non-operating income (expense)
Interest income	23,129	89,951	36,226	95,165
Equity in earnings of subsidiaries	(9,366)	(74,502)	11,879	(38,229)
Other, net	23	9	(136)	30
Total non-operating expense	13,786	15,458	47,969	56,966
Income (loss) before income taxes	15,500	15,585	51,473	59,498
Income tax provision (benefit)	1,270	1,091	2,586	2,719
Net income (loss)	14,230	14,494	48,887	56,779
Other comprehensive income (loss)	(5,954)	(25,843)	(30,607)	(26,392)
Comprehensive income (loss)	8,276	(11,349)	18,280	30,387
Non Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	197,589	228,699	590,466	685,350
Total revenues	197,589	228,699	590,466	685,350
Costs of products sold	165,437	188,762	494,360	567,812
Gross profit	32,152	39,937	96,106	117,538
Selling, general and administrative expenses	15,036	17,946	41,647	48,622
Gains on dispositions of plant, equipment and timberlands, net	(119)		(179)
Operating income (loss)	17,235	21,991	54,638	68,916
Other non-operating income (expense)
Interest expense	(23,201)	(90,098)	(35,965)	(95,643)
Interest income	11	145	52	193
Other, net	718	202	2,367	1,673
Total non-operating expense	(22,472)	(89,751)	(33,546)	(93,777)
Income (loss) before income taxes	(5,237)	(67,760)	21,092	(24,861)
Income tax provision (benefit)	4,185	6,306	9,325	13,368
Net income (loss)	(9,422)	(74,066)	11,767	(38,229)
Other comprehensive income (loss)	(7,752)	16,924	21,156	18,907
Comprehensive income (loss)	$ (17,174)	$ (57,142)	$ 32,923	$ (19,322)

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Commitments, Contingencies and Legal Proceedings (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Reserves

Our reserve including ongoing monitoring obligations in OU1, our share of remediation of the downstream portions of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination is set forth below:

In thousands	2015			2014
Balance at January 1,	$	16,223		$	16,276
Payments		(5,617	)		(39	)
Accruals		10,000			—
Balance at September 30,	$	20,606		$	16,237

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Stock-Based Compensation - Compensation Expense for Periods (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 395	$ 854	$ 1,214	$ 1,874
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 671	$ 577	$ 1,940	$ 1,585

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Financial Derivatives and Hedging Activities - Outstanding Derivatives Used to Hedge Foreign Exchange Risks (Detail)	Sep. 30, 2015 EUR (€)	Sep. 30, 2015 USD ($)	Sep. 30, 2015 PHP	Sep. 30, 2015 CAD	Dec. 31, 2014 EUR (€)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 PHP	Dec. 31, 2014 CAD
Cash Flow Hedges [Member] | Euro / British Pound [Member] | Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount	€ 9,189,000				€ 4,592,000
Cash Flow Hedges [Member] | Euro / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | PHP			PHP 661,453,000				PHP 523,313,000
Cash Flow Hedges [Member] | British Pound / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | PHP			PHP 471,607,000				PHP 260,535,000
Cash Flow Hedges [Member] | Euro / U.S. Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		$ 47,751,000				$ 32,527,000
Cash Flow Hedges [Member] | U.S. Dollar / Canadian Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | CAD				CAD 19,205,000				CAD 10,036,000
Foreign Currency Hedges [Member] | Euro / British Pound [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount					2,000,000
Foreign Currency Hedges [Member] | Euro / U.S. Dollar [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		7,000,000
Foreign Currency Hedges [Member] | U.S Dollar / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $						4,000,000
Foreign Currency Hedges [Member] | U.S. Dollar / British Pound [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		$ 7,000,000				$ 9,000,000
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount	2,000,000
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount	€ 15,500,000				€ 3,000,000

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Asset Retirement Obligation - Schedule of Asset Retirement Obligation (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]
Balance at January 1,	$ 4,114	$ 5,032
Accretion	59	115
Payments	(2,384)	(767)
Downward revision	(1,000)
Gain	(359)	(128)
Balance at September 30,	$ 430	$ 4,252

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits	$ 12.0	$ 14.9
Unrecognized tax benefits that would impact effective tax rate	12.0
Gross unrecognized tax benefits net decrease	(2.9)
Minimum [Member]
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	0.0
Maximum [Member]
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	$ 1.7

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Acquisition

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisition

3. ACQUISITION

On October 1, 2014, we completed the acquisition of all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for $8.2 million. SPO has annual sales of approximately $33 million. SPO, located near Frankfurt, Germany, primarily produces highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags. SPO is operated as part of the Composite Fibers business unit, and complements other technical specialties.

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Asset Retirement Obligation - Schedule of Consolidated Balance Sheets where Asset Retirement Obligations are Recorded (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Asset retirement obligations	$ 430	$ 4,114	$ 4,252	$ 5,032
Other Current Liabilities [Member]
Asset retirement obligations	$ 430	2,855
Other Long-Term Liabilities [Member]
Asset retirement obligations		$ 1,259

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Earnings Per Share - Details of Basic and Diluted Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 13,504	$ 30,372	$ 30,277	$ 49,689
Weighted average common shares outstanding used in basic EPS	43,457	43,049	43,363	43,233
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs	408	792	586	878
Weighted average common shares outstanding and common share equivalents used in diluted EPS	43,865	43,841	43,949	44,111
Earnings per share
Basic	$ 0.31	$ 0.71	$ 0.70	$ 1.15
Diluted	$ 0.31	$ 0.69	$ 0.69	$ 1.13

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2014		N/A
State		2010 - 2014		N/A
Canada (1)		2010 - 2014		N/A
Germany (1)		2012 - 2014		2007 - 2011
France		2013 - 2014		2011 - 2012
United Kingdom		2013 - 2014		N/A
Philippines		2012, 2014		2013

(1) – includes provincial or similar local jurisdictions, as applicable

Summary of Information Related to Interest and Penalties on Uncertain Tax Positions

The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2015		2014
Interest expense	$	—	$	0.1
Penalties		—		—
	September 30 2015		December 31 2014
Accrued interest payable	$	0.6	$	0.6

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Losses)

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2015 and 2014.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2015	$	(58,857	)	$	2,621		$	(114,076	)	$	(2,756	)	$	(173,068	)
Other comprehensive income before reclassifications (net of tax)		(3,262	)		(1,381	)		—			—			(4,643	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(1,442	)		3,090			(7	)		1,641
Net current period other comprehensive income (loss)		(3,262	)		(2,823	)		3,090			(7	)		(3,002	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(27,895	)		793			—			—			(27,102	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(3,351	)		9,274			(21	)		5,902
Net current period other comprehensive income (loss)		(27,895	)	$	(2,558	)		9,274			(21	)		(21,200	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015			2014
Description													Line Item in Statements of Income
Cash flow hedges (Note 15)
(Gains) losses on cash flow hedges	$	(1,972	)	$	137		$	(4,595	)	$	1,227		Costs of products sold
Tax (benefit) expense		530			(41	)		1,244			(345	)	Income tax provision
Net of tax		(1,442	)		96			(3,351	)		882
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		571			621			1,713			1,864		Costs of products sold
		189			206			568			618		Selling, general and administrative
Actuarial losses		3,144			2,215			9,432			6,644		Costs of products sold
		1,082			762			3,247			2,287		Selling, general and administrative
		4,986			3,804			14,960			11,413
Tax benefit		(1,896	)		(1,441	)		(5,686	)		(4,325	)	Income tax provision
Net of tax		3,090			2,363			9,274			7,088
Amortization of deferred benefit other plan items
Prior service costs		(58	)		(59	)		(173	)		(178	)	Costs of products sold
		(12	)		(13	)		(37	)		(38	)	Selling, general and administrative
Actuarial losses		48			106			142			319		Costs of products sold
		10			23			31			68		Selling, general and administrative
		(12	)		57			(37	)		171
Tax benefit		5			(22	)		16			(66	)	Income tax provision
Net of tax		(7	)		35			(21	)		105
Total reclassifications, net of tax	$	1,641		$	2,494		$	5,902		$	8,075

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Inventories - Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 59,985	$ 61,266
In-process and finished	117,980	117,580
Supplies	70,121	69,859
Total	$ 248,086	$ 248,705

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Earnings Per Share - Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Potential common shares	696	282	696	282

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]

Summary of Stock Option Activity

The following table summarizes RSU and PSA activity during periods indicated:

Units	2015			2014
Balance at January 1,		888,942			1,001,814
Granted		160,514			173,206
Forfeited		(87,567	)		(45,355	)
Shares delivered		(286,857	)		(239,394	)
Balance at September 30,		675,032			890,271

Compensation Expense for Stock Option Activity

The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	395	$	854
Nine months ended		1,214		1,874

Stock Only Stock Appreciation Rights (SOSARs) [Member]

Summary of Stock Option Activity

The following table sets forth information related to outstanding SOSARS.

	2015					2014
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,864,707		$	16.20		1,977,133		$	13.91
Granted		423,590			24.62		281,881			29.22
Exercised		(70,347	)		14.12		(26,245	)		15.67
Canceled / forfeited		(17,559	)		25.24		(29,842	)		19.36
Outstanding at September 30,		2,200,391		$	17.82		2,202,927		$	15.77
SOSAR Grants
Weighted average grant date fair value per share	$	7.46				$	9.81
Aggregate grant date fair value (in thousands)	$	3,134				$	2,764
Black-Scholes assumptions
Dividend yield		1.94	%				1.48	%
Risk free rate of return		1.64	%				1.74	%
Volatility		36.38	%				37.59	%
Expected life		6 yrs					6 yrs

Compensation Expense for Stock Option Activity

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	671	$	577
Nine months ended		1,940		1,585

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Retirement Plans and Other Post-Retirement Benefits (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans

The following tables provide information with respect to the net periodic costs of our pension and post retirement medical benefit plans.

	Three months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	2,850		$	2,602
Interest cost		5,868			6,216
Expected return on plan assets		(11,498	)		(10,969	)
Amortization of prior service cost		760			827
Amortization of unrecognized loss		4,226			2,977
Net periodic benefit cost	$	2,206		$	1,653
Other Benefits
Service cost	$	358		$	614
Interest cost		499			597
Amortization of prior service cost		(70	)		(72	)
Amortization of unrecognized loss		58			129
Net periodic benefit cost	$	845		$	1,268

	Nine months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	8,546		$	7,810
Interest cost		17,606			18,696
Expected return on plan assets		(34,495	)		(32,907	)
Amortization of prior service cost		2,281			2,482
Amortization of unrecognized loss		12,679			8,931
Net periodic benefit cost	$	6,617		$	5,012
Other Benefits
Service cost	$	1,074		$	1,844
Interest cost		1,498			1,793
Amortization of prior service cost		(210	)		(216	)
Amortization of unrecognized loss		173			387
Net periodic benefit cost	$	2,535		$	3,808

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Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Accounting Policies

2. ACCOUNTING POLICIES

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2014 Annual Report on Form 10-K.

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The FASB deferred the effective date to provide adequate time to effectively implement the new revenue standard. The new standard is now required to be adopted for fiscal years beginning after December 15, 2017. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventories, Net of Reserves

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2015		2014
Raw materials	$	59,985	$	61,266
In-process and finished		117,980		117,580
Supplies		70,121		69,859
Total	$	248,086	$	248,705

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Acquisition - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Oct. 01, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Revenue		$ 421,113	$ 465,952	$ 1,252,168	$ 1,373,066
Spezialpapierfabrik Oberschmitten GmbH [Member]
Business Acquisition [Line Items]
Date of acquisition				Oct. 01, 2014
Payment made for acquisition	$ 8,200
Revenue	$ 33,000

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Stock-Based Compensation - Schedule of Information Related to Outstanding SOSARS (Detail) - Stock Only Stock Appreciation Rights (SOSARs) [Member] - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Outstanding	1,864,707	1,977,133
Granted	423,590	281,881
Exercised	(70,347)	(26,245)
Canceled / forfeited	(17,559)	(29,842)
Ending Balance, Outstanding	2,200,391	2,202,927
Beginning Balance, Weighted Average Exercise Price, Outstanding	$ 16.20	$ 13.91
Weighted Average Exercise Price, Granted	24.62	29.22
Weighted Average Exercise Price, Exercised	14.12	15.67
Weighted Average Exercise Price, Canceled / forfeited	25.24	19.36
Ending Balance, Weighted Average Exercise Price, Outstanding	17.82	15.77
Weighted average grant date fair value per share	$ 7.46	$ 9.81
Aggregate grant date fair value	$ 3,134	$ 2,764
Black-Scholes assumptions
Dividend yield	1.94%	1.48%
Risk free rate of return	1.64%	1.74%
Volatility	36.38%	37.59%
Expected life	6 years	6 years

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Commitments, Contingencies and Legal Proceedings - Schedule of Reserves (Detail) - USD ($) $ in Thousands		9 Months Ended
	Oct. 14, 2014	Sep. 30, 2015	Sep. 30, 2014
Environmental Remediation Obligations [Abstract]
Beginning balance		$ 16,223	$ 16,276
Payments	$ (45,900)	(5,617)	(39)
Accruals		10,000
Ending balance		$ 20,606	$ 16,237

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Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales	$ 419,960	$ 465,092	$ 1,248,232	$ 1,366,154
Energy and related sales, net	1,153	860	3,936	6,912
Total revenues	421,113	465,952	1,252,168	1,373,066
Costs of products sold	361,205	385,439	1,107,319	1,196,076
Gross profit	59,908	80,513	144,849	176,990
Selling, general and administrative expenses	39,792	37,886	100,201	103,751
Gains on dispositions of plant, equipment and timberlands, net	(123)	(1,590)	(2,888)	(3,881)
Operating income	20,239	44,217	47,536	77,120
Non-operating income (expense)
Interest expense	(4,317)	(4,671)	(13,177)	(14,245)
Interest income	90	30	232	143
Other, net	(220)	(167)	(192)	105
Total non-operating expense	(4,447)	(4,808)	(13,137)	(13,997)
Income before income taxes	15,792	39,409	34,399	63,123
Income tax provision	2,288	9,037	4,122	13,434
Net income	$ 13,504	$ 30,372	$ 30,277	$ 49,689
Earnings per share
Basic	$ 0.31	$ 0.71	$ 0.70	$ 1.15
Diluted	0.31	0.69	0.69	1.13
Cash dividends declared per common share	$ 0.12	$ 0.11	$ 0.36	$ 0.33
Weighted average shares outstanding
Basic	43,457	43,049	43,363	43,233
Diluted	43,865	43,841	43,949	44,111

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Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (173,068)	$ (69,366)	$ (154,870)	$ (75,357)
Other comprehensive income before reclassifications (net of tax)	(4,643)	(32,071)	(27,102)	(31,661)
Amounts reclassified from accumulated other comprehensive income (net of tax)	1,641	2,494	5,902	8,075
Other comprehensive loss	(3,002)	(29,577)	(21,200)	(23,586)
Ending Balance	(176,070)	(98,943)	(176,070)	(98,943)
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(58,857)	15,336	(34,224)	15,141
Other comprehensive income before reclassifications (net of tax)	(3,262)	(33,450)	(27,895)	(33,255)
Other comprehensive loss	(3,262)	(33,450)	(27,895)	(33,255)
Ending Balance	(62,119)	(18,114)	(62,119)	(18,114)
Unrealized Gain (Loss) on Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	2,621	60	2,356	(941)
Other comprehensive income before reclassifications (net of tax)	(1,381)	1,379	793	1,594
Amounts reclassified from accumulated other comprehensive income (net of tax)	(1,442)	96	(3,351)	882
Other comprehensive loss	(2,823)	1,475	(2,558)	2,476
Ending Balance	(202)	1,535	(202)	1,535
Change in Pensions [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(114,076)	(84,822)	(120,260)	(89,547)
Amounts reclassified from accumulated other comprehensive income (net of tax)	3,090	2,363	9,274	7,088
Other comprehensive loss	3,090	2,363	9,274	7,088
Ending Balance	(110,986)	(82,459)	(110,986)	(82,459)
Change in Other Postretirement Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,756)	60	(2,742)	(10)
Amounts reclassified from accumulated other comprehensive income (net of tax)	(7)	35	(21)	105
Other comprehensive loss	(7)	35	(21)	105
Ending Balance	$ (2,763)	$ 95	$ (2,763)	$ 95

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net income	$ 30,277	$ 49,689
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization	47,423	53,547
Amortization of debt issue costs	893	985
Pension expense, net of unfunded benefits paid	5,541	4,575
Charge for impairment of intangible asset	1,200	3,262
Charge for environmental matter	10,000
Deferred income tax benefit	(2,043)	(4,434)
Gains on dispositions of plant, equipment and timberlands, net	(2,888)	(3,881)
Share-based compensation	5,502	5,811
Change in operating assets and liabilities
Accounts receivable	(21,572)	(35,528)
Inventories	(5,714)	(19,982)
Prepaid and other current assets	420	(2,367)
Accounts payable	5,561	(25,576)
Accruals and other current liabilities	797	(6,214)
Environmental matters	(5,617)	(39)
Other	743	1,532
Net cash provided by operating activities	70,523	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(74,280)	(47,036)
Proceeds from disposals of plant, equipment and timberlands, net	3,181	4,051
Acquisition, net of cash acquired	(224)
Other	(1,600)	(600)
Net cash used by investing activities	(72,923)	(43,585)
Financing activities
Net repayments of revolving credit facility		(30,720)
Payments of borrowing costs	(1,329)
Repayment of term loans	(3,387)
Proceeds from term loans		12,592
Repurchases of common stock		(12,180)
Payments of dividends	(15,215)	(13,935)
Payments related to share-based compensation awards and other	(2,015)	(1,764)
Net cash used by financing activities	(21,946)	(46,007)
Effect of exchange rate changes on cash	(1,826)	(1,015)
Net decrease in cash and cash equivalents	(26,172)	(69,227)
Cash and cash equivalents at the beginning of period	99,837	122,882
Cash and cash equivalents at the end of period	73,665	53,655
Cash paid for:
Interest, net of amounts capitalized	8,943	9,959
Income taxes, net	$ 14,566	$ 19,928

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Long-Term Debt - Additional Information (Detail)		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($) Installment DebtAgreements	Mar. 12, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 04, 2014 EUR (€)	Sep. 04, 2014 USD ($)	Apr. 11, 2013 EUR (€)	Apr. 11, 2013 USD ($)	Oct. 03, 2012 USD ($)
Debt Instrument [Line Items]
Margin over Euro-rate	1.00%	1.00%
Leverage ratio	220.00%
Other Assets [Member]
Debt Instrument [Line Items]
Aggregated unamortized deferred debt issuance costs	$ 5,600,000	$ 5,600,000
Maximum [Member]
Debt Instrument [Line Items]
Leverage ratio		350.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 400,000,000
Debt instrument maturity date		Mar. 12, 2020
Revolving Credit Facility [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Federal fund rate spread		0.50%
Revolving Credit Facility, Due Nov. 2016 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Federal fund rate spread		0.125%
Revolving Credit Facility, Due Nov. 2016 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Federal fund rate spread		1.00%
Revolving Credit Facility, Due Nov. 2016 [Member] | Daily Euro Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Federal fund rate spread		1.125%
Revolving Credit Facility, Due Nov. 2016 [Member] | Daily Euro Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Federal fund rate spread		2.00%
Letters of Credit [Member]
Debt Instrument [Line Items]
Letters of credit issued	5,300,000	$ 5,300,000		$ 5,300,000
Letters of credit outstanding	$ 0	$ 0
5.375% Notes [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Oct. 15, 2020
Aggregate principal amount									$ 250,000,000
Percentage of aggregate principal amount of outstanding	5.375%	5.375%							5.375%
Frequency of interest payable		Semiannually
Debt instrument redemption		The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a "make-whole" premium as specified in the Indenture.
IKB Loan [Member]
Debt Instrument [Line Items]
Aggregate principal amount							€ 42,700,000	$ 57,600,000
Percentage of aggregate principal amount of outstanding	2.05%	2.05%
Number of separate loan agreement | DebtAgreements		2
Number of installments | Installment		32
Installments beginning date		Jun. 30, 2015
Installments ending date		Mar. 31, 2023
2014 IKB Loan [Member]
Debt Instrument [Line Items]
Aggregate principal amount					€ 10,000,000	$ 12,600,000
Percentage of aggregate principal amount of outstanding	2.40%	2.40%
Frequency of interest payable		Quarterly
Number of installments | Installment		27
Installments beginning date		Sep. 30, 2015
Installments ending date		Jun. 30, 2022

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Carrying Value and Fair Value of Long-Term Debt

The following table sets forth carrying value and fair value of long-term debt:

	September 30, 2015				December 31, 2014
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	83,464	$	83,464	$	90,555	$	90,555
Fixed-rate bonds		250,000		253,908		250,000		255,470
2.40% Term loan		10,803		10,729		12,155		12,626
2.05% Term loan		44,848		43,611		51,902		53,106
Total	$	389,115	$	391,712	$	404,612	$	411,757

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Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of fixed rate debt	$ 381,535	$ 398,878
5.375% Notes, Due Oct. 2020 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of fixed rate debt	$ 250,000	$ 250,000
Interest rate on debt	5.375%	5.375%

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Commitments, Contingencies and Legal Proceedings

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Proceedings

16. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River—Neenah, Wisconsin

Background. We have significant uncertainties associated with environmental claims arising out of the presence of polychlorinated biphenyls (“PCBs”) in sediments in the lower Fox River, on which our former Neenah facility was located, and in the Bay of Green Bay Wisconsin (collectively, the “Site”). Since the early 1990s, the United States, the State of Wisconsin and two Indian tribes (collectively, the “Governments”) have pursued a cleanup of a 39-mile stretch of river from Little Lake Butte des Morts into Green Bay and natural resource damages (“NRDs”).

The United States notified the following parties (“PRPs”) of their potential responsibility to implement response actions, to pay response costs, and to compensate for NRDs at this site: Appvion, Inc. (formerly known as Appleton Papers Inc.), CBC Coating, Inc. (formerly known as Riverside Paper Corporation), Georgia-Pacific Consumer Products, L.P. (“Georgia-Pacific”, formerly known as Fort James Operating Company), Menasha Corporation, NCR Corporation (“NCR”), U.S. Paper Mills Corp., and WTM I Company. As described below, many other parties have been joined in litigation. After giving effect to settlements reached with the Governments, the remaining PRPs exposed to continuing obligations to implement the remainder of the cleanup consist of us, Georgia-Pacific and NCR.

The Site has been subject to certain studies and the parties conducted certain demonstration projects and completed certain interim cleanups. The permanent cleanup, known as a “remedial action” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), consists of sediment dredging, installation of engineered caps, and placement of sand covers in various areas in the bed of the river.

The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

We and WTM I Company implemented the remedial action in OU1 under a consent decree with the Governments; Menasha Corporation made a financial contribution to that work. That project began in 2004 and the work is complete other than on-going monitoring and maintenance.

For OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions from 2007 through 2014 were funded primarily by NCR and its indemnitors, including Appvion, Inc. In late June 2015, we began placing sand covers and certain other covering and capping in OU4b as a response to the Government’s demands. We expect the cost of the remediation we will perform in 2015 to be approximately $10 million. Georgia Pacific and NCR are funding work in 2015 pursuant to a proposed consent decree. Work is scheduled to continue in OU2-5 through 2017; although work may be required into 2018 to complete the project, with monitoring and maintenance to follow.

Although we have not contributed significant funds towards remedial actions other than in OU1 until 2015, as more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $500 million for OU2-5 prior to the 2015 remediation season.

In previous years, the Governments indicated their expectation was to have work in OU2-5 completed at a rate estimated to cost at least $70 million annually in 2015 and 2016, and at lower rates thereafter. However, the Governments have revised their estimate per year and the cost for the 2015 dredging season was increased to be approximately $100 million.

As the result of a partial settlement, Georgia-Pacific has no obligation to pay for work upstream of a line near Georgia-Pacific’s Green Bay West Mill located in OU4. We believe substantially all in-water work upstream of this line had been completed as of the end of the 2014 dredging season.

Allocation Litigation. In January 2008, NCR and Appvion brought an action in the federal district court in Green Bay to allocate among all parties responsible for this Site all of the costs incurred by the Governments, all of the costs incurred by the parties, and all of the NRDs owed to the Natural Resource Trustees. We have previously referred to this case as the “Whiting Litigation.” After several summary judgment rulings and a trial, the trial court entered judgment in the Whiting Litigation, allocating to NCR 100% of the costs of (a) the OU2-5 cleanup, (b) NRDs, (c) past and future costs incurred by the Governments in OU2-5, and (d) past and future costs incurred by any of the other parties net of an appropriate equitable adjustment for insurance recoveries. As to Glatfelter, NCR was judged liable to us for $4.28 million and any future costs or damages we may incur. NCR was held not responsible for costs incurred in OU1.

All parties appealed the Whiting Litigation judgment to the United States Court of Appeals for the Seventh Circuit. On September 25, 2014, that court affirmed, holding that if knowledge and fault were the only equitable factors governing allocation of costs and NRDs at the Site, NCR would owe 100% of all costs and damages in OU2-5, but would not have a share of costs in OU1 — which is upstream of the outfall of the facilities for which NCR is responsible — solely as an “arranger for disposal” of PCB-containing waste paper by recycling it at our mill. However, the court of appeals vacated the judgment and remanded the case for the district court’s further consideration of whether any other equitable factors might cause the district court to alter its allocation.

We contend the district court should, after further consideration, reinstate the 100%, or some similar very high, allocation to NCR of all the costs, and should hold that we should bear no share or a very small share. However, NCR has taken a contrary position and has sought contributions from others for future work until all allocation issues are resolved.

In addition, we take the position that the “single site” theory on which the courts held us responsible for cleaning up parts of the Site far downstream of our former mill should, if applied to NCR, make it liable for costs incurred in OU1. The district court agreed with us in an order dated March 3, 2015. On March 31, 2015, NCR sought review of that order by the court of appeals which review was denied on May 1, 2015. However, on May 15, 2015, the district court issued an opinion in the Government Action, described below, containing a sentence suggesting that NCR would not be liable for OU1. Also as described below, on October 19, 2015, the district court reconsidered its May 15 opinion and ruled against NCR generally, although with no specific reference to OU1.

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party, then Appvion may have a right to recover those costs under CERCLA. We and Appvion disagree over the proper treatment of amounts that Appvion incurred while a PRP that were also subject to a cost-sharing agreement with NCR; we contend Appvion may not recover costs it was contractually obligated to incur, that it has no other costs, and if it did, we would have a right to contribution of any recovery against NCR and others. However, Appvion takes a contrary position and claims in excess of $170 million.

The district court has established a schedule for the Whiting Litigation under which it would hold a trial in July 2016 on remaining issues.

Enforcement Litigation. In October 2010, the United States and the State of Wisconsin brought an action (“Government Action”) in the federal district court in Green Bay against us and 13 other defendants seeking (a) to recover all of their unreimbursed past costs, (b) to obtain a declaration of joint and several liability for all of their future costs, (c) to recover NRDs, and (d) to obtain a declaration of liability of all of the respondents on the UAO to perform the remedy in OU2-5 as required by the UAO and a mandatory permanent injunction to the same effect. The last of these claims was tried in 2012, and in May 2013, the district court enjoined us, NCR, WTM I, and Menasha Corp. to perform the work under the UAO. As the result of partial settlements, U.S. Paper Mills Corp. and Georgia-Pacific agreed to joint and several liability for some of the work. Appvion was held not liable for this Site under CERCLA.

All other potentially responsible parties, including the United States and the State of Wisconsin, have settled with the Governments. As a result, the remaining defendants consist of us, NCR, and Georgia-Pacific.

We appealed the injunction to the United States Court of Appeals for the Seventh Circuit, as did NCR, WTM I, and Menasha. On September 25, 2014, the court of appeals decided our and NCR’s appeals; the others’ appeals were not decided because they entered into a settlement. The court of appeals vacated the injunction as to us and NCR. However, it affirmed the district court’s ruling that we are liable for response actions in OU2-5 and for complying with the UAO. The court of appeals vacated and remanded the district court’s decision that NCR had failed to prove that liability for OU2-5 could be apportioned, directing the lower court to consider issues it had not considered initially.

On remand, the district court issued an opinion on May 15, 2015, (“May 15 Decision”) in which it held that the existing trial record allowed it to apportion NCR’s liability for OU4 at 28% of the total OU4 costs. The district court did not apportion liability for OU2 or OU3. The court’s opinion contains a sentence stating that NCR would not be liable for OU1 because the facilities formerly owned by NCR discharged downstream. We moved for reconsideration of the May 15 Decision, as did the United States, Georgia-Pacific, and certain other parties. On October 19, 2015, the district court reconsidered its May 15 Decision and held that NCR had not shown a reasonable basis for apportionment of its liability for the site.

We do not know the Governments’ intentions concerning further litigation of the Government Action, nor do we know the schedule for any further proceedings. We cannot now predict when it will be resolved.

Interim Funding of Ongoing Work. As described above, the court of appeals vacated the allocation judgment in the Whiting Litigation on September 25, 2014, but neither court has since replaced that allocation with any other. The 2007 UAO requires the PRPs to submit annual remediation work plans. For 2015, the EPA approved the 2015 Work Plan for $100 million of remediation activities. NCR, GP, and we were not able to reach agreement on a division of the costs of that work on an interim basis, subject to reallocation in the Whiting Litigation. NCR and GP have entered into a proposed consent decree with the United States under which they will fund certain work estimated to cost approximately $67 million in 2015, and they will not be responsible for completing the remainder of the work in 2015, estimated to cost approximately $33 million. The United States has not moved to enter that consent decree. Through the issuance of the 2015 Work Plan the EPA assigned to us those remaining tasks. Under the proposed consent decree, all parties would remain jointly and severally liable for work in the 2015 Work Plan not completed in 2015, except for a small amount of work upstream of the area for which GP is responsible. We contracted for remediation work in OU4, estimated to total approximately $10 million, an amount less than the amount assigned to us in the 2015 Work Plan.

We anticipate that $10 million of work in 2015 would satisfy our share of the obligation if NCR and GP perform the work assigned to them in the 2015 Work Plan. The United States disagrees. We cannot predict the outcome of these disagreements or any possible resulting litigation.

With respect to the 2015 Work Plan, we disagree with the United States over i) whether the work purportedly assigned to us could be completed in the specified timeframe; ii) whether the EPA has the legal authority to assign remedial tasks as it purports to have done under the terms of the UAO; iii) whether we have available to us avenues for relief from the purported obligation to perform the assigned work in 2015; iv) whether we have any other responses of which we may avail our self; v) whether an arbitrary per capita allocation of one-third can be imposed on us in light of the multiple rulings by the courts since 2009 that appear inconsistent with a per capita allocation; and vi) whether the 2015 Work Plan affects the Company’s ultimate liability for this Site.

In September 2015, the U.S. Department of Justice notified us that we, along with Georgia - Pacific, should be prepared to participate in the remediation activities during 2016. In addition, we understand NCR has submitted a draft 2016 Work Plan. Although we do not have an estimate of the costs of completing the work NCR proposes be completed in 2016, we expect the cost could approximate $100 million. The draft does not assign work to particular parties.

Because we may not be able to obtain an agreement with the other parties or a ruling in litigation defining our obligation to contribute to work in 2016 prior to the time that work would have to be implemented, it is conceivable that we may have to choose an amount of work that we believe satisfies any obligation we may have to complete work in 2016, which selection we will have to defend after the fact. It is also conceivable we may be in the same position with respect to work in OU2-5 beyond the 2016 season. Although we are unable to determine with any degree of certainty the amount we may be required to complete or fund, those amounts could be significant. Any amounts we pay or any other party pays in the interim may be subject to reallocation when the Whiting Litigation is resolved.

NRDs. The Governments’ NRD assessment documents originally claimed we are jointly and severally responsible for NRDs with a value between $176 million and $333 million. The Governments claimed this range should be inflated to current dollars and then certain unreimbursed past assessment costs should be added, so the range of their claim was $287 million to $423 million in 2009.

However, on October 14, 2014, the Governments represented to the district court that if certain settlements providing $45.9 million toward compensation of NRDs were approved, the total NRD recovery would amount to $105 million. The Governments stated they would consider those recoveries adequate and they would withdraw their claims against us and NCR for additional compensation of NRDs. On October 19, 2015, the district court granted the Governments leave to withdraw their NRD claims against us without prejudice to re-filing them at some later time. Some of the settling parties, including all of the settling parties contributing the $45.9 million, have waived their rights to seek contribution from us of the settlement amounts. We previously paid a portion of the earlier settlements that the Governments value at $59 million and that we contend may be somewhat more.

Reserves for the Site. Our reserve including ongoing monitoring obligations in OU1, our share of remediation of the downstream portions of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination is set forth below:

In thousands	2015			2014
Balance at January 1,	$	16,223		$	16,276
Payments		(5,617	)		(39	)
Accruals		10,000			—
Balance at September 30,	$	20,606		$	16,237

The payments set forth above represent cash paid towards completion of remediation activities in connection with the 2015 Work Plan, of which approximately $4.5 million will be paid during the fourth quarter of 2015. In addition, in the third quarter of 2015 we increased our reserve by $10.0 million to reflect our estimate of costs to be incurred related to the 2016 Work Plan. The charge is recorded in the accompanying condensed consolidated financial statements under the caption “Selling, general and administrative expenses.” If we are unsuccessful in the allocation litigation or in the enforcement litigation described above, we may be required to record additional charges and such charges could be significant.

Of our total reserve for the Fox River, $16.0 million is recorded in the accompanying September 30, 2015 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.”

As described above, the appellate court vacated and remanded for reconsideration the district court’s ruling in the Whiting Litigation that NCR would bear 100% of costs for the downstream portion of the Site. We continue to believe we will not be allocated a significant share of liability in any final equitable allocation of the response costs for OU2-5 or for NRDs. The accompanying condensed consolidated financial statements do not include reserves for any future defense costs, which could be significant, related to our involvement at the Site.

In setting our reserve for the Site, we have assessed our legal defenses, including our successful defenses to the allegations made in the Whiting Litigation and the original determination in the Whiting Litigation that NCR owes us “full contribution” for response costs and for NRDs that we may become obligated to pay except in OU1. We assume we will not bear the entire cost of remediation or damages to the exclusion of other known parties at the Site, who are also jointly and severally liable. The existence and ability of other parties to participate has also been taken into account in setting our reserve, and setting our reserve is generally based on our evaluation of recent publicly available financial information on certain of the responsible parties and any known insurance, indemnity or cost sharing agreements between responsible parties and third parties. In addition, we have considered the magnitude, nature, location and circumstances associated with the various discharges of PCBs to the river and the relationship of those discharges to identified contamination. We will continue to evaluate our exposure and the level of our reserves associated with the Site.

Other Information. The Governments have published studies estimating the amount of PCBs discharged by each identified potentially responsible party to the lower Fox River and Green Bay. These reports estimate our Neenah mill’s share of the mass of PCBs discharged to be as high as 27%. The district court has found the discharge mass estimates used in these studies not to be accurate. We believe the Neenah mill’s absolute and relative contribution of PCB mass is significantly lower than the estimates set forth in these studies. The district court in the Government Action has found that the Neenah mill discharged an unknown amount of PCBs.

Based upon the rulings in the Whiting Litigation and the Government Action, neither of which endorsed an equitable allocation in proportion to the mass of PCBs discharged, we continue to believe an allocation in proportion to mass of PCBs discharged would not constitute an equitable allocation of the potential liability for the contamination at the Fox River. We contend other factors, such as a party’s role in causing costs, the location of discharge, and the location of contamination must be considered in order for the allocation to be equitable.

Range of Reasonably Possible Outcomes. Based on our analysis of all available information, including but not limited to decisions of the courts, official documents such as records of decision, as well as discussions with legal counsel and cost estimates for work to be performed at the Site, and substantially dependent on the resolution of the allocation issues discussed above, we believe it is reasonably possible that our costs associated with the Fox River matter could exceed the aggregate amounts accrued for the Fox River matter by amounts ranging from insignificant to $175 million. We believe the likelihood of an outcome in the upper end of the monetary range is less than other possible outcomes within the range and the possibility of an outcome in excess of the upper end of the monetary range is remote.

We expect remediation costs to be incurred primarily over the next two to three years, although we are unable to determine with any degree of certainty the amount we may be required to fund for interim remediation work. To the extent we provide such interim funding, we contend that NCR or another party would be required to reimburse us once the final allocation is determined.

Summary. Our current assessment is we will be able to manage this environmental matter without a long-term, material adverse impact on the Company. This matter could, however, at any particular time or for any particular year or years, have a material adverse effect on our consolidated financial position, liquidity and/or results of operations or could result in a default under our debt covenants. Moreover, there can be no assurance our reserves will be adequate to provide for future obligations related to this matter, or our share of costs and/or damages will not exceed our available resources, or those obligations will not have a long-term, material adverse effect on our consolidated financial position, liquidity or results of operations. Should a court grant the United States or the State of Wisconsin relief requiring us individually either to perform directly or to contribute significant amounts towards remedial action downstream of Little Lake Butte des Morts those developments could have a material adverse effect on our consolidated financial position, liquidity and results of operations and might result in a default under our loan covenants.

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Financial Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Values of Derivative Instruments

The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	September 30 2015		December 31 2014		September 30 2015		December 31 2014
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	693	$	3,106	$	1,676	$	394
Not designated as hedging:
Forward foreign currency exchange contracts	$	91.0	$	70	$	0	$	161

Income or (Loss) from Derivative Instruments Recognized in Results of Operations

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015		2014
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	1,972		$	(137	)	$	4,595	$	(1,227	)
Ineffective portion – other – net		(184	)		81			104		181
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	621		$	595		$	1,028	$	1,792

Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2015			2014
Balance at January 1,	$	3,282		$	(1,296	)
Deferred gains on cash flow hedges		1,100			2,223
Reclassified to earnings		(4,595	)		1,227
Balance at September 30,	$	(213	)	$	2,154

Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
Euro / British Pound		9,189		4,592
Sell/Buy - buy notional
Euro / Philippine Peso		661,453		523,313
British Pound / Philippine Peso		471,607		260,535
Euro / U.S. Dollar		47,751		32,527
U.S. Dollar / Canadian Dollar		19,205		10,036

Not Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
U.S. Dollar / Euro		—		4,000
U.S. Dollar / British Pound		7,000		9,000
Euro / British Pound		—		2,000
British Pound / Euro		2,000		—
Sell/Buy - buy notional
Euro / U.S. Dollar		7,000		—
British Pound / Euro		15,500		3,000

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Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

18. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Our 5.375% Notes issued by P. H. Glatfelter Company (the “Parent”) are fully and unconditionally guaranteed, on a joint and several basis, by certain of our 100%-owned domestic subsidiaries, PHG Tea Leaves, Inc., Mollanvick, Inc., Glatfelter Composite Fibers N. A., Inc. (“CFNA”), Glatfelter Advanced Materials N.A., Inc. (“GAMNA”), and Glatfelter Holdings, LLC. The guarantees are subject to certain customary release provisions including i) the designation of such subsidiary as an unrestricted or excluded subsidiary; (ii) in connection with any sale or disposition of the capital stock of the subsidiary guarantor; and (iii) upon our exercise of our legal defeasance option or our covenant defeasance option, all of which are more fully described in the Indenture dated as of October 3, 2012 and the First Supplemental Indenture dated as of October 27, 2015, among us, the Guarantors and US Bank National Association, as Trustee, relating to the 5.375% Notes.

The following presents the condensed consolidating statements of income, including comprehensive income for the three months and nine months ended September 30, 2015 and 2014, the condensed consolidating balance sheets as of September 30, 2015 and December 31, 2014 and the condensed consolidating cash flows for the nine months ended September 30, 2015 and 2014. These financial statements reflect the Parent, the guarantor subsidiaries (on a combined basis), the non-guarantor subsidiaries (on a combined basis) and elimination entries necessary to combine such entities on a consolidated basis. The condensed consolidating financial statements set forth below include the addition of CFNA and GAMNA as guarantors effective September 30, 2015 and all prior periods have been restated to retroactively effect this change. In addition, our presentation of the Guarantors’ statement of income for the three months and nine months ended September 30, 2014 has been restated to correctly apply the equity method of accounting to reflect the Guarantors’ equity interests in certain Non Guarantors. Such changes are reflected under the caption “Equity in earnings of subsidiaries” in the accompanying condensed consolidating statements of income. The correction had no impact on any financial information of the Parent Company, the Non Guarantors or on the condensed consolidating balance sheet or the statement of cash flows.

Condensed Consolidating Statement of Income for the

three months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	222,803		$	19,005		$	197,589		$	(19,437	)	$	419,960
Energy and related sales, net		1,153			—			—			—			1,153
Total revenues		223,956			19,005			197,589			(19,437	)		421,113
Costs of products sold		197,906			17,299			165,437			(19,437	)		361,205
Gross profit		26,050			1,706			32,152			—			59,908
Selling, general and administrative expenses		24,764			(8	)		15,036			—			39,792
Gains on dispositions of plant, equipment and timberlands, net		(4	)		—			(119	)		—			(123	)
Operating income		1,290			1,714			17,235			—			20,239
Other non-operating income (expense)
Interest expense		(4,346	)		—			(23,201	)		23,230			(4,317	)
Interest income		181			23,129			11			(23,231	)		90
Equity in earnings of subsidiaries		14,173			(9,366	)		—			(4,808	)		—
Other, net		(961	)		23			718			—			(220	)
Total other non-operating income (expense)		9,047			13,786			(22,472	)		(4,809	)		(4,447	)
Income (loss) before income taxes		10,337			15,500			(5,237	)		(4,809	)		15,792
Income tax provision (benefit)		(3,167	)		1,270			4,185			—			2,288
Net income (loss)		13,504			14,230			(9,422	)		(4,809	)		13,504
Other comprehensive income (loss)		(3,002	)		(5,954	)		(7,752	)		13,706			(3,002	)
Comprehensive income (loss)	$	10,502		$	8,276		$	(17,174	)	$	8,897		$	10,502

Condensed Consolidating Statement of Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	17,735		$	228,699		$	(17,524	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			17,735			228,699			(17,524	)		465,952
Costs of products sold		197,182			17,019			188,762			(17,524	)		385,439
Gross profit		39,860			716			39,937			—			80,513
Selling, general and administrative expenses		19,352			589			17,946			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income		22,098			127			21,991			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Equity in earnings of subsidiaries		14,935			(74,502	)		—			59,566			—
Other, net		(383	)		9			202			5			(167	)
Total other non-operating income (expense)		9,914			15,458			(89,751	)		59,570			(4,808	)
Income (loss) before income taxes		32,012			15,585			(67,760	)		59,570			39,409
Income tax provision (benefit)		1,640			1,091			6,306			—			9,037
Net income (loss)		30,372			14,494			(74,066	)		59,570			30,372
Other comprehensive income (loss)		(29,577	)		(25,843	)		16,924			8,919			(29,577	)
Comprehensive income (loss)	$	795		$	(11,349	)	$	(57,142	)	$	68,489		$	795

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	655,599		$	61,822		$	590,466		$	(59,655	)	$	1,248,232
Energy and related sales, net		3,936			—			—			—			3,936
Total revenues		659,535			61,822			590,466			(59,655	)		1,252,168
Costs of products sold		614,060			58,554			494,360			(59,655	)		1,107,319
Gross profit		45,475			3,268			96,106			—			144,849
Selling, general and administrative expenses		57,607			947			41,647			—			100,201
Gains on dispositions of plant, equipment and timberlands, net		(1,526	)		(1,183	)		(179	)		—			(2,888	)
Operating income (loss)		(10,606	)		3,504			54,638			—			47,536
Other non-operating income (expense)
Interest expense		(13,771	)		—			(35,965	)		36,559			(13,177	)
Interest income		513			36,226			52			(36,559	)		232
Equity in earnings of subsidiaries		48,775			11,879			—			(60,654	)		—
Other, net		(2,423	)		(136	)		2,367			—			(192	)
Total other non-operating income (expense)		33,094			47,969			(33,546	)		(60,654	)		(13,137	)
Income before income taxes		22,488			51,473			21,092			(60,654	)		34,399
Income tax provision (benefit)		(7,789	)		2,586			9,325			—			4,122
Net income		30,277			48,887			11,767			(60,654	)		30,277
Other comprehensive income (loss)		(21,200	)		(30,607	)		21,156			9,451			(21,200	)
Comprehensive income	$	9,077		$	18,280		$	32,923		$	(51,203	)	$	9,077

Condensed Consolidating Statement of Income for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	56,138		$	685,350		$	(55,211	)	$	1,366,154
Energy and related sales, net		6,912			—			—			—			6,912
Total revenues		686,789			56,138			685,350			(55,211	)		1,373,066
Costs of products sold		629,984			53,491			567,812			(55,211	)		1,196,076
Gross profit		56,805			2,647			117,538			—			176,990
Selling, general and administrative expenses		53,699			1,431			48,622			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		5,671			2,532			68,916			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Equity in earnings of subsidiaries		56,784			(38,229	)		—			(18,555	)		—
Other, net		(1,603	)		30			1,673			5			105
Total other non-operating income (expense)		41,365			56,966			(93,777	)		(18,551	)		(13,997	)
Income (loss) before income taxes		47,036			59,498			(24,861	)		(18,551	)		63,123
Income tax provision (benefit)		(2,653	)		2,719			13,368			—			13,434
Net income (loss)		49,689			56,779			(38,229	)		(18,551	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	30,387		$	(19,322	)	$	(11,066	)	$	26,103

Condensed Consolidating Balance Sheet as of

September 30, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	28,626	$	297		$	44,742	$	—		$	73,665
Other current assets		232,486		260,054			261,431		(268,192	)		485,779
Plant, equipment and timberlands, net		283,712		1,005			412,607		—			697,324
Investments in subsidiaries		734,303		504,783			—		(1,239,086	)		—
Other assets		132,732		—			148,732		(485	)		280,979
Total assets	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747
Liabilities and Shareholders’ Equity
Current liabilities	$	368,220	$	31,720		$	163,984	$	(271,574	)	$	292,350
Long-term debt		250,000		—			131,535		—			381,535
Deferred income taxes		48,226		(505	)		50,110		3,376			101,207
Other long-term liabilities		99,297		33			17,209		—			116,539
Total liabilities		765,743		31,248			362,838		(268,198	)		891,631
Shareholders’ equity		646,116		734,891			504,674		(1,239,565	)		646,116
Total liabilities and shareholders’ equity	$	1,411,859	$	766,139		$	867,512	$	(1,507,763	)	$	1,537,747

Condensed Consolidating Balance Sheet as of

December 31, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	42,208	$	509		$	57,120		$	—		$	99,837
Other current assets		216,940		439,910			254,911			(436,976	)		474,785
Plant, equipment and timberlands, net		255,255		996			441,357			—			697,608
Investments in subsidiaries		826,084		401,540			—			(1,227,624	)		—
Other assets		121,125		—			186,128			(17,979	)		289,274
Total assets	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504
Liabilities and Shareholders’ Equity
Current liabilities		403,662		13,143			307,184			(444,258	)		279,731
Long-term debt		250,000		—			721,457			(572,579	)		398,878
Deferred income taxes		46,483		(506	)		70,328			(12,289	)		104,016
Other long-term liabilities		112,358		24			11,608			5,780			129,770
Total liabilities		812,503		12,661			1,110,577			(1,023,346	)		912,395
Shareholders’ equity		649,109		830,294			(171,061	)		(659,233	)		649,109
Total liabilities and shareholders’ equity	$	1,461,612	$	842,955		$	939,516		$	(1,682,579	)	$	1,561,504

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	9,927		$	152		$	60,444		$	—		$	70,523
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(52,331	)		(42	)		(21,907	)		—			(74,280	)
Proceeds from disposal plant, equipment and timberlands, net		1,584			1,213			384			—			3,181
Repayments from intercompany loans		1,465			53,855			—			(55,320	)		—
Advances of intercompany loans		—			(44,590	)		—			44,590			—
Intercompany capital (contributed) returned		10,500			(300	)		—			(10,200	)		—
Acquisitions, net of cash acquired		—			—			(224	)		—			(224	)
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(40,382	)		10,136			(21,747	)		(20,930	)		(72,923	)
Financing activities
Net repayments of indebtedness		—			—			(3,387	)		—			(3,387	)
Payments of borrowing costs		(1,329	)		—			—			—			(1,329	)
Payment of dividends to shareholders		(15,215	)		—			—			—			(15,215	)
Repayments of intercompany loans		(9,158	)		—			(46,162	)		55,320			—
Borrowings of intercompany loans		44,590			—			—			(44,590	)		—
Intercompany capital received (returned)		—			(10,500	)		300			10,200			—
Payments related to share-based compensation awards and other		(2,015	)		—			—			—			(2,015	)
Total financing activities		16,873			(10,500	)		(49,249	)		20,930			(21,946	)
Effect of exchange rate on cash		—			—			(1,826	)		—			(1,826	)
Net decrease in cash		(13,582	)		(212	)		(12,378	)		—			(26,172	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	28,626		$	297		$	44,742		$	—		$	73,665

Condensed Consolidating Statement of Cash Flows for the

nine months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,371		$	17,297		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net proceeds from indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Payments related to share-based compensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(405	)		(32,914	)		—			(69,227	)
Cash at the beginning of period		56,216			495			66,171			—			122,882
Cash at the end of period	$	20,308		$	90		$	33,257		$	—		$	53,655

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Financial Derivatives and Hedging Activities - Fair Values of Derivative Instruments (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 693,000	$ 3,106,000
Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	1,676,000	394,000
Not Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	91,000	70,000
Not Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 0	$ 161,000

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Organization

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1. ORGANIZATION

P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, PA, U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in Russia and China. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 13,504	$ 30,372	$ 30,277	$ 49,689
Foreign currency translation adjustments	(3,262)	(33,450)	(27,895)	(33,255)
Net change in:
Deferred gains (losses) on cash flow hedges, net of taxes of $1,045, $(593), $938, and $(974), respectively	(2,823)	1,475	(2,558)	2,476
Unrecognized retirement obligations, net of taxes of $(1,895), $(1,463), $(5,675), and $(4,391), respectively	3,083	2,398	9,253	7,193
Other comprehensive loss	(3,002)	(29,577)	(21,200)	(23,586)
Comprehensive income	$ 10,502	$ 795	$ 9,077	$ 26,103

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Inventories

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventories

11. INVENTORIES

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2015		2014
Raw materials	$	59,985	$	61,266
In-process and finished		117,980		117,580
Supplies		70,121		69,859
Total	$	248,086	$	248,705

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	GLT
Entity Registrant Name	GLATFELTER P H CO
Entity Central Index Key	0000041719
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		43,406,546

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Long-Term Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

12. LONG-TERM DEBT

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2015			2014
Revolving credit facility, due Mar. 2020	$	83,464		$	—
Revolving credit facility, due Nov. 2016		—			90,555
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,803			12,155
2.05% Term Loan, due Mar. 2023		44,848			51,902
Total long-term debt		389,115			404,612
Less current portion		(7,580	)		(5,734	)
Long-term debt, net of current portion	$	381,535		$	398,878

On March 12, 2015, we amended our revolving credit agreement with a consortium of banks (the “Revolving Credit Facility”) which increased the amount available for borrowing to $400 million, extended the maturity of the facility to March 12, 2020, and instituted a revised interest rate pricing grid.

For all US dollar denominated borrowings under the Revolving Credit Facility, the borrowing rate is, at our option, either, (a) the bank’s base rate which is equal to the greater of i) the prime rate; ii) the federal funds rate plus 50 basis points; or iii) the daily Euro-rate plus 100 basis points plus an applicable spread over either i), ii) or iii) ranging from 12.5 basis points to 100 basis points based on the Company’s leverage ratio and its corporate credit ratings determined by Standard & Poor’s Rating Services and Moody’s Investor Service, Inc. (the “Corporate Credit Rating”); or (b) the daily Euro-rate plus an applicable margin ranging from 112.5 basis points to 200 basis points based on the Company’s leverage ratio and the Corporate Credit Rating. For non-US dollar denominated borrowings, interest is based on (b) above.

The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); and ii) a consolidated EBITDA to interest expense ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of September 30, 2015, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.2x which is within the limits set forth in our credit agreement. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the credit facility.

On October 3, 2012, we completed a private placement offering of $250.0 million aggregate principal amount of 5.375% Senior Notes due 2020 (the “5.375% Notes”). The 5.375% Notes are fully and unconditionally guaranteed, jointly and severally, by PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC (the “Guarantors”). Interest on the 5.375% Notes is payable semiannually in arrears on April 15 and October 15.

The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a “make-whole” premium as specified in the Indenture. These Notes and the guarantees of the notes are senior obligations of the Company and the Guarantors, respectively, rank equally in right of payment with future senior indebtedness of the Company and the Guarantors and will mature on October 15, 2020.

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of September 30, 2015, we met all of the requirements of our debt covenants.

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, has two separate agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”). Pursuant to the first agreement, dated April 11, 2013, Gernsbach borrowed €42.7 million (or $57.6 million) aggregate principal amount (the “2013 IKB Loan”). The 2013 IKB Loan is repayable in 32 quarterly installments beginning on June 30, 2015 and ending on March 31, 2023 and bears interest at a rate of 2.05% per annum.

Pursuant to the second agreement with IKB dated September 4, 2014, Gernsbach borrowed €10.0 million (or $12.6 million) aggregate principal amount (the “2014 IKB Loan”). The 2014 IKB Loan is repayable in 27 quarterly installments beginning on September 30, 2015 and ending on June 30, 2022 and bears interest at a rate of 2.40% per annum. Interest on the IKB Loan or portion thereof is payable quarterly.

The IKB loans provide for representations, warranties and covenants customary for financings of these types. The financial covenants contained in each of the IKB loans, which relate to the minimum ratio of consolidated EBITDA to consolidated interest expense and the maximum ratio of consolidated total net debt to consolidated adjusted EBITDA, will be calculated by reference to our Revolving Credit Agreement.

Aggregated unamortized deferred debt issuance costs incurred in connection with all of our outstanding debt totaled $5.6 million at September 30, 2015 and are reported under the caption “Other assets” in the accompanying condensed consolidated balance sheets. The deferred costs are being amortized on a straight line basis over the life of the underlying instruments.

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries, including each of the IKB loans. All such obligations are recorded in these condensed consolidated financial statements.

As of September 30, 2015 and December 31, 2014, we had $5.3 million of letters of credit issued to us by certain financial institutions. The letters of credit, which reduce amounts available under our revolving credit facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Taxes on deferred losses on cash flow hedges	$ 1,045	$ (593)	$ 938	$ (974)
Taxes on unrecognized retirement obligations	$ (1,895)	$ (1,463)	$ (5,675)	$ (4,391)

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2015 and 2014.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2015	$	(58,857	)	$	2,621		$	(114,076	)	$	(2,756	)	$	(173,068	)
Other comprehensive income before reclassifications (net of tax)		(3,262	)		(1,381	)		—			—			(4,643	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(1,442	)		3,090			(7	)		1,641
Net current period other comprehensive income (loss)		(3,262	)		(2,823	)		3,090			(7	)		(3,002	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(27,895	)		793			—			—			(27,102	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(3,351	)		9,274			(21	)		5,902
Net current period other comprehensive income (loss)		(27,895	)	$	(2,558	)		9,274			(21	)		(21,200	)
Balance at September 30, 2015	$	(62,119	)	$	(202	)	$	(110,986	)	$	(2,763	)	$	(176,070	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015			2014
Description													Line Item in Statements of Income
Cash flow hedges (Note 15)
(Gains) losses on cash flow hedges	$	(1,972	)	$	137		$	(4,595	)	$	1,227		Costs of products sold
Tax (benefit) expense		530			(41	)		1,244			(345	)	Income tax provision
Net of tax		(1,442	)		96			(3,351	)		882
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		571			621			1,713			1,864		Costs of products sold
		189			206			568			618		Selling, general and administrative
Actuarial losses		3,144			2,215			9,432			6,644		Costs of products sold
		1,082			762			3,247			2,287		Selling, general and administrative
		4,986			3,804			14,960			11,413
Tax benefit		(1,896	)		(1,441	)		(5,686	)		(4,325	)	Income tax provision
Net of tax		3,090			2,363			9,274			7,088
Amortization of deferred benefit other plan items
Prior service costs		(58	)		(59	)		(173	)		(178	)	Costs of products sold
		(12	)		(13	)		(37	)		(38	)	Selling, general and administrative
Actuarial losses		48			106			142			319		Costs of products sold
		10			23			31			68		Selling, general and administrative
		(12	)		57			(37	)		171
Tax benefit		5			(22	)		16			(66	)	Income tax provision
Net of tax		(7	)		35			(21	)		105
Total reclassifications, net of tax	$	1,641		$	2,494		$	5,902		$	8,075

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

5. EARNINGS PER SHARE

The following table sets forth the details of basic and diluted earnings per share (“EPS”):

	Three months ended September 30
In thousands, except per share	2015		2014
Net income	$	13,504	$	30,372
Weighted average common shares outstanding used in basic EPS		43,457		43,049
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		408		792
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,865		43,841
Earnings per share
Basic	$	0.31	$	0.71
Diluted		0.31		0.69

	Nine months ended September 30
In thousands, except per share	2015		2014
Net income	$	30,277	$	49,689
Weighted average common shares outstanding used in basic EPS		43,363		43,233
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		586		878
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,949		44,111
Earnings per share
Basic	$	0.70	$	1.15
Diluted		0.69		1.13

The following table sets forth potential common shares outstanding for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive:

	September 30
In thousands	2015		2014
Three months ended		696		282
Nine months ended		696		282

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Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

17. SEGMENT INFORMATION

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	133.9	$	154.5	$	63.2	$	74.4	$	222.8	$	236.2	$	—		$	—		$	420.0		$	465.1
Energy and related sales, net		—		—		—		—		1.2		0.9		—			—			1.2			0.9
Total revenue		133.9		154.5		63.2		74.4		224.0		237.1		—			—			421.1			466.0
Cost of products sold		108.4		123.7		54.6		64.7		196.1		195.2		2.1			1.8			361.2			385.4
Gross profit (loss)		25.5		30.8		8.6		9.7		27.9		41.9		(2.1	)		(1.8	)		59.9			80.5
SG&A		11.5		12.6		1.8		2.2		10.4		14.1		16.2			9.0			39.8			37.9
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(0.1	)		(1.6	)		(0.1	)		(1.6	)
Total operating income (loss)		14.0		18.1		6.8		7.5		17.5		27.8		(18.2	)		(9.2	)		20.2			44.2
Non-operating expense		—		—		—		—		—		—		(4.4	)		(4.8	)		(4.4	)		(4.8	)
Income (loss) before income taxes	$	14.0	$	18.1	$	6.8	$	7.5	$	17.5	$	27.8	$	(22.6	)	$	(14.0	)	$	15.8		$	39.4
Supplementary Data
Net tons sold (thousands)		38.9		40.1		24.8		26.3		203.6		208.4		—			—			267.2			274.7
Depreciation, depletion and amortization	$	6.7	$	7.4	$	2.2	$	2.3	$	6.4	$	6.5	$	0.5		$	0.5		$	15.8		$	16.7
Capital expenditures		5.8		5.4		1.8		1.3		22.1		9.7		—			0.5			29.7			16.9
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	409.6	$	470.1	$	183.0	$	216.2	$	655.6	$	679.9	$	—		$	—		$	1,248.2		$	1,366.2
Energy and related sales, net		—		—		—		—		3.9		6.9		—			—			3.9			6.9
Total revenue		409.6		470.1		183.0		216.2		659.5		686.8		—			—			1,252.2			1,373.1
Cost of products sold		329.8		376.7		162.0		189.9		608.4		624.3		7.1			5.2			1,107.3			1,196.1
Gross profit (loss)		79.8		93.4		21.0		26.3		51.1		62.5		(7.1	)		(5.2	)		144.8			177.0
SG&A		34.4		38.8		5.8		6.8		34.2		39.5		25.7			18.7			100.2			103.8
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(2.9	)		(3.9	)		(2.9	)		(3.9	)
Total operating income (loss)		45.4		54.6		15.2		19.5		16.9		23.0		(29.9	)		(20.0	)		47.5			77.1
Non-operating expense		—		—		—		—		—		—		(13.1	)		(14.0	)		(13.1	)		(14.0	)
Income (loss) before income taxes	$	45.4	$	54.6	$	15.2	$	19.5	$	16.9	$	23.0	$	(43.0	)	$	(34.0	)	$	34.4		$	63.1
Supplementary Data
Net tons sold (thousands)		116.2		119.5		71.4		76.0		593.6		601.3		—			—			781.2			796.8
Depreciation, depletion and amortization	$	20.1	$	22.7	$	6.5	$	6.9	$	19.3	$	22.6	$	1.5		$	1.3		$	47.4		$	53.5
Capital expenditures		17.3		16.7		4.6		4.1		51.0		24.5		1.4			1.7			74.3			47.0

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

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Asset Retirement Obligation

9 Months Ended

Sep. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation

13. ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first nine months of 2015 and 2014:

In thousands	2015			2014
Balance at January 1,	$	4,114		$	5,032
Accretion		59			115
Payments		(2,384	)		(767	)
Downward revision		(1,000	)		—
Gain		(359	)		(128	)
Balance at September 30,	$	430		$	4,252

During the second quarter of 2015 we recorded a downward revision to our estimated cost of closing the lagoons. The revision was recorded as an adjustment to both the carrying value of the associated property, equipment and timberlands as well as the asset retirement obligation.

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2015		2014
Other current liabilities	$	430	$	2,855
Other long-term liabilities		—		1,259
Total	$	430	$	4,114

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Retirement Plans and Other Post-Retirement Benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Plans and Other Post-Retirement Benefits

9. RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

The following tables provide information with respect to the net periodic costs of our pension and post retirement medical benefit plans.

	Three months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	2,850		$	2,602
Interest cost		5,868			6,216
Expected return on plan assets		(11,498	)		(10,969	)
Amortization of prior service cost		760			827
Amortization of unrecognized loss		4,226			2,977
Net periodic benefit cost	$	2,206		$	1,653
Other Benefits
Service cost	$	358		$	614
Interest cost		499			597
Amortization of prior service cost		(70	)		(72	)
Amortization of unrecognized loss		58			129
Net periodic benefit cost	$	845		$	1,268

	Nine months ended September 30
In thousands	2015			2014
Pension Benefits
Service cost	$	8,546		$	7,810
Interest cost		17,606			18,696
Expected return on plan assets		(34,495	)		(32,907	)
Amortization of prior service cost		2,281			2,482
Amortization of unrecognized loss		12,679			8,931
Net periodic benefit cost	$	6,617		$	5,012
Other Benefits
Service cost	$	1,074		$	1,844
Interest cost		1,498			1,793
Amortization of prior service cost		(210	)		(216	)
Amortization of unrecognized loss		173			387
Net periodic benefit cost	$	2,535		$	3,808

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Asset Retirement Obligation - Additional Information (Detail) $ in Millions	Dec. 31, 2008 USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Fair value of asset retirement obligations related to the legal requirements	$ 11.5

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

7. INCOME TAXES

Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

As of September 30, 2015 and December 31, 2014, we had $12.0 million and $14.9 million of gross unrecognized tax benefits. As of September 30, 2015, if such benefits were to be recognized, approximately $12.0 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate. Gross unrecognized tax benefits reflected a net decrease of $2.9 million during the nine months ended September 30, 2015, primarily due to the completion of federal and state examinations during the second quarter.

We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities.

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2014		N/A
State		2010 - 2014		N/A
Canada (1)		2010 - 2014		N/A
Germany (1)		2012 - 2014		2007 - 2011
France		2013 - 2014		2011 - 2012
United Kingdom		2013 - 2014		N/A
Philippines		2012, 2014		2013

(1) – includes provincial or similar local jurisdictions, as applicable

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. Substantially all of this range relates to tax positions taken in the U.S. and Germany.

We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2015		2014
Interest expense	$	—	$	0.1
Penalties		—		—
	September 30 2015		December 31 2014
Accrued interest payable	$	0.6	$	0.6

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights.

Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. PSAs are issued annually to members of management and each respective grant cliff vests each December 31 of the third year following the grant, assuming the achievement of predetermined, three-year cumulative performance targets. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For both RSUs and PSAs, the grant date fair value of the awards, which is equal to the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury.

The following table summarizes RSU and PSA activity during periods indicated:

Units	2015			2014
Balance at January 1,		888,942			1,001,814
Granted		160,514			173,206
Forfeited		(87,567	)		(45,355	)
Shares delivered		(286,857	)		(239,394	)
Balance at September 30,		675,032			890,271

The amount granted in 2015 and 2014 includes PSAs of 105,017 and 95,691 respectively, exclusive of reinvested dividends.

The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	395	$	854
Nine months ended		1,214		1,874

Stock Only Stock Appreciation Rights (“SOSARs”) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. The SOSARs vest ratably over a three year period and have a term of ten years.

The following table sets forth information related to outstanding SOSARS.

	2015					2014
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,864,707		$	16.20		1,977,133		$	13.91
Granted		423,590			24.62		281,881			29.22
Exercised		(70,347	)		14.12		(26,245	)		15.67
Canceled / forfeited		(17,559	)		25.24		(29,842	)		19.36
Outstanding at September 30,		2,200,391		$	17.82		2,202,927		$	15.77
SOSAR Grants
Weighted average grant date fair value per share	$	7.46				$	9.81
Aggregate grant date fair value (in thousands)	$	3,134				$	2,764
Black-Scholes assumptions
Dividend yield		1.94	%				1.48	%
Risk free rate of return		1.64	%				1.74	%
Volatility		36.38	%				37.59	%
Expected life		6 yrs					6 yrs

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2015		2014
Three months ended	$	671	$	577
Nine months ended		1,940		1,585

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Asset Impairment Charge

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Asset Impairment Charge

10. ASSET IMPAIRMENT CHARGE

During the third quarters of 2015 and 2014, in connection with our annual test of potential impairment of indefinite lived intangible assets, we recorded $1.2 million and $3.3 million, respectively, of non-cash asset impairment charges related to a trade name intangible asset acquired in connection with our Composite Fibers business unit’s 2013 Dresden acquisition. The charges were due to changes in the estimated fair value of the trade name, primarily driven by lower forecasted revenues associated with the business, an increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political and economic instability. The charges are recorded in the accompanying condensed consolidated statements of income under the caption “Selling, general and administrative expenses.” The fair value of the asset was estimated using a discounted cash flow model, Level 3 fair value classification.

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Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Parenthetical) (Detail)	Sep. 30, 2015	Dec. 31, 2014
2.40% Term Loan, Due Jun. 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of aggregate principal amount of outstanding	2.40%	2.40%
2.05% Term Loan, Due Mar. 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of aggregate principal amount of outstanding	2.05%	2.05%

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Financial Derivatives and Hedging Activities - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015
Designated as Hedging [Member] | Minimum [Member]
Derivative [Line Items]
Period of production costs expected to be incurred	12 months
Maturities of foreign currency derivative contracts	12 months
Designated as Hedging [Member] | Maximum [Member]
Derivative [Line Items]
Period of production costs expected to be incurred	18 months
Maturities of foreign currency derivative contracts	18 months
Not Designated as Hedging [Member]
Derivative [Line Items]
Maturities of foreign currency derivative contracts	1 month
Fair Value, Measurements [Member]
Derivative [Line Items]
Accumulated other comprehensive income realization period	12 months

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Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 389,115	$ 404,612
Fair Value	391,712	411,757
2.40% Term Loan, Due Jun. 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	10,803	12,155
Fair Value	10,729	12,626
2.05% Term Loan, Due Mar. 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	44,848	51,902
Fair Value	43,611	53,106
Revolving Credit Facility Due Mar. 2020 And Nov. 2016 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	83,464	90,555
Fair Value	83,464	90,555
5.375% Notes, Due Oct. 2020 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	250,000	250,000
Fair Value	$ 253,908	$ 255,470

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Asset Retirement Obligation (Tables)

9 Months Ended

Sep. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Asset Retirement Obligation

Following is a summary of activity recorded during the first nine months of 2015 and 2014:

In thousands	2015			2014
Balance at January 1,	$	4,114		$	5,032
Accretion		59			115
Payments		(2,384	)		(767	)
Downward revision		(1,000	)		—
Gain		(359	)		(128	)
Balance at September 30,	$	430		$	4,252

Schedule of Consolidated Balance Sheets where Asset Retirement Obligations are Recorded

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2015		2014
Other current liabilities	$	430	$	2,855
Other long-term liabilities		—		1,259
Total	$	430	$	4,114

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Stock-Based Compensation - Summary of RSU and PSA Activity (Detail) - Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member] - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	888,942	1,001,814
Granted	160,514	173,206
Forfeited	(87,567)	(45,355)
Shares delivered	(286,857)	(239,394)
Ending Balance	675,032	890,271

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Financial Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives and Hedging Activities

15. FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.”

Derivatives Designated as Hedging Instruments—Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs expected to be incurred over a twelve month to eighteen month period of time. Currency forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases or certain production costs with exposure to changes in foreign currency exchange rates. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk is deferred as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets and is subsequently reclassified into costs of products sold in the period that inventory produced using the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly to earnings and reflected in the accompanying condensed consolidated statements of income as non-operating income (expense) under the caption “Other, net.”

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
Euro / British Pound		9,189		4,592
Sell/Buy - buy notional
Euro / Philippine Peso		661,453		523,313
British Pound / Philippine Peso		471,607		260,535
Euro / U.S. Dollar		47,751		32,527
U.S. Dollar / Canadian Dollar		19,205		10,036

These contracts have maturities of between twelve months and eighteen months from the date originally entered into.

Derivatives Not Designated as Hedging Instruments—Foreign Currency Hedges We also enter into forward foreign exchange contracts to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities. None of these contracts are designated as hedges for financial accounting purposes and, accordingly, changes in value of the foreign exchange forward contracts and in the offsetting underlying on-balance-sheet transactions are reflected in the accompanying condensed consolidated statements of income under the caption “Other, net.”

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

In thousands	September 30 2015		December 31 2014
Derivative
Sell/Buy - sell notional
U.S. Dollar / Euro		—		4,000
U.S. Dollar / British Pound		7,000		9,000
Euro / British Pound		—		2,000
British Pound / Euro		2,000		—
Sell/Buy - buy notional
Euro / U.S. Dollar		7,000		—
British Pound / Euro		15,500		3,000

These contracts have maturities of one month from the date originally entered into.

Fair Value Measurements The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	September 30 2015		December 31 2014		September 30 2015		December 31 2014
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	693	$	3,106	$	1,676	$	394
Not designated as hedging:
Forward foreign currency exchange contracts	$	91.0	$	70	$	0	$	161

The amounts set forth in the table above represent the net asset or liability giving effect to rights of offset with each counterparty. The effect of netting the amounts presented above did not have a material effect on our consolidated financial position.

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015		2014
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	1,972		$	(137	)	$	4,595	$	(1,227	)
Ineffective portion – other – net		(184	)		81			104		181
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	621		$	595		$	1,028	$	1,792

The impact of activity not designated as hedging was substantially offset by the remeasurement of the underlying on-balance sheet item.

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

The fair values of the foreign exchange forward contracts are considered to be Level 2. Foreign currency forward contracts are valued using foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Prepaid expenses and other current assets” and the value of contracts in a loss position is recorded under the caption “Other current liabilities.”

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2015			2014
Balance at January 1,	$	3,282		$	(1,296	)
Deferred gains on cash flow hedges		1,100			2,223
Reclassified to earnings		(4,595	)		1,227
Balance at September 30,	$	(213	)	$	2,154

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be realized in results of operations within the next twelve months and the amount ultimately recognized will vary depending on actual market rates.

Credit risk related to derivative activity arises in the event the counterparty fails to meet its obligations to us. This exposure is generally limited to the amounts, if any, by which the counterparty’s obligations exceed our obligation to them. Our policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings.

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Gains on Dispositions of Plant, Equipment and Timberlands, Net (Tables)

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Summary for Sale of Timberlands and Other Assets

During the first nine months of 2015 and 2014, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2015
Timberlands		1,398	$	2,794	$	2,704
Other		n/a		387		184
Total			$	3,181	$	2,888
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881

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Income Taxes - Summary of Information Related to Interest and Penalties on Uncertain Tax Positions (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Interest expense		$ 0.1
Penalties	$ 0.0	$ 0.0
Accrued interest payable	$ 0.6		$ 0.6

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Gains on Dispositions of Plant, Equipment and Timberlands, Net - Summary for Sale of Timberlands and Other Assets (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) a	Sep. 30, 2014 USD ($) a
Property, Plant and Equipment [Line Items]
Proceeds			$ 3,181	$ 4,051
Gain	$ 123	$ 1,590	$ 2,888	$ 3,881
Timberlands [Member]
Property, Plant and Equipment [Line Items]
Acres | a			1,398	2,030
Proceeds			$ 2,794	$ 4,041
Gain			2,704	3,876
Other [Member]
Property, Plant and Equipment [Line Items]
Proceeds			387	10
Gain			$ 184	$ 5

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 73,665	$ 99,837
Accounts receivable, net	177,917	163,760
Inventories	248,086	248,705
Prepaid expenses and other current assets	59,776	62,320
Total current assets	559,444	574,622
Plant, equipment and timberlands, net	697,324	697,608
Goodwill	78,126	84,137
Intangible assets	66,212	77,098
Other assets	136,641	128,039
Total assets	1,537,747	1,561,504
Liabilities and Shareholders' Equity
Current portion of long-term debt	7,580	5,734
Accounts payable	151,751	157,070
Dividends payable	5,228	4,775
Environmental liabilities	16,022	1,075
Other current liabilities	111,769	111,077
Total current liabilities	292,350	279,731
Long-term debt	381,535	398,878
Deferred income taxes	101,207	104,016
Other long-term liabilities	116,539	129,770
Total liabilities	$ 891,631	$ 912,395
Commitments and contingencies
Shareholders' equity
Common stock	$ 544	$ 544
Capital in excess of par value	52,852	54,342
Retained earnings	934,077	919,468
Accumulated other comprehensive loss	(176,070)	(154,870)
Shareholders' equity before treasury stock	811,403	819,484
Less cost of common stock in treasury	(165,287)	(170,375)
Total shareholders' equity	646,116	649,109
Total liabilities and shareholders' equity	$ 1,537,747	$ 1,561,504

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Gains on Dispositions of Plant, Equipment and Timberlands, Net

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Gains on Dispositions of Plant, Equipment and Timberlands, Net

4. GAINS ON DISPOSITIONS OF PLANT, EQUIPMENT AND TIMBERLANDS, NET

During the first nine months of 2015 and 2014, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2015
Timberlands		1,398	$	2,794	$	2,704
Other		n/a		387		184
Total			$	3,181	$	2,888
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881

On October 9, 2015, we completed the sale of 9,803 acres of timberlands for $17.0 million in cash. We expect to realize an after-tax gain on the transaction of approximately $9.1 million in the fourth quarter of 2015.

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Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Revolving Credit Facility, Due Mar. 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Mar. 31, 2020
Revolving Credit Facility, Due Nov. 2016 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Nov. 30, 2016
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Oct. 31, 2020
Interest rate on debt	5.375%	5.375%
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Jun. 30, 2022
Interest rate on debt	2.40%	2.40%
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Mar. 31, 2023
Interest rate on debt	2.05%	2.05%

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Financial Derivatives and Hedging Activities - Income or (Loss) from Derivative Instruments Recognized in Results of Operations (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Costs of Products Sold [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion of derivative instruments, gain (loss)	$ 1,972	$ (137)	$ 4,595	$ (1,227)
Other - Net [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Ineffective portion of derivative instruments, gain (loss)	(184)	81	104	181
Other - Net [Member] | Not Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss)	$ 621	$ 595	$ 1,028	$ 1,792

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Details of Basic and Diluted Earnings Per Share (EPS)

The following table sets forth the details of basic and diluted earnings per share (“EPS”):

	Three months ended September 30
In thousands, except per share	2015		2014
Net income	$	13,504	$	30,372
Weighted average common shares outstanding used in basic EPS		43,457		43,049
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		408		792
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,865		43,841
Earnings per share
Basic	$	0.31	$	0.71
Diluted		0.31		0.69

	Nine months ended September 30
In thousands, except per share	2015		2014
Net income	$	30,277	$	49,689
Weighted average common shares outstanding used in basic EPS		43,363		43,233
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		586		878
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,949		44,111
Earnings per share
Basic	$	0.70	$	1.15
Diluted		0.69		1.13

Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature

The following table sets forth potential common shares outstanding for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive:

	September 30
In thousands	2015		2014
Three months ended		696		282
Nine months ended		696		282

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Condensed Consolidating Financial Statements - Additional Information (Detail)	Sep. 30, 2015	Oct. 03, 2012
PHG Tea Leaves, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Mollanvick, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Composite Fibers N. A., Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Advanced Materials N.A., Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
5.375% Notes [Member]
Schedule of Equity Method Investments [Line Items]
Interest rate on notes guaranteed	5.375%	5.375%

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of Financial and Other Information by Business Unit

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	133.9	$	154.5	$	63.2	$	74.4	$	222.8	$	236.2	$	—		$	—		$	420.0		$	465.1
Energy and related sales, net		—		—		—		—		1.2		0.9		—			—			1.2			0.9
Total revenue		133.9		154.5		63.2		74.4		224.0		237.1		—			—			421.1			466.0
Cost of products sold		108.4		123.7		54.6		64.7		196.1		195.2		2.1			1.8			361.2			385.4
Gross profit (loss)		25.5		30.8		8.6		9.7		27.9		41.9		(2.1	)		(1.8	)		59.9			80.5
SG&A		11.5		12.6		1.8		2.2		10.4		14.1		16.2			9.0			39.8			37.9
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(0.1	)		(1.6	)		(0.1	)		(1.6	)
Total operating income (loss)		14.0		18.1		6.8		7.5		17.5		27.8		(18.2	)		(9.2	)		20.2			44.2
Non-operating expense		—		—		—		—		—		—		(4.4	)		(4.8	)		(4.4	)		(4.8	)
Income (loss) before income taxes	$	14.0	$	18.1	$	6.8	$	7.5	$	17.5	$	27.8	$	(22.6	)	$	(14.0	)	$	15.8		$	39.4
Supplementary Data
Net tons sold (thousands)		38.9		40.1		24.8		26.3		203.6		208.4		—			—			267.2			274.7
Depreciation, depletion and amortization	$	6.7	$	7.4	$	2.2	$	2.3	$	6.4	$	6.5	$	0.5		$	0.5		$	15.8		$	16.7
Capital expenditures		5.8		5.4		1.8		1.3		22.1		9.7		—			0.5			29.7			16.9
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2015		2014		2015		2014		2015		2014		2015			2014			2015			2014
Net sales	$	409.6	$	470.1	$	183.0	$	216.2	$	655.6	$	679.9	$	—		$	—		$	1,248.2		$	1,366.2
Energy and related sales, net		—		—		—		—		3.9		6.9		—			—			3.9			6.9
Total revenue		409.6		470.1		183.0		216.2		659.5		686.8		—			—			1,252.2			1,373.1
Cost of products sold		329.8		376.7		162.0		189.9		608.4		624.3		7.1			5.2			1,107.3			1,196.1
Gross profit (loss)		79.8		93.4		21.0		26.3		51.1		62.5		(7.1	)		(5.2	)		144.8			177.0
SG&A		34.4		38.8		5.8		6.8		34.2		39.5		25.7			18.7			100.2			103.8
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(2.9	)		(3.9	)		(2.9	)		(3.9	)
Total operating income (loss)		45.4		54.6		15.2		19.5		16.9		23.0		(29.9	)		(20.0	)		47.5			77.1
Non-operating expense		—		—		—		—		—		—		(13.1	)		(14.0	)		(13.1	)		(14.0	)
Income (loss) before income taxes	$	45.4	$	54.6	$	15.2	$	19.5	$	16.9	$	23.0	$	(43.0	)	$	(34.0	)	$	34.4		$	63.1
Supplementary Data
Net tons sold (thousands)		116.2		119.5		71.4		76.0		593.6		601.3		—			—			781.2			796.8
Depreciation, depletion and amortization	$	20.1	$	22.7	$	6.5	$	6.9	$	19.3	$	22.6	$	1.5		$	1.3		$	47.4		$	53.5
Capital expenditures		17.3		16.7		4.6		4.1		51.0		24.5		1.4			1.7			74.3			47.0

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

The amounts reported on the condensed consolidated balance sheets for cash and cash equivalents and accounts receivable approximate fair value. The following table sets forth carrying value and fair value of long-term debt:

	September 30, 2015				December 31, 2014
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	83,464	$	83,464	$	90,555	$	90,555
Fixed-rate bonds		250,000		253,908		250,000		255,470
2.40% Term loan		10,803		10,729		12,155		12,626
2.05% Term loan		44,848		43,611		51,902		53,106
Total	$	389,115	$	391,712	$	404,612	$	411,757

As of September 30, 2015, and December 31, 2014, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 15.