ý | ANNUAL 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) | (IRS Employer Identification No.) | |
601 W. Riverside Avenue, Suite 1100 | ||
Spokane, Washington | 99201 | |
(Address of principal executive offices) | (Zip Code) |
TITLE OF EACH CLASS | NAME OF EACH EXCHANGE ON WHICH REGISTERED | |
Common Stock ($0.0001 par value per share) | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
PAGE NUMBER | ||
PART I | ||
ITEM 1. | Business | |
ITEM 1A. | Risk Factors | |
ITEM 1B. | Unresolved Staff Comments | |
ITEM 2. | Properties | |
ITEM 3. | Legal Proceedings | |
ITEM 4. | Mine Safety Disclosures | |
PART II | ||
ITEM 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
ITEM 6. | Selected Financial Data | |
ITEM 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risks | |
ITEM 8. | Financial Statements and Supplementary Data | |
ITEM 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
ITEM 9A. | Controls and Procedures | 91-92 |
ITEM 9B. | Other Information | |
PART III | ||
ITEM 10. | Directors, Executive Officers and Corporate Governance | |
ITEM 11. | Executive Compensation | |
ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
ITEM 13. | Certain Relationships and Related Transactions, and Director Independence | |
ITEM 14. | Principal Accounting Fees and Services | |
PART IV | ||
ITEM 15. | Exhibits, Financial Statement Schedules | |
ITEM 16. | Form 10-K Summary | |
SIGNATURES |
• | 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 regard to, or reduction in, orders from a significant customer; |
• | changes in customer product preferences and competitors' product offerings; |
• | our ability to complete construction of our new tissue manufacturing operations in Shelby, North Carolina on time and within current cost expectations; |
• | 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 they are completed; |
• | consolidation and vertical integration of converting operations in the paperboard industry; |
• | our ability to successfully implement our operational efficiencies and cost savings strategies, along with related capital projects, and achieve the expected operational or financial results of those projects, including from the continuous digester at our Lewiston, Idaho facility; |
• | changes in the cost and availability of wood fiber and wood pulp; |
• | changes in transportation costs and disruptions in transportation services; |
• | labor disruptions; |
• | changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; |
• | manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunctions and damage to our manufacturing facilities; |
• | changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; |
• | larger competitors having operational and other advantages; |
• | cyclical industry conditions; |
• | changes in expenses, required contributions and potential withdrawal costs 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 attract, motivate, train and retain qualified and key personnel; |
• | material weaknesses in our internal control over financial reporting; |
• | our substantial indebtedness and 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. |
ITEM 1. | |
Business |
CONTRACT EXPIRATION DATE | DIVISION AND LOCATION | UNION | APPROXIMATE NUMBER OF HOURLY EMPLOYEES | |
August 31, 2017 | Consumer Products Division & Pulp & Paperboard Division - Lewiston, Idaho | United Steel Workers (USW) | 855 | |
August 31, 2017 | Consumer Products Division & Pulp & Paperboard Division - Lewiston, Idaho | International Brotherhood of Electrical Workers (IBEW) | 60 | |
May 31, 2018 | Pulp & Paperboard Division - Lewiston, Idaho, No. 4 Power Boiler Unit | International Association of Machinists (IAM) | 30 |
CONTRACT EXPIRATION DATE | DIVISION AND LOCATION | UNION | APPROXIMATE NUMBER OF HOURLY EMPLOYEES | |
July 31, 2019 | Pulp & Paperboard Division - Cypress Bend, Arkansas | United Steel Workers (USW) | 260 |
ITEM 1A. | |
Risk Factors |
• | undergo a change in control; |
• | sell assets; |
• | pay dividends and make other distributions; |
• | make investments and other restricted payments; |
• | redeem or repurchase our capital stock; |
• | incur additional debt and issue preferred stock; |
• | create liens; |
• | consolidate, merge, or sell substantially all of our assets; |
• | enter into certain transactions with our affiliates; |
• | engage in new lines of business; and |
• | enter into sale and lease-back transactions. |
• | a classified Board of Directors with three-year staggered terms; |
• | the ability of our Board of Directors to issue shares of preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval; |
• | stockholder action can only be taken at a special or regular meeting and not by written consent; |
• | advance notice procedures for nominating candidates to our Board of Directors or presenting matters at stockholder meetings; |
• | removal of directors only for cause; |
• | allowing only our Board of Directors to fill vacancies on our Board of Directors; and |
• | supermajority voting requirements to amend our bylaws and certain provisions of our certificate of incorporation. |
ITEM 1B. | |
Unresolved Staff Comments |
ITEM 2. | |
Properties |
USE | LEASED OR OWNED | CAPACITY1 | PRODUCTION1 | |||||||||
CONSUMER PRODUCTS | ||||||||||||
Tissue Manufacturing Facilities: | ||||||||||||
Las Vegas, Nevada | TAD tissue | Owned | 39,000 | tons | 36,000 | tons | ||||||
Lewiston, Idaho | Tissue | Owned | 190,000 | tons | 187,000 | tons | ||||||
Neenah, Wisconsin | Tissue | Owned | 54,000 | tons | 52,000 | tons | ||||||
Shelby, North Carolina3 | TAD tissue | Owned/Leased | 77,000 | tons | 72,000 | tons | ||||||
360,000 | tons | 347,000 | tons | |||||||||
Tissue Converting Facilities: | ||||||||||||
Elwood, Illinois2 | Tissue converting | Owned/Leased | 73,000 | tons | 66,000 | tons | ||||||
Las Vegas, Nevada | Tissue converting | Owned | 64,000 | tons | 60,000 | tons | ||||||
Lewiston, Idaho | Tissue converting | Owned | 90,000 | tons | 62,000 | tons | ||||||
Neenah, Wisconsin | Tissue converting | Owned | 70,000 | tons | 55,000 | tons | ||||||
Shelby, North Carolina3 | Tissue converting | Owned/Leased | 108,000 | tons | 72,000 | tons | ||||||
405,000 | tons | 315,000 | tons | |||||||||
PULP AND PAPERBOARD | ||||||||||||
Pulp Mills: | ||||||||||||
Cypress Bend, Arkansas | Pulp | Owned | 314,000 | tons | 303,000 | tons | ||||||
Lewiston, Idaho | Pulp | Owned | 590,000 | tons | 535,000 | tons | ||||||
904,000 | tons | 838,000 | tons | |||||||||
Bleached Paperboard Mills: | ||||||||||||
Cypress Bend, Arkansas | Paperboard | Owned | 360,000 | tons | 335,000 | tons | ||||||
Lewiston, Idaho | Paperboard | Owned | 480,000 | tons | 475,000 | tons | ||||||
840,000 | tons | 810,000 | tons | |||||||||
Sheeted Paperboard Facilities: | ||||||||||||
Mendon, Michigan2 | Paperboard sheeting | Owned/Leased | 50,000 | tons | 36,000 | tons | ||||||
Wilkes-Barre, Pennsylvania2 | Paperboard sheeting | Owned/Leased | 40,000 | tons | 23,000 | tons | ||||||
Dallas, Texas2 | Paperboard sheeting | Owned/Leased | 36,000 | tons | 16,000 | tons | ||||||
Richmond, Virginia2 | Paperboard sheeting | Owned/Leased | 35,000 | tons | 20,000 | tons | ||||||
Hagerstown, Indiana2 | Paperboard sheeting | Owned/Leased | 32,000 | tons | 26,000 | tons | ||||||
193,000 | tons | 121,000 | tons | |||||||||
Columbia City, Oregon | Chip shipment | Leased | N/A | N/A | ||||||||
Clarkston, Washington | Wood chipping | Owned | N/A | N/A | ||||||||
CORPORATE | ||||||||||||
Alpharetta, Georgia | Operations and administration | Leased | N/A | N/A | ||||||||
Spokane, Washington | Corporate headquarters | Leased | N/A | N/A |
1 | Production amounts are approximations for full year 2018 and capacity amounts represent permitted capacities as of December 31, 2018. Annual capacity is an estimate based on assumptions and judgments concerning, among other things, both market demand and product mix, which change from time-to-time. |
2 | The buildings located at these facilities are leased by Clearwater Paper or a wholly-owned subsidiary, and the operating equipment located within the buildings are owned by Clearwater Paper or a wholly-owned subsidiary. |
3 | Some of the buildings located at the Shelby, North Carolina facility are leased by Clearwater Paper or a wholly-owned subsidiary, some buildings are owned, and the operating equipment located within the buildings is owned by Clearwater Paper or a wholly-owned subsidiary. |
ITEM 3. | |
Legal Proceedings |
ITEM 4. | |
Mine Safety Disclosures |
ITEM 5. | |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
ITEM 6. | |
Selected Financial Data |
(In thousands, except net earnings (loss) per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Net sales | $ | 1,724,218 | $ | 1,730,408 | $ | 1,734,763 | $ | 1,752,401 | $ | 1,967,139 | ||||||||||
(Loss) income from operations1 | (97,909 | ) | 71,185 | 114,764 | 123,670 | 79,811 | ||||||||||||||
Net (loss) earnings1,2 | (143,767 | ) | 97,339 | 49,554 | 55,983 | (2,315 | ) | |||||||||||||
Working capital3 | (5,348 | ) | 33,537 | 79,975 | 199,010 | 302,069 | ||||||||||||||
Long-term debt, net of current portion | 671,292 | 570,524 | 569,755 | 568,987 | 568,221 | |||||||||||||||
Stockholders’ equity | 426,396 | 575,434 | 469,873 | 474,866 | 497,537 | |||||||||||||||
Capital expenditures | 337,950 | 198,685 | 155,677 | 134,104 | 99,600 | |||||||||||||||
Property, plant and equipment, net | 1,269,271 | 1,050,982 | 945,328 | 866,538 | 810,987 | |||||||||||||||
Total assets | 1,788,118 | 1,802,252 | 1,684,342 | 1,527,369 | 1,579,149 | |||||||||||||||
Net (loss) earnings per basic common share1 | $ | (8.72 | ) | $ | 5.91 | $ | 2.91 | $ | 2.98 | $ | (0.11 | ) | ||||||||
Average basic common shares outstanding | 16,487 | 16,464 | 17,001 | 18,762 | 20,130 | |||||||||||||||
Net earnings (loss) per diluted common share1 | $ | (8.72 | ) | $ | 5.88 | $ | 2.90 | $ | 2.97 | $ | (0.11 | ) | ||||||||
Average diluted common shares outstanding | 16,487 | 16,556 | 17,106 | 18,820 | 20,130 |
1 | Loss from operations and net loss for the twelve months ended December 31, 2018 includes a non-cash goodwill impairment charge associated with our Consumer Products segment of $195.1 million. For additional information, refer to Note 7 "Goodwill and Intangible Assets." |
2 | Net earnings and net earnings per basic and diluted common share for the twelve months ended December 31, 2017 reflect a $70 million tax benefit resulting from the remeasurement of the company's net deferred tax liabilities following passage of the Tax Cuts and Jobs Act signed into law on December 22, 2017. |
3 | Working capital is defined as our current assets less our current liabilities, as presented on our Consolidated Balance Sheets. |
ITEM 7. | |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Years Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
(Dollars in thousands) | Cost3 | Percentage of Net Sales | Cost3 | Percentage of Net Sales | Cost | Percentage of Net Sales | |||||||||||||||
Wages and benefits4 | $ | 283,138 | 16.4 | % | $ | 278,622 | 16.1 | % | $ | 295,209 | 17.1 | % | |||||||||
Transportation1 | 204,848 | 11.9 | 200,177 | 11.6 | 182,145 | 10.5 | |||||||||||||||
Purchased pulp | 187,790 | 10.9 | 193,358 | 11.2 | 196,848 | 11.3 | |||||||||||||||
Chemicals | 173,082 | 10.0 | 165,328 | 9.5 | 166,954 | 9.6 | |||||||||||||||
Chips, sawdust and logs | 165,305 | 9.6 | 135,802 | 7.8 | 148,583 | 8.6 | |||||||||||||||
Depreciation | 87,723 | 5.1 | 91,312 | 5.3 | 80,652 | 4.6 | |||||||||||||||
Packaging supplies | 86,668 | 5.0 | 88,245 | 5.1 | 86,273 | 5.0 | |||||||||||||||
Energy | 84,035 | 4.9 | 87,287 | 5.0 | 87,163 | 5.0 | |||||||||||||||
Maintenance and repairs2 | 71,786 | 4.2 | 88,221 | 5.1 | 95,800 | 5.5 | |||||||||||||||
1,344,375 | 78.0 | 1,328,352 | 76.7 | 1,339,627 | 77.2 | ||||||||||||||||
Other operating costs | 193,637 | 11.2 | 201,989 | 11.7 | 153,932 | 8.9 | |||||||||||||||
Total cost of sales4 | $ | 1,538,012 | 89.2 | % | $ | 1,530,341 | 88.4 | % | $ | 1,493,559 | 86.1 | % |
1 | Includes internal and external transportation costs. |
2 | Excluding related labor costs. |
3 | Costs for Manchester operations, which we acquired in December 16, 2016, are included from that acquisition date forward. |
4 | In 2018, we adopted a new accounting standard, ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts have been reclassified to conform with the current period presentation. |
(Dollars in thousands) | 2018 | 2017 | 2016 | ||||||||
Income tax provision (benefit) | $ | 10,305 | $ | (56,385 | ) | $ | 31,112 | ||||
Effective tax rate | 7.7 | % | (137.7 | )% | 38.6 | % |
Years Ended December 31, | ||||||||||||||
(Dollars in thousands) | 2018 | 2017 | ||||||||||||
Net sales | $ | 1,724,218 | 100.0 | % | $ | 1,730,408 | 100.0 | % | ||||||
Costs and expenses: | ||||||||||||||
Cost of sales1 | (1,538,012 | ) | 89.2 | (1,530,341 | ) | 88.4 | ||||||||
Selling, general and administrative expenses1 | (112,988 | ) | 6.6 | (128,882 | ) | 7.4 | ||||||||
Goodwill impairment | (195,079 | ) | 11.3 | — | — | |||||||||
Gain on divested assets, net | 23,952 | 1.4 | — | — | ||||||||||
Total operating costs and expenses | (1,822,127 | ) | 105.7 | (1,659,223 | ) | 95.9 | ||||||||
(Loss) income from operations | (97,909 | ) | 5.7 | 71,185 | 4.1 | |||||||||
Interest expense, net | (30,620 | ) | 1.7 | (31,374 | ) | 1.8 | ||||||||
Non-operating pension and other postretirement benefit (costs) income1 | (4,933 | ) | 0.3 | 1,143 | 0.1 | |||||||||
(Loss) earnings before income taxes | (133,462 | ) | 7.7 | 40,954 | 2.4 | |||||||||
Income tax (provision) benefit | (10,305 | ) | 0.6 | 56,385 | 3.3 | |||||||||
Net (loss) earnings | $ | (143,767 | ) | 8.3 | % | $ | 97,339 | 5.6 | % |
1 | In 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts have been reclassified to conform with the current period presentation. |
Years Ended December 31, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 884,812 | $ | 941,907 | |||
Operating (loss) income1 | (173,858 | ) | 28,973 | ||||
Percent of net sales | (19.6 | )% | 3.1 | % | |||
Shipments (short tons) | |||||||
Retail | 293,856 | 309,067 | |||||
Non-retail | 58,577 | 55,562 | |||||
Total tissue tons | 352,433 | 364,629 | |||||
Converted products cases (in thousands) | 48,699 | 51,221 | |||||
Sales price (per short ton) | |||||||
Retail | $ | 2,703 | $ | 2,775 | |||
Non-retail | 1,506 | 1,440 | |||||
Total tissue | $ | 2,504 | $ | 2,572 |
1 | In 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts have been reclassified to conform with the current period presentation. |
Years Ended December 31, | |||||||
(Dollars in thousands - except per ton amounts) | 2018 | 2017 | |||||
Net sales | $ | 839,406 | $ | 788,501 | |||
Operating income1 | 130,426 | 97,360 | |||||
Percent of net sales | 15.5 | % | 12.3 | % | |||
Paperboard shipments (short tons) | 859,348 | 828,201 | |||||
Paperboard sales price (per short ton) | $ | 975 | $ | 952 |
1 | In 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts have been reclassified to conform with the current period presentation. |
Years Ended December 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||
Net sales | $ | 1,730,408 | 100.0 | % | $ | 1,734,763 | 100.0 | % | ||||||
Costs and expenses: | ||||||||||||||
Cost of sales1 | (1,530,341 | ) | 88.4 | (1,493,559 | ) | 86.1 | ||||||||
Selling, general and administrative expenses1 | (128,882 | ) | 7.4 | (128,195 | ) | 7.4 | ||||||||
Gain on divested assets, net | — | — | 1,755 | 0.1 | ||||||||||
Total operating costs and expenses | (1,659,223 | ) | 95.9 | (1,619,999 | ) | 93.4 | ||||||||
Income from operations | 71,185 | 4.1 | 114,764 | 6.6 | ||||||||||
Interest expense, net | (31,374 | ) | 1.8 | (30,651 | ) | 1.8 | ||||||||
Non-operating pension and other postretirement benefit (costs) income1 | 1,143 | 0.1 | (3,447 | ) | 0.2 | |||||||||
Earnings before income taxes | 40,954 | 2.4 | 80,666 | 4.6 | ||||||||||
Income tax benefit (provision) | 56,385 | 3.3 | (31,112 | ) | 1.8 | |||||||||
Net earnings | $ | 97,339 | 5.6 | % | $ | 49,554 | 2.9 | % |
1 | In the first quarter of 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts above have been reclassified to conform with the 2018 presentation. |
Years Ended December 31, | |||||||
(Dollars in thousands - except per ton amounts) | 2017 | 2016 | |||||
Net sales | $ | 941,907 | $ | 988,380 | |||
Operating income1 | 28,973 | 67,919 | |||||
Percent of net sales | 3.1 | % | 6.9 | % | |||
Shipments (short tons) | |||||||
Retail | 309,067 | 314,042 | |||||
Non-retail | 55,562 | 81,952 | |||||
Total tissue tons | 364,629 | 395,994 | |||||
Converted products cases (in thousands) | 51,221 | 52,875 | |||||
Sales price (per short ton) | |||||||
Retail | $ | 2,775 | $ | 2,757 | |||
Non-retail | 1,440 | 1,480 | |||||
Total tissue | $ | 2,572 | $ | 2,493 |
1 | In 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts above have been reclassified to conform with the 2018 presentation. |
Years Ended December 31, | |||||||
(Dollars in thousands - except per ton amounts) | 2017 | 2016 | |||||
Net sales | $ | 788,501 | $ | 746,383 | |||
Operating income1 | 97,360 | 112,700 | |||||
Percent of net sales | 12.3 | % | 15.1 | % | |||
Paperboard shipments (short tons) | 828,201 | 796,158 | |||||
Paperboard sales price (per short ton) | $ | 952 | $ | 937 |
1 | In 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts have been reclassified to conform with the current period presentation. |
▪ | EBITDA and Adjusted EBITDA do not reflect our cash expenditures for capital assets; |
▪ | EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital requirements; |
▪ | EBITDA and Adjusted EBITDA do not include cash pension payments; |
▪ | EBITDA and Adjusted EBITDA exclude certain tax payments that may represent a reduction in cash available to us; |
▪ | EBITDA and Adjusted EBITDA do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt; |
▪ | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and |
▪ | other companies, including other companies in our industry, may calculate these measures differently than we do, limiting their usefulness as a comparative measure. |
Years Ended December 31, | ||||||||||||
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Net (loss) earnings | $ | (143,767 | ) | $ | 97,339 | $ | 49,554 | |||||
Interest expense, net 1 | 30,620 | 31,374 | 30,651 | |||||||||
Income tax provision (benefit) | 10,305 | (56,385 | ) | 31,112 | ||||||||
Depreciation and amortization expense2 | 101,953 | 104,990 | 91,090 | |||||||||
EBITDA | $ | (889 | ) | $ | 177,318 | $ | 202,407 | |||||
Directors' equity-based compensation (benefit) expense | (2,340 | ) | (2,833 | ) | 4,779 | |||||||
Goodwill impairment3 | 195,079 | — | — | |||||||||
Gain associated with the sale of the Ladysmith facility, net | (23,952 | ) | — | — | ||||||||
Reorganization related expenses associated with SG&A cost control measures | 6,935 | 2,263 | — | |||||||||
Consumer products reorganization related expenses | 1,048 | — | — | |||||||||
Other | 844 | — | — | |||||||||
Costs associated with Oklahoma City facility closure4 | — | 11,055 | 318 | |||||||||
Costs associated with Long Island facility closure | — | 1,443 | 1,891 | |||||||||
Manchester Industries acquisition related expenses | — | 220 | 2,665 | |||||||||
Write-off of assets as a result of Warehouse Automation project | — | 41 | — | |||||||||
Gain associated with the sale of the specialty mills, net | — | — | (1,755 | ) | ||||||||
Pension settlement expense | — | — | 3,482 | |||||||||
Costs associated with Neenah paper machines shutdown | — | — | 1,049 | |||||||||
Adjusted EBITDA | $ | 176,725 | $ | 189,507 | $ | 214,836 |
1 | Interest expense, net for the year ended December 31, 2016 includes debt retirement costs of $0.4 million. |
2 | Depreciation and amortization expense for the years ended December 31, 2017 and 2016 includes $3.7 million and $1.3 million, respectively, of accelerated depreciation associated with the Oklahoma City facility closure. |
3 | During the fourth quarter of 2018, we recognized non-cash goodwill impairment of $195.1 million associated with our Consumer Products segment. See Item 8, Financial Statements and Supplementary Data under Note 7 "Goodwill and Intangibles Assets" for more information. |
4 | Costs associated with the Oklahoma City facility closure for the twelve months ended December 31, 2017 include $4.3 million of loss on the write-down of assets to their held for sale value and $3.2 million of expenses associated with the execution of a sublease for the facility. |
Years Ended December 31, | |||||||||||
(In thousands) | 2018 | 2017 | 2016 | ||||||||
GAAP income tax (provision) benefit1 | $ | (10,305 | ) | $ | 56,385 | $ | (31,112 | ) | |||
Adjustments, tax impact: | |||||||||||
Directors' equity-based compensation | 523 | 952 | (1,693 | ) | |||||||
Gain associated with the sale of the Ladysmith facility, net | 10,444 | — | — | ||||||||
Reorganization related expenses associated with SG&A cost control measures | (1,721 | ) | (757 | ) | — | ||||||
Impact of state tax reform | (676 | ) | — | — | |||||||
Consumer products reorganization related expenses | (274 | ) | — | — | |||||||
Other | (151 | ) | — | — | |||||||
Federal tax rate change1 | — | (70,055 | ) | — | |||||||
Costs associated with Oklahoma City facility closure | — | (4,977 | ) | (589 | ) | ||||||
Costs associated with Long Island facility closure | — | (686 | ) | (672 | ) | ||||||
Accelerated depreciation of assets as a result of warehouse automation project | — | (121 | ) | — | |||||||
Manchester Industries acquisition related expenses | — | (74 | ) | (465 | ) | ||||||
Write-off of assets as a result of warehouse automation project | — | (14 | ) | — | |||||||
Gain associated with the sale of the specialty mills, net | 626 | ||||||||||
Costs associated with Neenah paper machines shutdown | — | — | (371 | ) | |||||||
Pension settlement expense | — | — | (1,242 | ) | |||||||
Adjusted income tax provision | $ | (2,160 | ) | $ | (19,347 | ) | $ | (35,518 | ) |
1 | The benefit in 2017 is primarily due to the remeasurement of deferred tax liabilities as a result of the Act signed into law on December 22, 2017. The resulting net tax benefit is excluded from our adjusted non-GAAP earnings. |
Years Ended December 31, | ||||||||||||
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Net cash flows from operating activities1 | $ | 168,899 | $ | 178,670 | $ | 172,751 | ||||||
Net cash flows from investing activities | (223,971 | ) | (198,797 | ) | (222,506 | ) | ||||||
Net cash flows from financing activities | 63,281 | 13,864 | 67,146 |
1 | In 2018, we adopted a new accounting standard, ASU 2016-18, which required a change in the presentation of cash, cash equivalents, and restricted cash in the statement of cash flows. As a result of adopting this standard, the net cash flows from operating activities increased by $1.0 million for 2017. There were no changes to the 2016 presentation as previously reported. |
Payments Due by Period | ||||||||||||||||||||
(In thousands) | Total | 2019 | 2020-2021 | 2022-2023 | Thereafter | |||||||||||||||
Short-term debt | $ | 120,833 | $ | 120,833 | $ | — | $ | — | $ | — | ||||||||||
Long-term debt1 | 675,000 | — | 100,000 | — | 575,000 | |||||||||||||||
Interest on long-term debt1 | 187,663 | 33,230 | 63,307 | 50,813 | 40,313 | |||||||||||||||
Capital leases2 | 36,785 | 3,093 | 6,174 | 5,808 | 21,710 | |||||||||||||||
Operating leases2 | 74,811 | 12,038 | 21,845 | 16,652 | 24,276 | |||||||||||||||
Purchase obligations3 | 391,532 | 358,368 | 20,745 | 8,311 | 4,108 | |||||||||||||||
Other obligations4,5 | 226,615 | 160,659 | 13,114 | 10,398 | 42,444 | |||||||||||||||
Total | $ | 1,713,239 | $ | 688,221 | $ | 225,185 | $ | 91,982 | $ | 707,851 |
1 | Included above are the principal and interest payments that were due, as of December 31, 2018, on our 2013 and 2014 Notes and our fixed-rate, three-year borrowings under our credit facilities. For more information regarding specific terms of our long-term debt, see Note 10, “Debt,” in the notes to the consolidated financial statements. |
2 | These amounts represent our minimum capital lease payments, including amounts representing interest, and our minimum operating lease payments. See Note 17, “Commitments and Contingencies,” in the notes to the consolidated financial statements. |
3 | Purchase obligations consist primarily of contracts for the purchase of raw materials (primarily pulp) from third parties, trade accounts payable as of December 31, 2018, contracts for outside wood chipping and contracts with natural gas and electricity providers. |
4 | Included in other obligations are accrued liabilities and accounts payable (other than certain trade accounts payable balances included as "purchase obligations" above) as of December 31, 2018, liabilities associated with supplemental pension and deferred compensation arrangements, and estimated payments on postretirement employee benefit plans. |
5 | Total excludes $2.8 million of unrecognized tax benefits due to the uncertainty of timing of payment. See Note 8, “Income Taxes,” in the notes to the consolidated financial statements. |
ITEM 7A. | |
Quantitative and Qualitative Disclosures About Market Risks |
Expected Maturity Date | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||||
Fixed rate | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 575,000 | $ | 575,000 | ||||||||||||||
Revolving credit facility | — | — | 100,000 | — | — | — | 100,000 | |||||||||||||||||||||
Average interest rate | — | % | — | % | 4.730 | % | — | % | — | % | 4.957 | % | 4.923 | % | ||||||||||||||
Fair value at December 31, 2018 | $ | 612,546 |
ITEM 8. | |
Financial Statements and Supplementary Data |
PAGE NUMBER | |
Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 | |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018, 2017 and 2016 | |
Consolidated Balance Sheets at December 31, 2018 and 2017 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016 | |
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016 | |
Notes to Consolidated Financial Statements | |
Reports of Independent Registered Public Accounting Firm | |
Financial Statement Schedules: | |
All schedules have been omitted because the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements, including the notes thereto. |
For The Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net sales | $ | 1,724,218 | $ | 1,730,408 | $ | 1,734,763 | ||||||
Costs and expenses: | ||||||||||||
Cost of sales | (1,538,012 | ) | (1,530,341 | ) | (1,493,559 | ) | ||||||
Selling, general and administrative expenses | (112,988 | ) | (128,882 | ) | (128,195 | ) | ||||||
Goodwill impairment | (195,079 | ) | — | — | ||||||||
Gain on divested assets, net | 23,952 | — | 1,755 | |||||||||
Total operating costs and expenses | (1,822,127 | ) | (1,659,223 | ) | (1,619,999 | ) | ||||||
(Loss) income from operations | (97,909 | ) | 71,185 | 114,764 | ||||||||
Interest expense, net | (30,620 | ) | (31,374 | ) | (30,651 | ) | ||||||
Non-operating pension and other post employment benefit (costs) income | (4,933 | ) | 1,143 | (3,447 | ) | |||||||
(Loss) earnings before income taxes | (133,462 | ) | 40,954 | 80,666 | ||||||||
Income tax (provision) benefit | (10,305 | ) | 56,385 | (31,112 | ) | |||||||
Net (loss) earnings | $ | (143,767 | ) | $ | 97,339 | $ | 49,554 | |||||
Net (loss) earnings per common share: | ||||||||||||
Basic | $ | (8.72 | ) | $ | 5.91 | $ | 2.91 | |||||
Diluted | (8.72 | ) | 5.88 | 2.90 |
For The Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net (loss) earnings | $ | (143,767 | ) | $ | 97,339 | $ | 49,554 | |||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Defined benefit pension and other postretirement employee benefits: | ||||||||||||
Net (loss) gain arising during the period, net of tax of $(5,717), $2,409, and $248 | (16,036 | ) | 6,745 | 379 | ||||||||
Amortization of actuarial loss included in net periodic cost, net of tax of $2,397, $1,305, and $1,576 | 6,759 | 1,951 | 2,321 | |||||||||
Amortization of prior service credit included in net periodic cost, net of tax of $(440), $(601), and $(669) | (1,236 | ) | (926 | ) | (1,021 | ) | ||||||
Settlement, net of tax of $-, $-, and $1,366 | — | — | 2,116 | |||||||||
Other comprehensive (loss) income, net of tax | (10,513 | ) | 7,770 | 3,795 | ||||||||
Comprehensive (loss) income | $ | (154,280 | ) | $ | 105,109 | $ | 53,349 |
At December 31, | ||||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,484 | $ | 15,738 | ||||
Receivables, net | 145,519 | 142,065 | ||||||
Taxes receivable | 6,301 | 20,282 | ||||||
Inventories | 266,244 | 266,043 | ||||||
Other current assets | 3,399 | 8,661 | ||||||
Total current assets | 443,947 | 452,789 | ||||||
Property, plant and equipment, net | 1,269,271 | 1,050,982 | ||||||
Goodwill | 35,074 | 244,161 | ||||||
Intangible assets, net | 24,080 | 32,542 | ||||||
Other assets, net | 15,746 | 21,778 | ||||||
TOTAL ASSETS | $ | 1,788,118 | $ | 1,802,252 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 120,833 | $ | 155,000 | ||||
Accounts payable and accrued liabilities | 321,032 | 256,621 | ||||||
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,631 | ||||||
Total current liabilities | 449,295 | 419,252 | ||||||
Long-term debt | 671,292 | 570,524 | ||||||
Liability for pensions and other postretirement employee benefits | 78,191 | 72,469 | ||||||
Other long-term obligations | 38,977 | 43,275 | ||||||
Accrued taxes | 2,785 | 2,770 | ||||||
Deferred tax liabilities | 121,182 | 118,528 | ||||||
TOTAL LIABILITIES | 1,361,722 | 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 -16,482,345 and 16,447,898 shares issued | 2 | 2 | ||||||
Additional paid-in capital | 6,403 | 1,161 | ||||||
Retained earnings | 487,339 | 618,254 | ||||||
Accumulated other comprehensive loss, net of tax | (67,348 | ) | (43,983 | ) | ||||
Total stockholders’ equity | 426,396 | 575,434 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,788,118 | $ | 1,802,252 |
(in thousands) | For The Years Ended December 31, | ||||||||||
2018 | 2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net (loss) earnings | $ | (143,767 | ) | $ | 97,339 | $ | 49,554 | ||||
Adjustments to reconcile net (loss) earnings to net cash flows from operating activities: | |||||||||||
Goodwill impairment | 195,079 | — | — | ||||||||
Depreciation and amortization | 101,953 | 104,990 | 91,090 | ||||||||
Equity-based compensation expense | 3,314 | 3,620 | 12,385 | ||||||||
Deferred taxes | 7,084 | (40,589 | ) | 18,327 | |||||||
Employee benefit plans | (116 | ) | (4,371 | ) | (1,979 | ) | |||||
Deferred issuance costs on debt | 1,356 | 1,199 | 1,242 | ||||||||
Gain on divested assets, net | (25,510 | ) | — | — | |||||||
Disposal of plant and equipment, net | 726 | 4,053 | 1,381 | ||||||||
Other non-cash activity | 146 | 1,750 | 758 | ||||||||
Changes in working capital, net of acquisition | 16,200 | 21,761 | (3,462 | ) | |||||||
Change in taxes receivable, net | 13,980 | (10,573 | ) | 5,142 | |||||||
Other, net | (1,546 | ) | (509 | ) | (1,687 | ) | |||||
Net cash flows from operating activities | 168,899 | 178,670 | 172,751 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Additions to property, plant and equipment | (295,708 | ) | (199,748 | ) | (155,349 | ) | |||||
Acquisition of Manchester Industries, net of cash acquired | — | — | (67,443 | ) | |||||||
Net proceeds from divested assets | 70,930 | — | — | ||||||||
Other, net | 807 | 951 | 286 | ||||||||
Net cash flows from investing activities | (223,971 | ) | (198,797 | ) | (222,506 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Purchase of treasury stock | — | (4,875 | ) | (65,327 | ) | ||||||
Borrowings on short-term debt | 630,848 | 298,308 | 1,273,959 | ||||||||
Repayments of borrowings on short-term debt | (565,015 | ) | (278,308 | ) | (1,138,959 | ) | |||||
Payments for debt issuance costs | (2,139 | ) | (134 | ) | (1,906 | ) | |||||
Payment of tax withholdings on equity-based payment arrangements | (413 | ) | (1,127 | ) | (933 | ) | |||||
Other, net | — | — | 312 | ||||||||
Net cash flows from financing activities | 63,281 | 13,864 | 67,146 | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 8,209 | (6,263 | ) | 17,391 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 16,738 | 23,001 | 5,610 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 24,947 | $ | 16,738 | $ | 23,001 | |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid for interest, net of amounts capitalized | $ | 26,134 | $ | 28,085 | $ | 26,690 | |||||
Cash paid for income taxes | 3,736 | 2,684 | 17,655 | ||||||||
Cash received from income tax refunds | 14,290 | 7,638 | 11,289 | ||||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||||
Changes in accrued property, plant and equipment | $ | 42,242 | $ | (1,063 | ) | $ | 328 | ||||
Non-cash reclassification of credit facility borrowings to long-term debt | 100,000 | — | — | ||||||||
Other changes to property, plant and equipment, net | 1,691 | 4,241 | — |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Balance at December 31, 2015 | 24,193 | $ | 2 | $ | 340,095 | $ | 520,307 | (6,380 | ) | $ | (329,990 | ) | $ | (55,548 | ) | $ | 474,866 | |||||||||||||
Net earnings | — | — | — | 49,554 | — | — | — | 49,554 | ||||||||||||||||||||||
Performance share, restricted stock unit, and stock option awards | 30 | — | 6,985 | — | — | — | — | 6,985 | ||||||||||||||||||||||
Pension and OPEB, net of tax of $2,521 | — | — | — | — | — | — | 3,795 | 3,795 | ||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | (1,356 | ) | (65,327 | ) | — | (65,327 | ) | |||||||||||||||||||
Balance at December 31, 2016 | 24,223 | $ | 2 | $ | 347,080 | $ | 569,861 | (7,736 | ) | $ | (395,317 | ) | $ | (51,753 | ) | $ | 469,873 | |||||||||||||
Net earnings | — | — | — | 97,339 | — | — | — | 97,339 | ||||||||||||||||||||||
Performance share, restricted stock unit, and stock option awards | 46 | — | 5,327 | — | — | — | — | 5,327 | ||||||||||||||||||||||
Pension and OPEB, net of tax of $3,113 | — | — | — | — | — | — | 7,770 | 7,770 | ||||||||||||||||||||||
Purchase of treasury stock | (85 | ) | (4,875 | ) | (4,875 | ) | ||||||||||||||||||||||||
Retirement of treasury stock | (7,821 | ) | — | (351,246 | ) | (48,946 | ) | 7,821 | 400,192 | — | — | |||||||||||||||||||
Balance at December 31, 2017 | 16,448 | $ | 2 | $ | 1,161 | $ | 618,254 | — | $ | — | $ | (43,983 | ) | $ | 575,434 | |||||||||||||||
Net loss | — | — | — | (143,767 | ) | — | — | — | (143,767 | ) | ||||||||||||||||||||
Performance share, restricted stock unit, and stock option awards | 34 | — | 5,242 | — | — | — | — | 5,242 | ||||||||||||||||||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | — | — | — | 12,852 | — | — | (12,852 | ) | — | |||||||||||||||||||||
Pension and OPEB, net of tax of $3,760 | — | — | — | — | — | — | (10,513 | ) | (10,513 | ) | ||||||||||||||||||||
Balance at December 31, 2018 | 16,482 | $ | 2 | $ | 6,403 | $ | 487,339 | — | $ | — | $ | (67,348 | ) | $ | 426,396 |
December 31, | |||||||||||
(In thousands) | 2018 | 2017 | 2016 | ||||||||
Cash and cash equivalents | $ | 22,484 | $ | 15,738 | $ | 23,001 | |||||
Restricted cash included in other assets, net | 2,463 | 1,000 | — | ||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 24,947 | $ | 16,738 | $ | 23,001 |
December 31, | ||||||||
(In thousands) | 2018 | 2017 | ||||||
Pulp, paperboard and tissue products | $ | 159,499 | $ | 165,281 | ||||
Materials and supplies | 86,892 | 85,987 | ||||||
Logs, pulpwood, chips and sawdust | 19,853 | 14,775 | ||||||
$ | 266,244 | $ | 266,043 |
December 31, | ||||||||
(In thousands) | 2018 | 2017 | ||||||
Machinery and equipment | $ | 2,161,306 | $ | 2,124,701 | ||||
Buildings and improvements | 381,071 | 340,042 | ||||||
Land improvements | 84,525 | 49,908 | ||||||
Office and other equipment | 49,980 | 46,467 | ||||||
Land | 10,756 | 11,726 | ||||||
Construction in progress | 273,291 | 114,424 | ||||||
$ | 2,960,929 | $ | 2,687,268 | |||||
Less accumulated depreciation and amortization | (1,691,658 | ) | (1,636,286 | ) | ||||
$ | 1,269,271 | $ | 1,050,982 |
(Dollars in thousands) | December 31, 2018 | December 31, 2017 | |||||
Balance at beginning of year | $ | 244,161 | $ | 244,283 | |||
Impairment of goodwill | (195,079 | ) | — | ||||
Write-down of goodwill due to Ladysmith sale | (14,008 | ) | — | ||||
Acquisition accounting adjustment | — | (122 | ) | ||||
Balance at end of year | $ | 35,074 | $ | 244,161 | |||
Goodwill by segment | |||||||
Consumer products | $ | — | $ | 209,087 | |||
Pulp and paperboard | 35,074 | 35,074 | |||||
Total goodwill | $ | 35,074 | $ | 244,161 |
December 31, 2018 | ||||||||||||||
(Dollars in thousands, lives in years) | Weighted Average Useful Life | Historical Cost | Accumulated Amortization | Net Balance | ||||||||||
Customer relationships | 9.4 | $ | 56,453 | $ | (35,469 | ) | $ | 20,984 | ||||||
Trade names and trademarks | 7.4 | 6,786 | (4,029 | ) | 2,757 | |||||||||
Other intangibles | 6.0 | 572 | (233 | ) | 339 | |||||||||
Total intangible assets | $ | 63,811 | $ | (39,731 | ) | $ | 24,080 |
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 | |||||||||
Total intangible assets | $ | 70,333 | $ | (37,791 | ) | $ | 32,542 |
Years ending December 31, | Amount | ||
2019 | $ | 7,140 | |
2020 | 3,246 | ||
2021 | 2,917 | ||
2022 | 2,217 | ||
2023 | 2,140 | ||
Thereafter | 6,420 | ||
Total | $ | 24,080 |
For The Years Ended December 31, | ||||||||||||
(In thousands) | 2018 | 2017 | 2016 | |||||||||
United States | $ | (133,462 | ) | $ | 40,954 | $ | 80,666 |
For The Years Ended December 31, | ||||||||||||
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Current | ||||||||||||
Federal | $ | 1,073 | $ | (16,729 | ) | $ | 7,434 | |||||
State | 2,148 | 933 | 5,351 | |||||||||
Total current | 3,221 | (15,796 | ) | 12,785 | ||||||||
Deferred | ||||||||||||
Federal | 3,569 | (36,810 | ) | 15,573 | ||||||||
State | 3,515 | (3,779 | ) | 2,754 | ||||||||
Total deferred | 7,084 | (40,589 | ) | 18,327 | ||||||||
Income tax provision (benefit) | $ | 10,305 | $ | (56,385 | ) | $ | 31,112 |
For The Years Ended December 31, | ||||||||||||
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Tax at the statutory rate | $ | (28,027 | ) | $ | 14,334 | $ | 28,233 | |||||
Goodwill impairment | 40,966 | — | ||||||||||
Federal rate change | — | (70,055 | ) | — | ||||||||
State and local taxes, net of federal income tax impact | 4,433 | (1,201 | ) | 3,046 | ||||||||
Federal credits and net operating losses | (10,889 | ) | (3,158 | ) | (2,850 | ) | ||||||
Stock compensation | 712 | 2,207 | — | |||||||||
Other, net1 | 3,110 | 1,488 | 2,683 | |||||||||
Income tax provision (benefit) | $ | 10,305 | $ | (56,385 | ) | $ | 31,112 |
1 | Includes $2.9 million of expense associated with the write-off of goodwill as part of our divestiture discussed in Note 4, "Asset Divestiture" for the year ended December 31, 2018. |
(In thousands) | 2018 | 2017 | ||||||
Deferred tax assets: | ||||||||
Employee benefits | $ | 4,202 | $ | 3,940 | ||||
Postretirement employee benefits | 15,850 | 17,132 | ||||||
Incentive compensation | 4,338 | 5,194 | ||||||
Inventories | 6,227 | 7,959 | ||||||
Pensions | 7,380 | 2,516 | ||||||
State credit carryforwards | 10,705 | 11,752 | ||||||
State net operating losses | 1,987 | 3,088 | ||||||
Other | 5,562 | 1,949 | ||||||
Total deferred tax assets | $ | 56,251 | $ | 53,530 | ||||
Valuation allowance | (3,764 | ) | (3,733 | ) | ||||
Deferred tax assets, net of valuation allowance | $ | 52,487 | $ | 49,797 | ||||
Deferred tax liabilities: | ||||||||
Plant and equipment | $ | (161,832 | ) | $ | (153,885 | ) | ||
Intangible assets | (5,643 | ) | (7,577 | ) | ||||
Total deferred tax liabilities | (167,475 | ) | (161,462 | ) | ||||
Net deferred tax liabilities | $ | (114,988 | ) | $ | (111,665 | ) |
(In thousands) | 2018 | 2017 | ||||||
Non-current deferred tax assets1 | $ | 6,194 | $ | 6,863 | ||||
Non-current deferred tax liabilities | (121,182 | ) | (118,528 | ) | ||||
Net non-current deferred tax liabilities | (114,988 | ) | (111,665 | ) | ||||
Net deferred tax liabilities | $ | (114,988 | ) | $ | (111,665 | ) |
1 | Included in "Other assets, net" on our accompanying December 31, 2018 and 2017 Consolidated Balance Sheets. |
(In thousands) | Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | Interest and Penalties | Total Gross Unrecognized Tax Benefits | |||||||||
Balance at December 31, 2016 | $ | 4,903 | $ | 237 | $ | 5,140 | ||||||
Change in prior year tax positions | (1,149 | ) | 48 | (1,101 | ) | |||||||
Change in current year tax positions | 320 | — | 320 | |||||||||
Balance at December 31, 2017 | $ | 4,074 | $ | 285 | $ | 4,359 | ||||||
Change in prior year tax positions | (560 | ) | 61 | (499 | ) | |||||||
Reductions as a result of a lapse of the applicable statute of limitations | (645 | ) | (56 | ) | (701 | ) | ||||||
Change in current year tax positions | 280 | — | 280 | |||||||||
Balance at December 31, 2018 | $ | 3,149 | $ | 290 | $ | 3,439 |
December 31, | ||||||||
(In thousands) | 2018 | 2017 | ||||||
Trade accounts payable | $ | 228,059 | $ | 169,293 | ||||
Accrued wages, salaries and employee benefits | 41,426 | 41,979 | ||||||
Accrued interest | 14,672 | 12,723 | ||||||
Accrued discounts and allowances | 8,143 | 7,283 | ||||||
Accrued taxes other than income taxes payable | 6,243 | 6,907 | ||||||
Accrued utilities | 6,934 | 6,759 | ||||||
Other | 15,555 | 11,677 | ||||||
$ | 321,032 | $ | 256,621 |
December 31, | ||||||||
(In thousands) | 2018 | 2017 | ||||||
Long-term lease obligations, net of current portion | $ | 27,419 | $ | 26,460 | ||||
Deferred proceeds | 4,511 | 5,576 | ||||||
Deferred compensation | 2,585 | 5,023 | ||||||
Other | 4,462 | 6,216 | ||||||
$ | 38,977 | $ | 43,275 |
(In thousands) | Pension and Other Post Retirement Employee Benefit Plan Adjustments | ||
Balance at December 31, 20162 | $ | (51,753 | ) |
Other comprehensive income before reclassifications | 6,745 | ||
Amounts reclassified from accumulated other comprehensive loss | 1,025 | ||
Other comprehensive income, net of tax1 | 7,770 | ||
Balance at December 31, 2017 | $ | (43,983 | ) |
Other comprehensive loss before reclassifications | (16,036 | ) | |
Amounts reclassified from accumulated other comprehensive loss | 5,523 | ||
Other comprehensive loss, net of tax1 | (10,513 | ) | |
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | (12,852 | ) | |
Balance at December 31, 2018 | $ | (67,348 | ) |
1 | For the year ended December 31, 2018, net periodic costs associated with our pension and other postretirement employee benefit, or OPEB, plans included in other comprehensive loss and reclassified from accumulated other comprehensive loss, or AOCL, included $21.8 million of net loss on plan assets, $9.2 million of actuarial loss amortization, and $1.7 million of prior service credit amortization, less total tax of $3.8 million. For the year ended December 31, 2017, net periodic costs associated with our pension and OPEB plans included in other comprehensive income and reclassified from AOCL included $9.2 million of net gain on plan assets, $3.3 million of actuarial loss amortization, and $1.5 million of prior service credit amortization, less total tax of $3.1 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 13, “Savings, Pension and Other Postretirement Employee Benefit Plans.” |
2 | Included in the balance at December 31, 2016 is settlement expense of $3.5 million associated with the remeasurement of our salaried pension plan, which is discussed further in Note 13, “Savings, Pension and Other Postretirement Employee Benefit Plans.” The settlement expense is net of tax totaling $1.4 million. |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Benefit obligation at beginning of year | $ | 317,814 | $ | 304,388 | $ | 65,128 | $ | 69,163 | ||||||||
Service cost | 1,789 | 2,069 | 136 | 163 | ||||||||||||
Interest cost | 12,020 | 13,149 | 2,435 | 2,745 | ||||||||||||
Actuarial (gains) losses | (16,356 | ) | 19,130 | (367 | ) | (1,254 | ) | |||||||||
Benefits paid | (21,101 | ) | (20,922 | ) | (7,000 | ) | (5,689 | ) | ||||||||
Benefit obligation at end of year | 294,166 | 317,814 | 60,332 | 65,128 | ||||||||||||
Fair value of plan assets at beginning of year | 310,966 | 285,638 | 20 | 20 | ||||||||||||
Actual return on plan assets | (21,474 | ) | 45,796 | — | — | |||||||||||
Employer contribution | 466 | 454 | 7,000 | 5,689 | ||||||||||||
Benefits paid | (21,101 | ) | (20,922 | ) | (7,000 | ) | (5,689 | ) | ||||||||
Fair value of plan assets at end of year | 268,857 | 310,966 | 20 | 20 | ||||||||||||
Funded status at end of year | $ | (25,309 | ) | $ | (6,848 | ) | $ | (60,312 | ) | $ | (65,108 | ) |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Non-current assets | $ | — | $ | 8,144 | $ | — | $ | — | ||||||||
Current liabilities | (441 | ) | (441 | ) | (6,989 | ) | (7,190 | ) | ||||||||
Non-current liabilities | (24,868 | ) | (14,551 | ) | (53,323 | ) | (57,918 | ) | ||||||||
Net amount recognized | $ | (25,309 | ) | $ | (6,848 | ) | $ | (60,312 | ) | $ | (65,108 | ) |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net loss (gain) | $ | 111,927 | $ | 99,865 | $ | (15,006 | ) | $ | (15,541 | ) | ||||||
Prior service cost (credit) | — | — | — | (1,676 | ) | |||||||||||
Net amount recognized | $ | 111,927 | $ | 99,865 | $ | (15,006 | ) | $ | (17,217 | ) |
(In thousands) | 2018 | 2017 | ||||||
Projected benefit obligation | $ | 294,166 | $ | 178,452 | ||||
Accumulated benefit obligation | 294,166 | 178,452 | ||||||
Fair value of plan assets | 268,857 | 163,460 |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | 1,789 | $ | 2,069 | $ | 1,562 | $ | 136 | $ | 163 | $ | 249 | ||||||||||||
Interest cost | 12,020 | 13,149 | 14,072 | 2,435 | 2,745 | 3,075 | ||||||||||||||||||
Expected return on plan assets | (17,002 | ) | (18,765 | ) | (19,389 | ) | — | (1 | ) | (1 | ) | |||||||||||||
Amortization of prior service cost (credit) | — | 8 | 22 | (1,676 | ) | (1,535 | ) | (1,712 | ) | |||||||||||||||
Amortization of actuarial loss (gain) | 10,058 | 9,874 | 11,463 | (902 | ) | (6,618 | ) | (7,566 | ) | |||||||||||||||
Settlement | — | — | 3,482 | — | — | — | ||||||||||||||||||
Net periodic cost (income) | $ | 6,865 | $ | 6,335 | $ | 11,212 | $ | (7 | ) | $ | (5,246 | ) | $ | (5,955 | ) |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Net loss (gain) | $ | 22,120 | $ | (7,901 | ) | $ | (1,445 | ) | $ | (367 | ) | $ | (1,253 | ) | $ | 818 | ||||||||
Curtailments | — | — | — | — | — | — | ||||||||||||||||||
Prior service credit | — | — | — | — | — | — | ||||||||||||||||||
Amortization of prior service (cost) credit | — | (8 | ) | (22 | ) | 1,676 | 1,535 | 1,712 | ||||||||||||||||
Amortization of actuarial (loss) gain | (10,058 | ) | (9,874 | ) | (11,463 | ) | 902 | 6,618 | 7,566 | |||||||||||||||
Settlement | — | — | (3,482 | ) | — | — | — | |||||||||||||||||
Total recognized in other comprehensive loss (income) | $ | 12,062 | $ | (17,783 | ) | $ | (16,412 | ) | $ | 2,211 | $ | 6,900 | $ | 10,096 | ||||||||||
Total recognized in net periodic cost and other comprehensive (income) loss | $ | 18,927 | $ | (11,448 | ) | $ | (5,200 | ) | $ | 2,203 | $ | 1,654 | $ | 4,141 |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||
Discount rate | 4.40 | % | 3.90 | % | 4.45 | % | 4.55 | % | 3.95 | % | 4.30 | % |
Pension Benefit Plans | Other Postretirement Employee Benefit Plans | |||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||
Discount rate | 3.90 | % | 4.45 | % | 4.70 | % | 3.95 | % | 4.30 | % | 4.50 | % | ||||||
Expected return on plan assets | 6.00 | 6.75 | 6.75 | — | — | — |
(In thousands) | 1% Increase | 1% Decrease | ||||||
Effect on total of service and interest cost components | $ | 172 | $ | (149 | ) | |||
Effect on postretirement employee benefit obligation | 3,749 | (3,279 | ) |
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plans have the ability to access. | |
Level 2 | Inputs to the valuation methodology include: | |
▪ Quoted prices for similar assets or liabilities in active markets;▪ Quoted prices for identical or similar assets or liabilities in inactive markets;▪ Inputs other than quoted prices that are observable for the asset or liability; and▪ Inputs that are derived principally from or corroborated by observable market data by correlation or other means | ||
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
December 31, 2018 | ||||||||||||
(In thousands) | Level 1 | Investments measured at net asset value | Total | |||||||||
Cash and cash equivalents | $ | 2,004 | $ | — | $ | 2,004 | ||||||
Common and collective trust: | ||||||||||||
Collective investment funds | — | 266,853 | 266,853 | |||||||||
Total investments at fair value | $ | 2,004 | $ | 266,853 | $ | 268,857 |
December 31, 2017 | ||||||||||||
(In thousands) | Level 1 | Investments measured at net asset value | Total | |||||||||
Cash and cash equivalents | $ | 2,010 | $ | — | $ | 2,010 | ||||||
Common and collective trusts: | ||||||||||||
Collective investment funds | — | 308,956 | 308,956 | |||||||||
Total investments at fair value | $ | 2,010 | $ | 308,956 | $ | 310,966 |
▪ | Assets are diversified among various asset classes, such as domestic equities, international equities, fixed income and cash. The long-term asset allocation ranges are as follows: |
Domestic equities | 10%-18% | |||
International equities, including emerging markets | 10%-18% | |||
Corporate/Government bonds | 68%-78% | |||
Liquid reserves | 0%-5% |
• | Assets were managed by professional investment managers and could be invested in separately managed accounts or commingled funds. |
▪ | Assets were not invested in securities rated below BBB- by S&P or Baa3 by Moody’s. |
(In thousands) | Pension Benefit Plans | Other Postretirement Employee Benefit Plans | ||||
2019 | 20,700 | 7,010 | ||||
2020 | 20,580 | 6,501 | ||||
2021 | 20,427 | 5,409 | ||||
2022 | 20,341 | 4,849 | ||||
2023 | 20,312 | 4,496 | ||||
2024-2028 | 98,651 | 18,685 |
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. |
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. The number of employers participating in PIUMPF fell from 135 during 2012 to 78 during 2017. We believe that we are now the employer making the largest proportion of total contributions. |
• | Under applicable federal law, any employer contributing to a multiemployer pension plan that completely ceases participating in the plan while it is underfunded is subject to an assessment of such employer's allocable share of the aggregate unfunded vested benefits of the plan, except when that plan is in "critical" or "critical and declining" status. In certain circumstances, an employer can also be assessed a statutory withdrawal liability for a partial withdrawal from a multiemployer pension plan. Based on information available to us as of December 31, 2018, as well as information provided by PIUMPF and reviewed by our actuarial consultant, we estimate the aggregate pre-tax liability that we would have incurred if we had completely withdrawn from PIUMPF in 2018 would have been in excess of $78 million. However, the exact amount of potential exposure could be higher or lower than the estimate, depending on, among other things, the nature and timing of any |
Pension Fund | EIN | Plan Number | PPA Zone Status1 | FIP/RP Status Pending/ Implemented | Contributions (in thousands) | Surcharge Imposed | Expiration Date of Collective Bargaining Agreement | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
IAM NPF | 51-6031295 | 002 | Green | Green | N/A | $ | 316 | $ | 333 | $ | 335 | No | 5/31/2018 | |||||||||||||
PIUMPF | 11-6166763 | 001 | Red | Red | Implemented | 5,386 | 5,815 | 5,679 | No | 8/31/2017 | ||||||||||||||||
Total Contributions: | $ | 5,702 | $ | 6,148 | $ | 6,014 |
1 | PIUMPF has been certified as in "Critical and Declining Status" for 2018 and 2017, under the provisions of the Multiemployer Pension Plan Reform Act of 2014. |
December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Basic average common shares outstanding1 | 16,486,807 | 16,464,286 | 17,000,599 | |||||||||
Incremental shares due to: | ||||||||||||
Restricted stock units | — | 21,522 | 21,668 | |||||||||
Performance shares | — | 45,252 | 76,525 | |||||||||
Stock options | — | 24,866 | 7,648 | |||||||||
Diluted average common shares outstanding | 16,486,807 | 16,555,926 | 17,106,440 | |||||||||
Basic net (loss) earnings per common share | $ | (8.72 | ) | $ | 5.91 | $ | 2.91 | |||||
Diluted net (loss) earnings per common share | (8.72 | ) | 5.88 | 2.90 | ||||||||
Anti-dilutive shares excluded from calculation | 929,399 | 499,348 | 220,037 |
1 | Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. See Note 15, "Equity-Based Compensation Plans" for further discussion. |
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Restricted stock units | $ | 2,141 | $ | 1,618 | $ | 1,381 | ||||||
Performance shares | 1,125 | 2,283 | 3,311 | |||||||||
Stock options | 2,388 | 2,552 | 2,913 | |||||||||
Total employee equity-based compensation | $ | 5,654 | $ | 6,453 | $ | 7,605 | ||||||
Related tax benefit | $ | 1,486 | $ | 2,149 | $ | 2,767 |
2018 | 2017 | 2016 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
Unvested shares outstanding at | |||||||||||||||||||||
January 1 | 94,471 | $ | 50.22 | 54,460 | $ | 47.16 | 46,029 | $ | 60.17 | ||||||||||||
Granted | 111,054 | 37.31 | 66,774 | 56.45 | 44,627 | 39.10 | |||||||||||||||
Vested | (43,878 | ) | 46.36 | (17,531 | ) | 62.75 | (29,338 | ) | 55.16 | ||||||||||||
Forfeited | (33,994 | ) | 43.30 | (9,232 | ) | 53.52 | (6,858 | ) | 47.80 | ||||||||||||
Unvested shares outstanding at December 31 | 127,653 | 42.09 | 94,471 | 50.22 | 54,460 | 47.16 | |||||||||||||||
Vested shares outstanding at December 31 | — | — | 4,226 | 38.75 | 10,860 | 52.71 | |||||||||||||||
Deferred shares outstanding at December 31 | 33,663 | 7.31 | 33,663 | 7.31 | 35,438 | 7.21 | |||||||||||||||
Total shares outstanding at December 31 | 161,316 | $ | 34.83 | 132,360 | $ | 38.94 | 100,758 | $ | 33.71 | ||||||||||||
Aggregate intrinsic value of outstanding shares (in thousands) | $ | 3,931 | $ | 6,009 | $ | 6,605 |
• | For performance shares granted in 2016 and prior years, the performance measure used was a comparison of the percentile ranking of our total stockholder return (TSR) compared to the TSR performance of a selected peer group or index. |
• | For performance shares granted in 2017, the performance measure used for 40% of the grant is a comparison of the percentile ranking of our TSR, compared to the TSR of a selected index, and for 60% of the performance share awards granted, a return on invested capital (ROIC) performance measure is being used to determine the number of performance shares ultimately issuable. |
• | 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. |
2018 | 2017 | 2016 | |||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||
Outstanding share awards at January 1 | 117,252 | $ | 45.10 | 175,683 | $ | 62.26 | 92,563 | $ | 84.18 | ||||||||||||
Granted | 49,040 | 37.45 | 33,907 | 58.58 | 93,397 | 39.70 | |||||||||||||||
Settled | (73,243 | ) | 39.70 | (87,491 | ) | 84.65 | — | — | |||||||||||||
Forfeited | (14,619 | ) | 45.12 | (4,847 | ) | 47.61 | (10,277 | ) | 54.55 | ||||||||||||
Outstanding share awards at December 31 | 78,430 | 45.36 | 117,252 | 45.10 | 175,683 | 62.26 | |||||||||||||||
Aggregate intrinsic value (in thousands) | $ | 1,911 | $ | 5,323 | $ | 11,516 |
Volatility | 35 | % |
Risk-free interest rate | 2.74 | % |
Expected life-years | 6.0 |
Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding options at December 31, 2015 | 277,693 | $ | 64.47 | $ | — | ||||||||||||
Granted | 280,191 | 38.86 | $ | 14.42 | |||||||||||||
Forfeited | (30,830 | ) | 47.79 | ||||||||||||||
Outstanding options at December 31, 2016 | 527,054 | $ | 51.83 | 8.2 | $ | 7,232 | |||||||||||
Granted | 158,484 | 56.45 | 18.82 | ||||||||||||||
Forfeited | (22,306 | ) | 50.74 | ||||||||||||||
Expired | (5,913 | ) | 66.97 | ||||||||||||||
Outstanding options at December 31, 2017 | 657,319 | $ | 52.84 | 7.4 | $ | — | |||||||||||
Granted | 198,426 | 37.39 | 14.51 | ||||||||||||||
Forfeited | (69,557 | ) | 43.18 | ||||||||||||||
Expired | (24,254 | ) | 62.74 | ||||||||||||||
Outstanding options at December 31, 2018 | 761,934 | $ | 49.38 | 6.2 | $ | — | |||||||||||
Outstanding and exercisable options at December 31, 2018 | 273,776 | $ | 63.40 | 5.8 | $ | — |
December 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Cash, cash equivalents and restricted cash (Level 1) | $ | 24,947 | $ | 24,947 | $ | 16,738 | $ | 16,738 | ||||||||
Short-term borrowings under revolving credit facilities (Level 2) | 100,000 | 99,909 | 155,000 | 154,882 | ||||||||||||
Other short-term debt (Level 1) | 20,833 | 20,833 | — | — | ||||||||||||
Long-term debt (Level 2) | 675,000 | 612,546 | 575,000 | 569,250 |
(In thousands) | Capital | Operating | ||||||
2019 | $ | 3,093 | $ | 12,038 | ||||
2020 | 3,062 | 11,421 | ||||||
2021 | 3,112 | 10,424 | ||||||
2022 | 3,019 | 9,489 | ||||||
2023 | 2,789 | 7,163 | ||||||
Thereafter | 21,710 | 24,276 | ||||||
Total future minimum lease payments | $ | 36,785 | $ | 74,811 | ||||
Less interest portion | (13,887 | ) | ||||||
Present value of future minimum lease payments | $ | 22,898 |
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Segment net sales: | ||||||||||||
Consumer Products | $ | 884,812 | $ | 941,907 | $ | 988,380 | ||||||
Pulp and Paperboard | 839,406 | 788,501 | 746,383 | |||||||||
Total segment net sales | $ | 1,724,218 | $ | 1,730,408 | $ | 1,734,763 | ||||||
Operating (loss) income: | ||||||||||||
Consumer Products1,2,3 | $ | (2,731 | ) | $ | 28,973 | $ | 66,164 | |||||
Gain on divested assets4 | 23,952 | — | 1,755 | |||||||||
Goodwill impairment | (195,079 | ) | — | — | ||||||||
(173,858 | ) | 28,973 | 67,919 | |||||||||
Pulp and Paperboard 2,3 | 130,426 | 97,360 | 112,700 | |||||||||
(43,432 | ) | 126,333 | 180,619 | |||||||||
Corporate2,3,5 | (54,477 | ) | (55,148 | ) | (65,855 | ) | ||||||
(Loss) income from operations | $ | (97,909 | ) | $ | 71,185 | $ | 114,764 | |||||
Depreciation and amortization: | ||||||||||||
Consumer Products6 | $ | 57,784 | $ | 65,007 | $ | 59,375 | ||||||
Pulp and Paperboard | 37,798 | 34,474 | 26,741 | |||||||||
Corporate | 6,371 | 5,509 | 4,974 | |||||||||
Total depreciation and amortization | $ | 101,953 | $ | 104,990 | $ | 91,090 | ||||||
Assets: | ||||||||||||
Consumer Products | $ | 1,094,120 | $ | 1,069,876 | $ | 1,031,563 | ||||||
Pulp and Paperboard | 638,772 | 645,353 | 586,687 | |||||||||
1,732,892 | 1,715,229 | 1,618,250 | ||||||||||
Corporate | 55,226 | 87,023 | 66,092 | |||||||||
Total assets | $ | 1,788,118 | $ | 1,802,252 | $ | 1,684,342 | ||||||
Capital expenditures: | ||||||||||||
Consumer Products | $ | 307,794 | $ | 112,597 | $ | 47,079 | ||||||
Pulp and Paperboard | 17,943 | 74,616 | 104,113 | |||||||||
325,737 | 187,213 | 151,192 | ||||||||||
Corporate | 12,213 | 11,472 | 4,485 | |||||||||
Total capital expenditures | $ | 337,950 | $ | 198,685 | $ | 155,677 |
1 | Operating income for the Consumer Products segment for the twelve months ended December 31, 2017 include costs associated with the March 31, 2017 Oklahoma City facility closure. These costs include $4.3 million of loss on the write-down of assets to their held for sale value and $3.2 million of expenses associated with the execution of a sublease for the facility. |
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 3, "Recently Adopted and New Accounting Standards," and Note 13, "Savings, 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 twelve months ended December 31, 2018 include $1.9 million, $0.5 million and $4.5 million respectively, of expenses associated with our selling, general and administrative cost and control measures. |
4 | Gain on divested assets for the twelve months ended December 31, 2018 relates to the sale of our Ladysmith, Wisconsin facility. For additional discussion, see Note 4 "Asset Divestiture." |
5 | Corporate expenses for 2016 include $2.7 million of expenses associated with the acquisition of Manchester Industries. Operating results subsequent to the acquisition of Manchester are included in the Pulp and Paperboard segment. Corporate expenses for 2016 also include a $3.5 million settlement accounting charge associated with a pension lump sum buyout for term-vested participants. |
6 | Depreciation and amortization expense for the Consumer Products segment for the twelve months ended December 31, 2017 and 2016 includes accelerated depreciation of $3.7 million and $1.3 million, respectively, associated with the Oklahoma City facility closure. |
(In thousands) | 2018 | 2017 | 2016 | |||||||||
Primary geographical markets: | ||||||||||||
United States | $ | 1,648,610 | $ | 1,650,066 | $ | 1,663,231 | ||||||
Other Countries | 75,608 | 80,342 | 71,532 | |||||||||
Total Net Sales | $ | 1,724,218 | $ | 1,730,408 | $ | 1,734,763 | ||||||
Major products: | ||||||||||||
Retail tissue | $ | 794,434 | $ | 857,642 | $ | 865,765 | ||||||
Paperboard | 837,891 | 788,501 | 746,383 | |||||||||
Non-retail tissue | 88,214 | 81,044 | 121,291 | |||||||||
Other | 3,679 | 3,221 | 1,324 | |||||||||
Total net sales | $ | 1,724,218 | $ | 1,730,408 | $ | 1,734,763 |
Three Months Ended | ||||||||||||||||||||||||||||||||
(In thousands— except per-share amounts) | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Net sales | $ | 436,952 | $ | 437,525 | $ | 432,099 | $ | 429,663 | $ | 426,460 | $ | 426,504 | $ | 428,707 | $ | 436,716 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of sales | (392,433 | ) | (387,060 | ) | (387,154 | ) | (381,061 | ) | (376,221 | ) | (386,762 | ) | (382,204 | ) | (375,458 | ) | ||||||||||||||||
Selling, general and administrative expenses | (32,980 | ) | (29,955 | ) | (26,564 | ) | (29,454 | ) | (26,283 | ) | (34,582 | ) | (27,161 | ) | (34,891 | ) | ||||||||||||||||
Gain on divested assets | — | — | — | — | 22,944 | — | 1,008 | — | ||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | (195,079 | ) | — | |||||||||||||||||||||||
Total operating costs and expenses | (425,413 | ) | (417,015 | ) | (413,718 | ) | (410,515 | ) | (379,560 | ) | (421,344 | ) | (603,436 | ) | (410,349 | ) | ||||||||||||||||
Income (loss) from operations | 11,539 | 20,510 | 18,381 | 19,148 | 46,900 | 5,160 | (174,729 | ) | 26,367 | |||||||||||||||||||||||
Net earnings (loss) | $ | 2,600 | $ | 7,515 | $ | 6,961 | $ | 8,037 | $ | 34,444 | $ | 863 | $ | (187,772 | ) | $ | 80,924 | |||||||||||||||
Net earnings (loss) per common share1 | ||||||||||||||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.46 | $ | 0.42 | $ | 0.49 | $ | 2.09 | $ | 0.05 | $ | (11.39 | ) | $ | 4.92 | |||||||||||||||
Diluted | 0.16 | 0.45 | 0.42 | 0.48 | 2.08 | 0.05 | (11.39 | ) | 4.88 |
(1) | The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 1,752,343 | $ | 194,914 | $ | (223,039 | ) | $ | 1,724,218 | ||||||
Costs and expenses: | |||||||||||||||
Cost of sales | (1,583,009 | ) | (172,965 | ) | 217,962 | (1,538,012 | ) | ||||||||
Selling, general and administrative expenses | (92,236 | ) | (20,752 | ) | — | (112,988 | ) | ||||||||
Goodwill impairment | (195,079 | ) | — | — | (195,079 | ) | |||||||||
Gain on divested assets, net | — | 23,952 | — | 23,952 | |||||||||||
Total operating costs and expenses | (1,870,324 | ) | (169,765 | ) | 217,962 | (1,822,127 | ) | ||||||||
(Loss) income from operations | (117,981 | ) | 25,149 | (5,077 | ) | (97,909 | ) | ||||||||
Interest expense, net | (30,115 | ) | (505 | ) | — | (30,620 | ) | ||||||||
Non-operating pension and other post employment benefit costs | (4,933 | ) | — | — | (4,933 | ) | |||||||||
(Loss) earnings before income taxes | (153,029 | ) | 24,644 | (5,077 | ) | (133,462 | ) | ||||||||
Income tax provision | (5,240 | ) | (6,343 | ) | 1,278 | (10,305 | ) | ||||||||
Equity in earnings of subsidiary | 18,301 | — | (18,301 | ) | — | ||||||||||
Net (loss) earnings | $ | (139,968 | ) | $ | 18,301 | $ | (22,100 | ) | $ | (143,767 | ) | ||||
Other comprehensive loss, net of tax | (10,513 | ) | — | — | (10,513 | ) | |||||||||
Comprehensive (loss) income | $ | (150,481 | ) | $ | 18,301 | $ | (22,100 | ) | $ | (154,280 | ) |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 1,707,283 | $ | 242,222 | $ | (219,097 | ) | $ | 1,730,408 | ||||||
Costs and expenses: | |||||||||||||||
Cost of sales | (1,525,645 | ) | (219,931 | ) | 215,235 | (1,530,341 | ) | ||||||||
Selling, general and administrative expenses | (98,412 | ) | (30,470 | ) | — | (128,882 | ) | ||||||||
Total operating costs and expenses | (1,624,057 | ) | (250,401 | ) | 215,235 | (1,659,223 | ) | ||||||||
Income (loss) from operations | 83,226 | (8,179 | ) | (3,862 | ) | 71,185 | |||||||||
Interest expense, net | (30,820 | ) | (554 | ) | — | (31,374 | ) | ||||||||
Non-operating pension and other post employment benefit income | 1,143 | — | — | 1,143 | |||||||||||
Earnings (loss) before income taxes | 53,549 | (8,733 | ) | (3,862 | ) | 40,954 | |||||||||
Income tax benefit | 34,250 | 20,644 | 1,491 | 56,385 | |||||||||||
Equity in earnings of subsidiary | 11,911 | — | (11,911 | ) | — | ||||||||||
Net earnings | $ | 99,710 | $ | 11,911 | $ | (14,282 | ) | $ | 97,339 | ||||||
Other comprehensive income, net of tax | 7,770 | — | — | 7,770 | |||||||||||
Comprehensive income | $ | 107,480 | $ | 11,911 | $ | (14,282 | ) | $ | 105,109 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
Net sales | $ | 1,685,327 | $ | 287,952 | $ | (238,516 | ) | $ | 1,734,763 | ||||||
Costs and expenses: | |||||||||||||||
Cost of sales | (1,466,623 | ) | (263,577 | ) | 236,641 | (1,493,559 | ) | ||||||||
Selling, general and administrative expenses | (114,142 | ) | (14,053 | ) | — | (128,195 | ) | ||||||||
Gain on divested assets, net | 1,755 | — | — | 1,755 | |||||||||||
Total operating costs and expenses | (1,579,010 | ) | (277,630 | ) | 236,641 | (1,619,999 | ) | ||||||||
Income from operations | 106,317 | 10,322 | (1,875 | ) | 114,764 | ||||||||||
Interest expense, net | (30,462 | ) | (189 | ) | — | (30,651 | ) | ||||||||
Non-operating pension and other post employment benefit costs | (3,447 | ) | — | — | (3,447 | ) | |||||||||
Earnings before income taxes | 72,408 | 10,133 | (1,875 | ) | 80,666 | ||||||||||
Income tax provision | (26,966 | ) | (4,802 | ) | 656 | (31,112 | ) | ||||||||
Equity in earnings of subsidiary | 5,331 | — | (5,331 | ) | — | ||||||||||
Net earnings | $ | 50,773 | $ | 5,331 | $ | (6,550 | ) | $ | 49,554 | ||||||
Other comprehensive income, net of tax | 3,795 | — | — | 3,795 | |||||||||||
Comprehensive income | $ | 54,568 | $ | 5,331 | $ | (6,550 | ) | $ | 53,349 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | ||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 22,484 | $ | — | $ | — | $ | 22,484 | ||||||
Receivables, net | 127,952 | 17,567 | — | 145,519 | ||||||||||
Taxes receivable | 16,634 | 41 | (10,374 | ) | 6,301 | |||||||||
Inventories | 222,960 | 48,361 | (5,077 | ) | 266,244 | |||||||||
Other current assets | 3,346 | 53 | — | 3,399 | ||||||||||
Total current assets | 393,376 | 66,022 | (15,451 | ) | 443,947 | |||||||||
Property, plant and equipment, net | 1,192,716 | 76,555 | — | 1,269,271 | ||||||||||
Goodwill | 35,074 | — | — | 35,074 | ||||||||||
Intangible assets, net | 1,045 | 23,035 | — | 24,080 | ||||||||||
Intercompany (payable) receivable | (62,846 | ) | 57,769 | 5,077 | — | |||||||||
Investment in subsidiary | 175,301 | — | (175,301 | ) | — | |||||||||
Other assets, net | 14,839 | 2,618 | (1,711 | ) | 15,746 | |||||||||
TOTAL ASSETS | $ | 1,749,505 | $ | 225,999 | $ | (187,386 | ) | $ | 1,788,118 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt | $ | 120,833 | $ | — | $ | — | $ | 120,833 | ||||||
Accounts payable and accrued liabilities | 299,715 | 31,691 | (10,374 | ) | 321,032 | |||||||||
Current liability for pensions and other postretirement employee benefits | 7,430 | — | — | 7,430 | ||||||||||
Total current liabilities | 427,978 | 31,691 | (10,374 | ) | 449,295 | |||||||||
Long-term debt | 671,292 | — | — | 671,292 | ||||||||||
Liability for pensions and other postretirement employee benefits | 78,191 | — | — | 78,191 | ||||||||||
Other long-term obligations | 38,977 | — | — | 38,977 | ||||||||||
Accrued taxes | 1,918 | 867 | — | 2,785 | ||||||||||
Deferred tax liabilities | 104,753 | 18,140 | (1,711 | ) | 121,182 | |||||||||
TOTAL LIABILITIES | 1,323,109 | 50,698 | (12,085 | ) | 1,361,722 | |||||||||
Accumulated other comprehensive loss, net of tax | (67,348 | ) | — | — | (67,348 | ) | ||||||||
Stockholders’ equity excluding accumulated other comprehensive loss | 493,744 | 175,301 | (175,301 | ) | 493,744 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,749,505 | $ | 225,999 | $ | (187,386 | ) | $ | 1,788,118 |
(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) receivable | (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: | |||||||||||||||
Short-term debt | $ | 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 | ||||||||||
Accumulated other comprehensive loss, net of tax | (43,983 | ) | — | — | (43,983 | ) | |||||||||
Stockholders’ equity excluding accumulated other comprehensive loss | 619,417 | 157,000 | (157,000 | ) | 619,417 | ||||||||||
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 (loss) earnings | $ | (139,968 | ) | $ | 18,301 | $ | (22,100 | ) | $ | (143,767 | ) | ||||
Adjustments to reconcile net (loss) earnings to net cash flows from operating activities: | |||||||||||||||
Goodwill impairment | 195,079 | — | — | 195,079 | |||||||||||
Depreciation and amortization | 81,812 | 20,141 | — | 101,953 | |||||||||||
Equity-based compensation expense | 3,314 | — | — | 3,314 | |||||||||||
Deferred taxes | 15,019 | (7,935 | ) | — | 7,084 | ||||||||||
Employee benefit plans | (116 | ) | — | — | (116 | ) | |||||||||
Deferred issuance costs on debt | 1,356 | — | — | 1,356 | |||||||||||
Gain on divested assets, net | — | (25,510 | ) | — | (25,510 | ) | |||||||||
Disposal of plant and equipment, net | 727 | (1 | ) | — | 726 | ||||||||||
Other non-cash activity | 146 | — | — | 146 | |||||||||||
Changes in working capital, net | 24,455 | 904 | (9,159 | ) | 16,200 | ||||||||||
Change in taxes receivable, net | 3,607 | (1 | ) | 10,374 | 13,980 | ||||||||||
Other, net | (1,790 | ) | 244 | — | (1,546 | ) | |||||||||
Net cash flows from operating activities | 183,641 | 6,143 | (20,885 | ) | 168,899 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and equipment | (293,766 | ) | (1,942 | ) | — | (295,708 | ) | ||||||||
Net proceeds from divested assets | 70,930 | — | — | 70,930 | |||||||||||
Other, net | 793 | 14 | — | 807 | |||||||||||
Net cash flows from investing activities | (222,043 | ) | (1,928 | ) | — | (223,971 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Borrowings on short-term debt | 630,848 | — | — | 630,848 | |||||||||||
Repayments of borrowings on short-term debt | (565,015 | ) | — | — | (565,015 | ) | |||||||||
Investment (to) from parent | (16,670 | ) | (4,215 | ) | 20,885 | — | |||||||||
Payment of tax withholdings on equity- based payment arrangements | (413 | ) | — | — | (413 | ) | |||||||||
Payments for debt issuance costs | (2,139 | ) | — | — | (2,139 | ) | |||||||||
Net cash flows from financing activities | 46,611 | (4,215 | ) | 20,885 | 63,281 | ||||||||||
Increase in cash, cash equivalents and restricted cash | 8,209 | — | — | 8,209 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 16,738 | — | — | 16,738 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 24,947 | $ | — | $ | — | $ | 24,947 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 99,710 | $ | 11,911 | $ | (14,282 | ) | $ | 97,339 | ||||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 76,862 | 28,128 | — | 104,990 | |||||||||||
Equity-based compensation expense | 3,620 | — | — | 3,620 | |||||||||||
Deferred taxes | (16,957 | ) | (23,632 | ) | — | (40,589 | ) | ||||||||
Employee benefit plans | (4,371 | ) | — | — | (4,371 | ) | |||||||||
Deferred issuance costs on debt | 1,199 | — | — | 1,199 | |||||||||||
Disposal of plant and equipment, net | 512 | 3,541 | — | 4,053 | |||||||||||
Other non-cash activity | 1,750 | — | — | 1,750 | |||||||||||
Changes in working capital, net | 8,776 | 5,529 | 7,456 | 21,761 | |||||||||||
Change in taxes receivable, net | (5,099 | ) | (5 | ) | (5,469 | ) | (10,573 | ) | |||||||
Other, net | 2,585 | (3,094 | ) | — | (509 | ) | |||||||||
Net cash flows from operating activities | 168,587 | 22,378 | (12,295 | ) | 178,670 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and equipment | (193,864 | ) | (5,884 | ) | — | (199,748 | ) | ||||||||
Other, net | 283 | 668 | — | 951 | |||||||||||
Net cash flows from investing activities | (193,581 | ) | (5,216 | ) | — | (198,797 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Purchase of treasury stock | (4,875 | ) | — | — | (4,875 | ) | |||||||||
Borrowings on short-term debt | 298,308 | — | — | 298,308 | |||||||||||
Repayments of borrowings on short-term debt | (278,308 | ) | — | — | (278,308 | ) | |||||||||
Investment from (to) parent | 8,282 | (20,577 | ) | 12,295 | — | ||||||||||
Payment of tax withholdings on equity-based payment arrangements | (1,127 | ) | — | — | (1,127 | ) | |||||||||
Payments for debt issuance costs | (134 | ) | — | — | (134 | ) | |||||||||
Net cash flows from financing activities | 22,146 | (20,577 | ) | 12,295 | 13,864 | ||||||||||
Decrease in cash, cash equivalents and restricted cash | (2,848 | ) | (3,415 | ) | — | (6,263 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 19,586 | 3,415 | — | 23,001 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 16,738 | $ | — | $ | — | $ | 16,738 |
(In thousands) | Issuer | Guarantor Subsidiaries | Eliminations | Total | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 50,773 | $ | 5,331 | $ | (6,550 | ) | $ | 49,554 | ||||||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||||||||||
Depreciation and amortization | 68,496 | 22,594 | — | 91,090 | |||||||||||
Equity-based compensation expense | 12,385 | — | — | 12,385 | |||||||||||
Deferred taxes | 18,860 | 605 | (1,138 | ) | 18,327 | ||||||||||
Employee benefit plans | (1,979 | ) | — | — | (1,979 | ) | |||||||||
Deferred issuance costs on debt | 1,242 | — | — | 1,242 | |||||||||||
Disposal of plant and equipment, net | 781 | 600 | — | 1,381 | |||||||||||
Other non-cash activities | 740 | 18 | — | 758 | |||||||||||
Changes in working capital, net of acquisition | (642 | ) | 774 | (3,594 | ) | (3,462 | ) | ||||||||
Change in taxes receivable, net | 1,078 | (1,405 | ) | 5,469 | 5,142 | ||||||||||
Other, net | (1,904 | ) | (921 | ) | 1,138 | (1,687 | ) | ||||||||
Net cash flows from operating activities | 149,830 | 27,596 | (4,675 | ) | 172,751 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and equipment | (145,579 | ) | (9,770 | ) | — | (155,349 | ) | ||||||||
Acquisition of Manchester Industries, net of cash acquired | (67,443 | ) | — | — | (67,443 | ) | |||||||||
Other, net | 250 | 36 | — | 286 | |||||||||||
Net cash flows from investing activities | (212,772 | ) | (9,734 | ) | — | (222,506 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Borrowings on short-term debt | 1,273,959 | — | — | 1,273,959 | |||||||||||
Repayments of borrowings on short-term debt | (1,138,959 | ) | — | — | (1,138,959 | ) | |||||||||
Purchase of treasury stock | (65,327 | ) | — | — | (65,327 | ) | |||||||||
Investment from (to) parent | 9,772 | (14,447 | ) | 4,675 | — | ||||||||||
Payments for debt issuance costs | (1,906 | ) | — | — | (1,906 | ) | |||||||||
Payment of tax withholdings on equity-based payment arrangements | (933 | ) | — | — | (933 | ) | |||||||||
Other, net | 312 | — | — | 312 | |||||||||||
Net cash flows from financing activities | 76,918 | (14,447 | ) | 4,675 | 67,146 | ||||||||||
Increase in cash, cash equivalents and restricted cash | 13,976 | 3,415 | — | 17,391 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 5,610 | — | — | 5,610 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 19,586 | $ | 3,415 | $ | — | $ | 23,001 |
ITEM 9. | |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
ITEM 9A. | |
Controls and Procedures |
(i) | With respect to events and transactions outside the ordinary course of business: |
a. | we did not maintain a sufficient complement of personnel with the appropriate knowledge and experience in generally accepted accounting principles and their application to our financial reporting processes and related internal controls; and |
b. | we did not conduct effective risk assessment that adequately identified, assessed and addressed risks of material misstatement in the financial statements, including fraud risks and risks from changes in our operations and organizational structure. |
(ii) | As a consequence, we did not design and maintain effective process-level controls over the identification and accounting implications of changes made to payment arrangements with vendors. |
ITEM 9B. | |
Other Information |
ITEM 10. | |
Directors, Executive Officers and Corporate Governance |
ITEM 11. | |
Executive Compensation |
ITEM 12. | |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
ITEM 13. | |
Certain Relationships and Related Transactions, and Director Independence |
ITEM 14. | |
Principal Accounting Fees and Services |
ITEM 15. | |
Exhibits, Financial Statement Schedules |
EXHIBIT NUMBER | DESCRIPTION | |
3.1* | ||
3.2* | ||
4.1* | ||
4.2* | ||
4.3* | ||
4.4* | ||
10.1* | ||
10.1(i)* | ||
10.1(ii)* | ||
10.1(iii)* | ||
10.1(iv) | ||
10.2* | ||
10.2(i)* | ||
10.2(ii)* | ||
10.2(iii)* | ||
10.2(iv) | ||
10.3*1 | ||
10.4*1 | ||
10.4(i)*1 | ||
10.5*1 | ||
10.5(i)*1 | ||
10.5(ii)*1 | ||
10.6*1 | ||
10.6(i)*1 | ||
10.6(ii)*1 | ||
10.7*1 | ||
10.7(i)*1 | ||
10.7(ii)*1 | ||
10.7(iii)*1 | ||
10.7(iv)*1 | ||
10.8*1 | ||
10.8(i)*1 | ||
10.8(ii)*1 | ||
10.8(iii)*1 | ||
10.8(iv)*1 | ||
10.8(v)*1 | ||
10.9*1 | ||
10.9(i)*1 | ||
10.10*1 | ||
10.11*1 | ||
10.11(i)*1 | ||
10.12*1 | ||
10.13*1 | ||
10.13(i)*1 | ||
10.14*1 | ||
10.14(i)*1 | ||
10.15*1 | ||
(21) | ||
(23) | ||
(24) | ||
(31) | ||
(32) | ||
101 | Pursuant to Rule 405 of Regulation S-T, the following financial information from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018, is formatted in XBRL interactive data files: (i) Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016; (ii) Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018, 2017 and 2016; (iii) Consolidated Balance Sheets at December 31, 2018 and 2017, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016 and (vi) Notes to Consolidated Financial Statements. |
* | Incorporated by reference. |
1 | Management contract or compensatory plan, contract or arrangement. |
ITEM 16. | |
Form 10-K Summary |
CLEARWATER PAPER CORPORATION | |||
(Registrant) | |||
By | /s/ Linda K. Massman | ||
Linda K. Massman President, Chief Executive Officer and Director (Principal Executive Officer) |
Date | ||||||
By | /s/ Linda K. Massman | President, Chief Executive Officer and Director (Principal Executive Officer) | March 18, 2019 | |||
Linda K. Massman | ||||||
By | /s/ John D. Hertz | Senior Vice President, Finance and Chief Financial Officer (Duly Authorized Officer; Principal Financial Officer) | March 18, 2019 | |||
John D. Hertz | ||||||
By | /s/ Robert N. Dammarell | Vice President, Corporate Controller (Duly Authorized Officer; Principal Accounting Officer) | March 18, 2019 | |||
Robert N. Dammarell | ||||||
* Alexander Toeldte | Director and Chair of the Board | March 18, 2019 | ||||
* Kevin J. Hunt | Director | March 18, 2019 | ||||
* William D. Larsson | Director | March 18, 2019 | ||||
* John P. O'Donnell | Director | March 18, 2019 | ||||
*By | /s/ Michael S. Gadd | |
Michael S. Gadd (Attorney-in-fact) |
ARTICLE I DEFINITIONS | 1 | |
SECTION 1.1 | Definitions | 1 |
SECTION 1.2 | Other Definitions and Provisions | 30 |
SECTION 1.3 | Accounting Terms | 30 |
SECTION 1.4 | UCC Terms | 30 |
SECTION 1.5 | Rounding | 31 |
SECTION 1.6 | References to Agreement and Laws | 31 |
SECTION 1.7 | Times of Day | 31 |
SECTION 1.8 | Letter of Credit Amounts | 31 |
SECTION 1.9 | Guarantees | 31 |
SECTION 1.10 | Covenant Compliance Generally | 31 |
ARTICLE II REVOLVING CREDIT FACILITY | 32 | |
SECTION 2.1 | Revolving Credit Loans | 32 |
SECTION 2.2 | Swingline Loans | 32 |
SECTION 2.3 | Procedure for Advances of Revolving Credit Loans and Swingline Loans | 34 |
SECTION 2.4 | Repayment and Prepayment of Revolving Credit and Swingline Loans | 34 |
SECTION 2.5 | Permanent Reduction of the Revolving Credit Commitment | 36 |
SECTION 2.6 | Termination of Revolving Credit Facility | 36 |
ARTICLE III LETTER OF CREDIT FACILITY | 36 | |
SECTION 3.1 | L/C Facility | 36 |
SECTION 3.2 | Procedure for Issuance of Letters of Credit | 37 |
SECTION 3.3 | Commissions and Other Charges | 37 |
SECTION 3.4 | L/C Participations | 38 |
SECTION 3.5 | Reimbursement Obligation of the Borrower | 39 |
SECTION 3.6 | Obligations Absolute | 39 |
SECTION 3.7 | Effect of Letter of Credit Application | 40 |
SECTION 3.8 | Resignation of Issuing Lenders | 40 |
SECTION 3.9 | Reporting of Letter of Credit Information and L/C Commitment | 40 |
SECTION 3.10 | Letters of Credit Issued for Subsidiary Guarantors | 41 |
ARTICLE IV GENERAL LOAN PROVISIONS | 41 | |
SECTION 4.1 | Interest | 41 |
SECTION 4.2 | Notice and Manner of Conversion or Continuation of Loans | 42 | |
SECTION 4.3 | Fees | 43 | |
SECTION 4.4 | Manner of Payment | 43 | |
SECTION 4.5 | Evidence of Indebtedness | 44 | |
SECTION 4.6 | Sharing of Payments by Lenders | 44 | |
SECTION 4.7 | Administrative Agent’s Clawback | 45 | |
SECTION 4.8 | Changed Circumstances | 46 | |
SECTION 4.9 | Indemnity | 46 | |
SECTION 4.10 | Increased Costs | 47 | |
SECTION 4.11 | Taxes | 48 | |
SECTION 4.12 | Mitigation Obligations; Replacement of Lenders | 52 | |
SECTION 4.13 | Incremental Loans | 53 | |
SECTION 4.14 | Cash Collateral | 56 | |
SECTION 4.15 | Defaulting Lenders | 57 | |
ARTICLE V CONDITIONS OF CLOSING AND BORROWING | 59 | ||
SECTION 5.1 | Conditions to Closing and Initial Extensions of Credit | 59 | |
SECTION 5.2 | Conditions to All Extensions of Credit | 63 | |
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES | 64 | ||
SECTION 6.1 | Organization; Power; Qualification | 64 | |
SECTION 6.2 | Ownership | 64 | |
SECTION 6.3 | Authorization; Enforceability | 64 | |
SECTION 6.4 | Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc | 64 | |
SECTION 6.5 | Compliance with Law; Governmental Approvals | 65 | |
SECTION 6.6 | Tax Returns and Payments | 65 | |
SECTION 6.7 | Intellectual Property Matters | 65 | |
SECTION 6.8 | Environmental Matters | 66 | |
SECTION 6.9 | Employee Benefit Matters | 66 | |
SECTION 6.10 | Margin Stock | 67 | |
SECTION 6.11 | Government Regulation | 67 | |
SECTION 6.12 | Employee Relations | 68 | |
SECTION 6.13 | Financial Statements | 68 | |
SECTION 6.14 | No Material Adverse Effect | 68 |
SECTION 6.15 | Solvency | 68 |
SECTION 6.16 | Title to Properties | 68 |
SECTION 6.17 | Litigation | 68 |
SECTION 6.18 | Anti-Corruption Laws and Sanctions | 68 |
SECTION 6.19 | Absence of Defaults | 69 |
SECTION 6.20 | Senior Indebtedness Status | 69 |
SECTION 6.21 | Disclosure | 69 |
ARTICLE VII AFFIRMATIVE COVENANTS | 69 | |
SECTION 7.1 | Financial Statements and Budgets | 69 |
SECTION 7.2 | Certificates; Other Reports | 70 |
SECTION 7.3 | Notice of Litigation and Other Matters | 71 |
SECTION 7.4 | Preservation of Corporate Existence and Related Matters | 72 |
SECTION 7.5 | Maintenance of Property and Licenses | 72 |
SECTION 7.6 | Insurance | 72 |
SECTION 7.7 | Accounting Methods and Financial Records | 73 |
SECTION 7.8 | Payment of Taxes and Other Obligations | 73 |
SECTION 7.9 | Compliance with Laws and Approvals | 73 |
SECTION 7.10 | Environmental Laws | 73 |
SECTION 7.11 | Compliance with ERISA | 73 |
SECTION 7.12 | Visits and Inspections | 73 |
SECTION 7.13 | Additional Subsidiaries | 74 |
SECTION 7.14 | Use of Proceeds | 75 |
SECTION 7.15 | Compliance with Anti-Corruption Laws and Sanctions | 76 |
SECTION 7.16 | Further Assurances | 76 |
SECTION 7.17 | Post-Closing Matters | 76 |
ARTICLE VIII NEGATIVE COVENANTS | 76 | |
SECTION 8.1 | Indebtedness | 76 |
SECTION 8.2 | Liens | 78 |
SECTION 8.3 | Investments | 80 |
SECTION 8.4 | Fundamental Changes | 82 |
SECTION 8.5 | Asset Dispositions | 83 |
SECTION 8.6 | Restricted Payments | 84 |
SECTION 8.7 | Transactions with Affiliates | 84 |
SECTION 8.8 | Accounting Changes; Organizational Documents | 85 |
SECTION 8.9 | Payments and Modifications of Subordinated Indebtedness | 85 |
SECTION 8.10 | No Further Negative Pledges; Restrictive Agreements | 86 |
SECTION 8.11 | Nature of Business | 87 |
SECTION 8.12 | Sale Leasebacks | 87 |
SECTION 8.13 | Financial Covenants | 87 |
SECTION 8.14 | Disposal of Subsidiary Interests | 87 |
ARTICLE IX DEFAULT AND REMEDIES | 87 | |
SECTION 9.1 | Events of Default | 87 |
SECTION 9.2 | Remedies | 89 |
SECTION 9.3 | Rights and Remedies Cumulative; Non-Waiver; etc | 90 |
SECTION 9.4 | Crediting of Payments and Proceeds | 91 |
SECTION 9.5 | Administrative Agent May File Proofs of Claim | 92 |
SECTION 9.6 | Credit Bidding | 92 |
SECTION 9.7 | Lender Action | 92 |
SECTION 9.8 | Intercreditor Agreement | 93 |
ARTICLE X THE ADMINISTRATIVE AGENT | 93 | |
SECTION 10.1 | Appointment and Authority | 93 |
SECTION 10.2 | Rights as a Lender | 94 |
SECTION 10.3 | Exculpatory Provisions | 94 |
SECTION 10.4 | Reliance by the Administrative Agent | 95 |
SECTION 10.5 | Delegation of Duties | 95 |
SECTION 10.6 | Resignation of Administrative Agent | 95 |
SECTION 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 97 |
SECTION 10.8 | No Other Duties, Etc | 97 |
SECTION 10.9 | Collateral and Guaranty Matters | 97 |
SECTION 10.10 | Secured Hedge Agreements and Secured Cash Management Agreements | 98 |
ARTICLE XI MISCELLANEOUS | 98 | |
SECTION 11.1 | Notices | 98 |
SECTION 11.2 | Amendments, Waivers and Consents | 100 |
SECTION 11.3 | Expenses; Indemnity | 102 |
SECTION 11.4 | Right of Setoff | 105 |
SECTION 11.5 | Governing Law; Jurisdiction, Etc | 105 |
SECTION 11.6 | Waiver of Jury Trial | 106 |
SECTION 11.7 | Reversal of Payments | 106 |
SECTION 11.8 | Successors and Assigns; Participations | 106 |
SECTION 11.9 | Treatment of Certain Information; Confidentiality | 110 |
SECTION 11.10 | Performance of Duties | 111 |
SECTION 11.11 | All Powers Coupled with Interest | 112 |
SECTION 11.12 | Survival | 112 |
SECTION 11.13 | Titles and Captions | 112 |
SECTION 11.14 | Severability of Provisions | 112 |
SECTION 11.15 | Counterparts; Integration; Effectiveness; Electronic Execution | 112 |
SECTION 11.16 | Term of Agreement | 113 |
SECTION 11.17 | USA PATRIOT Act | 113 |
SECTION 11.18 | Independent Effect of Covenants | 113 |
SECTION 11.19 | No Advisory or Fiduciary Responsibility | 113 |
SECTION 11.20 | Inconsistencies with Other Documents | 114 |
SECTION 11.21 | Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 114 |
EXHIBITS | ||
Exhibit A-1 | - | Form of Revolving Credit Note Exhibit A-2 |
Exhibit B | - | Form of Notice of Borrowing |
Exhibit C | - | Form of Notice of Account Designation |
Exhibit D | - | Form of Notice of Prepayment |
Exhibit E | - | Form of Notice of Conversion/Continuation Exhibit F |
Exhibit G | - | Form of Assignment and Assumption |
Exhibit H-1 | - | Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Lenders) |
Exhibit H-2 | - | Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Participants) |
Exhibit H-3 | - | Form of U.S. Tax Compliance Certificate (Foreign Participant Partnerships) |
Exhibit H-4 | - | Form of U.S. Tax Compliance Certificate (Foreign Lender Partnerships) |
SCHEDULES | ||
Schedule 1.1 | - | Existing Letters of Credit |
Schedule 1.1(b) | - | Commitments and Commitment Percentages Schedule 6.1 |
Schedule 6.2 | - | Subsidiaries and Capitalization Schedule 6.9 |
Schedule 6.12 | - | Labor and Collective Bargaining Agreements Schedule 6.17 |
Schedule 7.17 | - | Post-Closing Matters Schedule 8.1 |
Schedule 8.2 | - | Existing Liens |
Schedule 8.3 | - | Existing Loans, Advances and Investments Schedule 8.7 |
Schedule 8.7 | - | Transactions with Affiliates |
Pricing Level | Consolidated Total Leverage Ratio | Commitment Fee | LIBOR + | Base Rate + |
I | Less than 2.00 to 1.00 | 0.20% | 1.25% | 0.25% |
II | Greater than or equal to 2.00 to 1.00, but less than 3.00 to 1.00 | 0.25% | 1.50% | 0.50% |
III | Greater than or equal to 3.00 to 1.00, but less than 4.00 to 1.00 | 0.30% | 1.75% | 0.75% |
IV | Greater than or equal to 4.00 to 1.00, but less than 4.50 to 1.00 | 0.35% | 2.00% | 1.00% |
V | Greater than or equal to 4.50 to 1.00 | 0.40% | 2.50% | 1.50% |
(i) | the aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, |
(ii) | such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then outstanding, |
(iii) | such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans then outstanding and (iv) the aggregate principal amount of any Term Loans made by such Lender then outstanding, or |
(g) | all obligations of any such Person in respect of Disqualified Equity Interests; |
(h) | all net obligations of such Person under any Hedge Agreements; and |
(i) | all Guarantees of any such Person with respect to any of the foregoing. |
(b) | to the extent not otherwise described in clause (a), Other Taxes. “Initial Issuing Lender” means Wells Fargo. |
(b) | Refunding. |
(g) | Status of Lenders. |
(ii) | Without limiting the generality of the foregoing: |
(2) | executed copies of IRS Form W-8ECI; |
(iv) | such assignment does not conflict with Applicable Law; and |
(d) | Mandatory Prepayment from Debt Issuances. |
(iii) | Certain Fees. |
(c) | Personal Property Collateral. |
(d) | Consents; Defaults. |
(e) | Financial Matters. |
(g) | Miscellaneous. |
(d) | New Swingline Loans/Letters of Credit. So long as any Lender is a Defaulting Lender, |
(b) | Permitted Liens). |
(g) | unsecured intercompany Indebtedness: |
(k) | Indebtedness of Foreign Subsidiaries in an aggregate principal amount not to exceed |
(b) | Investments in cash and Cash Equivalents; |
(e) | Hedge Agreements permitted pursuant to Section 8.1; |
(g) | Permitted Acquisitions; |
(k) | Investments comprising Indebtedness permitted pursuant to Section 8.1; |
(l) | Investments in the form of Restricted Payments permitted pursuant to Section 8.6; |
(m) | Guarantees permitted pursuant to Section 8.1; |
(f) | the Permitted Subsidiary-1 Equity Sale; and |
(d) | Asset Dispositions in connection with Insurance and Condemnation Events; |
(g) | the granting, creation or existence of a Permitted Lien; |
(k) | any Restricted Payment permitted by Section 8.6; |
(l) | any Investment permitted by Section 8.3; |
(m) | the termination of a lease of real or personal Property; |
(q) | the sale of Receivables and Related Assets in Permitted A/R Finance Transactions; and |
(ii) | transactions existing on the Closing Date and described on Schedule 8.7; |
(iii) | transactions among Credit Parties; |
Fiscal Quarters Ending: | Ratio: |
Prior to and including December 31, 2019 | 2.00:1.00 |
March 31, 2020 and thereafter | 1.50:1.00 |
(g) | Change in Control. Any Change in Control shall occur. |
(h) | Voluntary Bankruptcy Proceeding. Any Credit Party or any Subsidiary thereof shall |
(b) | The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 11.2 and Section 9.2) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final nonappealable judgment. The Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Administrative Agent by the Borrower, a Lender or an Issuing Lender. |
(b) | If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause |
(e) | Platform. |
(b) | the effects of any Bail-In Action on any such liability, including, if applicable: |
Page | ||
ARTICLE I. DEFINITIONS | 1 | |
Section 1.1 | Definitions | 1 |
Section 1.2 | Other Definitions and Provisions | 28 |
Section 1.3 | Accounting Terms | 29 |
Section 1.4 | UCC Terms | 29 |
Section 1.5 | Rounding | 29 |
Section 1.6 | References to Agreement and Laws | 29 |
Section 1.7 | Times of Day | 30 |
Section 1.8 | Reserved | 30 |
Section 1.9 | Guarantees | 30 |
Section 1.10 | Covenant Compliance Generally | 30 |
ARTICLE II. REVOLVING CREDIT FACILITY | 30 | |
Section 2.1 | Revolving Credit Loans | 30 |
Section 2.2 | Reserved | 30 |
Section 2.3 | Procedure for Advances of Revolving Credit Loans | 30 |
Section 2.4 | Repayment and Prepayment of Revolving Credit | 31 |
Section 2.5 | Permanent Reduction of the Revolving Credit Commitment | 32 |
Section 2.6 | Termination of Revolving Credit Facility | 33 |
ARTICLE III. Reserved | 33 | |
ARTICLE IV. GENERAL LOAN PROVISIONS | 33 | |
Section 4.1 | Interest | 33 |
Section 4.2 | Notice and Manner of Conversion or Continuation of Loans | 34 |
Section 4.3 | Fees | 35 |
Section 4.4 | Manner of Payment | 35 |
Section 4.5 | Evidence of Indebtedness | 36 |
Section 4.6 | Sharing of Payments by Lenders | 36 |
Section 4.7 | Administrative Agent’s Clawback | 37 |
Section 4.8 | Changed Circumstances | 37 |
Section 4.9 | Indemnity | 38 |
Section 4.10 | Increased Costs | 39 |
Section 4.11 | Taxes | 40 |
Section 4.12 | Mitigation Obligations; Replacement of Lenders | 44 |
Section 4.13 | Incremental Loans | 45 |
Section 4.14 | Reserved | 48 |
Section 4.15 | Defaulting Lenders | 49 |
Section 4.16 | Capital Plans | 50 |
ARTICLE V. CONDITIONS OF CLOSING AND BORROWING | 50 | |
Section 5.1 | Conditions to Closing and Initial Extensions of Credit | 51 |
Section 5.2 | Conditions to All Extensions of Credit | 55 |
ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES | 55 | |
Section 6.1 | Organization; Power; Qualification | 55 |
Section 6.2 | Ownership | 55 |
Section 6.3 | Authorization; Enforceability | 56 |
Section 6.4 | Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc | 56 |
Section 6.5 | Compliance with Law; Governmental Approvals | 56 |
Section 6.6 | Tax Returns and Payments | 56 |
Section 6.7 | Intellectual Property Matters | 57 |
Section 6.8 | Environmental Matters | 57 |
Section 6.9 | Employee Benefit Matters | 58 |
Section 6.10 | Margin Stock | 59 |
Section 6.11 | Government Regulation | 59 |
Section 6.12 | Employee Relations | 59 |
Section 6.13 | Financial Statements | 59 |
Section 6.14 | No Material Adverse Effect | 59 |
Section 6.15 | Solvency | 59 |
Section 6.16 | Title to Properties | 59 |
Section 6.17 | Litigation | 60 |
Section 6.18 | Anti-Corruption Laws and Sanctions | 60 |
Section 6.19 | Absence of Defaults | 60 |
Section 6.20 | Senior Indebtedness Status | 60 |
Section 6.21 | Disclosure | 60 |
ARTICLE VII. AFFIRMATIVE COVENANTS | 60 | |
Section 7.1 | Financial Statements and Budgets | 61 |
Section 7.2 | Certificates; Other Reports | 61 |
Section 7.3 | Notice of Litigation and Other Matters | 63 |
Section 7.4 | Preservation of Corporate Existence and Related Matters | 63 |
Section 7.5 | Maintenance of Property and Licenses | 64 |
Section 7.6 | Insurance | 64 |
Section 7.7 | Accounting Methods and Financial Records | 64 |
Section 7.8 | Payment of Taxes and Other Obligations | 64 |
Section 7.9 | Compliance with Laws and Approvals | 64 |
Section 7.10 | Environmental Laws | 64 |
Section 7.11 | Compliance with ERISA | 65 |
Section 7.12 | Visits and Inspections | 65 |
Section 7.13 | Additional Subsidiaries | 65 |
Section 7.14 | Use of Proceeds | 67 |
Section 7.15 | Compliance with Anti-Corruption Laws and Sanctions | 67 |
Section 7.16 | Further Assurances | 67 |
Section 7.17 | Farm Credit Equity | 67 |
Section 7.18 | Timber and Cutting Rights Agreements | 67 |
Section 7.19 | Post-Closing Matters | 68 |
ARTICLE VIII. NEGATIVE COVENANTS | 68 | |
Section 8.1 | Indebtedness | 68 |
Section 8.2 | Liens | 70 |
Section 8.3 | Investments | 72 |
Section 8.4 | Fundamental Changes | 73 |
Section 8.5 | Asset Dispositions | 74 |
Section 8.6 | Restricted Payments | 76 |
Section 8.7 | Transactions with Affiliates | 76 |
Section 8.8 | Accounting Changes; Organizational Documents | 77 |
Section 8.9 | Payments and Modifications of Subordinated Indebtedness | 77 |
Section 8.10 | No Further Negative Pledges; Restrictive Agreements | 77 |
Section 8.11 | Nature of Business | 79 |
Section 8.12 | Sale Leasebacks | 79 |
Section 8.13 | Financial Covenants | 79 |
Section 8.14 | Disposal of Subsidiary Interests | 79 |
ARTICLE IX. DEFAULT AND REMEDIES | 79 | |
Section 9.1 | Events of Default | 79 |
Section 9.2 | Remedies | 81 |
Section 9.3 | Rights and Remedies Cumulative; Non-Waiver; etc | 82 |
Section 9.4 | Crediting of Payments and Proceeds | 82 |
Section 9.5 | Administrative Agent May File Proofs of Claim | 83 |
Section 9.6 | Credit Bidding | 84 |
Section 9.7 | Lender Action | 84 |
Section 9.8 | Intercreditor Agreement | 84 |
ARTICLE X. THE ADMINISTRATIVE AGENT | 84 | |
Section 10.1 | Appointment and Authority | 84 |
Section 10.2 | Rights as a Lender | 85 |
Section 10.3 | Exculpatory Provisions | 85 |
Section 10.4 | Reliance by the Administrative Agent | 86 |
Section 10.5 | Delegation of Duties | 86 |
Section 10.6 | Resignation of Administrative Agent | 87 |
Section 10.7 | Non-Reliance on Administrative Agent and Other Lenders | 88 |
Section 10.8 | No Other Duties, Etc | 88 |
Section 10.9 | Collateral and Guaranty Matters | 88 |
Section 10.10 | Secured Hedge Agreements and Secured Cash Management Agreements | 89 |
ARTICLE XI. MISCELLANEOUS | 89 | |
Section 11.1 | Notices | 89 |
Section 11.2 | Amendments, Waivers and Consents | 92 |
Section 11.3 | Expenses; Indemnity | 93 |
Section 11.4 | Right of Setoff | 95 |
Section 11.5 | Governing Law; Jurisdiction, Etc | 96 |
Section 11.6 | Waiver of Jury Trial | 96 |
Section 11.7 | Reversal of Payments | 97 |
Section 11.8 | Successors and Assigns; Participations | 97 |
Section 11.9 | Treatment of Certain Information; Confidentiality | 102 |
Section 11.10 | Performance of Duties | 103 |
Section 11.11 | All Powers Coupled with Interest | 103 |
Section 11.12 | Survival | 103 |
Section 11.13 | Titles and Captions | 103 |
Section 11.14 | Severability of Provisions | 103 |
Section 11.15 | Counterparts; Integration; Effectiveness; Electronic Execution | 103 |
Section 11.16 | Term of Agreement | 104 |
Section 11.17 | USA PATRIOT Act | 104 |
Section 11.18 | Independent Effect of Covenants | 104 |
Section 11.19 | No Advisory or Fiduciary Responsibility | 104 |
Section 11.20 | Inconsistencies with Other Documents | 105 |
Section 11.21 | Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 105 |
EXHIBITS | ||
Exhibit A | - | Form of Revolving Credit Note |
Exhibit B | - | Form of Notice of Borrowing |
Exhibit C | - | Form of Notice of Account Designation |
Exhibit D | - | Form of Notice of Prepayment |
Exhibit E | - | Form of Notice of Conversion/Continuation |
Exhibit F | - | Form of Officer’s Compliance Certificate |
Exhibit G | - | Form of Assignment and Assumption |
Exhibit H-1 | - | Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Lenders) |
Exhibit H-2 | - | Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Participants) |
Exhibit H-3 | - | Form of U.S. Tax Compliance Certificate (Foreign Participant Partnerships) |
Exhibit H-4 | - | Form of U.S. Tax Compliance Certificate (Foreign Lender Partnerships) |
SCHEDULES | ||
Schedule 1.1(a) | - | Fixed Rate Schedule |
Schedule 1.1(b) | - | Commitments and Commitment Percentages |
Schedule 6.1 | - | Jurisdictions of Organization |
Schedule 6.2 | - | Subsidiaries and Capitalization |
Schedule 6.9 | - | ERISA Plans |
Schedule 6.12 | - | Labor and Collective Bargaining Agreements |
Schedule 6.17 | - | Litigation |
Schedule 7.19 | - | Post-Closing Matters |
Schedule 8.1 | - | Existing Indebtedness |
Schedule 8.2 | - | Existing Liens |
Schedule 8.3 | - | Existing Loans, Advances and Investments |
Schedule 8.7 | - | Transactions with Affiliates |
Schedule 11.8(d) | - | Voting Participant Schedule |
Pricing Level | Consolidated Total Leverage Ratio | Commitment Fee | LIBOR + | Base Rate + | Fixed Rate + |
I | Less than 2.00 to 1.00 | 0.20% | 1.50% | 0.50% | 1.50% |
II | Greater than or equal to 2.00 to 1.00, but less than 3.00 to 1.00 | 0.25% | 1.75% | 0.75% | 1.75% |
III | Greater than or equal to 3.00 to 1.00, but less than 4.00 to 1.00 | 0.30% | 2.00% | 1.00% | 2.00% |
IV | Greater than or equal to 4.00 to 1.00, but less than 4.50 to 1.00 | 0.35% | 2.75% | 1.75% | 2.75% |
V | Greater than or equal to 4.50 to 1.00 | 0.40% | 3.50% | 2.50% | 3.50% |
LIBOR Rate = | LIBOR |
1.00-Eurodollar Reserve Percentage |
Fiscal Quarters Ending: | Ratio: |
Prior to and including December 31, 2019 | 2.00:1.00 |
March 31, 2020 and thereafter | 1.50:1.00 |
Entity | Jurisdiction of Incorporation or formation | Name Under Which Entity Conducts Business | ||
Cellu Tissue Holdings, Inc. | Delaware | Clearwater Paper Group | ||
Cellu Tissue Corporation – Neenah | Delaware | Clearwater Paper – Neenah | ||
Clearwater Fiber, LLC | Delaware | None | ||
Manchester Industries Inc. of Virginia | Virginia | None | ||
1. | I have reviewed this report on Form 10-K 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: March 18, 2019 | /s/ LINDA K. MASSMAN | |||
Linda K. Massman | ||||
President and Chief Executive Officer |
1. | I have reviewed this report on Form 10-K 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: March 18, 2019 | /s/ JOHN D. HERTZ | |||
John D. Hertz | ||||
Senior Vice President, Finance and Chief Financial Officer |
(1) | the Annual Report of the Company on Form 10-K for the period ended December 31, 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 |
March 18, 2019 |
(1) | the Annual Report of the Company on Form 10-K for the period ended December 31, 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 |
March 18, 2019 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 11, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | Q4 | ||
Trading Symbol | CLW | ||
Entity Registrant Name | CLEARWATER PAPER CORP | ||
Entity Central Index Key | 0001441236 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,515,156 | ||
Entity Public Float | $ 373,866,154 |
Condensed Consolidated Statements of Operations - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Income Statement [Abstract] | |||||||||||
Net sales | $ 428,707,000 | $ 426,460,000 | $ 432,099,000 | $ 436,952,000 | $ 436,716,000 | $ 426,504,000 | $ 429,663,000 | $ 437,525,000 | $ 1,724,218,000 | $ 1,730,408,000 | $ 1,734,763,000 |
Costs and expenses: | |||||||||||
Cost of sales | (382,204,000) | (376,221,000) | (387,154,000) | (392,433,000) | (375,458,000) | (386,762,000) | (381,061,000) | (387,060,000) | (1,538,012,000) | (1,530,341,000) | (1,493,559,000) |
Selling, general and administrative expenses | (27,161,000) | (26,283,000) | (26,564,000) | (32,980,000) | (34,891,000) | (34,582,000) | (29,454,000) | (29,955,000) | (112,988,000) | (128,882,000) | (128,195,000) |
Gain on divested assets, net | 1,008,000 | 22,944,000 | 0 | 0 | 0 | 0 | 0 | 0 | 23,952,000 | 0 | 1,755,000 |
Impairment of assets | (195,079,000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total operating costs and expenses | (603,436,000) | (379,560,000) | (413,718,000) | (425,413,000) | (410,349,000) | (421,344,000) | (410,515,000) | (417,015,000) | (1,822,127,000) | (1,659,223,000) | (1,619,999,000) |
(Loss) income from operations | (174,729,000) | 46,900,000 | 18,381,000 | 11,539,000 | 26,367,000 | 5,160,000 | 19,148,000 | 20,510,000 | (97,909,000) | 71,185,000 | 114,764,000 |
Interest expense, net | (30,620,000) | (31,374,000) | (30,651,000) | ||||||||
Non-operating pension and other post employment benefit (costs) income | (3,447,000) | ||||||||||
Earnings before income taxes | (133,462,000) | 40,954,000 | 80,666,000 | ||||||||
Income tax (provision) benefit | (10,305,000) | 56,385,000 | (31,112,000) | ||||||||
Net (loss) earnings | $ (187,772,000) | $ 34,444,000 | $ 6,961,000 | $ 2,600,000 | $ 80,924,000 | $ 863,000 | $ 8,037,000 | $ 7,515,000 | $ (143,767,000) | $ 97,339,000 | $ 49,554,000 |
Net earnings per common share: | |||||||||||
Basic (in dollars per share) | $ (11.39) | $ 2.09 | $ 0.42 | $ 0.16 | $ 4.92 | $ 0.05 | $ 0.49 | $ 0.46 | $ (8.72) | $ 5.91 | $ 2.91 |
Diluted (in dollars per share) | $ (11.39) | $ 2.08 | $ 0.42 | $ 0.16 | $ 4.88 | $ 0.05 | $ 0.48 | $ 0.45 | $ (8.72) | $ 5.88 | $ 2.90 |
Goodwill, Impairment Loss | $ (195,079,000) | $ 0 | $ 0 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ 2,116 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 10,513 | 7,770 | 3,795 |
Net earnings | (143,767) | 97,339 | 49,554 |
Defined benefit pension and other postretirement employee benefits: | |||
Net (loss) gain arising during the period, net of tax of $(5,717), $2,409, and $248 | (16,036) | 6,745 | 379 |
Amortization of actuarial loss included in net periodic cost, net of tax of $2,397, $1,305, and $1,576 | 6,759 | 1,951 | 2,321 |
Amortization of prior service credit included in net periodic cost, net of tax of $(440), $(601), and $(669) | 1,236 | 926 | 1,021 |
Other comprehensive (loss) income, net of tax | (10,513) | 7,770 | 3,795 |
Comprehensive income | $ (154,280) | $ 105,109 | $ 53,349 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net (loss) gain arising during the period, tax benefit (provision) | $ 5,717 | $ (2,409) | $ (248) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax | 0 | 0 | 1,366 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Tax | 0 | 0 | 0 |
Amortization of actuarial loss included in net periodic cost, tax expense | (2,397) | (1,305) | (1,576) |
Amortization of prior service credit included in net periodic cost, tax benefit | $ (440) | $ (601) | $ (669) |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001000000 | $ 0.0001000000 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001000000 | $ 0.0001000000 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,482,345.000000 | 16,447,898.000000 |
Treasury stock, shares (in shares) | 0 | 0 |
Consolidated Statements of Stockholders' Equity Consolidate Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Loss | |||
Pension and OPEB, Tax | $ 3,760 | $ 3,113 | $ 2,521 |
Nature of Operations and Basis of Presentation |
12 Months Ended |
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Dec. 31, 2018 | |
Disclosure Nature Of Operations And Basis Of Presentation Additional Information [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation 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. Unless the context otherwise requires or unless otherwise indicated, references in this report to “Clearwater Paper Corporation,” “we,” “our,” “the Company” and “us” refer to Clearwater Paper Corporation and its subsidiaries. On December 16, 2016, we acquired Manchester Industries, or Manchester, an independently-owned paperboard sales, sheeting and distribution supplier to the packaging and commercial print industries, for total consideration of $71.7 million. The acquisition of Manchester's customers extends our reach and service platform to small and mid-sized folding carton plants, offering a range of converting services that include custom sheeting, slitting and cutting. Manchester's operations subsequent to the acquisition date are reflected in our financial statements. On March 31, 2017, we closed our Oklahoma City, Oklahoma converting facility. Notwithstanding the closure, we remain subject to the terms of a long-term master lease applicable to the facility. In October 2017, we transferred to a third party substantially all of the remaining fixed assets and supplies inventory located at this facility and subleased the facility to the third party for the remaining term of the master lease for the facility. In connection with the transfer of fixed assets, we recorded a loss of $4.3 million in the third quarter of 2017 related primarily to the write-down of the transferred assets to their held-for-sale value, and a loss of $3.2 million in the fourth quarter of 2017 related to the execution of the sublease agreement, which is included in “Selling, general and administrative expenses” in our Consolidated Statement of Operations. The sublease agreement is expected to substantially reduce our cash requirements under the master lease over the term of the sublease. In addition to the above amounts, we incurred $7.2 million of closure-related costs associated with the Oklahoma City facility for the twelve months ended December 31, 2017, which is largely included in "Cost of sales" in our Consolidated Statement of Operations. On August 21, 2018, we sold our Ladysmith, Wisconsin manufacturing facility for net proceeds of approximately $71 million and recorded a related gain on divested assets of $24.0 million in 2018 associated with this sale. See Note 4, "Asset Divestiture" for further discussion. These consolidated financial statements include the financial condition and results of operations of Clearwater Paper Corporation and its wholly-owned subsidiaries. All intercompany transactions and balances between operations within the company have been eliminated. |
Summary of Significant Accouting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies SIGNIFICANT ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., which we refer to in this report as 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 period. Significant areas requiring the use of estimates and measurement of uncertainty include determination of valuation for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, allocation of purchase price and fair value estimates for business combinations, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. CASH, CASH EQUIVALENTS AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the balance sheet that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows.
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including assets acquired under capital lease obligations and any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Estimated useful lives generally range from 10 to 40 years for land improvements; 10 to 40 years for buildings and improvements; 5 to 25 years for machinery and equipment; and 2 to 15 years for office and other equipment. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. We review the carrying value of our property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. An impairment of property, plant and equipment exists when the carrying value is not considered to be recoverable through future undiscounted cash flows from operations and the carrying value of the assets exceeds the estimated fair value. On August 21, 2018, we simultaneously announced and completed the sale of our Ladysmith, Wisconsin tissue manufacturing facility (the “Ladysmith Facility”) for net proceeds of approximately $71 million. This sale included $26.8 million of net property, plant and equipment. On March 31, 2017, we closed our Oklahoma City converting facility. For the twelve months ended December 31, 2017, we incurred $14.7 million of costs associated with this announced closure, which includes $3.7 million in accelerated depreciation on certain fixed assets. For the twelve months ended December 31, 2016, we incurred $1.7 million of costs associated with this announced closure, which includes $1.3 million in accelerated depreciation on certain fixed assets. INTANGIBLE ASSETS We use estimates in determining and assigning the fair value of the useful lives of intangible assets, the amount and timing of related future cash flows and fair values of the related operations. Our intangible assets have definite lives and are amortized over their estimated useful lives. We assess our intangible assets for impairment annually and when events or changes in circumstances indicate that the carrying amount may not be recoverable. GOODWILL Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. We use estimates in determining and assigning the fair value of goodwill, including the amount and timing of related future cash flows and fair values of the related operations. Goodwill is not amortized but is tested for impairment annually as of November 1, as well as any time when events suggest impairment may have occurred. In the event the carrying value of the reporting unit in which our goodwill is assigned exceeds the estimated fair value of that reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit exceeds its implied fair value. We recorded $229.5 million of goodwill in connection with our acquisition of Cellu Tissue in December 2010. All of the recorded goodwill was assigned to our Consumer Products segment and reporting unit. As a result of the December 2014 sale of our Consumer Products segment's specialty business and mills, a portion of goodwill was allocated to the divested mills and included in our loss on divested assets. As the result of the August 2018 sale of the Ladysmith, Wisconsin manufacturing facility, a portion of goodwill was allocated to the sale of this business, resulting in a write-off of $14.0 million of goodwill. We recorded $35.1 million of goodwill in connection with our acquisition of Manchester. The goodwill from this acquisition is included in our Pulp and Paperboard segment. We concluded that the estimated fair value of the Consumer Products reporting unit was less than its carrying value, resulting in a non-cash impairment charge of $195.1 million, which represented the remaining goodwill from our Consumer Products reporting unit. See Note 7, "Goodwill and Intangible Assets" for further discussion. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Three critical assumptions are the discount rate applied to pension plan obligations, the rate of return on plan assets and mortality rates. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, significant assumptions in determining OPEB income are the discount rate applied to benefit obligations, and mortality rates. We also participate in multiemployer defined benefit pension plans. We make contributions to these multiemployer plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees. The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management's expectations. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes historical long-term returns for various investment categories, as measured by appropriate indices. These indices are weighted based upon the extent to which plan assets are invested in the particular categories in arriving at our determination of a composite expected return. An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets. The estimated net loss and prior service cost (credit) for the defined benefit pension and OPEB plans is amortized from accumulated other comprehensive loss into net periodic cost (benefit) in accordance with current accounting guidance. Net periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2018 and 2017, long-term assets are recorded for overfunded single-employer plans and liabilities are recorded for underfunded single-employer plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded single-employer plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability. INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate. REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally 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, which represents the majority of our shipping terms, 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 December 31, 2018 and 2017, we had allowances for doubtful accounts of $1.5 million and $1.4 million, respectively. Bad debt expense, net, charged to selling, general and administrative expenses during 2018, 2017 and 2016 was $0.4 million, $0.2 million, and $0.7 million, respectively. All other activity impacting the allowance for doubtful accounts was immaterial for all periods. We had one customer in the Consumer Products segment, the Kroger Company, that accounted for approximately 11.1% of our total company net sales in 2018, approximately 15.3% of our total company net sales in 2017, and approximately 13.4% of our total company net sales in 2016. Refer to Note 19, "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 second, third and fourth quarters of 2018, $22.0 million, $23.4 million, and $23.4 million of receivables were sold under the Account Purchase Agreement, respectively. As of December 31, 2018, $14.5 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Consolidated Statements of Cash Flows. For the year ended December 31, 2018, we recorded factoring expense on sales of receivables of $0.2 million, which 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 servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. SUPPLY-CHAIN FINANCING The Company has entered into supply-chain financing programs with financial intermediaries, which provide certain of our vendors the option to be paid by the financial intermediaries on our trade payables earlier than the due date on the applicable invoice. When a vendor receives an early payment on a trade payable it invoiced us for from a financial intermediary, we pay that financial intermediary the face amount of the invoice on the regularly scheduled due date. If we reimburse these vendors for certain fees they may incur in connection with receiving an early payment on an invoice, the amount of such invoice that would have otherwise been included in our trade payables is included in our short term debt. As of December 31, 2018, and December 31, 2017, $20.8 million and $0 million, respectively, was included in “Short-term debt” on our Consolidated Balance Sheets related to invoices for which we had reimbursed our vendors’ fees. ENVIRONMENTAL As part of our corporate policy, we have an ongoing process to monitor, report on and comply with environmental requirements. Based on this ongoing process, accruals for environmental liabilities that are not within the scope of specific authoritative guidance related to accounting for asset retirement obligations or conditional asset retirement obligations are established in accordance with guidance related to accounting for contingencies. We estimate our environmental liabilities based on various assumptions and judgments, the specific nature of which varies in light of the particular facts and circumstances surrounding each environmental liability. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude and timing of required investigation, remediation and monitoring activities and the probable cost of these activities. Currently, we are not aware of any material environmental liabilities and have accrued only for specific costs related to environmental matters that we have determined are probable and for which an amount can be reasonably estimated. Fees for professional services associated with environmental and legal issues are expensed as incurred. 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 the repurchase program, of which 84,750 shares were repurchased during 2017 at an average price of $57.53 per share. We did not repurchase shares during 2018. As of December 31, 2018, we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. During 2017, we retired 7,821,005 treasury shares. The impact of this retirement was reflected within the stockholders' equity line items on our Consolidated Balance Sheet. DERIVATIVES We had no activity during the years ended December 31, 2018, 2017 and 2016 that required hedge or derivative accounting treatment. However, to partially 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 December 31, 2018, these contracts covered approximately 14% of the expected average monthly requirements for 2019, including approximately 12% of the expected average monthly requirements for the first quarter. For the years ended December 31, 2018, 2017 and 2016, approximately 29%, 28%, and 45%, respectively, of our natural gas volumes were supplied through firm price contracts. These contracts qualify for treatment as “normal purchases or normal sales” under authoritative guidance and thus require no mark-to-market adjustment. |
Recently Adopted and New Accounting Standards |
12 Months Ended |
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Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and Prospective 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 13, "Savings, 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 November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires entities to show the changes in cash, cash equivalents, and restricted cash in the statement of cash flows. In addition, transfers between cash, cash equivalents, and restricted cash are no longer reported as cash flow activities in the statement of cash flows. The ASU was effective for public business entities for fiscal years beginning after December 15, 2017, and we adopted this standard in 2018. As a result of adopting this standard, "Net cash flows from operating activities" and "Increase (decrease) in cash, cash equivalents, and restricted cash" line items on our Consolidated Statements of Cash Flows increased $1.5 million and $1.0 million for the years ended December 31, 2018 and 2017, respectively. There was no impact to our Consolidated Statements of Cash Flows for the year ended December 31, 2016. 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 2, "Summary of Significant Accounting Policies," for information about the basis of revenue recognition, and Note 19, "Segment Information," for further information including the disaggregation of revenue by segment, primary geographical market, and major product type. New Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. Amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. We are currently assessing the timing of our adoption of this ASU and do not believe it will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), which modifies the disclosure requirements for defined benefit and other postretirement plans. This ASU eliminates certain disclosures associated with accumulated other comprehensive income, plan assets, related parties, and the effects of interest rate basis point changes on assumed health care costs, with other disclosures being added to address significant gains and losses related to changes in benefit obligations. This ASU also clarifies disclosure requirements for projected benefit and accumulated benefit obligations. The amendments in this ASU are effective for fiscal years ending after December 15, 2020, with early adoption permitted and adoption on a retrospective basis for all periods presented required. We are currently assessing the timing of our adoption of this ASU and do not believe it will have a material impact on our consolidated financial statements beyond updating footnote disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, which requires substantially all leases be recognized on the balance sheet as a right-of-use (ROU) asset and a corresponding lease liability. Leases will be classified as operating or finance. The new guidance requires additional disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We adopted this standard on January 1, 2019 using the modified retrospective transition approach at the January 1, 2019 effective date. Consequently, financial information in prior periods was not restated. We elected the ‘package of practical expedients’ which permits us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs. We did not elect the use of hindsight. As an accounting policy election, we will exclude short-term leases (term of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components as a single lease component for most asset classes. We are finalizing the evaluation of the January 1, 2019 impact and estimate a material increase of lease-related assets and liabilities ranging from approximately $80 million to $90 million in the Consolidated Balance Sheets. The impact to our Consolidated Statements of Operations and Cash Flows is not expected to be material. We reviewed all other new accounting pronouncements issued in the period and concluded that they are not applicable to our business. |
Business Combinations (Notes) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset divestiture [Text Block] | 4 Asset Divestiture On August 21, 2018, we simultaneously announced and completed the sale of our Ladysmith Facility for net cash proceeds of approximately $71 million. We assessed the sale of this location under the relevant authoritative accounting guidance related to discontinued operations reporting and concluded that this divestiture of assets does not qualify for discontinued operations reporting as the Ladysmith Facility does not represent either a strategic shift in the Consumer Products segment, nor does it represent a major impact on our operations and financial results. In total, $24.0 million was recorded as "Gain on divested assets" and included as a component of operating income within our Consolidated Statement of Operations for the year ended December 31, 2018, as well as a component of our Consumer Products segment's operating income as disclosed in Note 19, “Segment Information.” Among other offsets, the net gain on divested assets included a $14.0 million write-off of goodwill. Consistent with authoritative guidance, the goodwill was allocated to our divested assets by estimating the fair value of the Ladysmith Facility compared to the estimated fair value of the Consumer Products reporting unit, which was then used to estimate the percentage of goodwill to allocate to the sale of this business. In addition, "Gain on divested assets" within our Consolidated Statement of Operations included a $0.9 million intangible asset write-off related to certain identifiable customer relationship intangibles associated with the divested mill. Both the goodwill and intangible asset charges are discussed further in Note 7, “Goodwill and Intangible Assets." In total, $34.0 million of book value of assets were sold, consisting primarily of $26.8 million of property, plant and equipment and $3.4 million of inventory. As a result of this sale, we recorded working capital and indemnity contingencies of $1.1 million and $1.4 million, respectively, in the third quarter of 2018. In the fourth quarter of 2018, the working capital contingency was settled, and we received $1.2 million as a result of the settlement, which is included in the "Gain on divested assets" amount discussed above. As of December 31, 2018, $1.4 million of restricted cash associated with the indemnity contingency is included in "Other assets, net" on our December 31, 2018 Consolidated Balance Sheet. |
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Business Combination Disclosure [Text Block] | Business Combinations On December 16, 2016, we acquired Manchester Industries for total consideration of $71.7 million. The purchase price included a $67.5 million cash payment, after adjusting for a working capital closing adjustment of $0.7 million, as well as $4.2 million in net liabilities effectively settled. The acquisition was financed with existing cash and proceeds from our revolving credit facilities. The acquisition resulted in the recognition of $35.1 million of goodwill, which is not deductible for tax purposes. Manchester's operations are included in our Pulp and Paperboard segment. Goodwill recorded in the acquisition of Manchester was based on the purchase price allocation. We allocated the purchase price to the net assets of Manchester Industries acquired in the acquisition based on our estimates of the fair value of assets and liabilities as follows:
We estimated the fair value of the assets and liabilities of Manchester utilizing information available at the time of acquisition. We considered outside third-party appraisals of the tangible and intangible assets to determine the applicable fair market values. In the fourth quarter of 2017, we completed the collection of information necessary to complete our determination of the fair values included in the purchase price in association with the final tax basis of acquired intangible assets and fixed assets used in the determination of deferred tax liabilities at the acquisition date. As a result, the deferred tax liabilities and goodwill associated with this acquisition were reduced by $0.1 million. All costs associated with advisory, legal and other due diligence-related services performed in connection with acquisition-related activity are expensed as incurred. These costs were $0.2 million and $2.7 million for 2017 and 2016, respectively, and were recorded as selling, general and administrative expenses on our Consolidated Statements of Operations. No supplemental pro-forma information is presented for the acquisition due to the immaterial pro-forma effect of the acquisition on our results of operations for 2016. |
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Inventories | Inventories
At December 31, 2018, our inventories are stated at the lower of net realizable value or current average cost using the average cost method. |
Property, Plant and Equipment |
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Property, Plant and Equipment | Property, Plant and Equipment
The December 31, 2018 and 2017 buildings and improvements and machinery and equipment combined balances include $26.1 million and $24.4 million, respectively, associated with capital leases. Depreciation expense, including amounts associated with capital leases, totaled $94.4 million, $97.0 million and $86.1 million in 2018, 2017 and 2016, respectively. Depreciation expense for the twelve months ended December 31, 2017 includes accelerated depreciation of $3.7 million associated with the Oklahoma City facility closure. For 2018, 2017, and 2016, we capitalized $9.0 million, $4.6 million and $2.3 million, respectively, of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and the continuous pulp digester at our Lewiston, Idaho pulp and paperboard mill. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets As of December 31, 2018 and December 31, 2017, we had $35.1 million and $244.2 million, respectively, of goodwill included on our Consolidated Balance Sheets. Goodwill is not amortized but tested for impairment annually as of each November 1st and at any time when events suggest impairment may have occurred, such as a significant adverse change in the business climate or a sustained drop in the company’s market capitalization. If the carrying amount of a reporting unit exceeds the estimated fair value of that reporting unit, a goodwill impairment loss is recognized equal to the excess of the reporting unit’s carrying amount of over its estimated fair value. In late April 2018, we experienced a significant decrease in our market capitalization after announcing lower first quarter financial results and a reduced second quarter sales outlook for our Consumer Products reporting unit. We identified this as a triggering event and tested the goodwill allocated to this reporting unit for impairment as of May 31, 2018. To determine the fair value of the Consumer Products reporting unit, we used a discounted cash flow methodology utilizing our most recent financial projections that take into account a variety of factors including industry and market conditions. Compared to the previous projections utilized during the November 1, 2017 impairment test, our estimates as of May 31, 2018 did not show significant adverse changes to the reporting unit’s projected operating results for future periods. As a result, we determined that the fair value of the reporting unit exceeded its carrying value as of that testing date. In August 2018, we sold our Ladysmith, Wisconsin tissue manufacturing facility for net cash proceeds of approximately $71 million. In connection with the sale, we recorded a $14.0 million write-off of goodwill of the Consumer Products reporting unit. Consistent with authoritative guidance, the goodwill was allocated to our divested assets by estimating the fair value of the Ladysmith facility compared to the estimated fair value of the Consumer Products reporting unit, which was then used to estimate the amount of goodwill to allocate to the sold business. We conducted our annual impairment test as of the November 1, 2018 measurement date and concluded, in connection with the preparation of our 2018 financial statements, that the estimated fair value of the Consumer Products reporting unit was below the carrying value of the reporting unit, resulting in a non-cash impairment charge of $195.1 million. This amount represents the remaining goodwill associated with our Consumer Products reporting unit that was originally recorded as the result of our acquisition of Cellu Tissue Holdings, Inc. in 2010. To determine the fair value of the Consumer Products reporting unit, we used the same discounted cash flow methodology utilized in the May 2018 and November 2017 goodwill impairment tests. Our most recent estimates for 2019 and future years were based on market data obtained in the fall of 2018 indicating that in 2019 and future years, we expect lower pricing for certain tissue products, lower converted case sales volumes, a higher mix of parent roll sales, and increased transportation and pulp costs compared to the financial projections used in May 2018. In light of the weakened market outlook, our forecast yielded a fair value less than the carrying value of the Consumer Products reporting unit, resulting in the impairment of goodwill. We also performed an overall reconciliation to corroborate the estimated fair value from the income approach to our overall market capitalization as of the November 1, 2018 measurement date. As of the November 1, 2018 measurement date, the fair value of our Pulp and Paperboard reporting unit was clearly in excess of its carrying value, so no goodwill associated with this reporting unit has been written down. In prior years, we performed our annual goodwill impairment tests at November 1, 2017 and 2016 and determined that the estimated fair value of the Consumer Products and Pulp and Paperboard reporting units exceeded their respective carrying amounts. As a result, no impairment charges were recorded during 2017 and 2016. Changes in the carrying value of goodwill are as follows:
Intangible asset amounts represent the acquisition date fair values of identifiable intangible assets acquired. The fair values of the intangible assets were determined by using the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflected a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. Definite-lived intangible assets are amortized over their useful lives, which have historically ranged from 5 to 10 years. Authoritative guidance under ASC 360, Property, Plant and Equipment, requires that the carrying amount of a long-lived asset with a definite life that is held-for-use be evaluated for recoverability whenever events or changes in circumstances indicate that the entity may be unable to recover the asset’s carrying amount. We assessed our definite-lived intangible assets for impairment in 2018 and 2017 and concluded that their carrying amounts were recoverable and that no further testing was necessary. We do not have any indefinite-lived intangible assets recorded from acquisitions. Intangible assets at the balance sheet dates are comprised of the following:
As of December 31, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands):
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Income Taxes | Income Taxes (Loss) earnings before income taxes is comprised of the following amounts:
The income tax provision (benefit) is comprised of the following:
The income tax provision or benefit differs from the amount computed by applying the statutory federal income tax rate of 21.0% in 2018 and 35.0% in 2017 and 2016 to earnings before income taxes due to the following:
During 2018, the valuation allowance for deferred tax assets remained comparable to the prior year. In 2017, the valuation allowance for deferred tax assets decreased by $0.7 million compared to 2016. In March 2016 the FASB issued ASU 2016-09, Improvements to Employee Share Based Payment Accounting. We adopted the standard during the first quarter of 2017. The standard requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit discretely in the reporting period in which they occur. During 2018 and 2017, we recognized tax expense of $0.7 million and $2.2 million, respectively, for stock based compensation. We use the flow-through method to account for investment tax credits earned on eligible expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned. During 2018 and 2017, we recognized a benefit of $10.0 million and $2.4 million, respectively, related to energy investment tax credits. The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:
Net deferred tax assets (liabilities) consist of:
Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. On December 22, 2017, the United States government enacted the Tax Cuts and Jobs Act which significantly impacted our financial statements. For the year ended December 31, 2017, we recorded a tax benefit for the impact of the Act of approximately $70 million which represents the remeasurement of our net deferred tax liabilities. We have net investment tax credits associated with state jurisdictions totaling $8.9 million, which expire between 2019 and 2037. The following presents a roll forward of our unrecognized tax benefits and associated interest and penalties, $2.8 million of which is included in the "Accrued taxes" line item in non-current liabilities in our Consolidated Balance Sheets. The remaining $0.6 million consists of certain tax attributes that are uncertain.
Unrecognized tax benefits net of related deferred tax assets at December 31, 2018, if recognized, would favorably impact our effective tax rate by decreasing our tax provision by $2.8 million. For each of the years ended December 31, 2017 and 2016, if recognized, the balance of unrecognized tax benefits would favorably impact our effective tax rate by $3.6 million and $4.1 million, respectively. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For each of the years ended December 31, 2018, 2017, and 2016, we accrued interest of less than $0.1 million each year in our income tax provision. We recorded no penalties in the years ended December 31, 2018, 2017, and 2016. The company has certain state benefits related to filing positions taken which have not been recognized on the balance sheet. Although the uncertain tax position was not reflected in the balance sheet as a recorded liability, it is disclosed in the tabular roll forward for unrecognized tax benefits. We have operations in many states within the U.S. and are subject, at times, to tax audits in these jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2015. We expect that the outcome of any examination will not have a material effect on our consolidated financial statements. Although the timing of resolution of audits is not certain, we evaluate all audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimate that it is reasonably possible the total gross unrecognized tax benefits could decrease by approximately $0.7 million within the next 12 months. |
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Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities
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Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt $300 MILLION SENIOR NOTES DUE 2025 On July 29, 2014 we issued $300 million aggregate principal amount of senior notes, which we refer to as the 2014 Notes. The 2014 Notes mature on February 1, 2025, have an interest rate of 5.375% and were issued at their face value. The issuance of these notes generated net proceeds of approximately $298 million after deducting offering expenses. The 2014 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2014 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that do not constitute an immaterial subsidiary under the indenture governing the 2014 Notes. The 2014 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2014 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facilities, which are secured by certain of our accounts receivable, inventory and cash. The terms of the 2014 Notes limit our ability and the ability of any restricted subsidiaries to incur certain liens, engage in sale and leaseback transactions and consolidate, merge with, or convey, transfer or lease substantially all of our or their assets to another person. We may, on any one or more occasions, redeem all or a part of the 2014 Notes, upon not less than 30 days nor more than 60 days' notice, at a redemption price equal to 100% of the principal amount of the 2014 Notes redeemed, plus the applicable premium as of, and accrued and unpaid interest, if any, to the date of redemption. Unless we default in the payment of the redemption price, interest will cease to accrue on the 2014 Notes or portions thereof called for redemption on the applicable redemption date. In addition, we may be required to make an offer to purchase the 2014 Notes upon the sale of certain assets and upon a change of control. $275 MILLION SENIOR NOTES DUE 2023 We issued $275 million aggregate principal amount of senior notes on January 23, 2013, which we refer to as the 2013 Notes. The 2013 Notes mature on February 1, 2023, have an interest rate of 4.5% and were issued at their face value. The issuance of these notes generated net proceeds of approximately $271 million after deducting offering expenses. The 2013 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2013 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that we do not designate as an unrestricted subsidiary under the indenture governing the 2013 Notes. The 2013 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2013 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facilities, which are secured by certain of our accounts receivable, inventory and cash. The terms of the 2013 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets. We may redeem all or a portion of the 2013 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2013 Notes upon the sale of certain assets and upon a change of control. REVOLVING CREDIT FACILITIES After giving effect to a revolving commitment increase described below, our senior secured revolving credit facilities provide in the aggregate, on a combined basis, for the extension of up to $400 million in revolving loans under: (i) a $200 million credit agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the “Commercial Credit Agreement”); and (ii) a $200 million credit agreement with Northwest Farm Credit Services, PCA, as administrative agent, and the lenders party thereto (the “Farm Credit Agreement”). These revolving credit facilities were initially entered into on October 31, 2016 and we refer to them collectively as the “Credit Agreements.” In August 2018, we entered into an agreement with a lender to the Farm Credit Agreement to provide an incremental revolving loan commitment, which increased the size of the Farm Credit Agreement from $100 million to $200 million. The revolving credit facilities provided under the Credit Agreements mature on October 31, 2021. We may separately request incremental commitments under either Credit Agreement to increase the amount of revolving loans or to provide term loans under such Credit Agreement. After obtaining the $100 million incremental revolving commitment to the Farm Credit Agreement in August 2018, the aggregate amount of incremental commitments we may request may not exceed $100 million (on a combined basis under both Credit Agreements), plus an additional amount, not to exceed $100 million (also on a combined basis under both Credit Agreements), such that our first lien leverage ratio on a pro forma basis, as defined, does not exceed 3.00 to 1.00, subject to certain customary conditions and receipt of commitments by existing or additional lenders. In addition, after giving effect to the amount of any incremental borrowing under the Farm Credit Agreement, the principal amount of all unfunded revolving loan commitments and the outstanding amount of any term loans provided under the Farm Credit Agreement (if any) cannot exceed 50% of the sum of the outstanding principal amount of the loans and unfunded commitments under the Farm Credit Agreement and the Commercial Credit Agreement on a combined basis. Revolving Loans borrowed under the Credit Agreements bear interest, at our option, at a LIBOR rate, a base rate, or, in the case of the Farm Credit Agreement, a one-, two-, three-, four-, or five-year fixed rate, plus, in each case, an applicable margin. Prior to an amendment to each Credit Agreement in November 2018, the per annum margin applicable to LIBOR rate loans could range from 1.25% to 2.00% under the Commercial Credit Agreement, and from 1.50% to 2.25% under the Farm Credit Agreement, in each case, depending on changes to our consolidated leverage ratio. Following the amendment in November 2018, the per annum margin applicable to LIBOR rate loans can now range from 1.25% to 2.50% under the Commercial Credit Agreement, and from 1.50% to 3.50% under the Farm Credit Agreement. The margin applicable to fixed rate loans under the Farm Credit Agreement is the same as the margin applicable to LIBOR rate loans under the Farm Credit Agreement. The margin applicable to base rate loans under both Credit Agreements is always 1.00% per annum less than the corresponding margin for LIBOR rate loans. We also pay commitment fees on the unused portion of the revolving loan commitments under the Credit Agreements, which range from 0.20% per annum to 0.40% per annum, depending on changes to our consolidated leverage ratio. Prior to the November 2018 amendment, this commitment fee could not exceed 0.35% per annum. The Credit Agreements are secured by substantially all of the personal property of the Company and its domestic subsidiaries through separate liens granted under each Credit Agreement for the benefit of each secured party thereunder on an equal and ratable basis. The Company’s obligations under the Credit Agreements are guaranteed by the Company’s domestic subsidiaries. The Credit Agreements contain various loan covenants that restrict the ability of the Company and its subsidiaries to take certain actions, including, incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock, making certain investments, entering into certain transactions with affiliates or changing the nature of their business. In addition, the Credit Agreements contain financial covenants that require the Company to maintain a consolidated secured leverage ratio in an amount not to exceed 2.00 to 1.00 in 2019, and 1.50 to 1.00 thereafter, a consolidated interest coverage ratio in an amount not less than 1.25 to 1.00, and a consolidated asset coverage ratio of not less than 1.00 to 1.00. Each Credit Agreement also contains customary events of default, including failure to make payments under such Credit Agreement, breach of any representation or warranty or covenant under such Credit Agreement, default under or acceleration of other indebtedness for borrowed money in excess of an agreed amount, any change in control of the Company based upon a third party acquiring more than 35% of the equity interests of the Company, bankruptcy events, invalidity of such credit agreement, the incurrence of certain liabilities, termination events or withdrawals from specified benefit plans, and unpaid or uninsured judgments in excess of an agreed amount. We are members of the Northwest Farm Credit Services, PCA system which entitles us to patronage refunds and other distributions on account of our equity interests in the Northwest Farm Credit Services, PCA, as well as our patronage with Northwest Farm Credit Services. Patronage refunds are distributions of profits from member banks in the United States Farm Credit System, like Northwest Farm Credit Services, which are cooperatives (member owned) that distribute profits to their members in the form of patronage dividends, which are accrued as earned and recorded as offsets to interest expense under the Farm Credit Agreement. As of December 31, 2018, there was an aggregate of $200.0 million of borrowings outstanding under the Credit Agreements and we were in compliance with the covenants contained in the Credit Agreements. In addition, $7.6 million of the credit facilities was being used to support outstanding standby letters of credit. The borrowings outstanding under the Credit Agreements as of December 31, 2018, consisted of a combination of short-term base and LIBOR rate loans, which are classified as current liabilities in our Consolidated Balance Sheet, and a $100.0 million three-year borrowing under the Farm Credit Agreement that is included in "Long-term debt," in our Consolidated Balance Sheet. As of December 31, 2018, we would have been permitted to draw an additional $192.4 million of revolving loans under the Credit Agreements. |
Other Long-Term Obligations |
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Disclosure Other Long Term Obligations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Obligations | Other Long-Term Obligations
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Reclassification out of Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Text Block] | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss at the balance sheet dates is comprised of the following:
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Savings, Pension and Other Postretirement Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, Pension and Other Postretirement Employee Benefit Plans | Savings, Pension and Other Postretirement Employee Benefit Plans Certain of our employees are eligible to participate in defined contribution savings and defined benefit postretirement plans. These include 401(k) savings plans, defined benefit pension plans including company-sponsored and multiemployer plans, and other postretirement employee benefit, or OPEB, plans, each of which is discussed below. 401(k) Savings Plans Substantially all of our employees are eligible to participate in 401(k) savings plans, which include a company match component. In 2018, 2017 and 2016 we made 401(k) contributions on behalf of employees of $17.2 million, $16.6 million, and $16.9 million, respectively. Company-Sponsored Defined Benefit Pension Plans A majority of our salaried employees and a portion of our hourly employees are covered by company-sponsored noncontributory defined benefit pension plans. During 2016, we announced a voluntary, limited-time opportunity for former employees who are vested participants in certain of our qualified pension plans to request early payment of their entire pension plan benefit in the form of a single lump sum payment. The amount of total payments under this program totaled approximately $10.6 million for salaried employees and $4.8 million for hourly employees and were made from the applicable plan's trust assets during the third quarter of 2016. Based on the level of payments made, settlement accounting rules applied to our salaried pension plan and resulted in a remeasurement of that plan as of August 31, 2016 and the recognition of $3.5 million in settlement expense in 2016. Company-Sponsored OPEB Plans We also provide retiree health care and life insurance plans, which cover certain salaried and hourly employees. Retiree health care benefits for Medicare eligible participants over the age of 65 are provided through Health Reimbursement Accounts, or HRA's. Benefits for retirees under the age of 65 are provided under our company-sponsored health care plans, which require retiree contributions and contain other cost-sharing features. The retiree life insurance plans are primarily noncontributory. Funded Status of Company-Sponsored Plans As required by current standards governing the accounting for defined benefit pension and other postretirement benefit plans, we recognized the funded status of our company-sponsored plans on our Consolidated Balance Sheets at December 31, 2018 and 2017. The funded status is measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement employee benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement employee benefit obligation. We use a December 31 measurement date for our benefit plans. The changes in benefit obligation, plan assets and funded status for company-sponsored benefit plans as of December 31 are as follows:
The December 31, 2018 pension funded status was affected by unfavorable asset returns, partially offset by an increase in the discount rate. The December 31, 2018 OPEB benefit obligation decreased as of December 31, 2018 due to an increase in the discount rate and the continued payment of benefits. Amounts recognized in the Consolidated Balance Sheets:
Pre-tax amounts recognized in Accumulated Other Comprehensive Loss as of December 31 consist of:
Information as of December 31 for certain pension plans included above with accumulated benefit obligations in excess of plan assets were as follows:
The primary reason for the large increase in the accumulated benefit obligation in 2018 was due to the hourly pension plan changing from an overfunded status at December 31, 2017 to an underfunded status at December 31, 2018. Pre-tax components of net periodic cost and other amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31 were as follows: Net Periodic Cost:
Other amounts recognized in Other Comprehensive Income (Loss) before tax:
The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic cost (benefit) over the next fiscal year is $7.6 million. The estimated net gain for the OPEB plans that will be amortized from accumulated other comprehensive loss into net periodic cost (benefit) over the next fiscal year is $0.9 million. During 2018, $1.2 million of net periodic pension and OPEB costs were charged to "Cost of sales," $0.8 million were charged to "Selling, general and administrative expenses," and $4.9 million of costs were charged to "Non-operating pension and other postretirement benefit (costs) income" in the accompanying Consolidated Statements of Operations, as compared to costs of $1.3 million, $0.9 million, and income of $1.1 million, respectively, during 2017 and costs of $1.1 million, $0.7 million, and $3.5 million, respectively, during 2016. Weighted average assumptions used to determine the benefit obligation as of December 31 were:
Weighted average assumptions used to determine the net periodic cost for the years ended December 31 were:
The discount rate used in the determination of pension benefit obligations and pension expense was determined based on a review of long-term high-grade bonds as well as management’s expectations. The discount rate used to calculate OPEB obligations was determined using the same methodology we used for our pension plans. The expected return on plan assets assumption is based upon an analysis of historical long-term returns for various investment categories, as measured by appropriate indices. These indices are weighted based upon the extent to which plan assets are invested in the particular categories in arriving at our determination of a composite expected return. The assumed health care cost trend rate used to calculate 2018 OPEB income was 6.90% in 2018, grading to 4.00% over approximately 70 years, for participants whose benefits are not provided through Health Reimbursement Accounts (HRAs), and 2.50% annually for participants whose benefits are provided through HRAs. The health care cost trend rate used to calculate December 31, 2018 OPEB obligations was 6.00% in 2019, grading to 4.00% over approximately 70 years, for participants whose benefits are not provided through HRAs, and 2.50% annually for participants whose benefits are provided through HRAs. This assumption has a significant effect on the amounts reported. A one percentage point change in the health care cost trend rates would have the following effects:
The investments of our defined benefit pension plans are held in a Master Trust. The assets of our OPEB plans are held within an Internal Revenue Code section 401(h) account for the payment of retiree medical benefits within the Master Trust. Current accounting rules governing fair value measurement establish a framework for measuring fair value, which provides a fair value 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 (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:
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 need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used during 2018 and 2017. Investments in common and collective trust funds are generally valued based on their respective net asset value, or NAV, (or its equivalent), as a practical expedient to estimate fair value due to the absence of a readily determinable fair value. Investments that may be fully redeemed at NAV in the near-term are disclosed in the table below as "Investments measured at net asset value" in accordance with Accounting Standards Codification 820 - Fair Value Measurements and Disclosures. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following tables set forth by level, within the fair value hierarchy, the investments at fair value for our company-sponsored pension benefit plans:
Our OPEB plan had approximately $20,000 held in cash and cash equivalents at December 31, 2018 and 2017, which were categorized as level 1. We have formal investment policy guidelines for our company-sponsored plans. These guidelines were set by our Benefits Committee, which is comprised of members of our management and has been assigned its fiduciary authority over management of the plan assets by our Board of Directors. The Committee’s duties include periodically reviewing and modifying those investment policy guidelines as necessary and ensuring that the policy is adhered to and the investment objectives are met. The investment policy includes guidelines for specific categories of equity and fixed income securities. Assets are managed by professional investment managers who are expected to achieve a reasonable rate of return over a market cycle. Long-term performance is a fundamental tenet of the policy. The general policy states that plan assets would be invested to seek the greatest return consistent with the fiduciary character of the pension funds and to allow the plans to meet the need for timely pension benefit payments. The specific investment guidelines stipulate that management is to maintain adequate liquidity for meeting expected benefit payments by reviewing, on a timely basis, contribution and benefit payment levels and appropriately revising long-term and short-term asset allocations. Management takes reasonable and prudent steps to preserve the value of pension fund assets, avoid the risk of large losses and also attempt to preserve the funded status of the plans. Major steps taken to provide this protection included:
Periodically, reviews of allocations within these ranges are made to determine what adjustments should be made based on changing economic and market conditions and specific liquidity requirements.
The investment guidelines also require that the individual investment managers are expected to achieve a reasonable rate of return over a market cycle. Emphasis is placed on long-term performance versus short-term market aberrations. Factors considered in determining reasonable rates of return include performance achieved by a diverse cross section of other investment managers, performance of commonly used benchmarks (e.g., Russell 3000 Index, MSCI World ex-U.S. Index, Barclays Capital Long Credit Index), actuarial assumptions for return on plan investments and specific performance guidelines given to individual investment managers. As of December 31, 2018, nine active investment managers managed substantially all of the pension funds, each of whom had responsibility for managing a specific portion of these assets. Plan assets were diversified among the various asset classes within the allocation ranges approved by the Benefits Committee. In 2018, we did not make any contributions to our qualified pension plans, and we currently do not anticipate making any cash contributions to those plans in 2019. We contributed $0.5 million to our non-qualified pension plan in 2018. We do not anticipate funding our OPEB plans in 2019 except to pay benefit costs as incurred during the year by plan participants. Estimated future benefit payments are as follows for the years indicated:
Multiemployer Defined Benefit Pension Plans Hourly employees at two of our manufacturing facilities participate in multiemployer defined benefit pension plans: the PACE Industry Union-Management Pension Fund, or PIUMPF, which is managed by United Steelworkers, or USW, Benefits; and the International Association of Machinist & Aerospace Workers National Pension Fund, or IAM NPF. We make contributions to these plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees, which is also managed by USW Benefits. The risks of participating in these multiemployer plans are different from single-employer plans in the following respects:
Our participation in these plans for the annual period ended December 31, 2018, is outlined in the table below. The “EIN" and "Plan Number” columns provide the Employee Identification Number, or EIN, and the three-digit plan number. The most recent Pension Protection Act, or PPA, zone status available in 2018 and 2017 is for a plan’s year-end as of December 31, 2018 and December 31, 2017, respectively. The zone status is set under the provisions of the Multiemployer Pension Plan Reform Act of 2014 and is based on information we received from the plans and is certified by each plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent but more than 65 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a Funding Improvement Plan, or FIP, or a Rehabilitation Plan, or RP, is either pending or has been implemented as required by the PPA as a measure to correct its underfunded status. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. In 2018, the contribution rates for the IAM NPF plan was $4.00 per hour. In 2018, the contribution rates for PIUMPF was $2.79 per hour. In 2015, contribution rates for PIUMPF were increased as part of the RP in lieu of the legally required surcharge, paid by the employers, to assist the fund’s financial status. We were listed in PIUMPF’s Form 5500 report as providing more than five percent of the total contributions for the years 2017and 2016. At the date of issuance of our consolidated financial statements, Form 5500 reports for these plans were not available for the 2018 plan year.
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Earnings Per Share |
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Earnings Per Share | Earnings Per Share Basic earnings (loss) 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. This method requires that the effect of potentially dilutive common stock equivalents be excluded from the calculation of diluted earnings per share for the periods in which net losses are reported because the effect is anti-dilutive. 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 Plans |
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Equity-Based Compensation Plans | Equity-Based Compensation Plans At December 31, 2018, we have two stock incentive plans in place: the Clearwater Paper Corporation Amended and Restated 2008 Stock Incentive Plan which became effective on December 16, 2008, and was amended and restated effective as of February 27, 2015, and the Clearwater Paper Corporation 2017 Stock Incentive Plan, which became effective February 28, 2017, collectively referred to as, the Stock Plans. Our Stock Plans have been approved by our stockholders, and provide for equity-based awards in the form of restricted shares, restricted stock units, or RSUs, performance shares, stock options or stock appreciation rights to selected employees, outside directors, and consultants of the company. Under our Stock Plans we are authorized to issue up to approximately 6.2 million shares, which includes approximately 0.7 million additional shares authorized in connection with our acquisition of Cellu Tissue that are available for issuance as equity-based awards only to any employees, outside directors, or consultants who were not employed on December 26, 2010 by Clearwater Paper Corporation or any of its subsidiaries. At December 31, 2018, approximately 3.1 million shares were available for future issuance under the Stock Plans. We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including RSUs, performance shares and stock options, based on estimated fair values and net of estimates of future forfeitures. The expense is classified in "Selling, general and administrative expense" in our Consolidated Statements of Operations and is recognized on a straight-line basis over the requisite service periods of each award. Based on the terms of the Clearwater Paper Corporation Amended and Restated 2008 Stock Incentive Plan, and for grants prior to 2017, employees who were retirement-eligible during the service period became fully vested in outstanding awards on the later of the date they reached retirement eligibility or at the end of the first calendar year of each respective grant. We account for this feature when determining the service period over which to recognize expense for each grant of RSUs, performance shares, and stock options. For the Clearwater Paper Corporation 2017 Stock Incentive Plan and for grants beginning in 2017, employees who are retirement-eligible during the service period become fully vested in outstanding awards on a prorated basis based on the portion of the service period for which they were employed in alignment with the terms of each respective grant type as outlined in the respective stock plan. Employees are not eligible to receive shares until the end of the applicable service period for performance shares, and the applicable vesting period for RSUs and stock options. Employee equity-based compensation expense was recognized as follows:
RESTRICTED STOCK UNITS RSUs granted under our Stock Plans are generally subject to a vesting period of one to three years, with generally the same service period. RSU awards will accrue dividend equivalents based on dividends paid, if any, during the RSU vesting period. The dividend equivalents will be converted into additional RSUs that will vest in the same manner as the underlying RSUs to which they relate. RSUs granted under our Stock Plans do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement. A summary of the status of outstanding RSU awards as of December 31, 2018, 2017, and 2016, and changes during those years, is presented below:
During 2018, 48,104 RSU shares were settled and distributed in common stock. Of these shares, 28,971 were RSU shares that were settled and distributed in the fourth quarter of 2018. After adjusting for minimum tax withholdings, a net 34,447 shares were issued during 2018. The minimum tax withholdings payment made in 2018 in connection with issued shares was $0.4 million. During 2017, 25,940 RSU shares were settled and distributed, of which 20,940 shares were settled and distributed in the fourth quarter. Another 1,775 shares were RSU shares that were settled in prior years but distribution had been deferred to preserve tax deductibility for the Company in the respective years because distribution of these shares would have resulted in certain executive compensation being above the Internal Revenue Code section 162(m) threshold for those years. After adjusting for minimum tax withholdings, a net 17,834 shares were issued during 2017. The minimum tax withholdings payment made in 2017 in connection with issued shares was $1.1 million. The fair value of each RSU share award granted during 2018 was estimated on the date of grant using the grant date market price of our common stock. The total fair value of share awards that vested during 2018 was $2.0 million. As of December 31, 2018, there was $3.5 million of total unrecognized compensation cost related to outstanding RSU awards. The cost is expected to be recognized over a weighted average period of 1.9 years. PERFORMANCE SHARES Performance share awards granted under our Stock Plans have a three-year performance period, with generally the same service period, and shares are issued after the end of the period if the employee provides the requisite service and the performance measure is met. 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 TSR performance measure is considered to represent a “market condition” under authoritative accounting guidance, and thus, the market condition is considered when determining the estimate of the fair value of the performance share awards. Both the ROIC and the free cash flow measures are considered "performance conditions" under authoritative accounting guidance and include certain targets and service periods that need to be achieved to earn the award. These targets are based on internal measures. Throughout the service period we assess the probability of achieving the performance condition, and expense is recognized based upon the probable outcome. The number of performance shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0%-200%. Performance share awards granted under our Stock Plans do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement. During the performance period, dividend equivalents accrue based on dividends paid, if any, and are converted into additional performance shares, which vest or are forfeited in the same manner as the underlying performance shares to which they relate. Generally, if an employee terminates prior to completing the requisite service period, all or a portion of their awards are forfeited and the previously recognized compensation cost is reversed. If an employee provides the requisite service through the end of the performance period, but the performance measure is not met, following authoritative guidance for awards with a market condition, previously recognized compensation cost is not reversed. A summary of the status of outstanding performance share awards as of December 31, 2018, 2017, and 2016, and changes during those years, is presented below:
On December 31, 2018, the three-year performance period for 73,243 performance shares granted in 2016 ended. The requisite market condition performance measure was not met, and as such no shares were paid or issued under those awards. On December 31, 2017, the service and performance period for 41,538 outstanding shares granted in 2015 ended. The requisite market condition performance measure was not met, and as such no shares were paid or issued under those awards. As of December 31, 2018, there was $1.8 million of unrecognized compensation cost related to outstanding performance share awards. The cost is expected to be recognized over a weighted average period of 1.6 years. STOCK OPTIONS Beginning in 2014, stock options were granted to certain employees under our Stock Plans. The stock options are generally subject to a vesting period of one to three years, with generally the same service period. Upon vesting, the holder is entitled to purchase a specified number of shares of Clearwater Paper common stock at a price per share equal to the closing market price of Clearwater Paper common stock on the date of grant. Once options have vested they are exercisable. The options are exercisable for 10 years from the date of grant. Stock options granted under our Stock Plans do not represent common stock, and therefore the holders do not have voting rights unless and until shares have been issued to the employee. The fair value of stock option awards was determined using a Black-Scholes option-pricing model. The Black-Scholes model utilizes a range of assumptions related to dividend yield, volatility, risk-free interest rate and employee exercise behavior. Expected volatility is based on Clearwater Paper's historical stock prices. The risk-free interest rate is based on constant maturity treasury rates with maturities matching the options' expected life on the grant date. The expected life, estimated in accordance with Securities and Exchange Commission Staff Accounting Bulletin 110, is the approximate mid-point between the expected vesting time and the remaining contractual life.
A summary of the status of outstanding stock option awards as of December 31, 2018, and changes during the year, is presented below:
As of December 31, 2018, there was $2.7 million of unrecognized compensation cost related to non-vested stock options. The cost is expected to be recognized over a weighted average period of 2.3 years. During 2018, 261,196 stock option awards vested with a weighted average exercise price of $41.62 and total fair value of $10.9 million. These options are outstanding at December 31, 2018 and became exercisable on January 1, 2019. The weighted average remaining contractual term of options that vested during the year is 6.3 years. DIRECTOR AWARDS In connection with joining our Board of Directors, in January 2009 our outside directors at that time were granted an award of phantom common stock units, which were credited to an account established on behalf of each director and vested ratably over a three-year period with the final vesting in January 2012. Subsequent equity awards have been granted annually in May, or on a pro-rata basis as applicable, to our outside directors in the form of phantom common stock units as part of their annual compensation, which are credited to their accounts. These awards vest ratably over a one-year period. These accounts will be credited with additional phantom common stock units equal in value to dividends paid, if any, on the same amount of common stock. Upon separation from service as a director, the vested portion of the phantom common stock units held by the director in a stock unit account are converted to cash based upon the then market price of the common stock and paid to the director. Due to its cash-settlement feature, we account for these awards as liabilities rather than equity and recognize the equity-based compensation expense or income at the end of each reporting period based on the portion of the award that is vested and the increase or decrease in the value of our common stock. We recorded director equity-based compensation benefit totaling $2.3 million and $2.8 million for the years ended December 31, 2018 and 2017, respectively, and compensation expense totaling $4.8 million for the year ended December 31, 2016. At December 31, 2018, the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" on our Consolidated Balance Sheet were $0.8 million and $1.3 million, respectively. At December 31, 2017, the liability amounts associated with director equity-based compensation in "Other long-term obligations" and "Accounts payable and accrued liabilities" on our Consolidated Balance Sheet were $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 as of our balance sheet dates are presented below:
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. |
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Commitments and Contingencies | Commitments and Contingencies LEASE COMMITMENTS Our operating leases cover manufacturing, office, warehouse and distribution space, paperboard sheeting facilities, equipment and vehicles, which expire at various dates through 2029. We have capital leases related to our North Carolina converting and manufacturing facilities as well as various office equipment. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced. As of December 31, 2018, under current operating and capital lease contracts, we had future minimum lease payments as follows:
Rent expense for operating leases was $11.0 million, $12.6 million and $14.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
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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 twelve months ended December 31, 2018, 2017, and 2016 one customer, the Kroger Company, accounted for approximately 11.1%, 15.3%, and 13.4%, respectively, of our total company net sales. Our manufacturing facilities and all other assets are located within the continental United States. We sell and ship our products to customers in many foreign countries. 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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Financial Results by Quarter |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Results by Quarter | Financial Results by Quarter (Unaudited)
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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 directly and indirectly owned, domestic subsidiaries guarantee the 2013 Notes on a 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 and non-guarantor entities, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis. We acquired Manchester Industries on December 16, 2016 and their results of operations, financial position and cash flows are included below as a guarantor entity. In the first quarter of 2018, the Company adopted a new accounting standard, ASU 2017-07, which resulted in a change in the presentation of pension and postretirement benefit (costs) income other than service costs on a line outside of “Income from operations.” The corresponding prior period amounts included in the Consolidating Statements of Operations and Comprehensive Income (Loss) have been reclassified to conform with the current period presentation. Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2016
Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018
Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Cash Flows Year Ended December 31, 2018
Clearwater Paper Corporation Consolidating Statement of Cash Flows Year Ended December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Cash Flows Year Ended December 31, 2016
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Business Interruption and Insurance Recovery (Notes) |
12 Months Ended |
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Dec. 31, 2018 | |
Business Interruption and Insurance Recovery [Abstract] | |
Business Insurance Recoveries [Text Block] | NOTE 18 Business Interruption and Insurance Recovery On October 24, 2018, our Lewiston, Idaho pulp and paperboard mill had a shaft break, causing an incorrect chemical mixture in a chip impregnation vessel that resulted in the vessel plugging and subsequently resulted in the shutdown of the chip pulping operation. We incurred significant incremental pulp replacement costs to keep the paperboard and tissue machines running at our Lewiston facility during this shutdown, as well as extra costs for overtime labor, maintenance, energy and repair and clean-up. We maintain property and business interruption insurance and filed a claim with our insurance provider to recover the incremental costs incurred as a result of the incident. All associated costs and insurance recoveries were recorded in "Cost of sales" in our Consolidated Statement of Operations and included in cash flows from operations in our Consolidated Statement of Cash Flows. The insurance claim for this event totaled $4.4 million. The claim was settled in December 2018, and, net of the policy deductible of $2.5 million, we received $1.9 million from our property insurance provider as final payment of the claim. On January 28, 2017, there was a fire at our Shelby, North Carolina facility warehouse. Although the building sustained minimal damage, the smoke and water damage to raw material and finished goods inventory was more significant. Operations were impacted during the clean-up and repair period. We filed a claim with our insurance providers to recover the cost of repairs to the equipment and estimated lost profits and inventory due to the disruption of the operations during the repair and cleanup period. Net of policy deductibles, the insurance claim for this event totaled $2.9 million, and was settled in its entirety in the first quarter of 2017. All associated costs and insurance recoveries have been recorded in "Cost of sales" in our Consolidated Statements of Operations and included in cash flows from operations in our Consolidated Statement of Cash Flows. On November 14, 2016, we experienced a fire at our Las Vegas, Nevada facility. There was minimal disruption to the converting operations at that facility, however certain paper machine equipment was damaged and we incurred approximately 17 days of paper machine downtime while repairs were being made. We were unable to produce through-air-dried parent rolls during this period at the Las Vegas facility. We were able to replace a portion of this lost production capacity by shipping parent rolls from our Shelby, North Carolina facility, in addition to making open market purchases. We filed a claim with our insurance provider to recover the cost of repairs to the equipment and estimated lost profits due to the disruption of the operations during the repair period. The insurance claim for this event, net of policy deductible, was $2.9 million, of which $1.5 million was recorded in the fourth quarter of 2016 and $1.4 million was recorded in the first quarter of 2017. All associated costs and insurance recoveries have been recorded in "Cost of sales" in our Consolidated Statements of Operations and included in cash flows from operations in our Consolidated Statement of Cash Flows On July 6, 2016, our Lewiston, Idaho facility experienced an electrical incident that caused a complete plant-wide power outage. Power was restored in approximately 18 hours. However, damage to certain equipment limited pulping operations throughout the remainder of July. In addition to repair costs, we incurred other various costs, including incremental pulp replacement costs, incremental natural gas costs, lost electrical generation and increased labor, chemical and wood costs. We filed a claim with our insurance provider to recover the cost of repairs to the equipment and estimated lost profits due to the disruption of the operations during the repair period. All associated costs and insurance recoveries were recorded in "Cost of sales" in our Consolidated Statement of Operations and included in the "Net earnings" line in our Consolidated Statement of Cash Flows. The insurance claim for this event totaled $8.5 million. The claim was settled in its entirety in September 2016, and, net of the policy deductible and certain exclusions totaling $3.5 million, we received $5.0 million from our property insurance provider as final payment of the claim. |
Summary of Significant Accouting Policies Summary of Significant Accounting Policies (Policies) |
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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 second, third and fourth quarters of 2018, $22.0 million, $23.4 million, and $23.4 million of receivables were sold under the Account Purchase Agreement, respectively. As of December 31, 2018, $14.5 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Consolidated Statements of Cash Flows. For the year ended December 31, 2018, we recorded factoring expense on sales of receivables of $0.2 million, which 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 servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. |
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SIGNIFICANT ESTIMATES | SIGNIFICANT ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., which we refer to in this report as 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 period. Significant areas requiring the use of estimates and measurement of uncertainty include determination of valuation for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, allocation of purchase price and fair value estimates for business combinations, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | CASH, CASH EQUIVALENTS AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the balance sheet that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows.
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including assets acquired under capital lease obligations and any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Estimated useful lives generally range from 10 to 40 years for land improvements; 10 to 40 years for buildings and improvements; 5 to 25 years for machinery and equipment; and 2 to 15 years for office and other equipment. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. We review the carrying value of our property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. An impairment of property, plant and equipment exists when the carrying value is not considered to be recoverable through future undiscounted cash flows from operations and the carrying value of the assets exceeds the estimated fair value. On August 21, 2018, we simultaneously announced and completed the sale of our Ladysmith, Wisconsin tissue manufacturing facility (the “Ladysmith Facility”) for net proceeds of approximately $71 million. This sale included $26.8 million of net property, plant and equipment. On March 31, 2017, we closed our Oklahoma City converting facility. For the twelve months ended December 31, 2017, we incurred $14.7 million of costs associated with this announced closure, which includes $3.7 million in accelerated depreciation on certain fixed assets. For the twelve months ended December 31, 2016, we incurred $1.7 million of costs associated with this announced closure, which includes $1.3 million in accelerated depreciation on certain fixed assets. |
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Intangible Assets, Finite-Lived, Policy [Policy Text Block] | INTANGIBLE ASSETS We use estimates in determining and assigning the fair value of the useful lives of intangible assets, the amount and timing of related future cash flows and fair values of the related operations. Our intangible assets have definite lives and are amortized over their estimated useful lives. We assess our intangible assets for impairment annually and when events or changes in circumstances indicate that the carrying amount may not be recoverable. |
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GOODWILL AND INTANGIBLES | GOODWILL Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. We use estimates in determining and assigning the fair value of goodwill, including the amount and timing of related future cash flows and fair values of the related operations. Goodwill is not amortized but is tested for impairment annually as of November 1, as well as any time when events suggest impairment may have occurred. In the event the carrying value of the reporting unit in which our goodwill is assigned exceeds the estimated fair value of that reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit exceeds its implied fair value. We recorded $229.5 million of goodwill in connection with our acquisition of Cellu Tissue in December 2010. All of the recorded goodwill was assigned to our Consumer Products segment and reporting unit. As a result of the December 2014 sale of our Consumer Products segment's specialty business and mills, a portion of goodwill was allocated to the divested mills and included in our loss on divested assets. As the result of the August 2018 sale of the Ladysmith, Wisconsin manufacturing facility, a portion of goodwill was allocated to the sale of this business, resulting in a write-off of $14.0 million of goodwill. We recorded $35.1 million of goodwill in connection with our acquisition of Manchester. The goodwill from this acquisition is included in our Pulp and Paperboard segment. We concluded that the estimated fair value of the Consumer Products reporting unit was less than its carrying value, resulting in a non-cash impairment charge of $195.1 million, which represented the remaining goodwill from our Consumer Products reporting unit. See Note 7, "Goodwill and Intangible Assets" for further discussion. |
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PENSION AND OTHER POSTRETIREMENT PLANS, POLICY [Policy Text Block] | PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Three critical assumptions are the discount rate applied to pension plan obligations, the rate of return on plan assets and mortality rates. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, significant assumptions in determining OPEB income are the discount rate applied to benefit obligations, and mortality rates. We also participate in multiemployer defined benefit pension plans. We make contributions to these multiemployer plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees. The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management's expectations. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes historical long-term returns for various investment categories, as measured by appropriate indices. These indices are weighted based upon the extent to which plan assets are invested in the particular categories in arriving at our determination of a composite expected return. An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets. The estimated net loss and prior service cost (credit) for the defined benefit pension and OPEB plans is amortized from accumulated other comprehensive loss into net periodic cost (benefit) in accordance with current accounting guidance. Net periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2018 and 2017, long-term assets are recorded for overfunded single-employer plans and liabilities are recorded for underfunded single-employer plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded single-employer plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability. |
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INCOME TAXES | INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate. |
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REVENUE RECOGNITION | REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally 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, which represents the majority of our shipping terms, 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 December 31, 2018 and 2017, we had allowances for doubtful accounts of $1.5 million and $1.4 million, respectively. Bad debt expense, net, charged to selling, general and administrative expenses during 2018, 2017 and 2016 was $0.4 million, $0.2 million, and $0.7 million, respectively. All other activity impacting the allowance for doubtful accounts was immaterial for all periods. We had one customer in the Consumer Products segment, the Kroger Company, that accounted for approximately 11.1% of our total company net sales in 2018, approximately 15.3% of our total company net sales in 2017, and approximately 13.4% of our total company net sales in 2016. Refer to Note 19, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. |
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ENVIRONMENTAL | ENVIRONMENTAL As part of our corporate policy, we have an ongoing process to monitor, report on and comply with environmental requirements. Based on this ongoing process, accruals for environmental liabilities that are not within the scope of specific authoritative guidance related to accounting for asset retirement obligations or conditional asset retirement obligations are established in accordance with guidance related to accounting for contingencies. We estimate our environmental liabilities based on various assumptions and judgments, the specific nature of which varies in light of the particular facts and circumstances surrounding each environmental liability. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude and timing of required investigation, remediation and monitoring activities and the probable cost of these activities. Currently, we are not aware of any material environmental liabilities and have accrued only for specific costs related to environmental matters that we have determined are probable and for which an amount can be reasonably estimated. Fees for professional services associated with environmental and legal issues are expensed as incurred. |
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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 the repurchase program, of which 84,750 shares were repurchased during 2017 at an average price of $57.53 per share. We did not repurchase shares during 2018. As of December 31, 2018, we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. During 2017, we retired 7,821,005 treasury shares. The impact of this retirement was reflected within the stockholders' equity line items on our Consolidated Balance Sheet. |
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DERIVATIVES | DERIVATIVES We had no activity during the years ended December 31, 2018, 2017 and 2016 that required hedge or derivative accounting treatment. However, to partially 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 December 31, 2018, these contracts covered approximately 14% of the expected average monthly requirements for 2019, including approximately 12% of the expected average monthly requirements for the first quarter. For the years ended December 31, 2018, 2017 and 2016, approximately 29%, 28%, and 45%, respectively, of our natural gas volumes were supplied through firm price contracts. These contracts qualify for treatment as “normal purchases or normal sales” under authoritative guidance and thus require no mark-to-market adjustment. |
Inventories Inventories (Policies) |
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Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy [Policy Text Block] | At December 31, 2018, our inventories are stated at the lower of net realizable value or current average cost using the average cost method. |
Business Combinations (Tables) |
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | We allocated the purchase price to the net assets of Manchester Industries acquired in the acquisition based on our estimates of the fair value of assets and liabilities as follows:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment |
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Goodwill and Intangible Assets (Tables) |
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Goodwill Disclosure [Text Block] | Changes in the carrying value of goodwill are as follows:
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Intangible Assets | Intangible assets at the balance sheet dates are comprised of the following:
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Estimated Future Amortization Expense Related to Intangible Assets | As of December 31, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands):
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Income Taxes (Tables) |
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Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction | earnings before income taxes is comprised of the following amounts:
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Provision (Benefit) for Income Taxes | The income tax provision (benefit) is comprised of the following:
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Income Tax Reconciliation | The income tax provision or benefit differs from the amount computed by applying the statutory federal income tax rate of 21.0% in 2018 and 35.0% in 2017 and 2016 to earnings before income taxes due to the following:
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Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:
Net deferred tax assets (liabilities) consist of:
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Roll Forward of Unrecognized Tax Benefits and Associated Interest and Penalties Included in the Accrued Taxes line item in non-current liabilities |
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Accounts Payable and Accrued Liabilities (Tables) |
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Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities
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Other Long-Term Obligations (Tables) |
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Other Long-Term Obligations |
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Reclassification out of Accumulated Other Comprehensive Income (Tables) |
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Accumulated other comprehensive loss at the balance sheet dates is comprised of the following:
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Savings, Pension and Other Postretirement Employee Benefit Plans (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Benefit Obligation, Plan Assets and Funded Status for Company-Sponsored Benefit Plans | The changes in benefit obligation, plan assets and funded status for company-sponsored benefit plans as of December 31 are as follows:
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Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the Consolidated Balance Sheets:
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Amounts Recognized (Pre-tax) in Accumulated Other Comprehensive Loss | mounts recognized in Accumulated Other Comprehensive Loss as of December 31 consist of:
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Certain Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Information as of December 31 for certain pension plans included above with accumulated benefit obligations in excess of plan assets were as follows:
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Pre-tax Components of Net Periodic Cost | Pre-tax components of net periodic cost and other amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31 were as follows: Net Periodic Cost:
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Other Amounts Recognized in Other Comprehensive Income (Loss) | Other amounts recognized in Other Comprehensive Income (Loss) before tax:
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Weighted Average Assumptions Used to Determine Benefit Obligation | Weighted average assumptions used to determine the benefit obligation as of December 31 were:
Weighted average assumptions used to determine the net periodic cost for the years ended December 31 were:
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One Percentage Point Change in Health Care Cost Trend Rates | A one percentage point change in the health care cost trend rates would have the following effects:
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Investments at Fair Value for Company Sponsored Pension Benefit Plans within Fair Value Hierarchy | The following tables set forth by level, within the fair value hierarchy, the investments at fair value for our company-sponsored pension benefit plans:
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Long Term Asset Allocation Ranges | Assets are diversified among various asset classes, such as domestic equities, international equities, fixed income and cash. The long-term asset allocation ranges are as follows:
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Schedule of Expected Benefit Payments | Estimated future benefit payments are as follows for the years indicated:
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Multiemployer Defined Benefit Plans |
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Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Equity-Based Compensation Expense | Employee equity-based compensation expense was recognized as follows:
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Summary of Status of Outstanding RSU Awards | A summary of the status of outstanding RSU awards as of December 31, 2018, 2017, and 2016, and changes during those years, is presented below:
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Share-based Compensation, Activity [Table Text Block] | A summary of the status of outstanding stock option awards as of December 31, 2018, and changes during the year, is presented below:
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Assumption Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options |
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Summary of Status of Outstanding Performance Share Awards | A summary of the status of outstanding performance share awards as of December 31, 2018, 2017, and 2016, and changes during those years, is presented below:
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Fair Value Measurements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of our financial instruments as of our balance sheet dates are presented below:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Commitments For Capital And Operating Leases | As of December 31, 2018, under current operating and capital lease contracts, we had future minimum lease payments as follows:
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Segment Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | Our manufacturing facilities and all other assets are located within the continental United States. We sell and ship our products to customers in many foreign countries. 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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Revenue from External Customers by Products and Services [Table Text Block] | Our manufacturing facilities and all other assets are located within the continental United States. We sell and ship our products to customers in many foreign countries. 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 |
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Financial Results by Quarter Financial Results by Quarter (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Results by Quarter | Financial Results by Quarter (Unaudited)
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Supplemental Guarantor Financial Information (Tables) |
12 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 (Loss) Year Ended December 31, 2018
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2016
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Condensed Consolidating Balance Sheet | Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 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 Year Ended December 31, 2018
Clearwater Paper Corporation Consolidating Statement of Cash Flows Year Ended December 31, 2017
Clearwater Paper Corporation Consolidating Statement of Cash Flows Year Ended December 31, 2016
|
Recently Adopted and New Accounting Standards Recently Adopted and New Accounting Standards (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Short-term Debt [Line Items] | |||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | $ (12,900) | ||
Restricted Cash Equivalents, Current | 1,500 | $ 1,000 | |
Other Nonrecurring Expense, Planned Permaent Facility Closure | 14,700 | $ 1,700 | |
Proceeds and Excess Tax Benefit from Share-based Compensation | 700 | $ 2,200 | |
Operating Leases, Future Minimum Payments Due | 74,811 | ||
Minimum | |||
Short-term Debt [Line Items] | |||
Operating Lease, Liability | 80,000 | ||
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Operating Lease, Liability | $ 90,000 |
Inventories (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Pulp, paperboard and tissue products | $ 159,499 | $ 165,281 |
Materials and supplies | 86,892 | 85,987 |
Logs, pulpwood, chips and sawdust | 19,853 | 14,775 |
Inventories | $ 266,244 | $ 266,043 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 2,161,306 | $ 2,124,701 |
Buildings and improvements | 381,071 | 340,042 |
Land improvements | 84,525 | 49,908 |
Office and other equipment | 49,980 | 46,467 |
Land | 10,756 | 11,726 |
Construction in progress | 273,291 | 114,424 |
Property, plant and equipment, gross, total | 2,960,929 | 2,687,268 |
Less accumulated depreciation and amortization | (1,691,658) | (1,636,286) |
Property, plant and equipment, net | $ 1,269,271 | $ 1,050,982 |
Property, Plant and Equipment Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
|
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 94.4 | $ 97.0 | $ 86.1 | |
Interest expense, capitalized | 9.0 | 4.6 | 2.3 | |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 26.8 | |||
Restructuring and Related Cost, Accelerated Depreciation | 3.7 | $ 1.3 | ||
Machinery and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital leased assets, gross | $ 26.1 | $ 24.4 |
Goodwill and Intangible Assets Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Goodwill | $ 35,074 | $ 244,161 | $ 244,283 | |
Goodwill, Written off Related to Asset Divestiture | $ (14,008) | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | (122) | ||
Finite-Lived Intangible Assets, Written off Related to Assets Divested | $ 900 | |||
Goodwill, Impairment Loss | $ (195,079) | $ 0 | 0 | |
Non-compete agreements | ||||
Useful Life | 5 years | |||
Minimum | Non-compete agreements | ||||
Useful Life | 5 years | |||
Maximum | Non-compete agreements | ||||
Useful Life | 10 years | |||
Consumer Products | ||||
Goodwill | $ 0 | $ 209,087 | ||
Goodwill, Impairment Loss | (195,079) | 0 | $ 0 | |
Pulp And Paperboard | ||||
Goodwill | $ 35,074 | $ 35,074 |
Goodwill and Intangible Assets Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 7,140 | |
2020 | 3,246 | |
2021 | 2,917 | |
2022 | 2,217 | |
2023 | 2,140 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 6,420 | |
Net Balance | $ 24,080 | $ 32,542 |
Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction [Abstract] | |||
Earnings before income taxes | $ (133,462) | $ 40,954 | $ 80,666 |
Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Current | |||
Federal | $ 1,073 | $ (16,729) | $ 7,434 |
State | 2,148 | 933 | 5,351 |
Current Income Tax Expense (Benefit) | 3,221 | (15,796) | 12,785 |
Deferred | |||
Federal | 3,569 | (36,810) | 15,573 |
State | 3,515 | (3,779) | 2,754 |
Deferred tax expense | 7,084 | (40,589) | 18,327 |
Income tax provision | $ 10,305 | $ (56,385) | $ 31,112 |
Income Tax Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Proceeds and Excess Tax Benefit from Share-based Compensation | $ 700 | $ 2,200 | |
Tax Expense associated with the goodwill write-off as part of our asset divestiture | 2,900 | ||
Computed expected tax provision | (28,027) | 14,334 | $ 28,233 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 40,966 | 0 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | (70,055) | 0 |
State and local taxes, net of federal income tax impact | 4,433 | (1,201) | 3,046 |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | 10,889 | 3,158 | 2,850 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | 712 | 2,207 | 0 |
Other | 3,110 | 1,488 | 2,683 |
Income tax provision | 10,305 | (56,385) | $ 31,112 |
Investment Tax Credit | $ 10,000 | $ 2,400 |
Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
|||
Disclosure Net Deferred Tax Assets Liabilities [Abstract] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 700 | |||
Non-current deferred tax assets | [1] | 6,863 | $ 6,194 | |
Non-current deferred tax liabilities | 118,528 | 121,182 | ||
Non-current deferred tax liabilities | (111,665) | (114,988) | ||
Deferred Tax Liabilities, Net | $ (111,665) | $ (114,988) | ||
|
Tax Credits and Losses Subject to Expiration by Major Jurisdictions (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforward, Amount | $ 10,705 | $ 11,752 |
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 228,059 | $ 169,293 |
Accrued wages, salaries and employee benefits | 41,426 | 41,979 |
Accrued interest | 14,672 | 12,723 |
Accrued discounts and allowances | 8,143 | 7,283 |
Accrued utilities | 6,934 | 6,759 |
Accrued taxes other than income taxes payable | 6,243 | 6,907 |
Other | 15,555 | 11,677 |
Accounts payable and accrued liabilities | $ 321,032 | $ 256,621 |
Other Long-Term Obligations (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Disclosure Other Long Term Obligations [Abstract] | ||
Long-term lease obligations, net of current portion | $ 27,419 | $ 26,460 |
Deferred compensation | 2,585 | 5,023 |
Deferred proceeds | 4,511 | 5,576 |
Other | 4,462 | 6,216 |
Other long-term obligations | $ 38,977 | $ 43,275 |
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Accumulated other comprehensive loss, net of tax | $ (67,348) | $ (43,983) | ||||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | 12,900 | |||||||||
Net current period other comprehensive income ending balance | (10,513) | 7,770 | $ 3,795 | |||||||
Amortization of actuarial loss | 21,800 | (9,200) | ||||||||
Amortization of actuarial loss included in net periodic cost, before tax | 9,200 | 3,300 | ||||||||
Amortization of prior service (cost) credit | 1,700 | 1,500 | ||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (3,800) | 3,100 | ||||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 3,500 | |||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax | 0 | 0 | 1,366 | |||||||
Defined Benefit Pension Plan Adjustments | ||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Accumulated other comprehensive loss, net of tax | (67,348) | (43,983) | (51,753) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | [1] | 6,745 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 5,523 | 1,025 | ||||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | [2] | (12,852) | ||||||||
Net current period other comprehensive income ending balance | (16,036) | [1] | 7,770 | [2] | ||||||
Pension Plan [Member] | ||||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Amortization of actuarial loss | 10,058 | 9,874 | 11,463 | |||||||
Amortization of prior service (cost) credit | 0 | (8) | (22) | |||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | $ 0 | $ 3,482 | |||||||
|
Amounts Recognized (Pre-tax) in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Pension Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ (7,600) | |
Net loss | 111,927 | $ 99,865 |
Prior service cost (credit) | 0 | 0 |
Net amount recognized | 111,927 | 99,865 |
Other Postretirement Employee Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | (900) | |
Net loss | (15,006) | (15,541) |
Prior service cost (credit) | 0 | (1,676) |
Net amount recognized | $ (15,006) | $ (17,217) |
Certain Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 294,166 | $ 178,452 |
Accumulated benefit obligation | 294,166 | 178,452 |
Fair value of plan assets | $ 268,857 | $ 163,460 |
Weighted Average Assumptions Used to Determine Benefit Obligation (Details) |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Pension Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.40% | 3.90% | 4.45% |
Other Postretirement Employee Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.55% | 3.95% | 4.30% |
Weighted Average Assumptions Used to Determine Net Periodic Cost (Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Pension Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 7.6 | ||
Discount rate | 3.90% | 4.45% | 4.70% |
Expected return on plan assets | 6.00% | 6.75% | 6.75% |
Other Postretirement Employee Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 0.9 | ||
Discount rate | 3.95% | 4.30% | 4.50% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
One Percentage Point Change in Health Care Cost Trend Rates (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect of 1% increase on total service and interest cost components | $ 172 |
Effect of 1% decrease on total service and interest cost components | (149) |
Effect of 1% increase on postretirement employee benefit obligation | 3,749 |
Effect of 1% decrease on postretirement employee benefit obligation | $ (3,279) |
Estimated Future Benefit Payments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Pension Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $ 21 |
2016 | 21 |
2017 | 20 |
2018 | 20 |
2019 | 20 |
2020-2023 | 99 |
Other Postretirement Employee Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 7 |
2016 | 7 |
2017 | 5 |
2018 | 5 |
2019 | 4 |
2020-2023 | $ 19 |
Savings, Pension and Other Postretirement Employee Benefit Plans Additional Information (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
USD ($)
$ / h
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 17,200,000 | $ 16,600,000 | $ 16,900,000 |
Non-operating pension and other postretirment benefit (costs) income | 4,933,000 | (1,143,000) | |
Multiemployer Plans, Withdrawal Obligation | $ 78,000,000 | ||
Salaried Pension Plan Single Lump Sum Payments | 10,600,000 | ||
Hourly Pension Plan Single Lump Sum Payments | 4,800,000 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 3,500,000 | ||
IAM | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution rates | $ / h | 4.0 | ||
USW | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution rates | $ / h | 2.79 | ||
Maximum | Plan A [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded Percentage Of Pension Protection Plan | 65.00% | ||
Maximum | Plan B [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded Percentage Of Pension Protection Plan | 80.00% | ||
Minimum | Plan B [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded Percentage Of Pension Protection Plan | 65.00% | ||
Minimum | Plan C [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded Percentage Of Pension Protection Plan | 80.00% | ||
Pension Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailments | $ 0 | 0 | 0 |
Net loss expected to be recognized as component of net periodic benefit over the next fiscal year | (7,600,000) | ||
Fair value of plan assets | 268,857,000 | 310,966,000 | 285,638,000 |
Employer contribution | 466,000 | 454,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | 3,482,000 |
Other Postretirement Employee Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss expected to be recognized as component of net periodic benefit over the next fiscal year | $ (900,000) | ||
Assumed health care cost trend rates used to determine the company's benefit obligations and expense | 6.90% | ||
Assumed health care cost trend rates, graded rate | 6.00% | ||
Expected year when trend rate to be reached | 70 years | ||
Fair value of plan assets | $ 20,000 | 20,000 | 20,000 |
Employer contribution | 7,000,000 | 5,689,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | 0 | 0 |
Other Postretirement Employee Benefit Plans | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed health care cost trend rates, graded rate | 4.00% | ||
defined benefit plan, ultimate health care cost trend rates, with added benefits | 2.50% | ||
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 500,000 | ||
Other Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | 0 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 0 | ||
Fair Value, Inputs, Level 1 | Other Postretirement Employee Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20,000 | 20,000 | |
Cost of Sales [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1,200,000 | 1,300,000 | |
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 | 800,000 | 900,000 | 700,000 |
Non-operating expense [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1,100,000 | ||
Non-operating pension and other postretirment benefit (costs) income | $ (4,900,000) | $ (1,100,000) | $ 3,500,000 |
Share Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings Per Share (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Basic average common shares outstanding | [1] | 16,486,807.000 | 16,464,286.000 | 17,000,599.000 | |||||||||
Incremental shares due to: | |||||||||||||
Restricted stock units | 0 | 21,522.000 | 21,668.000 | ||||||||||
Performance shares | 0 | 45,252.000 | 76,525.000 | ||||||||||
Incremental Common Shares Attributable to Stock Options | 0 | 24,866.000 | 7,648.000 | ||||||||||
Diluted average common shares outstanding | 16,486,807 | 16,555,926 | 17,106,440 | ||||||||||
Basic net earnings per common share | $ (11.39) | $ 2.09 | $ 0.42 | $ 0.16 | $ 4.92 | $ 0.05 | $ 0.49 | $ 0.46 | $ (8.72) | $ 5.91 | $ 2.91 | ||
Diluted net earnings per common share | $ (11.39) | $ 2.08 | $ 0.42 | $ 0.16 | $ 4.88 | $ 0.05 | $ 0.48 | $ 0.45 | $ (8.72) | $ 5.88 | $ 2.90 | ||
Anti-dilutive shares excluded from calculation | 929,399.000 | 499,348.000 | 220,037.000 | ||||||||||
|
Equity-Based Compensation Plans Employee Plans Equity Based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee equity-based compensation | $ 5,654 | $ 6,453 | $ 7,605 |
Related tax benefit | 1,486 | 2,149 | 2,767 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee equity-based compensation | 2,141 | 1,618 | 1,381 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee equity-based compensation | 1,125 | 2,283 | 3,311 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee equity-based compensation | $ 2,388 | $ 2,552 | $ 2,913 |
Equity-Based Compensation Plans Summary of Status of Outstanding RSU Awards (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Previous Period and Distributed in Current Period | 1,775 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 0 | $ 7,232 | $ 0 |
Number of share | |||||
Vested | (261,196) | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Share Balance | 4,226 | 0 | 4,226 | 10,860 | |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedNumber | $ 38.75 | $ 0.00 | $ 38.75 | $ 52.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 132,360 | 161,316 | 132,360 | 100,758 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Grant Date Fair Value | $ 38.94 | $ 34.83 | $ 38.94 | $ 33.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Deferred Share Balance | 33,663 | 33,663 | 33,663 | 35,438 | |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedandDeferredNumber | $ 7.31 | $ 7.31 | $ 7.31 | $ 7.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,000,000 | ||||
Number of share | |||||
Beginning Balance | 94,471 | 54,460 | 46,029 | ||
Granted | 111,054 | 66,774 | 44,627 | ||
Vested | (43,878) | (17,531) | (29,338) | ||
Forfeited | (33,994) | (9,232) | (6,858) | ||
Ending Balance | 94,471 | 127,653 | 94,471 | 54,460 | |
Weighted Average Grant Date Fair Value | |||||
Beginning Balance | $ 50.22 | $ 47.16 | $ 60.17 | ||
Granted | 37.31 | 56.45 | 39.10 | ||
Vested | 46.36 | 62.75 | 55.16 | ||
Forfeited | 43.30 | 53.52 | 47.80 | ||
Ending Balance | $ 50.22 | $ 42.09 | $ 50.22 | $ 47.16 | |
Aggregate intrinsic value | |||||
Aggregate intrinsic value | $ 6,000 | $ 3,931,000 | $ 6,000 | $ 6,605,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 3,500,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months |
Equity-Based Compensation Plans Assumption Used in Monte Carlo Model to Estimate Fair Value of Performance Shares Awards (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 41.62 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.51 | $ 18.82 | $ 14.42 |
Risk free rate | 2.74% | ||
Measurement period | 6 years | ||
Volatility | 35.00% |
Equity-Based Compensation Plans Summary of Status of Outstanding Performance Share Awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance share payout measured by total shareholder return | 40.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months | 7 years 5 months | 8 years 2 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 273,776 | |||
Number of share | ||||
Settled | (261,196) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning Balance | 657,319 | 527,054 | 277,693 | |
Granted | 198,426 | 158,484 | 280,191 | |
Forfeited | (69,557) | (22,306) | (30,830) | |
Ending Balance | 657,319 | 761,934 | 657,319 | 527,054 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Granted | $ 37.39 | $ 56.45 | $ 38.86 | |
Aggregate intrinsic value | ||||
Aggregate intrinsic value | $ 0 | |||
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% | |||
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 0 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Settled and Distributed In Period | 41,538 | |||
Number of share | ||||
Ending Balance | 117,252 | 78,430 | 117,252 | 175,683 |
Granted | 49,040 | 33,907 | 93,397 | |
Settled | (73,243) | (87,491) | 0 | |
Forfeited | (14,619) | (4,847) | (10,277) | |
Beginning Balance | 117,252 | 175,683 | 92,563 | |
Weighted Average Grant Date Fair Value | ||||
Beginning Balance | $ 45.10 | $ 62.26 | $ 84.18 | |
Granted | 37.45 | 58.58 | 39.70 | |
Settled | 39.70 | 84.65 | 0.00 | |
Forfeited | 45.12 | 47.61 | 54.55 | |
Ending Balance | $ 45.10 | $ 45.36 | $ 45.10 | $ 62.26 |
Aggregate intrinsic value | ||||
Aggregate intrinsic value | $ 5,323 | $ 1,911 | $ 5,323 | $ 11,516 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,800 | |||
2017 [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance share payout measured by return on invested capital | 60.00% | |||
2018 [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance share payout measured by return on invested capital | 40.00% | |||
Maximum | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
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% | |||
Minimum [Member] | 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% |
Equity-Based Compensation Plans - Additional Information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | 37 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jan. 31, 2012 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 761,934 | 657,319 | 761,934 | 657,319 | 527,054 | 277,693 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 49.38 | $ 52.84 | $ 49.38 | $ 52.84 | $ 51.83 | $ 64.47 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 63.40 | $ 63.40 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 9 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 0 | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 198,426 | 158,484 | 280,191 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 37.39 | $ 56.45 | $ 38.86 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (69,557) | (22,306) | (30,830) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 43.18 | $ 50.74 | $ 47.79 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (24,254) | (5,913) | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 62.74 | $ 66.97 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 4 months | ||||||
Stock Plan, shares authorized | 6,200,000 | 6,200,000 | |||||
Shares Available For Grant | 3,100,000 | 3,100,000 | |||||
Percentage of performance share payout measured by total shareholder return | 40.00% | 40.00% | |||||
Distributed of Previously Deferred Shares | 1,775 | ||||||
Cash paid for minimum tax withholdings | $ 413,000 | $ 1,127,000 | $ 933,000 | ||||
Share based compensation expense | $ (5,654,000) | $ (6,453,000) | $ (7,605,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 261,196 | ||||||
Options, Vested and Expected to be Exercised, Outstanding, Weighted Average Exercise Price | $ 41.62 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months | 7 years 5 months | 8 years 2 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 0 | $ 0 | $ 7,232 | $ 0 | |
Equity Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs | 2,700,000 | $ 2,700,000 | |||||
Unrecognized compensation costs, expected weighted-average period to be recognized (in years) | 2 years 3 months | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 3 years | ||||||
Unrecognized compensation costs | $ 1,800,000 | $ 1,800,000 | |||||
Vested Shares Settled Without Payment | 73,243 | ||||||
Settlement and distribution of shares issued (in shares) | 41,538 | ||||||
Share based compensation expense | $ (1,125,000) | $ (2,283,000) | $ (3,311,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 73,243 | 87,491 | 0 | ||||
Performance Shares [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of amount subject to performance share award of number of shares actually issued | 0.00% | 0.00% | |||||
Performance Shares [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of amount subject to performance share award of number of shares actually issued | 200.00% | 200.00% | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.51 | $ 18.82 | $ 14.42 | ||||
Share based compensation expense | $ (2,388,000) | $ (2,552,000) | $ (2,913,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 10,900,000 | ||||||
Employee Stock Option [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 1 year | ||||||
Employee Stock Option [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,000,000 | ||||||
Unrecognized compensation costs | $ 3,500,000 | $ 3,500,000 | |||||
Unrecognized compensation costs, expected weighted-average period to be recognized (in years) | 1 year 11 months | ||||||
Settlement and distribution of shares issued (in shares) | 28,971 | 20,940 | 48,104 | 25,940 | |||
Shares issued (in shares) | 34,447 | 17,834 | |||||
Cash paid for minimum tax withholdings | $ 400,000 | $ 1,100,000 | |||||
Balance of Shares Vested and Deferred | 33,663 | 33,663 | 33,663 | 33,663 | 35,438 | ||
Share based compensation expense | $ (2,141,000) | $ (1,618,000) | $ (1,381,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 43,878 | 17,531 | 29,338 | ||||
Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 1 year | ||||||
Restricted Stock Units (RSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 3 years | ||||||
2017 [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of performance share payout measured by return on invested capital | 60.00% | 60.00% | |||||
Cellu Tissue Holdings Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Plan, shares authorized | 700,000 | 700,000 | |||||
Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation awards vesting period | 1 year | 3 years | |||||
Share based compensation expense | $ 2,300,000 | $ 2,800,000 | $ 4,800,000 | ||||
Deferred compensation share-based arrangements, liability, classified, noncurrent | $ (800,000) | $ (3,600,000) | (800,000) | (3,600,000) | |||
Deferred Compensation Share-based Arrangements, Liability, Current | $ (1,300,000) | $ (2,400,000) | $ (1,300,000) | $ (2,400,000) |
Fair Value Measurements Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash, restricted cash, and short-term investments (Level 1) | $ 24,947 | $ 16,738 |
Line of Credit Facility, Fair Value of Amount Outstanding | 99,909 | 154,882 |
Supply chain financing, amount outstanding | 20,800 | 0 |
Long-term debt (Level 1) | 612,546 | 569,250 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash, restricted cash, and short-term investments (Level 1) | 24,947 | 16,738 |
Line of Credit, Current | 100,000 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 200,000 | 155,000 |
Supply chain financing, amount outstanding | 20,800 | 0 |
Long-term debt (Level 1) | $ 675,000 | $ 575,000 |
Commitments and Contingencies Commitments and Contingencies Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Leases Disclosure [Line Items] | |||
Rent expense | $ 11.0 | $ 12.6 | $ 14.3 |
Commitments and Contingencies Commitments and Contingencies Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $ 3,093 |
2016 | 3,062 |
2017 | 3,112 |
2018 | 3,019 |
2019 | 2,789 |
Thereafter | 21,710 |
Total future minimum lease payments | 36,785 |
Less interest portion | (13,887) |
Present value of future minimum lease payments | 22,898 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | 12,038 |
2016 | 11,421 |
2017 | 10,424 |
2018 | 9,489 |
2019 | 7,163 |
Thereafter | 24,276 |
Total future minimum lease payments | $ 74,811 |
Segment Information Reportable Segments Information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 16, 2016 |
||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 4,300,000 | $ 4,300,000 | |||||||||||||||||||||
Oklahoma City sublease expense | $ 3,200,000 | 3,200,000 | |||||||||||||||||||||
Gain (Loss) on Disposition of Assets | $ 24,000,000 | $ 23,952,000 | |||||||||||||||||||||
Net sales | $ 428,707,000 | 426,460,000 | $ 432,099,000 | $ 436,952,000 | 436,716,000 | 426,504,000 | $ 429,663,000 | $ 437,525,000 | 1,724,218,000 | 1,730,408,000 | $ 1,734,763,000 | ||||||||||||
Business Acquisition, Transaction Costs | 200,000 | 200,000 | 2,700,000 | $ 2,700,000 | |||||||||||||||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 3,500,000 | ||||||||||||||||||||||
Income from operations | (174,729,000) | 46,900,000 | 18,381,000 | 11,539,000 | 26,367,000 | 5,160,000 | 19,148,000 | 20,510,000 | (97,909,000) | 71,185,000 | 114,764,000 | ||||||||||||
Gain on divested assets, net | 1,008,000 | $ 22,944,000 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 | 23,952,000 | 0 | 1,755,000 | ||||||||||||
Goodwill, Impairment Loss | (195,079,000) | 0 | 0 | ||||||||||||||||||||
Depreciation and amortization | 101,953,000 | 104,990,000 | 91,090,000 | ||||||||||||||||||||
Assets | 1,788,118,000 | 1,802,252,000 | 1,788,118,000 | 1,802,252,000 | 1,684,342,000 | ||||||||||||||||||
Capital expenditures | $ 337,950,000 | 198,685,000 | 155,677,000 | ||||||||||||||||||||
Restructuring and Related Cost, Accelerated Depreciation | $ 3,700,000 | $ 1,300,000 | |||||||||||||||||||||
Concentration Risk, Percentage | 11.10% | 15.30% | 13.40% | ||||||||||||||||||||
Consumer Products | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Severance Costs | $ 1,900,000 | ||||||||||||||||||||||
Net sales | 884,812,000 | $ 941,907,000 | $ 988,380,000 | ||||||||||||||||||||
Operating Income (loss) before gain on divested assets and goodwill impairment | [1],[2],[3] | (2,731,000) | 28,973,000 | 66,164,000 | |||||||||||||||||||
Income from operations | (173,858,000) | 28,973,000 | 67,919,000 | ||||||||||||||||||||
Gain on divested assets, net | [1] | 23,952,000 | 0 | 1,755,000 | |||||||||||||||||||
Goodwill, Impairment Loss | (195,079,000) | 0 | 0 | ||||||||||||||||||||
Depreciation and amortization | [4] | 57,784,000 | 65,007,000 | 59,375,000 | |||||||||||||||||||
Assets | 1,094,120,000 | 1,069,876,000 | 1,094,120,000 | 1,069,876,000 | 1,031,563,000 | ||||||||||||||||||
Capital expenditures | 307,794,000 | 112,597,000 | 47,079,000 | ||||||||||||||||||||
Pulp and Paperboard | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Severance Costs | 500,000 | ||||||||||||||||||||||
Net sales | 839,406,000 | 788,501,000 | 746,383,000 | ||||||||||||||||||||
Income from operations | [2],[3] | 130,426,000 | 97,360,000 | 112,700,000 | |||||||||||||||||||
Depreciation and amortization | 37,798,000 | 34,474,000 | 26,741,000 | ||||||||||||||||||||
Assets | 638,772,000 | 645,353,000 | 638,772,000 | 645,353,000 | 586,687,000 | ||||||||||||||||||
Capital expenditures | 17,943,000 | 74,616,000 | 104,113,000 | ||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Income from operations | (43,432,000) | 126,333,000 | 180,619,000 | ||||||||||||||||||||
Assets | 1,732,892,000 | 1,715,229,000 | 1,732,892,000 | 1,715,229,000 | 1,618,250,000 | ||||||||||||||||||
Capital expenditures | 325,737,000 | 187,213,000 | 151,192,000 | ||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Severance Costs | 4,500,000 | ||||||||||||||||||||||
Income from operations | [2],[3],[5] | (54,477,000) | (55,148,000) | (65,855,000) | |||||||||||||||||||
Depreciation and amortization | 6,371,000 | 5,509,000 | 4,974,000 | ||||||||||||||||||||
Assets | $ 55,226,000 | $ 87,023,000 | 55,226,000 | 87,023,000 | 66,092,000 | ||||||||||||||||||
Capital expenditures | $ 12,213,000 | $ 11,472,000 | $ 4,485,000 | ||||||||||||||||||||
|
Segment Information Segment Information Summary of Geographic Information Regarding Net Sales (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 428,707,000 | $ 426,460,000 | $ 432,099,000 | $ 436,952,000 | $ 436,716,000 | $ 426,504,000 | $ 429,663,000 | $ 437,525,000 | $ 1,724,218,000 | $ 1,730,408,000 | $ 1,734,763,000 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,648,610,000 | $ 1,650,066,000 | $ 1,663,231,000 |
Segment Information Disaggregation of revenue (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration Risk, Percentage | 11.10% | 15.30% | 13.40% | ||||||||
Revenue, Net | $ 428,707,000 | $ 426,460,000 | $ 432,099,000 | $ 436,952,000 | $ 436,716,000 | $ 426,504,000 | $ 429,663,000 | $ 437,525,000 | $ 1,724,218,000 | $ 1,730,408,000 | $ 1,734,763,000 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | 1,648,610,000 | 1,650,066,000 | 1,663,231,000 | ||||||||
Non-US [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | 75,608,000 | 80,342,000 | 71,532,000 | ||||||||
Paperboard [Domain] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | 837,891,000 | 788,501,000 | 746,383,000 | ||||||||
Non-retail tissue [Domain] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | 88,214,000 | 81,044,000 | 121,291,000 | ||||||||
Other [Domain] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | 3,679,000 | 3,221,000 | 1,324,000 | ||||||||
Retail tissue [Domain] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Net | $ 794,434,000 | $ 857,642,000 | $ 865,765,000 |
Financial Results by Quarter Financial Results by Quarter (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 428,707,000 | $ 426,460,000 | $ 432,099,000 | $ 436,952,000 | $ 436,716,000 | $ 426,504,000 | $ 429,663,000 | $ 437,525,000 | $ 1,724,218,000 | $ 1,730,408,000 | $ 1,734,763,000 |
Costs and expenses: | |||||||||||
Cost of sales | (382,204,000) | (376,221,000) | (387,154,000) | (392,433,000) | (375,458,000) | (386,762,000) | (381,061,000) | (387,060,000) | (1,538,012,000) | (1,530,341,000) | (1,493,559,000) |
Gain on divested assets, net | 1,008,000 | 22,944,000 | 0 | 0 | 0 | 0 | 0 | 0 | 23,952,000 | 0 | 1,755,000 |
Selling, general and administrative expenses | (27,161,000) | (26,283,000) | (26,564,000) | (32,980,000) | (34,891,000) | (34,582,000) | (29,454,000) | (29,955,000) | (112,988,000) | (128,882,000) | (128,195,000) |
Impairment of assets | (195,079,000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total operating costs and expenses | (603,436,000) | (379,560,000) | (413,718,000) | (425,413,000) | (410,349,000) | (421,344,000) | (410,515,000) | (417,015,000) | (1,822,127,000) | (1,659,223,000) | (1,619,999,000) |
Income from operations | (174,729,000) | 46,900,000 | 18,381,000 | 11,539,000 | 26,367,000 | 5,160,000 | 19,148,000 | 20,510,000 | (97,909,000) | 71,185,000 | 114,764,000 |
Net earnings | $ (187,772,000) | $ 34,444,000 | $ 6,961,000 | $ 2,600,000 | $ 80,924,000 | $ 863,000 | $ 8,037,000 | $ 7,515,000 | $ (143,767,000) | $ 97,339,000 | $ 49,554,000 |
Net earnings per common share: | |||||||||||
Basic (in dollars per share) | $ (11.39) | $ 2.09 | $ 0.42 | $ 0.16 | $ 4.92 | $ 0.05 | $ 0.49 | $ 0.46 | $ (8.72) | $ 5.91 | $ 2.91 |
Diluted (in dollars per share) | $ (11.39) | $ 2.08 | $ 0.42 | $ 0.16 | $ 4.88 | $ 0.05 | $ 0.48 | $ 0.45 | $ (8.72) | $ 5.88 | $ 2.90 |
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | $ 428,707,000 | $ 426,460,000 | $ 432,099,000 | $ 436,952,000 | $ 436,716,000 | $ 426,504,000 | $ 429,663,000 | $ 437,525,000 | $ 1,724,218,000 | $ 1,730,408,000 | $ 1,734,763,000 |
Cost and expenses: | |||||||||||
Cost of sales | (382,204,000) | (376,221,000) | (387,154,000) | (392,433,000) | (375,458,000) | (386,762,000) | (381,061,000) | (387,060,000) | (1,538,012,000) | (1,530,341,000) | (1,493,559,000) |
Selling, general and administrative expenses | (27,161,000) | (26,283,000) | (26,564,000) | (32,980,000) | (34,891,000) | (34,582,000) | (29,454,000) | (29,955,000) | (112,988,000) | (128,882,000) | (128,195,000) |
Gain on divested assets, net | 1,008,000 | 22,944,000 | 0 | 0 | 0 | 0 | 0 | 0 | 23,952,000 | 0 | 1,755,000 |
Impairment of assets | (195,079,000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total operating costs and expenses | (603,436,000) | (379,560,000) | (413,718,000) | (425,413,000) | (410,349,000) | (421,344,000) | (410,515,000) | (417,015,000) | (1,822,127,000) | (1,659,223,000) | (1,619,999,000) |
(Loss) income from operations | (174,729,000) | 46,900,000 | 18,381,000 | 11,539,000 | 26,367,000 | 5,160,000 | 19,148,000 | 20,510,000 | (97,909,000) | 71,185,000 | 114,764,000 |
Interest expense, net | (30,620,000) | (31,374,000) | (30,651,000) | ||||||||
Non-operating pension and other postretirment benefit (costs) income | (4,933,000) | 1,143,000 | |||||||||
Non-operating pension and other post employment benefit (costs) income | (3,447,000) | ||||||||||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | ||||||||
Earnings before income taxes | (133,462,000) | 40,954,000 | 80,666,000 | ||||||||
Income tax (provision) benefit | (10,305,000) | 56,385,000 | (31,112,000) | ||||||||
Net (loss) earnings | $ (187,772,000) | 34,444,000 | $ 6,961,000 | $ 2,600,000 | $ 80,924,000 | $ 863,000 | $ 8,037,000 | $ 7,515,000 | (143,767,000) | 97,339,000 | 49,554,000 |
Other comprehensive income, net of tax | (10,513,000) | 7,770,000 | 3,795,000 | ||||||||
Comprehensive income | (154,280,000) | 105,109,000 | 53,349,000 | ||||||||
Goodwill, Impairment Loss | (195,079,000) | 0 | 0 | ||||||||
Gain (Loss) on Disposition of Assets | $ 24,000,000 | 23,952,000 | |||||||||
Issuer | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 1,752,343,000 | 1,707,283,000 | 1,685,327,000 | ||||||||
Cost and expenses: | |||||||||||
Cost of sales | (1,583,009,000) | (1,525,645,000) | (1,466,623,000) | ||||||||
Selling, general and administrative expenses | (92,236,000) | (98,412,000) | (114,142,000) | ||||||||
Gain on divested assets, net | 1,755,000 | ||||||||||
Total operating costs and expenses | (1,870,324,000) | (1,624,057,000) | (1,579,010,000) | ||||||||
(Loss) income from operations | (117,981,000) | 83,226,000 | 106,317,000 | ||||||||
Interest expense, net | (30,115,000) | (30,820,000) | (30,462,000) | ||||||||
Non-operating pension and other postretirment benefit (costs) income | (4,933,000) | 1,143,000 | |||||||||
Non-operating pension and other post employment benefit (costs) income | (3,447,000) | ||||||||||
Equity in income (loss) of subsidiary | 18,301,000 | 11,911,000 | 5,331,000 | ||||||||
Earnings before income taxes | (153,029,000) | 53,549,000 | 72,408,000 | ||||||||
Income tax (provision) benefit | (5,240,000) | 34,250,000 | (26,966,000) | ||||||||
Net (loss) earnings | (139,968,000) | 99,710,000 | 50,773,000 | ||||||||
Other comprehensive income, net of tax | (10,513,000) | 7,770,000 | 3,795,000 | ||||||||
Comprehensive income | (150,481,000) | 107,480,000 | 54,568,000 | ||||||||
Goodwill, Impairment Loss | (195,079,000) | ||||||||||
Gain (Loss) on Disposition of Assets | 0 | ||||||||||
Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 194,914,000 | 242,222,000 | 287,952,000 | ||||||||
Cost and expenses: | |||||||||||
Cost of sales | (172,965,000) | (219,931,000) | (263,577,000) | ||||||||
Selling, general and administrative expenses | (20,752,000) | (30,470,000) | (14,053,000) | ||||||||
Gain on divested assets, net | 0 | ||||||||||
Total operating costs and expenses | (169,765,000) | (250,401,000) | (277,630,000) | ||||||||
(Loss) income from operations | 25,149,000 | (8,179,000) | 10,322,000 | ||||||||
Interest expense, net | (505,000) | (554,000) | (189,000) | ||||||||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | |||||||||
Non-operating pension and other post employment benefit (costs) income | 0 | ||||||||||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | ||||||||
Earnings before income taxes | 24,644,000 | (8,733,000) | 10,133,000 | ||||||||
Income tax (provision) benefit | (6,343,000) | 20,644,000 | (4,802,000) | ||||||||
Net (loss) earnings | 18,301,000 | 11,911,000 | 5,331,000 | ||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | 18,301,000 | 11,911,000 | 5,331,000 | ||||||||
Goodwill, Impairment Loss | 0 | ||||||||||
Gain (Loss) on Disposition of Assets | 23,952,000 | ||||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | (223,039,000) | (219,097,000) | (238,516,000) | ||||||||
Cost and expenses: | |||||||||||
Cost of sales | 217,962,000 | 215,235,000 | 236,641,000 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Gain on divested assets, net | 0 | 0 | |||||||||
Total operating costs and expenses | 217,962,000 | 215,235,000 | 236,641,000 | ||||||||
(Loss) income from operations | (5,077,000) | (3,862,000) | (1,875,000) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | |||||||||
Non-operating pension and other post employment benefit (costs) income | 0 | ||||||||||
Equity in income (loss) of subsidiary | (18,301,000) | (11,911,000) | (5,331,000) | ||||||||
Earnings before income taxes | (5,077,000) | (3,862,000) | (1,875,000) | ||||||||
Income tax (provision) benefit | 1,278,000 | 1,491,000 | 656,000 | ||||||||
Net (loss) earnings | (22,100,000) | (14,282,000) | (6,550,000) | ||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | (22,100,000) | $ (14,282,000) | $ (6,550,000) | ||||||||
Goodwill, Impairment Loss | $ 0 |
Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ 8,209 | $ (6,263) | $ 17,391 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 24,947 | 16,738 | 23,001 | $ 5,610 |
Current assets: | ||||
Cash and cash equivalents | 22,484 | 15,738 | 23,001 | |
Receivables, net | 145,519 | 142,065 | ||
Taxes receivable | 6,301 | 20,282 | ||
Inventories | 266,244 | 266,043 | ||
Other Assets, Current | 3,399 | 8,661 | ||
Total current assets | 443,947 | 452,789 | ||
Property, plant and equipment, net | 1,269,271 | 1,050,982 | ||
Goodwill | 35,074 | 244,161 | 244,283 | |
Intangible assets, net | 24,080 | 32,542 | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 15,746 | 21,778 | ||
TOTAL ASSETS | 1,788,118 | 1,802,252 | 1,684,342 | |
Debt, Current | 120,833 | 155,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 321,032 | 256,621 | ||
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,631 | ||
Total current liabilities | 449,295 | 419,252 | ||
Long-term debt | 671,292 | 570,524 | ||
Liability for pensions and other postretirement employee benefits | 78,191 | 72,469 | ||
Other long-term obligations | 38,977 | 43,275 | ||
Accrued taxes | 2,785 | 2,770 | ||
Deferred Tax Liabilities, Net, Noncurrent | 114,988 | 111,665 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 121,182 | 118,528 | ||
Liabilities | 1,361,722 | 1,226,818 | ||
Accumulated other comprehensive loss, net of tax | (67,348) | (43,983) | ||
Stockholders Equity Excluding Accumulated Other Comprehensive Income Loss | 493,744 | 619,417 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,788,118 | 1,802,252 | ||
Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 8,209 | (2,848) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 24,947 | 16,738 | 19,586 | 5,610 |
Current assets: | ||||
Cash and cash equivalents | 22,484 | 15,738 | ||
Receivables, net | 127,952 | 125,001 | ||
Taxes receivable | 16,634 | 20,242 | ||
Inventories | 222,960 | 228,311 | ||
Other Assets, Current | 3,346 | 8,587 | ||
Total current assets | 393,376 | 397,879 | ||
Property, plant and equipment, net | 1,192,716 | 936,659 | ||
Goodwill | 35,074 | 244,161 | ||
Intangible assets, net | 1,045 | 2,089 | ||
Intercompany receivable (payable) | (62,846) | (2,807) | ||
Investment in subsidiary | 175,301 | 157,000 | ||
Other assets, net | 14,839 | 21,413 | ||
TOTAL ASSETS | 1,749,505 | 1,756,394 | ||
Debt, Current | 120,833 | 155,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 299,715 | 235,439 | ||
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,631 | ||
Total current liabilities | 427,978 | 398,070 | ||
Long-term debt | 671,292 | 570,524 | ||
Liability for pensions and other postretirement employee benefits | 78,191 | 72,469 | ||
Other long-term obligations | 38,977 | 43,275 | ||
Accrued taxes | 1,918 | 1,928 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 104,753 | 94,694 | ||
Liabilities | 1,323,109 | 1,180,960 | ||
Accumulated other comprehensive loss, net of tax | (67,348) | (43,983) | ||
Stockholders Equity Excluding Accumulated Other Comprehensive Income Loss | 493,744 | 619,417 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,749,505 | 1,756,394 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | (3,415) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 3,415 | 0 |
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 17,567 | 17,064 | ||
Taxes receivable | 41 | 40 | ||
Inventories | 48,361 | 41,594 | ||
Other Assets, Current | 53 | 74 | ||
Total current assets | 66,022 | 58,772 | ||
Property, plant and equipment, net | 76,555 | 114,323 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 23,035 | 30,453 | ||
Intercompany receivable (payable) | 57,769 | (1,055) | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 2,618 | 2,696 | ||
TOTAL ASSETS | 225,999 | 205,189 | ||
Debt, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 31,691 | 21,182 | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | 31,691 | 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 | 867 | 842 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 18,140 | 26,165 | ||
Liabilities | 50,698 | 48,189 | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders Equity Excluding Accumulated Other Comprehensive Income Loss | 175,301 | 157,000 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 225,999 | 205,189 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Taxes receivable | (10,374) | 0 | ||
Inventories | (5,077) | (3,862) | ||
Other Assets, Current | 0 | 0 | ||
Total current assets | (15,451) | (3,862) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivable (payable) | 5,077 | 3,862 | ||
Investment in subsidiary | (175,301) | (157,000) | ||
Other assets, net | (1,711) | (2,331) | ||
TOTAL ASSETS | (187,386) | (159,331) | ||
Debt, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | (10,374) | 0 | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | (10,374) | 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 | (1,711) | (2,331) | ||
Liabilities | (12,085) | (2,331) | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders Equity Excluding Accumulated Other Comprehensive Income Loss | (175,301) | (157,000) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ (187,386) | $ (159,331) |
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net earnings (loss) | $ (187,772) | $ 34,444 | $ 6,961 | $ 2,600 | $ 80,924 | $ 863 | $ 8,037 | $ 7,515 | $ (143,767) | $ 97,339 | $ 49,554 | ||
Goodwill, Impairment Loss | 195,079 | 0 | 0 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 101,953 | 104,990 | 91,090 | ||||||||||
Equity-based compensation expense | 3,314 | 3,620 | 12,385 | ||||||||||
Impairment of assets | 195,079 | 0 | $ 0 | 0 | 0 | $ 0 | $ 0 | 0 | |||||
Deferred tax expense (benefit) | 7,084 | (40,589) | 18,327 | ||||||||||
Employee benefit plans | (116) | (4,371) | (1,979) | ||||||||||
Deferred issuance costs on debt | 1,356 | 1,199 | 1,242 | ||||||||||
Gain on divested assets, net | (25,510) | 0 | 0 | ||||||||||
Disposal of plant and equipment, net | (726) | (4,053) | (1,381) | ||||||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 146 | 1,750 | 758 | ||||||||||
Changes in working capital, net of acquisition | 16,200 | 21,761 | (3,462) | ||||||||||
Change in taxes receivable, net | 13,980 | (10,573) | 5,142 | ||||||||||
Other, net | (1,546) | (509) | (1,687) | ||||||||||
Net cash flows from operating activities | 168,899 | 178,670 | 172,751 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Additions to property, plant and equipment | (295,708) | (199,748) | (155,349) | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | (67,443) | ||||||||||
Proceeds from Divestiture of Businesses | $ 71,000 | 70,930 | |||||||||||
Proceeds from Sale of Productive Assets | 70,930 | 0 | 0 | ||||||||||
Payments for (Proceeds from) Other Investing Activities | 807 | 951 | 286 | ||||||||||
Net cash flows from investing activities | (223,971) | (198,797) | (222,506) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | 0 | (4,875) | (65,327) | ||||||||||
Proceeds from Short-term Debt | 630,848 | 298,308 | 1,273,959 | ||||||||||
Repayments of Short-term Debt | 565,015 | 278,308 | 1,138,959 | ||||||||||
Investment (to) from Parent | 0 | 0 | 0 | ||||||||||
Payments for debt issuance costs | (2,139) | (134) | (1,906) | ||||||||||
Payment of tax withholdings on equity-based payment arrangements | (413) | (1,127) | (933) | ||||||||||
Other, net | 0 | 0 | 312 | ||||||||||
Net cash flows from financing activities | 63,281 | 13,864 | 67,146 | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 17,391 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 8,209 | (6,263) | 17,391 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 15,738 | $ 23,001 | $ 23,001 | 15,738 | 23,001 | ||||||||
Cash, cash equivalents and restricted cash at end of period | 22,484 | 15,738 | 22,484 | 15,738 | 23,001 | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 24,947 | 16,738 | 24,947 | 16,738 | 23,001 | $ 5,610 | |||||||
Issuer | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net earnings (loss) | (139,968) | 99,710 | 50,773 | ||||||||||
Goodwill, Impairment Loss | 195,079 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 81,812 | 76,862 | 68,496 | ||||||||||
Equity-based compensation expense | 3,314 | 3,620 | 12,385 | ||||||||||
Deferred tax expense (benefit) | 15,019 | (16,957) | 18,860 | ||||||||||
Employee benefit plans | (116) | (4,371) | (1,979) | ||||||||||
Deferred issuance costs on debt | 1,199 | 1,356 | 1,242 | ||||||||||
Gain on divested assets, net | 0 | ||||||||||||
Disposal of plant and equipment, net | (727) | (512) | 781 | ||||||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 146 | 1,750 | 740 | ||||||||||
Changes in working capital, net of acquisition | 24,455 | 8,776 | 642 | ||||||||||
Change in taxes receivable, net | 3,607 | (5,099) | (1,078) | ||||||||||
Other, net | (1,790) | 2,585 | (1,904) | ||||||||||
Net cash flows from operating activities | 183,641 | 168,587 | 149,830 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Additions to property, plant and equipment | (293,766) | (193,864) | (145,579) | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (67,443) | ||||||||||||
Proceeds from Sale of Productive Assets | 70,930 | ||||||||||||
Payments for (Proceeds from) Other Investing Activities | 793 | 283 | 250 | ||||||||||
Net cash flows from investing activities | (222,043) | (193,581) | (212,772) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | (4,875) | (65,327) | |||||||||||
Proceeds from Short-term Debt | 630,848 | 298,308 | 1,273,959 | ||||||||||
Repayments of Short-term Debt | 565,015 | 278,308 | 1,138,959 | ||||||||||
Investment (to) from Parent | (16,670) | 8,282 | 9,772 | ||||||||||
Payments for debt issuance costs | (2,139) | (134) | (1,906) | ||||||||||
Payment of tax withholdings on equity-based payment arrangements | (413) | (1,127) | (933) | ||||||||||
Other, net | 312 | ||||||||||||
Net cash flows from financing activities | 46,611 | 22,146 | 76,918 | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 13,976 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 8,209 | (2,848) | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 15,738 | 15,738 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | 22,484 | 15,738 | 22,484 | 15,738 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 24,947 | 16,738 | 24,947 | 16,738 | 19,586 | 5,610 | |||||||
Guarantor Subsidiaries | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net earnings (loss) | 18,301 | 11,911 | 5,331 | ||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 20,141 | 28,128 | 22,594 | ||||||||||
Equity-based compensation expense | 0 | 0 | 0 | ||||||||||
Deferred tax expense (benefit) | (7,935) | (23,632) | 605 | ||||||||||
Employee benefit plans | 0 | 0 | 0 | ||||||||||
Deferred issuance costs on debt | 0 | 0 | 0 | ||||||||||
Gain on divested assets, net | (25,510) | ||||||||||||
Disposal of plant and equipment, net | 1 | (3,541) | (600) | ||||||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | 0 | (18) | ||||||||||
Changes in working capital, net of acquisition | 904 | 5,529 | 774 | ||||||||||
Change in taxes receivable, net | (1) | (5) | (1,405) | ||||||||||
Other, net | 244 | (3,094) | (921) | ||||||||||
Net cash flows from operating activities | 6,143 | 22,378 | 27,596 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Additions to property, plant and equipment | (1,942) | (5,884) | (9,770) | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||
Proceeds from Divestiture of Businesses | 0 | ||||||||||||
Payments for (Proceeds from) Other Investing Activities | 14 | 668 | 36 | ||||||||||
Net cash flows from investing activities | (1,928) | (5,216) | (9,734) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | 0 | 0 | |||||||||||
Proceeds from Short-term Debt | 0 | 0 | 0 | ||||||||||
Repayments of Short-term Debt | 0 | 0 | 0 | ||||||||||
Investment (to) from Parent | (4,215) | (20,577) | (14,447) | ||||||||||
Payments for debt issuance costs | 0 | 0 | 0 | ||||||||||
Payment of tax withholdings on equity-based payment arrangements | 0 | 0 | 0 | ||||||||||
Other, net | 0 | ||||||||||||
Net cash flows from financing activities | (4,215) | (20,577) | (14,447) | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 3,415 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | (3,415) | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 | 0 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | 3,415 | 0 | |||||||
Consolidation, Eliminations [Member] | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net earnings (loss) | (22,100) | (14,282) | (6,550) | ||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||
Equity-based compensation expense | 0 | 0 | 0 | ||||||||||
Deferred tax expense (benefit) | 0 | 0 | (1,138) | ||||||||||
Employee benefit plans | 0 | 0 | 0 | ||||||||||
Deferred issuance costs on debt | $ 0 | 0 | 0 | ||||||||||
Gain on divested assets, net | 0 | ||||||||||||
Disposal of plant and equipment, net | 0 | 0 | 0 | ||||||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | 0 | 0 | ||||||||||
Changes in working capital, net of acquisition | (9,159) | 7,456 | (3,594) | ||||||||||
Change in taxes receivable, net | 10,374 | (5,469) | (5,469) | ||||||||||
Other, net | 0 | 0 | 1,138 | ||||||||||
Net cash flows from operating activities | (20,885) | (12,295) | (4,675) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Additions to property, plant and equipment | 0 | 0 | 0 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||||||||||||
Proceeds from Divestiture of Businesses | 0 | ||||||||||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | 0 | ||||||||||
Net cash flows from investing activities | 0 | 0 | 0 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | 0 | 0 | |||||||||||
Proceeds from Short-term Debt | 0 | 0 | 0 | ||||||||||
Repayments of Short-term Debt | 0 | 0 | 0 | ||||||||||
Investment (to) from Parent | 20,885 | 12,295 | 4,675 | ||||||||||
Payments for debt issuance costs | 0 | 0 | 0 | ||||||||||
Payment of tax withholdings on equity-based payment arrangements | 0 | 0 | 0 | ||||||||||
Other, net | 0 | ||||||||||||
Net cash flows from financing activities | 20,885 | 12,295 | 4,675 | ||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 0 | 0 | |||||||||||
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 | 0 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Business Interruption and Insurance Recovery (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Business Interruption and Insurance Recovery [Abstract] | |||||
Operating Insurance and Claims Costs, Production | $ 4.4 | $ 8.5 | |||
Insurance deductible | 2.5 | ||||
Deductible and claims costs | $ 3.5 | 3.5 | |||
Property insurance claim payment | $ 1.9 | $ 2.9 | $ 5.0 | $ 2.9 | $ 5.0 |
Paper machine downtime in days | 17 days | ||||
Insurance claim payment, Las Vegas facility | $ 1.4 | $ 1.5 | $ 2.9 |
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