Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CLW | |
Entity Registrant Name | CLEARWATER PAPER CORP | |
Entity Central Index Key | 1,441,236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,433,415 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 426,504 | $ 435,320 | $ 1,293,692 | $ 1,309,195 |
Costs and expenses: | ||||
Cost of sales | (386,581) | (396,605) | (1,154,344) | (1,127,103) |
Selling, general and administrative expenses | (34,472) | (29,435) | (93,674) | (94,885) |
Total operating costs and expenses | (421,053) | (426,040) | (1,248,018) | (1,221,988) |
Income from operations | 5,451 | 9,280 | 45,674 | 87,207 |
Interest expense, net | (7,683) | (7,520) | (23,399) | (22,559) |
Earnings (loss) before income taxes | (2,232) | 1,760 | 22,275 | 64,648 |
Income tax provision | 3,095 | (859) | (5,860) | (24,437) |
Net earnings (loss) | $ 863 | $ 901 | $ 16,415 | $ 40,211 |
Net earnings per common share: | ||||
Basic (in dollars per share) | $ 0.05 | $ 0.05 | $ 1 | $ 2.35 |
Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.99 | $ 2.33 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net earnings | $ 863 | $ 901 | $ 16,415 | $ 40,211 |
Defined benefit pension and other postretirement employee benefits: | ||||
Amortization of actuarial loss included in net periodic cost, net of tax of $319, $248, $967 and $1,113 | 487 | 384 | 1,475 | 1,723 |
Amortization of prior service credit included in net periodic cost, net of tax of $(152), $(165), $(454) and $(497) | (230) | (257) | (691) | (770) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, net of Tax | 0 | 1,632 | 0 | 1,632 |
Other comprehensive income (loss), net of tax | 257 | 1,759 | 784 | 2,585 |
Comprehensive income | $ 1,120 | $ 2,660 | $ 17,199 | $ 42,796 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization of actuarial loss included in net periodic cost, tax expense | $ 319 | $ 248 | $ 967 | $ 1,113 |
Amortization of prior service credit included in net periodic cost, tax benefit | (152) | (165) | (454) | (497) |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | $ 0 | $ 1,054 | $ 0 | $ (1,054) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 8,478 | $ 23,001 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Receivables, net | 135,946 | 147,074 |
Taxes receivable | 14,578 | 9,709 |
Inventories | 257,833 | 258,029 |
Other Assets, Current | 6,450 | 8,682 |
Total current assets | 423,285 | 446,495 |
Property, plant and equipment, net | 1,014,835 | 945,328 |
Goodwill | 244,283 | 244,283 |
Intangible assets, net | 34,528 | 40,485 |
Other assets, net | 12,080 | 7,751 |
TOTAL ASSETS | 1,729,011 | 1,684,342 |
Current liabilities: | ||
Line of Credit, Current | 110,000 | 135,000 |
Accounts payable and accrued liabilities | 263,148 | 223,699 |
Current liability for pensions and other postretirement employee benefits | 7,821 | 7,821 |
Total current liabilities | 380,969 | 366,520 |
Long-term debt | 570,331 | 569,755 |
Liability for pensions and other postretirement employee benefits | 78,440 | 81,812 |
Other long-term obligations | 40,942 | 41,776 |
Accrued taxes | 2,557 | 2,434 |
Deferred tax liabilities | 169,410 | 152,172 |
Liabilities | 1,242,649 | 1,214,469 |
Stockholders' equity: | ||
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | 0 | 0 |
Common stock, par value $0.0001 per share, 100,000,000 authorized shares-16,433,415 and 24,223,191 shares issued | 2 | 2 |
Additional paid-in capital | 0 | 347,080 |
Retained earnings | 537,329 | 569,861 |
Treasury stock, at cost, common shares-0 and 7,736,255 shares | 0 | (395,317) |
Accumulated other comprehensive loss, net of tax | (50,969) | (51,753) |
Total stockholders' equity | 486,362 | 469,873 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,729,011 | $ 1,684,342 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001000000 | $ 0.0001000000 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 16,433,415 | 24,223,191 |
Treasury stock, shares (in shares) | 0 | 7,736,255 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 16,415 | $ 40,211 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 79,468 | 65,921 |
Equity-based compensation expense | 2,523 | 9,826 |
Deferred tax expense | 14,602 | 12,329 |
Employee benefit plans | (2,999) | (500) |
Gain (Loss) on Disposition of Assets | 3,755 | 30 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 874 | 484 |
Changes in working capital, net | 43,846 | 4,045 |
Change in taxes receivable, net | (4,869) | 7,217 |
Other Operating Activities, Cash Flow Statement | (1,439) | (680) |
Net cash provided by operating activities | 152,176 | 138,883 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to plant and equipment | (136,650) | (105,514) |
Payments for (Proceeds from) Other Investing Activities | 753 | 250 |
Net cash used for investing activities | (135,897) | (105,264) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Purchase of treasury stock | (4,875) | (51,528) |
Proceeds from (Repayments of) Short-term Debt | 185,000 | 944,844 |
Payments of Debt Issuance Costs | (210,000) | (931,832) |
Payment of tax withholdings on equity-based payment arrangements | (790) | |
Proceeds from (Payments for) Other Financing Activities | (927) | (382) |
Net cash (used for) provided by financing activities | (30,802) | (38,898) |
Decrease in cash and cash equivalents | (14,523) | (5,279) |
Cash at beginning of period | 23,001 | 5,610 |
Cash at end of period | 8,478 | 331 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 27,867 | 27,240 |
Cash paid for income taxes | 2,367 | 16,050 |
Cash received from income tax refunds | 5,988 | 10,543 |
Changes in accrued plan and equipment | 2,173 | 3,834 |
Non-cash additions to plant, property, and equipment | $ 4,500 | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation GENERAL Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer relationships through quality and service. On December 16, 2016, we acquired Manchester Industries, an independently-owned paperboard sales, sheeting and distribution supplier to the packaging and commercial print industries, for total consideration of $71.7 million . The addition of Manchester Industries' customers to our paperboard business extends our reach and service platform to small and mid-sized folding carton plants, by offering a range of converting services that include custom sheeting, slitting, and cutting. These converting operations include five strategically located facilities in Virginia, Pennsylvania, Indiana, Texas, and Michigan. Goodwill was recorded in the acquisition of Manchester Industries based on the preliminary purchase price allocation. We are continuing to collect information to determine the fair values included in the purchase price in association with the final tax basis of acquired intangibles and fixed assets used in the determination of deferred tax liabilities at the acquisition date, which could affect our goodwill allocation for this transaction. On March 31, 2017, we closed our Oklahoma City, Oklahoma converting facility. Notwithstanding the closure, we remain subject to the terms of a long-term master lease applicable to the facility. In October 2017, we transferred to a third party substantially all of the remaining fixed assets and supplies inventory located at this facility and subleased the facility to the third party for the remaining term of the master lease for the facility. In connection with the transfer of fixed assets, we recorded a loss of $4.3 million in the third quarter of 2017 related primarily to the writedown of the transferred assets to their held for sale value. This loss is included in “Selling, general and administrative expenses” in our Consolidated Statement of Operations. We expect to record a loss of approximately $3 million in the fourth quarter of 2017 related to the execution of the sublease agreement. The sublease agreement is expected to substantially reduce our cash requirements under the master lease over the term of the sublease. Additionally, we have incurred $0.8 million and $6.8 million of closure-related costs associated with the Oklahoma City facility for the three and nine months ended September 30, 2017, respectively, which are included in "Cost of goods sold" in our Consolidated Statement of Operations. FINANCIAL STATEMENT PREPARATION AND PRESENTATION The accompanying Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , the related Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 , and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 , have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. We believe that all adjustments necessary for a fair statement of the results of the interim periods presented have been included. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the Securities and Exchange Commission, or SEC, on February 22, 2017 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain tax positions, assessment of impairment of long-lived assets, goodwill and intangibles, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. CASH AND CASH EQUIVALENTS We consider all highly liquid instruments with maturities of three months or less to be cash equivalents. TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of September 30, 2017 and December 31, 2016 , we had allowances for doubtful accounts of $ 1.3 million and $1.5 million , respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,617.5 million and $1,582.0 million at September 30, 2017 and December 31, 2016 , respectively. For the nine months ended September 30, 2017 , we capitalized $3.0 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility and $0.5 million associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility. For the nine months ended September 30, 2016 , we capitalized $1.6 million of interest expense associated with the continuous pulp digester project. In June 2017, we received land with a fair market value of $4.2 million from the City of Shelby, North Carolina and Cleveland County. We must fulfill certain obligations within five years or pay the value of the land or return the title to the land. This balance is included in "Property, plant, and equipment, net," with an associated amount in "Other long-term obligations" on our Consolidated Balance Sheet as of September 30, 2017. Consistent with authoritative guidance, we assess the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. STOCKHOLDERS’ EQUITY On December 15, 2015, we announced that our Board of Directors had approved a stock repurchase program authorizing the repurchase of up to $100 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time. In total, we have repurchased 1,440,696 shares of our outstanding common stock as of September 30, 2017, pursuant to this repurchase program, of which 84,750 shares were repurchased during the first quarter of 2017 at an average price of $57.53 per share. We did not repurchase shares during the second or third quarters of 2017. As of September 30, 2017 , we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. During the third quarter of 2017, we retired 7,821,005 treasury shares. The impact of this retirement was reflected within the stockholders' equity line items on our Consolidated Balance Sheet. DERIVATIVES We had no activity during the three and nine months ended September 30, 2017 and 2016 that required hedge or derivative accounting treatment. However, to help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of September 30, 2017 , these contracts covered approximately 30% of our expected average monthly natural gas requirements for the remainder of 2017 , and a lesser amount for 2018. Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Recently Adopted and New Accoun
Recently Adopted and New Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and New Accounting Standards | Recently Adopted and New Accounting Standards RECENTLY ADOPTED In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350) . This ASU eliminates step two of the impairment test, the performance of a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We adopted this standard on January 1, 2017 and will apply this standard during our annual impairment test as of November 1, 2017, if applicable. The adoption of this standard is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . This ASU clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset is not a business. We adopted this standard on January 1, 2017. This standard did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), (ASU 2016-09), which simplifies several aspects of accounting for share-based payment transactions, including income tax consequences, award classification, cash flows reporting, and forfeiture rate application. Specifically, the update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. The update also allows excess tax benefits to be classified along with other income tax cash flows as an operating activity on the statement of cash flows. In addition, when accruing compensation cost, an entity can make an entity-wide accounting policy election to either estimate the number of awards expected to vest or to account for forfeitures as they occur. Lastly, the update requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows, consistent with our historical practice. We adopted ASU 2016-09 in the first quarter of 2017. We have not changed our method of estimating forfeitures as a result of our adoption of this standard, however, we are currently evaluating the possibility of changing our tax-withholding policy to allow for more withholding of employee shares for tax purposes. As a result of adopting this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity on the statement of cash flows on a prospective basis and $1.0 million was charged to our income tax provision in the nine months ending September 30, 2017, resulting in a $0.06 earnings per share impact. NEW ACCOUNTING STANDARDS In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU will be effective prospectively for annual periods beginning after December 15, 2017, including interim periods within those annual periods. We plan to adopt this standard on January 1, 2018. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this ASU require that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. This ASU will be effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. We plan to adopt this standard on January 1, 2018. The amendments in this update require retrospective presentation in the income statement. Changes to the capitalized portion of both service cost and the other components of net benefit cost within inventory will be applied prospectively. For the full year of 2016, net periodic pension and other postretirement employee benefit cost reported within operating income totaled $5.3 million , of which $1.8 million represented service cost. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We expect the adoption of this ASU will increase both our assets and liabilities presented on our Consolidated Balance Sheets to reflect the ROU assets and corresponding lease liabilities, as well as increase our leasing disclosures. We plan to adopt this standard on January 1, 2019. We are continuing our assessment and review of existing leases, which may identify other impacts, and are addressing necessary policy and process changes in preparation for adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of the new standard is for companies to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. The standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, such as service revenue and contract modifications, and clarify guidance for multiple-element arrangements. This standard was originally issued as effective for fiscal years and interim periods within those years beginning after December 15, 2016, with early adoption prohibited. However, in July 2015, the FASB approved deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. In its approval, the FASB also permitted the early adoption of the standard, but not before the original effective date of fiscal years beginning after December 15, 2016. The standard may be applied under either a retrospective or cumulative effect adoption method. We plan on adopting the standard on the deferred effective date under the cumulative effect adoption method. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. Based on our assessments to-date, which have included review of our core revenue streams and contracts with key customers under the new standard, we do not anticipate the adoption of this standard will have a material impact on our consolidated financial statements. We anticipate enhancing our disclosures upon the adoption of this standard as well as certain of our internal controls and processes. We are continuing our assessment, internal control considerations and internal process analysis, which may identify other impacts. We reviewed all other new accounting pronouncements issued in the period and concluded that they are not applicable to our business. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Pulp, paperboard and tissue products $ 158,075 $ 154,460 Materials and supplies 85,246 82,005 Logs, pulpwood, chips and sawdust 14,512 21,564 $ 257,833 $ 258,029 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets at the balance sheet dates are comprised of the following: September 30, 2017 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.3 $ 62,401 $ (32,387 ) $ 30,014 Trade names and trademarks 7.4 6,786 (2,743 ) 4,043 Non-compete agreements 5.0 574 (558 ) 16 Other intangibles 6.0 572 (117 ) 455 $ 70,333 $ (35,805 ) $ 34,528 December 31, 2016 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.3 $ 62,401 $ (27,364 ) $ 35,037 Trade names and trademarks 7.4 6,786 (1,972 ) 4,814 Non-compete agreements 5.0 574 (512 ) 62 Other intangibles 6.0 572 — 572 $ 70,333 $ (29,848 ) $ 40,485 For the three months ended September 30, 2017 and 2016 , intangible assets amortization expense was $2.0 million and $1.1 million , respectively. For the nine months ended September 30, 2017 and 2016 , intangible assets amortization expense was $6.0 million and $3.2 million , respectively. The increase in the 2017 periods was due to the additional amortization expense attributable to intangible assets associated with the acquisition of Manchester Industries in December 2016. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes | Income Taxes Consistent with authoritative guidance, our estimated annual effective tax rate is used to allocate expected annual income tax expense to interim periods. The rate is the ratio of estimated annual income tax expense to estimated pre-tax ordinary income, and excludes "discrete items," which are significant, unusual or infrequent items reported separately net of their related tax effect. The estimated annual effective tax rate is applied to the current interim period's ordinary income to determine the income tax expense allocated to the interim period. The income tax effects of discrete items are then determined separately and recognized in the interim period in which the income or expense items arise. Our estimated annual effective tax rate applied to the third quarter of 2017 is approximately 34% , compared with approximately 36% for the same period in 2016. The decrease in the rate is due to an increase in the benefit from federal and state tax credits. The tax benefit in the current quarter is comprised of a benefit driven by the pre-tax loss for the quarter increased by a benefit from federal credits of $2.4 million . |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Trade accounts payable $ 189,940 $ 128,106 Accrued wages, salaries and employee benefits 34,174 49,871 Accrued discounts and allowances 11,292 10,291 Accrued utilities 6,993 6,712 Accrued taxes other than income taxes payable 6,570 6,946 Accrued interest 5,582 12,149 Accrued transportation 2,208 1,761 Other 6,389 7,863 $ 263,148 $ 223,699 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Line of Credit Facility [Line Items] | |
Debt | Debt REVOLVING CREDIT FACILITIES As of September 30, 2017 , there was an aggregate of $110.0 million in borrowings outstanding under the credit facilities and $6.8 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2016 , there was an aggregate of $135.0 million in borrowings outstanding under the credit facilities. Our two senior secured revolving credit facilities provide in the aggregate, on a combined basis, for the extension of up to $300 million in revolving loans under: (i) a $200 million credit agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the Commercial Credit Agreement); and (ii) a $100 million credit agreement with Northwest Farm Credit Services, PCA, as administrative agent, and the lenders party thereto (the Farm Credit Agreement). We refer to both of these credit agreements collectively as the Credit Agreements. The revolving credit facilities provided under the Credit Agreements mature on October 31, 2021. Revolving loans borrowed under the Commercial Credit Agreement bear interest, at our option, at a LIBOR rate or at a base rate, plus an applicable margin, which for LIBOR rate loans may range from 1.25% per annum to 2.00% per annum, based on the Company’s consolidated total leverage ratio. The applicable margin for base rate loans under the Commercial Credit Agreement is 1.00% per annum less than for LIBOR rate loans. Revolving Loans borrowed under the Farm Credit Agreement are calculated in substantially the same manner as under the Commercial Credit Agreement, however, the applicable margin under the Farm Credit Agreement is 0.25% per annum higher than the Commercial Credit Agreement, and the prime rate used in the calculation of base rate loans is based upon the prime rate published by the Wall Street Journal. In addition, under the Farm Credit Agreement, we have the option to elect fixed rate periods of interest which bear interest at an applicable margin equal to the LIBOR rate. We also pay commitment fees on the unused portion of the revolving loan commitments under the Credit Agreements, which range from 0.20% per annum to 0.35% per annum. We receive patronage refunds under the Farm Credit Agreement. Patronage refunds are distributions of profits from banks in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage refunds are accrued as earned and recorded as offsets to interest expense. The borrowings outstanding under the revolving credit facilities as of September 30, 2017 , consisted of short-term base and LIBOR rate loans and are classified as current liabilities in our Consolidated Balance Sheet. As of September 30, 2017 , we would have been permitted to draw an additional $183.2 million under the credit facilities. REVOLVING CREDIT FACILITIES As of September 30, 2017 , there was an aggregate of $110.0 million in borrowings outstanding under the credit facilities and $6.8 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2016 , there was an aggregate of $135.0 million in borrowings outstanding under the credit facilities. Our two senior secured revolving credit facilities provide in the aggregate, on a combined basis, for the extension of up to $300 million in revolving loans under: (i) a $200 million credit agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (the Commercial Credit Agreement); and (ii) a $100 million credit agreement with Northwest Farm Credit Services, PCA, as administrative agent, and the lenders party thereto (the Farm Credit Agreement). We refer to both of these credit agreements collectively as the Credit Agreements. The revolving credit facilities provided under the Credit Agreements mature on October 31, 2021. Revolving loans borrowed under the Commercial Credit Agreement bear interest, at our option, at a LIBOR rate or at a base rate, plus an applicable margin, which for LIBOR rate loans may range from 1.25% per annum to 2.00% per annum, based on the Company’s consolidated total leverage ratio. The applicable margin for base rate loans under the Commercial Credit Agreement is 1.00% per annum less than for LIBOR rate loans. Revolving Loans borrowed under the Farm Credit Agreement are calculated in substantially the same manner as under the Commercial Credit Agreement, however, the applicable margin under the Farm Credit Agreement is 0.25% per annum higher than the Commercial Credit Agreement, and the prime rate used in the calculation of base rate loans is based upon the prime rate published by the Wall Street Journal. In addition, under the Farm Credit Agreement, we have the option to elect fixed rate periods of interest which bear interest at an applicable margin equal to the LIBOR rate. We also pay commitment fees on the unused portion of the revolving loan commitments under the Credit Agreements, which range from 0.20% per annum to 0.35% per annum. We receive patronage refunds under the Farm Credit Agreement. Patronage refunds are distributions of profits from banks in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage refunds are accrued as earned and recorded as offsets to interest expense. The borrowings outstanding under the revolving credit facilities as of September 30, 2017 , consisted of short-term base and LIBOR rate loans and are classified as current liabilities in our Consolidated Balance Sheet. As of September 30, 2017 , we would have been permitted to draw an additional $183.2 million under the credit facilities. |
Other Long-Term Obligations
Other Long-Term Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Obligations | Other Long-Term Obligations Other long-term obligations at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Long-term lease obligations, net of current portion $ 23,426 $ 23,152 Deferred proceeds 5,966 9,013 Deferred compensation 5,168 7,219 Other 6,382 2,392 $ 40,942 $ 41,776 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income [Text Block] | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax, is comprised of the following: (In thousands) Pension and Other Post Retirement Employee Benefit Plan Adjustments Balance at December 31, 2016 $ (51,753 ) Other comprehensive income, net of tax 1 784 Balance at September 30, 2017 $ (50,969 ) (In thousands) Pension and Other Post Retirement Employee Benefit Plan Adjustments Balance at December 31, 2015 $ (55,548 ) Other comprehensive income before reclassifications 953 Amounts reclassified from accumulated other comprehensive loss 2 $ 1,632 Other comprehensive income, net of tax 1 2,585 Balance at September 30, 2016 $ (52,963 ) 1 Included in other comprehensive income are net periodic costs associated with our pension and other postretirement employee benefit (OPEB) plans that were reclassified from accumulated other comprehensive loss. For the nine months ended September 30, 2017 and 2016 , actuarial loss amortization of $1.5 million and $1.7 million , respectively, as well as $0.7 million and $0.8 million , respectively, of prior service credit amortization were reclassified. These amounts are net of tax totaling $0.5 million and $0.6 million for each respective period. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” 2 Included in "Amounts reclassified from accumulated other comprehensive loss" above for the nine months ended September 30, 2016 is settlement expense of $3.5 million associated with the remeasurement of our salaried pension plan, which is discussed further in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” The remeasurement resulted in a settlement loss of $0.8 million recorded to the pension liability and reclassified from accumulated other comprehensive loss. The settlement expense and corresponding remeasurement are net of tax totaling $1.1 million . |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | Pension and Other Postretirement Employee Benefit Plans The following table details the components of net periodic cost of our company-sponsored pension and OPEB plans for the periods presented: Three Months Ended September 30, (In thousands) 2017 2016 2017 2016 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 518 $ 391 $ 41 $ 62 Interest cost 3,288 3,518 688 730 Expected return on plan assets (4,691 ) (4,847 ) — — Amortization of prior service cost (credit) 2 6 (384 ) (428 ) Amortization of actuarial loss (gain) 2,468 2,865 (1,662 ) (2,233 ) Settlement — 3,482 — — Net periodic cost $ 1,585 $ 5,415 $ (1,317 ) $ (1,869 ) Nine months ended September 30, (In thousands) 2017 2016 2017 2016 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 1,552 $ 1,171 $ 122 $ 187 Interest cost 9,862 10,779 2,059 2,306 Expected return on plan assets (14,073 ) (14,608 ) (1 ) (1 ) Amortization of prior service cost (credit) 6 17 (1,151 ) (1,284 ) Amortization of actuarial loss (gain) 7,405 8,510 (4,963 ) (5,674 ) Settlement — 3,482 — — Net periodic cost $ 4,752 $ 9,351 $ (3,934 ) $ (4,466 ) During the nine months ended September 30, 2017 and 2016 , we made no contributions to our qualified pension plans. We do not expect, nor are we required, to make contributions in 2017 . During the nine months ended September 30, 2017 , we made contributions of $0.2 million to our company-sponsored non-qualified pension plan. We estimate contributions will total $0.4 million in 2017 . We do not anticipate funding our OPEB plans in 2017 except to pay benefit costs as incurred during the year by plan participants. During the three and nine months ended September 30, 2017 , $0.2 million and $0.5 million , respectively, of net periodic pension and OPEB costs were charged to "Cost of sales" and $0.1 million and $0.3 million , respectively, were charged to "Selling, general and administrative expenses" in the accompanying Consolidated Statements of Operations. During the three and nine months ended September 30, 2016 , less than $0.1 million and $0.8 million , respectively, of net periodic pension and OPEB costs were charged to "Cost of sales" and $0.1 million and $0.6 million , respectively, were charged to "Selling, general and administrative expenses" in the accompanying Consolidated Statements of Operations. In 2016, we announced a voluntary, limited-time opportunity for former employees who are vested participants in certain of our qualified pension plans to request early payment of their entire pension plan benefit in the form of a single lump sum payment. Based on the level of payments made, settlement accounting rules applied to our salaried plan and resulted in a remeasurement of that plan. As a result of settlement accounting, we recognized a pro-rata portion of the unamortized net actuarial loss, after remeasurement, resulting in a $3.5 million non-cash charge to our earnings in the third quarter of 2016. This settlement charge was recorded to "Cost of sales" and "Selling, general and administrative expenses" for $1.9 million and $1.6 million , respectively, in our Consolidated Statement of Operations for the three and nine months ended September 30, 2016. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share are based on the weighted average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic average common shares outstanding 1 16,457,991 16,844,920 16,466,325 17,141,329 Incremental shares due to: Restricted stock units 42,122 54,796 37,021 35,853 Performance shares 50,506 104,476 42,914 74,604 Stock options 16,265 55,466 26,347 1,148 Diluted average common shares outstanding 16,566,884 17,059,658 16,572,607 17,252,934 Basic net earnings per common share $ 0.05 $ 0.05 $ 1.00 $ 2.35 Diluted net earnings per common share 0.05 0.05 0.99 2.33 Anti-dilutive shares excluded from calculation 468,624 5,783 525,655 502,293 1 Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including restricted stock units, or RSUs, performance shares and stock options, based on estimated fair values. EMPLOYEE AWARDS Employee equity-based compensation expense was recognized as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Restricted stock units $ 429 $ 352 $ 1,224 $ 1,012 Performance shares 567 877 1,793 2,313 Stock options 659 792 1,974 2,076 Total employee equity-based compensation expense $ 1,655 $ 2,021 $ 4,991 $ 5,401 As provided in the Clearwater Paper Corporation 2008 Stock Incentive Plan, the performance measure used to determine the number of performance shares ultimately issuable for awards granted in 2016 and 2015, and for 40% of performance shares granted in 2017, is a comparison of the percentile ranking of our total stockholder return compared to the stockholder return of a selected peer group. In 2017, for 60% of the performance share awards granted, a return on invested capital performance measure is used to determine the number of performance shares ultimately issuable. The number of shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0% - 200% . On December 31, 2016, the service and performance period for 45,953 outstanding shares granted in 2014 ended. Those performance shares were settled and distributed in the first quarter of 2017. The number of shares actually settled, as a percentage of the outstanding amount, was 89.0% . After adjusting for the related minimum tax withholdings, a net 27,878 shares were issued in the first quarter of 2017. During the first nine months of 2017 , 5,000 RSUs were settled and distributed. After adjusting for minimum tax withholdings, a net 3,351 shares were issued. In connection with the issued performance shares and RSUs, the minimum tax withholding payments made during the nine months ended September 30, 2017 totaled $0.8 million . During the nine months ended September 30, 2017 , we had 3,594 stock option awards expire with a weighted-average exercise price of $ 66.97 . At September 30, 2017 , we had 134,266 stock option awards that were exercisable with a weighted-average exercise price of $66.85 . The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2008 Stock Incentive Plan during the nine months ended September 30, 2017 and the grant-date fair value of the awards: Nine Months Ended September 30, 2017 Number of Average Fair Restricted stock units 66,774 $ 56.45 Performance shares 33,907 58.58 Stock options 158,484 18.82 DIRECTOR AWARDS Annually, each outside member of our Board of Directors receives deferred equity-based awards that are measured in units of our common stock and ultimately settled in cash at the time of payment. Accordingly, the compensation expense associated with these awards is subject to fluctuations each quarter based on mark-to-market adjustments at each reporting period in line with changes in the market price of our common stock. As a result of the mark-to-market adjustment, we recorded director equity-based compensation expense of $0.5 million and $0.1 million for the three months ended September 30, 2017 and 2016 , respectively. For the nine months ended September 30, 2017 and 2016 , we recorded director equity-based compensation benefit of $2.5 million and compensation expense of $4.4 million , respectively. As of September 30, 2017 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" on the accompanying Consolidated Balance Sheet were $3.8 million and $2.5 million , respectively. At December 31, 2016 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" totaled $7.9 million and $3.2 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The estimated fair values of our financial instruments at the dates presented below are as follows: September 30, December 31, 2017 2016 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash and cash equivalents (Level 1) $ 8,478 $ 8,478 $ 23,001 $ 23,001 Borrowings under revolving credit facilities (Level 1) 110,000 110,000 135,000 135,000 Long-term debt (Level 2) 575,000 568,639 575,000 567,875 Accounting guidance establishes a framework for measuring the fair value of financial instruments, providing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities, or “Level 1” measurements, followed by quoted prices of similar assets or observable market data, or “Level 2” measurements, and the lowest priority to unobservable inputs, or “Level 3” measurements. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should seek to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Business Interruption and Insur
Business Interruption and Insurance Recovery | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Business Insurance Recoveries [Text Block] | Business Interruption and Insurance Recovery On November 14, 2016, there was a fire at our Las Vegas, Nevada facility. There was minimal disruption to the converting operations at that facility. However, certain components of our paper machine were damaged, and we incurred approximately 17 days of paper machine downtime while repairs were being made. We were unable to produce through-air-dried parent rolls during this period at the Las Vegas facility. We were able to replace a portion of this lost production capacity by shipping parent rolls from our Shelby, North Carolina facility, in addition to making open market purchases. We maintain property and business interruption insurance and filed a claim with our insurance provider in the fourth quarter of 2016 to recover the cost of repairs to the equipment and estimated lost profits due to the disruption of the operations during the repair period. The total insurance claim for this event, net of policy deductible, was $3.3 million . In the fourth quarter of 2016, we recognized $1.5 million of insurance recovery associated with this claim in "Cost of sales" in our Consolidated Statement of Operations, which represented the insurance recovery for the cost of equipment repairs performed in the fourth quarter of 2016. Upon final resolution of this claim, in 2017 we recognized an additional $1.4 million in "Cost of sales" in our Consolidated Statement of Operations, which represented insurance recovery for estimated lost profits due to the disruption of operations resulting from this event. On January 28, 2017, there was a fire at our Shelby, North Carolina facility warehouse. Although the building sustained minimal damage, the smoke and water damage to raw material and finished goods inventory was more significant. Operations were impacted during the clean-up and repair period. We filed a claim with our peril and stock insurance providers to recover the cost of repairs to the equipment and estimated lost profits and inventory due to the disruption of the operations during the repair and cleanup period. Net of policy deductibles, the insurance claim for this event totaled $2.9 million , and was settled in its entirety in the first quarter of 2017. These proceeds are included in “Cost of sales” in our consolidated Statement of Operations for the nine months ended September 30, 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The table below presents information about our reportable segments: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Segment net sales: Consumer Products $ 232,916 $ 253,319 $ 707,251 $ 746,249 Pulp and Paperboard 193,588 182,001 586,441 562,946 Total segment net sales $ 426,504 $ 435,320 $ 1,293,692 $ 1,309,195 Operating income (loss): Consumer Products 1 $ 4,436 $ 17,201 $ 21,159 $ 54,135 Pulp and Paperboard 15,023 9,956 63,866 85,151 19,459 27,157 85,025 139,286 Corporate 2 (14,008 ) (17,877 ) (39,351 ) (52,079 ) Income from operations $ 5,451 $ 9,280 $ 45,674 $ 87,207 Depreciation and amortization: Consumer Products 1 $ 16,073 $ 15,022 $ 50,607 $ 42,984 Pulp and Paperboard 8,328 6,530 24,789 19,346 Corporate 1,455 1,195 4,072 3,591 Total depreciation and amortization $ 25,856 $ 22,747 $ 79,468 $ 65,921 1 Operating income for the Consumer Products segment for the three and nine months ended September 30, 2017 includes $5.1 million and $11.1 million , respectively, of costs associated with the closure of the Oklahoma City facility. These costs for the three and nine months ended September 30, 2017 includes accelerated depreciation of $4.3 million on the writedown of assets to their held for sale value. Depreciation and amortization expense for the nine months ended September 30, 2017 includes $3.7 million of accelerated depreciation associated with the Oklahoma City facility closure. 2 For the three and nine months ended September 30, 2016, corporate expenses include $3.5 million of settlement expense associated with a lump sum buyout for term-vested participants of our salaried plan, which is discussed further in Note 10, "Pension and Other Postretirement Employee Benefit Plans." |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information All of our subsidiaries that are 100% directly or indirectly owned by Clearwater Paper, guarantee our $275 million aggregate principal amount of 4.5% senior notes issued in January 2013 and due 2023, which we refer to as the 2013 Notes, on a full and unconditional, and joint and several basis. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor subsidiaries, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis. Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2017 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 423,712 $ 55,894 $ (53,102 ) $ 426,504 Cost and expenses: Cost of sales (387,696 ) (51,052 ) 52,167 (386,581 ) Selling, general and administrative expenses (24,676 ) (9,796 ) — (34,472 ) Total operating costs and expenses (412,372 ) (60,848 ) 52,167 (421,053 ) Income (loss) from operations 11,340 (4,954 ) (935 ) 5,451 Interest expense, net (7,407 ) (276 ) — (7,683 ) Earnings (loss) before income taxes 3,933 (5,230 ) (935 ) (2,232 ) Income tax (provision) benefit (1,847 ) 4,589 353 3,095 Equity in loss of subsidiary (641 ) — 641 — Net earnings (loss) $ 1,445 $ (641 ) $ 59 $ 863 Other comprehensive income, net of tax 257 — — 257 Comprehensive income (loss) $ 1,702 $ (641 ) $ 59 $ 1,120 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2017 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 1,263,467 $ 196,399 $ (166,174 ) $ 1,293,692 Cost and expenses: Cost of sales (1,137,931 ) (178,732 ) 162,319 (1,154,344 ) Selling, general and administrative expenses (71,445 ) (22,229 ) — (93,674 ) Total operating costs and expenses (1,209,376 ) (200,961 ) 162,319 (1,248,018 ) Income (loss) from operations 54,091 (4,562 ) (3,855 ) 45,674 Interest expense, net (22,981 ) (418 ) — (23,399 ) Earnings (loss) before income taxes 31,110 (4,980 ) (3,855 ) 22,275 Income tax (provision) benefit (11,857 ) 4,582 1,415 (5,860 ) Equity in loss of subsidiary (398 ) — 398 — Net earnings (loss) $ 18,855 $ (398 ) $ (2,042 ) $ 16,415 Other comprehensive income, net of tax 784 — — 784 Comprehensive income (loss) $ 19,639 $ (398 ) $ (2,042 ) $ 17,199 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 421,617 $ 70,912 $ (57,209 ) $ 435,320 Cost and expenses: Cost of sales (388,817 ) (64,997 ) 57,209 (396,605 ) Selling, general and administrative expenses (27,453 ) (1,982 ) — (29,435 ) Total operating costs and expenses (416,270 ) (66,979 ) 57,209 (426,040 ) Income from operations 5,347 3,933 — 9,280 Interest expense, net (7,411 ) (109 ) — (7,520 ) (Loss) earnings before income taxes (2,064 ) 3,824 — 1,760 Income tax benefit (provision) 661 (1,520 ) — (859 ) Equity in income of subsidiary 2,304 — (2,304 ) — Net earnings $ 901 $ 2,304 $ (2,304 ) $ 901 Other comprehensive income, net of tax 1,759 — — 1,759 Comprehensive income $ 2,660 $ 2,304 $ (2,304 ) $ 2,660 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 1,266,300 $ 216,361 $ (173,466 ) $ 1,309,195 Cost and expenses: Cost of sales (1,102,229 ) (198,340 ) 173,466 (1,127,103 ) Selling, general and administrative expenses (85,107 ) (9,778 ) — (94,885 ) Total operating costs and expenses (1,187,336 ) (208,118 ) 173,466 (1,221,988 ) Income from operations 78,964 8,243 — 87,207 Interest expense, net (22,427 ) (132 ) — (22,559 ) Earnings before income taxes 56,537 8,111 — 64,648 Income tax provision (20,933 ) (3,504 ) — (24,437 ) Equity in income of subsidiary 4,607 — (4,607 ) — Net earnings $ 40,211 $ 4,607 $ (4,607 ) $ 40,211 Other comprehensive income, net of tax 2,585 — — 2,585 Comprehensive income $ 42,796 $ 4,607 $ (4,607 ) $ 42,796 Clearwater Paper Corporation Consolidating Balance Sheet At September 30, 2017 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 8,478 $ — $ — $ 8,478 Receivables, net 116,392 19,554 — 135,946 Taxes receivable 14,543 35 — 14,578 Inventories 221,233 40,455 (3,855 ) 257,833 Other current assets 5,846 604 — 6,450 Total current assets 366,492 60,648 (3,855 ) 423,285 Property, plant and equipment, net 898,859 115,976 — 1,014,835 Goodwill 244,283 — — 244,283 Intangible assets, net 2,351 32,177 — 34,528 Intercompany receivable (payable) (4,041 ) 186 3,855 — Investment in subsidiary 144,691 — (144,691 ) — Other assets, net 11,787 3,466 (3,173 ) 12,080 TOTAL ASSETS $ 1,664,422 $ 212,453 $ (147,864 ) $ 1,729,011 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Borrowings under revolving credit facilities $ 110,000 $ — $ — $ 110,000 Accounts payable and accrued liabilities 241,938 21,210 — 263,148 Current liability for pensions and other postretirement employee benefits 7,821 — — 7,821 Total current liabilities 359,759 21,210 — 380,969 Long-term debt 570,331 — — 570,331 Liability for pensions and other postretirement employee benefits 78,440 — — 78,440 Other long-term obligations 40,800 142 — 40,942 Accrued taxes 1,721 836 — 2,557 Deferred tax liabilities 127,009 45,574 (3,173 ) 169,410 TOTAL LIABILITIES 1,178,060 67,762 (3,173 ) 1,242,649 Stockholders’ equity excluding 537,331 144,691 (144,691 ) 537,331 Accumulated other comprehensive loss, net of tax (50,969 ) — — (50,969 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,664,422 $ 212,453 $ (147,864 ) $ 1,729,011 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 19,586 $ 3,415 $ — $ 23,001 Receivables, net 130,098 27,252 (10,276 ) 147,074 Taxes receivable 15,143 35 (5,469 ) 9,709 Inventories 208,472 51,432 (1,875 ) 258,029 Other current assets 8,161 521 — 8,682 Total current assets 381,460 82,655 (17,620 ) 446,495 Property, plant and equipment, net 802,064 143,264 — 945,328 Goodwill 244,283 — — 244,283 Intangible assets, net 3,135 37,350 — 40,485 Intercompany receivable (payable) 30,034 (31,909 ) 1,875 — Investment in subsidiary 145,089 — (145,089 ) — Other assets, net 8,433 2,853 (3,535 ) 7,751 TOTAL ASSETS $ 1,614,498 $ 234,213 $ (164,369 ) $ 1,684,342 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Borrowings under revolving credit facilities $ 135,000 $ — $ — $ 135,000 Accounts payable and accrued liabilities 202,187 37,257 (15,745 ) 223,699 Current liability for pensions and other postretirement employee benefits 7,821 — — 7,821 Total current liabilities 345,008 37,257 (15,745 ) 366,520 Long-term debt 569,755 — — 569,755 Liability for pensions and other postretirement employee benefits 81,812 — — 81,812 Other long-term obligations 41,424 352 — 41,776 Accrued taxes 1,614 820 — 2,434 Deferred tax liabilities 105,012 50,695 (3,535 ) 152,172 TOTAL LIABILITIES 1,144,625 89,124 (19,280 ) 1,214,469 Stockholders’ equity excluding 521,626 145,089 (145,089 ) 521,626 Accumulated other comprehensive loss, net of tax (51,753 ) — — (51,753 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,614,498 $ 234,213 $ (164,369 ) $ 1,684,342 Clearwater Paper Corporation Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings (loss) $ 18,855 $ (398 ) $ (2,042 ) $ 16,415 Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: Depreciation and amortization 56,642 22,826 — 79,468 Equity-based compensation expense 2,523 — — 2,523 Deferred tax provision (benefit) 19,531 (4,929 ) — 14,602 Employee benefit plans (2,999 ) — — (2,999 ) Disposal of plant and equipment, net 481 3,274 — 3,755 Other, net 874 — — 874 Changes in working capital, net 32,501 3,896 7,449 43,846 Changes in taxes receivable, net 600 — (5,469 ) (4,869 ) Other, net (413 ) (1,026 ) — (1,439 ) Net cash flows from operating activities 128,595 23,643 (62 ) 152,176 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (132,725 ) (3,925 ) — (136,650 ) Other, net 283 470 — 753 Net cash flows from investing activities (132,442 ) (3,455 ) — (135,897 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of treasury stock (4,875 ) — — (4,875 ) Borrowings on revolving credit facilities 185,000 — — 185,000 Repayments of borrowings on revolving credit facilities (210,000 ) — — (210,000 ) Investment from (to) parent 23,541 (23,603 ) 62 — Other, net (927 ) — — (927 ) Net cash flows from financing activities (7,261 ) (23,603 ) 62 (30,802 ) Decrease in cash and cash equivalents (11,108 ) (3,415 ) — (14,523 ) Cash and cash equivalents at beginning of period 19,586 3,415 — 23,001 Cash and cash equivalents at end of period $ 8,478 $ — $ — $ 8,478 Clearwater Paper Corporation Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 40,211 $ 4,607 $ (4,607 ) $ 40,211 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 50,214 15,707 — 65,921 Equity-based compensation expense 9,826 — — 9,826 Deferred tax provision (benefit) 11,641 1,826 (1,138 ) 12,329 Employee benefit plans (500 ) — — (500 ) Disposal of plant and equipment, net 30 — — 30 Other, net 471 13 — 484 Changes in working capital, net 1,961 4,531 (2,447 ) 4,045 Changes in taxes receivable, net 6,178 (1,408 ) 2,447 7,217 Other, net (1,205 ) (613 ) 1,138 (680 ) Net cash flows from operating activities 118,827 24,663 (4,607 ) 138,883 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (99,912 ) (5,602 ) — (105,514 ) Other, net 250 — — 250 Net cash flows from investing activities (99,662 ) (5,602 ) — (105,264 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of treasury stock (51,528 ) — — (51,528 ) Borrowings on revolving credit facilities 944,844 — — 944,844 Repayments of borrowings on revolving credit facilities (931,832 ) — — (931,832 ) Investment from (to) parent 14,454 (19,061 ) 4,607 — Other, net (382 ) — — (382 ) Net cash flows from financing activities (24,444 ) (19,061 ) 4,607 (38,898 ) Decrease in cash and cash equivalents (5,279 ) — — (5,279 ) Cash and cash equivalents at beginning of period 5,610 — — 5,610 Cash and cash equivalents at end of period $ 331 $ — $ — $ 331 |
Nature of Operations and Basi24
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ESTIMATES | SIGNIFICANT 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant areas that may require the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain tax positions, assessment of impairment of long-lived assets, goodwill and intangibles, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. |
RESTRICTED CASH AND SHORT-TERM INVESTMENTS | CASH AND CASH EQUIVALENTS We consider all highly liquid instruments with maturities of three months or less to be cash equivalents. |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of September 30, 2017 and December 31, 2016 , we had allowances for doubtful accounts of $ 1.3 million and $1.5 million , respectively. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost, including any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new. Accumulated depreciation totaled $1,617.5 million and $1,582.0 million at September 30, 2017 and December 31, 2016 , respectively. For the nine months ended September 30, 2017 , we capitalized $3.0 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility and $0.5 million associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility. For the nine months ended September 30, 2016 , we capitalized $1.6 million of interest expense associated with the continuous pulp digester project. In June 2017, we received land with a fair market value of $4.2 million from the City of Shelby, North Carolina and Cleveland County. We must fulfill certain obligations within five years or pay the value of the land or return the title to the land. This balance is included in "Property, plant, and equipment, net," with an associated amount in "Other long-term obligations" on our Consolidated Balance Sheet as of September 30, 2017. Consistent with authoritative guidance, we assess the carrying amount of long-lived assets with definite lives that are held-for-use and evaluate them for recoverability whenever events or changes in circumstances indicate that we may be unable to recover the carrying amount of the assets. |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY On December 15, 2015, we announced that our Board of Directors had approved a stock repurchase program authorizing the repurchase of up to $100 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time. In total, we have repurchased 1,440,696 shares of our outstanding common stock as of September 30, 2017, pursuant to this repurchase program, of which 84,750 shares were repurchased during the first quarter of 2017 at an average price of $57.53 per share. We did not repurchase shares during the second or third quarters of 2017. As of September 30, 2017 , we had up to $29.8 million of authorization remaining pursuant to this stock repurchase program. During the third quarter of 2017, we retired 7,821,005 treasury shares. The impact of this retirement was reflected within the stockholders' equity line items on our Consolidated Balance Sheet. |
DERIVATIVES | DERIVATIVES We had no activity during the three and nine months ended September 30, 2017 and 2016 that required hedge or derivative accounting treatment. However, to help mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of September 30, 2017 , these contracts covered approximately 30% of our expected average monthly natural gas requirements for the remainder of 2017 , and a lesser amount for 2018. Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Pulp, paperboard and tissue products $ 158,075 $ 154,460 Materials and supplies 85,246 82,005 Logs, pulpwood, chips and sawdust 14,512 21,564 $ 257,833 $ 258,029 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible assets at the balance sheet dates are comprised of the following: September 30, 2017 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.3 $ 62,401 $ (32,387 ) $ 30,014 Trade names and trademarks 7.4 6,786 (2,743 ) 4,043 Non-compete agreements 5.0 574 (558 ) 16 Other intangibles 6.0 572 (117 ) 455 $ 70,333 $ (35,805 ) $ 34,528 December 31, 2016 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.3 $ 62,401 $ (27,364 ) $ 35,037 Trade names and trademarks 7.4 6,786 (1,972 ) 4,814 Non-compete agreements 5.0 574 (512 ) 62 Other intangibles 6.0 572 — 572 $ 70,333 $ (29,848 ) $ 40,485 |
Accounts Payable and Accrued 27
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Trade accounts payable $ 189,940 $ 128,106 Accrued wages, salaries and employee benefits 34,174 49,871 Accrued discounts and allowances 11,292 10,291 Accrued utilities 6,993 6,712 Accrued taxes other than income taxes payable 6,570 6,946 Accrued interest 5,582 12,149 Accrued transportation 2,208 1,761 Other 6,389 7,863 $ 263,148 $ 223,699 |
Other Long-Term Obligations (Ta
Other Long-Term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Obligations | Other long-term obligations at the balance sheet dates consist of: (In thousands) September 30, 2017 December 31, 2016 Long-term lease obligations, net of current portion $ 23,426 $ 23,152 Deferred proceeds 5,966 9,013 Deferred compensation 5,168 7,219 Other 6,382 2,392 $ 40,942 $ 41,776 |
Reclassification out of Accum29
Reclassification out of Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Accumulated other comprehensive loss, net of tax, is comprised of the following: (In thousands) Pension and Other Post Retirement Employee Benefit Plan Adjustments Balance at December 31, 2016 $ (51,753 ) Other comprehensive income, net of tax 1 784 Balance at September 30, 2017 $ (50,969 ) (In thousands) Pension and Other Post Retirement Employee Benefit Plan Adjustments Balance at December 31, 2015 $ (55,548 ) Other comprehensive income before reclassifications 953 Amounts reclassified from accumulated other comprehensive loss 2 $ 1,632 Other comprehensive income, net of tax 1 2,585 Balance at September 30, 2016 $ (52,963 ) 1 Included in other comprehensive income are net periodic costs associated with our pension and other postretirement employee benefit (OPEB) plans that were reclassified from accumulated other comprehensive loss. For the nine months ended September 30, 2017 and 2016 , actuarial loss amortization of $1.5 million and $1.7 million , respectively, as well as $0.7 million and $0.8 million , respectively, of prior service credit amortization were reclassified. These amounts are net of tax totaling $0.5 million and $0.6 million for each respective period. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” 2 Included in "Amounts reclassified from accumulated other comprehensive loss" above for the nine months ended September 30, 2016 is settlement expense of $3.5 million associated with the remeasurement of our salaried pension plan, which is discussed further in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” The remeasurement resulted in a settlement loss of $0.8 million recorded to the pension liability and reclassified from accumulated other comprehensive loss. The settlement expense and corresponding remeasurement are net of tax totaling $1.1 million . |
Pension and Other Postretirem30
Pension and Other Postretirement Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans | The following table details the components of net periodic cost of our company-sponsored pension and OPEB plans for the periods presented: Three Months Ended September 30, (In thousands) 2017 2016 2017 2016 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 518 $ 391 $ 41 $ 62 Interest cost 3,288 3,518 688 730 Expected return on plan assets (4,691 ) (4,847 ) — — Amortization of prior service cost (credit) 2 6 (384 ) (428 ) Amortization of actuarial loss (gain) 2,468 2,865 (1,662 ) (2,233 ) Settlement — 3,482 — — Net periodic cost $ 1,585 $ 5,415 $ (1,317 ) $ (1,869 ) Nine months ended September 30, (In thousands) 2017 2016 2017 2016 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 1,552 $ 1,171 $ 122 $ 187 Interest cost 9,862 10,779 2,059 2,306 Expected return on plan assets (14,073 ) (14,608 ) (1 ) (1 ) Amortization of prior service cost (credit) 6 17 (1,151 ) (1,284 ) Amortization of actuarial loss (gain) 7,405 8,510 (4,963 ) (5,674 ) Settlement — 3,482 — — Net periodic cost $ 4,752 $ 9,351 $ (3,934 ) $ (4,466 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings per Share | The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic average common shares outstanding 1 16,457,991 16,844,920 16,466,325 17,141,329 Incremental shares due to: Restricted stock units 42,122 54,796 37,021 35,853 Performance shares 50,506 104,476 42,914 74,604 Stock options 16,265 55,466 26,347 1,148 Diluted average common shares outstanding 16,566,884 17,059,658 16,572,607 17,252,934 Basic net earnings per common share $ 0.05 $ 0.05 $ 1.00 $ 2.35 Diluted net earnings per common share 0.05 0.05 0.99 2.33 Anti-dilutive shares excluded from calculation 468,624 5,783 525,655 502,293 1 Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Equity-Based Compensation Expense | Employee equity-based compensation expense was recognized as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Restricted stock units $ 429 $ 352 $ 1,224 $ 1,012 Performance shares 567 877 1,793 2,313 Stock options 659 792 1,974 2,076 Total employee equity-based compensation expense $ 1,655 $ 2,021 $ 4,991 $ 5,401 |
Summary of Number of Share-Based Awards Granted | The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2008 Stock Incentive Plan during the nine months ended September 30, 2017 and the grant-date fair value of the awards: Nine Months Ended September 30, 2017 Number of Average Fair Restricted stock units 66,774 $ 56.45 Performance shares 33,907 58.58 Stock options 158,484 18.82 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of our financial instruments at the dates presented below are as follows: September 30, December 31, 2017 2016 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash and cash equivalents (Level 1) $ 8,478 $ 8,478 $ 23,001 $ 23,001 Borrowings under revolving credit facilities (Level 1) 110,000 110,000 135,000 135,000 Long-term debt (Level 2) 575,000 568,639 575,000 567,875 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments Information | The table below presents information about our reportable segments: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Segment net sales: Consumer Products $ 232,916 $ 253,319 $ 707,251 $ 746,249 Pulp and Paperboard 193,588 182,001 586,441 562,946 Total segment net sales $ 426,504 $ 435,320 $ 1,293,692 $ 1,309,195 Operating income (loss): Consumer Products 1 $ 4,436 $ 17,201 $ 21,159 $ 54,135 Pulp and Paperboard 15,023 9,956 63,866 85,151 19,459 27,157 85,025 139,286 Corporate 2 (14,008 ) (17,877 ) (39,351 ) (52,079 ) Income from operations $ 5,451 $ 9,280 $ 45,674 $ 87,207 Depreciation and amortization: Consumer Products 1 $ 16,073 $ 15,022 $ 50,607 $ 42,984 Pulp and Paperboard 8,328 6,530 24,789 19,346 Corporate 1,455 1,195 4,072 3,591 Total depreciation and amortization $ 25,856 $ 22,747 $ 79,468 $ 65,921 1 Operating income for the Consumer Products segment for the three and nine months ended September 30, 2017 includes $5.1 million and $11.1 million , respectively, of costs associated with the closure of the Oklahoma City facility. These costs for the three and nine months ended September 30, 2017 includes accelerated depreciation of $4.3 million on the writedown of assets to their held for sale value. Depreciation and amortization expense for the nine months ended September 30, 2017 includes $3.7 million of accelerated depreciation associated with the Oklahoma City facility closure. 2 For the three and nine months ended September 30, 2016, corporate expenses include $3.5 million of settlement expense associated with a lump sum buyout for term-vested participants of our salaried plan, which is discussed further in Note 10, "Pension and Other Postretirement Employee Benefit Plans." |
Supplemental Guarantor Financ35
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2017 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 423,712 $ 55,894 $ (53,102 ) $ 426,504 Cost and expenses: Cost of sales (387,696 ) (51,052 ) 52,167 (386,581 ) Selling, general and administrative expenses (24,676 ) (9,796 ) — (34,472 ) Total operating costs and expenses (412,372 ) (60,848 ) 52,167 (421,053 ) Income (loss) from operations 11,340 (4,954 ) (935 ) 5,451 Interest expense, net (7,407 ) (276 ) — (7,683 ) Earnings (loss) before income taxes 3,933 (5,230 ) (935 ) (2,232 ) Income tax (provision) benefit (1,847 ) 4,589 353 3,095 Equity in loss of subsidiary (641 ) — 641 — Net earnings (loss) $ 1,445 $ (641 ) $ 59 $ 863 Other comprehensive income, net of tax 257 — — 257 Comprehensive income (loss) $ 1,702 $ (641 ) $ 59 $ 1,120 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2017 Guarantor (In thousands) Issuer Subsidiaries Eliminations Total Net sales $ 1,263,467 $ 196,399 $ (166,174 ) $ 1,293,692 Cost and expenses: Cost of sales (1,137,931 ) (178,732 ) 162,319 (1,154,344 ) Selling, general and administrative expenses (71,445 ) (22,229 ) — (93,674 ) Total operating costs and expenses (1,209,376 ) (200,961 ) 162,319 (1,248,018 ) Income (loss) from operations 54,091 (4,562 ) (3,855 ) 45,674 Interest expense, net (22,981 ) (418 ) — (23,399 ) Earnings (loss) before income taxes 31,110 (4,980 ) (3,855 ) 22,275 Income tax (provision) benefit (11,857 ) 4,582 1,415 (5,860 ) Equity in loss of subsidiary (398 ) — 398 — Net earnings (loss) $ 18,855 $ (398 ) $ (2,042 ) $ 16,415 Other comprehensive income, net of tax 784 — — 784 Comprehensive income (loss) $ 19,639 $ (398 ) $ (2,042 ) $ 17,199 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 421,617 $ 70,912 $ (57,209 ) $ 435,320 Cost and expenses: Cost of sales (388,817 ) (64,997 ) 57,209 (396,605 ) Selling, general and administrative expenses (27,453 ) (1,982 ) — (29,435 ) Total operating costs and expenses (416,270 ) (66,979 ) 57,209 (426,040 ) Income from operations 5,347 3,933 — 9,280 Interest expense, net (7,411 ) (109 ) — (7,520 ) (Loss) earnings before income taxes (2,064 ) 3,824 — 1,760 Income tax benefit (provision) 661 (1,520 ) — (859 ) Equity in income of subsidiary 2,304 — (2,304 ) — Net earnings $ 901 $ 2,304 $ (2,304 ) $ 901 Other comprehensive income, net of tax 1,759 — — 1,759 Comprehensive income $ 2,660 $ 2,304 $ (2,304 ) $ 2,660 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 1,266,300 $ 216,361 $ (173,466 ) $ 1,309,195 Cost and expenses: Cost of sales (1,102,229 ) (198,340 ) 173,466 (1,127,103 ) Selling, general and administrative expenses (85,107 ) (9,778 ) — (94,885 ) Total operating costs and expenses (1,187,336 ) (208,118 ) 173,466 (1,221,988 ) Income from operations 78,964 8,243 — 87,207 Interest expense, net (22,427 ) (132 ) — (22,559 ) Earnings before income taxes 56,537 8,111 — 64,648 Income tax provision (20,933 ) (3,504 ) — (24,437 ) Equity in income of subsidiary 4,607 — (4,607 ) — Net earnings $ 40,211 $ 4,607 $ (4,607 ) $ 40,211 Other comprehensive income, net of tax 2,585 — — 2,585 Comprehensive income $ 42,796 $ 4,607 $ (4,607 ) $ 42,796 |
Condensed Consolidating Balance Sheet | Clearwater Paper Corporation Consolidating Balance Sheet At September 30, 2017 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 8,478 $ — $ — $ 8,478 Receivables, net 116,392 19,554 — 135,946 Taxes receivable 14,543 35 — 14,578 Inventories 221,233 40,455 (3,855 ) 257,833 Other current assets 5,846 604 — 6,450 Total current assets 366,492 60,648 (3,855 ) 423,285 Property, plant and equipment, net 898,859 115,976 — 1,014,835 Goodwill 244,283 — — 244,283 Intangible assets, net 2,351 32,177 — 34,528 Intercompany receivable (payable) (4,041 ) 186 3,855 — Investment in subsidiary 144,691 — (144,691 ) — Other assets, net 11,787 3,466 (3,173 ) 12,080 TOTAL ASSETS $ 1,664,422 $ 212,453 $ (147,864 ) $ 1,729,011 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Borrowings under revolving credit facilities $ 110,000 $ — $ — $ 110,000 Accounts payable and accrued liabilities 241,938 21,210 — 263,148 Current liability for pensions and other postretirement employee benefits 7,821 — — 7,821 Total current liabilities 359,759 21,210 — 380,969 Long-term debt 570,331 — — 570,331 Liability for pensions and other postretirement employee benefits 78,440 — — 78,440 Other long-term obligations 40,800 142 — 40,942 Accrued taxes 1,721 836 — 2,557 Deferred tax liabilities 127,009 45,574 (3,173 ) 169,410 TOTAL LIABILITIES 1,178,060 67,762 (3,173 ) 1,242,649 Stockholders’ equity excluding 537,331 144,691 (144,691 ) 537,331 Accumulated other comprehensive loss, net of tax (50,969 ) — — (50,969 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,664,422 $ 212,453 $ (147,864 ) $ 1,729,011 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 19,586 $ 3,415 $ — $ 23,001 Receivables, net 130,098 27,252 (10,276 ) 147,074 Taxes receivable 15,143 35 (5,469 ) 9,709 Inventories 208,472 51,432 (1,875 ) 258,029 Other current assets 8,161 521 — 8,682 Total current assets 381,460 82,655 (17,620 ) 446,495 Property, plant and equipment, net 802,064 143,264 — 945,328 Goodwill 244,283 — — 244,283 Intangible assets, net 3,135 37,350 — 40,485 Intercompany receivable (payable) 30,034 (31,909 ) 1,875 — Investment in subsidiary 145,089 — (145,089 ) — Other assets, net 8,433 2,853 (3,535 ) 7,751 TOTAL ASSETS $ 1,614,498 $ 234,213 $ (164,369 ) $ 1,684,342 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Borrowings under revolving credit facilities $ 135,000 $ — $ — $ 135,000 Accounts payable and accrued liabilities 202,187 37,257 (15,745 ) 223,699 Current liability for pensions and other postretirement employee benefits 7,821 — — 7,821 Total current liabilities 345,008 37,257 (15,745 ) 366,520 Long-term debt 569,755 — — 569,755 Liability for pensions and other postretirement employee benefits 81,812 — — 81,812 Other long-term obligations 41,424 352 — 41,776 Accrued taxes 1,614 820 — 2,434 Deferred tax liabilities 105,012 50,695 (3,535 ) 152,172 TOTAL LIABILITIES 1,144,625 89,124 (19,280 ) 1,214,469 Stockholders’ equity excluding 521,626 145,089 (145,089 ) 521,626 Accumulated other comprehensive loss, net of tax (51,753 ) — — (51,753 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,614,498 $ 234,213 $ (164,369 ) $ 1,684,342 |
Condensed Consolidating Statement of Cash Flows | learwater Paper Corporation Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings (loss) $ 18,855 $ (398 ) $ (2,042 ) $ 16,415 Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: Depreciation and amortization 56,642 22,826 — 79,468 Equity-based compensation expense 2,523 — — 2,523 Deferred tax provision (benefit) 19,531 (4,929 ) — 14,602 Employee benefit plans (2,999 ) — — (2,999 ) Disposal of plant and equipment, net 481 3,274 — 3,755 Other, net 874 — — 874 Changes in working capital, net 32,501 3,896 7,449 43,846 Changes in taxes receivable, net 600 — (5,469 ) (4,869 ) Other, net (413 ) (1,026 ) — (1,439 ) Net cash flows from operating activities 128,595 23,643 (62 ) 152,176 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (132,725 ) (3,925 ) — (136,650 ) Other, net 283 470 — 753 Net cash flows from investing activities (132,442 ) (3,455 ) — (135,897 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of treasury stock (4,875 ) — — (4,875 ) Borrowings on revolving credit facilities 185,000 — — 185,000 Repayments of borrowings on revolving credit facilities (210,000 ) — — (210,000 ) Investment from (to) parent 23,541 (23,603 ) 62 — Other, net (927 ) — — (927 ) Net cash flows from financing activities (7,261 ) (23,603 ) 62 (30,802 ) Decrease in cash and cash equivalents (11,108 ) (3,415 ) — (14,523 ) Cash and cash equivalents at beginning of period 19,586 3,415 — 23,001 Cash and cash equivalents at end of period $ 8,478 $ — $ — $ 8,478 Clearwater Paper Corporation Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 40,211 $ 4,607 $ (4,607 ) $ 40,211 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 50,214 15,707 — 65,921 Equity-based compensation expense 9,826 — — 9,826 Deferred tax provision (benefit) 11,641 1,826 (1,138 ) 12,329 Employee benefit plans (500 ) — — (500 ) Disposal of plant and equipment, net 30 — — 30 Other, net 471 13 — 484 Changes in working capital, net 1,961 4,531 (2,447 ) 4,045 Changes in taxes receivable, net 6,178 (1,408 ) 2,447 7,217 Other, net (1,205 ) (613 ) 1,138 (680 ) Net cash flows from operating activities 118,827 24,663 (4,607 ) 138,883 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (99,912 ) (5,602 ) — (105,514 ) Other, net 250 — — 250 Net cash flows from investing activities (99,662 ) (5,602 ) — (105,264 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of treasury stock (51,528 ) — — (51,528 ) Borrowings on revolving credit facilities 944,844 — — 944,844 Repayments of borrowings on revolving credit facilities (931,832 ) — — (931,832 ) Investment from (to) parent 14,454 (19,061 ) 4,607 — Other, net (382 ) — — (382 ) Net cash flows from financing activities (24,444 ) (19,061 ) 4,607 (38,898 ) Decrease in cash and cash equivalents (5,279 ) — — (5,279 ) Cash and cash equivalents at beginning of period 5,610 — — 5,610 Cash and cash equivalents at end of period $ 331 $ — $ — $ 331 |
Nature of Operations and Basi36
Nature of Operations and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 22 Months Ended | |||||||
Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Oct. 27, 2017 | Jun. 30, 2017 | Dec. 15, 2015 | |
Nature of Operations | ||||||||||
Business Combination, Consideration Transferred | $ 71,700 | |||||||||
Restricted Cash and Cash Equivalents, Current | $ 0 | 0 | $ 0 | $ 0 | ||||||
Restricted Cash and Cash Equivalents, Noncurrent | 0 | 0 | 0 | 0 | ||||||
Allowance for doubtful accounts | 1,300 | 1,500 | 1,300 | 1,300 | ||||||
Accumulated depreciation | 1,617,500 | $ 1,582,000 | 1,617,500 | 1,617,500 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 29,800 | $ 29,800 | $ 29,800 | |||||||
Percentage Of Expected Natural Gas Requirement Covered Under Contract | 30.00% | 30.00% | 30.00% | |||||||
Interest Costs Capitalized | $ 3,000 | $ 1,600 | ||||||||
Shelby paper machine interest cost capitalized | 500 | |||||||||
Entity Common Stock, Shares Outstanding | 16,433,415 | |||||||||
Land | $ 4,200 | |||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 3,000 | $ 4,300 | ||||||||
Other Nonrecurring Expense, Planned Permaent Facility Closure | $ 800 | $ 6,800 | ||||||||
Treasury Stock, Shares | 7,821,005 | 7,821,005 | 7,821,005 | |||||||
Common Stock | ||||||||||
Nature of Operations | ||||||||||
Common stock repurchase authorized | $ 100,000 | |||||||||
Number of shares repurchased (in shares) | 84,750 | 1,440,696 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 57.53 |
Recently Adopted and New Acco37
Recently Adopted and New Accounting Standards Recently Adopted and New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Proceeds and Excess Tax Benefit from Share-based Compensation | $ 1 | |
Diluted EPS impact of adoption of ASU 2016-09 | $ 0.06 | |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 5.3 | |
Defined Benefit Plan, Service Cost | $ 1.8 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Pulp, paperboard and tissue products | $ 158,075 | $ 154,460 |
Materials and supplies | 85,246 | 82,005 |
Logs, pulpwood, chips and sawdust | 14,512 | 21,564 |
Inventories | $ 257,833 | $ 258,029 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 2,000 | $ 1,100 | $ 6,000 | $ 3,200 | |
Historical Cost | 70,333 | 70,333 | $ 70,333 | ||
Accumulated Amortization | (35,805) | (35,805) | (29,848) | ||
Net Balance | 34,528 | $ 34,528 | $ 40,485 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 9 years 4 months | 9 years 4 months | |||
Historical Cost | 62,401 | $ 62,401 | $ 62,401 | ||
Accumulated Amortization | (32,387) | (32,387) | (27,364) | ||
Net Balance | 30,014 | $ 30,014 | $ 35,037 | ||
Tradenames and trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 7 years 5 months | 7 years 5 months | |||
Historical Cost | 6,786 | $ 6,786 | $ 6,786 | ||
Accumulated Amortization | (2,743) | (2,743) | (1,972) | ||
Net Balance | 4,043 | $ 4,043 | $ 4,814 | ||
Non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 5 years | 5 years | |||
Historical Cost | 574 | $ 574 | $ 574 | ||
Accumulated Amortization | (558) | (558) | (512) | ||
Net Balance | 16 | $ 16 | $ 62 | ||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 6 years | 6 years | |||
Historical Cost | 572 | $ 572 | $ 572 | ||
Accumulated Amortization | (117) | (117) | 0 | ||
Net Balance | $ 455 | $ 455 | $ 572 |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Estimated Annual Effective Tax Rate | 34.00% | 36.00% | |
Proceeds and Excess Tax Benefit from Share-based Compensation | $ 1 |
Accounts Payable and Accrued 41
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 189,940 | $ 128,106 |
Accrued wages, salaries and employee benefits | 34,174 | 49,871 |
Accrued discounts and allowances | 11,292 | 10,291 |
Accrued taxes other than income taxes payable | 6,570 | 6,946 |
Accrued utilities | 6,993 | 6,712 |
Accrued interest | 5,582 | 12,149 |
Accrued Transportation Current | 2,208 | 1,761 |
Other | 6,389 | 7,863 |
Accounts payable and accrued liabilities | $ 263,148 | $ 223,699 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jan. 21, 2013 | |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 110,000 | $ 135,000 | ||
Line of Credit, Current | 110,000 | $ 135,000 | ||
Repayments of Lines of Credit | 210,000 | $ 931,832 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.0125 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.02 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | |||
Contractual Interest Rate Reduction [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.01 | |||
Interest rate increase [Domain] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | 0.0025 | |||
Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 275,000 | |||
Debt instrument, interest rate | 4.50% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding stand by letters of credit | $ 6,800 | |||
Credit facility available to draw | 183,200 | |||
Northwest Farm Credit [Domain] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | |||
Wells Fargo [Domain] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Liabilities, Noncurrent [Abstract] | ||
Long-term lease obligations, net of current portion | $ 23,426 | $ 23,152 |
Deferred proceeds | 5,966 | 9,013 |
Deferred compensation | 5,168 | 7,219 |
Other | 6,382 | 2,392 |
Other long-term obligations | $ 40,942 | $ 41,776 |
Reclassification out of Accum44
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Net of Tax | $ (487) | $ (384) | $ (1,475) | $ (1,723) | ||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | 800 | |||||
Period opening balance | (51,753) | |||||
Net current period other comprehensive income ending balance | 257 | 1,759 | 784 | 2,585 | ||
Period closing balance | (50,969) | (50,969) | $ (51,753) | |||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Net of Tax | (230) | (257) | (691) | (770) | ||
Other comprehensive income (loss), tax | 500 | 600 | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | 3,500 | |||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | 0 | 1,054 | 0 | (1,054) | ||
Defined Benefit Pension Plan Adjustments | ||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 953 | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,632 | |||||
Period opening balance | (52,963) | (51,753) | (55,548) | (55,548) | ||
Net current period other comprehensive income ending balance | [1] | 784 | 2,585 | |||
Period closing balance | (50,969) | (50,969) | $ (51,753) | |||
Pension Plan [Member] | ||||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 0 | $ 3,482 | $ 0 | $ 3,482 | ||
[1] | Included in other comprehensive income are net periodic costs associated with our pension and other postretirement employee benefit (OPEB) plans that were reclassified from accumulated other comprehensive loss. For the nine months ended September 30, 2017 and 2016, actuarial loss amortization of $1.5 million and $1.7 million, respectively, as well as $0.7 million and $0.8 million, respectively, of prior service credit amortization were reclassified. These amounts are net of tax totaling $0.5 million and $0.6 million for each respective period. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” 2 Included in "Amounts reclassified from accumulated other comprehensive loss" above for the nine months ended September 30, 2016 is settlement expense of $3.5 million associated with the remeasurement of our salaried pension plan, which is discussed further in Note 10, “Pension and Other Postretirement Employee Benefit Plans.” The remeasurement resulted in a settlement loss of $0.8 million recorded to the pension liability and reclassified from accumulated other comprehensive loss. The settlement expense and corresponding remeasurement are net of tax totaling $1.1 million. |
Pension and Other Postretirem45
Pension and Other Postretirement Employee Benefit Plans - Additional Information (Detail 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 5,300 | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 0 | ||||
Supplemental Employee Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | 200 | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 400 | ||||
Non Qualified Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ (1,317) | $ (1,869) | (3,934) | $ (4,466) | |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 1,585 | 5,415 | 4,752 | 9,351 | |
Employer contribution | 0 | 0 | |||
Cost of Sales [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 200 | 100 | 500 | 800 | |
Selling, General and Administrative Expenses [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | $ 100 | $ 100 | $ 300 | $ 600 |
Pension and Other Postretirem46
Pension and Other Postretirement Employee Benefit Plans Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans (Detail 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 3,500 | |||||
Defined Benefit Plan, Service Cost | $ 1,800 | |||||
Net periodic cost | 5,300 | |||||
Pension Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 0 | $ 3,482 | $ 0 | 3,482 | ||
Defined Benefit Plan, Service Cost | 518 | 391 | 1,552 | 1,171 | ||
Interest cost | 3,288 | 3,518 | 9,862 | 10,779 | ||
Expected return on plan assets | (4,691) | (4,847) | (14,073) | (14,608) | ||
Amortization of prior service cost (credit) | 2 | 6 | 6 | 17 | ||
Amortization of actuarial loss | 2,468 | 2,865 | 7,405 | 8,510 | ||
Net periodic cost | 1,585 | 5,415 | 4,752 | 9,351 | ||
Other Postretirement Employee Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | $ 0 | $ 0 | ||
Defined Benefit Plan, Service Cost | 41 | 62 | 122 | 187 | ||
Interest cost | 688 | 730 | 2,059 | 2,306 | ||
Expected return on plan assets | 0 | 0 | (1) | (1) | ||
Amortization of prior service cost (credit) | (384) | (428) | (1,151) | (1,284) | ||
Amortization of actuarial loss | (1,662) | (2,233) | (4,963) | (5,674) | ||
Net periodic cost | (1,317) | (1,869) | (3,934) | (4,466) | ||
Selling, General and Administrative Expenses [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 100 | 100 | 300 | 600 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | 1,600 | |||||
Cost of Sales [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | $ 200 | $ 100 | $ 500 | 800 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 1,900 |
Earnings per Common Share Recon
Earnings per Common Share Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings Per Share (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Basic average common shares outstanding | [1] | 16,457,991 | 16,844,920 | 16,466,325 | 17,141,329 |
Incremental shares due to: | |||||
Restricted stock units | 42,122 | 54,796 | 37,021 | 35,853 | |
Performance shares | 50,506 | 104,476 | 42,914 | 74,604 | |
Incremental Common Shares Attributable to Stock Options | 16,265 | 55,466 | 26,347 | 1,148 | |
Diluted average common shares outstanding | 16,566,884 | 17,059,658 | 16,572,607 | 17,252,934 | |
Basic net earnings per common share (in dollars per share) | $ 0.05 | $ 0.05 | $ 1 | $ 2.35 | |
Diluted net earnings per common share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.99 | $ 2.33 | |
Anti-dilutive shares excluded from calculation | 468,624 | 5,783 | 525,655 | 502,293 | |
[1] | Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance share payout measured by total shareholder return | 40.00% | 40.00% | |||
Percentage of performance share payout measured by return on invested capital | 60.00% | 60.00% | |||
Allocated Share-based Compensation Expense | $ 1,655 | $ 2,021 | $ 4,991 | $ 5,401 | |
Cash paid for minimum tax withholdings | $ 790 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 89.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 3,594 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 66.97 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 134,266 | 134,266 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 66.85 | $ 66.85 | |||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 567 | 877 | $ 1,793 | 2,313 | |
Shares issued (in shares) | 27,878 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 45,953 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 429 | 352 | $ 1,224 | 1,012 | |
Shares issued (in shares) | 3,351 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 5,000 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 659 | 792 | $ 1,974 | 2,076 | |
Options, Grants in Period, Gross | 158,484 | ||||
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 500 | $ 100 | $ 4,400 | ||
Share Based Compensation Arrangement By Share Based Payment Award Compensation Cost Reversal | $ (2,500) | ||||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | 2,500 | 2,500 | $ 7,900 | ||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ 3,800 | $ 3,800 | $ 3,200 | ||
Minimum | Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 0.00% | 0.00% | |||
Maximum | Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Outstanding Award As Percentage Of Shares Issued | 200.00% | 200.00% |
Equity-Based Compensation Emplo
Equity-Based Compensation Employee Equity Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 1,655 | $ 2,021 | $ 4,991 | $ 5,401 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 429 | 352 | 1,224 | 1,012 |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 567 | 877 | 1,793 | 2,313 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 659 | $ 792 | $ 1,974 | $ 2,076 |
Equity-Based Compensation Summa
Equity-Based Compensation Summary of Number of Share-Based Awards Granted (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 33,907 |
Grant-date fair value of awards per share | $ / shares | $ 58.58 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 66,774 |
Grant-date fair value of awards per share | $ / shares | $ 56.45 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant-date fair value of awards per share | $ / shares | $ 18.82 |
Options, Grants in Period, Gross | shares | 158,484 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 110,000 | $ 135,000 |
Line of Credit, Current | 110,000 | 135,000 |
Cash, restricted cash, and short-term investments (Level 1) | 8,478 | 23,001 |
Long-term debt (Level 1) | 568,639 | 567,875 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 110,000 | 135,000 |
Cash, restricted cash, and short-term investments (Level 1) | 8,478 | 23,001 |
Long-term debt (Level 1) | $ 575,000 | $ 575,000 |
Business Interruption and Ins52
Business Interruption and Insurance Recovery (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Mar. 31, 2017 | Sep. 30, 2017 | |
Shelby facility [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Insurance and Claims Costs, Production | $ 2.9 | ||
Las Vegas facility [Member] [Domain] | |||
Segment Reporting Information [Line Items] | |||
Operating Insurance and Claims Costs, Production | $ 1.5 | $ 3.3 | $ 1.4 |
Segment Information Reportable
Segment Information Reportable Segments Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||||
Other Nonrecurring Expense, Planned Permaent Facility Closure | $ 800 | $ 6,800 | ||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 3,000 | 4,300 | ||||||
Net sales | 426,504 | $ 435,320 | 1,293,692 | $ 1,309,195 | ||||
Income from operations | 5,451 | 9,280 | 45,674 | 87,207 | ||||
Depreciation and amortization | 25,856 | 22,747 | 79,468 | 65,921 | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | 3,500 | |||||||
Consumer Products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 232,916 | 253,319 | 707,251 | 746,249 | ||||
Income from operations | 4,436 | [1] | 17,201 | [1] | 21,159 | 54,135 | ||
Depreciation and amortization | 16,073 | [1] | 15,022 | [1] | 50,607 | 42,984 | ||
Pulp and Paperboard | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 193,588 | 182,001 | 586,441 | 562,946 | ||||
Income from operations | 15,023 | 9,956 | 63,866 | 85,151 | ||||
Depreciation and amortization | 8,328 | 6,530 | 24,789 | 19,346 | ||||
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from operations | 19,459 | 27,157 | 85,025 | 139,286 | ||||
Corporate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from operations | (14,008) | (17,877) | [2] | (39,351) | (52,079) | [2] | ||
Depreciation and amortization | 1,455 | $ 1,195 | 4,072 | $ 3,591 | ||||
Oklahoma City [Domain] | Consumer Products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Other Nonrecurring Expense, Planned Permaent Facility Closure | $ 5,100 | 11,100 | ||||||
Restructuring and Related Cost, Accelerated Depreciation | $ 3,700 | |||||||
[1] | 1 Operating income for the Consumer Products segment for the three and nine months ended September 30, 2017 includes $5.1 million and $11.1 million, respectively, of costs associated with the closure of the Oklahoma City facility. These costs for the three and nine months ended September 30, 2017 includes accelerated depreciation of $4.3 million on the writedown of assets to their held for sale value. Depreciation and amortization expense for the nine months ended September 30, 2017 includes $3.7 million of accelerated depreciation associated with the Oklahoma City facility closure. | |||||||
[2] | 2 For the three and nine months ended September 30, 2016, corporate expenses include $3.5 million of settlement expense associated with a lump sum buyout for term-vested participants of our salaried plan, which is discussed further in Note 10, "Pension and Other Postretirement Employee Benefit Plans." |
Supplemental Guarantor Financ54
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | $ 426,504 | $ 435,320 | $ 1,293,692 | $ 1,309,195 |
Cost and expenses: | ||||
Cost of sales | (386,581) | (396,605) | (1,154,344) | (1,127,103) |
Selling, general and administrative expenses | (34,472) | (29,435) | (93,674) | (94,885) |
Total operating costs and expenses | (421,053) | (426,040) | (1,248,018) | (1,221,988) |
Income (loss) from operations | 5,451 | 9,280 | 45,674 | 87,207 |
Interest expense, net | (7,683) | (7,520) | (23,399) | (22,559) |
Earnings (loss) before income taxes | (2,232) | 1,760 | 22,275 | 64,648 |
Income tax (provision) benefit | 3,095 | (859) | (5,860) | (24,437) |
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 |
Net earnings (loss) | 863 | 901 | 16,415 | 40,211 |
Other comprehensive income, net of tax | 257 | 1,759 | 784 | 2,585 |
Comprehensive income | 1,120 | 2,660 | 17,199 | 42,796 |
Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 423,712 | 421,617 | 1,263,467 | 1,266,300 |
Cost and expenses: | ||||
Cost of sales | (387,696) | (388,817) | (1,137,931) | (1,102,229) |
Selling, general and administrative expenses | (24,676) | (27,453) | (71,445) | (85,107) |
Total operating costs and expenses | (412,372) | (416,270) | (1,209,376) | (1,187,336) |
Income (loss) from operations | 11,340 | 5,347 | 54,091 | 78,964 |
Interest expense, net | (7,407) | (7,411) | (22,981) | (22,427) |
Earnings (loss) before income taxes | 3,933 | (2,064) | 31,110 | 56,537 |
Income tax (provision) benefit | (1,847) | 661 | (11,857) | (20,933) |
Equity in income (loss) of subsidiary | (641) | 2,304 | (398) | 4,607 |
Net earnings (loss) | 1,445 | 901 | 18,855 | 40,211 |
Other comprehensive income, net of tax | 257 | 1,759 | 784 | 2,585 |
Comprehensive income | 1,702 | 2,660 | 19,639 | 42,796 |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 55,894 | 70,912 | 196,399 | 216,361 |
Cost and expenses: | ||||
Cost of sales | (51,052) | (64,997) | (178,732) | (198,340) |
Selling, general and administrative expenses | (9,796) | (1,982) | (22,229) | (9,778) |
Total operating costs and expenses | (60,848) | (66,979) | (200,961) | (208,118) |
Income (loss) from operations | (4,954) | 3,933 | (4,562) | 8,243 |
Interest expense, net | (276) | (109) | (418) | (132) |
Earnings (loss) before income taxes | (5,230) | 3,824 | (4,980) | 8,111 |
Income tax (provision) benefit | 4,589 | (1,520) | 4,582 | (3,504) |
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 |
Net earnings (loss) | (641) | 2,304 | (398) | 4,607 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | (641) | 2,304 | (398) | 4,607 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (53,102) | (57,209) | (166,174) | (173,466) |
Cost and expenses: | ||||
Cost of sales | 52,167 | 57,209 | 162,319 | 173,466 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Total operating costs and expenses | 52,167 | 57,209 | 162,319 | 173,466 |
Income (loss) from operations | (935) | 0 | (3,855) | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | (935) | 0 | (3,855) | 0 |
Income tax (provision) benefit | 353 | 0 | 1,415 | 0 |
Equity in income (loss) of subsidiary | 641 | (2,304) | 398 | (4,607) |
Net earnings (loss) | 59 | (2,304) | (2,042) | (4,607) |
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | $ 59 | $ (2,304) | $ (2,042) | $ (4,607) |
Supplemental Guarantor Financ55
Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash | $ 8,478 | $ 23,001 | $ 331 | $ 5,610 |
Restricted cash | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Receivables, net | 135,946 | 147,074 | ||
Taxes receivable | 14,578 | 9,709 | ||
Inventories | 257,833 | 258,029 | ||
Other Assets, Current | 6,450 | 8,682 | ||
Total current assets | 423,285 | 446,495 | ||
Property, plant and equipment, net | 1,014,835 | 945,328 | ||
Goodwill | 244,283 | 244,283 | ||
Intangible assets, net | 34,528 | 40,485 | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 12,080 | 7,751 | ||
TOTAL ASSETS | 1,729,011 | 1,684,342 | ||
Line of Credit, Current | 110,000 | 135,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 263,148 | 223,699 | ||
Current liability for pensions and other postretirement employee benefits | 7,821 | 7,821 | ||
Total current liabilities | 380,969 | 366,520 | ||
Long-term debt | 570,331 | 569,755 | ||
Liability for pensions and other postretirement employee benefits | 78,440 | 81,812 | ||
Other long-term obligations | 40,942 | 41,776 | ||
Accrued taxes | 2,557 | 2,434 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 169,410 | 152,172 | ||
Liabilities | 1,242,649 | 1,214,469 | ||
Accumulated other comprehensive loss, net of tax | (50,969) | (51,753) | ||
Stockholders' equity excluding accumulated other comprehensive loss | 537,331 | 521,626 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,729,011 | 1,684,342 | ||
Issuer | ||||
Current assets: | ||||
Cash | 8,478 | 19,586 | 331 | 5,610 |
Receivables, net | 116,392 | 130,098 | ||
Taxes receivable | 14,543 | 15,143 | ||
Inventories | 221,233 | 208,472 | ||
Other Assets, Current | 5,846 | 8,161 | ||
Total current assets | 366,492 | 381,460 | ||
Property, plant and equipment, net | 898,859 | 802,064 | ||
Goodwill | 244,283 | 244,283 | ||
Intangible assets, net | 2,351 | 3,135 | ||
Intercompany receivable (payable) | (4,041) | 30,034 | ||
Investment in subsidiary | 144,691 | 145,089 | ||
Other assets, net | 11,787 | 8,433 | ||
TOTAL ASSETS | 1,664,422 | 1,614,498 | ||
Line of Credit, Current | 110,000 | 135,000 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 241,938 | 202,187 | ||
Current liability for pensions and other postretirement employee benefits | 7,821 | 7,821 | ||
Total current liabilities | 359,759 | 345,008 | ||
Long-term debt | 570,331 | 569,755 | ||
Liability for pensions and other postretirement employee benefits | 78,440 | 81,812 | ||
Other long-term obligations | 40,800 | 41,424 | ||
Accrued taxes | 1,721 | 1,614 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 127,009 | 105,012 | ||
Liabilities | 1,178,060 | 1,144,625 | ||
Accumulated other comprehensive loss, net of tax | (50,969) | (51,753) | ||
Stockholders' equity excluding accumulated other comprehensive loss | 537,331 | 521,626 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,664,422 | 1,614,498 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash | 0 | 3,415 | 0 | 0 |
Receivables, net | 19,554 | 27,252 | ||
Taxes receivable | 35 | 35 | ||
Inventories | 40,455 | 51,432 | ||
Other Assets, Current | 604 | 521 | ||
Total current assets | 60,648 | 82,655 | ||
Property, plant and equipment, net | 115,976 | 143,264 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 32,177 | 37,350 | ||
Intercompany receivable (payable) | 186 | (31,909) | ||
Investment in subsidiary | 0 | 0 | ||
Other assets, net | 3,466 | 2,853 | ||
TOTAL ASSETS | 212,453 | 234,213 | ||
Line of Credit, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 21,210 | 37,257 | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | 21,210 | 37,257 | ||
Long-term debt | 0 | 0 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Other long-term obligations | 142 | 352 | ||
Accrued taxes | 836 | 820 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 45,574 | 50,695 | ||
Liabilities | 67,762 | 89,124 | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders' equity excluding accumulated other comprehensive loss | 144,691 | 145,089 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 212,453 | 234,213 | ||
Eliminations | ||||
Current assets: | ||||
Cash | 0 | 0 | $ 0 | $ 0 |
Receivables, net | 0 | (10,276) | ||
Taxes receivable | 0 | (5,469) | ||
Inventories | (3,855) | (1,875) | ||
Other Assets, Current | 0 | 0 | ||
Total current assets | (3,855) | (17,620) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivable (payable) | 3,855 | 1,875 | ||
Investment in subsidiary | (144,691) | (145,089) | ||
Other assets, net | (3,173) | (3,535) | ||
TOTAL ASSETS | (147,864) | (164,369) | ||
Line of Credit, Current | 0 | 0 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | (15,745) | ||
Current liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Total current liabilities | 0 | (15,745) | ||
Long-term debt | 0 | 0 | ||
Liability for pensions and other postretirement employee benefits | 0 | 0 | ||
Other long-term obligations | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Deferred Tax Liabilities, Gross, Noncurrent | (3,173) | (3,535) | ||
Liabilities | (3,173) | (19,280) | ||
Accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Stockholders' equity excluding accumulated other comprehensive loss | (144,691) | (145,089) | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ (147,864) | $ (164,369) |
Supplemental Guarantor Financ56
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | $ 863 | $ 901 | $ 16,415 | $ 40,211 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 25,856 | 22,747 | 79,468 | 65,921 |
Equity-based compensation expense | 2,523 | 9,826 | ||
Deferred tax expense (benefit) | 14,602 | 12,329 | ||
Employee benefit plans | 2,999 | 500 | ||
Gain (Loss) on Disposition of Assets | 3,755 | 30 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 874 | 484 | ||
Changes in working capital, net | 43,846 | 4,045 | ||
Change in taxes receivable, net | (4,869) | 7,217 | ||
Other Operating Activities, Cash Flow Statement | (1,439) | (680) | ||
Net cash provided by operating activities | 152,176 | 138,883 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (136,650) | (105,514) | ||
Payments for (Proceeds from) Other Investing Activities | 753 | 250 | ||
Net cash used for investing activities | (135,897) | (105,264) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | (4,875) | (51,528) | ||
Investment (to) from Parent | 0 | 0 | ||
Proceeds from Lines of Credit | 185,000 | 944,844 | ||
Repayments of Lines of Credit | (210,000) | (931,832) | ||
Payment of tax withholdings on equity-based payment arrangements | (790) | |||
Proceeds from (Payments for) Other Financing Activities | (927) | (382) | ||
Net cash (used for) provided by financing activities | (30,802) | (38,898) | ||
Decrease in cash and cash equivalents | (14,523) | (5,279) | ||
Cash at beginning of period | 23,001 | 5,610 | ||
Cash at end of period | 8,478 | 331 | 8,478 | 331 |
Issuer | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 1,445 | 901 | 18,855 | 40,211 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 56,642 | 50,214 | ||
Equity-based compensation expense | 2,523 | 9,826 | ||
Deferred tax expense (benefit) | 19,531 | 11,641 | ||
Employee benefit plans | 2,999 | 500 | ||
Gain (Loss) on Disposition of Assets | 481 | 30 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 874 | 471 | ||
Changes in working capital, net | 32,501 | 1,961 | ||
Change in taxes receivable, net | 600 | 6,178 | ||
Other Operating Activities, Cash Flow Statement | (413) | (1,205) | ||
Net cash provided by operating activities | 128,595 | 118,827 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (132,725) | (99,912) | ||
Payments for (Proceeds from) Other Investing Activities | 283 | 250 | ||
Net cash used for investing activities | (132,442) | (99,662) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | (4,875) | (51,528) | ||
Investment (to) from Parent | 23,541 | 14,454 | ||
Proceeds from Lines of Credit | 185,000 | 944,844 | ||
Repayments of Lines of Credit | (210,000) | (931,832) | ||
Proceeds from (Payments for) Other Financing Activities | (927) | (382) | ||
Net cash (used for) provided by financing activities | (7,261) | (24,444) | ||
Decrease in cash and cash equivalents | (11,108) | (5,279) | ||
Cash at beginning of period | 19,586 | 5,610 | ||
Cash at end of period | 8,478 | 331 | 8,478 | 331 |
Guarantor Subsidiaries | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | (641) | 2,304 | (398) | 4,607 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 22,826 | 15,707 | ||
Equity-based compensation expense | 0 | 0 | ||
Deferred tax expense (benefit) | (4,929) | 1,826 | ||
Employee benefit plans | 0 | 0 | ||
Gain (Loss) on Disposition of Assets | 3,274 | 0 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 0 | 13 | ||
Changes in working capital, net | 3,896 | 4,531 | ||
Change in taxes receivable, net | 0 | (1,408) | ||
Other Operating Activities, Cash Flow Statement | (1,026) | (613) | ||
Net cash provided by operating activities | 23,643 | 24,663 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | (3,925) | (5,602) | ||
Payments for (Proceeds from) Other Investing Activities | 470 | 0 | ||
Net cash used for investing activities | (3,455) | (5,602) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | 0 | 0 | ||
Investment (to) from Parent | (23,603) | (19,061) | ||
Proceeds from Lines of Credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | (23,603) | (19,061) | ||
Decrease in cash and cash equivalents | (3,415) | 0 | ||
Cash at beginning of period | 3,415 | 0 | ||
Cash at end of period | 0 | 0 | 0 | 0 |
Eliminations | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net earnings (loss) | 59 | (2,304) | (2,042) | (4,607) |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 0 | 0 | ||
Equity-based compensation expense | 0 | 0 | ||
Deferred tax expense (benefit) | 0 | (1,138) | ||
Employee benefit plans | 0 | 0 | ||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 0 | 0 | ||
Changes in working capital, net | 7,449 | (2,447) | ||
Change in taxes receivable, net | (5,469) | 2,447 | ||
Other Operating Activities, Cash Flow Statement | 0 | 1,138 | ||
Net cash provided by operating activities | (62) | (4,607) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to plant and equipment | 0 | 0 | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||
Net cash used for investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for Repurchase of Common Stock | 0 | 0 | ||
Investment (to) from Parent | 62 | 4,607 | ||
Proceeds from Lines of Credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||
Net cash (used for) provided by financing activities | 62 | 4,607 | ||
Decrease in cash and cash equivalents | 0 | 0 | ||
Cash at beginning of period | 0 | 0 | ||
Cash at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Tax Credits (Details)
Tax Credits (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ 2.4 |