Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 28, 2015 | Apr. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAYONIER ADVANCED MATERIALS INC. | |
Trading Symbol | RYAM | |
Entity Central Index Key | 1597672 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 28-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 42,837,691 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Sales | $221,348 | $243,499 |
Cost of Sales | 184,476 | 188,719 |
Gross Margin | 36,872 | 54,780 |
Selling and general expenses | 12,296 | 8,226 |
Other operating expense, net (Note 8) | 630 | 3,190 |
Operating Income | 23,946 | 43,364 |
Interest expense | 9,324 | 0 |
Interest and miscellaneous income, net | -29 | 0 |
Income Before Income Taxes | 14,651 | 43,364 |
Income tax expense (Note 9) | 4,130 | 12,417 |
Net Income | 10,521 | 30,947 |
Earnings Per Share of Common Stock (Note 7) | ||
Basic earnings per share (in dollars per share) | $0.25 | $0.73 |
Diluted earnings per share (in dollars per share) | $0.25 | $0.73 |
Dividends Declared Per Share | $0.07 | $0 |
Comprehensive Income: | ||
Net Income | 10,521 | 30,947 |
Other Comprehensive Income | ||
Net gain from pension and postretirement plans, net of income tax expense of $1,299 and $477 | 2,308 | 830 |
Total other comprehensive income | 2,308 | 830 |
Comprehensive Income | $12,829 | $31,777 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income and Comprehensive Income Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net gain (loss) from pension and postretirement plans, income tax (expense) benefit | ($1,299) | ($477) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $77,621 | $65,977 |
Accounts receivable, less allowance for doubtful accounts of $151 and $151 | 51,688 | 69,263 |
Inventory (Note 2) | 131,937 | 140,209 |
Deferred tax assets | 8,534 | 8,275 |
Prepaid and other current assets | 31,936 | 36,267 |
Total current assets | 301,716 | 319,991 |
Property, Plant and Equipment, Gross | 2,026,725 | 2,010,644 |
Less — Accumulated Depreciation | -1,186,162 | -1,167,269 |
Property, Plant and Equipment, Net | 840,563 | 843,375 |
Deferred Tax Assets | 78,666 | 78,547 |
Other Assets | 60,905 | 61,967 |
Total Assets | 1,281,850 | 1,303,880 |
Current Liabilities | ||
Accounts payable | 55,243 | 64,697 |
Current maturities of long-term debt (Note 3) | 8,207 | 8,400 |
Accrued income and other taxes | 5,551 | 4,643 |
Accrued payroll and benefits | 14,171 | 23,124 |
Accrued interest | 10,228 | 2,684 |
Accrued customer incentives | 9,169 | 12,743 |
Accrued professional services | 1,875 | 755 |
Other current liabilities | 6,793 | 7,158 |
Dividends payable | 2,953 | 0 |
Current liabilities for disposed operations (Note 5) | 8,366 | 7,241 |
Total current liabilities | 122,556 | 131,445 |
Long-Term Debt (Note 3) | 916,675 | 936,416 |
Non-Current Liabilities for Disposed Operations (Note 5) | 147,365 | 149,488 |
Pension and Other Postretirement Benefits (Note 11) | 140,450 | 141,338 |
Other Non-Current Liabilities | 7,392 | 7,605 |
Commitments and Contingencies | ||
Stockholders’ Deficit | ||
Preferred stock, 10,000,000 shares authorized at $0.01 par value, 0 issued and outstanding as of March 28, 2015 and December 31, 2014 | 0 | 0 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 42,837,741 and 42,616,319 issued and outstanding, as of March 28, 2015 and December 31, 2014, respectively | 428 | 426 |
Additional paid-in capital | 62,057 | 62,082 |
Accumulated deficit | -13,937 | -21,476 |
Accumulated other comprehensive loss | -101,136 | -103,444 |
Total Stockholders’ Deficit | -52,588 | -62,412 |
Total Liabilities and Stockholders’ Deficit | $1,281,850 | $1,303,880 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $151 | $151 |
Common shares, shares authorized | 140,000,000 | 140,000,000 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares issued | 42,837,741 | 42,616,319 |
Common shares, shares outstanding | 42,837,741 | 42,616,319 |
Preferred shares, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares, par value (in dollars per share) | $0.01 | $0.01 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $10,521 | $30,947 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 21,752 | 20,649 |
Stock-based incentive compensation expense | 2,669 | 1,686 |
Amortization of capitalized debt costs | 793 | 0 |
Deferred income taxes | -4,216 | -804 |
Amortization of losses and prior service costs from pension and postretirement plans | 3,607 | 1,308 |
Loss from sale/disposal of property, plant and equipment | 382 | 532 |
Other | 80 | -161 |
Changes in operating assets and liabilities: | ||
Receivables | 17,575 | -9,011 |
Inventories | 8,272 | 3,020 |
Accounts payable | -3,988 | 7,174 |
Accrued liabilities | -3,349 | 2,354 |
All other operating activities | 3,091 | -2,941 |
Expenditures for disposed operations | -1,013 | 0 |
Cash Provided by Operating Activities | 56,176 | 54,753 |
Investing Activities | ||
Capital expenditures | -24,540 | -21,715 |
Other | 0 | 508 |
Cash Used for Investing Activities | -24,540 | -21,207 |
Financing Activities | ||
Repayment of debt | -20,000 | 0 |
Proceeds from the issuance of common stock | 8 | 0 |
Net payments to Rayonier | 0 | -33,546 |
Cash Used for Financing Activities | -19,992 | -33,546 |
Cash and Cash Equivalents | ||
Change in cash and cash equivalents | 11,644 | 0 |
Balance, beginning of year | 65,977 | 0 |
Balance, end of period | 77,621 | 0 |
Cash paid during the period: | ||
Interest | 1,990 | 0 |
Income taxes | -307 | 0 |
Non-cash investing and financing activities: | ||
Capital assets purchased on account | $11,170 | $15,390 |
BASIS_OF_PRESENTATION_AND_NEW_
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements |
Basis of Presentation | |
The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (“Rayonier Advanced Materials” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. | |
On June 27, 2014, the Company was separated from its former parent, Rayonier Inc. (“Rayonier”) through the distribution to its stockholders of 42,176,565 shares of common stock (the “Separation”). For periods prior to the Separation, the financial information presented consists of the performance fibers segment of Rayonier and an allocable portion of its corporate costs (together, the “performance fibers business”). These financial statements have been presented as if the Company and performance fibers business had been combined for all prior periods presented. All intercompany transactions are eliminated. The statements of income for periods prior to June 27, 2014 include allocations of certain costs from Rayonier related to the operations of the Company. These corporate administrative costs were charged to the Company based on employee headcount and payroll costs. The combined statements of income also include expense allocations for certain corporate functions historically performed by Rayonier and not allocated to its operating segments. These allocations were based on revenues and specific identification of time and/or activities associated with the Company. Management believes the methodologies employed for the allocation of costs were reasonable in relation to the historical reporting of Rayonier, but may not necessarily be indicative of costs had the Company operated on a stand-alone basis during the periods prior to the Separation, nor what the costs may be in the future. The results of operations for periods prior to June 27, 2014 are not necessarily indicative or predictive of the results to be expected for the post-spin Company. | |
New or Recently Adopted Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. It is effective for fiscal years beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. | |
Subsequent Events | |
Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through May 1, 2015, the date these financial statements were available to be issued. No subsequent events warranting disclosure were identified. |
INVENTORY
INVENTORY | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventory | |||||||
As of March 28, 2015 and December 31, 2014, the Company’s inventory included the following: | ||||||||
March 28, 2015 | December 31, 2014 | |||||||
Finished goods | $ | 112,918 | $ | 120,221 | ||||
Work-in-progress | 3,428 | 2,418 | ||||||
Raw materials | 13,150 | 14,670 | ||||||
Manufacturing and maintenance supplies | 2,441 | 2,900 | ||||||
Total inventory | $ | 131,937 | $ | 140,209 | ||||
DEBT
DEBT | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
The Company’s debt consisted of the following: | ||||||||
28-Mar-15 | 31-Dec-14 | |||||||
Term A-1 Loan Facility borrowings maturing through 2019 at a variable interest rate of 1.67% (a) | $ | 87,736 | $ | 106,973 | ||||
Term A-2 Loan Facility borrowings maturing through 2021 at a variable interest rate of 1.25% (b) | 287,146 | 287,843 | ||||||
Senior Notes due 2024 at a fixed interest rate of 5.50% | 550,000 | 550,000 | ||||||
Total debt | 924,882 | 944,816 | ||||||
Less: Current maturities of long-term debt | (8,207 | ) | (8,400 | ) | ||||
Long-term debt | $ | 916,675 | $ | 936,416 | ||||
(a) | The Term A-1 Loan includes an unamortized issue discount of approximately $0.2 million at March 28, 2015. Upon maturity the liability will be $88.0 million. | |||||||
(b) | The Term A-2 Loan includes an unamortized issue discount of approximately $0.7 million at March 28, 2015. Upon maturity the liability will be $287.8 million. | |||||||
During the first quarter of 2015, the Company made $20.0 million in principal debt repayments on the Term Loan Facilities. There were no other significant changes to the Company’s outstanding debt as reported in Note 6 — Debt of the Company’s 2014 Annual Report on Form 10-K. | ||||||||
Principal payments due during the next five years and thereafter are as follows: | ||||||||
Remaining 2015 | $ | 6,300 | ||||||
2016 | 8,400 | |||||||
2017 | 9,775 | |||||||
2018 | 11,150 | |||||||
2019 | 66,125 | |||||||
Thereafter | 824,050 | |||||||
Total principal payments | $ | 925,800 | ||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||
The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 28, 2015 and December 31, 2014, using market information and what management believes to be appropriate valuation methodologies: | ||||||||||||||||||||||||
March 28, 2015 | December 31, 2014 | |||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Asset (liability) | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||||
Cash and cash equivalents | $ | 77,621 | $ | 77,621 | $ | — | $ | 65,977 | $ | 65,977 | $ | — | ||||||||||||
Current maturities of long-term debt | (8,207 | ) | — | (8,400 | ) | (8,400 | ) | — | (8,400 | ) | ||||||||||||||
Fixed-rate long-term debt | (550,000 | ) | — | (471,625 | ) | (550,000 | ) | — | (453,063 | ) | ||||||||||||||
Variable-rate long-term debt | (366,675 | ) | — | (367,400 | ) | (386,416 | ) | — | (387,400 | ) | ||||||||||||||
The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: | ||||||||||||||||||||||||
Cash and cash equivalents — The carrying amount is equal to fair market value. | ||||||||||||||||||||||||
Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. |
LIABILITIES_FOR_DISPOSED_OPERA
LIABILITIES FOR DISPOSED OPERATIONS | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Environmental Remediation Obligations [Abstract] | ||||
Liabilities for Disposed Operations | Liabilities for Disposed Operations | |||
An analysis of the liabilities for disposed operations follows: | ||||
28-Mar-15 | ||||
Balance, beginning of period | $ | 156,729 | ||
Expenditures charged to liabilities | (1,013 | ) | ||
Increase to liabilities | 15 | |||
Balance, end of period | 155,731 | |||
Less: Current portion | (8,366 | ) | ||
Non-current portion | $ | 147,365 | ||
In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its disposed operations sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies or non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of March 28, 2015, the Company estimates this exposure could range up to approximately $64.1 million, although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several of the above sites and other applicable liabilities. Further, this estimate excludes reasonably possible liabilities which are not currently estimable primarily due to the factors discussed above. | ||||
Subject to the previous paragraph, the Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its disposed operations. However, no assurances are given they will be sufficient for the reasons described above, and additional liabilities could have a material adverse effect on the Company’s financial position, results of operations and cash flows. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||
Accumulated Other Comprehensive Loss was comprised of the following: | ||||||||
Three Months Ended | ||||||||
Unrecognized components of employee benefit plans, net of tax | 28-Mar-15 | 31-Mar-14 | ||||||
Balance, beginning of period | $ | (103,444 | ) | $ | (39,699 | ) | ||
Amounts reclassified from accumulated other comprehensive loss (a) | 2,308 | 830 | ||||||
Balance, end of period | $ | (101,136 | ) | $ | (38,869 | ) | ||
(a) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information. |
EARNINGS_PER_SHARE_OF_COMMON_S
EARNINGS PER SHARE OF COMMON STOCK | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock | |||||||
On June 27, 2014, 42,176,565 shares of our common stock were distributed to Rayonier shareholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Distribution presented in the calculation of weighted-average shares. Prior to separation, there were no dilutive shares since the Company had no outstanding equity awards. | ||||||||
The following table provides details of the calculations of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Net income | $ | 10,521 | $ | 30,947 | ||||
Shares used for determining basic earnings per share of common stock | 42,186,130 | 42,176,565 | ||||||
Dilutive effect of: | ||||||||
Stock options | 4,948 | — | ||||||
Performance and restricted shares | 13,696 | — | ||||||
Shares used for determining diluted earnings per share of common stock | 42,204,774 | 42,176,565 | ||||||
Basic earnings per share (not in thousands) | $ | 0.25 | $ | 0.73 | ||||
Diluted earnings per share (not in thousands) | $ | 0.25 | $ | 0.73 | ||||
Anti-dilutive shares excluded from the computation of diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Stock options | 384,112 | — | ||||||
Restricted stock | 351,995 | — | ||||||
Total | 736,107 | — | ||||||
OTHER_OPERATING_EXPENSE_NET
OTHER OPERATING EXPENSE, NET | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Operating Expense, Net | Other Operating Expense, Net | |||||||
Other operating expense, net was comprised of the following: | ||||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Loss on sale or disposal of property, plant and equipment | $ | 382 | $ | 532 | ||||
One-time separation and legal costs | — | 2,766 | ||||||
Miscellaneous expense (income) | 248 | (108 | ) | |||||
Total | $ | 630 | $ | 3,190 | ||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The provision for income taxes for periods prior to June 27, 2014, the date of the Separation from Rayonier, has been computed as if the Company were a stand-alone company. | |
The Company’s effective tax rate for the first quarter of 2015 was 28.2 percent compared with 28.6 percent for the corresponding period of 2014. For both periods, the effective tax rate differs from the federal statutory rate of 35.0 percent primarily due to the manufacturing tax deduction and state tax credits. |
INCENTIVE_STOCK_PLANS
INCENTIVE STOCK PLANS | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
Incentive Stock Plans | Incentive Stock Plans | |||||||||||||||||||||||||||
The Company’s total stock based compensation cost, including allocated amounts, for the three months ended March 28, 2015 and March 31, 2014 was $2.7 million and $1.7 million, respectively. | ||||||||||||||||||||||||||||
During the first quarter of 2015, performance shares granted in 2012 were cancelled as the Company did not meet the performance criteria for payout on these shares. The cancellation of these shares resulted in an excess tax deficit of $2.5 million. | ||||||||||||||||||||||||||||
The Company also made new grants of restricted and performance shares to certain employees during the first quarter of 2015. The 2015 restricted shares vest over three to four years. The 2015 performance share awards are measured against an internal return on invested capital target and, depending on performance against the target, the awards will payout between 0 and 200 percent of target. The total number of performance shares earned will be adjusted up or down 25 percent, for certain participants, based on stock price performance relative to a peer group over the term of the plan, which would result in a final payout range of 0 to 250 percent. | ||||||||||||||||||||||||||||
The following table summarizes the activity on the Company’s incentive stock awards as of March 28, 2015: | ||||||||||||||||||||||||||||
Stock Options | Restricted Stock | Performance Shares | Performance-Based Restricted Stock | |||||||||||||||||||||||||
Options | Weighted Average Exercise Price | Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
Outstanding at December 31, 2014 | 466,015 | $ | 31.73 | 145,085 | $ | 41.66 | 47,977 | $ | 42.27 | 143,369 | $ | 40.52 | ||||||||||||||||
Granted | — | — | 218,371 | 22.47 | 214,403 | 17.51 | — | — | ||||||||||||||||||||
Forfeited | (4,580 | ) | 38.31 | — | — | — | — | — | — | |||||||||||||||||||
Exercised or settled | (460 | ) | 17.34 | — | — | — | — | — | — | |||||||||||||||||||
Expired or cancelled | (2,403 | ) | 24.95 | — | — | (47,977 | ) | 42.27 | — | — | ||||||||||||||||||
Outstanding at March 28, 2015 | 458,572 | $ | 31.71 | 363,456 | $ | 30.13 | 214,403 | $ | 17.51 | 143,369 | $ | 40.52 | ||||||||||||||||
On March 23, 2015, the Company converted the $4.0 million fixed value retention award granted to the Chief Executive Officer in connection with the Company’s separation from Rayonier from a stock settled award to a cash settled award. As such, the award will have no dilutive effect on the Company’s stock. All other significant terms remain unchanged. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||
The Company has a qualified non-contributory defined benefit pension plan covering a significant majority of its employees and an unfunded plan that provides benefits in excess of amounts allowable in the qualified plans under current tax law. Both the qualified plan and the unfunded excess plan are closed to new participants. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. | ||||||||||||||||
The net pension and postretirement benefit costs that have been recorded are shown in the following tables: | ||||||||||||||||
Pension | Postretirement | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
Components of Net Periodic Benefit Cost | March 28, 2015 | March 31, 2014 | March 28, 2015 | March 31, 2014 | ||||||||||||
Service cost | $ | 1,494 | $ | 553 | $ | 205 | $ | 157 | ||||||||
Interest cost | 3,807 | 1,949 | 231 | 153 | ||||||||||||
Expected return on plan assets | (5,809 | ) | (3,314 | ) | — | — | ||||||||||
Amortization of prior service cost | 188 | 292 | 4 | 4 | ||||||||||||
Amortization of losses | 3,358 | 1,023 | 127 | 123 | ||||||||||||
Amortization of negative plan amendment | — | — | (70 | ) | (134 | ) | ||||||||||
Total net periodic benefit cost | $ | 3,038 | $ | 503 | $ | 497 | $ | 303 | ||||||||
The Company does not have any mandatory pension contribution requirements and does not expect to make any discretionary contributions in 2015. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
The Company is engaged in various legal actions, including certain proceedings, and has been named as a defendant in various other lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. These other lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
GUARANTEES
GUARANTEES | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Guarantees [Abstract] | ||||
Guarantees | Guarantees | |||
The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 28, 2015, the following financial guarantees were outstanding: | ||||
Financial Commitments | Maximum Potential Payment | |||
Standby letters of credit (a) | $ | 27,889 | ||
Surety bonds (b) | 55,652 | |||
Total financial commitments | $ | 83,541 | ||
(a) | The letters of credit primarily provide credit support for surety bonds issued to comply with financial assurance requirements relating to environmental remediation of disposed sites. The letters of credit will expire during 2015 and will be renewed as required. | |||
(b) | Rayonier Advanced Materials purchases surety bonds primarily to comply with financial assurance requirements relating to environmental remediation and post closure care and to provide collateral for the Company’s workers’ compensation program. These surety bonds expire at various dates during 2015 and 2019. They are expected to be renewed annually as required. |
BASIS_OF_PRESENTATION_AND_NEW_1
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (“Rayonier Advanced Materials” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. | |
On June 27, 2014, the Company was separated from its former parent, Rayonier Inc. (“Rayonier”) through the distribution to its stockholders of 42,176,565 shares of common stock (the “Separation”). For periods prior to the Separation, the financial information presented consists of the performance fibers segment of Rayonier and an allocable portion of its corporate costs (together, the “performance fibers business”). These financial statements have been presented as if the Company and performance fibers business had been combined for all prior periods presented. All intercompany transactions are eliminated. The statements of income for periods prior to June 27, 2014 include allocations of certain costs from Rayonier related to the operations of the Company. These corporate administrative costs were charged to the Company based on employee headcount and payroll costs. The combined statements of income also include expense allocations for certain corporate functions historically performed by Rayonier and not allocated to its operating segments. These allocations were based on revenues and specific identification of time and/or activities associated with the Company. Management believes the methodologies employed for the allocation of costs were reasonable in relation to the historical reporting of Rayonier, but may not necessarily be indicative of costs had the Company operated on a stand-alone basis during the periods prior to the Separation, nor what the costs may be in the future. The results of operations for periods prior to June 27, 2014 are not necessarily indicative or predictive of the results to be expected for the post-spin Company. | |
New or Recently Adopted Accounting Pronouncements | New or Recently Adopted Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. It is effective for fiscal years beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. | |
Fair Value Measurements | The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: |
Cash and cash equivalents — The carrying amount is equal to fair market value. | |
Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. |
INVENTORY_Tables
INVENTORY (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current | As of March 28, 2015 and December 31, 2014, the Company’s inventory included the following: | |||||||
March 28, 2015 | December 31, 2014 | |||||||
Finished goods | $ | 112,918 | $ | 120,221 | ||||
Work-in-progress | 3,428 | 2,418 | ||||||
Raw materials | 13,150 | 14,670 | ||||||
Manufacturing and maintenance supplies | 2,441 | 2,900 | ||||||
Total inventory | $ | 131,937 | $ | 140,209 | ||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt Instruments | The Company’s debt consisted of the following: | |||||||
28-Mar-15 | 31-Dec-14 | |||||||
Term A-1 Loan Facility borrowings maturing through 2019 at a variable interest rate of 1.67% (a) | $ | 87,736 | $ | 106,973 | ||||
Term A-2 Loan Facility borrowings maturing through 2021 at a variable interest rate of 1.25% (b) | 287,146 | 287,843 | ||||||
Senior Notes due 2024 at a fixed interest rate of 5.50% | 550,000 | 550,000 | ||||||
Total debt | 924,882 | 944,816 | ||||||
Less: Current maturities of long-term debt | (8,207 | ) | (8,400 | ) | ||||
Long-term debt | $ | 916,675 | $ | 936,416 | ||||
(a) | The Term A-1 Loan includes an unamortized issue discount of approximately $0.2 million at March 28, 2015. Upon maturity the liability will be $88.0 million. | |||||||
(b) | The Term A-2 Loan includes an unamortized issue discount of approximately $0.7 million at March 28, 2015. Upon maturity the liability will be $287.8 million. | |||||||
Schedule of Maturities of Long-term Debt | Principal payments due during the next five years and thereafter are as follows: | |||||||
Remaining 2015 | $ | 6,300 | ||||||
2016 | 8,400 | |||||||
2017 | 9,775 | |||||||
2018 | 11,150 | |||||||
2019 | 66,125 | |||||||
Thereafter | 824,050 | |||||||
Total principal payments | $ | 925,800 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 28, 2015 and December 31, 2014, using market information and what management believes to be appropriate valuation methodologies: | |||||||||||||||||||||||
March 28, 2015 | December 31, 2014 | |||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Asset (liability) | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||||
Cash and cash equivalents | $ | 77,621 | $ | 77,621 | $ | — | $ | 65,977 | $ | 65,977 | $ | — | ||||||||||||
Current maturities of long-term debt | (8,207 | ) | — | (8,400 | ) | (8,400 | ) | — | (8,400 | ) | ||||||||||||||
Fixed-rate long-term debt | (550,000 | ) | — | (471,625 | ) | (550,000 | ) | — | (453,063 | ) | ||||||||||||||
Variable-rate long-term debt | (366,675 | ) | — | (367,400 | ) | (386,416 | ) | — | (387,400 | ) | ||||||||||||||
LIABILITIES_FOR_DISPOSITIONS_A
LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Environmental Remediation Obligations [Abstract] | ||||
Schedule of Change in Environmental Loss Contingencies | An analysis of the liabilities for disposed operations follows: | |||
28-Mar-15 | ||||
Balance, beginning of period | $ | 156,729 | ||
Expenditures charged to liabilities | (1,013 | ) | ||
Increase to liabilities | 15 | |||
Balance, end of period | 155,731 | |||
Less: Current portion | (8,366 | ) | ||
Non-current portion | $ | 147,365 | ||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss was comprised of the following: | |||||||
Three Months Ended | ||||||||
Unrecognized components of employee benefit plans, net of tax | 28-Mar-15 | 31-Mar-14 | ||||||
Balance, beginning of period | $ | (103,444 | ) | $ | (39,699 | ) | ||
Amounts reclassified from accumulated other comprehensive loss (a) | 2,308 | 830 | ||||||
Balance, end of period | $ | (101,136 | ) | $ | (38,869 | ) | ||
(a) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information. |
EARNINGS_PER_SHARE_OF_COMMON_S1
EARNINGS PER SHARE OF COMMON STOCK (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per share: | |||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Net income | $ | 10,521 | $ | 30,947 | ||||
Shares used for determining basic earnings per share of common stock | 42,186,130 | 42,176,565 | ||||||
Dilutive effect of: | ||||||||
Stock options | 4,948 | — | ||||||
Performance and restricted shares | 13,696 | — | ||||||
Shares used for determining diluted earnings per share of common stock | 42,204,774 | 42,176,565 | ||||||
Basic earnings per share (not in thousands) | $ | 0.25 | $ | 0.73 | ||||
Diluted earnings per share (not in thousands) | $ | 0.25 | $ | 0.73 | ||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive shares excluded from the computation of diluted earnings per share: | |||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Stock options | 384,112 | — | ||||||
Restricted stock | 351,995 | — | ||||||
Total | 736,107 | — | ||||||
OTHER_OPERATING_EXPENSE_NET_Ta
OTHER OPERATING EXPENSE, NET (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Other Operating Expense, Net | Other operating expense, net was comprised of the following: | |||||||
Three Months Ended | ||||||||
March 28, 2015 | March 31, 2014 | |||||||
Loss on sale or disposal of property, plant and equipment | $ | 382 | $ | 532 | ||||
One-time separation and legal costs | — | 2,766 | ||||||
Miscellaneous expense (income) | 248 | (108 | ) | |||||
Total | $ | 630 | $ | 3,190 | ||||
INCENTIVE_STOCK_PLANS_Tables
INCENTIVE STOCK PLANS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||
Schedule of Outstanding Awards | The following table summarizes the activity on the Company’s incentive stock awards as of March 28, 2015: | |||||||||||||||||||||||||||
Stock Options | Restricted Stock | Performance Shares | Performance-Based Restricted Stock | |||||||||||||||||||||||||
Options | Weighted Average Exercise Price | Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
Outstanding at December 31, 2014 | 466,015 | $ | 31.73 | 145,085 | $ | 41.66 | 47,977 | $ | 42.27 | 143,369 | $ | 40.52 | ||||||||||||||||
Granted | — | — | 218,371 | 22.47 | 214,403 | 17.51 | — | — | ||||||||||||||||||||
Forfeited | (4,580 | ) | 38.31 | — | — | — | — | — | — | |||||||||||||||||||
Exercised or settled | (460 | ) | 17.34 | — | — | — | — | — | — | |||||||||||||||||||
Expired or cancelled | (2,403 | ) | 24.95 | — | — | (47,977 | ) | 42.27 | — | — | ||||||||||||||||||
Outstanding at March 28, 2015 | 458,572 | $ | 31.71 | 363,456 | $ | 30.13 | 214,403 | $ | 17.51 | 143,369 | $ | 40.52 | ||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||||
Schedule of Net Benefit Costs | The net pension and postretirement benefit costs that have been recorded are shown in the following tables: | |||||||||||||||
Pension | Postretirement | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
Components of Net Periodic Benefit Cost | March 28, 2015 | March 31, 2014 | March 28, 2015 | March 31, 2014 | ||||||||||||
Service cost | $ | 1,494 | $ | 553 | $ | 205 | $ | 157 | ||||||||
Interest cost | 3,807 | 1,949 | 231 | 153 | ||||||||||||
Expected return on plan assets | (5,809 | ) | (3,314 | ) | — | — | ||||||||||
Amortization of prior service cost | 188 | 292 | 4 | 4 | ||||||||||||
Amortization of losses | 3,358 | 1,023 | 127 | 123 | ||||||||||||
Amortization of negative plan amendment | — | — | (70 | ) | (134 | ) | ||||||||||
Total net periodic benefit cost | $ | 3,038 | $ | 503 | $ | 497 | $ | 303 | ||||||||
GUARANTEES_Tables
GUARANTEES (Tables) | 3 Months Ended | |||
Mar. 28, 2015 | ||||
Guarantees [Abstract] | ||||
Schedule of Guarantor Obligations | The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 28, 2015, the following financial guarantees were outstanding: | |||
Financial Commitments | Maximum Potential Payment | |||
Standby letters of credit (a) | $ | 27,889 | ||
Surety bonds (b) | 55,652 | |||
Total financial commitments | $ | 83,541 | ||
(a) | The letters of credit primarily provide credit support for surety bonds issued to comply with financial assurance requirements relating to environmental remediation of disposed sites. The letters of credit will expire during 2015 and will be renewed as required. | |||
(b) | Rayonier Advanced Materials purchases surety bonds primarily to comply with financial assurance requirements relating to environmental remediation and post closure care and to provide collateral for the Company’s workers’ compensation program. These surety bonds expire at various dates during 2015 and 2019. They are expected to be renewed annually as required. |
BASIS_OF_PRESENTATION_AND_NEW_2
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS Basis of Presentation and Accounting Pronouncements (Details) | 0 Months Ended |
Jun. 27, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Issuance of common stock at the separation (in shares) | 42,176,565 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $112,918 | $120,221 |
Work-in-progress | 3,428 | 2,418 |
Raw materials | 13,150 | 14,670 |
Manufacturing and maintenance supplies | 2,441 | 2,900 |
Total inventory | $131,937 | $140,209 |
DEBT_Summary_of_Debt_Details
DEBT - Summary of Debt (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Total debt | $924,882,000 | $944,816,000 | ||
Current maturities of long-term debt | -8,207,000 | -8,400,000 | ||
Long-term debt | 916,675,000 | 936,416,000 | ||
Line of Credit [Member] | Term A-1 Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.67% | [1] | ||
Total debt | 87,736,000 | [1] | 106,973,000 | [1] |
Discount | 200,000 | |||
Face Amount | 88,000,000 | |||
Line of Credit [Member] | Term A-2 Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.25% | [2] | ||
Total debt | 287,146,000 | [2] | 287,843,000 | [2] |
Discount | 700,000 | |||
Face Amount | 287,800,000 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.50% | |||
Total debt | $550,000,000 | $550,000,000 | ||
[1] | The Term A-1 Loan includes an unamortized issue discount of approximately $0.2 million at March 28, 2015. Upon maturity the liability will be $88.0 million. | |||
[2] | The Term A-2 Loan includes an unamortized issue discount of approximately $0.7 million at March 28, 2015. Upon maturity the liability will be $287.8 million. |
DEBT_Narrative_Details
DEBT - Narrative (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ||
Principal debt repayments | ($20,000) | $0 |
DEBT_Schedule_of_Maturities_of
DEBT - Schedule of Maturities of Long-term Debt (Details) (USD $) | Mar. 28, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Remaining 2015 | $6,300 |
2016 | 8,400 |
2017 | 9,775 |
2018 | 11,150 |
2019 | 66,125 |
Thereafter | 824,050 |
Total principal payments | $925,800 |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS - Fair Values Measured on Recurring Basis (Details) (USD $) | Mar. 28, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Amount, Cash and cash equivalents | $77,621 | $65,977 | $0 | $0 |
Carrying Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying Amount, Cash and cash equivalents | 77,621 | 65,977 | ||
Current maturities of long-term debt | -8,207 | -8,400 | ||
Fixed-rate long-term debt | -550,000 | -550,000 | ||
Variable-rate long-term debt | -366,675 | -386,416 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Cash and cash equivalents | 77,621 | 65,977 | ||
Current maturities of long-term debt | 0 | 0 | ||
Fixed-rate long-term debt | 0 | 0 | ||
Variable-rate long-term debt | 0 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Cash and cash equivalents | 0 | 0 | ||
Current maturities of long-term debt | -8,400 | -8,400 | ||
Fixed-rate long-term debt | -471,625 | -453,063 | ||
Variable-rate long-term debt | ($367,400) | ($387,400) |
LIABILITIES_FOR_DISPOSED_OPERA1
LIABILITIES FOR DISPOSED OPERATIONS - Analysis of Activity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 31, 2014 |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance, beginning of period | $156,729 | |
Expenditures charged to liabilities | -1,013 | |
Increase to liabilities | 15 | |
Balance, end of period | 155,731 | |
Less: Current portion | -8,366 | -7,241 |
Non-current portion | $147,365 | $149,488 |
LIABILITIES_FOR_DISPOSED_OPERA2
LIABILITIES FOR DISPOSED OPERATIONS - Narrative (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 28, 2015 |
Environmental Remediation Obligations [Abstract] | |
Loss exposure in excess of accrual, high estimate | $64.10 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | ($103,444) | ||||
Ending balance | -101,136 | -103,444 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | -103,444 | -39,699 | |||
Amounts reclassified from accumulated other comprehensive loss | 2,308 | [1] | 830 | [1] | |
Ending balance | ($101,136) | ($38,869) | |||
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information. |
EARNINGS_PER_SHARE_OF_COMMON_S2
EARNINGS PER SHARE OF COMMON STOCK - Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 27, 2014 | Mar. 28, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | |||
Issuance of common stock at the separation (in shares) | 42,176,565 | ||
Net Income | $10,521 | $30,947 | |
Shares used for determining basic earnings per share of common stock | 42,186,130 | 42,176,565 | |
Dilutive effect of: | |||
Stock options | 4,948 | 0 | |
Performance and restricted shares | 13,696 | 0 | |
Shares used for determining diluted earnings per share of common stock | 42,204,774 | 42,176,565 | |
Basic earnings per share (in dollars per share) | $0.25 | $0.73 | |
Diluted earnings per share (in dollars per share) | $0.25 | $0.73 |
EARNINGS_PER_SHARE_OF_COMMON_S3
EARNINGS PER SHARE OF COMMON STOCK - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 736,107 | 0 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 384,112 | 0 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 351,995 | 0 |
OTHER_OPERATING_EXPENSE_NET_De
OTHER OPERATING EXPENSE, NET (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Loss on sale or disposal of property, plant and equipment | $382 | $532 |
One-time separation and legal costs | 0 | 2,766 |
Miscellaneous expense (income) | 248 | -108 |
Total | $630 | $3,190 |
INCOME_TAXES_Details
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective rate | 28.20% | 28.60% |
Federal statutory rate | 35.00% | 35.00% |
INCENTIVE_STOCK_PLANS_Narrativ
INCENTIVE STOCK PLANS - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 28, 2015 | Mar. 31, 2014 | Mar. 23, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based incentive compensation expense | $2,669,000 | $1,686,000 | |
Excess tax deficit | 2,500,000 | ||
TSR Adjustment for Performance Shares Payout | 25.00% | ||
Cash conversion of fixed stock award issued at separation | $4,000,000 | ||
Minimum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 3 years | ||
Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 4 years | ||
Performance Share Awards 2015 [Member] | Minimum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout percentage | 0.00% | ||
Share-based Compensation Arrangements by Share-based Payment Award, Conversion Ratio, Percent of Target with TSR Adjustment | 0.00% | ||
Performance Share Awards 2015 [Member] | Maximum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout percentage | 200.00% | ||
Share-based Compensation Arrangements by Share-based Payment Award, Conversion Ratio, Percent of Target with TSR Adjustment | 250.00% |
INCENTIVE_STOCK_PLANS_Schedule
INCENTIVE STOCK PLANS - Schedule of Outstanding Awards (Details) (USD $) | 3 Months Ended |
Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance, Stock Options, Outstanding | 466,015 |
Stock Options, Granted | 0 |
Stock Options, Forfeited | -4,580 |
Stock Options, Exercised or settled | -460 |
Stock Options, Expired or cancelled | -2,403 |
Ending Balance, Stock Options, Outstanding | 458,572 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, Stock Options, Weighted Average Exercise Price | $31.73 |
Stock Options, Granted, Weighted Average Exercise Price | $0 |
Stock Options, Forfeited, Weighted Average Exercise Price | $38.31 |
Stock Options, Exercised or settled, Weighted Average Exercise Price | $17.34 |
Stock Options, Expired or cancelled, Weighted Average Exercise Price | $24.95 |
Ending Balance, Stock Options, Weighted Average Exercise Price | $31.71 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning Balance, Awards, Outstanding, Number | 145,085 |
Awards, Granted, Number | 218,371 |
Awards, Forfeited, Number | 0 |
Awards, Exercised or settled, Number | 0 |
Awards, Expired or cancelled, Number | 0 |
Ending Balance, Awards, Outstanding, Number | 363,456 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value | $41.66 |
Awards, Granted, Weighted Average Grant Date Fair Value | $22.47 |
Awards, Forfeited, Weighted Average Grant Date Fair Value | $0 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value | $0 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value | $0 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value | $30.13 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning Balance, Awards, Outstanding, Number | 47,977 |
Awards, Granted, Number | 214,403 |
Awards, Forfeited, Number | 0 |
Awards, Exercised or settled, Number | 0 |
Awards, Expired or cancelled, Number | -47,977 |
Ending Balance, Awards, Outstanding, Number | 214,403 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value | $42.27 |
Awards, Granted, Weighted Average Grant Date Fair Value | $17.51 |
Awards, Forfeited, Weighted Average Grant Date Fair Value | $0 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value | $0 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value | $42.27 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value | $17.51 |
Performance-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning Balance, Awards, Outstanding, Number | 143,369 |
Awards, Granted, Number | 0 |
Awards, Forfeited, Number | 0 |
Awards, Exercised or settled, Number | 0 |
Awards, Expired or cancelled, Number | 0 |
Ending Balance, Awards, Outstanding, Number | 143,369 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value | $40.52 |
Awards, Granted, Weighted Average Grant Date Fair Value | $0 |
Awards, Forfeited, Weighted Average Grant Date Fair Value | $0 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value | $0 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value | $0 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value | $40.52 |
Performance Share Awards 2015 [Member] | Maximum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangements by Share-based Payment Award, Conversion Ratio, Percent of Target with TSR Adjustment | 250.00% |
EMPLOYEE_BENEFIT_PLANS_Net_Per
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 31, 2014 |
Pension [Member] | ||
Components of Net Periodic Benefit Cost | ||
Service cost | $1,494 | $553 |
Interest cost | 3,807 | 1,949 |
Expected return on plan assets | -5,809 | -3,314 |
Amortization of prior service cost | 188 | 292 |
Amortization of losses | 3,358 | 1,023 |
Amortization of negative plan amendment | 0 | 0 |
Total net periodic benefit cost | 3,038 | 503 |
Postretirement [Member] | ||
Components of Net Periodic Benefit Cost | ||
Service cost | 205 | 157 |
Interest cost | 231 | 153 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 4 | 4 |
Amortization of losses | 127 | 123 |
Amortization of negative plan amendment | -70 | -134 |
Total net periodic benefit cost | $497 | $303 |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | Mar. 28, 2015 | |
In Thousands, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $83,541 | |
Standby letters of credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 27,889 | [1] |
Surety bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $55,652 | [2] |
[1] | The letters of credit primarily provide credit support for surety bonds issued to comply with financial assurance requirements relating to environmental remediation of disposed sites. The letters of credit will expire during 2015 and will be renewed as required. | |
[2] | Rayonier Advanced Materials purchases surety bonds primarily to comply with financial assurance requirements relating to environmental remediation and post closure care and to provide collateral for the Company’s workers’ compensation program. These surety bonds expire at various dates during 2015 and 2019. They are expected to be renewed annually as required. |