Concentrations of Risk

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Concentration of Risk

Concentrations of Risk

Our Paper segment has had a long-standing commercial and contractual relationship with Office Depot, our largest customer in the paper business. This relationship exposes us to a significant concentration of business and financial risk. Our sales to Office Depot represented 8% and 9% of our total company sales for 2016 and 2015, respectively, and about 42% and 45% of our Paper segment sales revenue for those periods, respectively. At December 31, 2016 and 2015, we had $31.8 million and $39.5 million of accounts receivable due from Office Depot, respectively, which represents 5% and 6% of our total company receivables, respectively.

In 2016, sales to Office Depot represented 42% of our Paper segment sales. If these sales are reduced, we would need to find new customers. We may not be able to fully replace any lost sales, and any new sales may be at lower prices or higher costs. Any significant deterioration in the financial condition of Office Depot affecting its ability to pay or any other change that affects its willingness to purchase our products will harm our business and results of operations.

During the second quarter of 2016, Office Depot and Staples terminated their merger agreement, and the acquisition of Office Depot by Staples was not completed. We continue to do business in the ordinary course with Office Depot.

Labor

At December 31, 2016, we had approximately 14,000 employees and approximately 50%of these employees worked pursuant to collective bargaining agreements. Approximately 70% of our hourly employees are represented by unions. The majority of our unionized employees are represented by the United Steel Workers (USW), the International Brotherhood of Teamsters (IBT), the International Association of Machinists (IAM), and the Association of Western Pulp and Paper Workers (AWPPW). Approximately 20%of our employees work pursuant to collective bargaining agreements that will expire within the next twelve months.