ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 20-3594554 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
601 West Riverside, Suite 1100 Spokane, Washington | 99201 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
Page Number | ||
PART I. | ||
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II. | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 6. | ||
ITEM 1. | |
Consolidated Financial Statements |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 432,099 | $ | 429,663 | $ | 869,051 | $ | 867,188 | |||||||
Costs and expenses: | |||||||||||||||
Cost of sales | (387,154 | ) | (381,061 | ) | (779,587 | ) | (768,121 | ) | |||||||
Selling, general and administrative expenses | (26,564 | ) | (29,454 | ) | (59,544 | ) | (59,409 | ) | |||||||
Total operating costs and expenses | (413,718 | ) | (410,515 | ) | (839,131 | ) | (827,530 | ) | |||||||
Income from operations | 18,381 | 19,148 | 29,920 | 39,658 | |||||||||||
Interest expense, net | (7,723 | ) | (7,673 | ) | (15,743 | ) | (15,716 | ) | |||||||
Non-operating pension and other postretirement benefit (costs) income | (1,187 | ) | 517 | (2,466 | ) | 565 | |||||||||
Earnings before income taxes | 9,471 | 11,992 | 11,711 | 24,507 | |||||||||||
Income tax provision | (2,510 | ) | (3,955 | ) | (2,150 | ) | (8,955 | ) | |||||||
Net earnings | $ | 6,961 | $ | 8,037 | $ | 9,561 | $ | 15,552 | |||||||
Net earnings per common share: | |||||||||||||||
Basic | $ | 0.42 | $ | 0.49 | $ | 0.58 | $ | 0.94 | |||||||
Diluted | 0.42 | 0.48 | 0.58 | 0.94 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings | $ | 6,961 | $ | 8,037 | $ | 9,561 | $ | 15,552 | |||||||
Other comprehensive income: | |||||||||||||||
Defined benefit pension and other postretirement employee benefits: | |||||||||||||||
Amortization of actuarial loss included in net periodic cost, net of tax of $588, $234, $1,205 and $648 | 1,644 | 357 | 3,372 | 988 | |||||||||||
Amortization of prior service credit included in net periodic cost, net of tax of $(111), $(151), $(221) and $(302) | (308 | ) | (231 | ) | (617 | ) | (461 | ) | |||||||
Other comprehensive income, net of tax | 1,336 | 126 | 2,755 | 527 | |||||||||||
Comprehensive income | $ | 8,297 | $ | 8,163 | $ | 12,316 | $ | 16,079 |
June 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 53,278 | $ | 15,738 | |||
Receivables, net | 118,726 | 142,065 | |||||
Taxes receivable | 8,784 | 20,282 | |||||
Inventories | 262,213 | 266,043 | |||||
Other current assets | 8,132 | 8,661 | |||||
Total current assets | 451,133 | 452,789 | |||||
Property, plant and equipment, net | 1,171,368 | 1,050,982 | |||||
Goodwill | 244,161 | 244,161 | |||||
Intangible assets, net | 28,642 | 32,542 | |||||
Other assets, net | 24,093 | 21,778 | |||||
TOTAL ASSETS | $ | 1,919,397 | $ | 1,802,252 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Borrowings under revolving credit facilities | $ | 160,000 | $ | 155,000 | |||
Accounts payable and accrued liabilities | 357,588 | 256,621 | |||||
Current liability for pensions and other postretirement employee benefits | 7,631 | 7,631 | |||||
Total current liabilities | 525,219 | 419,252 | |||||
Long-term debt | 570,908 | 570,524 | |||||
Liability for pensions and other postretirement employee benefits | 69,504 | 72,469 | |||||
Other long-term obligations | 37,734 | 43,275 | |||||
Accrued taxes | 3,116 | 2,770 | |||||
Deferred tax liabilities | 122,347 | 118,528 | |||||
TOTAL LIABILITIES | 1,328,828 | 1,226,818 | |||||
Stockholders’ equity: | |||||||
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | — | — | |||||
Common stock, par value $0.0001 per share, 100,000,000 authorized shares-16,461,119 and 16,447,898 shares issued | 2 | 2 | |||||
Additional paid-in capital | 3,980 | 1,161 | |||||
Retained earnings | 640,667 | 618,254 | |||||
Accumulated other comprehensive loss, net of tax | (54,080 | ) | (43,983 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 590,569 | 575,434 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,919,397 | $ | 1,802,252 |
Six Months Ended | |||||||
June 30, | |||||||
2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net earnings | $ | 9,561 | $ | 15,552 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 50,344 | 53,612 | |||||
Deferred taxes | 2,649 | 7,891 | |||||
Employee benefit plans | 326 | (2,183 | ) | ||||
Deferred issuance costs on debt | 716 | 598 | |||||
Other non-cash adjustments, net | 427 | 1,072 | |||||
Changes in working capital, net | 36,317 | 23,742 | |||||
Changes in taxes receivable, net | 11,498 | 4,229 | |||||
Other, net | (962 | ) | (914 | ) | |||
Net cash flows from operating activities | 110,876 | 103,599 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (78,600 | ) | (85,709 | ) | |||
Other, net | 807 | 417 | |||||
Net cash flows from investing activities | (77,793 | ) | (85,292 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Purchase of treasury stock | — | (4,875 | ) | ||||
Borrowings on revolving credit facilities | 124,063 | 117,000 | |||||
Repayments of borrowings on revolving credit facilities | (119,063 | ) | (144,000 | ) | |||
Other, net | (543 | ) | (914 | ) | |||
Net cash flows from financing activities | 4,457 | (32,789 | ) | ||||
Increase (decrease) in cash and cash equivalents | 37,540 | (14,482 | ) | ||||
Cash and cash equivalents at beginning of period | 15,738 | 23,001 | |||||
Cash and cash equivalents at end of period | $ | 53,278 | $ | 8,519 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Cash paid for interest, net of amounts capitalized | $ | 14,294 | $ | 14,310 | |||
Cash paid for income taxes | 1,517 | 2,329 | |||||
Cash received from income tax refunds | 13,281 | 5,650 | |||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Changes in accrued property, plant and equipment | $ | 88,859 | $ | 3,845 | |||
Non-cash additions to property, plant and equipment | — | 4,525 |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Pulp, paperboard and tissue products | $ | 163,426 | $ | 165,281 | |||
Materials and supplies | 87,369 | 85,987 | |||||
Logs, pulpwood, chips and sawdust | 11,418 | 14,775 | |||||
$ | 262,213 | $ | 266,043 |
June 30, 2018 | |||||||||||||
(Dollars in thousands, lives in years) | Weighted Average Useful Life | Historical Cost | Accumulated Amortization | Net Balance | |||||||||
Customer relationships | 9.3 | $ | 62,401 | $ | (37,409 | ) | $ | 24,992 | |||||
Trade names and trademarks | 7.4 | 6,786 | (3,514 | ) | 3,272 | ||||||||
Other intangibles | 6.0 | 572 | (194 | ) | 378 | ||||||||
$ | 69,759 | $ | (41,117 | ) | $ | 28,642 | |||||||
December 31, 2017 | |||||||||||||
(Dollars in thousands, lives in years) | Weighted Average Useful Life | Historical Cost | Accumulated Amortization | Net Balance | |||||||||
Customer relationships | 9.3 | $ | 62,401 | $ | (34,061 | ) | $ | 28,340 | |||||
Trade names and trademarks | 7.4 | 6,786 | (3,000 | ) | 3,786 | ||||||||
Non compete agreements | 5.0 | 574 | (574 | ) | — | ||||||||
Other intangibles | 6.0 | 572 | (156 | ) | 416 | ||||||||
$ | 70,333 | $ | (37,791 | ) | $ | 32,542 |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Trade accounts payable | $ | 271,781 | $ | 169,293 | |||
Accrued wages, salaries and employee benefits | 37,485 | 41,979 | |||||
Accrued interest | 12,400 | 12,723 | |||||
Accrued discounts and allowances | 8,332 | 7,283 | |||||
Accrued taxes other than income taxes payable | 6,495 | 6,907 | |||||
Accrued utilities | 6,087 | 6,759 | |||||
Other | 15,008 | 11,677 | |||||
$ | 357,588 | $ | 256,621 |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Long-term lease obligations, net of current portion | $ | 25,778 | $ | 26,460 | |||
Deferred proceeds | 5,043 | 5,576 | |||||
Deferred compensation | 2,586 | 5,023 | |||||
Other | 4,327 | 6,216 | |||||
$ | 37,734 | $ | 43,275 |
(In thousands) | Pension and Other Post Retirement Employee Benefit Plan Adjustments | ||
Balance at December 31, 2016 | $ | (51,753 | ) |
Other comprehensive income, net of tax1 | 527 | ||
Balance at June 30, 2017 | $ | (51,226 | ) |
Balance at December 31, 2017 | $ | (43,983 | ) |
Other comprehensive income, net of tax1 | 2,755 | ||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | (12,852 | ) | |
Balance at June 30, 2018 | $ | (54,080 | ) |
1 | Included in other comprehensive income are net periodic costs associated with our pension and other postretirement employee benefit (OPEB) plans that were reclassified from accumulated other comprehensive loss. For the six months ended June 30, 2018 and 2017, actuarial loss amortization of $3.4 million and $1.0 million, respectively, as well as $0.6 million and $0.5 million, respectively, of prior service credit amortization were reclassified. These amounts are net of tax totaling $1.0 million and $0.3 million for each respective period. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” |
Three Months Ended June 30, | |||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | ||||||||||||||
Service cost | $ | 461 | $ | 474 | $ | 20 | $ | 13 | |||||||
Interest cost | 3,010 | 3,296 | 611 | 667 | |||||||||||
Expected return on plan assets | (4,247 | ) | (4,688 | ) | — | (1 | ) | ||||||||
Amortization of prior service cost (credit) | — | 2 | (419 | ) | (384 | ) | |||||||||
Amortization of actuarial loss (gain) | 2,458 | 2,412 | (226 | ) | (1,821 | ) | |||||||||
Net periodic cost (benefit) | $ | 1,682 | $ | 1,496 | $ | (14 | ) | $ | (1,526 | ) |
Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | ||||||||||||||
Service cost | $ | 895 | $ | 1,034 | $ | 68 | $ | 81 | |||||||
Interest cost | 6,010 | 6,574 | 1,218 | 1,371 | |||||||||||
Expected return on plan assets | (8,501 | ) | (9,382 | ) | — | (1 | ) | ||||||||
Amortization of prior service cost (credit) | — | 4 | (838 | ) | (767 | ) | |||||||||
Amortization of actuarial loss (gain) | 5,028 | 4,937 | (451 | ) | (3,301 | ) | |||||||||
Net periodic cost (benefit) | $ | 3,432 | $ | 3,167 | $ | (3 | ) | $ | (2,617 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic weighted-average common shares outstanding1 | 16,486,935 | 16,457,196 | 16,491,366 | 16,470,525 | |||||||||||
Incremental shares due to: | |||||||||||||||
Restricted stock units | 20,970 | 37,703 | 29,530 | 35,922 | |||||||||||
Performance shares | 47,266 | 78,351 | 52,051 | 74,975 | |||||||||||
Stock options | — | 16,868 | 90 | 30,636 | |||||||||||
Diluted weighted-average common shares outstanding | 16,555,171 | 16,590,118 | 16,573,037 | 16,612,058 | |||||||||||
Basic net earnings per common share | $ | 0.42 | $ | 0.49 | $ | 0.58 | $ | 0.94 | |||||||
Diluted net earnings per common share | 0.42 | 0.48 | 0.58 | 0.94 | |||||||||||
Anti-dilutive shares excluded from calculation | 1,029,983 | 515,322 | 912,863 | 493,150 |
1 | Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Restricted stock units | $ | 582 | $ | 503 | $ | 1,004 | $ | 795 | |||||||
Performance shares | 377 | 630 | 910 | 1,226 | |||||||||||
Stock options | 593 | 736 | 1,128 | 1,315 | |||||||||||
Total employee equity-based compensation expense | $ | 1,552 | $ | 1,869 | $ | 3,042 | $ | 3,336 |
• | For performance shares granted in 2017, the performance measure used for 40% of the grant is a comparison of the percentile ranking of our total stockholder return, or TSR, compared to the TSR of a selected index, and for 60% of the |
• | For performance shares granted in 2018, the performance measure used for 40% of the performance share awards granted is an ROIC performance measure. For the remaining 60% of the grants, a free cash flow performance measure is used. The combined performance of these measures is then subject to an adjustment (increase or decrease) of up to 25% based on our TSR compared to the TSR performance of a selected index. |
Six Months Ended | ||||||
June 30, 2018 | ||||||
Number of Shares Subject to Award | Average Fair Value of Award Per Share | |||||
Restricted stock units | 108,816 | $ | 37.45 | |||
Performance shares | 49,040 | 37.45 | ||||
Stock options | 196,488 | 14.51 |
June 30, | December 31, | ||||||||||||||
2018 | 2017 | ||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||
(In thousands) | Amount | Value | Amount | Value | |||||||||||
Cash and cash equivalents (Level 1) | $ | 53,278 | $ | 53,278 | $ | 15,738 | $ | 15,738 | |||||||
Borrowings under revolving credit facilities (Level 2) | 160,000 | 159,971 | 155,000 | 154,882 | |||||||||||
Long-term debt (Level 2) | 575,000 | 525,625 | 575,000 | 569,250 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Segment net sales: | |||||||||||||||
Consumer Products | $ | 221,585 | $ | 231,912 | $ | 460,427 | $ | 474,335 | |||||||
Pulp and Paperboard | 210,514 | 197,751 | 408,624 | 392,853 | |||||||||||
Total segment net sales | $ | 432,099 | $ | 429,663 | $ | 869,051 | $ | 867,188 | |||||||
Earnings (loss) before income taxes: | |||||||||||||||
Consumer Products1,2,3 | $ | (3,604 | ) | $ | 10,698 | $ | (1,975 | ) | $ | 16,902 | |||||
Pulp and Paperboard2,3 | 34,192 | 21,071 | 60,346 | 48,271 | |||||||||||
30,588 | 31,769 | 58,371 | 65,173 | ||||||||||||
Corporate2,3 | (12,207 | ) | (12,621 | ) | (28,451 | ) | (25,515 | ) | |||||||
Income from operations | 18,381 | 19,148 | 29,920 | 39,658 | |||||||||||
Interest expense, net | (7,723 | ) | (7,673 | ) | (15,743 | ) | (15,716 | ) | |||||||
Non-operating pension and other postretirement benefit (costs) income2 | (1,187 | ) | 517 | (2,466 | ) | 565 | |||||||||
Earnings before income taxes | $ | 9,471 | $ | 11,992 | $ | 11,711 | $ | 24,507 | |||||||
Depreciation and amortization: | |||||||||||||||
Consumer Products1 | $ | 14,220 | $ | 16,292 | $ | 28,517 | $ | 34,534 | |||||||
Pulp and Paperboard | 9,361 | 8,356 | 18,790 | 16,461 | |||||||||||
Corporate | 1,596 | 1,407 | 3,037 | 2,617 | |||||||||||
Total depreciation and amortization | $ | 25,177 | $ | 26,055 | $ | 50,344 | $ | 53,612 |
1 | Operating income for the Consumer Products segment for the three and six months ended June 30, 2017 includes $0.3 million and $6.0 million, respectively, of costs associated with the closure of the Oklahoma City facility. These costs for the six months ended June 30, 2017 include $3.7 million of accelerated depreciation. |
2 | As a result of the adoption of ASU 2017-07, certain pension and OPEB (costs) income have been reclassified from operating to non-operating income. The service cost component of pension and OPEB costs remains within segment operating income. Refer to Note 2, "Recently Adopted and New Accounting Standards," and Note 10, "Pension and Other Postretirement Benefit Plans," for additional detail. |
3 | Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended June 30, 2018 include $0.2 million, $0.1 million, and $0.8 million, respectively, of expenses associated with our selling, general, and administrative cost control measures. Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the six months ended June 30, 2018 include $1.7 million, $0.4 million and $4.1 million, respectively, of expenses associated with our selling, general and administrative cost control measures. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Primary geographical markets: | |||||||||||||||
United States | $ | 412,231 | $ | 409,876 | $ | 833,051 | $ | 831,843 | |||||||
Other countries | 19,868 | 19,787 | 36,000 | 35,345 | |||||||||||
Total net sales | $ | 432,099 | $ | 429,663 | $ | 869,051 | $ | 867,188 | |||||||
Major products: | |||||||||||||||
Retail tissue | $ | 197,767 | $ | 211,589 | $ | 418,652 | $ | 429,726 | |||||||
Paperboard | 210,514 | 197,751 | 408,624 | 392,853 | |||||||||||
Non-retail tissue | 23,765 | 19,966 | 40,724 | 43,959 | |||||||||||
Other | 53 | 357 | 1,051 | 650 | |||||||||||
Total net sales | $ | 432,099 | $ | 429,663 | $ | 869,051 | $ | 867,188 |
Guarantor | |||||||||||||||
(In thousands) | Issuer | Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 433,826 | $ | 54,313 | $ | (56,040 | ) | $ | 432,099 | ||||||
Cost and expenses: | |||||||||||||||
Cost of sales | (394,260 | ) | (47,918 | ) | 55,024 | (387,154 | ) | ||||||||
Selling, general and administrative expenses | (21,226 | ) | (5,338 | ) | — | (26,564 | ) | ||||||||
Total operating costs and expenses | (415,486 | ) | (53,256 | ) | 55,024 | (413,718 | ) | ||||||||
Income from operations | 18,340 | 1,057 | (1,016 | ) | 18,381 | ||||||||||
Interest expense, net | (7,627 | ) | (96 | ) | — | (7,723 | ) | ||||||||
Non-operating pension and other postretirement benefit costs | (1,187 | ) | — | — | (1,187 | ) | |||||||||
Earnings before income taxes | 9,526 | 961 | (1,016 | ) | 9,471 | ||||||||||
Income tax provision | (2,574 | ) | (186 | ) | 250 | (2,510 | ) | ||||||||
Equity in income of subsidiary | 775 | — | (775 | ) | — | ||||||||||
Net earnings | $ | 7,727 | $ | 775 | $ | (1,541 | ) | $ | 6,961 | ||||||
Other comprehensive income, net of tax | 1,336 | — | — | 1,336 | |||||||||||
Comprehensive income | $ | 9,063 | $ | 775 | $ | (1,541 | ) | $ | 8,297 |
Guarantor | |||||||||||||||
(In thousands) | Issuer | Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 889,003 | $ | 100,526 | $ | (120,478 | ) | $ | 869,051 | ||||||
Cost and expenses: | |||||||||||||||
Cost of sales | (807,217 | ) | (88,278 | ) | 115,908 | (779,587 | ) | ||||||||
Selling, general and administrative expenses | (48,858 | ) | (10,686 | ) | — | (59,544 | ) | ||||||||
Total operating costs and expenses | (856,075 | ) | (98,964 | ) | 115,908 | (839,131 | ) | ||||||||
Income from operations | 32,928 | 1,562 | (4,570 | ) | 29,920 | ||||||||||
Interest expense, net | (15,556 | ) | (187 | ) | — | (15,743 | ) | ||||||||
Non-operating pension and other postretirement benefit costs | (2,466 | ) | — | — | (2,466 | ) | |||||||||
Earnings before income taxes | 14,906 | 1,375 | (4,570 | ) | 11,711 | ||||||||||
Income tax provision | (2,956 | ) | (199 | ) | 1,005 | (2,150 | ) | ||||||||
Equity in income of subsidiary | 1,176 | — | (1,176 | ) | — | ||||||||||
Net earnings | $ | 13,126 | $ | 1,176 | $ | (4,741 | ) | $ | 9,561 | ||||||
Other comprehensive income, net of tax | 2,755 | — | — | 2,755 | |||||||||||
Comprehensive income | $ | 15,881 | $ | 1,176 | $ | (4,741 | ) | $ | 12,316 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 419,540 | $ | 63,956 | $ | (53,833 | ) | $ | 429,663 | ||||||
Cost and expenses: | |||||||||||||||
Cost of sales | (376,112 | ) | (57,942 | ) | 52,993 | (381,061 | ) | ||||||||
Selling, general and administrative expenses | (23,411 | ) | (6,043 | ) | — | (29,454 | ) | ||||||||
Total operating costs and expenses | (399,523 | ) | (63,985 | ) | 52,993 | (410,515 | ) | ||||||||
Income (loss) from operations | 20,017 | (29 | ) | (840 | ) | 19,148 | |||||||||
Interest expense, net | (7,582 | ) | (91 | ) | — | (7,673 | ) | ||||||||
Non-operating pension and other postretirement benefit income | 517 | — | — | 517 | |||||||||||
Earnings (loss) before income taxes | 12,952 | (120 | ) | (840 | ) | 11,992 | |||||||||
Income tax provision | (4,224 | ) | (52 | ) | 321 | (3,955 | ) | ||||||||
Equity in loss of subsidiary | (172 | ) | — | 172 | — | ||||||||||
Net earnings (loss) | $ | 8,556 | $ | (172 | ) | $ | (347 | ) | $ | 8,037 | |||||
Other comprehensive income, net of tax | 126 | — | — | 126 | |||||||||||
Comprehensive income (loss) | $ | 8,682 | $ | (172 | ) | $ | (347 | ) | $ | 8,163 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 839,755 | $ | 140,505 | $ | (113,072 | ) | $ | 867,188 | ||||||
Cost and expenses: | |||||||||||||||
Cost of sales | (750,593 | ) | (127,680 | ) | 110,152 | (768,121 | ) | ||||||||
Selling, general and administrative expenses | (46,976 | ) | (12,433 | ) | — | (59,409 | ) | ||||||||
Total operating costs and expenses | (797,569 | ) | (140,113 | ) | 110,152 | (827,530 | ) | ||||||||
Income from operations | 42,186 | 392 | (2,920 | ) | 39,658 | ||||||||||
Interest expense, net | (15,574 | ) | (142 | ) | — | (15,716 | ) | ||||||||
Non-operating pension and other postretirement benefit income | 565 | — | — | 565 | |||||||||||
Earnings before income taxes | 27,177 | 250 | (2,920 | ) | 24,507 | ||||||||||
Income tax provision | (10,010 | ) | (7 | ) | 1,062 | (8,955 | ) | ||||||||
Equity in income of subsidiary | 243 | — | (243 | ) | — | ||||||||||
Net earnings | $ | 17,410 | $ | 243 | $ | (2,101 | ) | $ | 15,552 | ||||||
Other comprehensive income, net of tax | 527 | — | — | 527 | |||||||||||
Comprehensive income | $ | 17,937 | $ | 243 | $ | (2,101 | ) | $ | 16,079 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 53,278 | $ | — | $ | — | $ | 53,278 | |||||||
Receivables, net | 95,309 | 23,417 | — | 118,726 | |||||||||||
Taxes receivable | 8,740 | 44 | — | 8,784 | |||||||||||
Inventories | 221,994 | 44,789 | (4,570 | ) | 262,213 | ||||||||||
Other current assets | 7,877 | 255 | — | 8,132 | |||||||||||
Total current assets | 387,198 | 68,505 | (4,570 | ) | 451,133 | ||||||||||
Property, plant and equipment, net | 1,063,183 | 108,185 | — | 1,171,368 | |||||||||||
Goodwill | 244,161 | — | — | 244,161 | |||||||||||
Intangible assets, net | 1,567 | 27,075 | — | 28,642 | |||||||||||
Intercompany (payable) receivable | (6,795 | ) | 2,225 | 4,570 | — | ||||||||||
Investment in subsidiary | 158,176 | — | (158,176 | ) | — | ||||||||||
Other assets, net | 23,114 | 3,391 | (2,412 | ) | 24,093 | ||||||||||
TOTAL ASSETS | $ | 1,870,604 | $ | 209,381 | $ | (160,588 | ) | $ | 1,919,397 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Borrowings under revolving credit facilities | $ | 160,000 | $ | — | $ | — | $ | 160,000 | |||||||
Accounts payable and accrued liabilities | 333,307 | 24,281 | — | 357,588 | |||||||||||
Current liability for pensions and other postretirement employee benefits | 7,631 | — | — | 7,631 | |||||||||||
Total current liabilities | 500,938 | 24,281 | — | 525,219 | |||||||||||
Long-term debt | 570,908 | — | — | 570,908 | |||||||||||
Liability for pensions and other postretirement employee benefits | 69,504 | — | — | 69,504 | |||||||||||
Other long-term obligations | 37,734 | — | — | 37,734 | |||||||||||
Accrued taxes | 2,262 | 854 | — | 3,116 | |||||||||||
Deferred tax liabilities | 98,689 | 26,070 | (2,412 | ) | 122,347 | ||||||||||
TOTAL LIABILITIES | 1,280,035 | 51,205 | (2,412 | ) | 1,328,828 | ||||||||||
Stockholders’ equity excluding accumulated other comprehensive loss | 644,649 | 158,176 | (158,176 | ) | 644,649 | ||||||||||
Accumulated other comprehensive loss, net of tax | (54,080 | ) | — | — | (54,080 | ) | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,870,604 | $ | 209,381 | $ | (160,588 | ) | $ | 1,919,397 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 15,738 | $ | — | $ | — | $ | 15,738 | |||||||
Receivables, net | 125,001 | 17,064 | — | 142,065 | |||||||||||
Taxes receivable | 20,242 | 40 | — | 20,282 | |||||||||||
Inventories | 228,311 | 41,594 | (3,862 | ) | 266,043 | ||||||||||
Other current assets | 8,587 | 74 | — | 8,661 | |||||||||||
Total current assets | 397,879 | 58,772 | (3,862 | ) | 452,789 | ||||||||||
Property, plant and equipment, net | 936,659 | 114,323 | — | 1,050,982 | |||||||||||
Goodwill | 244,161 | — | — | 244,161 | |||||||||||
Intangible assets, net | 2,089 | 30,453 | — | 32,542 | |||||||||||
Intercompany payable | (2,807 | ) | (1,055 | ) | 3,862 | — | |||||||||
Investment in subsidiary | 157,000 | — | (157,000 | ) | — | ||||||||||
Other assets, net | 21,413 | 2,696 | (2,331 | ) | 21,778 | ||||||||||
TOTAL ASSETS | $ | 1,756,394 | $ | 205,189 | $ | (159,331 | ) | $ | 1,802,252 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Borrowings under revolving credit facilities | $ | 155,000 | $ | — | $ | — | $ | 155,000 | |||||||
Accounts payable and accrued liabilities | 235,439 | 21,182 | — | 256,621 | |||||||||||
Current liability for pensions and other postretirement employee benefits | 7,631 | — | — | 7,631 | |||||||||||
Total current liabilities | 398,070 | 21,182 | — | 419,252 | |||||||||||
Long-term debt | 570,524 | — | — | 570,524 | |||||||||||
Liability for pensions and other postretirement employee benefits | 72,469 | — | — | 72,469 | |||||||||||
Other long-term obligations | 43,275 | — | — | 43,275 | |||||||||||
Accrued taxes | 1,928 | 842 | — | 2,770 | |||||||||||
Deferred tax liabilities | 94,694 | 26,165 | (2,331 | ) | 118,528 | ||||||||||
TOTAL LIABILITIES | 1,180,960 | 48,189 | (2,331 | ) | 1,226,818 | ||||||||||
Stockholders’ equity excluding accumulated other comprehensive loss | 619,417 | 157,000 | (157,000 | ) | 619,417 | ||||||||||
Accumulated other comprehensive loss, net of tax | (43,983 | ) | — | — | (43,983 | ) | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,756,394 | $ | 205,189 | $ | (159,331 | ) | $ | 1,802,252 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 13,126 | $ | 1,176 | $ | (4,741 | ) | $ | 9,561 | ||||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 39,905 | 10,439 | — | 50,344 | |||||||||||
Deferred taxes | 2,979 | (330 | ) | — | 2,649 | ||||||||||
Employee benefit plans | 326 | — | — | 326 | |||||||||||
Deferred issuance costs on debt | 716 | — | — | 716 | |||||||||||
Other non-cash adjustments, net | 431 | (4 | ) | — | 427 | ||||||||||
Changes in working capital, net | 41,660 | (6,051 | ) | 708 | 36,317 | ||||||||||
Changes in taxes receivable, net | 11,502 | (4 | ) | — | 11,498 | ||||||||||
Other, net | (436 | ) | (526 | ) | — | (962 | ) | ||||||||
Net cash flows from operating activities | 110,209 | 4,700 | (4,033 | ) | 110,876 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and equipment | (77,257 | ) | (1,343 | ) | — | (78,600 | ) | ||||||||
Other, net | 793 | 14 | — | 807 | |||||||||||
Net cash flows from investing activities | (76,464 | ) | (1,329 | ) | — | (77,793 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Borrowings on revolving credit facilities | 124,063 | — | — | 124,063 | |||||||||||
Repayments of borrowings on revolving credit facilities | (119,063 | ) | — | — | (119,063 | ) | |||||||||
Investment from (to) parent | (662 | ) | (3,371 | ) | 4,033 | — | |||||||||
Other, net | (543 | ) | — | — | (543 | ) | |||||||||
Net cash flows from financing activities | 3,795 | (3,371 | ) | 4,033 | 4,457 | ||||||||||
Increase in cash and cash equivalents | 37,540 | — | — | 37,540 | |||||||||||
Cash and cash equivalents at beginning of period | 15,738 | — | — | 15,738 | |||||||||||
Cash and cash equivalents at end of period | $ | 53,278 | $ | — | $ | — | $ | 53,278 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 17,410 | $ | 243 | $ | (2,101 | ) | $ | 15,552 | ||||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 37,335 | 16,277 | — | 53,612 | |||||||||||
Deferred taxes | 7,183 | 708 | — | 7,891 | |||||||||||
Employee benefit plans | (2,183 | ) | — | — | (2,183 | ) | |||||||||
Deferred issuance costs on long term debt | 598 | — | — | 598 | |||||||||||
Other non-cash adjustments, net | 727 | 345 | — | 1,072 | |||||||||||
Changes in working capital, net | (29,619 | ) | 46,811 | 6,550 | 23,742 | ||||||||||
Changes in taxes receivable, net | 9,710 | 6 | (5,487 | ) | 4,229 | ||||||||||
Other, net | (373 | ) | (541 | ) | — | (914 | ) | ||||||||
Net cash flows from operating activities | 40,788 | 63,849 | (1,038 | ) | 103,599 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and equipment | (82,582 | ) | (3,127 | ) | — | (85,709 | ) | ||||||||
Other, net | 20 | 397 | — | 417 | |||||||||||
Net cash flows from investing activities | (82,562 | ) | (2,730 | ) | — | (85,292 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Purchase of treasury stock | (4,875 | ) | — | — | (4,875 | ) | |||||||||
Borrowings on revolving credit facilities | 117,000 | — | — | 117,000 | |||||||||||
Repayments of borrowings on revolving credit facilities | (144,000 | ) | — | — | (144,000 | ) | |||||||||
Investment from (to) parent | 63,496 | (64,534 | ) | 1,038 | — | ||||||||||
Other, net | (914 | ) | — | — | (914 | ) | |||||||||
Net cash flows from financing activities | 30,707 | (64,534 | ) | 1,038 | (32,789 | ) | |||||||||
Decrease in cash and cash equivalents | (11,067 | ) | (3,415 | ) | — | (14,482 | ) | ||||||||
Cash and cash equivalents at beginning of period | 19,586 | 3,415 | — | 23,001 | |||||||||||
Cash and cash equivalents at end of period | $ | 8,519 | $ | — | $ | — | $ | 8,519 |
ITEM 2. | |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by our competitors; |
• | the loss of, changes in prices in regards to, or reduction in orders from a significant customer; |
• | changes in customer product preferences and competitors' product offerings; |
• | our ability to successfully implement our operational efficiencies and cost savings strategies, including related capital projects, and achieve the expected operational or financial results of those projects, including from the continuous digester at our Lewiston facility; |
• | our ability to execute on our expansion strategies, including on-time completion of our new tissue manufacturing operations in Shelby, North Carolina; |
• | customer acceptance and timing and quantity of purchases of our tissue products, including the existence of sufficient demand for and the quality of tissue produced by our expanded Shelby, North Carolina operations when completed; |
• | changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; |
• | labor disruptions; |
• | changes in transportation costs and disruptions in transportation services; |
• | changes in the cost and availability of wood fiber and wood pulp; |
• | manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunction and damage to our manufacturing facilities; |
• | changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; |
• | cyclical industry conditions; |
• | changes in expenses and required contributions associated with our pension plans; |
• | environmental liabilities or expenditures; |
• | cyber-security risks; |
• | reliance on a limited number of third-party suppliers for raw materials; |
• | our ability to service our debt obligations; |
• | restrictions on our business from debt covenants and terms; and |
• | changes in laws, regulations or industry standards affecting our business. |
Cost of sales | |||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||||||||||
Cost | Percentage of Sales | Cost | Percentage of Sales | Cost Variance | |||||||||||||
Wages and benefits | $ | 72,721 | 16.8 | % | $ | 68,084 | 15.9 | % | $ | 4,637 | |||||||
Transportation1 | 56,061 | 13.0 | 49,550 | 11.5 | 6,511 | ||||||||||||
Purchased pulp | 45,013 | 10.4 | 45,366 | 10.6 | (353 | ) | |||||||||||
Chemicals | 44,949 | 10.4 | 41,918 | 9.8 | 3,031 | ||||||||||||
Chips, sawdust and logs | 43,940 | 10.2 | 34,854 | 8.1 | 9,086 | ||||||||||||
Packaging supplies | 21,212 | 4.9 | 21,412 | 5.0 | (200 | ) | |||||||||||
Depreciation | 21,574 | 5.0 | 22,517 | 5.2 | (943 | ) | |||||||||||
Energy | 19,168 | 4.4 | 20,813 | 4.8 | (1,645 | ) | |||||||||||
Maintenance and repairs2 | 16,807 | 3.9 | 26,291 | 6.1 | (9,484 | ) | |||||||||||
341,445 | 79.0 | 330,805 | 77.0 | 10,640 | |||||||||||||
Other operating costs | 45,709 | 10.6 | 50,256 | 11.7 | (4,547 | ) | |||||||||||
Total cost of sales | $ | 387,154 | 89.6 | % | $ | 381,061 | 88.7 | % | $ | 6,093 | |||||||
Six Months Ended June 30, | |||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||||||||||
Cost | Percentage of Sales | Cost | Percentage of Sales | Cost Variance | |||||||||||||
Wages and benefits | $ | 143,173 | 16.5 | % | $ | 141,531 | 16.4 | % | $ | 1,642 | |||||||
Transportation1 | 110,867 | 12.8 | 96,403 | 11.1 | 14,464 | ||||||||||||
Purchased pulp | 93,267 | 10.7 | 91,458 | 10.5 | 1,809 | ||||||||||||
Chemicals | 87,623 | 10.0 | 82,639 | 9.5 | 4,984 | ||||||||||||
Chips, sawdust and logs | 82,367 | 9.5 | 70,086 | 8.1 | 12,281 | ||||||||||||
Packaging supplies | 44,204 | 5.1 | 43,890 | 5.1 | 314 | ||||||||||||
Depreciation | 43,296 | 5.0 | 46,907 | 5.4 | (3,611 | ) | |||||||||||
Energy | 40,026 | 4.6 | 44,302 | 5.1 | (4,276 | ) | |||||||||||
Maintenance and repairs2 | 35,457 | 4.1 | 45,166 | 5.2 | (9,709 | ) | |||||||||||
680,280 | 78.3 | 662,382 | 76.4 | 17,898 | |||||||||||||
Other operating costs | 99,307 | 11.4 | 105,739 | 12.2 | (6,432 | ) | |||||||||||
Total cost of sales | $ | 779,587 | 89.7 | % | $ | 768,121 | 88.6 | % | $ | 11,466 |
1 | Includes internal and external transportation costs. |
2 | Excludes related internal labor costs. |
Three Months Ended June 30, | |||||||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||||||
Net sales | $ | 432,099 | 100.0 | % | $ | 429,663 | 100.0 | % | |||||
Costs and expenses: | |||||||||||||
Cost of sales | (387,154 | ) | 89.6 | (381,061 | ) | 88.7 | |||||||
Selling, general and administrative expenses | (26,564 | ) | 6.1 | (29,454 | ) | 6.9 | |||||||
Total operating costs and expenses | (413,718 | ) | 95.7 | (410,515 | ) | 95.5 | |||||||
Income from operations | 18,381 | 4.3 | 19,148 | 4.5 | |||||||||
Interest expense, net | (7,723 | ) | 1.8 | (7,673 | ) | 1.8 | |||||||
Non-operating pension and other postretirement benefit (costs) income | (1,187 | ) | 0.3 | 517 | 0.1 | ||||||||
Earnings before income taxes | 9,471 | 2.2 | 11,992 | 2.8 | |||||||||
Income tax provision | (2,510 | ) | 0.6 | (3,955 | ) | 0.9 | |||||||
Net earnings | $ | 6,961 | 1.6 | % | $ | 8,037 | 1.9 | % |
Three Months Ended | |||||||
June 30, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 221,585 | $ | 231,912 | |||
Operating (loss) income | (3,604 | ) | 10,698 | ||||
Percent of net sales | (1.6 | )% | 4.6 | % | |||
Shipments (short tons) | |||||||
Retail | 73,070 | 77,714 | |||||
Non-retail | 17,316 | 13,736 | |||||
Total tissue tons | 90,386 | 91,450 | |||||
Converted products cases (in thousands) | 12,027 | 12,709 | |||||
Sales price (per short ton) | |||||||
Retail | $ | 2,707 | $ | 2,723 | |||
Non-retail | 1,372 | 1,454 | |||||
Total tissue | $ | 2,451 | $ | 2,533 |
Three Months Ended | |||||||
June 30, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 210,514 | $ | 197,751 | |||
Operating income | 34,192 | 21,071 | |||||
Percent of net sales | 16.2 | % | 10.7 | % | |||
Paperboard shipments (short tons) | 216,582 | 207,152 | |||||
Paperboard sales price (per short ton) | $ | 972 | $ | 955 |
Six Months Ended June 30, | |||||||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||||||
Net sales | $ | 869,051 | 100.0 | % | $ | 867,188 | 100.0 | % | |||||
Costs and expenses: | |||||||||||||
Cost of sales | (779,587 | ) | 89.7 | (768,121 | ) | 88.6 | |||||||
Selling, general and administrative expenses | (59,544 | ) | 6.9 | (59,409 | ) | 6.9 | |||||||
Total operating costs and expenses | (839,131 | ) | 96.6 | (827,530 | ) | 95.4 | |||||||
Income from operations | 29,920 | 3.4 | 39,658 | 4.6 | |||||||||
Interest expense, net | (15,743 | ) | 1.8 | (15,716 | ) | 1.8 | |||||||
Non-operating pension and other postretirement benefit (costs) income | (2,466 | ) | 0.3 | 565 | (0.1 | ) | |||||||
Earnings before income taxes | 11,711 | 1.3 | 24,507 | 2.8 | |||||||||
Income tax provision | (2,150 | ) | 0.2 | (8,955 | ) | 1.0 | |||||||
Net earnings | $ | 9,561 | 1.1 | $ | 15,552 | 1.8 |
Six Months Ended | |||||||
June 30, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 460,427 | $ | 474,335 | |||
Operating (loss) income | (1,975 | ) | 16,902 | ||||
Percent of net sales | (0.4 | )% | 3.6 | % | |||
Shipments (short tons) | |||||||
Retail | 154,041 | 156,400 | |||||
Non-retail | 28,552 | 30,414 | |||||
Total tissue tons | 182,593 | 186,814 | |||||
Converted products cases (in thousands) | 25,289 | 25,832 | |||||
Sales price (per short ton) | |||||||
Retail | $ | 2,711 | $ | 2,748 | |||
Non-retail | 1,426 | 1,446 | |||||
Total tissue | $ | 2,510 | $ | 2,536 |
Six Months Ended | |||||||
June 30, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 408,624 | $ | 392,853 | |||
Operating income | 60,346 | 48,271 | |||||
Percent of net sales | 14.8 | % | 12.3 | % | |||
Paperboard shipments (short tons) | 422,891 | 417,534 | |||||
Paperboard sales price (per short ton) | $ | 966 | $ | 941 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net earnings | $ | 6,961 | $ | 8,037 | $ | 9,561 | $ | 15,552 | |||||||
Interest expense, net | 7,723 | 7,673 | 15,743 | 15,716 | |||||||||||
Income tax provision | 2,510 | 3,955 | 2,150 | 8,955 | |||||||||||
Depreciation and amortization expense1 | 25,177 | 26,055 | 50,344 | 53,612 | |||||||||||
EBITDA | $ | 42,371 | $ | 45,720 | $ | 77,798 | $ | 93,835 | |||||||
Directors' equity-based compensation benefit | (1,990 | ) | (1,483 | ) | (2,699 | ) | (2,933 | ) | |||||||
Reorganization related expenses associated with SG&A cost control measures | 1,076 | — | 6,180 | — | |||||||||||
Consumer products reorganization related expenses | 792 | — | 792 | — | |||||||||||
Other | 338 | — | 338 | — | |||||||||||
Costs associated with Oklahoma City facility closure | — | 275 | — | 2,349 | |||||||||||
Costs associated with Long Island facility closure | — | 365 | — | 831 | |||||||||||
Manchester Industries acquisition related expenses | — | 105 | — | 220 | |||||||||||
Write-off of assets as a result of Warehouse Automation project | — | 41 | — | 41 | |||||||||||
Adjusted EBITDA | $ | 42,587 | $ | 45,023 | $ | 82,409 | $ | 94,343 |
1 | Depreciation and amortization expense for the six months ended June 30, 2017 includes $3.7 million of accelerated depreciation associated with the closure of our Oklahoma City facility. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
GAAP Income tax provision | $ | (2,510 | ) | $ | (3,955 | ) | $ | (2,150 | ) | $ | (8,955 | ) | |||
Special items, tax impact: | |||||||||||||||
Directors' equity-based compensation benefit | 518 | 495 | 695 | 988 | |||||||||||
Reorganization related expenses associated with SG&A cost control measures | (280 | ) | — | (1,556 | ) | — | |||||||||
Consumer products reorganization related expenses | (206 | ) | — | (206 | ) | — | |||||||||
Other | (88 | ) | — | (88 | ) | — | |||||||||
Impact of state tax rate changes | — | — | (676 | ) | — | ||||||||||
Costs associated with Oklahoma City facility closure | — | (92 | ) | — | (2,043 | ) | |||||||||
Manchester Industries acquisition related expenses | — | (35 | ) | — | (74 | ) | |||||||||
Costs associated with Long Island facility closure | — | (221 | ) | — | (379 | ) | |||||||||
Write off of assets as a result of Warehouse Automation project | — | (14 | ) | — | (14 | ) | |||||||||
Accelerated depreciation of assets as a result of Warehouse Automation project | — | (80 | ) | — | (80 | ) | |||||||||
Adjusted income tax provision | $ | (2,566 | ) | $ | (3,902 | ) | $ | (3,981 | ) | $ | (10,557 | ) |
(In thousands) | 2018 | 2017 | |||||
Net cash flows from operating activities | $ | 110,876 | $ | 103,599 | |||
Net cash flows from investing activities | (77,793 | ) | (85,292 | ) | |||
Net cash flows from financing activities | 4,457 | (32,789 | ) |
ITEM 3. | |
Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | |
Controls and Procedures |
ITEM 1. | |
Legal Proceedings |
ITEM 1A. | |
Risk Factors |
ITEM 2. | |
Unregistered Sales of Equity Securities and Uses of Proceeds |
EXHIBIT NUMBER | DESCRIPTION | |
(31) | ||
(32)** | ||
10(i)1 | ||
10(ii) | ||
10(iii) | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
** | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibit 32 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. |
1 | Management contract or compensatory plan, contract or arrangement. |
CLEARWATER PAPER CORPORATION | ||||
(Registrant) | ||||
August 6, 2018 | By | /s/ JOHN D. HERTZ | ||
John D. Hertz | ||||
Senior Vice President, Finance and | ||||
Chief Financial Officer | ||||
(Duly Authorized Officer; Principal | ||||
Financial Officer) | ||||
August 6, 2018 | By | /s/ ROBERT N. DAMMARELL | ||
Robert N. Dammarell | ||||
Vice President, Corporate Controller | ||||
(Duly Authorized Officer; Principal | ||||
Accounting Officer) | ||||
1. | ESTABLISHMENT AND PURPOSE. |
4. | PARTICIPATION FOR DIRECTOR’S FEES. |
5. | DEFERRAL ELECTION. |
10. | PARTICIPANT’S RIGHTS UNSECURED. |
(d) | No Default or Event of Default shall have occurred and be continuing; and |
6. | Miscellaneous. |
• | Account Purchase Agreement, dated June [_], 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Account Purchase Agreement”), by and between Clearwater Paper Corporation (“Seller”) and Wells Fargo Bank, National Association (in such capacity, “Purchaser”); |
• | $200,000,000 Credit Agreement, dated as of October 31, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement” and together with all other agreements, documents or instruments executed by any Seller in connection therewith, each as amended, the “Loan Documents”) by and among Seller, as borrower, Wells Fargo Bank, National Association as Administrative Agent, Swingline Lender and Issuing Lender (in such capacity, “Agent”), the other lenders party thereto (the “Lenders”) and Wells Fargo Securities, LLC, as Sole Lead Arranger and Sole Bookrunner; and |
• | $100,000,000 Credit Agreement, dated as of October 31, 2016 (as amended, the “Northwest Credit Agreement” and together with all other agreements, documents or instruments executed by Seller in connection therewith, each as amended, the “Northwest Loan Documents”), by and among Seller, as borrower, Northwest Farm Credit Services, PCA, as Administrative Agent, Sole Lead Arranger and Sole Bookrunner (in such capacity, “Northwest Agent”), and the lenders from time to time party thereto (the “Northwest Lenders”). |
[SIGNATURE PAGE FOLLOWS] |
(d) | No Default or Event of Default shall have occurred and be continuing; |
6. | Miscellaneous. |
• | Account Purchase Agreement, dated June [_], 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Account Purchase Agreement”), by and between Clearwater Paper Corporation (“Seller”) and Wells Fargo Bank, National Association (in such capacity, “Purchaser”); |
• | $200,000,000 Credit Agreement, dated as of October 31, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement” and together with all other agreements, documents or instruments executed by any Seller in connection therewith, each as amended, the “Loan Documents”) by and among Seller, as borrower, Wells Fargo Bank, National Association as Administrative Agent, Swingline Lender and Issuing Lender (in such capacity, “Agent”), the other lenders party thereto (the “Lenders”) and Wells Fargo Securities, LLC, as Sole Lead Arranger and Sole Bookrunner; and |
• | $100,000,000 Credit Agreement, dated as of October 31, 2016 (as amended, the “Northwest Credit Agreement” and together with all other agreements, documents or instruments executed by Seller in connection therewith, each as amended, the “Northwest Loan Documents”), by and among Seller, as borrower, Northwest Farm Credit Services, PCA, as Administrative Agent, Sole Lead Arranger and Sole Bookrunner (in such capacity, “Northwest Agent”), and the lenders from time to time party thereto (the “Northwest Lenders”). |
(h) | all Proceeds and rights relating to any of the foregoing. |
1. | I have reviewed this report on Form 10-Q of Clearwater Paper Corporation; |
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. | The registrant’s other certifying officer(s) 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 the registrant 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 the registrant, 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 the registrant’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 the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent 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 the registrant’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 the registrant’s internal control over financial reporting. |
Date: August 6, 2018 | /S/ LINDA K. MASSMAN | |||
Linda K. Massman | ||||
President and Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of Clearwater Paper Corporation; |
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. | The registrant’s other certifying officer(s) 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 the registrant 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 the registrant, 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 the registrant’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 the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent 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 the registrant’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 the registrant’s internal control over financial reporting. |
Date: August 6, 2018 | /S/ JOHN D. HERTZ | |||
John D. Hertz | ||||
Senior Vice President, Finance and Chief Financial Officer |
(1) | the Quarterly Report of the Company on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/S/ LINDA K. MASSMAN |
Linda K. Massman |
President and Chief Executive Officer |
August 6, 2018 |
(1) | the Quarterly Report of the Company on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/S/ JOHN D. HERTZ |
John D. Hertz |
Senior Vice President, Finance and Chief Financial Officer |
August 6, 2018 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 03, 2018 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CLW | |
Entity Registrant Name | CLEARWATER PAPER CORP | |
Entity Central Index Key | 0001441236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,461,119 |
Condensed Consolidated Statements of Operations - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Income Statement [Abstract] | ||||||
Net sales | $ 432,099,000 | $ 429,663,000 | $ 869,051,000 | $ 867,188,000 | ||
Costs and expenses: | ||||||
Cost of sales | (387,154,000) | (381,061,000) | (779,587,000) | (768,121,000) | ||
Selling, general and administrative expenses | (26,564,000) | (29,454,000) | (59,544,000) | (59,409,000) | ||
Total operating costs and expenses | (413,718,000) | (410,515,000) | (839,131,000) | (827,530,000) | ||
Income (loss) from operations | 18,381,000 | 19,148,000 | 29,920,000 | 39,658,000 | ||
Interest expense, net | (7,723,000) | (7,673,000) | (15,743,000) | (15,716,000) | ||
Non-operating pension and other postretirment benefit (costs) income | [1] | (1,187,000) | 517,000 | (2,466,000) | 565,000 | |
Earnings (loss) before income taxes | 9,471,000 | 11,992,000 | 11,711,000 | 24,507,000 | ||
Income tax provision | (2,510,000) | (3,955,000) | (2,150,000) | (8,955,000) | ||
Net earnings (loss) | $ 6,961,000 | $ 8,037,000 | $ 9,561,000 | $ 15,552,000 | ||
Net earnings per common share: | ||||||
Basic (in dollars per share) | $ 0.42 | $ 0.49 | $ 0.58 | $ 0.94 | ||
Diluted (in dollars per share) | $ 0.42 | $ 0.48 | $ 0.58 | $ 0.94 | ||
|
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Net earnings | $ 6,961 | $ 8,037 | $ 9,561 | $ 15,552 |
Defined benefit pension and other postretirement employee benefits: | ||||
Amortization of actuarial loss included in net periodic cost, net of tax of $588, $234, $1,205 and $648 | 1,644 | 357 | 3,372 | 988 |
Amortization of prior service credit included in net periodic cost, net of tax of $(111), $(151), $(221) and $(302) | (308) | (231) | (617) | (461) |
Other comprehensive income (loss), net of tax | 1,336 | 126 | 2,755 | 527 |
Comprehensive income | $ 8,297 | $ 8,163 | $ 12,316 | $ 16,079 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Amortization of actuarial loss included in net periodic cost, tax expense | $ 588 | $ 234 | $ 1,205 | $ 648 |
Amortization of prior service credit included in net periodic cost, tax benefit | $ (111) | $ (151) | $ (221) | $ (302) |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Preferred stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0.00000 | 0.00000 |
Common stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,461,119.000000 | 16,447,898.000000 |
Nature of Operations and Basis of Presentation |
6 Months Ended |
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Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation GENERAL Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer relationships through quality and service. In the second half of 2017, we began a review of our selling, general and administrative cost structure as part of our effort to maintain our longer-term competitiveness. As a result of this review, in the fourth quarter of 2017 we began executing on a plan that is expected to result in lower selling, general and administrative expenses beginning in 2018. For the six months ended June 30, 2018, we incurred $6.2 million of expenses associated with these efforts, which consisted primarily of severance and professional services expenses. On March 31, 2017, we closed our Oklahoma City, Oklahoma facility. In the first half of 2017, we incurred $6.0 million of costs associated with this closure, which included $3.7 million in accelerated depreciation. FINANCIAL STATEMENT PREPARATION AND PRESENTATION The accompanying Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, the related Consolidated Statements of Operations, and Comprehensive Income for the three and six months ended June 30, 2018 and 2017, and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017, have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. We believe that all adjustments necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission, or SEC, on February 21, 2018. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain tax positions, assessment of impairment of long-lived assets, variable consideration or reductions to revenue, revenue recognition estimates related to allocating the transaction price to various performance obligations, goodwill and intangibles, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. CASH AND CASH EQUIVALENTS We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,678.6 million and $1,636.3 million at June 30, 2018 and December 31, 2017, respectively. For the six months ended June 30, 2018, we capitalized $2.6 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.6 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the six months ended June 30, 2017, we capitalized $1.8 million of interest expense associated with the continuous pulp digester project and $0.2 million associated with the Shelby paper machine. Consistent with authoritative guidance, we assess the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of June 30, 2018 and December 31, 2017, we had allowances for doubtful accounts of $1.3 million and $1.4 million, respectively. Refer to Note 15, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $60.0 million. For the quarter ended June 30, 2018, $22.0 million of receivables had been sold under the Account Purchase Agreement. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The recorded factoring expense on sale of receivables is less than $0.1 million for the quarter ended June 30, 2018 and is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have collection and administrative responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. STOCKHOLDERS’ EQUITY On December 15, 2015, we announced that our Board of Directors had approved a stock repurchase program authorizing the repurchase of up to $100 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time. In total, we have repurchased 1,440,696 shares of our outstanding common stock pursuant to this repurchase program, of which 84,750 shares were repurchased during the first half of 2017 at an average price of $57.53 per share. We did not repurchase shares during the first half of 2018. As of June 30, 2018, we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. DERIVATIVES We had no activity during the three and six months ended June 30, 2018 and 2017 that required hedge or derivative accounting treatment. To help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of June 30, 2018, these contracts covered approximately 29% of our expected average monthly natural gas requirements for the remainder of 2018. Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Recently Adopted and New Accounting Standards |
6 Months Ended |
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Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and New Accounting Standards | Recently Adopted and New Accounting Standards Recently Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to allow for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (Act). This ASU also requires certain disclosures about stranded tax effects. We adopted this standard on January 1, 2018, which resulted in the reclassification of $12.9 million between retained earnings and accumulated other comprehensive loss (AOCL), increasing retained earnings and AOCL within the equity section of our Consolidated Balance Sheet. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU was effective prospectively for annual periods beginning after December 15, 2017, including interim periods within those annual periods. We adopted this standard on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that an employer disaggregate the service cost component, presented within the "Cost of sales" and "Selling, general, and administrative" line items on our Consolidated Statements of Operations, from the other components of net periodic cost (benefit), which are now presented within the "Non-operating pension and other postretirement benefit (costs) income" line item in our Consolidated Statements of Operations. We adopted the standard effective January 1, 2018, which resulted in the retrospective presentation in the income statement of the disaggregated components and the prospective changes to the capitalized portion of both service cost and the other components within inventory. The adoption did not have a material impact on our consolidated financial statements. Refer to Note 10, "Pension and Other Postretirement Employee Benefit Plans," for further information, including the amounts associated with the reclassification of the components of net periodic cost as operating and non-operating. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the new standard is for companies to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. The standard requires enhanced disclosures about revenue, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. We adopted the new revenue guidance effective January 1, 2018 using the cumulative effect method, and did not have an adjustment to retained earnings upon adoption. The standard was applied to open contracts at the date of initial application. Aside from expanded disclosures, the adoption of Topic 606 did not have a material impact on our consolidated financial statement line items, processes, or internal controls. Refer to Note 1, "Nature of Operations and Basis of Presentation," for information about the basis of revenue recognition, and Note 15, "Segment Information," for further information including the disaggregation of revenue by segment, primary geographical market, and major product type. New Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We expect the adoption of this ASU will increase both our assets and liabilities presented on our Consolidated Balance Sheets to reflect the ROU assets and corresponding lease liabilities, as well as increase our leasing disclosures. As of December 31, 2017, the total future minimum lease payments for our operating leases totaled $75.3 million. We plan to adopt this standard on January 1, 2019. We are continuing our assessment and review of existing leases, implementing a leasing software solution, and addressing necessary policy and process changes in preparation for adoption. We reviewed all other new accounting pronouncements issued in the period and concluded that they are not applicable to our business. |
Inventories |
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Inventories | Inventories Inventories at the balance sheet dates consist of:
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Intangible Assets |
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets and Goodwill Intangible assets at the balance sheet dates are comprised of the following:
For the three months ended June 30, 2018 and 2017, intangible assets amortization expense was $2.0 million and $2.1 million, respectively. For the six months ended June 30, 2018 and 2017, intangible assets amortization expense was $3.9 million and $4.0 million, respectively. Goodwill is not amortized but is reviewed for impairment annually as of November 1 and at any time when events indicate impairment may have occurred. During the quarter ended June 30, 2018, we identified indicators of possible goodwill impairment for our Consumer Products reporting unit, namely the decline in actual results compared to the forecast used as part of our annual goodwill assessment performed in the fourth quarter of 2017, as well as a decline in our stock price. As a result, we performed a qualitative assessment and determined that it was more likely than not that the fair value of the reporting unit was greater than its carrying amount. Therefore, there was no impairment of goodwill as of June 30, 2018. |
Taxes |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Income Taxes Consistent with authoritative guidance, our estimated annual effective tax rate is used to allocate expected annual income tax expense to interim periods. The rate is the ratio of estimated annual income tax expense to estimated pre-tax ordinary income, and excludes "discrete items," which are significant, unusual or infrequent items reported separately net of their related tax effect. The estimated annual effective tax rate is applied to the current interim period's ordinary income to determine the income tax expense allocated to the interim period. The income tax effects of discrete items are then determined separately and recognized in the interim period in which the income or expense items arise. Our estimated annual effective tax rate applied to the second quarter of 2018 is approximately 26%, compared with approximately 33% for the comparable interim period in 2017. The decrease in the rate is primarily due to the rate reduction enacted with the Tax Cuts and Jobs Act. |
Accounts Payable and Accrued Liabilities |
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Accounts Payable and Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at the balance sheet dates consist of:
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Debt |
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Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | |
Debt | REVOLVING CREDIT FACILITIES As of June 30, 2018, there was an aggregate of $160.0 million in borrowings outstanding under the credit facilities and $7.6 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2017, there was an aggregate of $155.0 million in borrowings outstanding under the credit facilities. The borrowings outstanding under the revolving credit facilities as of June 30, 2018, consisted of short-term base and LIBOR rate loans and are classified as current liabilities in our Consolidated Balance Sheet. As of June 30, 2018, we would have been permitted to draw an additional $132.4 million under the credit facilities. Debt REVOLVING CREDIT FACILITIES As of June 30, 2018, there was an aggregate of $160.0 million in borrowings outstanding under the credit facilities and $7.6 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2017, there was an aggregate of $155.0 million in borrowings outstanding under the credit facilities. The borrowings outstanding under the revolving credit facilities as of June 30, 2018, consisted of short-term base and LIBOR rate loans and are classified as current liabilities in our Consolidated Balance Sheet. As of June 30, 2018, we would have been permitted to draw an additional $132.4 million under the credit facilities. |
Other Long-Term Obligations |
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Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Obligations | Other Long-Term Obligations Other long-term obligations at the balance sheet dates consist of:
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Reclassification out of Accumulated Other Comprehensive Income (Notes) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Text Block] | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax, is comprised of the following:
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Pension and Other Postretirement Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Employee Benefit Plans | Pension and Other Postretirement Employee Benefit Plans The following table details the components of net periodic cost of our company-sponsored pension and OPEB plans for the periods presented:
During the six months ended June 30, 2018 and 2017, we made no contributions to our qualified pension plans. We do not expect, nor are we required, to make contributions in 2018. During the six months ended June 30, 2018, we made contributions of $0.2 million to our company-sponsored non-qualified pension plan. We estimate contributions will total $0.4 million in 2018. We do not anticipate funding our OPEB plans in 2018 except to pay benefit costs as incurred during the year by plan participants. On January 1, 2018 we adopted ASU 2017-07, which allows for only the service cost component of net periodic cost to be included as an operating cost. The other components of net periodic costs are to be included as non-operating costs in the accompanying Consolidated Statements of Operations. During the three and six months ended June 30, 2018, $0.3 million and $0.5 million of net periodic pension and OPEB service costs were charged to "Cost of sales," $0.2 million and $0.4 million were charged to "Selling, general and administrative expenses," and $1.2 million and $2.5 million were charged to "Non-operating pension and other post retirement benefit (costs) income" in the accompanying Consolidated Statements of Operations, respectively. The adoption of ASU 2017-07 also required the reclassification of all prior period costs other than service costs from operating to non-operating. During the three and six months ended June 30, 2017, $0.3 million and $0.7 million of net periodic costs were charged to "Cost of sales," $0.2 million and $0.4 million were charged to "Selling, general and administrative expenses," and $0.5 million and $0.6 million of income was charged to "Non-operating pension and other postretirement benefit (costs) income" in the accompanying Consolidated Statements of Operations, respectively. |
Earnings per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Common Share | Earnings per Common Share Basic earnings per share are based on the weighted average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share:
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Equity-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-Based Compensation | Equity-Based Compensation We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including restricted stock units, or RSUs, performance shares and stock options, based on estimated fair values. EMPLOYEE AWARDS Employee equity-based compensation expense was recognized as follows:
As provided in the Clearwater Paper Corporation 2008 and 2017 Stock Incentive Plans, the following performance measures are used to determine the number of performance shares ultimately issuable:
The number of performance shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0%-200%. During the first six months of 2018, 19,133 RSUs were settled and distributed. After adjusting for minimum tax withholdings, a net 13,221 shares were issued. In connection with the issued RSUs, the minimum tax withholding payments made during the six months ended June 30, 2018 totaled $0.2 million. During the six months ended June 30, 2018, we had 4,731 stock option awards expire with a weighted-average exercise price of $64.31. At June 30, 2018, we had 300,021 stock option awards that were exercisable with a weighted-average exercise price of $63.18. The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the six months ended June 30, 2018 and the grant-date fair value of the awards:
DIRECTOR AWARDS Annually, each outside member of our Board of Directors receives deferred equity-based awards that are measured in units of our common stock and ultimately settled in cash at the time of payment. Accordingly, the compensation expense associated with these awards is subject to fluctuations each quarter based on mark-to-market adjustments at each reporting period in line with changes in the market price of our common stock. As a result of the mark-to-market adjustment, we recorded director equity-based compensation benefit of $2.0 million and $1.5 million for the three months ended June 30, 2018 and 2017, respectively. For the six months ended June 30, 2018 and 2017, we recorded director equity-based compensation benefit of $2.7 million and $2.9 million, respectively. As of June 30, 2018, the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" on the accompanying Consolidated Balance Sheet were $0.8 million and $1.2 million, respectively. At December 31, 2017, the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" totaled $3.6 million and $2.4 million , respectively. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The estimated fair values of our financial instruments at the dates presented below are as follows:
Accounting guidance establishes a framework for measuring the fair value of financial instruments, providing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities, or “Level 1” measurements, followed by quoted prices of similar assets or observable market data considering the assets' underlying maturities, or “Level 2” measurements, and the lowest priority to unobservable inputs, or “Level 3” measurements. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should seek to maximize the use of observable inputs and minimize the use of unobservable inputs. Cash and cash equivalents, borrowings under the revolving credit facilities and long-term debt are the only items measured at fair value on a recurring basis. We do not have any financial assets measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets held and used that are measured at fair value resulting from impairment, if deemed necessary. |
Business Interruption and Insurance Recovery |
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Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Business Insurance Recoveries [Text Block] | Business Interruption and Insurance Recovery In the first quarter of 2017, our financial statements included the impact of two separate fires, one of which occurred in the fourth quarter of 2016. Both claims were finalized in the first quarter of 2017 and the net proceeds from our insurance provider of $4.3 million was included in "Cost of Sales" in our Consolidated Statement of Operations for the six months ended June 30, 2017. There was no business interruption insurance activity in the six months ended June 30, 2018 at any of our facilities. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments:
For the six months ended June 30, 2018 and 2017, one customer, the Kroger Company, accounted for approximately 13.4% and 15.2%, respectively, of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows:
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Supplemental Guarantor Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information All of our subsidiaries that are 100% directly or indirectly owned by Clearwater Paper, guarantee our $275 million aggregate principal amount of 4.5% senior notes issued in January 2013 and due 2023, which we refer to as the 2013 Notes, on a full and unconditional, and joint and several basis. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor subsidiaries, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis. Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2017
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2017
Clearwater Paper Corporation Consolidating Balance Sheet At June 30, 2018
Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2017
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Nature of Operations and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2018 | |
Account Purchase Agreement [Line Items] | |
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $60.0 million. For the quarter ended June 30, 2018, $22.0 million of receivables had been sold under the Account Purchase Agreement. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The recorded factoring expense on sale of receivables is less than $0.1 million for the quarter ended June 30, 2018 and is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have collection and administrative responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. |
SIGNIFICANT ESTIMATES | SIGNIFICANT 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain tax positions, assessment of impairment of long-lived assets, variable consideration or reductions to revenue, revenue recognition estimates related to allocating the transaction price to various performance obligations, goodwill and intangibles, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. |
RESTRICTED CASH AND SHORT-TERM INVESTMENTS | CASH AND CASH EQUIVALENTS We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. |
TRADE ACCOUNTS RECEIVABLE | REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of June 30, 2018 and December 31, 2017, we had allowances for doubtful accounts of $1.3 million and $1.4 million, respectively. Refer to Note 15, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,678.6 million and $1,636.3 million at June 30, 2018 and December 31, 2017, respectively. For the six months ended June 30, 2018, we capitalized $2.6 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.6 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the six months ended June 30, 2017, we capitalized $1.8 million of interest expense associated with the continuous pulp digester project and $0.2 million associated with the Shelby paper machine. Consistent with authoritative guidance, we assess the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY On December 15, 2015, we announced that our Board of Directors had approved a stock repurchase program authorizing the repurchase of up to $100 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time. In total, we have repurchased 1,440,696 shares of our outstanding common stock pursuant to this repurchase program, of which 84,750 shares were repurchased during the first half of 2017 at an average price of $57.53 per share. We did not repurchase shares during the first half of 2018. As of June 30, 2018, we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. |
DERIVATIVES | DERIVATIVES We had no activity during the three and six months ended June 30, 2018 and 2017 that required hedge or derivative accounting treatment. To help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of June 30, 2018, these contracts covered approximately 29% of our expected average monthly natural gas requirements for the remainder of 2018. Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories at the balance sheet dates consist of:
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Intangible Assets (Tables) |
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible assets at the balance sheet dates are comprised of the following:
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Accounts Payable and Accrued Liabilities (Tables) |
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Accounts Payable and Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at the balance sheet dates consist of:
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Other Long-Term Obligations (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Obligations | Other long-term obligations at the balance sheet dates consist of:
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Reclassification out of Accumulated Other Comprehensive Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Accumulated other comprehensive loss, net of tax, is comprised of the following:
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Pension and Other Postretirement Employee Benefit Plans (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans | The following table details the components of net periodic cost of our company-sponsored pension and OPEB plans for the periods presented:
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Earnings per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings per Share | The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share:
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Equity-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Equity-Based Compensation Expense | Employee equity-based compensation expense was recognized as follows:
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Summary of Number of Share-Based Awards Granted | The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the six months ended June 30, 2018 and the grant-date fair value of the awards:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of our financial instruments at the dates presented below are as follows:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows:
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Reportable Segments Information | The table below presents information about our reportable segments:
For the six months ended June 30, 2018 and 2017, one customer, the Kroger Company, accounted for approximately 13.4% and 15.2%, respectively, of our total company net sales. Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments:
For the six months ended June 30, 2018 and 2017, one customer, the Kroger Company, accounted for approximately 13.4% and 15.2%, respectively, of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows:
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Supplemental Guarantor Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2017
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2017
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Condensed Consolidating Balance Sheet | Clearwater Paper Corporation Consolidating Balance Sheet At June 30, 2018
Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2017
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Condensed Consolidating Statement of Cash Flows | Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2018
Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2017
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Nature of Operations and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 22 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2017 |
Aug. 03, 2018 |
Dec. 31, 2017 |
Dec. 15, 2015 |
|
Nature of Operations | ||||||||
Incremental direct costs, short-term in nature, expensed when incurred | 12 months | |||||||
revenue recognition, payment terms | 30 days | |||||||
Severance Costs | $ 6.2 | |||||||
Allowance for doubtful accounts | 1.3 | $ 1.3 | $ 1.4 | |||||
Accumulated depreciation | 1,678.6 | 1,678.6 | $ 1,636.3 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 29.8 | $ 29.8 | ||||||
Percentage Of Expected Natural Gas Requirement Covered Under Contract | 29.00% | 29.00% | ||||||
Interest Costs Capitalized | $ 0.6 | $ 1.8 | ||||||
Shelby paper machine interest cost capitalized | $ 2.6 | 0.2 | ||||||
Entity Common Stock, Shares Outstanding | 16,461,119 | |||||||
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $60.0 million. For the quarter ended June 30, 2018, $22.0 million of receivables had been sold under the Account Purchase Agreement. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The recorded factoring expense on sale of receivables is less than $0.1 million for the quarter ended June 30, 2018 and is included in the "Selling, general and administrative expenses" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have collection and administrative responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. |
|||||||
Sale of Accounts Receivable | $ 22.0 | |||||||
Factoring Expense | 60.0 | $ 60.0 | ||||||
Factoring Expense | 0.1 | |||||||
Common Stock | ||||||||
Nature of Operations | ||||||||
Common stock repurchase authorized | $ 100.0 | |||||||
Number of shares repurchased (in shares) | 84,750 | 1,440,696 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 57.53 | |||||||
Consumer Products | ||||||||
Nature of Operations | ||||||||
Severance Costs | $ 0.2 | $ 1.7 | ||||||
Consumer Products | Oklahoma City [Domain] | ||||||||
Nature of Operations | ||||||||
Other Nonrecurring Expense, Planned Permaent Facility Closure | $ 0.3 | 6.0 | ||||||
Restructuring and Related Cost, Accelerated Depreciation | $ 3.7 |
Recently Adopted and New Accounting Standards Recently Adopted and New Accounting Standards (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | $ (12,852) | |
Operating Leases, Future Minimum Payments Due | $ 75,300 |
Inventories (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Pulp, paperboard and tissue products | $ 163,426 | $ 165,281 |
Materials and supplies | 87,369 | 85,987 |
Logs, pulpwood, chips and sawdust | 11,418 | 14,775 |
Inventories | $ 262,213 | $ 266,043 |
Taxes - Additional Information (Detail) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018
Rate
|
Jun. 30, 2017
Rate
|
|
Operating Loss Carryforwards [Line Items] | ||
Estimated Annual Effective Tax Rate | 26.00% | 33.00% |
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 271,781 | $ 169,293 |
Accrued wages, salaries and employee benefits | 37,485 | 41,979 |
Accrued discounts and allowances | 8,332 | 7,283 |
Accrued taxes other than income taxes payable | 6,495 | 6,907 |
Accrued utilities | 6,087 | 6,759 |
Accrued interest | 12,400 | 12,723 |
Other | 15,008 | 11,677 |
Accounts payable and accrued liabilities | $ 357,588 | $ 256,621 |
Debt - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
Jan. 21, 2013 |
|
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 159,971 | $ 154,882 | ||
Line of Credit, Current | 160,000 | 155,000 | ||
Repayments of Lines of Credit | 119,063 | $ 144,000 | ||
Senior Notes Due Twenty Twenty-Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 275,000 | |||
Debt instrument, interest rate | 4.50% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding stand by letters of credit | 7,600 | |||
Credit facility available to draw | 132,400 | |||
Reported Value Measurement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 160,000 | $ 155,000 |
Other Long-Term Obligations (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Other Liabilities, Noncurrent [Abstract] | ||
Long-term lease obligations, net of current portion | $ 25,778 | $ 26,460 |
Deferred proceeds | 5,043 | 5,576 |
Deferred compensation | 2,586 | 5,023 |
Other | 4,327 | 6,216 |
Other long-term obligations | $ 37,734 | $ 43,275 |
Pension and Other Postretirement Employee Benefit Plans Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans (Detail 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Pension Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 461 | $ 474 | $ 895 | $ 1,034 |
Interest cost | 3,010 | 3,296 | 6,010 | 6,574 |
Expected return on plan assets | (4,247) | (4,688) | (8,501) | (9,382) |
Amortization of prior service cost (credit) | 0 | 2 | 0 | 4 |
Amortization of actuarial loss | 2,458 | 2,412 | 5,028 | 4,937 |
Net periodic cost | 1,682 | 1,496 | 3,432 | 3,167 |
Other Postretirement Employee Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 20 | 13 | 68 | 81 |
Interest cost | 611 | 667 | 1,218 | 1,371 |
Expected return on plan assets | 0 | (1) | 0 | (1) |
Amortization of prior service cost (credit) | (419) | (384) | (838) | (767) |
Amortization of actuarial loss | (226) | (1,821) | (451) | (3,301) |
Net periodic cost | (14) | (1,526) | (3) | (2,617) |
Selling, General and Administrative Expenses [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 200 | 200 | 400 | 400 |
Cost of Sales [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | $ 300 | $ 300 | $ 500 | $ 700 |
Earnings per Common Share Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings Per Share (Detail) - $ / shares |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Basic average common shares outstanding | 16,486,935.000 | [1] | 16,457,196.000 | [1] | 16,491,366.000 | 16,470,525.000 | ||
Incremental shares due to: | ||||||||
Restricted stock units | 20,970.00 | 37,703.000 | 29,530.00 | 35,922.000 | ||||
Performance shares | 47,266.000 | 78,351.000 | 52,051.000 | 74,975.000 | ||||
Incremental Common Shares Attributable to Stock Options | 0 | 16,868.000 | 90.00 | 30,636 | ||||
Diluted average common shares outstanding | 16,555,171.000 | 16,590,118.000 | 16,573,037 | 16,612,058 | ||||
Basic net earnings per common share (in dollars per share) | $ 0.42 | $ 0.49 | $ 0.58 | $ 0.94 | ||||
Diluted net earnings per common share (in dollars per share) | $ 0.42 | $ 0.48 | $ 0.58 | $ 0.94 | ||||
Anti-dilutive shares excluded from calculation | 1,029,983.000 | 515,322.000 | 912,863.000 | 493,150.00 | ||||
|
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance share payout measured by total shareholder return | 0.00% | 0.00% | |||
Percentage of performance share payout measured by return on invested capital | 0.00% | 0.00% | 0.00% | 0.00% | |
Allocated Share-based Compensation Expense | $ 1,552 | $ 1,869 | $ 3,042 | $ 3,336 | |
Cash paid for minimum tax withholdings | $ 220 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 4,731 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 64.31 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 300,021 | 300,021 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 63.18 | $ 63.18 | |||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 377 | 630 | $ 910 | 1,226 | |
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 582 | 503 | $ 1,004 | 795 | |
Shares issued (in shares) | 13,221 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 19,133 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 593 | 736 | $ 1,128 | 1,315 | |
Options, Grants in Period, Gross | 196,488 | ||||
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | (2,000) | $ (1,500) | $ (2,700) | $ (2,900) | |
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | 1,200 | 1,200 | $ 3,600 | ||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ 800 | $ 800 | $ 2,400 | ||
Minimum | Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 0.00% | 0.00% | |||
Maximum | Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 200.00% | 200.00% |
Equity-Based Compensation Employee Equity Based Compensation Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 1,552 | $ 1,869 | $ 3,042 | $ 3,336 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 582 | 503 | 1,004 | 795 |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 377 | 630 | 910 | 1,226 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 593 | $ 736 | $ 1,128 | $ 1,315 |
Equity-Based Compensation Summary of Number of Share-Based Awards Granted (Detail) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of performance share payout measured by total shareholder return | 0.00% | |
Percentage of performance share payout measured by return on invested capital | 0.00% | 0.00% |
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% | |
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% | |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of share-based awards granted | 49,040 | |
Grant-date fair value of awards per share | $ 37.45 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of share-based awards granted | 108,816 | |
Grant-date fair value of awards per share | $ 37.45 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant-date fair value of awards per share | $ 14.51 | |
Options, Grants in Period, Gross | 196,488 |
Fair Value Measurements Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 159,971 | $ 154,882 |
Line of Credit, Current | 160,000 | 155,000 |
Cash, restricted cash, and short-term investments (Level 1) | 53,278 | 15,738 |
Long-term debt (Level 1) | 525,625 | 569,250 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 160,000 | 155,000 |
Cash, restricted cash, and short-term investments (Level 1) | 53,278 | 15,738 |
Long-term debt (Level 1) | $ 575,000 | $ 575,000 |
Business Interruption and Insurance Recovery (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Segment Reporting Information [Line Items] | |
Gain on Business Interruption Insurance Recovery | $ 4.3 |
Segment Information Reportable Segments Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 432,099,000 | $ 429,663,000 | $ 869,051,000 | $ 867,188,000 | ||||||||
Income (loss) from operations | 18,381,000 | 19,148,000 | 29,920,000 | 39,658,000 | ||||||||
Interest expense, net | (7,723,000) | (7,673,000) | (15,743,000) | (15,716,000) | ||||||||
Non-operating pension and other postretirment benefit (costs) income | [1] | 1,187,000 | (517,000) | 2,466,000 | (565,000) | |||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9,471,000 | 11,992,000 | 11,711,000 | 24,507,000 | ||||||||
Depreciation and amortization | 25,177,000 | 26,055,000 | $ 50,344,000 | $ 53,612,000 | ||||||||
Severance Costs | 6,200,000 | |||||||||||
Concentration Risk, Percentage | 13.40% | 15.20% | ||||||||||
Consumer Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 221,585,000 | 231,912,000 | $ 460,427,000 | $ 474,335,000 | ||||||||
Income (loss) from operations | (3,604,000) | [1],[2],[3] | 10,698,000 | [1],[2],[3] | (1,975,000) | 16,902,000 | ||||||
Depreciation and amortization | 14,220,000 | [2] | 16,292,000 | [2] | 28,517,000 | 34,534,000 | ||||||
Severance Costs | 200,000 | 1,700,000 | ||||||||||
Pulp and Paperboard | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 210,514,000 | 197,751,000 | 408,624,000 | 392,853,000 | ||||||||
Income (loss) from operations | 34,192,000 | [1],[3] | 21,071,000 | [1],[3] | 60,346,000 | 48,271,000 | ||||||
Depreciation and amortization | 9,361,000 | 8,356,000 | 18,790,000 | 16,461,000 | ||||||||
Severance Costs | 100,000 | 400,000 | ||||||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income (loss) from operations | 30,588,000 | 31,769,000 | 58,371,000 | 65,173,000 | ||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income (loss) from operations | (12,207,000) | [1],[3] | (12,621,000) | [1],[3] | (28,451,000) | (25,515,000) | ||||||
Depreciation and amortization | 1,596,000 | 1,407,000 | 3,037,000 | 2,617,000 | ||||||||
Severance Costs | 800,000 | 4,100,000 | ||||||||||
Oklahoma City [Domain] | Consumer Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Other Nonrecurring Expense, Planned Permaent Facility Closure | 300,000 | 6,000,000 | ||||||||||
Restructuring and Related Cost, Accelerated Depreciation | 3,700,000 | |||||||||||
Non-US [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 19,868,000 | 19,787,000 | 36,000,000 | 35,345,000 | ||||||||
UNITED STATES | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 412,231,000 | 409,876,000 | 833,051,000 | 831,843,000 | ||||||||
Retail tissue [Domain] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 197,767,000 | 211,589,000 | 418,652,000 | 429,726,000 | ||||||||
Paperboard [Domain] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 210,514,000 | 197,751,000 | 408,624,000 | 392,853,000 | ||||||||
Non-retail tissue [Domain] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 23,765,000 | 19,966,000 | 40,724,000 | 43,959,000 | ||||||||
Other [Domain] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 53,000 | $ 357,000 | $ 1,051,000 | $ 650,000 | ||||||||
|
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jan. 21, 2013 |
|||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net sales | $ 432,099,000 | $ 429,663,000 | $ 869,051,000 | $ 867,188,000 | |||
Cost and expenses: | |||||||
Cost of sales | (387,154,000) | (381,061,000) | (779,587,000) | (768,121,000) | |||
Selling, general and administrative expenses | (26,564,000) | (29,454,000) | (59,544,000) | (59,409,000) | |||
Total operating costs and expenses | (413,718,000) | (410,515,000) | (839,131,000) | (827,530,000) | |||
Income (loss) from operations | 18,381,000 | 19,148,000 | 29,920,000 | 39,658,000 | |||
Interest expense, net | (7,723,000) | (7,673,000) | (15,743,000) | (15,716,000) | |||
Non-operating pension and other postretirment benefit (costs) income | [1] | (1,187,000) | 517,000 | (2,466,000) | 565,000 | ||
Earnings (loss) before income taxes | 9,471,000 | 11,992,000 | 11,711,000 | 24,507,000 | |||
Income tax (provision) benefit | (2,510,000) | (3,955,000) | (2,150,000) | (8,955,000) | |||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 | |||
Net earnings (loss) | 6,961,000 | 8,037,000 | 9,561,000 | 15,552,000 | |||
Other comprehensive income, net of tax | 1,336,000 | 126,000 | 2,755,000 | 527,000 | |||
Comprehensive income | 8,297,000 | 8,163,000 | 12,316,000 | 16,079,000 | |||
Issuer | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net sales | 433,826,000 | 419,540,000 | 889,003,000 | 839,755,000 | |||
Cost and expenses: | |||||||
Cost of sales | (394,260,000) | (376,112,000) | (807,217,000) | (750,593,000) | |||
Selling, general and administrative expenses | (21,226,000) | (23,411,000) | (48,858,000) | (46,976,000) | |||
Total operating costs and expenses | (415,486,000) | (399,523,000) | (856,075,000) | (797,569,000) | |||
Income (loss) from operations | 18,340,000 | 20,017,000 | 32,928,000 | 42,186,000 | |||
Interest expense, net | (7,627,000) | (7,582,000) | (15,556,000) | (15,574,000) | |||
Non-operating pension and other postretirment benefit (costs) income | (1,187,000) | 517,000 | (2,466,000) | 565,000 | |||
Earnings (loss) before income taxes | 9,526,000 | 12,952,000 | 14,906,000 | 27,177,000 | |||
Income tax (provision) benefit | (2,574,000) | (4,224,000) | (2,956,000) | (10,010,000) | |||
Equity in income (loss) of subsidiary | 775,000 | (172,000) | 1,176,000 | 243,000 | |||
Net earnings (loss) | 7,727,000 | 8,556,000 | 13,126,000 | 17,410,000 | |||
Other comprehensive income, net of tax | 1,336,000 | 126,000 | 2,755,000 | 527,000 | |||
Comprehensive income | 9,063,000 | 8,682,000 | 15,881,000 | 17,937,000 | |||
Guarantor Subsidiaries | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net sales | 54,313,000 | 63,956,000 | 100,526,000 | 140,505,000 | |||
Cost and expenses: | |||||||
Cost of sales | (47,918,000) | (57,942,000) | (88,278,000) | (127,680,000) | |||
Selling, general and administrative expenses | (5,338,000) | (6,043,000) | (10,686,000) | (12,433,000) | |||
Total operating costs and expenses | (53,256,000) | (63,985,000) | (98,964,000) | (140,113,000) | |||
Income (loss) from operations | 1,057,000 | (29,000) | 1,562,000 | 392,000 | |||
Interest expense, net | (96,000) | (91,000) | (187,000) | (142,000) | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | 0 | 0 | |||
Earnings (loss) before income taxes | 961,000 | (120,000) | 1,375,000 | 250,000 | |||
Income tax (provision) benefit | (186,000) | (52,000) | (199,000) | (7,000) | |||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 | |||
Net earnings (loss) | 775,000 | (172,000) | 1,176,000 | 243,000 | |||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | |||
Comprehensive income | 775,000 | (172,000) | 1,176,000 | 243,000 | |||
Eliminations | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net sales | (56,040,000) | (53,833,000) | (120,478,000) | (113,072,000) | |||
Cost and expenses: | |||||||
Cost of sales | 55,024,000 | 52,993,000 | 115,908,000 | 110,152,000 | |||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |||
Total operating costs and expenses | 55,024,000 | 52,993,000 | 115,908,000 | 110,152,000 | |||
Income (loss) from operations | (1,016,000) | (840,000) | (4,570,000) | (2,920,000) | |||
Interest expense, net | 0 | 0 | 0 | 0 | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | 0 | 0 | |||
Earnings (loss) before income taxes | (1,016,000) | (840,000) | (4,570,000) | (2,920,000) | |||
Income tax (provision) benefit | 250,000 | 321,000 | 1,005,000 | 1,062,000 | |||
Equity in income (loss) of subsidiary | (775,000) | 172,000 | (1,176,000) | (243,000) | |||
Net earnings (loss) | (1,541,000) | (347,000) | (4,741,000) | (2,101,000) | |||
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 | |||
Comprehensive income | $ (1,541,000) | $ (347,000) | $ (4,741,000) | $ (2,101,000) | |||
Senior Notes Due Twenty Twenty-Three [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Debt Instrument, Face Amount | $ 275,000,000 | ||||||
Cost and expenses: | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||
|
Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Current assets: | ||||
Cash | $ 53,278 | $ 15,738 | $ 8,519 | $ 23,001 |
Receivables, net | 118,726 | 142,065 | ||
Taxes receivable | 8,784 | 20,282 | ||
Inventories | 262,213 | 266,043 | ||
Other Assets, Current | 8,132 | 8,661 | ||
Total current assets | 451,133 | 452,789 | ||
Property, plant and equipment, net | 1,171,368 | 1,050,982 | ||
Goodwill | 244,161 | 244,161 | ||
Intangible assets, net | 28,642 | 32,542 | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 24,093 | 21,778 | ||
TOTAL ASSETS | 1,919,397 | 1,802,252 | ||
Line of Credit, Current | 160,000 | 155,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 357,588 | 256,621 | ||
Current liability for pensions and other postretirement employee benefits | 7,631 | 7,631 | ||
Total current liabilities | 525,219 | 419,252 | ||
Long-term debt | 570,908 | 570,524 | ||
Liability for pensions and other postretirement employee benefits | 69,504 | 72,469 | ||
Other long-term obligations | 37,734 | 43,275 | ||
Accrued taxes | 3,116 | 2,770 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 122,347 | 118,528 | ||
Liabilities | 1,328,828 | 1,226,818 | ||
Accumulated other comprehensive loss, net of tax | (54,080) | (43,983) | ||
Stockholders' equity excluding accumulated other comprehensive loss | 644,649 | 619,417 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,919,397 | 1,802,252 | ||
Issuer | ||||
Current assets: | ||||
Cash | 53,278 | 15,738 | 8,519 | 19,586 |
Receivables, net | 95,309 | 125,001 | ||
Taxes receivable | 8,740 | 20,242 | ||
Inventories | 221,994 | 228,311 | ||
Other Assets, Current | 7,877 | 8,587 | ||
Total current assets | 387,198 | 397,879 | ||
Property, plant and equipment, net | 1,063,183 | 936,659 | ||
Goodwill | 244,161 | 244,161 | ||
Intangible assets, net | 1,567 | 2,089 | ||
Intercompany receivable (payable) | (6,795) | (2,807) | ||
Investment in subsidiary | 158,176 | 157,000 | ||
Other assets, net | 23,114 | 21,413 | ||
TOTAL ASSETS | 1,870,604 | 1,756,394 | ||
Line of Credit, Current | 160,000 | 155,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 333,307 | 235,439 | ||
Current liability for pensions and other postretirement employee benefits | 7,631 | 7,631 | ||
Total current liabilities | 500,938 | 398,070 | ||
Long-term debt | 570,908 | 570,524 | ||
Liability for pensions and other postretirement employee benefits | 69,504 | 72,469 | ||
Other long-term obligations | 37,734 | 43,275 | ||
Accrued taxes | 2,262 | 1,928 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 98,689 | 94,694 | ||
Liabilities | 1,280,035 | 1,180,960 | ||
Accumulated other comprehensive loss, net of tax | (54,080) | (43,983) | ||
Stockholders' equity excluding accumulated other comprehensive loss | 644,649 | 619,417 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,870,604 | 1,756,394 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash | 0 | 0 | 0 | 3,415 |
Receivables, net | 23,417 | 17,064 | ||
Taxes receivable | 44 | 40 | ||
Inventories | 44,789 | 41,594 | ||
Other Assets, Current | 255 | 74 | ||
Total current assets | 68,505 | 58,772 | ||
Property, plant and equipment, net | 108,185 | 114,323 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 27,075 | 30,453 | ||
Intercompany receivable (payable) | 2,225 | (1,055) | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 3,391 | 2,696 | ||
TOTAL ASSETS | 209,381 | 205,189 | ||
Line of Credit, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 24,281 | 21,182 | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | 24,281 | 21,182 | ||
Long-term debt | 0 | 0 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Other long-term obligations | 0 | 0 | ||
Accrued taxes | 854 | 842 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 26,070 | 26,165 | ||
Liabilities | 51,205 | 48,189 | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders' equity excluding accumulated other comprehensive loss | 158,176 | 157,000 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 209,381 | 205,189 | ||
Eliminations | ||||
Current assets: | ||||
Cash | 0 | 0 | $ 0 | $ 0 |
Receivables, net | 0 | 0 | ||
Taxes receivable | 0 | 0 | ||
Inventories | (4,570) | (3,862) | ||
Other Assets, Current | 0 | 0 | ||
Total current assets | (4,570) | (3,862) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivable (payable) | 4,570 | 3,862 | ||
Investment in subsidiary | (158,176) | (157,000) | ||
Other assets, net | (2,412) | (2,331) | ||
TOTAL ASSETS | (160,588) | (159,331) | ||
Line of Credit, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Other long-term obligations | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Deferred Tax Liabilities, Gross, Noncurrent | (2,412) | (2,331) | ||
Liabilities | (2,412) | (2,331) | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders' equity excluding accumulated other comprehensive loss | (158,176) | (157,000) | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ (160,588) | $ (159,331) |
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | $ 6,961 | $ 8,037 | $ 9,561 | $ 15,552 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 25,177 | 26,055 | 50,344 | 53,612 |
Deferred tax expense (benefit) | 2,649 | 7,891 | ||
Employee benefit plans | (326) | 2,183 | ||
Amortization of Financing Costs and Discounts | 716 | 598 | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 427 | 1,072 | ||
Changes in working capital, net | 36,317 | 23,742 | ||
Change in taxes receivable, net | 11,498 | 4,229 | ||
Other Operating Activities, Cash Flow Statement | (962) | (914) | ||
Net cash provided by operating activities | 110,876 | 103,599 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (78,600) | (85,709) | ||
Payments for (Proceeds from) Other Investing Activities | 807 | 417 | ||
Net cash used for investing activities | (77,793) | (85,292) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | 0 | (4,875) | ||
Investment (to) from Parent | 0 | 0 | ||
Proceeds from Lines of Credit | 124,063 | 117,000 | ||
Repayments of Lines of Credit | (119,063) | (144,000) | ||
Payment of tax withholdings on equity-based payment arrangements | (220) | |||
Proceeds from (Payments for) Other Financing Activities | (543) | (914) | ||
Net cash (used for) provided by financing activities | 4,457 | (32,789) | ||
Increase (decrease) in cash and cash equivalents | 37,540 | (14,482) | ||
Cash at beginning of period | 15,738 | 23,001 | ||
Cash at end of period | 53,278 | 8,519 | 53,278 | 8,519 |
Issuer | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 7,727 | 8,556 | 13,126 | 17,410 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 39,905 | 37,335 | ||
Deferred tax expense (benefit) | 2,979 | 7,183 | ||
Employee benefit plans | (326) | 2,183 | ||
Amortization of Financing Costs and Discounts | 716 | 598 | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 431 | 727 | ||
Changes in working capital, net | 41,660 | (29,619) | ||
Change in taxes receivable, net | 11,502 | 9,710 | ||
Other Operating Activities, Cash Flow Statement | (436) | (373) | ||
Net cash provided by operating activities | 110,209 | 40,788 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (77,257) | (82,582) | ||
Payments for (Proceeds from) Other Investing Activities | 793 | 20 | ||
Net cash used for investing activities | (76,464) | (82,562) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | (4,875) | |||
Investment (to) from Parent | (662) | 63,496 | ||
Proceeds from Lines of Credit | 124,063 | 117,000 | ||
Repayments of Lines of Credit | (119,063) | (144,000) | ||
Proceeds from (Payments for) Other Financing Activities | (543) | (914) | ||
Net cash (used for) provided by financing activities | 3,795 | 30,707 | ||
Increase (decrease) in cash and cash equivalents | 37,540 | (11,067) | ||
Cash at beginning of period | 15,738 | 19,586 | ||
Cash at end of period | 53,278 | 8,519 | 53,278 | 8,519 |
Guarantor Subsidiaries | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 775 | (172) | 1,176 | 243 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 10,439 | 16,277 | ||
Deferred tax expense (benefit) | (330) | 708 | ||
Employee benefit plans | 0 | 0 | ||
Amortization of Financing Costs and Discounts | 0 | 0 | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (4) | 345 | ||
Changes in working capital, net | (6,051) | 46,811 | ||
Change in taxes receivable, net | (4) | 6 | ||
Other Operating Activities, Cash Flow Statement | (526) | (541) | ||
Net cash provided by operating activities | 4,700 | 63,849 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (1,343) | (3,127) | ||
Payments for (Proceeds from) Other Investing Activities | 14 | 397 | ||
Net cash used for investing activities | (1,329) | (2,730) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | 0 | |||
Investment (to) from Parent | (3,371) | (64,534) | ||
Proceeds from Lines of Credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | (3,371) | (64,534) | ||
Increase (decrease) in cash and cash equivalents | 0 | (3,415) | ||
Cash at beginning of period | 0 | 3,415 | ||
Cash at end of period | 0 | 0 | 0 | 0 |
Eliminations | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | (1,541) | (347) | (4,741) | (2,101) |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 0 | 0 | ||
Deferred tax expense (benefit) | 0 | 0 | ||
Employee benefit plans | 0 | 0 | ||
Amortization of Financing Costs and Discounts | 0 | 0 | ||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | 0 | ||
Changes in working capital, net | 708 | 6,550 | ||
Change in taxes receivable, net | 0 | (5,487) | ||
Other Operating Activities, Cash Flow Statement | 0 | 0 | ||
Net cash provided by operating activities | (4,033) | (1,038) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | 0 | 0 | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||
Net cash used for investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | 0 | |||
Investment (to) from Parent | 4,033 | 1,038 | ||
Proceeds from Lines of Credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | 4,033 | 1,038 | ||
Increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash at beginning of period | 0 | 0 | ||
Cash at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
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