10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2016

or

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

For the transition period from                      to                     

96 South George Street, Suite 520

York, Pennsylvania 17401

(Address of principal executive offices)

(717) 225-4711

(Registrant’s telephone number, including area code)

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

N/A

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

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

Common Stock outstanding on April 30, 2016 totaled 43,504,777 shares.

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

REPORT ON FORM 10-Q

For the QUARTERLY PERIOD ENDED

March 31, 2016

Table of Contents

		Page
PART I - FINANCIAL INFORMATION
Item 1	Financial Statements
	Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015 (unaudited)		2
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and 2015 (unaudited)		3
	Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2015 (unaudited)		5
	Notes to Condensed Consolidated Financial Statements (unaudited)
	1. Organization		6
	2. Accounting Policies		6
	3. Earnings Per Share		7
	4. Accumulated Other Comprehensive Income		7
	5. Income Taxes		8
	6. Stock-based Compensation		9
	7. Retirement Plans and Other Post-Retirement Benefits		10

		Page
	8. Inventories		10
	9. Long-term Debt		11
	10. Asset Retirement Obligations		12
	11. Fair Value of Financial Instruments		12
	12. Financial Derivatives and Hedging Activities		12
	13. Commitments, Contingencies and Legal Proceedings		14
	14. Segment Information		19
	15. Condensed Consolidating Financial Statements		20
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		25
Item 3	Quantitative and Qualitative Disclosures About Market Risks		32
Item 4	Controls and Procedures		32
PART II – OTHER INFORMATION
Item 6	Exhibits		33
	SIGNATURES		33

PART I

Item 1 – Financial Statements

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three months ended March 31
In thousands, except per share	2016			2015
Net sales	$	402,218		$	417,469
Energy and related sales, net		666			2,068
Total revenues		402,884			419,537
Costs of products sold		345,041			367,429
Gross profit		57,843			52,108
Selling, general and administrative expenses		31,858			31,272
Losses (gains) on dispositions of plant, equipment and timberlands, net		24			(2,654	)
Operating income		25,961			23,490
Non-operating income (expense)
Interest expense		(4,116	)		(4,508	)
Interest income		91			65
Other, net		(700	)		(187	)
Total non-operating expense		(4,725	)		(4,630	)
Income before income taxes		21,236			18,860
Income tax provision		5,068			4,935
Net income	$	16,168		$	13,925
Earnings per share
Basic	$	0.37		$	0.32
Diluted		0.37			0.32
Cash dividends declared per common share	$	0.125		$	0.12
Weighted average shares outstanding
Basic		43,521			43,252
Diluted		43,871			43,949

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

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GLATFELTER

3.31.16 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three months ended March 31
In thousands	2016		2015
Net income	$	16,168	$	13,925
Foreign currency translation adjustments		13,419		(41,337	)
Net change in:
Deferred gains on cash flow hedges, net of taxes of $57 and $(1,063), respectively		66		2,766
Unrecognized retirement obligations, net of taxes of $(1,367) and $(2,011), respectively		2,257		3,286
Other comprehensive income (loss)		15,742		(35,285	)
Comprehensive income (loss)	$	31,910	$	(21,360	)

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

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GLATFELTER

3.31.16 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	March 31			December 31
In thousands	2016			2015
Assets
Cash and cash equivalents	$	70,262		$	105,304
Accounts receivable, net		167,456			167,199
Inventories		255,503			247,214
Prepaid expenses and other current assets		35,435			32,650
Total current assets		528,656			552,367
Plant, equipment and timberlands, net		735,923			698,864
Goodwill		79,141			76,056
Intangible assets		64,448			63,057
Other assets		113,272			110,072
Total assets	$	1,521,440		$	1,500,416
Liabilities and Shareholders’ Equity
Current portion of long-term debt	$	7,704		$	7,366
Accounts payable		158,255			172,735
Dividends payable		5,440			5,231
Environmental liabilities		11,890			12,544
Other current liabilities		106,054			106,444
Total current liabilities		289,343			304,320
Long-term debt		356,395			353,296
Deferred income taxes		81,640			76,458
Other long-term liabilities		103,891			103,095
Total liabilities		831,269			837,169
Commitments and contingencies		—			—
Shareholders’ equity
Common stock		544			544
Capital in excess of par value		54,087			54,912
Retained earnings		973,873			963,143
Accumulated other comprehensive loss		(174,744	)		(190,486	)
		853,760			828,113
Less cost of common stock in treasury		(163,589	)		(164,866	)
Total shareholders’ equity		690,171			663,247
Total liabilities and shareholders’ equity	$	1,521,440		$	1,500,416

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

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GLATFELTER

3.31.16 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three months ended March 31
In thousands	2016			2015
Operating activities
Net income	$	16,168		$	13,925
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization		16,646			15,975
Amortization of debt issue costs		290			315
Pension expense, net of unfunded benefits paid		767			2,463
Deferred income tax benefit		2,436			1,086
Losses (gains) on dispositions of plant, equipment and timberlands, net		24			(2,654	)
Share-based compensation		1,217			1,747
Change in operating assets and liabilities
Accounts receivable		2,376			(13,968	)
Inventories		(5,888	)		(4,732	)
Prepaid and other current assets		(1,980	)		(2,269	)
Accounts payable		(15,759	)		(8,067	)
Accruals and other current liabilities		(4,897	)		(3,492	)
Other		41			1,826
Net cash provided by operating activities		11,441			2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(43,294	)		(21,749	)
Proceeds from disposals of plant, equipment and timberlands, net		33			2,726
Other		(300	)		(1,600	)
Net cash used by investing activities		(43,561	)		(20,623	)
Financing activities
Payments of borrowing costs		(51	)		(1,008	)
Repayment of term loans		(1,926	)		—
Payments of dividends		(5,231	)		(4,774	)
Proceeds from government grants		3,861			—
Payments related to share-based compensation awards and other		(751	)		(1,408	)
Net cash used by financing activities		(4,098	)		(7,190	)
Effect of exchange rate changes on cash		1,176			(2,609	)
Net decrease in cash and cash equivalents		(35,042	)		(28,267	)
Cash and cash equivalents at the beginning of period		105,304			99,837
Cash and cash equivalents at the end of period	$	70,262		$	71,570
Supplemental cash flow information
Cash paid for:
Interest, net of amounts capitalized	$	474		$	818
Income taxes, net		5,188			5,321

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

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GLATFELTER

3.31.16 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. ORGANIZATION

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

2. ACCOUNTING POLICIES

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2015 Annual Report on Form 10-K.

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

Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment

Accounting designed to simplify certain aspects of accounting for share-based awards. The new ASU requires entities to recognize as a component of income tax expense all excess tax benefits or deficiencies arising from the difference between compensation cost recognized and the intrinsic value at the time an option is exercised or, in the case of restricted stock and similar awards, the fair value upon vesting of an award. Previously such differences were recognized in additional paid in capital as part of an “APIC pool.” In addition, the ASU also requires entities to exclude excess tax benefits and tax deficiencies from the calculation of common share equivalents for purposes of calculating earnings per share. The new standard is required to be adopted either prospectively or retrospectively in the first quarter of 2017 and early adoption is permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require organizations such as us that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will be effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are in the process of assessing the impact this standard will have on us and expect to follow a modified retrospective method provided for under the standard.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted retrospectively for fiscal years beginning after December 15, 2017 and early adoption is permitted only for reporting periods beginning after December 31, 2016. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

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GLATFELTER

3.31.16 Form 10-Q

3. EARNINGS PER SHARE

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

	Three months ended March 31
In thousands, except per share	2016		2015
Net income	$	16,168	$	13,925
Weighted average common shares outstanding used in basic EPS		43,521		43,252
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		350		697
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,871		43,949
Earnings per share
Basic	$	0.37	$	0.32
Diluted		0.37		0.32

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

	March 31
In thousands	2016		2015
Three months ended		1,694		690

4. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months ended March 31, 2016 and 2015.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2016	$	(73,041	)	$	(225	)	$	(120,714	)	$	3,494		$	(190,486	)
Other comprehensive income before reclassifications (net of tax)		13,419			252			—			—			13,671
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(186	)		2,315			(58	)		2,071
Net current period other comprehensive income (loss)		13,419			66			2,315			(58	)		15,742
Balance at March 31, 2016	$	(59,622	)	$	(159	)	$	(118,399	)	$	3,436		$	(174,744	)
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(41,337	)		3,394			—			—			(37,943	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(628	)		3,266			20			2,658
Net current period other comprehensive income (loss)		(41,337	)		2,766			3,266			20			(35,285	)
Balance at March 31, 2015	$	(75,561	)	$	5,122		$	(116,994	)	$	(2,722	)	$	(190,155	)

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GLATFELTER

3.31.16 Form 10-Q

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended March 31
In thousands	2016			2015
Description							Line Item in Statements of Income
Cash flow hedges (Note 12)
Gains on cash flow hedges	$	(298	)	$	(873	)	Costs of products sold
Tax expense		112			245		Income tax provision
Net of tax		(186	)		(628	)
Retirement plan obligations (Note 7)
Amortization of deferred benefit pension plan items
Prior service costs		503			567		Costs of products sold
		171			193		Selling, general and administrative
Actuarial losses		2,281			3,366		Costs of products sold
		773			1,140		Selling, general and administrative
		3,728			5,266
Tax benefit		(1,413	)		(2,000	)	Income tax provision
Net of tax		2,315			3,266
Amortization of deferred benefit other plan items
Prior service costs		(37	)		(57	)	Costs of products sold
		(8	)		(13	)	Selling, general and administrative
Actuarial losses		(42	)		82		Costs of products sold
		(9	)		18		Selling, general and administrative
		(96	)		30
Tax provision (benefit)		38			(10	)	Income tax provision
Net of tax		(58	)		20
Total reclassifications, net of tax	$	2,071		$	2,658

5. INCOME TAXES

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

As of March 31, 2016 and December 31, 2015, we had $12.7 million and $12.2 million, respectively, of gross unrecognized tax benefits. As of March 31, 2016, if such benefits were to be recognized, approximately $11.2 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

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

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

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2015		N/A
State		2011 - 2015		2011 - 2014
Canada (1)		2010 - 2015		N/A
Germany (1)		2012 - 2015		2007 - 2011
France		2013 - 2015		2011 - 2012
United Kingdom		2014 - 2015		N/A
Philippines		2012, 2015		2013, 2014

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

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of

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GLATFELTER

3.31.16 Form 10-Q

matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. Substantially all of this range relates to tax positions taken in Germany.

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

	Three months ended March 31
In millions	2016		2015
Interest expense	$	0.1	$	0.1
Penalties		—		—
	March 31		December 31
	2016		2015
Accrued interest payable	$	0.7	$	0.6

6. STOCK-BASED COMPENSATION

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

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

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

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

Units	2016			2015
Balance at January 1,		674,523			888,942
Granted		220,105			119,882
Cancelled/forfeited		(116,640	)		(67,179	)
Shares delivered		(126,914	)		(178,467	)
Balance at March 31,		651,074			763,178

The amount granted in 2016 and 2015 includes PSAs of 191,548 and 100,801 respectively, exclusive of reinvested dividends.

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GLATFELTER

3.31.16 Form 10-Q

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

	March 31
In thousands	2016		2015
Three months ended	$	467	$	367

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

The following table sets forth information related to outstanding SOSARS.

	2016					2015
	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
SOSARS
Outstanding at January 1,		2,199,742		$	17.82		1,864,707		$	16.20
Granted		724,914			17.47		406,142			24.94
Exercised		—			—		(58,343	)		13.52
Canceled / forfeited		(24,712	)		26.90		—			—
Outstanding at March 31,		2,899,944		$	17.65		2,212,506		$	17.88
SOSAR Grants
Weighted average grant date fair value per share	$	4.04				$	7.54
Aggregate grant date fair value (in thousands)	$	2,919				$	3,063
Black-Scholes assumptions
Dividend yield		2.87	%				1.92	%
Risk free rate of return		1.34	%				1.64	%
Volatility		32.01	%				36.48	%
Expected life		6 yrs					6 yrs

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

	March 31
In thousands	2016		2015
Three months ended	$	732	$	589

7. RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

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

	Three months ended March 31
In thousands	2016			2015
Pension Benefits
Service cost	$	2,730		$	3,136
Interest cost		6,087			5,950
Expected return on plan assets		(11,386	)		(11,543	)
Amortization of prior service cost		674			760
Amortization of unrecognized loss		3,054			4,506
Net periodic benefit cost	$	1,159		$	2,809
Other Benefits
Service cost	$	323		$	413
Interest cost		540			563
Amortization of prior service cost		(45	)		(70	)
Amortization of unrecognized (gain)/loss		(51	)		100
Net periodic benefit cost	$	767		$	1,006

8. INVENTORIES

Inventories, net of reserves, were as follows:

	March 31		December 31
In thousands	2016		2015
Raw materials	$	64,134	$	60,098
In-process and finished		118,134		115,874
Supplies		73,235		71,242
Total	$	255,503	$	247,214

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GLATFELTER

3.31.16 Form 10-Q

9. LONG-TERM DEBT

Long-term debt is summarized as follows:

	March 31			December 31
In thousands	2016			2015
Revolving credit facility, due Mar. 2020	$	61,482		$	58,792
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,166			10,109
2.05% Term Loan, due Mar. 2023		42,539			42,130
1.55% Term Loan, due Sep. 2025		2,969			2,839
Total long-term debt		367,156			363,870
Less current portion		(7,704	)		(7,366	)
Unamortized deferred issuance costs		(3,057	)		(3,208	)
Long-term debt, net of current portion	$	356,395		$	353,296

The amount set forth for Long-term debt, net of current portion as of December 31, 2015, has been restated to retroactively adopt ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs to be presented as a direct deduction from the carrying value of the related debt instrument rather than as a deferred asset except for costs associated with a revolving line of credit. We adopted this standard in the first quarter of 2016 retroactive to December 31, 2015.

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

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

The Revolving Credit Facility contains a number of customary covenants for financings of this type that,

among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); and ii) a consolidated EBITDA to interest expense ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of March 31, 2016, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 1.8x. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the credit facility.

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

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

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of March 31, 2016, we met all of the requirements of our debt covenants.

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3.31.16 Form 10-Q

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, entered into a series of borrowing agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”) as summarized below:

Amounts in thousands	Original Principal		Interest Rate			Maturity
Borrowing date
Apr. 11, 2013	€	42,700		2.05	%		Mar. 2023
Sep. 4, 2014		10,000		2.40	%		Jun. 2022
Oct. 10, 2015		2,608		1.55	%		Sep. 2025

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

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries. All such obligations are recorded in these condensed consolidated financial statements.

Letters of credit issued to us by certain financial institutions totaled $5.1 million and $5.3 million as of March 31, 2016 and December 31, 2015, respectively. The letters of credit, which reduce amounts available under our revolving credit facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

10. ASSET RETIREMENT OBLIGATION

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

Following is a summary of activity recorded during the first three months of 2016 and 2015:

In thousands	2016		2015
Balance at January 1,	$	419	$	4,114
Accretion		—		29
Payments		—		(419	)
Gain		—		(107	)
Balance at March 31,	$	419	$	3,617

The amount set forth above as of March 31, 2016, is recorded in other current liabilities in the accompanying condensed consolidated balance sheet.

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

	March 31, 2016				December 31, 2015
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	61,482	$	61,482	$	58,792	$	58,792
Fixed-rate bonds		250,000		248,438		250,000		250,938
2.40% Term loan		10,166		9,911		10,109		10,535
2.05% Term loan		42,539		40,483		42,130		42,886
1.55% Term loan		2,969		2,496		2,839		2,524
Total	$	367,156	$	362,810	$	363,870	$	365,675

As of March 31, 2016, and December 31, 2015, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 12.

12. FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

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

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3.31.16 Form 10-Q

Derivatives Designated as Hedging Instruments - Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs or capital expenditures expected to be incurred over a maximum of twenty-eight months. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date.

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

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
Euro / British Pound		11,370		10,527
Sell/Buy - buy notional
Euro / Philippine Peso		849,340		758,634
British Pound / Philippine Peso		592,719		542,063
Euro / U.S. Dollar		45,323		51,433
U.S. Dollar / Canadian Dollar		35,056		34,649
U.S. Dollar / Euro		23,580		—

These contracts have maturities of twenty-eight months or less.

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

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound		7,000		10,000
British Pound / Euro		3,500		3,500
Sell/Buy - buy notional
Euro / U.S. Dollar		7,500		12,500
British Pound / Euro		10,500		13,500

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

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

In thousands	March 31 2016		December 31 2015		March 31 2016		December 31 2015
	Prepaid Expenses and Other				Other
Balance sheet caption	Current Assets				Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	1,160	$	955	$	1,416	$	1,545
Not designated as hedging:
Forward foreign currency exchange contracts	$	92	$	68	$	—	$	49

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

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and

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3.31.16 Form 10-Q

the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended March 31
In thousands	2016			2015
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	298		$	873
Ineffective portion – other – net		(403	)		350
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	589		$	720

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

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

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

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

In thousands	2016			2015
Balance at January 1,	$	(178	)	$	3,282
Deferred gains on cash flow hedges		307			4,703
Reclassified to earnings		(298	)		(873	)
Balance at March 31,	$	(169	)	$	7,112

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

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

13. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River - Neenah, Wisconsin

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

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

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

The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”,

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3.31.16 Form 10-Q

including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

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

For OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions from 2007 through 2014 were funded primarily by NCR and its indemnitors, including Appvion, Inc. In 2015, we placed certain covering and capping in OU4b as a response to the Government’s demands at a cost of $9.7 million. Georgia Pacific and NCR funded work in 2015 pursuant to a proposed consent decree that the United States did not move to enter until April 12, 2016; the court has not yet ruled on that motion. Work is scheduled to continue in OU2-5 through 2018, with monitoring and maintenance to follow.

As more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $575 million for OU2-5 prior to the 2016 remediation season.

In 2016, the Governments again seek approximately $100 million of work to be completed in OU2-5. The exact work and a more precise estimate of its cost depend on certain unresolved technical issues. We have begun an effort to place the final layer on certain caps. We do not yet know whether we will undertake additional work in 2016 however, we expect to spend less than $10 million.

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

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

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

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

In addition, we take the position that the “single site” theory on which the courts held us responsible for cleaning up parts of the Site far downstream of our former mill should, if applied to NCR, make it liable for costs incurred in OU1. The district court agreed with us in an order dated March 3, 2015. On March 31, 2015, NCR sought review of that order by the court of appeals which review was denied on May 1, 2015.

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3.31.16 Form 10-Q

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party, then Appvion may have a right to recover those costs under CERCLA. We and Appvion disagree over the proper treatment of amounts that Appvion incurred while a PRP that were also subject to a cost-sharing agreement with NCR; we contend Appvion may not recover costs it was contractually obligated to incur, that it has no other costs, and if it did, we would have a right to contribution of any recovery against NCR and others. However, Appvion takes a contrary position and claims approximately $200 million.

The district court has established a schedule for the Whiting Litigation under which it would hold a trial beginning in March 2017 on remaining issues.

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

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

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

On remand, the district court issued an opinion on October 19, 2015, holding that NCR had not shown a reasonable basis for apportionment of its liability for the site. On January 25, 2016, the court denied NCR’s request to certify that decision for immediate appeal.

As described below, the United States has withdrawn its natural resources damages claim against us. The Governments’ remaining claims principally consist of claims for unreimbursed costs. We do not know the full extent of those claimed costs. The remaining issues in the Government Action are set for trial to commence three days after conclusion of the 2017 trial in the Whiting Litigation.

Interim Funding of Ongoing Work. As described above, the court of appeals vacated the allocation judgment in the Whiting Litigation on September 25, 2014, but neither court has since replaced that allocation with any other. The 2007 UAO requires the PRPs to submit annual remediation work plans. For 2015, the EPA approved the 2015 Work Plan for $100 million of remediation activities. NCR, GP, and we were not able to reach agreement on a division of the costs of that work on an interim basis, subject to reallocation in the Whiting Litigation. NCR and GP entered into a proposed consent decree with the United States under which they agreed to fund certain work estimated to cost approximately $67 million in 2015, and they would not be responsible for completing the remainder of the work in 2015, estimated to cost approximately $33 million. However, NCR and GP did not complete all of the work assigned to them under the consent decree. The United States did not move to enter that consent decree until April 12, 2016, and the court has not yet ruled on that motion. Through the issuance of the 2015 Work Plan the EPA assigned to us those remaining tasks. Under the proposed consent decree, all parties would remain jointly and severally liable for work in the 2015 Work Plan not completed in 2015, except for a small amount of work upstream of the area for which GP is responsible. We contracted for remediation work in OU4 at a total cost of $9.7 million, an amount of work less than the amount assigned to us in the 2015 Work Plan. We anticipate that the amount of work performed by us in 2015 satisfied our share of the obligation if NCR and GP perform the work assigned to them in the 2015 Work Plan. The United States disagrees. We cannot predict the outcome of these disagreements or any possible resulting litigation.

The 2016 Work Plan similarly calls for completion of work that is estimated to cost in the range of $100 million. However, unlike the 2015 Work Plan, it does not allocate the work among NCR, GP, and us. The parties have again not come to agreement on an interim allocation among them of responsibility for completing the work called for by the 2016 Work Plan. NCR and GP have begun certain

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3.31.16 Form 10-Q

work.

Because we may not be able to obtain an agreement with the other parties or a ruling in litigation defining our obligation to contribute to work in 2016 prior to the time that work would have to be implemented, it is conceivable that we may have to choose an amount of work that we believe satisfies any obligation we may have to complete work in 2016, which selection we will have to defend after the fact. We expect to spend less than $10 million in connection with the 2016 Work Plan. In addition it is conceivable we may be in the same position with respect to work in OU2-5 beyond the 2016 season. Although we are unable to determine with any degree of certainty the amount we may be required to complete or to fund, those amounts could be significant. Any amounts we pay or any other party pays in the interim may be subject to reallocation when the Whiting Litigation is resolved.

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

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

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

	Three months ended March 31
In thousands	2016			2015
Balance at January 1,	$	17,105		$	16,223
Payments		(658	)		(16	)
Accruals		—			—
Balance at March 31,	$	16,447		$	16,207

The payments set forth above represent cash paid towards completion of remediation activities in connection with the 2015 Work Plan. Our reserve as of March 31, 2016 includes our estimate of costs to be incurred for remediation work, pending clarity from the Whiting litigation. If we are unsuccessful in the allocation litigation or in the enforcement litigation described above, we may be required to record additional charges and such charges could be significant.

Of our total reserve for the Fox River, $11.9 million is recorded in the accompanying March 31, 2016 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.”

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

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

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

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

Range of Reasonably Possible Outcomes. Based on our analysis of all available information, including but not limited to decisions of the courts, official documents such as records of decision, as well as discussions with legal counsel and cost estimates for work to be performed at the Site, and substantially dependent on the resolution of the allocation issues discussed above, we believe it is reasonably possible that our costs associated with the Fox River matter could exceed the aggregate amounts accrued for the Fox River matter by amounts ranging from

insignificant to $175 million. We believe the likelihood of an outcome in the upper end of the monetary range is less than other possible outcomes within the range and the possibility of an outcome in excess of the upper end of the monetary range is remote.

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

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

- 18 -

GLATFELTER

3.31.16 Form 10-Q

14. SEGMENT INFORMATION

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

Three months ended March 31 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2016		2015		2016		2015		2016		2015		2016			2015			2016			2015
Net sales	$	123.5	$	135.3	$	60.8	$	62.3	$	217.9	$	219.9	$	—		$	—		$	402.2		$	417.5
Energy and related sales, net		—		—		—		—		0.7		2.1		—			—			0.7			2.1
Total revenue		123.5		135.3		60.8		62.3		218.6		222.0		—			—			402.9			419.5
Cost of products sold		101.2		109.0		52.2		55.1		191.1		200.4		0.5			2.9			345.0			367.4
Gross profit (loss)		22.3		26.3		8.6		7.2		27.5		21.6		(0.5	)		(2.9	)		57.8			52.1
SG&A		11.1		11.6		2.0		1.9		12.5		12.1		6.3			5.6			31.9			31.3
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		—			(2.7	)		—			(2.7	)
Total operating income (loss)		11.2		14.7		6.6		5.3		15.0		9.5		(6.8	)		(5.8	)		26.0			23.5
Non-operating expense		—		—		—		—		—		—		(4.7	)		(4.6	)		(4.7	)		(4.6	)
Income (loss) before income taxes	$	11.2	$	14.7	$	6.6	$	5.3	$	15.0	$	9.5	$	(11.5	)	$	(10.4	)	$	21.2		$	18.9
Supplementary Data
Net tons sold (thousands)		36.9		38.0		24.5		24.1		205.8		198.7		—			—			267.2			260.7
Depreciation, depletion and amortization	$	7.1	$	6.7	$	2.3	$	2.2	$	6.7	$	6.6	$	0.5		$	0.5		$	16.6		$	16.0
Capital expenditures		6.3		5.9		14.7		1.3		22.0		13.2		0.3			1.3			43.3			21.7

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

Business Units Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the business unit are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the Business Unit Performance table.

Management evaluates results of operations of the business units before pension expense, certain corporate level costs, and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of business unit results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

- 19 -

GLATFELTER

3.31.16 Form 10-Q

15. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

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

The following presents our condensed consolidating statements of income, including comprehensive income and cash flows for the three months ended March 31, 2016 and 2015 and our condensed consolidating balance sheets as of March 31, 2016 and December 31, 2015. The condensed consolidating financial statements set forth below include the addition of CFNA and GAMNA as guarantors during 2015 and all prior periods have been restated to retroactively reflect this change.

Condensed Consolidating Statement of Income for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	217,888		$	18,646		$	184,466		$	(18,782	)	$	402,218
Energy and related sales, net		666			—			—			—			666
Total revenues		218,554			18,646			184,466			(18,782	)		402,884
Costs of products sold		191,959			18,050			153,814			(18,782	)		345,041
Gross profit		26,595			596			30,652			—			57,843
Selling, general and administrative expenses		18,445			(185	)		13,598			—			31,858
Loss on dispositions of plant, equipment and timberlands, net		2			—			22			—			24
Operating income		8,148			781			17,032			—			25,961
Other non-operating income (expense)
Interest expense		(4,415	)		—			(787	)		1,086			(4,116	)
Interest income		181			992			4			(1,086	)		91
Equity in earnings of subsidiaries		12,872			11,754			—			(24,626	)		—
Other, net		(542	)		20			(178	)		—			(700	)
Total other non-operating income (expense)		8,096			12,766			(961	)		(24,626	)		(4,725	)
Income before income taxes		16,244			13,547			16,071			(24,626	)		21,236
Income tax provision		76			675			4,317			—			5,068
Net income		16,168			12,872			11,754			(24,626	)		16,168
Other comprehensive income		15,742			13,553			13,117			(26,670	)		15,742
Comprehensive income	$	31,910		$	26,425		$	24,871		$	(51,296	)	$	31,910

- 20 -

GLATFELTER

3.31.16 Form 10-Q

Condensed Consolidating Statement of Income for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	219,876		$	20,150		$	198,098		$	(20,655	)	$	417,469
Energy and related sales, net		2,068			—			—			—			2,068
Total revenues		221,944			20,150			198,098			(20,655	)		419,537
Costs of products sold		203,682			19,334			165,068			(20,655	)		367,429
Gross profit		18,262			816			33,030			—			52,108
Selling, general and administrative expenses		17,182			497			13,593			—			31,272
Gains on dispositions of plant, equipment and timberlands, net		(1,471	)		(1,183	)		—			—			(2,654	)
Operating income		2,551			1,502			19,437			—			23,490
Other non-operating income (expense)
Interest expense		(4,817	)		—			(6,394	)		6,703			(4,508	)
Interest income		163			6,599			5			(6,702	)		65
Equity in earnings of subsidiaries		17,084			10,194			—			(27,278	)		—
Other, net		(715	)		(130	)		659			(1	)		(187	)
Total other non-operating income (expense)		11,715			16,663			(5,730	)		(27,278	)		(4,630	)
Income before income taxes		14,266			18,165			13,707			(27,278	)		18,860
Income tax provision		341			1,081			3,513			—			4,935
Net income		13,925			17,084			10,194			(27,278	)		13,925
Other comprehensive income (loss)		(35,285	)		(38,550	)		38,848			(298	)		(35,285	)
Comprehensive income (loss)	$	(21,360	)	$	(21,466	)	$	49,042		$	(27,576	)	$	(21,360	)

- 21 -

GLATFELTER

3.31.16 Form 10-Q

Condensed Consolidating Balance Sheet as of March 31, 2016

In thousands	Parent Company		Guarantors		Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	29,155	$	5,995	$	35,112	$	—		$	70,262
Other current assets		199,170		247,480		257,534		(245,790	)		458,394
Plant, equipment and timberlands, net		305,347		14,782		415,794		—			735,923
Investments in subsidiaries		780,955		532,528		—		(1,313,483	)		—
Other assets		109,815		—		147,046		—			256,861
Total assets	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440
Liabilities and Shareholders’ Equity
Current liabilities	$	369,019	$	19,391	$	146,722	$	(245,789	)	$	289,343
Long-term debt		247,228		—		109,167		—			356,395
Deferred income taxes		31,118		125		50,397		—			81,640
Other long-term liabilities		86,905		314		16,672		—			103,891
Total liabilities		734,270		19,830		322,958		(245,789	)		831,269
Shareholders’ equity		690,172		780,955		532,528		(1,313,484	)		690,171
Total liabilities and shareholders’ equity	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440

Condensed Consolidating Balance Sheet as of December 31, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	59,130	$	465		$	45,709	$	—		$	105,304
Other current assets		199,690		238,515			239,367		(230,509	)		447,063
Plant, equipment and timberlands, net		286,334		1,114			411,416		—			698,864
Investments in subsidiaries		737,450		507,116			—		(1,244,566	)		—
Other assets		106,586		—			142,599		—			249,185
Total assets	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416
Liabilities and Shareholders’ Equity
Current liabilities	$	363,037	$	9,725		$	162,081	$	(230,523	)	$	304,320
Long-term debt		247,075		—			106,221		—			353,296
Deferred income taxes		28,561		(79	)		47,976		—			76,458
Other long-term liabilities		87,270		—			15,825		—			103,095
Total liabilities		725,943		9,646			332,103		(230,523	)		837,169
Shareholders’ equity		663,247		737,564			506,988		(1,244,552	)		663,247
Total liabilities and shareholders’ equity	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416

- 22 -

GLATFELTER

3.31.16 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	10,563		$	(74	)	$	952		$	—		$	11,441
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(22,297	)		(13,686	)		(7,311	)		—			(43,294	)
Proceeds from disposal plant, equipment and timberlands, net		21			—			12			—			33
Repayments from intercompany loans		—			4,000			—			(4,000	)		—
Advances of intercompany loans		—			(3,210	)		—			3,210			—
Intercompany capital contributed		(17,000	)		(500	)		—			17,500			—
Other		(300	)		—			—			—			(300	)
Total investing activities		(39,576	)		(13,396	)		(7,299	)		16,710			(43,561	)
Financing activities
Net repayments of indebtedness		—			—			(1,926	)		—			(1,926	)
Payments of borrowing costs		(51	)		—			—			—			(51	)
Payment of dividends to shareholders		(5,231	)		—			—			—			(5,231	)
Repayments of intercompany loans		—			—			(4,000	)		4,000			—
Borrowings of intercompany loans		3,210			—			—			(3,210	)		—
Intercompany capital (returned) received		—			17,000			500			(17,500	)		—
Proceeds from government grants		1,861			2,000			—			—			3,861
Payments related to share-based compensation awards and other		(751	)		—			—			—			(751	)
Total financing activities		(962	)		19,000			(5,426	)		(16,710	)		(4,098	)
Effect of exchange rate on cash		—			—			1,176			—			1,176
Net increase (decrease) in cash		(29,975	)		5,530			(10,597	)		—			(35,042	)
Cash at the beginning of period		59,130			465			45,709			—			105,304
Cash at the end of period	$	29,155		$	5,995		$	35,112		$	—		$	70,262

- 23 -

GLATFELTER

3.31.16 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	(975	)	$	(3	)	$	3,133		$	—		$	2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(14,513	)		—			(7,236	)		—			(21,749	)
Proceeds from disposal plant, equipment and timberlands, net		1,513			1,213			—			—			2,726
Repayments from intercompany loans		—			31,556			—			(31,556	)		—
Advances of intercompany loans		—			(30,690	)		—			30,690			—
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(14,600	)		2,079			(7,236	)		(866	)		(20,623	)
Financing activities
Payments of borrowing costs		(1,008	)		—			—			—			(1,008	)
Payment of dividends to shareholders		(4,774	)		—			—			—			(4,774	)
Repayments of intercompany loans		—			—			(31,556	)		31,556			—
Borrowings of intercompany loans		30,690			—			—			(30,690	)		—
Payments related to share-based compensation awards and other		(1,408	)		—			—			—			(1,408	)
Total financing activities		23,500			—			(31,556	)		866			(7,190	)
Effect of exchange rate on cash		—			—			(2,609	)		—			(2,609	)
Net increase (decrease) in cash		7,925			2,076			(38,268	)		—			(28,267	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	50,133		$	2,585		$	18,852		$	—		$	71,570

- 24 -

GLATFELTER

3.31.16 Form 10-Q

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

The following discussion should be read in conjunction with the information in the unaudited condensed consolidated financial statements and notes thereto included herein and Glatfelter’s Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2015 Annual Report on Form 10-K.

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

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

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

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

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

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

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

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

viii. the impact of unplanned production interruption;

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

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

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

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

xiii. adverse results in litigation in the Fox River matter;

xiv. the impact of war and terrorism;

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

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

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

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

• Composite Fibers with revenue from the sale of single-serve tea and coffee filtration papers, nonwoven wall covering materials, metallized papers, composite laminates papers, and many technically special papers including substrates for electrical applications;

• Advanced Airlaid Materials with revenue from the sale of airlaid nonwoven fabric-like materials used in feminine hygiene and adult incontinence products, wipes, and other airlaid applications; and

• Specialty Papers with revenue from the sale of papers for carbonless and other forms, envelopes, book publishing, and engineered products such as papers for high-speed ink jet printing, office specialty products, greeting cards, packaging, casting, release, transfer, playing card, postal, FDA-compliant food and beverage applications, and other niche specialty applications.

- 25 -

GLATFELTER

3.31.16 Form 10-Q

RESULTS OF OPERATIONS

Three months ended March 31, 2016 versus the three months ended March 31, 2015

Overview For the first three months of 2016 net income was $16.2 million, or $0.37 per diluted share compared with $13.9 million, or $0.32 per diluted share in the first quarter of 2015. Adjusted earnings, a non-GAAP measure, were $16.3 million, or $0.37 per diluted share for the first quarter of 2016, a 23 percent increase compared with $13.4 million, or $0.30 per diluted share, for the same period a year ago. Our Advanced Airlaid Materials and Specialty Papers businesses reported operating income increases of 25% and 58%, respectively, compared with the first quarter of 2015, with improved operations and increased shipping volumes. The strong performance of these two businesses was partially offset by lower operating income in the Composite Fibers business, which was impacted by softer demand during the quarter for food and beverage products after a strong 2015.

The following table sets forth summarized results of operations:

	Three months ended March 31
In thousands, except per share	2016		2015
Net sales	$	402,218	$	417,469
Gross profit		57,843		52,108
Operating income		25,961		23,490
Net income		16,168		13,925
Earnings per diluted share		0.37		0.32

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

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

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

Specialty Papers’ environmental compliance projects. These adjustments reflect non-capitalized costs incurred by the business unit directly related to the compliance with the U.S. EPA Best Available Retrofit Technology rule (BART; otherwise known as the Regional Haze Rule) and the Boiler Maximum Achievable Control Technology rule (Boiler MACT).

Airlaid capacity expansion costs. These adjustments reflect non-capitalized costs incurred directly related to the start-up of a new production facility for AMBU.

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

Adjusted earnings per diluted share is calculated by dividing adjusted net income by diluted weighted-average shares outstanding. Adjusted earnings and adjusted earnings per diluted share are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. These non-GAAP measures may differ from other companies. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP. The following table sets for the reconciliation of net income to adjusted earnings for the three months ended March 31, 2016 and 2015:

In thousands, except per share	After-tax amounts			Diluted EPS
2016
Net income	$	16,168		$	0.37
Workforce efficiency charges		68			—
Specialty Papers’ environmental compliance projects		23			—
Airlaid capacity expansion costs		34			—
Adjusted earnings (non-GAAP)	$	16,293		$	0.37
2015
Net income	$	13,925		$	0.32
Timberland sales and related costs		(1,617	)		(0.04	)
Workforce efficiency charges		953			0.02
Acquisition and integration related costs		113			—
Adjusted earnings (non-GAAP)	$	13,374		$	0.30

- 26 -

GLATFELTER

3.31.16 Form 10-Q

Business Unit Performance

Three months ended March 31 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2016		2015		2016		2015		2016		2015		2016			2015			2016			2015
Net sales	$	123.5	$	135.3	$	60.8	$	62.3	$	217.9	$	219.9	$	—		$	—		$	402.2		$	417.5
Energy and related sales, net		—		—		—		—		0.7		2.1		—			—			0.7			2.1
Total revenue		123.5		135.3		60.8		62.3		218.6		222.0		—			—			402.9			419.5
Cost of products sold		101.2		109.0		52.2		55.1		191.1		200.4		0.5			2.9			345.0			367.4
Gross profit (loss)		22.3		26.3		8.6		7.2		27.5		21.6		(0.5	)		(2.9	)		57.8			52.1
SG&A		11.1		11.6		2.0		1.9		12.5		12.1		6.3			5.6			31.9			31.3
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		—			(2.7	)		—			(2.7	)
Total operating income (loss)		11.2		14.7		6.6		5.3		15.0		9.5		(6.8	)		(5.8	)		26.0			23.5
Non-operating expense		—		—		—		—		—		—		(4.7	)		(4.6	)		(4.7	)		(4.6	)
Income (loss) before income taxes	$	11.2	$	14.7	$	6.6	$	5.3	$	15.0	$	9.5	$	(11.5	)	$	(10.4	)	$	21.2		$	18.9
Supplementary Data
Net tons sold (thousands)		36.9		38.0		24.5		24.1		205.8		198.7		—			—			267.2			260.7
Depreciation, depletion and amortization	$	7.1	$	6.7	$	2.3	$	2.2	$	6.7	$	6.6	$	0.5		$	0.5		$	16.6		$	16.0
Capital expenditures		6.3		5.9		14.7		1.3		22.0		13.2		0.3			1.3			43.3			21.7

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

Business Units Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the business unit are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the Business Unit Performance table.

Management evaluates results of operations of the business units before pension expense, certain corporate level costs, and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of business unit results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

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GLATFELTER

3.31.16 Form 10-Q

Sales and Costs of Products Sold

	Three months ended March 31
In thousands	2016			2015			Change
Net sales	$	402,218		$	417,469		$	(15,251	)
Energy and related sales, net		666			2,068			(1,402	)
Total revenues		402,884			419,537			(16,653	)
Costs of products sold		345,041			367,429			(22,388	)
Gross profit	$	57,843		$	52,108		$	5,735
Gross profit as a percent of Net sales		14.4	%		12.5	%

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

	Three months ended March 31
Percent of Total	2016			2015
Business Unit
Composite Fibers		30.7	%		32.4	%
Advanced Airlaid Material		15.1			14.9
Specialty Papers		54.2			52.7
Total		100.0	%		100.0	%

Net sales totaled $402.2 million and $417.5 million in the first quarters of 2016 and 2015, respectively. Currency translation adjustments unfavorably impacted the year-over-year comparison by $5.2 million.

Composite Fibers’ net sales declined $11.8 million, or 8.7%, due to $3.0 million of lower selling prices, $4.5 million of unfavorable currency translation and lower shipping volumes.

Composite Fibers’ first-quarter 2016 operating income decreased $3.5 million to $11.2 million compared to the year-ago period. The primary drivers are summarized in the following chart:

Advanced Airlaid Materials’ net sales decreased $1.5 million in the year-over-year comparison as $3.8 million of

lower selling prices from the pass through of lower raw material costs more than offset higher shipping volumes. Shipping volumes increased 2.0% primarily due to higher shipments of adult incontinence and wipes products.

Advanced Airlaid Materials’ operating income totaled $6.6 million, an increase of $1.3 million, or 24.5% compared to the same quarter a year ago and the operating margin widened 240 basis points. The primary drivers are summarized in the following chart:

Specialty Papers’ net sales decreased $2.0 million, or 0.9% due to a $4.2 million impact from lower selling prices partially offset by a 3.6% increase in shipping volumes. The business unit again outperformed the broader uncoated free sheet market, which increased 1.7%.

Operating income totaled $15.0 million, an increase of $5.5 million, or 57.9% in the year-over-year comparison. The primary drivers are summarized in the following chart:

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GLATFELTER

3.31.16 Form 10-Q

We sell excess power generated by the Spring Grove, PA facility. The following table summarizes this activity for the first three months of 2016 and 2015:

	Three months ended March 31
In thousands	2016			2015			Change
Energy sales	$	982		$	2,165		$	(1,183	)
Costs to produce		(1,109	)		(1,045	)		(64	)
Net		(127	)		1,120			(1,247	)
Renewable energy credits		793			948			(155	)
Total	$	666		$	2,068		$	(1,402	)

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

Other and Unallocated The amount of net operating expenses not allocated to a business unit and reported as “Other and Unallocated” in our table of Business Unit Performance, totaled $6.8 million in the first three months of 2016 compared with $5.8 million in the first three months of 2015. Excluding gains from sales of timberlands in the comparison, unallocated net operating expenses decreased $1.7 million primarily due to lower pension expense.

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

	Three months ended March 31
In thousands	2016		2015		Change
Recorded as:
Costs of products sold	$	437	$	2,028	$	(1,591	)
SG&A expense		722		781		(59	)
Total	$	1,159	$	2,809	$	(1,650	)

The amount of pension expense recognized each year is dependent on various actuarial assumptions and certain other factors, including discount rates and the fair value of our pension assets. Pension expense for the full year of 2016 is expected to be approximately $4.6 million compared with $9.1 million in 2015. The decrease reflects the higher discount rates partially offset by a lower assumed long term rate of return on plan assets.

Income taxes For the first quarter of 2016, we recorded a provision for income taxes of $5.1 million on pretax income of $21.2 million. The comparable amounts in the first quarter of

2015 were $4.9 million and $18.9 million, respectively. The effective rate in 2015 includes the impact of a $2.7 million gain on the sale of timberlands.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany and France it is the Euro, in the UK, it is the British Pound Sterling, and in the Philippines the functional currency is the Peso. On an annual basis, our euro denominated revenue exceeds euro expenses by approximately €120 million. For the three months ended March 31, 2016, the average currency exchange rate declined slightly to 1.102 U.S. dollars to 1.00 euro compared with 1.127 to 1.00 for the first quarter of 2015. With respect to the British Pound Sterling, Canadian dollar, and Philippine Peso, we have greater outflows than inflows of these currencies, although to a lesser degree. As a result, particularly with respect to the euro, we are exposed to changes in currency exchange rates and such changes could be significant. The translation of the results from international operations into U.S. dollars is subject to changes in foreign currency exchange rates.

The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation’s results for the first three months of 2016.

In thousands	Three months ended March 31, 2016
	Favorable (unfavorable)
Net sales	$	(5,228	)
Costs of products sold		4,565
SG&A expenses		397
Income taxes and other		46
Net income	$	(220	)

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2016 were the same as 2015. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

LIQUIDITY AND CAPITAL RESOURCES

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

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GLATFELTER

3.31.16 Form 10-Q

	March 31
In thousands	2016			2015
Cash and cash equivalents at beginning of period	$	105,304		$	99,837
Cash provided (used) by
Operating activities		11,441			2,155
Investing activities		(43,561	)		(20,623	)
Financing activities		(4,098	)		(7,190	)
Effect of exchange rate changes on cash		1,176			(2,609	)
Net cash used		(35,042	)		(28,267	)
Cash and cash equivalents at end of period	$	70,262		$	71,570

At March 31, 2016, we had $70.3 million in cash and cash equivalents held by both domestic and foreign subsidiaries. Unremitted earnings of our foreign subsidiaries are deemed to be indefinitely reinvested; however, as of March 31, 2016, the majority of our cash and cash equivalents is either held by domestic entities or is available for use domestically. In addition to our cash and cash equivalents, $251.8 million is available under our revolving credit agreement, which matures in March 2020.

Cash provided by operating activities totaled $11.4 million in the first quarter of 2016 compared with $2.2 million in the same quarter a year ago. The increase in cash from operations primarily reflects a decrease in cash used for working capital.

Net cash used by investing activities increased by $22.9 million in the year-over-year comparison primarily due to capital expenditures for Specialty Papers’ environmental compliance and Advanced Airlaid Materials’ capacity expansion projects which totaled $28.1 million. Capital expenditures are expected to total between $150 million and $170 million for 2016, including approximately $40 million to $45 million for each of the AMBU capacity expansion and SPBU environmental compliance projects.

Net cash used by financing activities totaled $4.1 million in the first quarter of 2016 compared with $7.2 million in the same quarter of 2015.

The following table sets forth our outstanding long-term indebtedness:

	March 31			December 31
In thousands	2016			2015
Revolving credit facility, due Mar. 2020	$	61,482		$	58,792
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,166			10,109
2.05% Term Loan, due Mar. 2023		42,539			42,130
1.55% Term Loan, due Sep. 2025		2,969			2,839
Total long-term debt		367,156			363,870
Less current portion		(7,704	)		(7,366	)
Unamortized deferred issuance costs		(3,057	)		(3,208	)
Long-term debt, net of current portion	$	356,395		$	353,296

Our revolving credit facility contains a number of customary compliance covenants, the most restrictive of which is a maximum leverage ratio of 3.5x. As of March 31, 2016, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 1.8x, within the limits set forth in our credit agreement. Based on our expectations of future results of operations and capital needs, we do not believe the debt covenants will impact our operations or limit our ability to undertake financings that may be necessary to meet our capital needs.

The 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the credit agreement at maturity, or a default under the credit agreement that accelerates the debt outstanding thereunder. As of March 31, 2016, we met all of the requirements of our debt covenants. The significant terms of the debt instruments are more fully discussed in Item 1 - Financial Statements – Note 9.

Cash used for financing activities declined $3.1 million in the year-over-year comparison primarily due to proceeds from certain government grants received in connection with Specialty Papers’ environmental compliance projects and Advanced Airlaid Materials’ capacity expansion project. Financing activities includes cash used for common stock dividends which increased in the comparison reflecting a 4% increase in our quarterly cash dividend. In the first three months of 2016, we used $5.2 million of cash for dividends on our common stock compared with $4.8 million in the same period of 2015. Our Board of Directors determines what, if any, dividends will be paid to our shareholders. Dividend payment decisions are based upon then-existing factors and conditions and, therefore, historical trends of dividend payments are not necessarily indicative of future payments.

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GLATFELTER

3.31.16 Form 10-Q

We are subject to various federal, state and local laws and regulations intended to protect the environment as well as human health and safety. At various times, we have incurred significant costs to comply with these regulations and we could incur additional costs as new regulations are developed or regulatory priorities change. We will incur material capital costs to comply with new air quality regulations including the U.S. EPA Best Available Retrofit Technology rule (BART; otherwise known as the Regional Haze Rule) and the Boiler Maximum Achievable Control Technology rule (Boiler MACT). These rules will require process modifications and/or installation of air pollution controls on boilers at two of our facilities. We have begun converting or replacing five coal-fired boilers to natural gas and upgrading site infrastructure to accommodate the new boilers, including connecting to gas pipelines. The total cost of these projects is estimated at $85 million to $90 million of which $47.0 million has been incurred through the end of the first quarter of 2016. The balance of the related spending will be substantially completed in 2016.

As more fully discussed in Item 1 - Financial Statements – Note 13 – Commitments, Contingencies and Legal Proceedings (“Note 13”), we are involved in the Lower Fox River in Wisconsin (the “Fox River”), an EPA Superfund site for which we remain potentially liable for contributions to the clean-up activity. During 2015 and through the end of the first quarter of 2016, we used $9.8 million for remediation activities and have committed to another $4.5 million in 2016. It is conceivable we may need to fund amounts in excess of this to fund a portion of the on-going costs in 2016 or beyond. Although we are unable to determine with any degree of certainty the amount we may be required to fund for interim remediation work, such amounts could be significant. The ultimate allocation of such costs is the subject of extensive ongoing litigation amongst three potentially responsible parties. See Note 13 for a summary of significant environmental matters.

During 2016, we expect our use of cash for capital expenditures, strategic investments and environmental compliance projects will exceed cash generated from operations. We expect to meet all of our near and long-

term cash needs from a combination of operating cash flow, cash and cash equivalents, our existing credit facility and other long-term debt. However, as discussed in Note 13, an unfavorable outcome of the Fox River matters could have a material adverse impact on our consolidated financial position, liquidity and/or results of operations.

Off-Balance-Sheet Arrangements As of March 31, 2016 and December 31, 2015, we had not entered into any off-balance-sheet arrangements. Financial derivative instruments, to which we are a party, and guarantees of indebtedness, which solely consist of obligations of subsidiaries and a partnership, are reflected in the condensed consolidated balance sheets included herein in Item 1 – Financial Statements.

Outlook Composite Fibers’ shipping volumes are expected to be approximately 10% higher in the second quarter than the first quarter of 2016. Selling prices and raw material and energy prices are expected to be in-line with the first quarter.

Advanced Airlaid Materials’ shipping volumes, selling prices and average raw material prices in the second quarter of 2016 are expected to be in-line with the first quarter.

For Specialty Papers, we expect shipping volumes in the second quarter of 2016 to decline by approximately 5% compared with the first quarter. Overall selling prices are expected to increase slightly compared with the first quarter of 2016 as the recently announced price increases begin to be realized. Input costs are expected to be in-line with the first quarter. We also plan to complete the annual maintenance outages at our U.S. facilities in the second quarter of 2016. The outages are expected to adversely impact operating profit by approximately $25 million to $27 million, pre-tax, compared with $33.4 million in the second quarter of 2015.

Corporate costs in the second quarter of 2016 are expected to be approximately $2 million higher than the first quarter of 2016.

- 31 -

GLATFELTER

3.31.16 Form 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

	Year Ended December 31															March 31, 2016
																Carrying
Dollars in thousands	2017			2018			2019			2020			2021			Value		Fair Value
Long-term debt
Average principal outstanding
At fixed interest rates – Bond	$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000	$	248,438
At fixed interest rates – Term Loans		56,081			48,377			40,488			32,414			24,338			55,674		52,890
At variable interest rates		61,482			61,482			61,482			61,482			61,482			61,482		61,482
																$	367,156	$	362,810
Weighted-average interest rate
On fixed rate debt – Bond		5.375	%		5.375	%		5.375	%		5.375	%		5.375	%
On fixed rate debt – Term Loans		2.09	%		2.09	%		2.08	%		2.08	%		2.07	%
On variable rate debt		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%

The table above presents the average principal outstanding and related interest rates for the next five years for debt outstanding as of March 31, 2016. Fair values included herein have been determined based upon rates currently available to us for debt with similar terms and remaining maturities.

Our market risk exposure primarily results from changes in interest rates and currency exchange rates. At March 31, 2016, we had $367.2 million of long-term debt, of which 16.7% was at variable interest rates. Variable-rate debt outstanding represents borrowings under our revolving credit agreement that accrues interest based on LIBOR plus a margin. At March 31, 2016, the interest rate paid was approximately 1.25%. A hypothetical 100 basis point increase or decrease in the interest rate on variable rate debt would increase or decrease annual interest expense by $0.6 million.

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.” For a more complete discussion of this activity, refer to Item 1 – Financial Statements – Note 12.

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

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures Our chief executive officer and our principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2016, have concluded that, as of the evaluation date, our disclosure controls and procedures are effective.

Changes in Internal Controls During the first quarter of 2016, we implemented enhancements to our demand-to-fulfillment systems for our Composite Fibers business unit that resulted in changes to processes and controls related to customer invoicing and inventory movements from production to shipment to customers. There were no other changes in our internal control over financial reporting during the three months ended March 31, 2016, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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GLATFELTER

3.31.16 Form 10-Q

PART II

ITEM 6. EXHIBITS

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

10.1	Schedule of Change in Control Employee Agreements, filed herewith
31.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2	Certification of John P. Jacunski, Executive Vice President, Chief Financial Officer and President, Specialty Papers of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
32.2	Certification of John P. Jacunski, Executive Vice President, Chief Financial Officer and President, Specialty Papers of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

SIGNATURES

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

	P. H. GLATFELTER COMPANY
	(Registrant)
May 3, 2016
	By	/s/ David C. Elder
		David C. Elder
		Vice President, Finance

- 33 -

GLATFELTER

3.31.16 Form 10-Q

EXHIBIT INDEX

Exhibit Number	Description
10.1	Schedule of Change in Control Employee Agreements, filed herewith.
31.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 – Chief Executive Officer, filed herewith.
31.2	Certification of John P. Jacunski, Executive Vice President, Chief Financial Officer and President, Specialty Papers of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer, filed herewith.
32.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer, filed herewith.
32.2	Certification of John P. Jacunski, Executive Vice President, Chief Financial Officer and President, Specialty Papers Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 – Chief Financial Officer, filed herewith.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

- 34 -

GLATFELTER

3.31.16 Form 10-Q

EX-10.1

Exhibit 10.1

SCHEDULE OF CHANGE IN CONTROL EMPLOYMENT AGREEMENTS

On March 21, 2016, the Registrant entered into a Change in Control Employment Agreement (the “Agreement”) with Samuel L. Hillard, Vice President, Corporate Development & Strategy.

In accordance with the Instructions to Item 601 of Regulation S-K, the Registrant has omitted filing the Change in Control Employment Agreement as an exhibit to this Form 10-Q because it is substantially identical to the Form of Change in Control Employment Agreement by and between P. H. Glatfelter Company and certain employees, which is filed as Exhibit 10 (q) to our Form 10-K for the year ended December 31, 2013.

EX-31.1

Exhibit 31.1

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

I, Dante C. Parrini certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of P. H. Glatfelter Company (“Glatfelter”);

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

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

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

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

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

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

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

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

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

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

May 3, 2016
	By	/s/ Dante C. Parrini
		Dante C. Parrini
		Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

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

I, John P. Jacunski certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of P. H. Glatfelter Company (“Glatfelter”);

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

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

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

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

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

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

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

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

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

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

May 3, 2016
	By	/s/ John P. Jacunski
		John P. Jacunski
		Executive Vice President,
		Chief Financial Officer and President, Specialty Papers

EX-32.1

Exhibit 32.1

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

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, of P. H. Glatfelter Company (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dante C. Parrini, Chairman and Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

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

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

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

May 3, 2016
	By	/s/ Dante C. Parrini
		Dante C. Parrini
		Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

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

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, of P. H. Glatfelter Company (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Jacunski, Executive Vice President, Chief Financial Officer and President, Specialty Papers of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

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

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

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

May 3, 2016
	By	/s/ John P. Jacunski
		John P. Jacunski
		Executive Vice President,
		Chief Financial Officer and President, Specialty Papers

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	GLT
Entity Registrant Name	GLATFELTER P H CO
Entity Central Index Key	0000041719
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		43,504,777

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Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	$ 402,218	$ 417,469
Energy and related sales, net	666	2,068
Total revenues	402,884	419,537
Costs of products sold	345,041	367,429
Gross profit	57,843	52,108
Selling, general and administrative expenses	31,858	31,272
Losses (gains) on dispositions of plant, equipment and timberlands, net	24	(2,654)
Operating income	25,961	23,490
Non-operating income (expense)
Interest expense	(4,116)	(4,508)
Interest income	91	65
Other, net	(700)	(187)
Total non-operating expense	(4,725)	(4,630)
Income before income taxes	21,236	18,860
Income tax provision	5,068	4,935
Net income	$ 16,168	$ 13,925
Earnings per share
Basic	$ 0.37	$ 0.32
Diluted	0.37	0.32
Cash dividends declared per common share	$ 0.125	$ 0.120
Weighted average shares outstanding
Basic	43,521	43,252
Diluted	43,871	43,949

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 16,168	$ 13,925
Foreign currency translation adjustments	13,419	(41,337)
Net change in:
Deferred gains on cash flow hedges, net of taxes of $57 and $(1,063), respectively	66	2,766
Unrecognized retirement obligations, net of taxes of $(1,367) and $(2,011), respectively	2,257	3,286
Other comprehensive income (loss)	15,742	(35,285)
Comprehensive income (loss)	$ 31,910	$ (21,360)

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Taxes on deferred losses on cash flow hedges	$ 57	$ (1,063)
Taxes on unrecognized retirement obligations	$ (1,367)	$ (2,011)

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 70,262	$ 105,304
Accounts receivable, net	167,456	167,199
Inventories	255,503	247,214
Prepaid expenses and other current assets	35,435	32,650
Total current assets	528,656	552,367
Plant, equipment and timberlands, net	735,923	698,864
Goodwill	79,141	76,056
Intangible assets	64,448	63,057
Other assets	113,272	110,072
Total assets	1,521,440	1,500,416
Liabilities and Shareholders' Equity
Current portion of long-term debt	7,704	7,366
Accounts payable	158,255	172,735
Dividends payable	5,440	5,231
Environmental liabilities	11,890	12,544
Other current liabilities	106,054	106,444
Total current liabilities	289,343	304,320
Long-term debt	356,395	353,296
Deferred income taxes	81,640	76,458
Other long-term liabilities	103,891	103,095
Total liabilities	$ 831,269	$ 837,169
Commitments and contingencies
Shareholders' equity
Common stock	$ 544	$ 544
Capital in excess of par value	54,087	54,912
Retained earnings	973,873	963,143
Accumulated other comprehensive loss	(174,744)	(190,486)
Shareholders' equity before treasury stock	853,760	828,113
Less cost of common stock in treasury	(163,589)	(164,866)
Total shareholders' equity	690,171	663,247
Total liabilities and shareholders' equity	$ 1,521,440	$ 1,500,416

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net income	$ 16,168	$ 13,925
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization	16,646	15,975
Amortization of debt issue costs	290	315
Pension expense, net of unfunded benefits paid	767	2,463
Deferred income tax benefit	2,436	1,086
Losses (gains) on dispositions of plant, equipment and timberlands, net	24	(2,654)
Share-based compensation	1,217	1,747
Change in operating assets and liabilities
Accounts receivable	2,376	(13,968)
Inventories	(5,888)	(4,732)
Prepaid and other current assets	(1,980)	(2,269)
Accounts payable	(15,759)	(8,067)
Accruals and other current liabilities	(4,897)	(3,492)
Other	41	1,826
Net cash provided by operating activities	11,441	2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(43,294)	(21,749)
Proceeds from disposals of plant, equipment and timberlands, net	33	2,726
Other	(300)	(1,600)
Net cash used by investing activities	(43,561)	(20,623)
Financing activities
Payments of borrowing costs	(51)	(1,008)
Repayment of term loans	(1,926)
Payments of dividends	(5,231)	(4,774)
Proceeds from government grants	3,861
Payments related to share-based compensation awards and other	(751)	(1,408)
Net cash used by financing activities	(4,098)	(7,190)
Effect of exchange rate changes on cash	1,176	(2,609)
Net decrease in cash and cash equivalents	(35,042)	(28,267)
Cash and cash equivalents at the beginning of period	105,304	99,837
Cash and cash equivalents at the end of period	70,262	71,570
Cash paid for:
Interest, net of amounts capitalized	474	818
Income taxes, net	$ 5,188	$ 5,321

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Organization

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1. ORGANIZATION

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

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Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Accounting Policies

2. ACCOUNTING POLICIES

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2015 Annual Report on Form 10-K.

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

Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting designed to simplify certain aspects of accounting for share-based awards. The new ASU requires entities to recognize as a component of income tax expense all excess tax benefits or deficiencies arising from the difference between compensation cost recognized and the intrinsic value at the time an option is exercised or, in the case of restricted stock and similar awards, the fair value upon vesting of an award. Previously such differences were recognized in additional paid in capital as part of an “APIC pool.” In addition, the ASU also requires entities to exclude excess tax benefits and tax deficiencies from the calculation of common share equivalents for purposes of calculating earnings per share. The new standard is required to be adopted either prospectively or retrospectively in the first quarter of 2017 and early adoption is permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require organizations such as us that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will be effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are in the process of assessing the impact this standard will have on us and expect to follow a modified retrospective method provided for under the standard.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted retrospectively for fiscal years beginning after December 15, 2017 and early adoption is permitted only for reporting periods beginning after December 31, 2016. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

3. EARNINGS PER SHARE

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

	Three months ended March 31
In thousands, except per share	2016		2015
Net income	$	16,168	$	13,925
Weighted average common shares outstanding used in basic EPS		43,521		43,252
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		350		697
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,871		43,949
Earnings per share
Basic	$	0.37	$	0.32
Diluted		0.37		0.32

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

	March 31
In thousands	2016		2015
Three months ended		1,694		690

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Accumulated Other Comprehensive Income

4. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months ended March 31, 2016 and 2015.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2016	$	(73,041	)	$	(225	)	$	(120,714	)	$	3,494		$	(190,486	)
Other comprehensive income before reclassifications (net of tax)		13,419			252			—			—			13,671
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(186	)		2,315			(58	)		2,071
Net current period other comprehensive income (loss)		13,419			66			2,315			(58	)		15,742
Balance at March 31, 2016	$	(59,622	)	$	(159	)	$	(118,399	)	$	3,436		$	(174,744	)
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(41,337	)		3,394			—			—			(37,943	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(628	)		3,266			20			2,658
Net current period other comprehensive income (loss)		(41,337	)		2,766			3,266			20			(35,285	)
Balance at March 31, 2015	$	(75,561	)	$	5,122		$	(116,994	)	$	(2,722	)	$	(190,155	)

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended March 31
In thousands	2016			2015
Description							Line Item in Statements of Income
Cash flow hedges (Note 12)
Gains on cash flow hedges	$	(298	)	$	(873	)	Costs of products sold
Tax expense		112			245		Income tax provision
Net of tax		(186	)		(628	)
Retirement plan obligations (Note 7)
Amortization of deferred benefit pension plan items
Prior service costs		503			567		Costs of products sold
		171			193		Selling, general and administrative
Actuarial losses		2,281			3,366		Costs of products sold
		773			1,140		Selling, general and administrative
		3,728			5,266
Tax benefit		(1,413	)		(2,000	)	Income tax provision
Net of tax		2,315			3,266
Amortization of deferred benefit other plan items
Prior service costs		(37	)		(57	)	Costs of products sold
		(8	)		(13	)	Selling, general and administrative
Actuarial losses		(42	)		82		Costs of products sold
		(9	)		18		Selling, general and administrative
		(96	)		30
Tax provision (benefit)		38			(10	)	Income tax provision
Net of tax		(58	)		20
Total reclassifications, net of tax	$	2,071		$	2,658

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

5. INCOME TAXES

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

As of March 31, 2016 and December 31, 2015, we had $12.7 million and $12.2 million, respectively, of gross unrecognized tax benefits. As of March 31, 2016, if such benefits were to be recognized, approximately $11.2 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

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

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

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2015		N/A
State		2011 - 2015		2011 - 2014
Canada (1)		2010 - 2015		N/A
Germany (1)		2012 - 2015		2007 - 2011
France		2013 - 2015		2011 - 2012
United Kingdom		2014 - 2015		N/A
Philippines		2012, 2015		2013, 2014

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

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

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

	Three months ended March 31
In millions	2016		2015
Interest expense	$	0.1	$	0.1
Penalties		—		—
	March 31		December 31
	2016		2015
Accrued interest payable	$	0.7	$	0.6

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

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

Stock-Based Compensation

6. STOCK-BASED COMPENSATION

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

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

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

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

Units	2016			2015
Balance at January 1,		674,523			888,942
Granted		220,105			119,882
Cancelled/forfeited		(116,640	)		(67,179	)
Shares delivered		(126,914	)		(178,467	)
Balance at March 31,		651,074			763,178

The amount granted in 2016 and 2015 includes PSAs of 191,548 and 100,801 respectively, exclusive of reinvested dividends.

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

	March 31
In thousands	2016		2015
Three months ended	$	467	$	367

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

The following table sets forth information related to outstanding SOSARS.

	2016					2015
	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
SOSARS
Outstanding at January 1,		2,199,742		$	17.82		1,864,707		$	16.20
Granted		724,914			17.47		406,142			24.94
Exercised		—			—		(58,343	)		13.52
Canceled / forfeited		(24,712	)		26.90		—			—
Outstanding at March 31,		2,899,944		$	17.65		2,212,506		$	17.88
SOSAR Grants
Weighted average grant date fair value per share	$	4.04				$	7.54
Aggregate grant date fair value (in thousands)	$	2,919				$	3,063
Black-Scholes assumptions
Dividend yield		2.87	%				1.92	%
Risk free rate of return		1.34	%				1.64	%
Volatility		32.01	%				36.48	%
Expected life		6 yrs					6 yrs

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

	March 31
In thousands	2016		2015
Three months ended	$	732	$	589

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Retirement Plans and Other Post-Retirement Benefits

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Retirement Plans and Other Post-Retirement Benefits

7. RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

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

	Three months ended March 31
In thousands	2016			2015
Pension Benefits
Service cost	$	2,730		$	3,136
Interest cost		6,087			5,950
Expected return on plan assets		(11,386	)		(11,543	)
Amortization of prior service cost		674			760
Amortization of unrecognized loss		3,054			4,506
Net periodic benefit cost	$	1,159		$	2,809
Other Benefits
Service cost	$	323		$	413
Interest cost		540			563
Amortization of prior service cost		(45	)		(70	)
Amortization of unrecognized (gain)/loss		(51	)		100
Net periodic benefit cost	$	767		$	1,006

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Inventories

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

8. INVENTORIES

Inventories, net of reserves, were as follows:

	March 31		December 31
In thousands	2016		2015
Raw materials	$	64,134	$	60,098
In-process and finished		118,134		115,874
Supplies		73,235		71,242
Total	$	255,503	$	247,214

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Long-Term Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

9. LONG-TERM DEBT

Long-term debt is summarized as follows:

	March 31			December 31
In thousands	2016			2015
Revolving credit facility, due Mar. 2020	$	61,482		$	58,792
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,166			10,109
2.05% Term Loan, due Mar. 2023		42,539			42,130
1.55% Term Loan, due Sep. 2025		2,969			2,839
Total long-term debt		367,156			363,870
Less current portion		(7,704	)		(7,366	)
Unamortized deferred issuance costs		(3,057	)		(3,208	)
Long-term debt, net of current portion	$	356,395		$	353,296

The amount set forth for Long-term debt, net of current portion as of December 31, 2015, has been restated to retroactively adopt ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs to be presented as a direct deduction from the carrying value of the related debt instrument rather than as a deferred asset except for costs associated with a revolving line of credit. We adopted this standard in the first quarter of 2016 retroactive to December 31, 2015.

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

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

The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); and ii) a consolidated EBITDA to interest expense ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of March 31, 2016, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 1.8x. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the credit facility.

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

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

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of March 31, 2016, we met all of the requirements of our debt covenants.

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, entered into a series of borrowing agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”) as summarized below:

Amounts in thousands	Original Principal		Interest Rate			Maturity
Borrowing date
Apr. 11, 2013	€	42,700		2.05	%		Mar. 2023
Sep. 4, 2014		10,000		2.40	%		Jun. 2022
Oct. 10, 2015		2,608		1.55	%		Sep. 2025

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

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries. All such obligations are recorded in these condensed consolidated financial statements.

Letters of credit issued to us by certain financial institutions totaled $5.1 million and $5.3 million as of March 31, 2016 and December 31, 2015, respectively. The letters of credit, which reduce amounts available under our revolving credit facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

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Asset Retirement Obligation

3 Months Ended

Mar. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation

10. ASSET RETIREMENT OBLIGATION

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

Following is a summary of activity recorded during the first three months of 2016 and 2015:

In thousands	2016		2015
Balance at January 1,	$	419	$	4,114
Accretion		—		29
Payments		—		(419	)
Gain		—		(107	)
Balance at March 31,	$	419	$	3,617

The amount set forth above as of March 31, 2016, is recorded in other current liabilities in the accompanying condensed consolidated balance sheet.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

	March 31, 2016				December 31, 2015
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	61,482	$	61,482	$	58,792	$	58,792
Fixed-rate bonds		250,000		248,438		250,000		250,938
2.40% Term loan		10,166		9,911		10,109		10,535
2.05% Term loan		42,539		40,483		42,130		42,886
1.55% Term loan		2,969		2,496		2,839		2,524
Total	$	367,156	$	362,810	$	363,870	$	365,675

As of March 31, 2016, and December 31, 2015, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 12.

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Financial Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives and Hedging Activities

12. FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

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

Derivatives Designated as Hedging Instruments - Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs or capital expenditures expected to be incurred over a maximum of twenty-eight months. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date.

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

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
Euro / British Pound		11,370		10,527
Sell/Buy - buy notional
Euro / Philippine Peso		849,340		758,634
British Pound / Philippine Peso		592,719		542,063
Euro / U.S. Dollar		45,323		51,433
U.S. Dollar / Canadian Dollar		35,056		34,649
U.S. Dollar / Euro		23,580		—

These contracts have maturities of twenty-eight months or less.

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

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound		7,000		10,000
British Pound / Euro		3,500		3,500
Sell/Buy - buy notional
Euro / U.S. Dollar		7,500		12,500
British Pound / Euro		10,500		13,500

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

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

In thousands	March 31 2016		December 31 2015		March 31 2016		December 31 2015
	Prepaid Expenses and Other				Other
Balance sheet caption	Current Assets				Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	1,160	$	955	$	1,416	$	1,545
Not designated as hedging:
Forward foreign currency exchange contracts	$	92	$	68	$	—	$	49

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

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

	Three months ended March 31
In thousands	2016			2015
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	298		$	873
Ineffective portion – other – net		(403	)		350
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	589		$	720

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

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

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

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

In thousands	2016			2015
Balance at January 1,	$	(178	)	$	3,282
Deferred gains on cash flow hedges		307			4,703
Reclassified to earnings		(298	)		(873	)
Balance at March 31,	$	(169	)	$	7,112

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

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

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Commitments, Contingencies and Legal Proceedings

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Proceedings

13. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River - Neenah, Wisconsin

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

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

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

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

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

For OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions from 2007 through 2014 were funded primarily by NCR and its indemnitors, including Appvion, Inc. In 2015, we placed certain covering and capping in OU4b as a response to the Government’s demands at a cost of $9.7 million. Georgia Pacific and NCR funded work in 2015 pursuant to a proposed consent decree that the United States did not move to enter until April 12, 2016; the court has not yet ruled on that motion. Work is scheduled to continue in OU2-5 through 2018, with monitoring and maintenance to follow.

As more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $575 million for OU2-5 prior to the 2016 remediation season.

In 2016, the Governments again seek approximately $100 million of work to be completed in OU2-5. The exact work and a more precise estimate of its cost depend on certain unresolved technical issues. We have begun an effort to place the final layer on certain caps. We do not yet know whether we will undertake additional work in 2016 however, we expect to spend less than $10 million.

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

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

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

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

In addition, we take the position that the “single site” theory on which the courts held us responsible for cleaning up parts of the Site far downstream of our former mill should, if applied to NCR, make it liable for costs incurred in OU1. The district court agreed with us in an order dated March 3, 2015. On March 31, 2015, NCR sought review of that order by the court of appeals which review was denied on May 1, 2015.

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party, then Appvion may have a right to recover those costs under CERCLA. We and Appvion disagree over the proper treatment of amounts that Appvion incurred while a PRP that were also subject to a cost-sharing agreement with NCR; we contend Appvion may not recover costs it was contractually obligated to incur, that it has no other costs, and if it did, we would have a right to contribution of any recovery against NCR and others. However, Appvion takes a contrary position and claims approximately $200 million.

The district court has established a schedule for the Whiting Litigation under which it would hold a trial beginning in March 2017 on remaining issues.

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

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

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

On remand, the district court issued an opinion on October 19, 2015, holding that NCR had not shown a reasonable basis for apportionment of its liability for the site. On January 25, 2016, the court denied NCR’s request to certify that decision for immediate appeal.

As described below, the United States has withdrawn its natural resources damages claim against us. The Governments’ remaining claims principally consist of claims for unreimbursed costs. We do not know the full extent of those claimed costs. The remaining issues in the Government Action are set for trial to commence three days after conclusion of the 2017 trial in the Whiting Litigation.

Interim Funding of Ongoing Work. As described above, the court of appeals vacated the allocation judgment in the Whiting Litigation on September 25, 2014, but neither court has since replaced that allocation with any other. The 2007 UAO requires the PRPs to submit annual remediation work plans. For 2015, the EPA approved the 2015 Work Plan for $100 million of remediation activities. NCR, GP, and we were not able to reach agreement on a division of the costs of that work on an interim basis, subject to reallocation in the Whiting Litigation. NCR and GP entered into a proposed consent decree with the United States under which they agreed to fund certain work estimated to cost approximately $67 million in 2015, and they would not be responsible for completing the remainder of the work in 2015, estimated to cost approximately $33 million. However, NCR and GP did not complete all of the work assigned to them under the consent decree. The United States did not move to enter that consent decree until April 12, 2016, and the court has not yet ruled on that motion. Through the issuance of the 2015 Work Plan the EPA assigned to us those remaining tasks. Under the proposed consent decree, all parties would remain jointly and severally liable for work in the 2015 Work Plan not completed in 2015, except for a small amount of work upstream of the area for which GP is responsible. We contracted for remediation work in OU4 at a total cost of $9.7 million, an amount of work less than the amount assigned to us in the 2015 Work Plan. We anticipate that the amount of work performed by us in 2015 satisfied our share of the obligation if NCR and GP perform the work assigned to them in the 2015 Work Plan. The United States disagrees. We cannot predict the outcome of these disagreements or any possible resulting litigation.

The 2016 Work Plan similarly calls for completion of work that is estimated to cost in the range of $100 million. However, unlike the 2015 Work Plan, it does not allocate the work among NCR, GP, and us. The parties have again not come to agreement on an interim allocation among them of responsibility for completing the work called for by the 2016 Work Plan. NCR and GP have begun certain work.

Because we may not be able to obtain an agreement with the other parties or a ruling in litigation defining our obligation to contribute to work in 2016 prior to the time that work would have to be implemented, it is conceivable that we may have to choose an amount of work that we believe satisfies any obligation we may have to complete work in 2016, which selection we will have to defend after the fact. We expect to spend less than $10 million in connection with the 2016 Work Plan. In addition it is conceivable we may be in the same position with respect to work in OU2-5 beyond the 2016 season. Although we are unable to determine with any degree of certainty the amount we may be required to complete or to fund, those amounts could be significant. Any amounts we pay or any other party pays in the interim may be subject to reallocation when the Whiting Litigation is resolved.

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

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

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

	Three months ended March 31
In thousands	2016			2015
Balance at January 1,	$	17,105		$	16,223
Payments		(658	)		(16	)
Accruals		—			—
Balance at March 31,	$	16,447		$	16,207

The payments set forth above represent cash paid towards completion of remediation activities in connection with the 2015 Work Plan. Our reserve as of March 31, 2016 includes our estimate of costs to be incurred for remediation work, pending clarity from the Whiting litigation. If we are unsuccessful in the allocation litigation or in the enforcement litigation described above, we may be required to record additional charges and such charges could be significant.

Of our total reserve for the Fox River, $11.9 million is recorded in the accompanying March 31, 2016 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.”

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

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

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

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

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

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

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

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Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

14. SEGMENT INFORMATION

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

Three months ended March 31 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2016		2015		2016		2015		2016		2015		2016			2015			2016			2015
Net sales	$	123.5	$	135.3	$	60.8	$	62.3	$	217.9	$	219.9	$	—		$	—		$	402.2		$	417.5
Energy and related sales, net		—		—		—		—		0.7		2.1		—			—			0.7			2.1
Total revenue		123.5		135.3		60.8		62.3		218.6		222.0		—			—			402.9			419.5
Cost of products sold		101.2		109.0		52.2		55.1		191.1		200.4		0.5			2.9			345.0			367.4
Gross profit (loss)		22.3		26.3		8.6		7.2		27.5		21.6		(0.5	)		(2.9	)		57.8			52.1
SG&A		11.1		11.6		2.0		1.9		12.5		12.1		6.3			5.6			31.9			31.3
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		—			(2.7	)		—			(2.7	)
Total operating income (loss)		11.2		14.7		6.6		5.3		15.0		9.5		(6.8	)		(5.8	)		26.0			23.5
Non-operating expense		—		—		—		—		—		—		(4.7	)		(4.6	)		(4.7	)		(4.6	)
Income (loss) before income taxes	$	11.2	$	14.7	$	6.6	$	5.3	$	15.0	$	9.5	$	(11.5	)	$	(10.4	)	$	21.2		$	18.9
Supplementary Data
Net tons sold (thousands)		36.9		38.0		24.5		24.1		205.8		198.7		—			—			267.2			260.7
Depreciation, depletion and amortization	$	7.1	$	6.7	$	2.3	$	2.2	$	6.7	$	6.6	$	0.5		$	0.5		$	16.6		$	16.0
Capital expenditures		6.3		5.9		14.7		1.3		22.0		13.2		0.3			1.3			43.3			21.7

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

Business Units Results of individual business units are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the business unit are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the Business Unit Performance table.

Management evaluates results of operations of the business units before pension expense, certain corporate level costs, and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of business unit results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

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Condensed Consolidating Financial Statements

3 Months Ended

Mar. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

15. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

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

The following presents our condensed consolidating statements of income, including comprehensive income and cash flows for the three months ended March 31, 2016 and 2015 and our condensed consolidating balance sheets as of March 31, 2016 and December 31, 2015. The condensed consolidating financial statements set forth below include the addition of CFNA and GAMNA as guarantors during 2015 and all prior periods have been restated to retroactively reflect this change.

Condensed Consolidating Statement of Income for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	217,888		$	18,646		$	184,466		$	(18,782	)	$	402,218
Energy and related sales, net		666			—			—			—			666
Total revenues		218,554			18,646			184,466			(18,782	)		402,884
Costs of products sold		191,959			18,050			153,814			(18,782	)		345,041
Gross profit		26,595			596			30,652			—			57,843
Selling, general and administrative expenses		18,445			(185	)		13,598			—			31,858
Loss on dispositions of plant, equipment and timberlands, net		2			—			22			—			24
Operating income		8,148			781			17,032			—			25,961
Other non-operating income (expense)
Interest expense		(4,415	)		—			(787	)		1,086			(4,116	)
Interest income		181			992			4			(1,086	)		91
Equity in earnings of subsidiaries		12,872			11,754			—			(24,626	)		—
Other, net		(542	)		20			(178	)		—			(700	)
Total other non-operating income (expense)		8,096			12,766			(961	)		(24,626	)		(4,725	)
Income before income taxes		16,244			13,547			16,071			(24,626	)		21,236
Income tax provision		76			675			4,317			—			5,068
Net income		16,168			12,872			11,754			(24,626	)		16,168
Other comprehensive income		15,742			13,553			13,117			(26,670	)		15,742
Comprehensive income	$	31,910		$	26,425		$	24,871		$	(51,296	)	$	31,910

Condensed Consolidating Statement of Income for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	219,876		$	20,150		$	198,098		$	(20,655	)	$	417,469
Energy and related sales, net		2,068			—			—			—			2,068
Total revenues		221,944			20,150			198,098			(20,655	)		419,537
Costs of products sold		203,682			19,334			165,068			(20,655	)		367,429
Gross profit		18,262			816			33,030			—			52,108
Selling, general and administrative expenses		17,182			497			13,593			—			31,272
Gains on dispositions of plant, equipment and timberlands, net		(1,471	)		(1,183	)		—			—			(2,654	)
Operating income		2,551			1,502			19,437			—			23,490
Other non-operating income (expense)
Interest expense		(4,817	)		—			(6,394	)		6,703			(4,508	)
Interest income		163			6,599			5			(6,702	)		65
Equity in earnings of subsidiaries		17,084			10,194			—			(27,278	)		—
Other, net		(715	)		(130	)		659			(1	)		(187	)
Total other non-operating income (expense)		11,715			16,663			(5,730	)		(27,278	)		(4,630	)
Income before income taxes		14,266			18,165			13,707			(27,278	)		18,860
Income tax provision		341			1,081			3,513			—			4,935
Net income		13,925			17,084			10,194			(27,278	)		13,925
Other comprehensive income (loss)		(35,285	)		(38,550	)		38,848			(298	)		(35,285	)
Comprehensive income (loss)	$	(21,360	)	$	(21,466	)	$	49,042		$	(27,576	)	$	(21,360	)

Condensed Consolidating Balance Sheet as of March 31, 2016

In thousands	Parent Company		Guarantors		Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	29,155	$	5,995	$	35,112	$	—		$	70,262
Other current assets		199,170		247,480		257,534		(245,790	)		458,394
Plant, equipment and timberlands, net		305,347		14,782		415,794		—			735,923
Investments in subsidiaries		780,955		532,528		—		(1,313,483	)		—
Other assets		109,815		—		147,046		—			256,861
Total assets	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440
Liabilities and Shareholders’ Equity
Current liabilities	$	369,019	$	19,391	$	146,722	$	(245,789	)	$	289,343
Long-term debt		247,228		—		109,167		—			356,395
Deferred income taxes		31,118		125		50,397		—			81,640
Other long-term liabilities		86,905		314		16,672		—			103,891
Total liabilities		734,270		19,830		322,958		(245,789	)		831,269
Shareholders’ equity		690,172		780,955		532,528		(1,313,484	)		690,171
Total liabilities and shareholders’ equity	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440

Condensed Consolidating Balance Sheet as of December 31, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	59,130	$	465		$	45,709	$	—		$	105,304
Other current assets		199,690		238,515			239,367		(230,509	)		447,063
Plant, equipment and timberlands, net		286,334		1,114			411,416		—			698,864
Investments in subsidiaries		737,450		507,116			—		(1,244,566	)		—
Other assets		106,586		—			142,599		—			249,185
Total assets	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416
Liabilities and Shareholders’ Equity
Current liabilities	$	363,037	$	9,725		$	162,081	$	(230,523	)	$	304,320
Long-term debt		247,075		—			106,221		—			353,296
Deferred income taxes		28,561		(79	)		47,976		—			76,458
Other long-term liabilities		87,270		—			15,825		—			103,095
Total liabilities		725,943		9,646			332,103		(230,523	)		837,169
Shareholders’ equity		663,247		737,564			506,988		(1,244,552	)		663,247
Total liabilities and shareholders’ equity	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	10,563		$	(74	)	$	952		$	—		$	11,441
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(22,297	)		(13,686	)		(7,311	)		—			(43,294	)
Proceeds from disposal plant, equipment and timberlands, net		21			—			12			—			33
Repayments from intercompany loans		—			4,000			—			(4,000	)		—
Advances of intercompany loans		—			(3,210	)		—			3,210			—
Intercompany capital contributed		(17,000	)		(500	)		—			17,500			—
Other		(300	)		—			—			—			(300	)
Total investing activities		(39,576	)		(13,396	)		(7,299	)		16,710			(43,561	)
Financing activities
Net repayments of indebtedness		—			—			(1,926	)		—			(1,926	)
Payments of borrowing costs		(51	)		—			—			—			(51	)
Payment of dividends to shareholders		(5,231	)		—			—			—			(5,231	)
Repayments of intercompany loans		—			—			(4,000	)		4,000			—
Borrowings of intercompany loans		3,210			—			—			(3,210	)		—
Intercompany capital (returned) received		—			17,000			500			(17,500	)		—
Proceeds from government grants		1,861			2,000			—			—			3,861
Payments related to share-based compensation awards and other		(751	)		—			—			—			(751	)
Total financing activities		(962	)		19,000			(5,426	)		(16,710	)		(4,098	)
Effect of exchange rate on cash		—			—			1,176			—			1,176
Net increase (decrease) in cash		(29,975	)		5,530			(10,597	)		—			(35,042	)
Cash at the beginning of period		59,130			465			45,709			—			105,304
Cash at the end of period	$	29,155		$	5,995		$	35,112		$	—		$	70,262

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	(975	)	$	(3	)	$	3,133		$	—		$	2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(14,513	)		—			(7,236	)		—			(21,749	)
Proceeds from disposal plant, equipment and timberlands, net		1,513			1,213			—			—			2,726
Repayments from intercompany loans		—			31,556			—			(31,556	)		—
Advances of intercompany loans		—			(30,690	)		—			30,690			—
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(14,600	)		2,079			(7,236	)		(866	)		(20,623	)
Financing activities
Payments of borrowing costs		(1,008	)		—			—			—			(1,008	)
Payment of dividends to shareholders		(4,774	)		—			—			—			(4,774	)
Repayments of intercompany loans		—			—			(31,556	)		31,556			—
Borrowings of intercompany loans		30,690			—			—			(30,690	)		—
Payments related to share-based compensation awards and other		(1,408	)		—			—			—			(1,408	)
Total financing activities		23,500			—			(31,556	)		866			(7,190	)
Effect of exchange rate on cash		—			—			(2,609	)		—			(2,609	)
Net increase (decrease) in cash		7,925			2,076			(38,268	)		—			(28,267	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	50,133		$	2,585		$	18,852		$	—		$	71,570

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2015 Annual Report on Form 10-K.

Accounting Estimates

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

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting designed to simplify certain aspects of accounting for share-based awards. The new ASU requires entities to recognize as a component of income tax expense all excess tax benefits or deficiencies arising from the difference between compensation cost recognized and the intrinsic value at the time an option is exercised or, in the case of restricted stock and similar awards, the fair value upon vesting of an award. Previously such differences were recognized in additional paid in capital as part of an “APIC pool.” In addition, the ASU also requires entities to exclude excess tax benefits and tax deficiencies from the calculation of common share equivalents for purposes of calculating earnings per share. The new standard is required to be adopted either prospectively or retrospectively in the first quarter of 2017 and early adoption is permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require organizations such as us that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will be effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are in the process of assessing the impact this standard will have on us and expect to follow a modified retrospective method provided for under the standard.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted retrospectively for fiscal years beginning after December 15, 2017 and early adoption is permitted only for reporting periods beginning after December 31, 2016. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

Unamortized Debt Issuance Costs

The amount set forth for Long-term debt, net of current portion as of December 31, 2015, has been restated to retroactively adopt ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs to be presented as a direct deduction from the carrying value of the related debt instrument rather than as a deferred asset except for costs associated with a revolving line of credit. We adopted this standard in the first quarter of 2016 retroactive to December 31, 2015.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Details of Basic and Diluted Earnings Per Share (EPS)

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

	Three months ended March 31
In thousands, except per share	2016		2015
Net income	$	16,168	$	13,925
Weighted average common shares outstanding used in basic EPS		43,521		43,252
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		350		697
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,871		43,949
Earnings per share
Basic	$	0.37	$	0.32
Diluted		0.37		0.32

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

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

	March 31
In thousands	2016		2015
Three months ended		1,694		690

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Losses)

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months ended March 31, 2016 and 2015.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at January 1, 2016	$	(73,041	)	$	(225	)	$	(120,714	)	$	3,494		$	(190,486	)
Other comprehensive income before reclassifications (net of tax)		13,419			252			—			—			13,671
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(186	)		2,315			(58	)		2,071
Net current period other comprehensive income (loss)		13,419			66			2,315			(58	)		15,742
Balance at March 31, 2016	$	(59,622	)	$	(159	)	$	(118,399	)	$	3,436		$	(174,744	)
Balance at January 1, 2015	$	(34,224	)	$	2,356		$	(120,260	)	$	(2,742	)	$	(154,870	)
Other comprehensive income before reclassifications (net of tax)		(41,337	)		3,394			—			—			(37,943	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			(628	)		3,266			20			2,658
Net current period other comprehensive income (loss)		(41,337	)		2,766			3,266			20			(35,285	)
Balance at March 31, 2015	$	(75,561	)	$	5,122		$	(116,994	)	$	(2,722	)	$	(190,155	)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended March 31
In thousands	2016			2015
Description							Line Item in Statements of Income
Cash flow hedges (Note 12)
Gains on cash flow hedges	$	(298	)	$	(873	)	Costs of products sold
Tax expense		112			245		Income tax provision
Net of tax		(186	)		(628	)
Retirement plan obligations (Note 7)
Amortization of deferred benefit pension plan items
Prior service costs		503			567		Costs of products sold
		171			193		Selling, general and administrative
Actuarial losses		2,281			3,366		Costs of products sold
		773			1,140		Selling, general and administrative
		3,728			5,266
Tax benefit		(1,413	)		(2,000	)	Income tax provision
Net of tax		2,315			3,266
Amortization of deferred benefit other plan items
Prior service costs		(37	)		(57	)	Costs of products sold
		(8	)		(13	)	Selling, general and administrative
Actuarial losses		(42	)		82		Costs of products sold
		(9	)		18		Selling, general and administrative
		(96	)		30
Tax provision (benefit)		38			(10	)	Income tax provision
Net of tax		(58	)		20
Total reclassifications, net of tax	$	2,071		$	2,658

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

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

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

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013 - 2015		N/A
State		2011 - 2015		2011 - 2014
Canada (1)		2010 - 2015		N/A
Germany (1)		2012 - 2015		2007 - 2011
France		2013 - 2015		2011 - 2012
United Kingdom		2014 - 2015		N/A
Philippines		2012, 2015		2013, 2014

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

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

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

	Three months ended March 31
In millions	2016		2015
Interest expense	$	0.1	$	0.1
Penalties		—		—
	March 31		December 31
	2016		2015
Accrued interest payable	$	0.7	$	0.6

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

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

Summary of Stock Option Activity

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

Units	2016			2015
Balance at January 1,		674,523			888,942
Granted		220,105			119,882
Cancelled/forfeited		(116,640	)		(67,179	)
Shares delivered		(126,914	)		(178,467	)
Balance at March 31,		651,074			763,178

Compensation Expense for Stock Option Activity

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

	March 31
In thousands	2016		2015
Three months ended	$	467	$	367

Stock Only Stock Appreciation Rights (SOSARs) [Member]

Summary of Stock Option Activity

The following table sets forth information related to outstanding SOSARS.

	2016					2015
	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
SOSARS
Outstanding at January 1,		2,199,742		$	17.82		1,864,707		$	16.20
Granted		724,914			17.47		406,142			24.94
Exercised		—			—		(58,343	)		13.52
Canceled / forfeited		(24,712	)		26.90		—			—
Outstanding at March 31,		2,899,944		$	17.65		2,212,506		$	17.88
SOSAR Grants
Weighted average grant date fair value per share	$	4.04				$	7.54
Aggregate grant date fair value (in thousands)	$	2,919				$	3,063
Black-Scholes assumptions
Dividend yield		2.87	%				1.92	%
Risk free rate of return		1.34	%				1.64	%
Volatility		32.01	%				36.48	%
Expected life		6 yrs					6 yrs

Compensation Expense for Stock Option Activity

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

	March 31
In thousands	2016		2015
Three months ended	$	732	$	589

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Retirement Plans and Other Post-Retirement Benefits (Tables)

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

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

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

	Three months ended March 31
In thousands	2016			2015
Pension Benefits
Service cost	$	2,730		$	3,136
Interest cost		6,087			5,950
Expected return on plan assets		(11,386	)		(11,543	)
Amortization of prior service cost		674			760
Amortization of unrecognized loss		3,054			4,506
Net periodic benefit cost	$	1,159		$	2,809
Other Benefits
Service cost	$	323		$	413
Interest cost		540			563
Amortization of prior service cost		(45	)		(70	)
Amortization of unrecognized (gain)/loss		(51	)		100
Net periodic benefit cost	$	767		$	1,006

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Inventories (Tables)

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories, Net of Reserves

Inventories, net of reserves, were as follows:

	March 31		December 31
In thousands	2016		2015
Raw materials	$	64,134	$	60,098
In-process and finished		118,134		115,874
Supplies		73,235		71,242
Total	$	255,503	$	247,214

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt is summarized as follows:

	March 31			December 31
In thousands	2016			2015
Revolving credit facility, due Mar. 2020	$	61,482		$	58,792
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		10,166			10,109
2.05% Term Loan, due Mar. 2023		42,539			42,130
1.55% Term Loan, due Sep. 2025		2,969			2,839
Total long-term debt		367,156			363,870
Less current portion		(7,704	)		(7,366	)
Unamortized deferred issuance costs		(3,057	)		(3,208	)
Long-term debt, net of current portion	$	356,395		$	353,296

Summary of Debts Borrowed by Subsidiary

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, entered into a series of borrowing agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”) as summarized below:

Amounts in thousands	Original Principal		Interest Rate			Maturity
Borrowing date
Apr. 11, 2013	€	42,700		2.05	%		Mar. 2023
Sep. 4, 2014		10,000		2.40	%		Jun. 2022
Oct. 10, 2015		2,608		1.55	%		Sep. 2025

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Asset Retirement Obligation (Tables)

3 Months Ended

Mar. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Asset Retirement Obligation

Following is a summary of activity recorded during the first three months of 2016 and 2015:

In thousands	2016		2015
Balance at January 1,	$	419	$	4,114
Accretion		—		29
Payments		—		(419	)
Gain		—		(107	)
Balance at March 31,	$	419	$	3,617

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Carrying Value and Fair Value of Long-Term Debt

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

	March 31, 2016				December 31, 2015
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	61,482	$	61,482	$	58,792	$	58,792
Fixed-rate bonds		250,000		248,438		250,000		250,938
2.40% Term loan		10,166		9,911		10,109		10,535
2.05% Term loan		42,539		40,483		42,130		42,886
1.55% Term loan		2,969		2,496		2,839		2,524
Total	$	367,156	$	362,810	$	363,870	$	365,675

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Financial Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Fair Values of Derivative Instruments

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

In thousands	March 31 2016		December 31 2015		March 31 2016		December 31 2015
	Prepaid Expenses and Other				Other
Balance sheet caption	Current Assets				Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	1,160	$	955	$	1,416	$	1,545
Not designated as hedging:
Forward foreign currency exchange contracts	$	92	$	68	$	—	$	49

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

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

	Three months ended March 31
In thousands	2016			2015
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	298		$	873
Ineffective portion – other – net		(403	)		350
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	589		$	720

Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Loss)

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

In thousands	2016			2015
Balance at January 1,	$	(178	)	$	3,282
Deferred gains on cash flow hedges		307			4,703
Reclassified to earnings		(298	)		(873	)
Balance at March 31,	$	(169	)	$	7,112

Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
Euro / British Pound		11,370		10,527
Sell/Buy - buy notional
Euro / Philippine Peso		849,340		758,634
British Pound / Philippine Peso		592,719		542,063
Euro / U.S. Dollar		45,323		51,433
U.S. Dollar / Canadian Dollar		35,056		34,649
U.S. Dollar / Euro		23,580		—

Not Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

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

In thousands	March 31 2016		December 31 2015
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound		7,000		10,000
British Pound / Euro		3,500		3,500
Sell/Buy - buy notional
Euro / U.S. Dollar		7,500		12,500
British Pound / Euro		10,500		13,500

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Commitments, Contingencies and Legal Proceedings (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Reserves

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

	Three months ended March 31
In thousands	2016			2015
Balance at January 1,	$	17,105		$	16,223
Payments		(658	)		(16	)
Accruals		—			—
Balance at March 31,	$	16,447		$	16,207

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Financial and Other Information by Business Unit

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

Three months ended March 31 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2016		2015		2016		2015		2016		2015		2016			2015			2016			2015
Net sales	$	123.5	$	135.3	$	60.8	$	62.3	$	217.9	$	219.9	$	—		$	—		$	402.2		$	417.5
Energy and related sales, net		—		—		—		—		0.7		2.1		—			—			0.7			2.1
Total revenue		123.5		135.3		60.8		62.3		218.6		222.0		—			—			402.9			419.5
Cost of products sold		101.2		109.0		52.2		55.1		191.1		200.4		0.5			2.9			345.0			367.4
Gross profit (loss)		22.3		26.3		8.6		7.2		27.5		21.6		(0.5	)		(2.9	)		57.8			52.1
SG&A		11.1		11.6		2.0		1.9		12.5		12.1		6.3			5.6			31.9			31.3
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		—			(2.7	)		—			(2.7	)
Total operating income (loss)		11.2		14.7		6.6		5.3		15.0		9.5		(6.8	)		(5.8	)		26.0			23.5
Non-operating expense		—		—		—		—		—		—		(4.7	)		(4.6	)		(4.7	)		(4.6	)
Income (loss) before income taxes	$	11.2	$	14.7	$	6.6	$	5.3	$	15.0	$	9.5	$	(11.5	)	$	(10.4	)	$	21.2		$	18.9
Supplementary Data
Net tons sold (thousands)		36.9		38.0		24.5		24.1		205.8		198.7		—			—			267.2			260.7
Depreciation, depletion and amortization	$	7.1	$	6.7	$	2.3	$	2.2	$	6.7	$	6.6	$	0.5		$	0.5		$	16.6		$	16.0
Capital expenditures		6.3		5.9		14.7		1.3		22.0		13.2		0.3			1.3			43.3			21.7

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Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	217,888		$	18,646		$	184,466		$	(18,782	)	$	402,218
Energy and related sales, net		666			—			—			—			666
Total revenues		218,554			18,646			184,466			(18,782	)		402,884
Costs of products sold		191,959			18,050			153,814			(18,782	)		345,041
Gross profit		26,595			596			30,652			—			57,843
Selling, general and administrative expenses		18,445			(185	)		13,598			—			31,858
Loss on dispositions of plant, equipment and timberlands, net		2			—			22			—			24
Operating income		8,148			781			17,032			—			25,961
Other non-operating income (expense)
Interest expense		(4,415	)		—			(787	)		1,086			(4,116	)
Interest income		181			992			4			(1,086	)		91
Equity in earnings of subsidiaries		12,872			11,754			—			(24,626	)		—
Other, net		(542	)		20			(178	)		—			(700	)
Total other non-operating income (expense)		8,096			12,766			(961	)		(24,626	)		(4,725	)
Income before income taxes		16,244			13,547			16,071			(24,626	)		21,236
Income tax provision		76			675			4,317			—			5,068
Net income		16,168			12,872			11,754			(24,626	)		16,168
Other comprehensive income		15,742			13,553			13,117			(26,670	)		15,742
Comprehensive income	$	31,910		$	26,425		$	24,871		$	(51,296	)	$	31,910

Condensed Consolidating Statement of Income for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	219,876		$	20,150		$	198,098		$	(20,655	)	$	417,469
Energy and related sales, net		2,068			—			—			—			2,068
Total revenues		221,944			20,150			198,098			(20,655	)		419,537
Costs of products sold		203,682			19,334			165,068			(20,655	)		367,429
Gross profit		18,262			816			33,030			—			52,108
Selling, general and administrative expenses		17,182			497			13,593			—			31,272
Gains on dispositions of plant, equipment and timberlands, net		(1,471	)		(1,183	)		—			—			(2,654	)
Operating income		2,551			1,502			19,437			—			23,490
Other non-operating income (expense)
Interest expense		(4,817	)		—			(6,394	)		6,703			(4,508	)
Interest income		163			6,599			5			(6,702	)		65
Equity in earnings of subsidiaries		17,084			10,194			—			(27,278	)		—
Other, net		(715	)		(130	)		659			(1	)		(187	)
Total other non-operating income (expense)		11,715			16,663			(5,730	)		(27,278	)		(4,630	)
Income before income taxes		14,266			18,165			13,707			(27,278	)		18,860
Income tax provision		341			1,081			3,513			—			4,935
Net income		13,925			17,084			10,194			(27,278	)		13,925
Other comprehensive income (loss)		(35,285	)		(38,550	)		38,848			(298	)		(35,285	)
Comprehensive income (loss)	$	(21,360	)	$	(21,466	)	$	49,042		$	(27,576	)	$	(21,360	)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet as of March 31, 2016

In thousands	Parent Company		Guarantors		Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	29,155	$	5,995	$	35,112	$	—		$	70,262
Other current assets		199,170		247,480		257,534		(245,790	)		458,394
Plant, equipment and timberlands, net		305,347		14,782		415,794		—			735,923
Investments in subsidiaries		780,955		532,528		—		(1,313,483	)		—
Other assets		109,815		—		147,046		—			256,861
Total assets	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440
Liabilities and Shareholders’ Equity
Current liabilities	$	369,019	$	19,391	$	146,722	$	(245,789	)	$	289,343
Long-term debt		247,228		—		109,167		—			356,395
Deferred income taxes		31,118		125		50,397		—			81,640
Other long-term liabilities		86,905		314		16,672		—			103,891
Total liabilities		734,270		19,830		322,958		(245,789	)		831,269
Shareholders’ equity		690,172		780,955		532,528		(1,313,484	)		690,171
Total liabilities and shareholders’ equity	$	1,424,442	$	800,785	$	855,486	$	(1,559,273	)	$	1,521,440

Condensed Consolidating Balance Sheet as of December 31, 2015

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	59,130	$	465		$	45,709	$	—		$	105,304
Other current assets		199,690		238,515			239,367		(230,509	)		447,063
Plant, equipment and timberlands, net		286,334		1,114			411,416		—			698,864
Investments in subsidiaries		737,450		507,116			—		(1,244,566	)		—
Other assets		106,586		—			142,599		—			249,185
Total assets	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416
Liabilities and Shareholders’ Equity
Current liabilities	$	363,037	$	9,725		$	162,081	$	(230,523	)	$	304,320
Long-term debt		247,075		—			106,221		—			353,296
Deferred income taxes		28,561		(79	)		47,976		—			76,458
Other long-term liabilities		87,270		—			15,825		—			103,095
Total liabilities		725,943		9,646			332,103		(230,523	)		837,169
Shareholders’ equity		663,247		737,564			506,988		(1,244,552	)		663,247
Total liabilities and shareholders’ equity	$	1,389,190	$	747,210		$	839,091	$	(1,475,075	)	$	1,500,416

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2016

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	10,563		$	(74	)	$	952		$	—		$	11,441
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(22,297	)		(13,686	)		(7,311	)		—			(43,294	)
Proceeds from disposal plant, equipment and timberlands, net		21			—			12			—			33
Repayments from intercompany loans		—			4,000			—			(4,000	)		—
Advances of intercompany loans		—			(3,210	)		—			3,210			—
Intercompany capital contributed		(17,000	)		(500	)		—			17,500			—
Other		(300	)		—			—			—			(300	)
Total investing activities		(39,576	)		(13,396	)		(7,299	)		16,710			(43,561	)
Financing activities
Net repayments of indebtedness		—			—			(1,926	)		—			(1,926	)
Payments of borrowing costs		(51	)		—			—			—			(51	)
Payment of dividends to shareholders		(5,231	)		—			—			—			(5,231	)
Repayments of intercompany loans		—			—			(4,000	)		4,000			—
Borrowings of intercompany loans		3,210			—			—			(3,210	)		—
Intercompany capital (returned) received		—			17,000			500			(17,500	)		—
Proceeds from government grants		1,861			2,000			—			—			3,861
Payments related to share-based compensation awards and other		(751	)		—			—			—			(751	)
Total financing activities		(962	)		19,000			(5,426	)		(16,710	)		(4,098	)
Effect of exchange rate on cash		—			—			1,176			—			1,176
Net increase (decrease) in cash		(29,975	)		5,530			(10,597	)		—			(35,042	)
Cash at the beginning of period		59,130			465			45,709			—			105,304
Cash at the end of period	$	29,155		$	5,995		$	35,112		$	—		$	70,262

Condensed Consolidating Statement of Cash Flows for the Three months ended March 31, 2015

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by Operating activities	$	(975	)	$	(3	)	$	3,133		$	—		$	2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(14,513	)		—			(7,236	)		—			(21,749	)
Proceeds from disposal plant, equipment and timberlands, net		1,513			1,213			—			—			2,726
Repayments from intercompany loans		—			31,556			—			(31,556	)		—
Advances of intercompany loans		—			(30,690	)		—			30,690			—
Other		(1,600	)		—			—			—			(1,600	)
Total investing activities		(14,600	)		2,079			(7,236	)		(866	)		(20,623	)
Financing activities
Payments of borrowing costs		(1,008	)		—			—			—			(1,008	)
Payment of dividends to shareholders		(4,774	)		—			—			—			(4,774	)
Repayments of intercompany loans		—			—			(31,556	)		31,556			—
Borrowings of intercompany loans		30,690			—			—			(30,690	)		—
Payments related to share-based compensation awards and other		(1,408	)		—			—			—			(1,408	)
Total financing activities		23,500			—			(31,556	)		866			(7,190	)
Effect of exchange rate on cash		—			—			(2,609	)		—			(2,609	)
Net increase (decrease) in cash		7,925			2,076			(38,268	)		—			(28,267	)
Cash at the beginning of period		42,208			509			57,120			—			99,837
Cash at the end of period	$	50,133		$	2,585		$	18,852		$	—		$	71,570

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Earnings Per Share - Details of Basic and Diluted Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 16,168	$ 13,925
Weighted average common shares outstanding used in basic EPS	43,521	43,252
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs	350	697
Weighted average common shares outstanding and common share equivalents used in diluted EPS	43,871	43,949
Earnings per share
Basic	$ 0.37	$ 0.32
Diluted	$ 0.37	$ 0.32

XML

Earnings Per Share - Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Potential common shares	1,694	690

XML

Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (190,486)	$ (154,870)
Other comprehensive income before reclassifications (net of tax)	13,671	(37,943)
Amounts reclassified from accumulated other comprehensive income (net of tax)	2,071	2,658
Other comprehensive income (loss)	15,742	(35,285)
Ending Balance	(174,744)	(190,155)
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(73,041)	(34,224)
Other comprehensive income before reclassifications (net of tax)	13,419	(41,337)
Other comprehensive income (loss)	13,419	(41,337)
Ending Balance	(59,622)	(75,561)
Unrealized Gain (Loss) on Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(225)	2,356
Other comprehensive income before reclassifications (net of tax)	252	3,394
Amounts reclassified from accumulated other comprehensive income (net of tax)	(186)	(628)
Other comprehensive income (loss)	66	2,766
Ending Balance	(159)	5,122
Change in Pensions [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(120,714)	(120,260)
Amounts reclassified from accumulated other comprehensive income (net of tax)	2,315	3,266
Other comprehensive income (loss)	2,315	3,266
Ending Balance	(118,399)	(116,994)
Change in Other Postretirement Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	3,494	(2,742)
Amounts reclassified from accumulated other comprehensive income (net of tax)	(58)	20
Other comprehensive income (loss)	(58)	20
Ending Balance	$ 3,436	$ (2,722)

XML

Accumulated Other Comprehensive Income - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	$ (345,041)	$ (367,429)
Selling, general and administrative	(31,858)	(31,272)
Income tax provision	5,068	4,935
Net income	16,168	13,925
Reclassifications Out of Accumulated Other Comprehensive Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Net income	2,071	2,658
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs and Expenses	3,728	5,266
Income tax provision	(1,413)	(2,000)
Net income	2,315	3,266
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	503	567
Selling, general and administrative	171	193
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	2,281	3,366
Selling, general and administrative	773	1,140
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs and Expenses	(96)	30
Income tax provision	38	(10)
Net income	(58)	20
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(37)	(57)
Selling, general and administrative	(8)	(13)
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(42)	82
Selling, general and administrative	(9)	18
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Gains on Cash Flow Hedges [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(298)	(873)
Income tax provision	112	245
Net income	$ (186)	$ (628)

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits	$ 12.7	$ 12.2
Unrecognized tax benefits that would impact effective tax rate	11.2
Minimum [Member]
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	0.0
Maximum [Member]
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	$ 1.7

XML

Income Taxes - Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction (Detail)	3 Months Ended
	Mar. 31, 2016
Minimum [Member] | United States - Federal [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013
Minimum [Member] | United States - State [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2011
Examination in progress	2011
Minimum [Member] | Foreign Tax Authority [Member] | Canada [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010
Minimum [Member] | Foreign Tax Authority [Member] | Germany [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012
Examination in progress	2007
Minimum [Member] | Foreign Tax Authority [Member] | France [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013
Examination in progress	2011
Minimum [Member] | Foreign Tax Authority [Member] | United Kingdom [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2014
Minimum [Member] | Foreign Tax Authority [Member] | Philippines [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012
Examination in progress	2013
Maximum [Member] | United States - Federal [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Maximum [Member] | United States - State [Member] | United States [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Examination in progress	2014
Maximum [Member] | Foreign Tax Authority [Member] | Canada [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Maximum [Member] | Foreign Tax Authority [Member] | Germany [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Examination in progress	2011
Maximum [Member] | Foreign Tax Authority [Member] | France [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Examination in progress	2012
Maximum [Member] | Foreign Tax Authority [Member] | United Kingdom [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Maximum [Member] | Foreign Tax Authority [Member] | Philippines [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2015
Examination in progress	2014

XML

Income Taxes - Summary of Information Related to Interest and Penalties on Uncertain Tax Positions (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Interest expense	$ 0.1	$ 0.1
Penalties	0.0	$ 0.0
Accrued interest payable	$ 0.7		$ 0.6

XML

Stock-Based Compensation - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of stock	3 years
Vesting term	10 years
Restricted Stock Units (RSU) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The vesting graded scale	The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting.
Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants under performance share awards	191,548	100,801
Performance Share Awards (PSAs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative performance targets	3 years
Performance Share Awards (PSAs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative performance targets	2 years

XML

Stock-Based Compensation - Summary of RSU and PSA Activity (Detail) - Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member] - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	674,523	888,942
Granted	220,105	119,882
Canceled / forfeited	(116,640)	(67,179)
Shares delivered	(126,914)	(178,467)
Ending Balance	651,074	763,178

XML

Stock-Based Compensation - Compensation Expense for Periods (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 467	$ 367
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 732	$ 589

XML

Stock-Based Compensation - Schedule of Information Related to Outstanding SOSARS (Detail) - Stock Only Stock Appreciation Rights (SOSARs) [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Outstanding	2,199,742	1,864,707
Granted	724,914	406,142
Exercised		(58,343)
Canceled / forfeited	(24,712)
Ending Balance, Outstanding	2,899,944	2,212,506
Beginning Balance, Weighted Average Exercise Price, Outstanding	$ 17.82	$ 16.20
Weighted Average Exercise Price, Granted	17.47	24.94
Weighted Average Exercise Price, Exercised		13.52
Weighted Average Exercise Price, Canceled / forfeited	26.90
Ending Balance, Weighted Average Exercise Price, Outstanding	17.65	17.88
Weighted average grant date fair value per share	$ 4.04	$ 7.54
Aggregate grant date fair value	$ 2,919	$ 3,063
Black-Scholes assumptions
Dividend yield	2.87%	1.92%
Risk free rate of return	1.34%	1.64%
Volatility	32.01%	36.48%
Expected life	6 years	6 years

XML

Retirement Plans and Other Post-Retirement Benefits - Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,730	$ 3,136
Interest cost	6,087	5,950
Expected return on plan assets	(11,386)	(11,543)
Amortization of prior service cost	674	760
Amortization of unrecognized (gain)/loss	3,054	4,506
Net periodic benefit cost	1,159	2,809
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	323,000	413,000
Interest cost	540,000	563,000
Amortization of prior service cost	(45,000)	(70,000)
Amortization of unrecognized (gain)/loss	(51,000)	100,000
Net periodic benefit cost	$ 767,000	$ 1,006,000

XML

Inventories - Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 64,134	$ 60,098
In-process and finished	118,134	115,874
Supplies	73,235	71,242
Total	$ 255,503	$ 247,214

XML

Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total long-term debt	$ 367,156	$ 363,870
Less current portion	(7,704)	(7,366)
Unamortized deferred issuance costs	(3,057)	(3,208)
Long-term debt, net of current portion	356,395	353,296
Total long-term debt	367,156	363,870
Revolving Credit Facility, Due Mar. 2020 [Member]
Debt Instrument [Line Items]
Total long-term debt	61,482	58,792
Total long-term debt	61,482	58,792
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Total long-term debt	250,000	250,000
Long-term debt, net of current portion	250,000	250,000
Total long-term debt	250,000	250,000
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Total long-term debt	10,166	10,109
Total long-term debt	10,166	10,109
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Total long-term debt	42,539	42,130
Total long-term debt	42,539	42,130
1.55% Term Loan, Due Sep. 2025 [Member]
Debt Instrument [Line Items]
Total long-term debt	2,969	2,839
Total long-term debt	$ 2,969	$ 2,839

XML

Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Revolving Credit Facility, Due Mar. 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Mar. 31, 2020
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Oct. 31, 2020
Interest rate on debt	5.375%	5.375%
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Jun. 30, 2022
Interest rate on debt	2.40%	2.40%
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Mar. 31, 2023
Interest rate on debt	2.05%	2.05%
1.55% Term Loan, Due Sep. 2025 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Sep. 30, 2025
Interest rate on debt	1.55%	1.55%

XML

Long-Term Debt - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 12, 2015 USD ($)	Oct. 03, 2012 USD ($)
Debt Instrument [Line Items]
Leverage ratio	1.8
Maximum [Member]
Debt Instrument [Line Items]
Leverage ratio	3.5
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 400,000,000
Long-term debt, maturity date	Mar. 12, 2020
Federal fund rate spread	1.00%
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Federal fund rate spread	0.125%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Federal fund rate spread	1.00%
Revolving Credit Facility [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Federal fund rate spread	0.50%
Revolving Credit Facility [Member] | Daily Euro Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Federal fund rate spread	1.125%
Revolving Credit Facility [Member] | Daily Euro Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Federal fund rate spread	2.00%
Letters of Credit [Member]
Debt Instrument [Line Items]
Letters of credit issued	$ 5,100,000	$ 5,300,000
Letters of credit outstanding	$ 0
5.375% Notes [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Oct. 15, 2020
Aggregate principal amount				$ 250,000,000
Percentage of aggregate principal amount of outstanding	5.375%			5.375%
Frequency of interest payable	Semiannually
Debt instrument redemption	The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a "make-whole" premium as specified in the Indenture.

XML

Long-Term Debt - Summary of Debts Borrowed by Subsidiary (Detail) - IKB Deutsche Industriebank AG Borrowing Agreements [Member] - Glatfelter Gernsbach GmbH and Co KG [Member] - IKB Deutsche Industriebank AG Member - EUR (€) € in Thousands	Oct. 10, 2015	Sep. 04, 2014	Apr. 11, 2013
Debt Instrument [Line Items]
Original Principal	€ 2,608	€ 10,000	€ 42,700
Interest Rate	1.55%	2.40%	2.05%
Maturity	Sep. 30, 2025	Jun. 30, 2022	Mar. 31, 2023

XML

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

XML

Asset Retirement Obligation - Schedule of Asset Retirement Obligation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Balance at January 1,	$ 419	$ 4,114
Accretion	0	29
Payments	0	(419)
Gain	0	(107)
Balance at March 31,	$ 419	$ 3,617

XML

Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 367,156	$ 363,870
Fair Value	362,810	365,675
2.40% Term Loan, Due Jun. 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	10,166	10,109
Fair Value	9,911	10,535
2.05% Term Loan, Due Mar. 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	42,539	42,130
Fair Value	40,483	42,886
Revolving Credit Facility Due Mar. 2020 And Nov. 2016 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	61,482	58,792
Fair Value	61,482	58,792
5.375% Notes, Due Oct. 2020 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	250,000	250,000
Fair Value	248,438	250,938
1.55% Term Loan, Due Sep. 2025 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	2,969	2,839
Fair Value	$ 2,496	$ 2,524

XML

Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Parenthetical) (Detail)	Mar. 31, 2016	Dec. 31, 2015
2.40% Term Loan, Due Jun. 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percent on aggregate principal amount of outstanding	2.40%	2.40%
2.05% Term Loan, Due Mar. 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percent on aggregate principal amount of outstanding	2.05%	2.05%
1.55% Term Loan, Due Sep. 2025 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percent on aggregate principal amount of outstanding	1.55%	1.55%

XML

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of fixed rate debt	$ 356,395	$ 353,296
5.375% Notes, Due Oct. 2020 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of fixed rate debt	$ 250,000	$ 250,000
Interest rate on debt	5.375%	5.375%

XML

Financial Derivatives and Hedging Activities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Designated as Hedging [Member]
Derivative [Line Items]
Maturities of foreign currency derivative contracts	28 months
Designated as Hedging [Member] | Maximum [Member]
Derivative [Line Items]
Period of production costs expected to be incurred	28 months
Not Designated as Hedging [Member]
Derivative [Line Items]
Maturities of foreign currency derivative contracts	1 month
Fair Value, Measurements [Member] | Maximum [Member]
Derivative [Line Items]
Accumulated other comprehensive income realization period	28 months
Fair Value, Measurements [Member] | Minimum [Member]
Derivative [Line Items]
Accumulated other comprehensive income realization period	12 months

XML

Financial Derivatives and Hedging Activities - Outstanding Derivatives Used to Hedge Foreign Exchange Risks (Detail)	Mar. 31, 2016 EUR (€)	Mar. 31, 2016 USD ($)	Mar. 31, 2016 PHP	Mar. 31, 2016 CAD	Mar. 31, 2016 GBP (£)	Dec. 31, 2015 EUR (€)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 PHP	Dec. 31, 2015 CAD	Dec. 31, 2015 GBP (£)
Cash Flow Hedges [Member] | Euro / British Pound [Member] | Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	€ 11,370,000					€ 10,527,000
Cash Flow Hedges [Member] | Euro / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | PHP			PHP 849,340,000					PHP 758,634,000
Cash Flow Hedges [Member] | British Pound / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | PHP			PHP 592,719,000					PHP 542,063,000
Cash Flow Hedges [Member] | Euro / U.S. Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		$ 45,323,000					$ 51,433,000
Cash Flow Hedges [Member] | U.S. Dollar / Canadian Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | CAD				CAD 35,056,000					CAD 34,649,000
Cash Flow Hedges [Member] | U.S Dollar / Euro [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	23,580,000
Foreign Currency Hedges [Member] | Euro / U.S. Dollar [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		7,500,000					12,500,000
Foreign Currency Hedges [Member] | U.S. Dollar / British Pound [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | $		$ 7,000,000					$ 10,000,000
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | £					£ 3,500,000					£ 3,500,000
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	€ 10,500,000					€ 13,500,000

XML

Financial Derivatives and Hedging Activities - Fair Values of Derivative Instruments (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 1,160	$ 955
Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	1,416	1,545
Not Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 92	68
Not Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value		$ 49

XML

Financial Derivatives and Hedging Activities - Income or (Loss) from Derivative Instruments Recognized in Results of Operations (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Costs of Products Sold [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion of derivative instruments, gain (loss)	$ 298	$ 873
Other - Net [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Ineffective portion of derivative instruments, gain (loss)	(403)	350
Other - Net [Member] | Not Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss)	$ 589	$ 720

XML

Financial Derivatives and Hedging Activities - Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance at January 1,	$ (178)	$ 3,282
Deferred gains on cash flow hedges	307	4,703
Reclassified to earnings	(298)	(873)
Balance at March 31,	$ (169)	$ 7,112

XML

Commitments, Contingencies and Legal Proceedings - Additional Information (Detail)			1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 14, 2014 USD ($)	Sep. 25, 2014	Jan. 31, 2008	Mar. 31, 2016 USD ($) Operable_Unit	Dec. 31, 2015 USD ($)
Commitments Contingencies And Litigation [Line Items]
Number of operable units | Operable_Unit				5
Upper end estimate of total past and future response costs	$ 1,100,000,000
Estimated future cost of work yet to be done	575,000,000
Reserve for Environmental liabilities, current portion				$ 11,890,000	$ 12,544,000
Cost of response incurred by government				4,280,000
Initial minimum amount of NRD assessment				176,000,000
Initial maximum amount of NRD assessment				333,000,000
Revised minimum amount of NRD assessment				287,000,000
Revised maximum amount of NRD assessment				$ 423,000,000
Reserve for environmental liability, expected compensation payments	45,900,000
Environmental loss contingencies	105,000,000
Other prepaid loss contingencies for earlier settlements	59,000,000
Maximum estimated percentage of discharge				27.00%
Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Remaining costs and damages amount					33,000,000
NCR and GP [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Costs and damages amount					67,000,000
NCR and GP [Member] | 2016 Work Plan [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Annual estimated cost rate seek by Government				$ 100,000,000
OU2-5 [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated future cost of remediation					9,700,000
Estimated future cost of work yet to be done	100,000,000
Annual estimated cost rate seek by Government				100,000,000
NCR costs and damages percentage		100.00%
OU2-5 [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
NCR costs and damages percentage			100.00%
OU2-5 [Member] | 2015 Work Plan [Member]
Commitments Contingencies And Litigation [Line Items]
Annual remediation cost rate seek by Government					$ 100,000,000
OU1 [Member]
Commitments Contingencies And Litigation [Line Items]
Uncertainty premium for future response costs	$ 100,000,000
Maximum [Member]
Commitments Contingencies And Litigation [Line Items]
Estimated cost related to Fox River matter				$ 175,000,000
Period over which estimated cost to be incurred				3 years
Maximum [Member] | OU2-5 [Member]
Commitments Contingencies And Litigation [Line Items]
Reserve for Environmental liabilities, current portion				$ 10,000,000
Maximum [Member] | OU2-5 [Member] | 2016 Work Plan [Member] | Whiting Litigation [Member]
Commitments Contingencies And Litigation [Line Items]
Reserve for Environmental liabilities, current portion				$ 10,000,000
Minimum [Member]
Commitments Contingencies And Litigation [Line Items]
Period over which estimated cost to be incurred				2 years
Minimum [Member] | Appvion [Member]
Commitments Contingencies And Litigation [Line Items]
Litigation claim amount				$ 200,000,000

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Commitments, Contingencies and Legal Proceedings - Schedule of Reserves (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Environmental Remediation Obligations [Abstract]
Beginning balance	$ 17,105	$ 16,223
Payments	(658)	(16)
Accruals	0	0
Ending balance	$ 16,447	$ 16,207

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Segment Information - Schedule of Financial and Other Information by Business Unit (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) T	Mar. 31, 2015 USD ($) T
Segment Reporting Information [Line Items]
Net sales	$ 402,218,000	$ 417,469,000
Energy and related sales, net	666,000	2,068,000
Total revenue	402,884,000	419,537,000
Cost of products sold	345,041,000	367,429,000
Gross profit (loss)	57,843,000	52,108,000
SG&A	31,858,000	31,272,000
Gains on dispositions of plant, equipment and timberlands, net	24,000	(2,654,000)
Total operating income (loss)	25,961,000	23,490,000
Non-operating expense	(4,725,000)	(4,630,000)
Income (loss) before income taxes	$ 21,236,000	$ 18,860,000
Supplementary Data
Net tons sold | T	267,200	260,700
Depreciation, depletion and amortization	$ 16,646,000	$ 15,975,000
Capital expenditures	43,300,000	21,700,000
Composite Fibers [Member]
Segment Reporting Information [Line Items]
Net sales	123,500,000	135,300,000
Total revenue	123,500,000	135,300,000
Cost of products sold	101,200,000	109,000,000
Gross profit (loss)	22,300,000	26,300,000
SG&A	11,100,000	11,600,000
Total operating income (loss)	11,200,000	14,700,000
Income (loss) before income taxes	$ 11,200,000	$ 14,700,000
Supplementary Data
Net tons sold | T	36,900	38,000
Depreciation, depletion and amortization	$ 7,100,000	$ 6,700,000
Capital expenditures	6,300,000	5,900,000
Advanced Airlaid Materials [Member]
Segment Reporting Information [Line Items]
Net sales	60,800,000	62,300,000
Total revenue	60,800,000	62,300,000
Cost of products sold	52,200,000	55,100,000
Gross profit (loss)	8,600,000	7,200,000
SG&A	2,000,000	1,900,000
Total operating income (loss)	6,600,000	5,300,000
Income (loss) before income taxes	$ 6,600,000	$ 5,300,000
Supplementary Data
Net tons sold | T	24,500	24,100
Depreciation, depletion and amortization	$ 2,300,000	$ 2,200,000
Capital expenditures	14,700,000	1,300,000
Specialty Papers [Member]
Segment Reporting Information [Line Items]
Net sales	217,900,000	219,900,000
Energy and related sales, net	700,000	2,100,000
Total revenue	218,600,000	222,000,000
Cost of products sold	191,100,000	200,400,000
Gross profit (loss)	27,500,000	21,600,000
SG&A	12,500,000	12,100,000
Total operating income (loss)	15,000,000	9,500,000
Income (loss) before income taxes	$ 15,000,000	$ 9,500,000
Supplementary Data
Net tons sold | T	205,800	198,700
Depreciation, depletion and amortization	$ 6,700,000	$ 6,600,000
Capital expenditures	22,000,000	13,200,000
Other and Unallocated [Member]
Segment Reporting Information [Line Items]
Cost of products sold	500,000	2,900,000
Gross profit (loss)	(500,000)	(2,900,000)
SG&A	6,300,000	5,600,000
Gains on dispositions of plant, equipment and timberlands, net		(2,700,000)
Total operating income (loss)	(6,800,000)	(5,800,000)
Non-operating expense	(4,700,000)	(4,600,000)
Income (loss) before income taxes	(11,500,000)	(10,400,000)
Supplementary Data
Depreciation, depletion and amortization	500,000	500,000
Capital expenditures	$ 300,000	$ 1,300,000

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Condensed Consolidating Financial Statements - Additional Information (Detail)	Mar. 31, 2016	Oct. 03, 2012
PHG Tea Leaves, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Mollanvick, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Composite Fibers N. A., Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Advanced Materials N.A., Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
5.375% Notes [Member]
Schedule of Equity Method Investments [Line Items]
Interest rate on notes guaranteed	5.375%	5.375%

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Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Income Statements, Captions [Line Items]
Net sales	$ 402,218	$ 417,469
Energy and related sales, net	666	2,068
Total revenues	402,884	419,537
Costs of products sold	345,041	367,429
Gross profit	57,843	52,108
Selling, general and administrative expenses	31,858	31,272
Losses (gains) on dispositions of plant, equipment and timberlands, net	24	(2,654)
Operating income	25,961	23,490
Other non-operating income (expense)
Interest expense	(4,116)	(4,508)
Interest income	91	65
Other, net	(700)	(187)
Total non-operating expense	(4,725)	(4,630)
Income before income taxes	21,236	18,860
Income tax provision	5,068	4,935
Net income	16,168	13,925
Other comprehensive income	15,742	(35,285)
Comprehensive income	31,910	(21,360)
Adjustments/ Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	(18,782)	(20,655)
Total revenues	(18,782)	(20,655)
Costs of products sold	(18,782)	(20,655)
Other non-operating income (expense)
Interest expense	1,086	6,703
Interest income	(1,086)	(6,702)
Equity in earnings of subsidiaries	(24,626)	(27,278)
Other, net		(1)
Total non-operating expense	(24,626)	(27,278)
Income before income taxes	(24,626)	(27,278)
Net income	(24,626)	(27,278)
Other comprehensive income	(26,670)	(298)
Comprehensive income	(51,296)	(27,576)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	217,888	219,876
Energy and related sales, net	666	2,068
Total revenues	218,554	221,944
Costs of products sold	191,959	203,682
Gross profit	26,595	18,262
Selling, general and administrative expenses	18,445	17,182
Losses (gains) on dispositions of plant, equipment and timberlands, net	2	(1,471)
Operating income	8,148	2,551
Other non-operating income (expense)
Interest expense	(4,415)	(4,817)
Interest income	181	163
Equity in earnings of subsidiaries	12,872	17,084
Other, net	(542)	(715)
Total non-operating expense	8,096	11,715
Income before income taxes	16,244	14,266
Income tax provision	76	341
Net income	16,168	13,925
Other comprehensive income	15,742	(35,285)
Comprehensive income	31,910	(21,360)
Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	18,646	20,150
Total revenues	18,646	20,150
Costs of products sold	18,050	19,334
Gross profit	596	816
Selling, general and administrative expenses	(185)	497
Losses (gains) on dispositions of plant, equipment and timberlands, net		(1,183)
Operating income	781	1,502
Other non-operating income (expense)
Interest income	992	6,599
Equity in earnings of subsidiaries	11,754	10,194
Other, net	20	(130)
Total non-operating expense	12,766	16,663
Income before income taxes	13,547	18,165
Income tax provision	675	1,081
Net income	12,872	17,084
Other comprehensive income	13,553	(38,550)
Comprehensive income	26,425	(21,466)
Non Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	184,466	198,098
Total revenues	184,466	198,098
Costs of products sold	153,814	165,068
Gross profit	30,652	33,030
Selling, general and administrative expenses	13,598	13,593
Losses (gains) on dispositions of plant, equipment and timberlands, net	22
Operating income	17,032	19,437
Other non-operating income (expense)
Interest expense	(787)	(6,394)
Interest income	4	5
Other, net	(178)	659
Total non-operating expense	(961)	(5,730)
Income before income taxes	16,071	13,707
Income tax provision	4,317	3,513
Net income	11,754	10,194
Other comprehensive income	13,117	38,848
Comprehensive income	$ 24,871	$ 49,042

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Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 70,262	$ 105,304	$ 71,570	$ 99,837
Other current assets	458,394	447,063
Plant, equipment and timberlands, net	735,923	698,864
Other assets	256,861	249,185
Total assets	1,521,440	1,500,416
Liabilities and Shareholders' Equity
Current liabilities	289,343	304,320
Long-term debt	356,395	353,296
Deferred income taxes	81,640	76,458
Other long-term liabilities	103,891	103,095
Total liabilities	831,269	837,169
Shareholders' equity	690,171	663,247
Total liabilities and shareholders' equity	1,521,440	1,500,416
Adjustments/ Eliminations [Member]
Assets
Other current assets	(245,790)	(230,509)
Investments in subsidiaries	(1,313,483)	(1,244,566)
Total assets	(1,559,273)	(1,475,075)
Liabilities and Shareholders' Equity
Current liabilities	(245,789)	(230,523)
Total liabilities	(245,789)	(230,523)
Shareholders' equity	(1,313,484)	(1,244,552)
Total liabilities and shareholders' equity	(1,559,273)	(1,475,075)
Parent Company [Member]
Assets
Cash and cash equivalents	29,155	59,130	50,133	42,208
Other current assets	199,170	199,690
Plant, equipment and timberlands, net	305,347	286,334
Investments in subsidiaries	780,955	737,450
Other assets	109,815	106,586
Total assets	1,424,442	1,389,190
Liabilities and Shareholders' Equity
Current liabilities	369,019	363,037
Long-term debt	247,228	247,075
Deferred income taxes	31,118	28,561
Other long-term liabilities	86,905	87,270
Total liabilities	734,270	725,943
Shareholders' equity	690,172	663,247
Total liabilities and shareholders' equity	1,424,442	1,389,190
Guarantors [Member]
Assets
Cash and cash equivalents	5,995	465	2,585	509
Other current assets	247,480	238,515
Plant, equipment and timberlands, net	14,782	1,114
Investments in subsidiaries	532,528	507,116
Total assets	800,785	747,210
Liabilities and Shareholders' Equity
Current liabilities	19,391	9,725
Deferred income taxes	125	(79)
Other long-term liabilities	314
Total liabilities	19,830	9,646
Shareholders' equity	780,955	737,564
Total liabilities and shareholders' equity	800,785	747,210
Non Guarantors [Member]
Assets
Cash and cash equivalents	35,112	45,709	$ 18,852	$ 57,120
Other current assets	257,534	239,367
Plant, equipment and timberlands, net	415,794	411,416
Other assets	147,046	142,599
Total assets	855,486	839,091
Liabilities and Shareholders' Equity
Current liabilities	146,722	162,081
Long-term debt	109,167	106,221
Deferred income taxes	50,397	47,976
Other long-term liabilities	16,672	15,825
Total liabilities	322,958	332,103
Shareholders' equity	532,528	506,988
Total liabilities and shareholders' equity	$ 855,486	$ 839,091

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Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	$ 11,441	$ 2,155
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(43,294)	(21,749)
Proceeds from disposal plant, equipment and timberlands, net	33	2,726
Other	(300)	(1,600)
Net cash used by investing activities	(43,561)	(20,623)
Financing activities
Net repayments of indebtedness	(1,926)
Payments of borrowing costs	(51)	(1,008)
Payment of dividends to shareholders	(5,231)	(4,774)
Proceeds from government grants	3,861
Payments related to share-based compensation awards and other	(751)	(1,408)
Net cash used by financing activities	(4,098)	(7,190)
Effect of exchange rate on cash	1,176	(2,609)
Net increase (decrease) in cash	(35,042)	(28,267)
Cash and cash equivalents at the beginning of period	105,304	99,837
Cash and cash equivalents at the end of period	70,262	71,570
Adjustments/ Eliminations [Member]
Investing activities
Repayments from intercompany loans	(4,000)	(31,556)
Advances of intercompany loans	3,210	30,690
Intercompany capital contributed	17,500
Net cash used by investing activities	16,710	(866)
Financing activities
Repayments of intercompany loans	4,000	31,556
Borrowings of intercompany loans	(3,210)	(30,690)
Intercompany capital (returned) received	(17,500)
Net cash used by financing activities	(16,710)	866
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	10,563	(975)
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(22,297)	(14,513)
Proceeds from disposal plant, equipment and timberlands, net	21	1,513
Intercompany capital contributed	(17,000)
Other	(300)	(1,600)
Net cash used by investing activities	(39,576)	(14,600)
Financing activities
Payments of borrowing costs	(51)
Payment of dividends to shareholders	(5,231)	(4,774)
Borrowings of intercompany loans	3,210	30,690
Proceeds from government grants	1,861
Payments related to share-based compensation awards and other	(751)
Net cash used by financing activities	(962)	23,500
Net increase (decrease) in cash	(29,975)	7,925
Cash and cash equivalents at the beginning of period	59,130	42,208
Cash and cash equivalents at the end of period	29,155	50,133
Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	(74)	(3)
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(13,686)
Proceeds from disposal plant, equipment and timberlands, net		1,213
Repayments from intercompany loans	4,000	31,556
Advances of intercompany loans	(3,210)	(30,690)
Intercompany capital contributed	(500)
Net cash used by investing activities	(13,396)	2,079
Financing activities
Intercompany capital (returned) received	17,000
Proceeds from government grants	2,000
Net cash used by financing activities	19,000
Net increase (decrease) in cash	5,530	2,076
Cash and cash equivalents at the beginning of period	465	509
Cash and cash equivalents at the end of period	5,995	2,585
Non Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	952	3,133
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(7,311)	(7,236)
Proceeds from disposal plant, equipment and timberlands, net	12
Net cash used by investing activities	(7,299)	(7,236)
Financing activities
Net repayments of indebtedness	(1,926)
Repayments of intercompany loans	(4,000)	(31,556)
Intercompany capital (returned) received	500
Net cash used by financing activities	(5,426)	(31,556)
Effect of exchange rate on cash	1,176	(2,609)
Net increase (decrease) in cash	(10,597)	(38,268)
Cash and cash equivalents at the beginning of period	45,709	57,120
Cash and cash equivalents at the end of period	$ 35,112	$ 18,852