Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Consolidating Statement of Income for the three months ended March 31, 2017

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	205,771		$	19,533		$	185,887		$	(20,478	)	$	390,713
Energy and related sales, net		1,129			—			—			—			1,129
Total revenues		206,900			19,533			185,887			(20,478	)		391,842
Costs of products sold		183,946			18,586			152,859			(20,478	)		334,913
Gross profit		22,954			947			33,028			—			56,929
Selling, general and administrative
expenses		20,371			74			14,641			—			35,086
Loss on dispositions of plant
equipment and timberlands, net		32			—			—			—			32
Operating income		2,551			873			18,387			—			21,811
Other non-operating
income (expense)
Interest expense		(4,661	)		(113	)		(504	)		1,270			(4,008	)
Interest income		149			1,161			73			(1,270	)		113
Equity in earnings of subsidiaries		13,617			13,852			—			(27,469	)		—
Other, net		493			(2,206	)		1,434			—			(279	)
Total other non-operating
income (expense)		9,598			12,694			1,003			(27,469	)		(4,174	)
Income before income taxes		12,149			13,567			19,390			(27,469	)		17,637
Income tax provision		546			(50	)		5,538			—			6,034
Net income		11,603			13,617			13,852			(27,469	)		11,603
Other comprehensive income		7,193			5,102			5,014			(10,116	)		7,193
Comprehensive income	$	18,796		$	18,719		$	18,866		$	(37,585	)	$	18,796

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 Balance Sheet as of March 31, 2017

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	5,220	$	2,653		$	49,354	$	—		$	57,227
Other current assets		221,540		266,193			253,831		(282,137	)		459,427
Plant, equipment and timberlands, net		373,725		48,238			382,034		—			803,997
Investments in subsidiaries		808,301		559,296			—		(1,367,597	)		—
Other assets		125,388		—			128,727		—			254,115
Total assets	$	1,534,174	$	876,380		$	813,946	$	(1,649,734	)	$	1,574,766
Liabilities and Shareholders' Equity
Current liabilities	$	421,731	$	42,433		$	138,808	$	(282,137	)	$	320,835
Long-term debt		321,839		26,000			52,631		—			400,470
Deferred income taxes		11,505		(668	)		46,993		—			57,830
Other long-term liabilities		110,313		314			16,218		—			126,845
Total liabilities		865,388		68,079			254,650		(282,137	)		905,980
Shareholders’ equity		668,786		808,301			559,296		(1,367,597	)		668,786
Total liabilities and shareholders’ equity	$	1,534,174	$	876,380		$	813,946	$	(1,649,734	)	$	1,574,766

Condensed Consolidating Balance Sheet as of December 31, 2016

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	5,082	$	1,461		$	48,901	$	—		$	55,444
Other current assets		206,002		256,289			242,187		(265,663	)		438,815
Plant, equipment and timberlands, net		360,521		31,455			383,922		—			775,898
Investments in subsidiaries		789,565		540,029			—		(1,329,594	)		—
Other assets		123,010		—			128,092		—			251,102
Total assets	$	1,484,180	$	829,234		$	803,102	$	(1,595,257	)	$	1,521,259
Liabilities and Shareholders' Equity
Current liabilities	$	426,628	$	26,085		$	135,961	$	(265,663	)	$	323,011
Long-term debt		283,686		14,000			65,961		—			363,647
Deferred income taxes		10,221		(729	)		45,503		—			54,995
Other long-term liabilities		109,819		313			15,648		—			125,780
Total liabilities		830,354		39,669			263,073		(265,663	)		867,433
Shareholders’ equity		653,826		789,565			540,029		(1,329,594	)		653,826
Total liabilities and shareholders’ equity	$	1,484,180	$	829,234		$	803,102	$	(1,595,257	)	$	1,521,259

Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2017

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	(19,330	)	$	(307	)	$	27,839		$	(641	)	$	7,561
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(21,515	)		(9,551	)		(5,717	)		—			(36,783	)
Repayments from intercompany loans		—			8,000			—			(8,000	)		—
Advances of intercompany loans		—			(8,550	)		—			8,550			—
Intercompany capital contributed		—			(400	)		—			400			—
Total investing activities		(21,515	)		(10,501	)		(5,717	)		950			(36,783	)
Financing activities
Net long-term borrowings		38,000			12,000			(13,954	)		—			36,046
Payment of dividends to shareholders		(5,455	)		—			—			—			(5,455	)
Repayments of intercompany loans		—			—			(8,000	)		8,000			—
Borrowings of intercompany loans		8,550			—			—			(8,550	)		—
Intercompany capital received		—			—			400			(400	)		—
Payment of intercompany dividend		—			—			(641	)		641			—
Payments related to share-based compensation awards and other		(112	)		—			—			—			(112	)
Total financing activities		40,983			12,000			(22,195	)		(309	)		30,479
Effect of exchange rate on cash		—			—			526			—			526
Net increase in cash		138			1,192			453			—			1,783
Cash at the beginning of period		5,082			1,461			48,901			—			55,444
Cash at the end of period	$	5,220		$	2,653		$	49,354		$	—		$	57,227

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 disposals of 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) returned		(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