Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Statement of Income for the three months ended March 31, 2018

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	199,439		$	20,013		$	216,135		$	(24,940	)	$	410,647
Energy and related sales, net		1,428			—			—			—			1,428
Total revenues		200,867			20,013			216,135			(24,940	)		412,075
Costs of products sold		191,165			18,265			178,679			(24,940	)		363,169
Gross profit		9,702			1,748			37,456			—			48,906
Selling, general and administrative
expenses		20,437			2,005			14,621			—			37,063
Gain on dispositions of plant
equipment and timberlands, net		(438	)		(1,115	)		(1	)		—			(1,554	)
Operating income (loss)		(10,297	)		858			22,836			—			13,397
Other non-operating
income (expense)
Interest expense		(5,682	)		(455	)		(428	)		1,370			(5,195	)
Interest income		146			1,244			34			(1,370	)		54
Equity in earnings of subsidiaries		21,233			22,255			—			(43,488	)		—
Other, net		(2,413	)		(3,263	)		5,905			—			229
Total other non-operating
income (expense)		13,284			19,781			5,511			(43,488	)		(4,912	)
Income before income taxes		2,987			20,639			28,347			(43,488	)		8,485
Income tax provision (benefit)		(2,729	)		(594	)		6,092			—			2,769
Net income		5,716			21,233			22,255			(43,488	)		5,716
Other comprehensive income		14,020			11,036			12,035			(23,071	)		14,020
Comprehensive income	$	19,736		$	32,269		$	34,290		$	(66,559	)	$	19,736

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		185,246			18,586			152,859			(20,478	)		336,213
Gross profit		21,654			947			33,028			—			55,629
Selling, general and administrative
expenses		20,162			74			14,641			—			34,877
Loss on dispositions of plant
equipment and timberlands, net		32			—			—			—			32
Operating income		1,460			873			18,387			—			20,720
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		1,584			(2,206	)		1,434			—			812
Total other non-operating
income (expense)		10,689			12,694			1,003			(27,469	)		(3,083	)
Income before income taxes		12,149			13,567			19,390			(27,469	)		17,637
Income tax provision (benefit)		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 Balance Sheet as of March 31, 2018

In thousands	Parent Company		Guarantors		Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	1,022	$	1,266	$	114,989	$	-		$	117,277
Other current assets		250,524		237,841		296,093		(293,035	)		491,423
Plant, equipment and timberlands, net		370,669		87,000		413,065		—			870,734
Investments in subsidiaries		842,154		667,419		—		(1,509,573	)		—
Other assets		142,088		—		143,090		—			285,178
Total assets	$	1,606,457	$	993,526	$	967,237	$	(1,802,608	)	$	1,764,612
Liabilities and Shareholders' Equity
Current liabilities	$	398,152	$	67,660	$	165,919	$	(293,035	)	$	338,696
Long-term debt		371,036		65,000		58,095		—			494,131
Deferred income taxes		12,049		18,209		54,767		—			85,025
Other long-term liabilities		101,228		503		21,037		—			122,768
Total liabilities		882,465		151,372		299,818		(293,035	)		1,040,620
Shareholders’ equity		723,992		842,154		667,419		(1,509,573	)		723,992
Total liabilities and shareholders’ equity	$	1,606,457	$	993,526	$	967,237	$	(1,802,608	)	$	1,764,612

Condensed Consolidating Balance Sheet as of December 31, 2017

In thousands	Parent Company		Guarantors		Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	1,292	$	720	$	114,207	$	-		$	116,219
Other current assets		249,293		217,822		279,626		(277,989	)		468,752
Plant, equipment and timberlands, net		375,231		80,992		409,520		—			865,743
Investments in subsidiaries		829,895		653,128		—		(1,483,023	)		—
Other assets		139,552		—		140,529		—			280,081
Total assets	$	1,595,263	$	952,662	$	943,882	$	(1,761,012	)	$	1,730,795
Liabilities and Shareholders' Equity
Current liabilities	$	402,787	$	54,640	$	167,738	$	(277,989	)	$	347,176
Long-term debt		368,496		51,000		50,602		—			470,098
Deferred income taxes		14,081		16,814		52,676		—			83,571
Other long-term liabilities		100,971		313		19,738		—			121,022
Total liabilities		886,335		122,767		290,754		(277,989	)		1,021,867
Shareholders’ equity		708,928		829,895		653,128		(1,483,023	)		708,928
Total liabilities and shareholders’ equity	$	1,595,263	$	952,662	$	943,882	$	(1,761,012	)	$	1,730,795

Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2018

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated

Net cash provided (used) by
Operating activities	$	(10,584	)	$	(980	)	$	19,223		$	-		$	7,659
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(8,251	)		(11,320	)		(6,997	)		—			(26,568	)
Proceeds from disposals of plant, equipment and timberlands, net		539			1,156			—			—			1,695
Advances of intercompany loans		—			(2,310	)		—			2,310			—
Intercompany capital contributed		—			20,000			(20,000	)		—			—
Other		(28	)		—			—			—			(28	)
Total investing activities		(7,740	)		7,526			(26,997	)		2,310			(24,901	)
Financing activities
Net (repayments) borrowings of long-term debt		2,388			14,000			6,098			—			22,486
Payment of dividends to shareholders		(5,679	)		—			—			—			(5,679	)
Borrowings of intercompany loans		2,310			—			—			(2,310	)		—
Payment of intercompany dividend		20,000			(20,000	)		—			—			—
Payments related to share-based compensation awards and other		(965	)		—			—			—			(965	)
Total financing activities		18,054			(6,000	)		6,098			(2,310	)		15,842
Effect of exchange rate on cash		—			—			2,458			—			2,458
Net increase (decrease) in cash		(270	)		546			782			—			1,058
Cash at the beginning of period		1,292			720			114,207			—			116,219
Cash at the end of period	$	1,022		$	1,266		$	114,989		$	—		$	117,277

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 (repayments) borrowings of long-term debt		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