Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CLEARWATER PAPER CORP | |
Entity Central Index Key | 0001441236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 16,515,156 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||||
Revenues | $ 451,993,000 | $ 432,099,000 | $ 880,772,000 | $ 869,051,000 | ||
Costs and expenses: | ||||||
Cost of sales | (409,825,000) | (387,154,000) | (794,071,000) | (779,587,000) | ||
Selling, general and administrative expenses | (26,827,000) | (26,564,000) | (56,998,000) | (59,544,000) | ||
Total operating costs and expenses | (436,652,000) | (413,718,000) | (851,069,000) | (839,131,000) | ||
Income (loss) from operations | 15,341,000 | 18,381,000 | 29,703,000 | 29,920,000 | ||
Interest expense, net | (10,914,000) | (7,723,000) | (19,400,000) | (15,743,000) | ||
Non-operating pension and other postretirment benefit (costs) income | (1,531,000) | (1,187,000) | (2,845,000) | (2,466,000) | ||
Earnings (loss) before income taxes | 2,896,000 | 9,471,000 | 7,458,000 | 11,711,000 | ||
Income tax provision | (3,320,000) | (2,510,000) | (4,045,000) | (2,150,000) | ||
Net earnings (loss) | $ (424,000) | $ 3,837,000 | $ 6,961,000 | $ 2,600,000 | $ 3,413,000 | $ 9,561,000 |
Net earnings per common share: | ||||||
Basic (in dollars per share) | $ (0.03) | $ 0.42 | $ 0.21 | $ 0.58 | ||
Diluted (in dollars per share) | $ (0.03) | $ 0.42 | $ 0.21 | $ 0.58 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net earnings | $ (424) | $ 3,837 | $ 6,961 | $ 2,600 | $ 3,413 | $ 9,561 |
Defined benefit pension and other postretirement employee benefits: | ||||||
Amortization of actuarial loss included in net periodic cost, net of tax of $475, $588, $917 and $1,205 | 1,334 | 1,644 | 2,573 | 3,372 | ||
Amortization of prior service credit included in net periodic cost, net of tax of $-, $(111), $- and $(221) | 0 | 308 | 0 | 617 | ||
Other comprehensive income (loss), net of tax | 1,334 | 1,336 | 2,573 | 2,755 | ||
Comprehensive income | $ 910 | $ 8,297 | $ 5,986 | $ 12,316 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of actuarial loss included in net periodic cost, tax expense | $ 475 | $ 588 | $ 917 | $ 1,205 |
Amortization of prior service credit included in net periodic cost, tax benefit | $ 0 | $ (111) | $ 0 | $ (221) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 41,800 | $ 22,484 |
Restricted cash | 1,440 | 0 |
Receivables, net | 169,972 | 145,519 |
Taxes receivable | 7,943 | 6,301 |
Inventories | 287,863 | 266,244 |
Other Assets, Current | 10,118 | 3,399 |
Total current assets | 519,136 | 443,947 |
Property, plant and equipment, net | 1,293,694 | 1,269,271 |
Operating Lease, Right-of-Use Asset | 75,338 | 0 |
Goodwill | 35,074 | 35,074 |
Intangible assets, net | 20,510 | 24,080 |
Other assets, net | 12,095 | 15,746 |
TOTAL ASSETS | 1,955,847 | 1,788,118 |
Debt, Current | 235,000 | 120,833 |
Current liabilities: | ||
Line of Credit, Current | 235,000 | |
Accounts payable and accrued liabilities | 301,294 | 321,032 |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 |
Total current liabilities | 543,724 | 449,295 |
Long-term debt | 671,676 | 671,292 |
Operating Lease, Liability, Noncurrent | 70,194 | 0 |
Liability for pensions and other postretirement employee benefits | 74,903 | 78,191 |
Other long-term obligations | 33,498 | 38,977 |
Accrued taxes | 2,257 | 2,785 |
Liabilities | 1,521,482 | 1,361,722 |
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 -16,515,156 and 16,482,345 shares issued | 2 | 2 |
Additional paid-in capital | 8,386 | 6,403 |
Retained earnings | 490,752 | 487,339 |
Accumulated other comprehensive loss, net of tax | (64,775) | (67,348) |
Total stockholders' equity | 434,365 | 426,396 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,955,847 | $ 1,788,118 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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) | 16,515,156 | 16,482,345 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Repayments of Short-term Debt | $ 322,760 | $ 119,063 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 44,274 | 54,290 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | 3,413 | 9,561 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 54,353 | 50,344 |
Deferred tax expense | 5,180 | 2,649 |
Amortization of Debt Issuance Costs and Discounts | 938 | 716 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (792) | 410 |
Changes in working capital, net | (50,146) | 36,317 |
Change in taxes receivable, net | (1,642) | 11,498 |
Other Operating Activities, Cash Flow Statement | 1,876 | (1,296) |
Net cash provided by operating activities | 14,722 | 110,888 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to plant and equipment | (108,419) | (78,600) |
Payments for (Proceeds from) Other Investing Activities | 4 | 807 |
Net cash used for investing activities | (108,415) | (77,793) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment of tax withholdings on equity-based payment arrangements | (400) | |
Proceeds from (Payments for) Other Financing Activities | (1,147) | (543) |
Net cash (used for) provided by financing activities | 113,020 | 4,457 |
Proceeds from Short-term Debt | 436,927 | 124,063 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 19,327 | 37,552 |
Cash at beginning of period | 22,484 | |
Cash at end of period | 41,800 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 16,427 | 14,294 |
Cash paid for income taxes | 1,918 | 1,517 |
Cash received from income tax refunds | 233 | 13,281 |
Changes in accrued plan and equipment | (38,429) | 88,859 |
Non-cash additions to plant, property, and equipment | 493 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES: | ||
Share-based Payment Arrangement, Noncash Expense | 2,070 | 343 |
Increase (Decrease) in Accrued Taxes Payable | $ (528) | $ 346 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity Consolidated Statements of Stockholder's Equity - USD ($) shares in Thousands, $ in Thousands | Total | AOCI Attributable to Parent [Member] | Common Stock [Member] | Retained Earnings [Member] | Additional Paid-in Capital [Member] |
Shares, Outstanding | 16,448 | ||||
Stockholders' Equity Attributable to Parent | $ 575,434 | $ (43,983) | $ 2 | $ 618,254 | $ 1,161 |
Net Income (Loss) Attributable to Parent | 2,600 | 2,600 | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 13 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,267 | 1,267 | |||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act | (12,852) | 12,852 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,419) | 1,419 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 507 | ||||
Net Income (Loss) Attributable to Parent | 9,561 | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (3,372) | ||||
Shares, Outstanding | 16,461 | ||||
Stockholders' Equity Attributable to Parent | 580,720 | (55,416) | $ 2 | 633,706 | 2,428 |
Net Income (Loss) Attributable to Parent | 6,961 | 6,961 | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,552 | 1,552 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (1,644) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,336) | 1,336 | |||
Shares, Outstanding | 16,461 | ||||
Stockholders' Equity Attributable to Parent | 590,569 | (54,080) | $ 2 | 640,667 | 3,980 |
Shares, Outstanding | 16,482 | ||||
Stockholders' Equity Attributable to Parent | 426,396 | (67,348) | $ 2 | 487,339 | 6,403 |
Net Income (Loss) Attributable to Parent | 3,837 | 3,837 | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 33 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 772 | 772 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,239) | 1,239 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 442 | ||||
Net Income (Loss) Attributable to Parent | 3,413 | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (2,573) | ||||
Shares, Outstanding | 16,515 | ||||
Stockholders' Equity Attributable to Parent | 432,244 | (66,109) | $ 2 | 491,176 | 7,175 |
Net Income (Loss) Attributable to Parent | (424) | (424) | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,211 | 1,211 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (1,334) | (1,334) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1,334) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 475 | ||||
Shares, Outstanding | 16,515 | ||||
Stockholders' Equity Attributable to Parent | $ 434,365 | $ (64,775) | $ 2 | $ 490,752 | $ 8,386 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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. FINANCIAL STATEMENT PREPARATION AND PRESENTATION The accompanying Consolidated Balance Sheets at June 30, 2019 and December 31, 2018 , and the related Consolidated Statements of Operations, Comprehensive Income and Stockholders' Equity for the three and six months ended June 30, 2019 and 2018 , and Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018, 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 presentation 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, 2018 , as filed with the Securities and Exchange Commission, or SEC, on March 18, 2019. 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 income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions. CASH, CASH EQUIVALENTS AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows. (In thousands) June 30, 2019 June 30, 2018 Cash and cash equivalents $ 41,800 $ 53,278 Restricted cash 1,440 — Restricted cash included in other assets, net 1,034 1,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 44,274 $ 54,290 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 $1,741.3 million and $1,691.7 million at June 30, 2019 and December 31, 2018 , respectively. For the six months ended June 30, 2019 , we capitalized $4.9 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.5 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the six months ended June 30, 2018, we capitalized $2.6 million of interest expense associated with the Shelby paper machine and $0.6 million of interest expense associated with the continuous pulp digester project. We review 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. LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize . Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. 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 June 30, 2019 and December 31, 2018 , we had allowances for doubtful accounts of $1.6 million and $1.5 million , respectively. Refer to Note 14, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the six months ended June 30, 2019, $87.3 million of receivables were sold under the Account Purchase Agreement. As of June 30, 2019, $9.3 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line in the operating activities section of our Consolidated Statements of Cash Flows. For the six months ended June 30, 2019, we recorded factoring expense on sales of receivables of $0.3 million , which is included in the "Interest expense, net" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. As of June 30, 2019 and December 31, 2018, we had collected $16.9 million and $4.9 million of cash, respectively, from customers that had not yet been remitted to the third-party financial institution. Subsequent to June 30, 2019, during the third quarter of 2019, we entered into an arrangement with an unrelated third party financial intermediary to sell receivables associated with a large customer to the financial intermediary in order to receive advance cash for payment of these receivables at a discounted rate. SUPPLY-CHAIN FINANCING We have entered into supply-chain financing programs with financial intermediaries, which provide certain of our vendors the option to be paid by the financial intermediaries on our trade payables earlier than the due date on the applicable invoice. When a vendor receives an early payment on a trade payable it invoiced us for from a financial intermediary, we pay that financial intermediary the face amount of the invoice on the regularly scheduled due date. If we reimburse these vendors for certain fees they may incur in connection with receiving an early payment on an invoice, the amount of such invoice that would have otherwise been included in our trade payables is included in our short term debt. As of December 31, 2018, $20.8 million was included in “Short-term debt” on our Consolidated Balance Sheets related to invoices for which we had reimbursed our vendors’ fees. There were no such amounts as of June 30, 2019. DERIVATIVES We had no activity during the three and six months ended June 30, 2019 and 2018 that required hedge or derivative accounting treatment. 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 June 30, 2019 , these contracts covered approximately 35% of our expected average monthly natural gas requirements for the remainder of 2019 . 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 | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and New Accounting Standards | Recently Adopted and New Accounting Standards Recently Adopted On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842. The new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The adoption of Topic 842 had a material impact on our Consolidated Balance Sheet due to the recognition of right-of-use assets of $82.5 million and lease liabilities of $87.7 million , respectively, as of January 1, 2019. The difference between these lease assets and lease liabilities represents existing deferred rent balances that were reclassified on the balance sheet. The adoption of Topic 842 did not have a material impact on our Consolidated Statement of Operations or our Consolidated Statement of Cash Flows. We will continue to report periods prior to January 1, 2019 under prior guidance as outlined in Accounting Standards Codification Topic 840, " Leases. " Refer to Note 4, "Leases," for further discussion. New Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) . This ASU requires capitalization of certain implementation costs incurred in a cloud computing arrangement that is a service contract. This ASU is effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. We do not believe this ASU will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for defined benefit and other postretirement plans. This ASU eliminates certain disclosures associated with accumulated other comprehensive income, plan assets, related parties and the effects of interest rate basis point changes on assumed health care costs, with other disclosures being added to address significant gains and losses related to changes in benefit obligations. This ASU also clarifies disclosure requirements for projected benefit and accumulated benefit obligations. The amendments in this ASU are effective for fiscal years ending after December 15, 2020, with early adoption permitted and adoption on a retrospective basis for all periods presented required. We are currently assessing the timing of our adoption of this ASU and do not believe it will have a material impact on our consolidated financial statements beyond updating footnote disclosures. We reviewed all other new accounting pronouncements issued in the period and concluded that they are not applicable to our business. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at the balance sheet dates consist of: (In thousands) June 30, 2019 December 31, 2018 Pulp, paperboard and tissue products $ 175,566 $ 159,499 Materials and supplies 91,801 86,892 Logs, pulpwood, chips and sawdust 20,496 19,853 $ 287,863 $ 266,244 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. Leases Our adoption of ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as a ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification and initial direct costs, and we did not elect the use of hindsight. We combine ROU asset amortization and the change in the lease liability in the same line item on the Consolidated Statements of Cash Flows. We have operating leases for manufacturing, office, warehouse and distribution space, paperboard sheeting and chipping facilities, equipment and vehicles. We also have finance leases related to our North Carolina converting and manufacturing facilities, as well as for certain office and other equipment. We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. Our leases have remaining lease terms from less than one year to twelve years, and some of our leases include one or more options to renew. Lease ROU assets and liabilities are recognized at the commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of June 30, 2019 , we did not have any short-term leases. Certain of our leases contain lease and non-lease components that are treated as a single lease component. Our variable lease costs consist primarily of taxes, insurance and common area maintenance. For the six months ended June 30, 2019 , sublease income was immaterial to the financial statements. The tables below present financial information associated with our leases. This information is only presented as of, and for the three and six months ended, June 30, 2019 . As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. LEASE EXPENSE Three Months Ended Six Months Ended (In thousands) June 30, 2019 Operating lease costs $ 3,529 $ 7,009 Finance lease costs: Amortization of right-of-use assets 463 878 Interest on lease liabilities 467 939 Total finance lease costs 930 1,817 Variable lease costs 337 556 Total lease costs $ 4,796 $ 9,382 SUPPLEMENTAL CASH FLOW INFORMATION Six Months Ended (In thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,074 Operating cash flows from finance leases 939 Financing cash flows from finance leases 592 Non-cash amounts for lease liabilities arising from obtaining right-of-use assets: Operating leases $ 937 Finance leases 493 SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification June 30, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 75,338 Finance lease assets Property, plant and equipment, net 16,740 Total lease ROU assets $ 92,078 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,396 Current finance lease liabilities Accounts payable and accrued liabilities 1,381 Total current lease liabilities 13,777 Non-current operating lease liabilities Operating lease liabilities 70,194 Non-current finance lease liabilities Other long-term obligations 21,376 Total non-current lease liabilities 91,570 Total lease liabilities $ 105,347 LEASE TERM AND DISCOUNT RATE June 30, 2019 Weighted average remaining lease term (years) Operating leases 7.2 Finance leases 11.0 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets at the balance sheet dates comprise the following: June 30, 2019 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (38,487 ) $ 17,966 Trade names and trademarks 7.4 6,786 (4,543 ) 2,243 Other intangibles 6.0 572 (271 ) 301 $ 63,811 $ (43,301 ) $ 20,510 December 31, 2018 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (35,469 ) $ 20,984 Trade names and trademarks 7.4 6,786 (4,029 ) 2,757 Other intangibles 6.0 572 (233 ) 339 $ 63,811 $ (39,731 ) $ 24,080 For the three months ended June 30, 2019 and 2018 , intangible assets amortization expense was $1.8 million and $2.0 million , respectively. For the six months ended June 30, 2019 and 2018 , intangible assets amortization expense was $3.6 million and $3.9 million , respectively. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 second quarter of 2019 is approximately 59% , compared with approximately 26% for the comparable interim period in 2018. The annual effective tax rate is subject to variation due to several factors, including variability in pre-tax income (or loss), forecasted pre-tax income (or loss), changes in business practices, changes in tax credits and tax law developments. Tax effected items in the second quarter of 2019 have a greater impact on a percentage basis of our $2.9 million of earnings before taxes compared to $9.5 million in pre-tax earnings in the second quarter of 2018. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 31, 2018 Trade accounts payable $ 183,663 $ 228,059 Accrued wages, salaries and employee benefits 37,275 41,426 Accrued account purchase agreement liabilities 16,889 4,885 Accrued interest 15,824 14,672 Lease liabilities 13,777 — Accrued taxes other than income taxes payable 10,723 6,243 Accrued discounts and allowances 7,458 8,143 Accrued utilities 6,923 6,934 Other 8,762 10,670 $ 301,294 $ 321,032 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt CREDIT ARRANGEMENTS As of June 30, 2019 , there was an aggregate of $335.0 million in borrowings outstanding under our revolving credit facilities and $7.8 million of the credit facilities was being used to support outstanding standby letters of credit. As of December 31, 2018 , there was an aggregate of $200.0 million in borrowings outstanding under the credit facilities. Our borrowings outstanding under the revolving credit facilities as of June 30, 2019 consisted of $235.0 million of short-term base and LIBOR rate loans classified as current liabilities that are included in "Short-term debt" in our Consolidated Balance Sheet and $100.0 million of fixed rate, three-year borrowings classified as a non-current liability that are included in "Long-term debt" in our Consolidated Balance Sheet. As of June 30, 2019 , we would have been permitted to draw an additional $57.2 million under the credit facilities. Following the end of the quarter, on July 26, 2019, we entered into (a) a Term Loan Credit Agreement with the several lenders from time to time parties thereto and JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent (the “Term Loan Credit Agreement”), and (b) an asset based lending, or ABL, Credit Agreement, with the several lenders from time to time parties thereto and JPMorgan, as administrative agent (the “ABL Credit Agreement” and, together with the Term Loan Credit Agreement, the “Credit Agreements”). The Term Loan Credit Agreement includes a $300 million term loan commitment, which was fully advanced at closing. The ABL Credit Agreement includes a $250 million revolving loan commitment, subject to borrowing base limitations based on a percentage of applicable eligible receivables and eligible inventory, of which $58.0 million was advanced at closing. The proceeds from the closing date borrowings under the Credit Agreements were used by us to refinance our existing credit facilities, to pay fees and expenses in connection with the Credit Agreements, and for working capital purposes. The term loan Credit Agreement matures on July 26, 2026, and the ABL Credit Agreement terminates on July 26, 2024. Subject to certain customary exceptions, the obligations under each of the Credit Agreements are, or will be, guaranteed by each of our existing and future, direct or indirect, domestic subsidiaries. Our obligations under each Credit Agreement are secured by liens on substantially all of our assets and the assets of each of our domestic subsidiaries that are guarantors under the Credit Agreements. We may, at our option, prepay any borrowings under the Term Loan Credit Agreement, in whole or in part, at any time and from time to time without premium or penalty (except in certain circumstances). Pursuant to the Term Loan Credit Agreement, we are required to repay the aggregate outstanding principal amount of the borrowings under the Term Loan Credit Agreement in quarterly installments on the last day of each March, June, September and December, commencing March 31, 2020, and ending with the last such day to occur prior to the maturity date, in an aggregate amount for each such date equal to the aggregate principal amount of the initial loan amount (as such amount may be adjusted pursuant to the prepayment provisions of the Term Loan Credit Agreement) multiplied by 0.25% . In addition, we must make mandatory prepayments of principal under the Term Loan Credit Agreement upon the occurrence of certain specified events, including certain asset sales. Any remaining outstanding principal balance under the Term Loan Credit Agreement is repayable on the maturity date. Amounts repaid or prepaid by us with respect to the loans under the Term Loan Credit Agreement cannot be reborrowed. We may add one or more incremental term loan facilities to the Term Loan Credit Agreement, subject to obtaining commitments from any participating lenders and certain other conditions in an amount not to exceed (1) $100 million , plus (2) the amount of all voluntary prepayments of the Term Loan Credit Agreement (other than prepayments funded with long-term indebtedness), plus (3) an additional amount, so long as after giving effect to the incurrence of such additional amount, our pro forma first lien secured leverage ratio would not exceed 2.00 to 1.00 . Under the Term Loan Credit Agreement, loans generally may bear interest based on LIBOR or an annual base rate, as applicable, plus, in each case, an applicable margin, when our leverage ratio is (i) less than or equal to 4.25 to 1.00 , of 3.00% per annum in the case of LIBOR loans and of 2.00% per annum in the case of annual base rate loans and (ii) greater than 4.25 to 1.00 , of 3.25% per annum in the case of LIBOR loans and of 2.25% per annum in the case of annual base rate loans. Up to $15 million of the ABL Credit Agreement is available for the issuance of letters of credit. We may also increase commitments under the ABL Credit Agreement in an aggregate principal amount of up to $100 million by obtaining additional commitments from lenders, subject to obtaining commitments from any participating lenders and certain other conditions. Under the ABL Credit Agreement, loans generally may bear interest based on LIBOR or an annual base rate, as applicable, plus, in each case, an applicable margin that is based on availability (as determined under the ABL Credit Agreement) that may vary from 1.25% per annum to 1.75% per annum in the case of LIBOR loans and 0.25% per annum to 0.75% per annum in the case of annual base rate loans. In addition, a commitment fee based on unused availability is also payable which may vary from 0.25% per annum to 0.375% per annum. We may, at our option, prepay any borrowings under the ABL Credit Agreement, in whole or in part, at any time and from time to time without premium or penalty (except in certain circumstances). Borrowings under the ABL Credit Agreement are also subject to mandatory prepayment in certain circumstances, including in the event that borrowings exceed applicable borrowing base limits. The Credit Agreements contain certain customary representations, warranties, and affirmative and negative covenants of us and our subsidiaries that restrict us and our subsidiaries’ ability to take certain actions, including, incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock and certain types of indebtedness, making certain investments, entering into certain transactions with affiliates or changing the nature of our business. The ABL Credit Agreement also contains a financial covenant, which requires us to maintain a consolidated fixed charge coverage ratio of not less than 1.10 to 1.00 , provided that the financial covenant under the ABL Credit Agreement is only applicable when availability falls below a certain threshold. The obligations under the Credit Agreements may be accelerated or the commitments terminated upon the occurrence of events of default under the Credit Agreements, which include payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, cross defaults to other material indebtedness, defaults arising in connection with changes in control, and other customary events of default. |
Other Long-Term Obligations
Other Long-Term Obligations | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 31, 2018 Finance lease obligations, net of current portion $ 21,376 $ 21,589 Deferred proceeds 4,189 4,511 Deferred compensation 4,005 2,585 Other 3,928 10,292 $ 33,498 $ 38,977 |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [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 other postretirement employee benefit, or OPEB, plans for the periods presented: Three Months Ended June 30, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 669 $ 461 $ 20 $ 20 Interest cost 3,102 3,010 752 611 Expected return on plan assets (4,132 ) (4,247 ) — — Amortization of prior service cost (credit) — — — (419 ) Amortization of actuarial loss (gain) 1,776 2,458 33 (226 ) Net periodic cost (benefit) $ 1,415 $ 1,682 $ 805 $ (14 ) Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 1,219 $ 895 $ 45 $ 68 Interest cost 6,223 6,010 1,399 1,218 Expected return on plan assets (8,267 ) (8,501 ) — — Amortization of prior service cost (credit) — — — (838 ) Amortization of actuarial loss (gain) 3,685 5,028 (195 ) (451 ) Net periodic cost (benefit) $ 2,860 $ 3,432 $ 1,249 $ (3 ) During the six months ended June 30, 2019 and 2018 , we made no contributions to our qualified pension plans. We do not expect, nor are we required, to make contributions in 2019 . During the six months ended June 30, 2019 , we made contributions of $0.2 million to our company-sponsored non-qualified pension plan. We estimate contributions will total $0.4 million in 2019 . We do not anticipate funding our OPEB plans in 2019 except to pay benefit costs as incurred during the year by plan participants. During each of the three months ended June 30, 2019 and 2018 , pension and OPEB changes in accumulated other comprehensive loss, net of tax, in our Consolidated Balance Sheets totaled $1.3 million . During the six months ended June 30, 2019 and 2018 , pension and OPEB changes in accumulated other comprehensive loss, net of tax, in our Consolidated Balance Sheets totaled $2.6 million and $2.8 million , respectively. Refer to the Consolidated Statements of Stockholders' Equity for additional information. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Share Basic (loss) 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. This method requires the effect of potentially dilutive common stock equivalents be excluded from the calculation of diluted earnings per share for the periods in which net losses are reported because the effect is anti-dilutive. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic weighted-average common shares outstanding 1 16,538,501 16,486,935 16,527,448 16,491,366 Incremental shares due to: Restricted stock units — 20,970 16,570 29,530 Performance shares — 47,266 7,569 52,051 Stock options — — — 90 Diluted weighted-average common shares outstanding 16,538,501 16,555,171 16,551,587 16,573,037 Basic net (loss) earnings per common share $ (0.03 ) $ 0.42 $ 0.21 $ 0.58 Diluted net (loss) earnings per common share (0.03 ) 0.42 0.21 0.58 Anti-dilutive shares excluded from calculation 1,104,277 1,029,983 1,018,641 912,863 1 Basic weighted-average common shares outstanding includes restricted stock unit awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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 June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Restricted stock units $ 679 $ 582 $ 1,181 $ 1,004 Performance shares 184 377 518 910 Stock options 348 593 690 1,128 Total employee equity-based compensation expense $ 1,211 $ 1,552 $ 2,389 $ 3,042 As provided in the Clearwater Paper Corporation 2017 Stock Incentive Plan, the performance measure used to determine the number of performance shares ultimately issuable for performance shares granted in 2019 is a free cash flow performance measure for 70% of the performance share awards. For the remaining 30% of the grants, a return on invested capital measure is used. The combined performance of these measures is then subject to an adjustment (increase or decrease) of up to 25% based on our total shareholder return, or TSR, compared to the TSR performance of a selected index. The number of performance shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0% - 200% . During the first six months of 2019 , 47,264 RSUs were settled and distributed. After adjusting for minimum tax withholdings, a net 32,811 shares were issued. In connection with the issued RSUs, the minimum tax withholding payments made during the six months ended June 30, 2019 totaled $0.4 million . During the six months ended June 30, 2019 , we had 71,503 stock option awards expired with a weighted-average exercise price of $51.95 . At June 30, 2019 , we had 519,158 stock option awards that were exercisable with a weighted-average exercise price of $51.15 . The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the six months ended June 30, 2019 and the grant-date fair value of the awards: Six Months Ended June 30, 2019 Number of Weighted-Average Fair Restricted stock units 133,533 $ 26.79 Performance shares 151,664 26.60 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 $0.1 million and benefit of $2.0 million for the three months ended June 30, 2019 and 2018 , respectively. For the six months ended June 30, 2019 and 2018 , we recorded director equity-based compensation benefit of $0.3 million and $2.7 million , respectively. As of June 30, 2019 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" on the accompanying Consolidated Balance Sheet were $1.8 million . At December 31, 2018 , the liability amounts associated with director equity-based compensation included in "Other long-term obligations" and "Accounts payable and accrued liabilities" totaled $0.8 million and $1.3 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, 2019 2018 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash, cash equivalents and restricted cash (Level 1) $ 44,274 $ 44,274 $ 24,947 $ 24,947 Short-term borrowings under revolving credit facilities (Level 2) 235,000 234,995 100,000 99,909 Other short-term debt (Level 1) — — 20,833 20,833 Long-term debt (Level 2) 675,000 635,244 675,000 612,546 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 considering the assets' underlying maturities, 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. Cash, cash equivalents and restricted cash, borrowings under the revolving credit facilities, other short-term debt and long-term debt are the only items measured at fair value on a recurring basis. We do not have any financial assets measured at fair value on a nonrecurring basis. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, some facial tissue product categories, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Segment net sales: Consumer Products $ 224,340 $ 221,585 $ 447,676 $ 460,427 Pulp and Paperboard 227,653 210,514 433,096 408,624 Total segment net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Earnings (loss) before income taxes: Consumer Products 1 $ (5,133 ) $ (3,604 ) $ (3,862 ) $ (1,975 ) Pulp and Paperboard 1 33,587 34,192 62,975 60,346 28,454 30,588 59,113 58,371 Corporate 1 (13,113 ) (12,207 ) (29,410 ) (28,451 ) Income from operations 15,341 18,381 29,703 29,920 Interest expense, net (10,914 ) (7,723 ) (19,400 ) (15,743 ) Non-operating pension and other postretirement benefit costs (1,531 ) (1,187 ) (2,845 ) (2,466 ) Earnings before income taxes $ 2,896 $ 9,471 $ 7,458 $ 11,711 Depreciation and amortization: Consumer Products $ 17,431 $ 14,220 $ 32,202 $ 28,517 Pulp and Paperboard 9,491 9,361 18,976 18,790 Corporate 1,595 1,596 3,175 3,037 Total depreciation and amortization $ 28,517 $ 25,177 $ 54,353 $ 50,344 1 Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended June 30, 2018 include $0.2 million, $0.1 million and $0.8 million, respectively, of expenses associated with our selling, general, and administrative cost control measures. Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the six months ended June 30, 2018 include $1.7 million , $0.4 million and $4.1 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the six months ended June 30, 2019, no customer accounted for more than 10% of our total company net sales. For the six months ended June 30, 2018, one customer, the Kroger Company, accounted for approximately 13.4% of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Primary geographical markets: United States $ 431,432 $ 412,231 $ 846,201 $ 833,051 Other countries 20,561 19,868 34,571 36,000 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Major products: Paperboard $ 226,170 $ 210,514 $ 429,195 $ 408,624 Retail tissue 210,514 197,767 415,099 417,609 Non-retail tissue 12,263 23,765 30,732 40,724 Other 3,046 53 5,746 2,094 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information 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 June 30, 2019 (In thousands) Issuer Guarantor Eliminations Total Net sales $ 421,457 $ 67,685 $ (37,149 ) $ 451,993 Costs and expenses: Cost of sales (385,788 ) (61,325 ) 37,288 (409,825 ) Selling, general and administrative expenses (21,078 ) (5,749 ) — (26,827 ) Total operating costs and expenses (406,866 ) (67,074 ) 37,288 (436,652 ) Income from operations 14,591 611 139 15,341 Interest expense, net (10,877 ) (37 ) — (10,914 ) Non-operating pension and other postretirement benefit costs (1,531 ) — — (1,531 ) Earnings before income taxes 2,183 574 139 2,896 Income tax (provision) benefit (1,969 ) 428 (1,779 ) (3,320 ) Equity in income of subsidiary 1,002 — (1,002 ) — Net earnings (loss) $ 1,216 $ 1,002 $ (2,642 ) $ (424 ) Other comprehensive income, net of tax 1,334 — — 1,334 Comprehensive income $ 2,550 $ 1,002 $ (2,642 ) $ 910 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2019 (In thousands) Issuer Guarantor Eliminations Total Net sales $ 833,852 $ 135,225 $ (88,305 ) $ 880,772 Costs and expenses: Cost of sales (758,040 ) (121,501 ) 85,470 (794,071 ) Selling, general and administrative expenses (47,323 ) (9,675 ) — (56,998 ) Total operating costs and expenses (805,363 ) (131,176 ) 85,470 (851,069 ) Income from operations 28,489 4,049 (2,835 ) 29,703 Interest expense, net (19,262 ) (138 ) — (19,400 ) Non-operating pension and other postretirement benefit costs (2,845 ) — — (2,845 ) Earnings before income taxes 6,382 3,911 (2,835 ) 7,458 Income tax (provision) benefit (3,775 ) (424 ) 154 (4,045 ) Equity in income of subsidiary 3,487 — (3,487 ) — Net earnings $ 6,094 $ 3,487 $ (6,168 ) $ 3,413 Other comprehensive income, net of tax 2,573 — — 2,573 Comprehensive income $ 8,667 $ 3,487 $ (6,168 ) $ 5,986 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 433,826 $ 54,313 $ (56,040 ) $ 432,099 Costs and expenses: Cost of sales (394,260 ) (47,918 ) 55,024 (387,154 ) Selling, general and administrative expenses (21,226 ) (5,338 ) — (26,564 ) Total operating costs and expenses (415,486 ) (53,256 ) 55,024 (413,718 ) Income from operations 18,340 1,057 (1,016 ) 18,381 Interest expense, net (7,627 ) (96 ) — (7,723 ) Non-operating pension and other postretirement benefit costs (1,187 ) — — (1,187 ) Earnings before income taxes 9,526 961 (1,016 ) 9,471 Income tax provision (2,574 ) (186 ) 250 (2,510 ) Equity in income of subsidiary 775 — (775 ) — Net earnings $ 7,727 $ 775 $ (1,541 ) $ 6,961 Other comprehensive income, net of tax 1,336 — — 1,336 Comprehensive income $ 9,063 $ 775 $ (1,541 ) $ 8,297 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 889,003 $ 100,526 $ (120,478 ) $ 869,051 Costs and expenses: Cost of sales (807,217 ) (88,278 ) 115,908 (779,587 ) Selling, general and administrative expenses (48,858 ) (10,686 ) — (59,544 ) Total operating costs and expenses (856,075 ) (98,964 ) 115,908 (839,131 ) Income from operations 32,928 1,562 (4,570 ) 29,920 Interest expense, net (15,556 ) (187 ) — (15,743 ) Non-operating pension and other postretirement benefit costs (2,466 ) — — (2,466 ) Earnings before income taxes 14,906 1,375 (4,570 ) 11,711 Income tax provision (2,956 ) (199 ) 1,005 (2,150 ) Equity in income of subsidiary 1,176 — (1,176 ) — Net earnings $ 13,126 $ 1,176 $ (4,741 ) $ 9,561 Other comprehensive income, net of tax 2,755 — — 2,755 Comprehensive income $ 15,881 $ 1,176 $ (4,741 ) $ 12,316 Clearwater Paper Corporation Consolidating Balance Sheet At June 30, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 41,800 $ — $ — $ 41,800 Restricted cash 1,440 — — 1,440 Receivables, net 151,072 18,900 — 169,972 Taxes receivable 7,995 295 (347 ) 7,943 Inventories 248,236 42,462 (2,835 ) 287,863 Other current assets 9,832 286 — 10,118 Total current assets 460,375 61,943 (3,182 ) 519,136 Property, plant and equipment, net 1,220,503 73,191 — 1,293,694 Operating lease right-of-use assets 69,656 5,682 — 75,338 Goodwill 35,074 — — 35,074 Intangible assets, net 522 19,988 — 20,510 Intercompany (payable) receivable (65,731 ) 62,896 2,835 — Investment in subsidiary 178,788 — (178,788 ) — Other assets, net 11,365 2,818 (2,088 ) 12,095 TOTAL ASSETS $ 1,910,552 $ 226,518 $ (181,223 ) $ 1,955,847 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 235,000 $ — $ — $ 235,000 Accounts payable and accrued liabilities 278,415 23,226 (347 ) 301,294 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 520,845 23,226 (347 ) 543,724 Long-term debt 671,676 — — 671,676 Operating lease liabilities 65,966 4,228 — 70,194 Liability for pensions and other postretirement employee benefits 74,903 — — 74,903 Other long-term obligations 33,498 — — 33,498 Accrued taxes 1,378 879 — 2,257 Deferred tax liabilities 107,921 19,397 (2,088 ) 125,230 TOTAL LIABILITIES 1,476,187 47,730 (2,435 ) 1,521,482 Stockholders’ equity excluding 499,140 178,788 (178,788 ) 499,140 Accumulated other comprehensive loss, net of tax (64,775 ) — — (64,775 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,910,552 $ 226,518 $ (181,223 ) $ 1,955,847 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 22,484 $ — $ — $ 22,484 Receivables, net 127,952 17,567 — 145,519 Taxes receivable 16,634 41 (10,374 ) 6,301 Inventories 222,960 48,361 (5,077 ) 266,244 Other current assets 3,346 53 — 3,399 Total current assets 393,376 66,022 (15,451 ) 443,947 Property, plant and equipment, net 1,192,716 76,555 — 1,269,271 Goodwill 35,074 — — 35,074 Intangible assets, net 1,045 23,035 — 24,080 Intercompany (payable) receivable (62,846 ) 57,769 5,077 — Investment in subsidiary 175,301 — (175,301 ) — Other assets, net 14,839 2,618 (1,711 ) 15,746 TOTAL ASSETS $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 120,833 $ — $ — $ 120,833 Accounts payable and accrued liabilities 299,715 31,691 (10,374 ) 321,032 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 427,978 31,691 (10,374 ) 449,295 Long-term debt 671,292 — — 671,292 Liability for pensions and other postretirement employee benefits 78,191 — — 78,191 Other long-term obligations 38,977 — — 38,977 Accrued taxes 1,918 867 — 2,785 Deferred tax liabilities 104,753 18,140 (1,711 ) 121,182 TOTAL LIABILITIES 1,323,109 50,698 (12,085 ) 1,361,722 Stockholders’ equity excluding 493,744 175,301 (175,301 ) 493,744 Accumulated other comprehensive loss, net of tax (67,348 ) — — (67,348 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 6,094 $ 3,487 $ (6,168 ) $ 3,413 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 46,457 7,896 — 54,353 Equity-based compensation expense 2,070 — — 2,070 Deferred taxes 3,880 1,300 — 5,180 Deferred issuance costs on debt 938 — — 938 Other non-cash activity, net (792 ) — (792 ) Changes in working capital, net (64,846 ) 4,811 9,889 (50,146 ) Changes in taxes receivable 8,639 (254 ) (10,027 ) (1,642 ) Changes in non-current accrued taxes (540 ) 12 — (528 ) Other, net 1,942 (66 ) — 1,876 Net cash flows from operating activities 3,842 17,186 (6,306 ) 14,722 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (107,155 ) (1,264 ) — (108,419 ) Other, net 4 — — 4 Net cash flows from investing activities (107,151 ) (1,264 ) — (108,415 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 436,927 — — 436,927 Repayments of borrowings on short-term debt (322,760 ) — — (322,760 ) Investment from (to) parent 9,616 (15,922 ) 6,306 — Other, net (1,147 ) — — (1,147 ) Net cash flows from financing activities 122,636 (15,922 ) 6,306 113,020 Increase in cash, cash equivalents and restricted cash 19,327 — — 19,327 Cash, cash equivalents and restricted cash at beginning of period 24,947 — — 24,947 Cash, cash equivalents and restricted cash at end of period $ 44,274 $ — $ — $ 44,274 Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 13,126 $ 1,176 $ (4,741 ) $ 9,561 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 39,905 10,439 — 50,344 Equity-based compensation expense 343 — — 343 Deferred taxes 2,979 (330 ) — 2,649 Deferred issuance costs on long term debt 716 — — 716 Other non-cash activity, net 414 (4 ) — 410 Changes in working capital, net 41,660 (6,051 ) 708 36,317 Changes in taxes receivable 11,502 (4 ) — 11,498 Changes in non-current accrued taxes, net 346 — — 346 Other, net (770 ) (526 ) — (1,296 ) Net cash flows from operating activities 110,221 4,700 (4,033 ) 110,888 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (77,257 ) (1,343 ) — (78,600 ) Other, net 793 14 — 807 Net cash flows from investing activities (76,464 ) (1,329 ) — (77,793 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 124,063 — — 124,063 Repayments of borrowings on short-term debt (119,063 ) — — (119,063 ) Investment (to) from parent (662 ) (3,371 ) 4,033 — Other, net (543 ) — — (543 ) Net cash flows from financing activities 3,795 (3,371 ) 4,033 4,457 Increase in cash, cash equivalents and restricted cash 37,552 — — 37,552 Cash, cash equivalents and restricted cash at beginning of period 16,738 — — 16,738 Cash, cash equivalents and restricted cash at end of period $ 54,290 $ — $ — $ 54,290 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation - (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Supply Commitment [Table Text Block] | SUPPLY-CHAIN FINANCING We have entered into supply-chain financing programs with financial intermediaries, which provide certain of our vendors the option to be paid by the financial intermediaries on our trade payables earlier than the due date on the applicable invoice. When a vendor receives an early payment on a trade payable it invoiced us for from a financial intermediary, we pay that financial intermediary the face amount of the invoice on the regularly scheduled due date. If we reimburse these vendors for certain fees they may incur in connection with receiving an early payment on an invoice, the amount of such invoice that would have otherwise been included in our trade payables is included in our short term debt. As of December 31, 2018, $20.8 million was included in “Short-term debt” on our Consolidated Balance Sheets related to invoices for which we had reimbursed our vendors’ fees. |
Leases of Lessee Disclosure [Text Block] | LEASES All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use, or ROU, assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We primarily use our incremental borrowing rate, which is updated quarterly, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Refer to Note 4, "Leases," for additional information. Leases Our adoption of ASU 2016-02, Leases (Topic 842) , and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as a ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification and initial direct costs, and we did not elect the use of hindsight. We combine ROU asset amortization and the change in the lease liability in the same line item on the Consolidated Statements of Cash Flows. We have operating leases for manufacturing, office, warehouse and distribution space, paperboard sheeting and chipping facilities, equipment and vehicles. We also have finance leases related to our North Carolina converting and manufacturing facilities, as well as for certain office and other equipment. We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. Our leases have remaining lease terms from less than one year to twelve years, and some of our leases include one or more options to renew. Lease ROU assets and liabilities are recognized at the commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of June 30, 2019 , we did not have any short-term leases. Certain of our leases contain lease and non-lease components that are treated as a single lease component. Our variable lease costs consist primarily of taxes, insurance and common area maintenance. For the six months ended June 30, 2019 , sublease income was immaterial to the financial statements. The tables below present financial information associated with our leases. This information is only presented as of, and for the three and six months ended, June 30, 2019 . As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. LEASE EXPENSE Three Months Ended Six Months Ended (In thousands) June 30, 2019 Operating lease costs $ 3,529 $ 7,009 Finance lease costs: Amortization of right-of-use assets 463 878 Interest on lease liabilities 467 939 Total finance lease costs 930 1,817 Variable lease costs 337 556 Total lease costs $ 4,796 $ 9,382 SUPPLEMENTAL CASH FLOW INFORMATION Six Months Ended (In thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,074 Operating cash flows from finance leases 939 Financing cash flows from finance leases 592 Non-cash amounts for lease liabilities arising from obtaining right-of-use assets: Operating leases $ 937 Finance leases 493 SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification June 30, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 75,338 Finance lease assets Property, plant and equipment, net 16,740 Total lease ROU assets $ 92,078 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,396 Current finance lease liabilities Accounts payable and accrued liabilities 1,381 Total current lease liabilities 13,777 Non-current operating lease liabilities Operating lease liabilities 70,194 Non-current finance lease liabilities Other long-term obligations 21,376 Total non-current lease liabilities 91,570 Total lease liabilities $ 105,347 LEASE TERM AND DISCOUNT RATE June 30, 2019 Weighted average remaining lease term (years) Operating leases 7.2 Finance leases 11.0 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the six months ended June 30, 2019, $87.3 million of receivables were sold under the Account Purchase Agreement. As of June 30, 2019, $9.3 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line in the operating activities section of our Consolidated Statements of Cash Flows. For the six months ended June 30, 2019, we recorded factoring expense on sales of receivables of $0.3 million , which is included in the "Interest expense, net" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. |
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 income tax positions, assessment of impairment of long-lived assets and goodwill, 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, CASH EQUIVALENTS AND RESTRICTED CASH We consider all highly liquid instruments with maturities of three months or less at date of purchase to be cash equivalents. Cash that is held by a third party and has restrictions on its availability to us is classified as restricted cash. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of those same amounts shown in our Consolidated Statements of Cash Flows. (In thousands) June 30, 2019 June 30, 2018 Cash and cash equivalents $ 41,800 $ 53,278 Restricted cash 1,440 — Restricted cash included in other assets, net 1,034 1,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 44,274 $ 54,290 |
TRADE ACCOUNTS RECEIVABLE | REVENUE RECOGNITION We enter into contracts that can include various combinations of tissue and paperboard products, which are generally distinct and accounted for as separate performance obligations. Revenue is recognized at a point in time upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control typically occurs when the title and risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer. We have elected to treat shipping and handling costs for FOB shipping point contracts as a fulfillment cost, not as a separate performance obligation. No revenue is recognized over time. We typically expense incremental direct costs of obtaining a contract (sales commissions) when incurred because the amortization period is generally 12 months or less. We have also elected to use the practical expedient to not disclose unsatisfied or partially satisfied performance obligations as we have no unsatisfied contracts where the remaining portions are expected to be satisfied in a period greater than one year. We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales, which are accounted for as variable consideration when estimating the amount of revenue to recognize . Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Revenue net of returns and credits is only recognized to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Significant judgment is required to determine the most probable amount of variable consideration to apply as a reduction to net sales. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract. Terms generally include a requirement of payment within 30 days, and do not include a significant financing component. 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 June 30, 2019 and December 31, 2018 , we had allowances for doubtful accounts of $1.6 million and $1.5 million , respectively. Refer to Note 14, "Segment Information," for further information, including the disaggregation of revenue by segment, primary geographical market, and major product type. |
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 $1,741.3 million and $1,691.7 million at June 30, 2019 and December 31, 2018 , respectively. For the six months ended June 30, 2019 , we capitalized $4.9 million of interest expense associated with the construction of a paper machine at our Shelby, North Carolina consumer products facility and $0.5 million of interest expense associated with the construction of a continuous pulp digester at our Lewiston, Idaho pulp and paperboard facility. For the six months ended June 30, 2018, we capitalized $2.6 million of interest expense associated with the Shelby paper machine and $0.6 million of interest expense associated with the continuous pulp digester project. We review 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. |
DERIVATIVES | DERIVATIVES We had no activity during the three and six months ended June 30, 2019 and 2018 that required hedge or derivative accounting treatment. 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 June 30, 2019 , these contracts covered approximately 35% of our expected average monthly natural gas requirements for the remainder of 2019 . Historically, these contracts have qualified for treatment as “normal purchases or normal sales” under authoritative guidance and thus required no mark-to-market adjustment. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | (In thousands) June 30, 2019 June 30, 2018 Cash and cash equivalents $ 41,800 $ 53,278 Restricted cash 1,440 — Restricted cash included in other assets, net 1,034 1,012 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 44,274 $ 54,290 |
Inventories - (Tables)
Inventories - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at the balance sheet dates consist of: (In thousands) June 30, 2019 December 31, 2018 Pulp, paperboard and tissue products $ 175,566 $ 159,499 Materials and supplies 91,801 86,892 Logs, pulpwood, chips and sawdust 20,496 19,853 $ 287,863 $ 266,244 |
Leases - (Tables)
Leases - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | LEASE EXPENSE Three Months Ended Six Months Ended (In thousands) June 30, 2019 Operating lease costs $ 3,529 $ 7,009 Finance lease costs: Amortization of right-of-use assets 463 878 Interest on lease liabilities 467 939 Total finance lease costs 930 1,817 Variable lease costs 337 556 Total lease costs $ 4,796 $ 9,382 |
Lease, Supplemental cash flow information | SUPPLEMENTAL CASH FLOW INFORMATION Six Months Ended (In thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,074 Operating cash flows from finance leases 939 Financing cash flows from finance leases 592 Non-cash amounts for lease liabilities arising from obtaining right-of-use assets: Operating leases $ 937 Finance leases 493 |
Supplemental Balance Sheet Disclosures [Text Block] | SUPPLEMENTAL BALANCE SHEET INFORMATION (In thousands) Classification June 30, 2019 Lease ROU Assets Operating lease assets Operating lease right-of-use assets $ 75,338 Finance lease assets Property, plant and equipment, net 16,740 Total lease ROU assets $ 92,078 Lease Liabilities Current operating lease liabilities Accounts payable and accrued liabilities $ 12,396 Current finance lease liabilities Accounts payable and accrued liabilities 1,381 Total current lease liabilities 13,777 Non-current operating lease liabilities Operating lease liabilities 70,194 Non-current finance lease liabilities Other long-term obligations 21,376 Total non-current lease liabilities 91,570 Total lease liabilities $ 105,347 |
Lease term and discount rate [Table Text Block] | LEASE TERM AND DISCOUNT RATE June 30, 2019 Weighted average remaining lease term (years) Operating leases 7.2 Finance leases 11.0 Weighted average discount rate Operating leases 4.9 % Finance leases 8.3 % |
Intangible Assets - (Tables)
Intangible Assets - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets | Intangible assets at the balance sheet dates comprise the following: June 30, 2019 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (38,487 ) $ 17,966 Trade names and trademarks 7.4 6,786 (4,543 ) 2,243 Other intangibles 6.0 572 (271 ) 301 $ 63,811 $ (43,301 ) $ 20,510 December 31, 2018 (Dollars in thousands, lives in years) Weighted Average Useful Life Historical Cost Accumulated Amortization Net Balance Customer relationships 9.4 $ 56,453 $ (35,469 ) $ 20,984 Trade names and trademarks 7.4 6,786 (4,029 ) 2,757 Other intangibles 6.0 572 (233 ) 339 $ 63,811 $ (39,731 ) $ 24,080 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 31, 2018 Trade accounts payable $ 183,663 $ 228,059 Accrued wages, salaries and employee benefits 37,275 41,426 Accrued account purchase agreement liabilities 16,889 4,885 Accrued interest 15,824 14,672 Lease liabilities 13,777 — Accrued taxes other than income taxes payable 10,723 6,243 Accrued discounts and allowances 7,458 8,143 Accrued utilities 6,923 6,934 Other 8,762 10,670 $ 301,294 $ 321,032 |
Other Long-Term Obligations - (
Other Long-Term Obligations - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Obligations | Other long-term obligations at the balance sheet dates consist of: (In thousands) June 30, 2019 December 31, 2018 Finance lease obligations, net of current portion $ 21,376 $ 21,589 Deferred proceeds 4,189 4,511 Deferred compensation 4,005 2,585 Other 3,928 10,292 $ 33,498 $ 38,977 |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefit Plans - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [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 other postretirement employee benefit, or OPEB, plans for the periods presented: Three Months Ended June 30, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 669 $ 461 $ 20 $ 20 Interest cost 3,102 3,010 752 611 Expected return on plan assets (4,132 ) (4,247 ) — — Amortization of prior service cost (credit) — — — (419 ) Amortization of actuarial loss (gain) 1,776 2,458 33 (226 ) Net periodic cost (benefit) $ 1,415 $ 1,682 $ 805 $ (14 ) Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Pension Benefit Plans Other Postretirement Employee Benefit Plans Service cost $ 1,219 $ 895 $ 45 $ 68 Interest cost 6,223 6,010 1,399 1,218 Expected return on plan assets (8,267 ) (8,501 ) — — Amortization of prior service cost (credit) — — — (838 ) Amortization of actuarial loss (gain) 3,685 5,028 (195 ) (451 ) Net periodic cost (benefit) $ 2,860 $ 3,432 $ 1,249 $ (3 ) |
Earnings per Common Share - (Ta
Earnings per Common Share - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic weighted-average common shares outstanding 1 16,538,501 16,486,935 16,527,448 16,491,366 Incremental shares due to: Restricted stock units — 20,970 16,570 29,530 Performance shares — 47,266 7,569 52,051 Stock options — — — 90 Diluted weighted-average common shares outstanding 16,538,501 16,555,171 16,551,587 16,573,037 Basic net (loss) earnings per common share $ (0.03 ) $ 0.42 $ 0.21 $ 0.58 Diluted net (loss) earnings per common share (0.03 ) 0.42 0.21 0.58 Anti-dilutive shares excluded from calculation 1,104,277 1,029,983 1,018,641 912,863 1 Basic weighted-average common shares outstanding includes restricted stock unit awards that are fully vested, but are deferred for future issuance. |
Equity-Based Compensation - (Ta
Equity-Based Compensation - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Equity-Based Compensation Expense | Employee equity-based compensation expense was recognized as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Restricted stock units $ 679 $ 582 $ 1,181 $ 1,004 Performance shares 184 377 518 910 Stock options 348 593 690 1,128 Total employee equity-based compensation expense $ 1,211 $ 1,552 $ 2,389 $ 3,042 |
Summary of Number of Share-Based Awards Granted | The following table summarizes the number of share-based awards granted under the Clearwater Paper Corporation 2017 Stock Incentive Plan during the six months ended June 30, 2019 and the grant-date fair value of the awards: Six Months Ended June 30, 2019 Number of Weighted-Average Fair Restricted stock units 133,533 $ 26.79 Performance shares 151,664 26.60 |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, 2019 2018 Carrying Fair Carrying Fair (In thousands) Amount Value Amount Value Cash, cash equivalents and restricted cash (Level 1) $ 44,274 $ 44,274 $ 24,947 $ 24,947 Short-term borrowings under revolving credit facilities (Level 2) 235,000 234,995 100,000 99,909 Other short-term debt (Level 1) — — 20,833 20,833 Long-term debt (Level 2) 675,000 635,244 675,000 612,546 |
Segment Information - (Tables)
Segment Information - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Primary geographical markets: United States $ 431,432 $ 412,231 $ 846,201 $ 833,051 Other countries 20,561 19,868 34,571 36,000 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Major products: Paperboard $ 226,170 $ 210,514 $ 429,195 $ 408,624 Retail tissue 210,514 197,767 415,099 417,609 Non-retail tissue 12,263 23,765 30,732 40,724 Other 3,046 53 5,746 2,094 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 |
Reportable Segments Information | The table below presents information about our reportable segments: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Segment net sales: Consumer Products $ 224,340 $ 221,585 $ 447,676 $ 460,427 Pulp and Paperboard 227,653 210,514 433,096 408,624 Total segment net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Earnings (loss) before income taxes: Consumer Products 1 $ (5,133 ) $ (3,604 ) $ (3,862 ) $ (1,975 ) Pulp and Paperboard 1 33,587 34,192 62,975 60,346 28,454 30,588 59,113 58,371 Corporate 1 (13,113 ) (12,207 ) (29,410 ) (28,451 ) Income from operations 15,341 18,381 29,703 29,920 Interest expense, net (10,914 ) (7,723 ) (19,400 ) (15,743 ) Non-operating pension and other postretirement benefit costs (1,531 ) (1,187 ) (2,845 ) (2,466 ) Earnings before income taxes $ 2,896 $ 9,471 $ 7,458 $ 11,711 Depreciation and amortization: Consumer Products $ 17,431 $ 14,220 $ 32,202 $ 28,517 Pulp and Paperboard 9,491 9,361 18,976 18,790 Corporate 1,595 1,596 3,175 3,037 Total depreciation and amortization $ 28,517 $ 25,177 $ 54,353 $ 50,344 1 Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended June 30, 2018 include $0.2 million, $0.1 million and $0.8 million, respectively, of expenses associated with our selling, general, and administrative cost control measures. Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the six months ended June 30, 2018 include $1.7 million , $0.4 million and $4.1 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the six months ended June 30, 2019, no customer accounted for more than 10% of our total company net sales. For the six months ended June 30, 2018, one customer, the Kroger Company, accounted for approximately 13.4% of our total company net sales. Our reportable segments are described below. Consumer Products Our Consumer Products segment manufactures and sells a complete line of at-home tissue products, or retail products, and away-from-home tissue products, or non-retail products, and parent rolls. Retail products include bath, paper towels, facial and napkin product categories. Non-retail products include conventional one and two-ply bath tissue, two-ply paper towels, some facial tissue product categories, hard wound towels and dispenser napkins sold to customers with commercial and industrial tissue needs. Each category is further distinguished according to quality segments: ultra, premium, value and economy. Pulp and Paperboard Our Pulp and Paperboard segment manufactures and markets solid bleached sulfate paperboard for the high-end segment of the packaging industry as well as offers custom sheeting, slitting and cutting of paperboard. Our overall production consists primarily of folding carton, liquid packaging, cup and plate products and commercial printing grades. The majority of our Pulp and Paperboard customers are packaging converters, folding carton converters, merchants and commercial printers. The table below presents information about our reportable segments: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Segment net sales: Consumer Products $ 224,340 $ 221,585 $ 447,676 $ 460,427 Pulp and Paperboard 227,653 210,514 433,096 408,624 Total segment net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Earnings (loss) before income taxes: Consumer Products 1 $ (5,133 ) $ (3,604 ) $ (3,862 ) $ (1,975 ) Pulp and Paperboard 1 33,587 34,192 62,975 60,346 28,454 30,588 59,113 58,371 Corporate 1 (13,113 ) (12,207 ) (29,410 ) (28,451 ) Income from operations 15,341 18,381 29,703 29,920 Interest expense, net (10,914 ) (7,723 ) (19,400 ) (15,743 ) Non-operating pension and other postretirement benefit costs (1,531 ) (1,187 ) (2,845 ) (2,466 ) Earnings before income taxes $ 2,896 $ 9,471 $ 7,458 $ 11,711 Depreciation and amortization: Consumer Products $ 17,431 $ 14,220 $ 32,202 $ 28,517 Pulp and Paperboard 9,491 9,361 18,976 18,790 Corporate 1,595 1,596 3,175 3,037 Total depreciation and amortization $ 28,517 $ 25,177 $ 54,353 $ 50,344 1 Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended June 30, 2018 include $0.2 million, $0.1 million and $0.8 million, respectively, of expenses associated with our selling, general, and administrative cost control measures. Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the six months ended June 30, 2018 include $1.7 million , $0.4 million and $4.1 million , respectively, of expenses associated with our selling, general and administrative cost control measures. For the six months ended June 30, 2019, no customer accounted for more than 10% of our total company net sales. For the six months ended June 30, 2018, one customer, the Kroger Company, accounted for approximately 13.4% of our total company net sales. Net sales, classified by the major geographic areas in which our customers are located and by major products, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Primary geographical markets: United States $ 431,432 $ 412,231 $ 846,201 $ 833,051 Other countries 20,561 19,868 34,571 36,000 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 Major products: Paperboard $ 226,170 $ 210,514 $ 429,195 $ 408,624 Retail tissue 210,514 197,767 415,099 417,609 Non-retail tissue 12,263 23,765 30,732 40,724 Other 3,046 53 5,746 2,094 Total net sales $ 451,993 $ 432,099 $ 880,772 $ 869,051 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2019 (In thousands) Issuer Guarantor Eliminations Total Net sales $ 421,457 $ 67,685 $ (37,149 ) $ 451,993 Costs and expenses: Cost of sales (385,788 ) (61,325 ) 37,288 (409,825 ) Selling, general and administrative expenses (21,078 ) (5,749 ) — (26,827 ) Total operating costs and expenses (406,866 ) (67,074 ) 37,288 (436,652 ) Income from operations 14,591 611 139 15,341 Interest expense, net (10,877 ) (37 ) — (10,914 ) Non-operating pension and other postretirement benefit costs (1,531 ) — — (1,531 ) Earnings before income taxes 2,183 574 139 2,896 Income tax (provision) benefit (1,969 ) 428 (1,779 ) (3,320 ) Equity in income of subsidiary 1,002 — (1,002 ) — Net earnings (loss) $ 1,216 $ 1,002 $ (2,642 ) $ (424 ) Other comprehensive income, net of tax 1,334 — — 1,334 Comprehensive income $ 2,550 $ 1,002 $ (2,642 ) $ 910 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2019 (In thousands) Issuer Guarantor Eliminations Total Net sales $ 833,852 $ 135,225 $ (88,305 ) $ 880,772 Costs and expenses: Cost of sales (758,040 ) (121,501 ) 85,470 (794,071 ) Selling, general and administrative expenses (47,323 ) (9,675 ) — (56,998 ) Total operating costs and expenses (805,363 ) (131,176 ) 85,470 (851,069 ) Income from operations 28,489 4,049 (2,835 ) 29,703 Interest expense, net (19,262 ) (138 ) — (19,400 ) Non-operating pension and other postretirement benefit costs (2,845 ) — — (2,845 ) Earnings before income taxes 6,382 3,911 (2,835 ) 7,458 Income tax (provision) benefit (3,775 ) (424 ) 154 (4,045 ) Equity in income of subsidiary 3,487 — (3,487 ) — Net earnings $ 6,094 $ 3,487 $ (6,168 ) $ 3,413 Other comprehensive income, net of tax 2,573 — — 2,573 Comprehensive income $ 8,667 $ 3,487 $ (6,168 ) $ 5,986 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 433,826 $ 54,313 $ (56,040 ) $ 432,099 Costs and expenses: Cost of sales (394,260 ) (47,918 ) 55,024 (387,154 ) Selling, general and administrative expenses (21,226 ) (5,338 ) — (26,564 ) Total operating costs and expenses (415,486 ) (53,256 ) 55,024 (413,718 ) Income from operations 18,340 1,057 (1,016 ) 18,381 Interest expense, net (7,627 ) (96 ) — (7,723 ) Non-operating pension and other postretirement benefit costs (1,187 ) — — (1,187 ) Earnings before income taxes 9,526 961 (1,016 ) 9,471 Income tax provision (2,574 ) (186 ) 250 (2,510 ) Equity in income of subsidiary 775 — (775 ) — Net earnings $ 7,727 $ 775 $ (1,541 ) $ 6,961 Other comprehensive income, net of tax 1,336 — — 1,336 Comprehensive income $ 9,063 $ 775 $ (1,541 ) $ 8,297 Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total Net sales $ 889,003 $ 100,526 $ (120,478 ) $ 869,051 Costs and expenses: Cost of sales (807,217 ) (88,278 ) 115,908 (779,587 ) Selling, general and administrative expenses (48,858 ) (10,686 ) — (59,544 ) Total operating costs and expenses (856,075 ) (98,964 ) 115,908 (839,131 ) Income from operations 32,928 1,562 (4,570 ) 29,920 Interest expense, net (15,556 ) (187 ) — (15,743 ) Non-operating pension and other postretirement benefit costs (2,466 ) — — (2,466 ) Earnings before income taxes 14,906 1,375 (4,570 ) 11,711 Income tax provision (2,956 ) (199 ) 1,005 (2,150 ) Equity in income of subsidiary 1,176 — (1,176 ) — Net earnings $ 13,126 $ 1,176 $ (4,741 ) $ 9,561 Other comprehensive income, net of tax 2,755 — — 2,755 Comprehensive income $ 15,881 $ 1,176 $ (4,741 ) $ 12,316 |
Condensed Consolidating Balance Sheet | Clearwater Paper Corporation Consolidating Balance Sheet At June 30, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 41,800 $ — $ — $ 41,800 Restricted cash 1,440 — — 1,440 Receivables, net 151,072 18,900 — 169,972 Taxes receivable 7,995 295 (347 ) 7,943 Inventories 248,236 42,462 (2,835 ) 287,863 Other current assets 9,832 286 — 10,118 Total current assets 460,375 61,943 (3,182 ) 519,136 Property, plant and equipment, net 1,220,503 73,191 — 1,293,694 Operating lease right-of-use assets 69,656 5,682 — 75,338 Goodwill 35,074 — — 35,074 Intangible assets, net 522 19,988 — 20,510 Intercompany (payable) receivable (65,731 ) 62,896 2,835 — Investment in subsidiary 178,788 — (178,788 ) — Other assets, net 11,365 2,818 (2,088 ) 12,095 TOTAL ASSETS $ 1,910,552 $ 226,518 $ (181,223 ) $ 1,955,847 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 235,000 $ — $ — $ 235,000 Accounts payable and accrued liabilities 278,415 23,226 (347 ) 301,294 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 520,845 23,226 (347 ) 543,724 Long-term debt 671,676 — — 671,676 Operating lease liabilities 65,966 4,228 — 70,194 Liability for pensions and other postretirement employee benefits 74,903 — — 74,903 Other long-term obligations 33,498 — — 33,498 Accrued taxes 1,378 879 — 2,257 Deferred tax liabilities 107,921 19,397 (2,088 ) 125,230 TOTAL LIABILITIES 1,476,187 47,730 (2,435 ) 1,521,482 Stockholders’ equity excluding 499,140 178,788 (178,788 ) 499,140 Accumulated other comprehensive loss, net of tax (64,775 ) — — (64,775 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,910,552 $ 226,518 $ (181,223 ) $ 1,955,847 Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 22,484 $ — $ — $ 22,484 Receivables, net 127,952 17,567 — 145,519 Taxes receivable 16,634 41 (10,374 ) 6,301 Inventories 222,960 48,361 (5,077 ) 266,244 Other current assets 3,346 53 — 3,399 Total current assets 393,376 66,022 (15,451 ) 443,947 Property, plant and equipment, net 1,192,716 76,555 — 1,269,271 Goodwill 35,074 — — 35,074 Intangible assets, net 1,045 23,035 — 24,080 Intercompany (payable) receivable (62,846 ) 57,769 5,077 — Investment in subsidiary 175,301 — (175,301 ) — Other assets, net 14,839 2,618 (1,711 ) 15,746 TOTAL ASSETS $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 120,833 $ — $ — $ 120,833 Accounts payable and accrued liabilities 299,715 31,691 (10,374 ) 321,032 Current liability for pensions and other postretirement employee benefits 7,430 — — 7,430 Total current liabilities 427,978 31,691 (10,374 ) 449,295 Long-term debt 671,292 — — 671,292 Liability for pensions and other postretirement employee benefits 78,191 — — 78,191 Other long-term obligations 38,977 — — 38,977 Accrued taxes 1,918 867 — 2,785 Deferred tax liabilities 104,753 18,140 (1,711 ) 121,182 TOTAL LIABILITIES 1,323,109 50,698 (12,085 ) 1,361,722 Stockholders’ equity excluding 493,744 175,301 (175,301 ) 493,744 Accumulated other comprehensive loss, net of tax (67,348 ) — — (67,348 ) TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,749,505 $ 225,999 $ (187,386 ) $ 1,788,118 |
Condensed Consolidating Statement of Cash Flows | Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 6,094 $ 3,487 $ (6,168 ) $ 3,413 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 46,457 7,896 — 54,353 Equity-based compensation expense 2,070 — — 2,070 Deferred taxes 3,880 1,300 — 5,180 Deferred issuance costs on debt 938 — — 938 Other non-cash activity, net (792 ) — (792 ) Changes in working capital, net (64,846 ) 4,811 9,889 (50,146 ) Changes in taxes receivable 8,639 (254 ) (10,027 ) (1,642 ) Changes in non-current accrued taxes (540 ) 12 — (528 ) Other, net 1,942 (66 ) — 1,876 Net cash flows from operating activities 3,842 17,186 (6,306 ) 14,722 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (107,155 ) (1,264 ) — (108,419 ) Other, net 4 — — 4 Net cash flows from investing activities (107,151 ) (1,264 ) — (108,415 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 436,927 — — 436,927 Repayments of borrowings on short-term debt (322,760 ) — — (322,760 ) Investment from (to) parent 9,616 (15,922 ) 6,306 — Other, net (1,147 ) — — (1,147 ) Net cash flows from financing activities 122,636 (15,922 ) 6,306 113,020 Increase in cash, cash equivalents and restricted cash 19,327 — — 19,327 Cash, cash equivalents and restricted cash at beginning of period 24,947 — — 24,947 Cash, cash equivalents and restricted cash at end of period $ 44,274 $ — $ — $ 44,274 Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (In thousands) Issuer Guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 13,126 $ 1,176 $ (4,741 ) $ 9,561 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 39,905 10,439 — 50,344 Equity-based compensation expense 343 — — 343 Deferred taxes 2,979 (330 ) — 2,649 Deferred issuance costs on long term debt 716 — — 716 Other non-cash activity, net 414 (4 ) — 410 Changes in working capital, net 41,660 (6,051 ) 708 36,317 Changes in taxes receivable 11,502 (4 ) — 11,498 Changes in non-current accrued taxes, net 346 — — 346 Other, net (770 ) (526 ) — (1,296 ) Net cash flows from operating activities 110,221 4,700 (4,033 ) 110,888 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (77,257 ) (1,343 ) — (78,600 ) Other, net 793 14 — 807 Net cash flows from investing activities (76,464 ) (1,329 ) — (77,793 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on short-term debt 124,063 — — 124,063 Repayments of borrowings on short-term debt (119,063 ) — — (119,063 ) Investment (to) from parent (662 ) (3,371 ) 4,033 — Other, net (543 ) — — (543 ) Net cash flows from financing activities 3,795 (3,371 ) 4,033 4,457 Increase in cash, cash equivalents and restricted cash 37,552 — — 37,552 Cash, cash equivalents and restricted cash at beginning of period 16,738 — — 16,738 Cash, cash equivalents and restricted cash at end of period $ 54,290 $ — $ — $ 54,290 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Narrative (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2019 | Aug. 06, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Nature of Operations | |||||
Cash and Cash Equivalents, at Carrying Value | $ 41,800 | $ 22,484 | |||
Incremental direct costs, short-term in nature, expensed when incurred | 12 months | ||||
revenue recognition, payment terms | 30 days | ||||
Restricted Cash, Noncurrent | $ 1,034 | $ 1,012 | |||
Allowance for doubtful accounts | 1,500 | ||||
Accumulated depreciation | $ 1,741,300 | 1,691,658 | |||
Percentage Of Expected Natural Gas Requirement Covered Under Contract | 35.00% | ||||
Shelby paper machine interest cost capitalized | $ 4,900 | ||||
Entity Common Stock, Shares Outstanding | 16,515,156 | ||||
Account Purchase Agreement [Table Text Block] | ACCOUNT PURCHASE AGREEMENT In June 2018, we entered into an agreement (the “Account Purchase Agreement”) to offer to sell, on a revolving and discounted basis, certain trade accounts receivable balances to an unrelated third-party financial institution. If the financial institution purchases receivables thereunder, in its sole discretion, such transfers are accounted for as sales of receivables resulting in the receivables being de-recognized from our Consolidated Balance Sheet. The Account Purchase Agreement provides for the continuing sale of certain receivables on a revolving basis until June 2020 and automatically renews for successive one year terms, unless either party elects to terminate the Account Purchase Agreement in accordance with its terms. The maximum amount of receivables that may be sold at any time, prior to the settlement thereof, is $30.0 million . For the six months ended June 30, 2019, $87.3 million of receivables were sold under the Account Purchase Agreement. As of June 30, 2019, $9.3 million of accounts receivable sold under the Asset Purchase Agreement were outstanding. The proceeds from these sales of receivables are included within the "Changes in working capital, net" line in the operating activities section of our Consolidated Statements of Cash Flows. For the six months ended June 30, 2019, we recorded factoring expense on sales of receivables of $0.3 million , which is included in the "Interest expense, net" line in the Consolidated Statement of Operations. We have no retained interest in the receivables sold under the Account Purchase Agreement, however, we do have servicing responsibilities for the sold receivables. The fair value of the servicing arrangement was not material to the financial statements. | ||||
Factoring Expense | $ 30,000 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 44,274 | 24,947 | $ 54,290 | $ 16,738 | |
Accrued account purchase agreement liabilities | 16,889 | $ 4,885 | |||
Consumer Products | |||||
Nature of Operations | |||||
Severance Costs | $ 1,700 |
Inventories - Narrative (Detail
Inventories - Narrative (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Pulp, paperboard and tissue products | $ 175,566 | $ 159,499 |
Materials and supplies | 91,801 | 86,892 |
Logs, pulpwood, chips and sawdust | 20,496 | 19,853 |
Inventories | $ 287,863 | $ 266,244 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months | 7 years 2 months | |
Finance Lease, Weighted Average Remaining Lease Term | 11 years | 11 years | |
Operating Lease, Right-of-Use Asset | $ 75,338 | $ 75,338 | $ 0 |
Operating Lease, Payments | 8,074 | ||
Finance Lease, Interest Payment on Liability | 467 | 939 | |
Operating Lease, Cost | 3,529 | 7,009 | |
Finance Lease, Right-of-Use Asset, Amortization | 463 | 878 | |
Finance Lease, Cost | 930 | 1,817 | |
Variable Lease, Cost | 337 | 556 | |
Lease, Cost | 4,796 | 9,382 | |
Finance Lease, Principal Payments | 592 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 937 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 493 | ||
Finance Lease, Right-of-Use Asset | 16,740 | 16,740 | |
total leased assets | 92,078 | 92,078 | |
Operating Lease, Liability, Current | 12,396 | 12,396 | |
Finance Lease, Liability, Current | 1,381 | 1,381 | |
Total lease liability, current | 13,777 | 13,777 | 0 |
Operating Lease, Liability, Noncurrent | 70,194 | 70,194 | 0 |
Finance Lease, Liability, Noncurrent | 21,376 | 21,376 | $ 21,589 |
Total lease liability, noncurrent | 91,570 | 91,570 | |
Total lease liabilities | $ 105,347 | $ 105,347 | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.90% | 4.90% | |
Finance Lease, Weighted Average Discount Rate, Percent | 8.30% | 8.30% | |
Minimum [Member] | |||
Remaining lease term | 1 year | ||
Maximum [Member] | |||
Remaining lease term | 12 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1,800 | $ 2,000 | |
Historical Cost | 63,811 | $ 63,811 | |
Accumulated Amortization | (43,301) | (39,731) | |
Net Balance | $ 20,510 | 24,080 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 9 years 4 months 24 days | ||
Historical Cost | $ 56,453 | 56,453 | |
Accumulated Amortization | (38,487) | (35,469) | |
Net Balance | $ 17,966 | 20,984 | |
Tradenames and trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 7 years 5 months | ||
Historical Cost | $ 6,786 | 6,786 | |
Accumulated Amortization | (4,543) | (4,029) | |
Net Balance | $ 2,243 | 2,757 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 6 years | ||
Historical Cost | $ 572 | 572 | |
Accumulated Amortization | (271) | (233) | |
Net Balance | $ 301 | $ 339 |
Taxes - Narrative (Detail)
Taxes - Narrative (Detail) | 6 Months Ended | |
Jun. 30, 2019Rate | Jun. 30, 2018Rate | |
Operating Loss Carryforwards [Line Items] | ||
Estimated Annual Effective Tax Rate | 59.00% | 26.00% |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Narrative (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | $ 183,663 | $ 228,059 |
Accrued wages, salaries and employee benefits | 37,275 | 41,426 |
Total lease liability, current | 13,777 | 0 |
Accrued account purchase agreement liabilities | 16,889 | 4,885 |
Accrued discounts and allowances | 7,458 | 8,143 |
Accrued taxes other than income taxes payable | 10,723 | 6,243 |
Accrued utilities | 6,923 | 6,934 |
Accrued interest | 15,824 | 14,672 |
Other | 8,762 | 10,670 |
Accounts payable and accrued liabilities | $ 301,294 | $ 321,032 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2019 | Jul. 26, 2019 | Dec. 31, 2018 | Jan. 21, 2013 | |
Debt Instrument [Line Items] | |||||
Line of Credit, Current | $ 235,000 | ||||
Long-term Line of Credit | 100,000 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 234,995 | $ 99,909 | |||
Potential additional lines of credit | $ 100,000 | ||||
Ratio of Indebtedness to Net Capital | 2 | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 15,000 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 50.00% | ||||
Senior Notes Due Twenty Twenty-Three [Member] | |||||
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 | $ 7,800 | ||||
Credit facility available to draw | $ 57,200 | ||||
Commitment Fees [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 0.25% | ||||
Commitment Fees [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 0.375% | ||||
JP Morgan [Member] | |||||
Debt Instrument [Line Items] | |||||
Ratio of Indebtedness to Net Capital | 1.10 | ||||
JP Morgan [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 0.25% | ||||
JP Morgan [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 0.75% | ||||
JP Morgan [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 1.25% | ||||
JP Morgan [Member] | London Interbank Offered Rate (LIBOR) | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 1.75% | ||||
Reported Value Measurement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit, Current | $ 235,000 | 100,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 335,000 | $ 200,000 | |||
Subsequent Event [Member] | JP Morgan [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 300,000 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 58,000 | ||||
Financing Receivable, Revolving | $ 250,000 | ||||
Forecast [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Ratio of Indebtedness to Net Capital | 4.25 | ||||
Debt, Weighted Average Interest Rate | 2.00% | ||||
Forecast [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Ratio of Indebtedness to Net Capital | 4.25 | ||||
Debt, Weighted Average Interest Rate | 2.25% | ||||
Forecast [Member] | London Interbank Offered Rate (LIBOR) | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.00% | ||||
Forecast [Member] | London Interbank Offered Rate (LIBOR) | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.25% |
Other Long-Term Obligations - N
Other Long-Term Obligations - Narrative (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Finance Lease, Liability, Noncurrent | $ 21,376 | $ 21,589 |
Deferred proceeds | 4,189 | 4,511 |
Deferred compensation | 4,005 | 2,585 |
Other | 3,928 | 10,292 |
Other long-term obligations | $ 33,498 | $ 38,977 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | $ (1,334) | $ (1,644) | $ (2,573) | $ (3,372) |
Period opening balance | (67,348) | |||
Net current period other comprehensive income ending balance | 1,334 | 1,336 | 2,573 | 2,755 |
Period closing balance | (64,775) | (64,775) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 0 | $ (308) | $ 0 | $ (617) |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefit Plans - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0 | $ 0 | ||||
Non-operating pension and other postretirment benefit (costs) income | 1,531 | $ 1,187 | 2,845 | $ 2,466 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 1,334 | $ 1,239 | 1,336 | $ 1,419 | ||
Supplemental Employee Retirement Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contribution | 200 | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 400 | 400 | ||||
Non Qualified Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 805 | (14) | 1,249 | (3) | ||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1,415 | $ 1,682 | 2,860 | 3,432 | ||
Employer contribution | $ 0 | $ 0 |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefit Plans - Components of Net Periodic Cost of Pension and Other Postretirement Employee Benefit Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-operating pension and other postretirment benefit (costs) income | $ 1,531 | $ 1,187 | $ 2,845 | $ 2,466 |
Pension Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 669 | 461 | 1,219 | 895 |
Interest cost | 3,102 | 3,010 | 6,223 | 6,010 |
Expected return on plan assets | (4,132) | (4,247) | (8,267) | (8,501) |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 1,776 | 2,458 | 3,685 | 5,028 |
Net periodic cost | 1,415 | 1,682 | 2,860 | 3,432 |
Other Postretirement Employee Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 20 | 20 | 45 | 68 |
Interest cost | 752 | 611 | 1,399 | 1,218 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (419) | 0 | (838) |
Amortization of actuarial loss | 33 | (226) | (195) | (451) |
Net periodic cost | $ 805 | $ (14) | $ 1,249 | $ (3) |
Earnings per Common Share - Rec
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 | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Basic average common shares outstanding | 16,538,501 | [1] | 16,486,935 | [1] | 16,527,448 | 16,491,366 |
Incremental shares due to: | ||||||
Restricted stock units | 0 | 20,970 | 16,570 | 29,530 | ||
Performance shares | 0 | 47,266 | 7,569 | 52,051 | ||
Incremental Common Shares Attributable to Stock Options | 0 | 0 | 0 | 90 | ||
Diluted average common shares outstanding | 16,538,501 | 16,555,171 | 16,551,587 | 16,573,037 | ||
Basic net earnings per common share (in dollars per share) | $ (0.03) | $ 0.42 | $ 0.21 | $ 0.58 | ||
Diluted net earnings per common share (in dollars per share) | $ (0.03) | $ 0.42 | $ 0.21 | $ 0.58 | ||
Anti-dilutive shares excluded from calculation | 1,104,277 | 1,029,983 | 1,018,641 | 912,863 | ||
[1] | Basic weighted-average common shares outstanding includes restricted stock unit 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 | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% | 0.00% | |||
Percentage of performance share payout measured by return on invested capital | 30.00% | 30.00% | |||
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% | 0.00% | |||
Share-based Payment Arrangement, Expense | $ 1,211 | $ 1,552 | $ 2,389 | $ 3,042 | |
Cash paid for minimum tax withholdings | $ 400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 71,503 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 51.95 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 519,158 | 519,158 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 51.15 | $ 51.15 | |||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 184 | 377 | $ 518 | 910 | |
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | 679 | 582 | $ 1,181 | 1,004 | |
Shares issued (in shares) | 32,811 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Settled | 47,264 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | 348 | $ 593 | $ 690 | 1,128 | |
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | 100 | $ (2,000) | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | $ 800 | ||||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ 1,800 | $ 1,800 | $ 1,300 | ||
Minimum [Member] | 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 - Emp
Equity-Based Compensation - Employee Equity-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 1,211 | $ 1,552 | $ 2,389 | $ 3,042 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 679 | 582 | 1,181 | 1,004 |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | 184 | 377 | 518 | 910 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 348 | $ 593 | $ 690 | $ 1,128 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Number of Share-Based Awards Granted (Detail) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of performance share payout measured by return on invested capital | 30.00% |
Percentageofperformancesharepayoutmeasuredbyfreeoperatingcashflow | 0.00% |
PercentageofperformancesharepayoutADJUSTMENTmeasuredbytotalshareholderreturn | 0.00% |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 151,664 |
Grant-date fair value of awards per share | $ / shares | $ 26.60 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based awards granted | shares | 133,533 |
Grant-date fair value of awards per share | $ / shares | $ 26.79 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 234,995 | $ 99,909 |
Supply chain financing, amount outstanding | 0 | 20,800 |
Line of Credit, Current | 235,000 | |
Cash, restricted cash, and short-term investments (Level 1) | 44,274 | 24,947 |
Long-term debt (Level 1) | 635,244 | 612,546 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 335,000 | 200,000 |
Supply chain financing, amount outstanding | 0 | 20,800 |
Line of Credit, Current | 235,000 | 100,000 |
Cash, restricted cash, and short-term investments (Level 1) | 44,274 | 24,947 |
Long-term debt (Level 1) | $ 675,000 | $ 675,000 |
Segment Information - Narrative
Segment Information - Narrative (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 451,993,000 | $ 432,099,000 | $ 880,772,000 | $ 869,051,000 | |
Income (loss) from operations | 15,341,000 | 18,381,000 | 29,703,000 | 29,920,000 | |
Interest expense, net | (10,914,000) | (7,723,000) | (19,400,000) | (15,743,000) | |
Non-operating pension and other postretirment benefit (costs) income | 1,531,000 | 1,187,000 | 2,845,000 | 2,466,000 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 2,896,000 | 9,471,000 | 7,458,000 | 11,711,000 | |
Depreciation and amortization | 28,517,000 | 25,177,000 | 54,353,000 | $ 50,344,000 | |
Concentration Risk, Percentage | 13.40% | ||||
Consumer Products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 224,340,000 | 221,585,000 | 447,676,000 | $ 460,427,000 | |
Income (loss) from operations | [1] | (5,133,000) | (3,604,000) | (1,975,000) | |
Operating Income (loss) before gain on divested assets and goodwill impairment | [1] | (3,862,000) | |||
Depreciation and amortization | 17,431,000 | 14,220,000 | 32,202,000 | 28,517,000 | |
Severance Costs | 1,700,000 | ||||
Pulp and Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 227,653,000 | 210,514,000 | 433,096,000 | 408,624,000 | |
Income (loss) from operations | [1] | 33,587,000 | 34,192,000 | 62,975,000 | 60,346,000 |
Depreciation and amortization | 9,491,000 | 9,361,000 | 18,976,000 | 18,790,000 | |
Severance Costs | 400,000 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | 28,454,000 | 30,588,000 | 59,113,000 | 58,371,000 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | [1] | (13,113,000) | (12,207,000) | (29,410,000) | (28,451,000) |
Depreciation and amortization | 1,595,000 | 1,596,000 | 3,175,000 | 3,037,000 | |
Severance Costs | 4,100,000 | ||||
Non-US [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 20,561,000 | 19,868,000 | 34,571,000 | 36,000,000 | |
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 431,432,000 | 412,231,000 | 846,201,000 | 833,051,000 | |
Retail tissue [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 210,514,000 | 197,767,000 | 415,099,000 | 417,609,000 | |
Paperboard [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 226,170,000 | 210,514,000 | 429,195,000 | 408,624,000 | |
Non-retail tissue [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,263,000 | 23,765,000 | 30,732,000 | 40,724,000 | |
Other [Domain] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 3,046,000 | $ 53,000 | $ 5,746,000 | $ 2,094,000 | |
[1] | Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the three months ended June 30, 2018 include $0.2 million, $0.1 million and $0.8 million, respectively, of expenses associated with our selling, general, and administrative cost control measures. Income (loss) from operations for the Consumer Products, Pulp and Paperboard and Corporate segments for the six months ended June 30, 2018 include $1.7 million, $0.4 million and $4.1 million, respectively, of expenses associated with our selling, general and administrative cost control measures. |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 21, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||
Revenues | $ 451,993,000 | $ 432,099,000 | $ 880,772,000 | $ 869,051,000 | |||
Cost and expenses: | |||||||
Income (loss) from operations | 15,341,000 | 18,381,000 | 29,703,000 | 29,920,000 | |||
Interest expense, net | (10,914,000) | (7,723,000) | (19,400,000) | (15,743,000) | |||
Non-operating pension and other postretirment benefit (costs) income | (1,531,000) | (1,187,000) | (2,845,000) | (2,466,000) | |||
Earnings (loss) before income taxes | 2,896,000 | 9,471,000 | 7,458,000 | 11,711,000 | |||
Income tax (provision) benefit | (3,320,000) | (2,510,000) | (4,045,000) | (2,150,000) | |||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 | |||
Net earnings (loss) | (424,000) | $ 3,837,000 | 6,961,000 | $ 2,600,000 | 3,413,000 | 9,561,000 | |
Other comprehensive income (loss), net of tax | 1,334,000 | 1,336,000 | 2,573,000 | 2,755,000 | |||
Comprehensive income | 910,000 | 8,297,000 | 5,986,000 | 12,316,000 | |||
Cost of sales | (409,825,000) | (387,154,000) | (794,071,000) | (779,587,000) | |||
Selling, general and administrative expenses | (26,827,000) | (26,564,000) | (56,998,000) | (59,544,000) | |||
Total operating costs and expenses | (436,652,000) | (413,718,000) | (851,069,000) | (839,131,000) | |||
Parent Company [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Revenues | 421,457,000 | 433,826,000 | 833,852,000 | 889,003,000 | |||
Cost and expenses: | |||||||
Income (loss) from operations | 14,591,000 | 18,340,000 | 28,489,000 | 32,928,000 | |||
Interest expense, net | (10,877,000) | (7,627,000) | (19,262,000) | (15,556,000) | |||
Non-operating pension and other postretirment benefit (costs) income | (1,531,000) | (1,187,000) | (2,845,000) | (2,466,000) | |||
Earnings (loss) before income taxes | 2,183,000 | 9,526,000 | 6,382,000 | 14,906,000 | |||
Income tax (provision) benefit | (1,969,000) | (2,574,000) | (3,775,000) | (2,956,000) | |||
Equity in income (loss) of subsidiary | 1,002,000 | 775,000 | 3,487,000 | 1,176,000 | |||
Net earnings (loss) | 1,216,000 | 7,727,000 | 6,094,000 | 13,126,000 | |||
Other comprehensive income (loss), net of tax | 1,334,000 | 1,336,000 | 2,573,000 | 2,755,000 | |||
Comprehensive income | 2,550,000 | 9,063,000 | 8,667,000 | 15,881,000 | |||
Cost of sales | (385,788,000) | (394,260,000) | (758,040,000) | (807,217,000) | |||
Selling, general and administrative expenses | (21,078,000) | (21,226,000) | (47,323,000) | (48,858,000) | |||
Total operating costs and expenses | (406,866,000) | (415,486,000) | (805,363,000) | (856,075,000) | |||
Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Revenues | 67,685,000 | 54,313,000 | 135,225,000 | 100,526,000 | |||
Cost and expenses: | |||||||
Income (loss) from operations | 611,000 | 1,057,000 | 4,049,000 | 1,562,000 | |||
Interest expense, net | (37,000) | (96,000) | (138,000) | (187,000) | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | 0 | 0 | |||
Earnings (loss) before income taxes | 574,000 | 961,000 | 3,911,000 | 1,375,000 | |||
Income tax (provision) benefit | 428,000 | (186,000) | (424,000) | (199,000) | |||
Equity in income (loss) of subsidiary | 0 | 0 | 0 | 0 | |||
Net earnings (loss) | 1,002,000 | 775,000 | 3,487,000 | 1,176,000 | |||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |||
Comprehensive income | 1,002,000 | 775,000 | 3,487,000 | 1,176,000 | |||
Cost of sales | (61,325,000) | (47,918,000) | (121,501,000) | (88,278,000) | |||
Selling, general and administrative expenses | (5,749,000) | (5,338,000) | (9,675,000) | (10,686,000) | |||
Total operating costs and expenses | (67,074,000) | (53,256,000) | (131,176,000) | (98,964,000) | |||
Eliminations | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Revenues | (37,149,000) | (56,040,000) | (88,305,000) | (120,478,000) | |||
Cost and expenses: | |||||||
Income (loss) from operations | 139,000 | (1,016,000) | (2,835,000) | (4,570,000) | |||
Interest expense, net | 0 | 0 | 0 | 0 | |||
Non-operating pension and other postretirment benefit (costs) income | 0 | 0 | 0 | 0 | |||
Earnings (loss) before income taxes | 139,000 | (1,016,000) | (2,835,000) | (4,570,000) | |||
Income tax (provision) benefit | (1,779,000) | 250,000 | 154,000 | 1,005,000 | |||
Equity in income (loss) of subsidiary | (1,002,000) | (775,000) | (3,487,000) | (1,176,000) | |||
Net earnings (loss) | (2,642,000) | (1,541,000) | (6,168,000) | (4,741,000) | |||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |||
Comprehensive income | (2,642,000) | (1,541,000) | (6,168,000) | (4,741,000) | |||
Cost of sales | 37,288,000 | 55,024,000 | 85,470,000 | 115,908,000 | |||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |||
Total operating costs and expenses | $ 37,288,000 | $ 55,024,000 | $ 85,470,000 | $ 115,908,000 | |||
Senior Notes Due Twenty Twenty-Three [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Debt Instrument, Face Amount | $ 275,000,000 | ||||||
Cost and expenses: | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
Supplemental Guarantor Financ_4
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 41,800 | $ 22,484 |
Restricted cash | 1,440 | 0 |
Receivables, net | 169,972 | 145,519 |
Taxes receivable | 7,943 | 6,301 |
Inventories | 287,863 | 266,244 |
Other Assets, Current | 10,118 | 3,399 |
Total current assets | 519,136 | 443,947 |
Property, plant and equipment, net | 1,293,694 | 1,269,271 |
Operating Lease, Right-of-Use Asset | 75,338 | 0 |
Goodwill | 35,074 | 35,074 |
Intangible assets, net | 20,510 | 24,080 |
Investment in subsidiary | 0 | 0 |
Other assets, net | 12,095 | 15,746 |
TOTAL ASSETS | 1,955,847 | 1,788,118 |
Line of Credit, Current | 235,000 | |
Debt, Current | 235,000 | 120,833 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 301,294 | 321,032 |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 |
Total current liabilities | 543,724 | 449,295 |
Long-term debt | 671,676 | 671,292 |
Operating Lease, Liability, Noncurrent | 70,194 | 0 |
Liability for pensions and other postretirement employee benefits | 74,903 | 78,191 |
Other long-term obligations | 33,498 | 38,977 |
Accrued taxes | 2,257 | 2,785 |
Deferred Tax Liabilities, Gross, Noncurrent | 125,230 | 121,182 |
Liabilities | 1,521,482 | 1,361,722 |
Accumulated other comprehensive loss, net of tax | (64,775) | (67,348) |
Stockholders' equity excluding accumulated other comprehensive loss | 499,140 | 493,744 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,955,847 | 1,788,118 |
Parent Company [Member] | ||
Current assets: | ||
Cash | 41,800 | 22,484 |
Restricted cash | 1,440 | |
Receivables, net | 151,072 | 127,952 |
Taxes receivable | 7,995 | 16,634 |
Inventories | 248,236 | 222,960 |
Other Assets, Current | 9,832 | 3,346 |
Total current assets | 460,375 | 393,376 |
Property, plant and equipment, net | 1,220,503 | 1,192,716 |
Operating Lease, Right-of-Use Asset | 69,656 | |
Goodwill | 35,074 | 35,074 |
Intangible assets, net | 522 | 1,045 |
Intercompany receivable (payable) | (65,731) | (62,846) |
Investment in subsidiary | 178,788 | 175,301 |
Other assets, net | 11,365 | 14,839 |
TOTAL ASSETS | 1,910,552 | 1,749,505 |
Debt, Current | 235,000 | 120,833 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 278,415 | 299,715 |
Current liability for pensions and other postretirement employee benefits | 7,430 | 7,430 |
Total current liabilities | 520,845 | 427,978 |
Long-term debt | 671,676 | 671,292 |
Operating Lease, Liability, Noncurrent | 65,966 | |
Liability for pensions and other postretirement employee benefits | 74,903 | 78,191 |
Other long-term obligations | 33,498 | 38,977 |
Accrued taxes | 1,378 | 1,918 |
Deferred Tax Liabilities, Gross, Noncurrent | 107,921 | 104,753 |
Liabilities | 1,476,187 | 1,323,109 |
Accumulated other comprehensive loss, net of tax | (64,775) | (67,348) |
Stockholders' equity excluding accumulated other comprehensive loss | 499,140 | 493,744 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,910,552 | 1,749,505 |
Guarantor Subsidiaries [Member] | ||
Current assets: | ||
Cash | 0 | 0 |
Restricted cash | 0 | |
Receivables, net | 18,900 | 17,567 |
Taxes receivable | 295 | 41 |
Inventories | 42,462 | 48,361 |
Other Assets, Current | 286 | 53 |
Total current assets | 61,943 | 66,022 |
Property, plant and equipment, net | 73,191 | 76,555 |
Operating Lease, Right-of-Use Asset | 5,682 | |
Goodwill | 0 | 0 |
Intangible assets, net | 19,988 | 23,035 |
Intercompany receivable (payable) | 62,896 | 57,769 |
Investment in subsidiary | 0 | 0 |
Other assets, net | 2,818 | 2,618 |
TOTAL ASSETS | 226,518 | 225,999 |
Debt, Current | 0 | 0 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 23,226 | 31,691 |
Current liability for pensions and other postretirement employee benefits | 0 | 0 |
Total current liabilities | 23,226 | 31,691 |
Long-term debt | 0 | 0 |
Operating Lease, Liability, Noncurrent | 4,228 | |
Liability for pensions and other postretirement employee benefits | 0 | 0 |
Other long-term obligations | 0 | 0 |
Accrued taxes | 879 | 867 |
Deferred Tax Liabilities, Gross, Noncurrent | 19,397 | 18,140 |
Liabilities | 47,730 | 50,698 |
Accumulated other comprehensive loss, net of tax | 0 | 0 |
Stockholders' equity excluding accumulated other comprehensive loss | 178,788 | 175,301 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 226,518 | 225,999 |
Eliminations | ||
Current assets: | ||
Cash | 0 | 0 |
Restricted cash | 0 | |
Receivables, net | 0 | 0 |
Taxes receivable | (347) | (10,374) |
Inventories | (2,835) | (5,077) |
Other Assets, Current | 0 | 0 |
Total current assets | (3,182) | (15,451) |
Property, plant and equipment, net | 0 | 0 |
Operating Lease, Right-of-Use Asset | 0 | |
Goodwill | 0 | 0 |
Intangible assets, net | 0 | 0 |
Intercompany receivable (payable) | 2,835 | 5,077 |
Investment in subsidiary | (178,788) | (175,301) |
Other assets, net | (2,088) | (1,711) |
TOTAL ASSETS | (181,223) | (187,386) |
Debt, Current | 0 | 0 |
Current liabilities: | ||
Accounts payable and accrued liabilities | (347) | (10,374) |
Current liability for pensions and other postretirement employee benefits | 0 | 0 |
Total current liabilities | (347) | (10,374) |
Long-term debt | 0 | 0 |
Operating Lease, Liability, Noncurrent | 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 | (2,088) | (1,711) |
Liabilities | (2,435) | (12,085) |
Accumulated other comprehensive loss, net of tax | 0 | 0 |
Stockholders' equity excluding accumulated other comprehensive loss | (178,788) | (175,301) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ (181,223) | $ (187,386) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings (loss) | $ (424) | $ 3,837 | $ 6,961 | $ 2,600 | $ 3,413 | $ 9,561 | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 28,517 | 25,177 | 54,353 | 50,344 | ||||
Equity-based compensation expense | 2,070 | 343 | ||||||
Deferred tax expense (benefit) | 5,180 | 2,649 | ||||||
Amortization of Financing Costs and Discounts | 938 | 716 | ||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (792) | 410 | ||||||
Changes in working capital, net | (50,146) | 36,317 | ||||||
Change in taxes receivable, net | (1,642) | 11,498 | ||||||
Increase (Decrease) in Accrued Taxes Payable | (528) | 346 | ||||||
Other Operating Activities, Cash Flow Statement | 1,876 | (1,296) | ||||||
Net cash provided by operating activities | 14,722 | 110,888 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to plant and equipment | (108,419) | (78,600) | ||||||
Payments for (Proceeds from) Other Investing Activities | 4 | 807 | ||||||
Net cash used for investing activities | (108,415) | (77,793) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Investment (to) from Parent | 0 | 0 | ||||||
Payment of tax withholdings on equity-based payment arrangements | (400) | |||||||
Proceeds from (Payments for) Other Financing Activities | (1,147) | (543) | ||||||
Net cash (used for) provided by financing activities | 113,020 | 4,457 | ||||||
Proceeds from Short-term Debt | 436,927 | 124,063 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 19,327 | 37,552 | ||||||
Cash | 41,800 | 41,800 | $ 22,484 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 44,274 | 54,290 | 44,274 | 54,290 | 24,947 | $ 16,738 | ||
Repayments of Short-term Debt | 322,760 | 119,063 | ||||||
Parent Company [Member] | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings (loss) | 1,216 | 7,727 | 6,094 | 13,126 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 46,457 | 39,905 | ||||||
Equity-based compensation expense | 2,070 | 343 | ||||||
Deferred tax expense (benefit) | 3,880 | 2,979 | ||||||
Amortization of Financing Costs and Discounts | 938 | 716 | ||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | (792) | 414 | ||||||
Changes in working capital, net | (64,846) | 41,660 | ||||||
Change in taxes receivable, net | 8,639 | 11,502 | ||||||
Increase (Decrease) in Accrued Taxes Payable | (540) | 346 | ||||||
Other Operating Activities, Cash Flow Statement | 1,942 | (770) | ||||||
Net cash provided by operating activities | 3,842 | 110,221 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to plant and equipment | (107,155) | (77,257) | ||||||
Payments for (Proceeds from) Other Investing Activities | 4 | 793 | ||||||
Net cash used for investing activities | (107,151) | (76,464) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Investment (to) from Parent | 9,616 | (662) | ||||||
Proceeds from (Payments for) Other Financing Activities | (1,147) | (543) | ||||||
Net cash (used for) provided by financing activities | 122,636 | 3,795 | ||||||
Proceeds from Short-term Debt | 436,927 | 124,063 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 19,327 | 37,552 | ||||||
Cash | 41,800 | 41,800 | 22,484 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 44,274 | 54,290 | 44,274 | 54,290 | 24,947 | 16,738 | ||
Repayments of Short-term Debt | 322,760 | 119,063 | ||||||
Guarantor Subsidiaries [Member] | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings (loss) | 1,002 | 775 | 3,487 | 1,176 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 7,896 | 10,439 | ||||||
Equity-based compensation expense | 0 | 0 | ||||||
Deferred tax expense (benefit) | 1,300 | (330) | ||||||
Amortization of Financing Costs and Discounts | 0 | 0 | ||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | (4) | ||||||
Changes in working capital, net | 4,811 | (6,051) | ||||||
Change in taxes receivable, net | (254) | (4) | ||||||
Increase (Decrease) in Accrued Taxes Payable | 12 | 0 | ||||||
Other Operating Activities, Cash Flow Statement | (66) | (526) | ||||||
Net cash provided by operating activities | 17,186 | 4,700 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to plant and equipment | (1,264) | (1,343) | ||||||
Payments for (Proceeds from) Other Investing Activities | 0 | 14 | ||||||
Net cash used for investing activities | (1,264) | (1,329) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Investment (to) from Parent | (15,922) | (3,371) | ||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||||
Net cash (used for) provided by financing activities | (15,922) | (3,371) | ||||||
Proceeds from Short-term Debt | 0 | 0 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||||||
Cash | 0 | 0 | 0 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | ||||
Repayments of Short-term Debt | 0 | 0 | ||||||
Eliminations | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings (loss) | (2,642) | (1,541) | (6,168) | (4,741) | ||||
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 | 0 | ||||||
Amortization of Financing Costs and Discounts | 0 | 0 | ||||||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 0 | |||||||
Changes in working capital, net | 9,889 | 708 | ||||||
Change in taxes receivable, net | (10,027) | 0 | ||||||
Increase (Decrease) in Accrued Taxes Payable | 0 | 0 | ||||||
Other Operating Activities, Cash Flow Statement | 0 | 0 | ||||||
Net cash provided by operating activities | (6,306) | (4,033) | ||||||
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 | ||||||||
Investment (to) from Parent | 6,306 | 4,033 | ||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||||
Net cash (used for) provided by financing activities | 6,306 | 4,033 | ||||||
Proceeds from Short-term Debt | 0 | 0 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||||||
Cash | $ 0 | 0 | 0 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | 0 | $ 0 | $ 0 | ||||
Repayments of Short-term Debt | $ 0 | $ 0 |