Kapstone Paper & Packaging (KS) 10-Q 5 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 27, 2015
Document and Entity Information
Entity Registrant Name	KAPSTONE PAPER & PACKAGING CORP
Entity Central Index Key	1325281
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		96,259,475
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$10,545	$28,467
Trade accounts receivable (Includes $251,047 at March 31, 2015, and $225,577 at December 31, 2014, associated with the securitization facility)	255,435	228,740
Other receivables	13,779	12,833
Inventories	255,507	238,329
Prepaid expenses and other current assets	16,814	7,172
Total current assets	552,080	515,541
Plant, property and equipment, net	1,384,786	1,386,670
Other assets	10,296	10,135
Intangible assets, net	106,662	110,077
Goodwill	533,851	533,851
Total assets	2,587,675	2,556,274
Current liabilities:
Short-term borrowings	10,000
Other current borrowings	6,615
Dividend payable	9,721	9,911
Accounts payable	150,788	149,600
Accrued expenses	46,972	48,340
Accrued compensation costs	46,012	62,491
Accrued income taxes	9,668	6,477
Deferred income taxes	1,804	1,990
Total current liabilities	281,580	278,809
Other liabilities:
Long-term debt (Includes $175,000 at March 31, 2015, and $167,000 at December 31, 2014, associated with the securitization facility)	1,055,014	1,046,063
Pension and postretirement benefits	29,582	32,800
Deferred income taxes	415,067	412,293
Other liabilities	7,895	8,182
Total other liabilities	1,507,558	1,499,338
Commitments and contingencies
Stockholders' equity:
Preferred stock $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding
Common stock - $0.0001 par value; 175,000,000 shares authorized; 96,257,183 shares issued and outstanding (excluding 40,000 treasury shares) at March 31, 2015 and 96,046,554 shares issued and outstanding (excluding 40,000 treasury shares) at December 31, 2014	10	10
Additional paid-in-capital	259,260	255,505
Retained earnings	591,053	574,601
Accumulated other comprehensive loss	-51,786	-51,989
Total stockholders' equity	798,537	778,127
Total liabilities and stockholders' equity	$2,587,675	$2,556,274

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	96,257,183	96,046,554
Common stock, shares outstanding	96,257,183	96,046,554
Treasury shares, shares outstanding	40,000	40,000
Receivables Credit Facility
Trade receivables with securitization facility	$251,047	$225,577
Long term debt portion associated with securitization facility	$175,000	$167,000

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statements of Comprehensive Income
Net sales	$546,289	$548,952
Cost of sales, excluding depreciation and amortization	382,198	383,248
Depreciation and amortization	35,121	32,709
Freight and distribution expenses	43,427	40,732
Selling, general, and administrative expenses	38,194	34,145
Operating income	47,349	58,118
Foreign exchange loss	885	24
Interest expense, net	6,413	9,229
Income before provision for income taxes	40,051	48,865
Provision for income taxes	13,951	16,766
Net income	26,100	32,099
Pension and postretirement plan reclassification adjustments:
Amortization of prior service costs	12	32
Amortization of net (gain) / loss	191	-2
Other comprehensive income, net of tax	203	30
Total comprehensive income	$26,303	$32,129
Weighted average number of shares outstanding:
Basic (in shares)	96,123,351	95,720,328
Diluted (in shares)	97,662,608	97,315,766
Net income per share:
Basic (in dollars per share)	$0.27	$0.34
Diluted (in dollars per share)	$0.27	$0.33
Dividends declared per common share	$0.10

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net income	$26,100	$32,099
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,121	32,709
Stock-based compensation expense	3,780	2,918
Pension and postretirement	-2,892	-4,080
Excess tax benefit from stock-based compensation	-1,391	-2,221
Amortization of debt issuance costs	1,007	1,452
Loss on disposal of fixed assets	178	979
Deferred income taxes	1,864	3,323
Changes in assets and liabilities:
Trade accounts receivable, net	-26,695	-5,380
Other receivables	-946	-364
Inventories	-17,178	-13,458
Prepaid expenses and other current assets	-9,642	-5,044
Other assets	-216	-1,278
Accounts payable	-51	5,497
Accrued expenses and other liabilities	-1,842	4,305
Accrued compensation costs	-16,479	-17,595
Accrued income taxes	5,370	5,089
Net cash (used in) provided by operating activities	-3,912	38,951
Investing activities
Capital expenditures	-28,762	-32,420
Net cash used in investing activities	-28,762	-32,420
Financing activities
Proceeds from revolving credit facility	86,400	56,500
Repayments on revolving credit facility	-76,400	-56,500
Proceeds from receivables credit facility	12,962
Repayments on receivables credit facility	-4,962
Payment on long-term debt		-1,175
Proceeds from other current borrowings	6,615	6,300
Repayments on other current borrowings		-1,673
Cash dividend paid	-9,838
Payment of withholding taxes on stock awards	-2,322	-1,641
Proceeds from exercises of stock options	491	214
Proceeds from shares issued to ESPP	415	205
Excess tax benefit from stock-based compensation	1,391	2,221
Net cash provided by financing activities	14,752	4,451
Net increase (decrease) in cash and cash equivalents	-17,922	10,982
Cash and cash equivalents-beginning of period	28,467	12,967
Cash and cash equivalents-end of period	$10,545	$23,949

Financial_Statements

Financial Statements	3 Months Ended
	Mar. 31, 2015
Financial Statements
Financial Statements
	1.Financial Statements
	The accompanying unaudited consolidated financial statements of KapStone Paper and Packaging Corporation (the “Company,” “we,” “us,” “our” or “KapStone”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements
	2.Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB’) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers”. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. For a public entity, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The ASU allows for full or modified retrospective adoption. Early application is not permitted. The Company is currently evaluating the expected impact of adopting this standard.
	In April 2015, the FASB proposed a one-year deferral of the effective date for its new revenue standard for public and nonpublic entities reporting under GAAP. Under the proposal, the standard would be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein.
	In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company does not expect the adoption of this standard to have a material impact on its consolidated balance sheets.

Annual_Planned_Maintenance_Out

Annual Planned Maintenance Outages	3 Months Ended
	Mar. 31, 2015
Annual Planned Maintenance Outages
Annual Planned Maintenance Outage
	3.Annual Planned Maintenance Outages
	Annual planned maintenance outage costs for the three months ended March 31, 2015 and 2014 totaled $8.6 million and $14.8 million, respectively, and are included in cost of sales.  The outage costs in the quarter ended March 31, 2014 reflected $5.6 million of outage costs at the North Charleston, South Carolina paper mill as a result of downtime incurred during the upgrade of the No. 3 paper machine.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2015
Inventories
Inventories
	4.Inventories
	Inventories consist of the following at March 31, 2015 and December 31, 2014, respectively:
		(unaudited)
		March 31,		December 31,
		2015		2014
	Raw materials	$	103,685	$	99,390
	Work in process	3,267		3,634
	Finished goods	74,990		63,639
	Replacement parts and supplies	72,357		70,026
	Inventory at FIFO costs	254,299		236,689
	LIFO inventory reserves	1,208		1,640
	Inventories	$	255,507	$	238,329

Shortterm_Borrowings_and_Longt

Short-term Borrowings and Long-term Debt	3 Months Ended
	Mar. 31, 2015
Short-term Borrowings and Long-term Debt
Short-term Borrowings and Long-term Debt
	5.Short-term Borrowings and Long-term Debt
	Short-term Borrowings
	As of March 31, 2015, the Company had $10.0 million of short-term borrowings with an interest rate of 1.93 percent under its $400 million revolving credit facility (the “Revolver”), which is part of the Company’s senior secured credit facility comprised of term loans and the Revolver (the “Credit Facility”).
	As of March 31, 2015, the Company has current availability of $375.7 million under the Revolver.
	Receivables Credit Facility
	Under our accounts receivable securitization program, we sell, on an ongoing basis without recourse, certain trade receivables (“Receivables”) to KapStone Receivables, LLC (“KAR”), which is considered a wholly-owned, bankruptcy-remote variable interest entity (“VIE”). We have the authority to direct the activities of the VIE and, as a result, we have concluded that we maintain control of the VIE, are the primary beneficiary (as defined by accounting guidance) and, therefore, consolidate the account balances of KAR. As of March 31, 2015, $251.0 million of our receivables were sold to KAR. KAR in turn assigns a collateral interest in these receivables to a financial institution under a one-year facility (the “Receivables Credit Facility”) for proceeds up to $175 million. The assets of KAR are not available to us until all obligations of KAR are satisfied in the event of bankruptcy or insolvency proceedings.
	Debt Covenants
	Our credit agreement governing our Credit Facility (as amended to date, the “Credit Agreement”) as contains, among other provisions, covenants with which we must comply. The covenants limit our ability to, among other things, incur indebtedness, create additional liens on our assets, make investments, engage in mergers and acquisitions and sell any assets outside the normal course of business.
	As of March 31, 2015, the Company was in compliance with all applicable covenants in the Credit Agreement.
	Fair Value of Debt
	As of March 31, 2015, the fair value of the Company’s debt approximates the carrying value of $1.1 billion as the variable interest rates re-price frequently at current market rates. The debt was valued using Level 2 inputs in the fair value hierarchy which are significant observable inputs including quoted prices for debt of similar terms and maturities.  Our weighted-average cost of borrowings was 1.82 percent and 2.25 percent for the three months ended March 31, 2015 and March 31, 2014, respectively.
	Other Borrowing
	In 2015 and 2014, the Company entered into short-term financing agreements of $6.6 million and $6.3 million, respectively, at an annual interest rate of 1.70 percent and 1.69 percent, respectively, for its annual property insurance premiums. The 2015 agreement requires the Company to pay three quarterly payments through the term of the financing agreement ending on December 31, 2015.  As of March 31, 2015 and 2014, there was $6.6 million and $4.6 million, respectively, outstanding under these agreements which is included in “Other current borrowings” on the Consolidated Balance Sheets.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes
	6.Income Taxes
	The Company’s effective income tax rate for the three months ended March 31, 2015 and 2014 was 34.8 percent and 34.3 percent, respectively.  Our tax rate is affected by recurring items such as state income taxes as well as discrete items that may occur in any given period but are not consistent from period to period. In addition to state income taxes, the domestic manufacturing deduction had the most significant impact on the difference between our statutory U.S. federal income tax rate of 35 percent and our effective income tax rate for both periods.
	In the normal course of business, the Company is subject to examination by taxing authorities. The Company’s open federal tax years are 2011 and 2013.  The Company has open tax years for state income tax filings generally starting in 2011.

Net_Income_per_Share

Net Income per Share	3 Months Ended
	Mar. 31, 2015
Net Income per Share
Net Income per Share
	7.Net Income per Share
	The Company’s basic and diluted net income per share is calculated as follows:
		Three Months Ended March 31,
		2015		2014
	Net income	$	26,100	$	32,099
	Weighted-average number of common shares for basic net income per share	96,123,351		95,720,328
	Incremental effect of dilutive common stock equivalents:
	Unexercised stock options	1,202,004		1,211,848
	Unvested restricted stock awards	337,253		383,590
	Weighted-average number of shares for diluted net income per share	97,662,608		97,315,766
	Net income per share - basic	$	0.27	$	0.34
	Net income per share - diluted	$	0.27	$	0.33
	Approximately 374,000 and 47,000 of unexercised stock options were outstanding at March 31, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per share because the options were anti-dilutive.

Pension_Plan_and_PostRetiremen

Pension Plan and Post-Retirement Benefits	3 Months Ended
	Mar. 31, 2015
Pension Plan and Post-Retirement Benefits
Pension Plan and Post-Retirement Benefits
	8.Pension Plan and Post-Retirement Benefits
	Defined Benefit Plan
	Net pension benefit recognized for the three months ended March 31, 2015 and 2014 for the Company’s one defined benefit plan (the “Pension Plan”) are as follows:
		Three Months Ended March 31,
		2015			2014
	Service cost for benefits earned during the quarter	$	1,215		$	2,449
	Interest cost on projected benefit obligations	6,900			7,180
	Expected return on plan assets	(10,236		)	(11,031		)
	Amortization of net loss	534			—
	Amortization of prior service cost	69			101
	Net pension benefit - Company plan	(1,518		)	(1,301		)
	Net pension cost - multi -employer plan	87			84
	Total net pension benefit	$	(1,431	)	$	(1,217	)
	KapStone funds the Pension Plan according to IRS funding requirements. Based on those requirements, KapStone funded $0.7 million for the three months ended March 31, 2015, and expects to fund an additional $0.4 million in 2015.
	Defined Contribution Plan
	We offer a 401(k) Defined Contribution Plan (“Contribution Plan”) to eligible employees.  The Company’s monthly contributions are based on the matching of certain employee contributions or based on a union negotiated formula. For the three months ended March 31, 2015 and 2014, the Company recognized expense of $5.0 million and $4.2 million, respectively, for the Company contributions to the Contribution Plan.  Effective in 2015, Longview salaried personnel received a 401(k) contribution rather than a cash balance plan contribution.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Stock-Based Compensation
	9.Stock-Based Compensation
	In the quarter ended March 31, 2015, the compensation committee of the board of directors approved stock-based awards to executive officers, certain employees and directors. The 2015 awards consisted of the grant of 555,451 stock option and 181,590 restricted stock units.
	The Company accounts for stock-based awards in accordance with ASC 718, “Compensation — Stock Compensation,” which requires that the cost resulting from all share-based payment transactions be recognized as compensation cost over the vesting period based on the fair value of the instrument on the date of grant.
	Total stock-based compensation expense related to the stock option and restricted stock unit grants for the three months ended March 31, 2015 and 2014 is as follows:
		Three Months Ended March 31,
		2015			2014
	Stock option compensation expense	$	1,950		$	1,524
	Restricted stock unit compensation expense	1,830			1,394
	Total stock-based compensation expense	$	3,780		$	2,918
	Total unrecognized stock-based compensation cost related to the stock options and restricted stock units as of March 31, 2015 and December 31, 2014 is as follows:
		March 31,			December 31,
		2015			2014
	Unrecognized stock option compensation expense	$	6,756		$	3,243
	Unrecognized restricted stock unit compensation expense	7,734			3,923
	Total unrecognized stock-based compensation expense	$	14,490		$	7,166
	As of March 31, 2015, total unrecognized compensation cost related to non-vested stock options and restricted stock units is expected to be recognized over a weighted average period of 2.6 years and 2.5 years, respectively.
	Stock Options
	Stock option awards vest as follows: 50% after two years and the remaining 50% after three years or upon a grantee of such stock options attaining the age 65. The stock options awarded in 2015 have a contractual term of ten years and are subject to forfeiture should the recipient terminate his or her employment with the Company for certain reasons prior to vesting in his or her awards, or the occurrence of certain other events such as termination with cause. The exercise price of these stock options is based on the closing market price of our common stock on the date of grant ($31.89 for the 2015 awards described above) and compensation expense is recorded on an accelerated basis over the awards’ vesting periods.
	The weighted average fair value of the stock options granted in March 2015 and 2014 was $10.08 and $10.36, respectively. The fair value was calculated using the Black-Scholes option-pricing model based on the market price at the grant date and the weighted average assumptions specific to the underlying options. The expected term used by the Company is based on the historical average life of stock option awards.  The expected volatility assumption is based on the volatility of our common stock from the same time period as the expected term of the stock options. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term similar to the expected life of the stock options.
	The assumptions utilized for calculating the fair value of stock options during the period are as follows:
		Three Months Ended March 31,
		2015		2014
	Stock Options Black-Scholes assumptions (weighted average):
	Expected volatility	39.08	%	39.93	%
	Expected life (years)	4.90		4.30
	Risk-free interest rate	1.35	%	1.34	%
	Expected dividend yield	1.25	%	—	%
	The following table summarizes stock options amounts and activity:
				Weighted			Weighted	Intrinsic
				Average			Average	Value
				Exercise			Remaining	(dollars in
		Options		Price			Life (Years)	thousands)
	Outstanding at January 1, 2015	2,759,306		$	11.81		6.8	$	48,799
	Granted	555,451		31.89
	Exercised	(58,392	)	9.93
	Forfeited	(19,764	)	17.68
	Outstanding at March 31, 2015	3,236,601		$	15.25		7.2	$	56,933
	Exercisable at March 31, 2015	1,950,074		$	7.18		5.8	$	50,042
	For the three months ended March 31, 2015 and 2014, cash proceeds from the exercise of stock options totaled $0.5 million and $0.2 million, respectively.
	Restricted Stock
	Restricted stock units are restricted as to transferability until they vest three years from the grant date or upon a grantee of such restricted stock units attaining the age 65. These restricted stock units are subject to forfeiture should applicable employees terminate their employment with the Company for certain reasons prior to vesting in their awards, or the occurrence of certain other events. The value of these restricted stock units is based on the closing market price of our common stock on the date of grant and compensation expense is recorded on a straight-line basis over the awards’ vesting periods.
	The following table summarizes unvested restricted stock units amounts and activity:
				Weighted
				Average
				Grant Date
		Units		Fair Value
	Outstanding at January 1, 2015	588,067		$	16.98
	Granted	181,590		31.89
	Vested	(212,864	)	9.88
	Forfeited	(9,500	)	15.76
	Outstanding at March 31, 2015	547,293		$	24.71

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Commitments and Contingencies
	10.Commitments and Contingencies
	We are from time to time subject to various administrative and legal investigations, claims and proceedings incidental to our business, including environmental and safety matters, labor and employments matters, personal injury claims, contractual disputes and taxes. We establish reserves for claims and proceedings when it is probable that liabilities exist and where reasonable estimates can be made. We also maintain insurance that may limit our financial exposure for defense costs, as well as liability, if any, for claims covered by the insurance (subject also to deductibles and self-insurance amounts). While any investigation, claim or proceeding has an element of uncertainty, and we cannot predict or assure the outcome of any claim or proceeding involving the Company, we believe the outcome of any pending or threatened claim or proceeding (other than those that cannot be assessed due to their preliminary nature), or all of them combined, will not have a material adverse effect on our results of operations, cash flows or financial condition.
	The Company’s subsidiary, Longview, is a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) with respect to the Lower Duwamish Waterway Superfund Site in the State of Washington (the “Site”). The U.S. Environmental Protection Agency (“EPA”) asserts that the Site is contaminated as a result of discharges from various businesses and government entities located along the Lower Duwamish Waterway, including a corrugated converting plant owned and operated by Longview. In November 2014, the EPA issued a Record of Decision (“ROD”) for the Site. The ROD includes a selected remedy for the Site. In the ROD, EPA states that the total estimated net present value costs (discounted at 2.3%) for the selected remedy are $342 million. At least 40 potentially responsible parties, including Longview, have entered into an Allocation Agreement. Pursuant to the Allocation Agreement, the parties will attempt to determine each party’s portion of the cost to remediate the site. The allocation process in not expected to be completed until 2017. Based on available information provided to the Company to date, the Company cannot reasonably estimate its potential liability.
	There have been no material changes in any of our legal proceedings since December 31, 2014.

Segment_Information

Segment Information	3 Months Ended
	Mar. 31, 2015
Segment Information
Segment Information
	11.Segment Information
	The Company has one operating segment.  The Company produces containerboard, corrugated products, and specialty paper which are sold to customers who convert our products into end-market finished products or internally to corrugating plants which produce a wide variety of products ranging from basic corrugated shipping containers to specialized packaging.
	The Company’s identification of one operating segment is based on financial information regularly evaluated by the chief operating decision maker in determining resource allocation and assessing performance, in accordance with Accounting Standards Codification 805, Segment Reporting.
	Net sales by product line for the three months ended March 31, 2015 and 2014 are as follows:
		Three Months Ended March 31,				Increase/
	Net sales by product line:	2015		2014		(Decrease)
	Containerboard / Corrugated products	$	344,311	$	336,249	$	8,062
	Specialty paper	179,203		189,009		(9,806		)
	Other	22,775		23,694		(919		)
	Total	$	546,289	$	548,952	$	(2,663	)

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events.
Subsequent Events
	12.Subsequent Events
	The Company’s paper mill in Roanoke Rapids, North Carolina completed its annual planned maintenance outage in April 2015. The outage lasted approximately 8 days with an estimated cost of $8.5 million primarily for annual maintenance and inspections, and the fixed cost impact associated with lost paper production and a 10,400 reduction in tons produced.  In 2014, the annual outage for the Roanoke Rapids mill occurred in October.
	On May 4, 2015, the Company, entered into an Equity Purchase Agreement with VP Holdco, Inc. and Victory Packaging Management, LLC.  Pursuant to the Agreement, the Company will purchase all rights, title and interest in Victory Packaging L.P. and its subsidiaries (“Victory”).
	The Company will pay  a cash purchase price of $615,000,000, subject to an adjustment based on net working capital of Victory at closing. The cash purchase price will be adjusted dollar for dollar for indebtedness outstanding at closing, certain bonuses and other unpaid transaction expenses of Victory and increased dollar for dollar by cash on hand at closing.  A portion of the cash purchase price will be placed into escrow to fund certain limited indemnity obligations of Victory. The Company will also be obligated to pay up to an additional $25,000,000 of contingent consideration to Victory if certain performance criteria are satisfied during the thirty months following the closing. In connection with the acquisition of Victory, the Company is also entering into employment agreements with two of Victory’s executives.
	The transaction, which is expected to close in the second quarter of 2015, is subject to various conditions, including, among others, (1) the accuracy of representations and warranties and compliance with covenants, (2) the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and any other necessary governmental approvals, and (3) the reciept of certain third party consents and (4) the absence of a material adverse effect on Victory during the period between the date of the Agreement and the closing.
	The Company has received financing commitments from Bank of America, N.A., Barclays Bank PLC,  Wells Fargo Bank, National Association, Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated to provide sufficient funds to finance the Acquisition, including the payment of the aggregate purchase price. The availability of financing pursuant to such commitments is subject to various customary conditions, including no material adverse change and the consummation of the acquisition.

Recent_Accounting_Pronouncemen1

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB’) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers”. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. For a public entity, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The ASU allows for full or modified retrospective adoption. Early application is not permitted. The Company is currently evaluating the expected impact of adopting this standard.
	In April 2015, the FASB proposed a one-year deferral of the effective date for its new revenue standard for public and nonpublic entities reporting under GAAP. Under the proposal, the standard would be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein.
	In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company does not expect the adoption of this standard to have a material impact on its consolidated balance sheets.

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2015
Inventories
Schedule of Inventories
		(unaudited)
		March 31,		December 31,
		2015		2014
	Raw materials	$	103,685	$	99,390
	Work in process	3,267		3,634
	Finished goods	74,990		63,639
	Replacement parts and supplies	72,357		70,026
	Inventory at FIFO costs	254,299		236,689
	LIFO inventory reserves	1,208		1,640
	Inventories	$	255,507	$	238,329

Net_Income_per_Share_Tables

Net Income per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Income per Share
Schedule of basic and diluted net income per share
		Three Months Ended March 31,
		2015		2014
	Net income	$	26,100	$	32,099
	Weighted-average number of common shares for basic net income per share	96,123,351		95,720,328
	Incremental effect of dilutive common stock equivalents:
	Unexercised stock options	1,202,004		1,211,848
	Unvested restricted stock awards	337,253		383,590
	Weighted-average number of shares for diluted net income per share	97,662,608		97,315,766
	Net income per share - basic	$	0.27	$	0.34
	Net income per share - diluted	$	0.27	$	0.33

Pension_Plan_and_PostRetiremen1

Pension Plan and Post-Retirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2015
Pension Plan and Post-Retirement Benefits
Schedule of net pension benefit recognized for the Pension Plan
		Three Months Ended March 31,
		2015			2014
	Service cost for benefits earned during the quarter	$	1,215		$	2,449
	Interest cost on projected benefit obligations	6,900			7,180
	Expected return on plan assets	(10,236		)	(11,031		)
	Amortization of net loss	534			—
	Amortization of prior service cost	69			101
	Net pension benefit - Company plan	(1,518		)	(1,301		)
	Net pension cost - multi -employer plan	87			84
	Total net pension benefit	$	(1,431	)	$	(1,217	)

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Schedule of total stock-based compensation expense
		Three Months Ended March 31,
		2015			2014
	Stock option compensation expense	$	1,950		$	1,524
	Restricted stock unit compensation expense	1,830			1,394
	Total stock-based compensation expense	$	3,780		$	2,918
Schedule of total unrecognized stock-based compensation
		March 31,			December 31,
		2015			2014
	Unrecognized stock option compensation expense	$	6,756		$	3,243
	Unrecognized restricted stock unit compensation expense	7,734			3,923
	Total unrecognized stock-based compensation expense	$	14,490		$	7,166
Schedule of the assumptions utilized for calculating the fair value of stock options
		Three Months Ended March 31,
		2015		2014
	Stock Options Black-Scholes assumptions (weighted average):
	Expected volatility	39.08	%	39.93	%
	Expected life (years)	4.90		4.30
	Risk-free interest rate	1.35	%	1.34	%
	Expected dividend yield	1.25	%	—	%
Summary of stock options amounts and activity
				Weighted			Weighted	Intrinsic
				Average			Average	Value
				Exercise			Remaining	(dollars in
		Options		Price			Life (Years)	thousands)
	Outstanding at January 1, 2015	2,759,306		$	11.81		6.8	$	48,799
	Granted	555,451		31.89
	Exercised	(58,392	)	9.93
	Forfeited	(19,764	)	17.68
	Outstanding at March 31, 2015	3,236,601		$	15.25		7.2	$	56,933
	Exercisable at March 31, 2015	1,950,074		$	7.18		5.8	$	50,042
Summary of unvested restricted stock units amounts and activity
				Weighted
				Average
				Grant Date
		Units		Fair Value
	Outstanding at January 1, 2015	588,067		$	16.98
	Granted	181,590		31.89
	Vested	(212,864	)	9.88
	Forfeited	(9,500	)	15.76
	Outstanding at March 31, 2015	547,293		$	24.71

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Information
Schedule of net sales by product line
		Three Months Ended March 31,				Increase/
	Net sales by product line:	2015		2014		(Decrease)
	Containerboard / Corrugated products	$	344,311	$	336,249	$	8,062
	Specialty paper	179,203		189,009		(9,806		)
	Other	22,775		23,694		(919		)
	Total	$	546,289	$	548,952	$	(2,663	)

Annual_Planned_Maintenance_Out1

Annual Planned Maintenance Outages (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Annual planned maintenance outage costs	$8.60	$14.80
North Charleston, South Carolina
Annual planned maintenance outage costs		$5.60

Inventories_Details

Inventories (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventories
Raw materials	$103,685	$99,390
Work in process	3,267	3,634
Finished goods	74,990	63,639
Replacement parts and supplies	72,357	70,026
Inventory at FIFO costs	254,299	236,689
LIFO inventory reserves	1,208	1,640
Inventories	$255,507	$238,329

Shortterm_Borrowings_and_Longt1

Short-term Borrowings and Long-term Debt (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
	item
Long-term Debt
Short-term borrowings	$10,000,000
Weighted average cost of borrowings	1.82%		2.25%
Other current borrowings	6,615,000
Level 2
Long-term Debt
Fair value of debt	1,100,000,000
Other Borrowing
Long-term Debt
Initial aggregate principal amount	6,600,000	6,300,000
Interest rate (as a percent)	1.70%	1.69%
Number of quarterly payments	3
Other current borrowings	6,600,000		4,600,000
Credit Facility | Revolver
Long-term Debt
Short-term borrowings	10,000,000
LIBOR interest rate (as a percent)	1.93%
Current availability under borrowing base	375,700,000
Maximum borrowing capacity	400,000,000
Receivables Credit Facility
Long-term Debt
Trade receivables with securitization facility	251,047,000	225,577,000
Term of debt instrument	1 year
Collateral interest	175,000,000	167,000,000
Receivables Credit Facility | Maximum
Long-term Debt
Collateral interest	$175,000,000

Income_taxes_Details

Income taxes (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Difference of effective tax rate from the statutory federal income tax rate
Effective tax rate (as a percent)	34.80%	34.30%
Statutory tax rate (as a percent)	35.00%	35.00%

Net_income_per_share_Details

Net income per share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net Income per Share
Net income	$26,100	$32,099
Weighted-average number of common shares for basic net income per share	96,123,351	95,720,328
Incremental effect of dilutive common stock equivalents:
Unexercised stock options (in shares)	1,202,004	1,211,848
Unvested restricted stock awards (in shares)	337,253	383,590
Weighted-average number of shares for diluted net income per share	97,662,608	97,315,766
Net income per share - basic (in dollars per share)	$0.27	$0.34
Net income per share - diluted (in dollars per share)	$0.27	$0.33
Anti-dilutive unexercised stock options (in shares)	374,000	47,000

Pension_Plan_and_PostRetiremen2

Pension Plan and Post-Retirement Benefits (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
	plan
Pension Plan and Post-Retirement Benefits
Number of defined benefit plans	1
Net pension (benefit) / cost recognized for the Pension Plans
Service cost for benefits earned during the quarter	$1,215,000	$2,449,000
Interest cost on projected benefit obligations	6,900,000	7,180,000
Expected return on plan assets	-10,236,000	-11,031,000
Amortization of net loss	534,000
Amortization of prior service cost	69,000	101,000
Net pension benefit - Company plan	-1,518,000	-1,301,000
Net pension cost - multi-employer plan	87,000	84,000
Total net pension benefit	-1,431,000	-1,217,000
Employer contributions	700,000
Expected employer contribution in remaining fiscal year	400,000
Defined Contribution Plan
Defined contribution plan expense recognized	$5,000,000	$4,200,000

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Stock-based compensation
Stock-based compensation expense	$3,780,000	$2,918,000
Unrecognized stock-based compensation expense
Unrecognized stock option compensation expense	6,756,000		3,243,000
Unrecognized restricted stock unit compensation expense	7,734,000		3,923,000
Total unrecognized stock-based compensation expense	14,490,000		7,166,000
Stock Options
Stock-based compensation
Stock-based compensation expense	1,950,000	1,524,000
Unrecognized stock-based compensation expense
Weighted average period of recognition	2 years 7 months 6 days
Stock Options
Minimum age requirement of grantee as a condition for vesting	65 years
Contractual term	10 years
Additional information
Weighted average fair value (in dollars per share)	$10.08	$10.36
Stock Options Black-Scholes assumptions (weighted average):
Expected volatility (as a percent)	39.08%	39.93%
Expected life	4 years 10 months 24 days	4 years 3 months 18 days
Risk-free interest rate (as a percent)	1.35%	1.34%
Expected dividend yield	1.25%
Options
Outstanding at the beginning of the period (in shares)	2,759,306
Granted (in shares)	555,451
Exercised (in shares)	-58,392
Forfeited (in shares)	-19,764
Outstanding at the end of the period (in shares)	3,236,601		2,759,306
Exercisable at the end of the period (in shares)	1,950,074
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$11.81
Granted (in dollars per share)	$31.89
Exercised (in dollars per share)	$9.93
Forfeited (in dollars per share)	$17.68
Outstanding at the end of the period (in dollars per share)	$15.25		$11.81
Exercisable at the end of the period (in dollars per share)	$7.18
Weighted Average Remaining Life (Years)
Outstanding at the end of the period	7 years 2 months 12 days		6 years 9 months 18 days
Exercisable at the end of the period	5 years 9 months 18 days
Intrinsic Value
Outstanding at the end of the period	56,933,000		48,799,000
Exercisable at the end of the period	50,042,000
Cash proceeds from exercises of options	500,000	200,000
Stock Options | Awards that vest after two years
Stock Options
Percentage of granted awards that will vest	50.00%
Additional information
Vesting period for awards	2 years
Stock Options | Awards that vest after three years
Stock Options
Percentage of granted awards that will vest	50.00%
Additional information
Vesting period for awards	3 years
Restricted Stock Units
Stock-based compensation
Stock-based compensation expense	$1,830,000	$1,394,000
Unrecognized stock-based compensation expense
Weighted average period of recognition	2 years 6 months
Stock Options
Minimum age requirement of grantee as a condition for vesting	65 years
Additional information
Vesting period for awards	3 years
Units
Outstanding at the beginning of the period (in shares)	588,067
Granted (in shares)	181,590
Vested (in shares)	-212,864
Forfeited (in shares)	-9,500
Outstanding at the end of the period (in shares)	547,293
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$16.98
Granted (in dollars per share)	$31.89
Vested (in dollars per share)	$9.88
Forfeited (in dollars per share)	$15.76
Outstanding at the end of the period (in dollars per share)	$24.71

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	1 Months Ended
In Millions, unless otherwise specified	Nov. 30, 2014
	item
Commitments and contingencies
Number of potentially responsible parties that entered into allocation agreement	40
Longview
Commitments and contingencies
Discount rate (as a percent)	2.30%
Estimated remedy	342

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
	item
Segment Information
Number of operating segments	1
Segment Information
Net sales by product line: Total	$546,289	$548,952
Increase/(Decrease) in net sales	-2,663
Containerboard / Corrugated products
Segment Information
Net sales by product line: Total	344,311	336,249
Increase/(Decrease) in net sales	8,062
Specialty paper
Segment Information
Net sales by product line: Total	179,203	189,009
Increase/(Decrease) in net sales	-9,806
Other
Segment Information
Net sales by product line: Total	22,775	23,694
Increase/(Decrease) in net sales	($919)

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	3 Months Ended		0 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	4-May-15	Apr. 30, 2015
			item	T
Subsequent events
Annual planned maintenance outage costs	$8,600,000	$14,800,000
Subsequent event | Two Executives of Victory
Subsequent events
Number of executives entering into employment agreements			2
Subsequent event | Victory Packaging
Subsequent events
Period to satisfy performance criteria			30 months
Subsequent event | Victory Packaging | Maximum
Subsequent events
Additional contingent consideration			25,000,000
Subsequent event | Victory Packaging | Forecast
Subsequent events
Cash purchase price			615,000,000
Roanoke Rapids, North Carolina | Subsequent event
Subsequent events
Period for which outage lasted				8 days
Annual planned maintenance outage costs				$8,500,000
Reduction in production (in tons)				10,400