Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 27, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RAYONIER ADVANCED MATERIALS INC. | ||
Trading Symbol | RYAM | ||
Entity Central Index Key | 1,597,672 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 42,870,120 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 689,008,651 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Sales | $ 941,384 | $ 957,689 | $ 1,046,603 |
Cost of Sales | 738,930 | 733,942 | 714,038 |
Gross Margin | 202,454 | 223,747 | 332,565 |
Selling, general and administrative expenses | 47,662 | 39,969 | 35,778 |
Other operating expense, net | 35,269 | 120,823 | 8,164 |
Operating Income | 119,523 | 62,955 | 288,623 |
Interest expense | 36,869 | 22,378 | 0 |
Interest and miscellaneous expense (income), net | (210) | 106 | (292) |
Income Before Income Taxes | 82,864 | 40,471 | 288,915 |
Income tax expense | 27,607 | 8,816 | 69,148 |
Net Income | $ 55,257 | $ 31,655 | $ 219,767 |
Earnings Per Share of Common Stock | |||
Basic earnings per share (in dollars per share) | $ 1.31 | $ 0.75 | $ 5.21 |
Diluted earnings per share (in dollars per share) | 1.30 | 0.75 | 5.21 |
Dividends Declared Per Share (in dollars per share) | $ 0.28 | $ 0.14 | $ 0 |
Comprehensive Income: | |||
Net Income | $ 55,257 | $ 31,655 | $ 219,767 |
Other Comprehensive Income (Loss) | |||
Net (loss) gain from pension and postretirement plans, net of income tax benefit (expense) of $3,313, $15,944 and ($14,353) | (6,176) | (28,326) | 24,971 |
Total other comprehensive income (loss) | (6,176) | (28,326) | 24,971 |
Comprehensive Income | $ 49,081 | $ 3,329 | $ 244,738 |
Consolidated Statements of Inc3
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) gain from pension and postretirement plans, income tax benefit (expense) | $ 3,313 | $ 15,944 | $ (14,353) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 101,303 | $ 65,977 |
Accounts receivable, less allowance for doubtful accounts of $151 and $151 | 68,892 | 69,263 |
Inventory | 125,409 | 140,209 |
Prepaid and other current assets | 32,437 | 36,267 |
Total current assets | 328,041 | 311,716 |
Property, Plant and Equipment, Net | 803,838 | 843,375 |
Deferred Tax Assets | 97,420 | 86,822 |
Other Assets | 59,178 | 61,967 |
Total Assets | 1,288,477 | 1,303,880 |
Current Liabilities | ||
Accounts payable | 44,992 | 64,697 |
Accrued customer incentives and prepayments | 34,685 | 12,743 |
Accrued payroll and benefits | 20,743 | 23,124 |
Current maturities of long-term debt | 8,226 | 8,400 |
Other current liabilities | 11,052 | 15,240 |
Current liabilities for disposed operations | 12,034 | 7,241 |
Total current liabilities | 131,732 | 131,445 |
Long-Term Debt | 859,693 | 936,416 |
Non-Current Liabilities for Disposed Operations | 145,350 | 149,488 |
Pension and Other Postretirement Benefits | 162,084 | 141,338 |
Other Non-Current Liabilities | $ 6,757 | $ 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 2015 and 2014 | $ 0 | $ 0 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 42,872,435 and 42,616,319 issued and outstanding, as of 2015 and 2014, respectively | 429 | 426 |
Additional paid-in capital | 70,213 | 62,082 |
Accumulated earnings (deficit) | 21,839 | (21,476) |
Accumulated other comprehensive loss | (109,620) | (103,444) |
Total Stockholders’ Deficit | (17,139) | (62,412) |
Total Liabilities and Stockholders’ Deficit | $ 1,288,477 | $ 1,303,880 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 151 | $ 151 |
Common shares, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares issued (shares) | 42,872,435 | 42,616,319 |
Common shares, shares outstanding (shares) | 42,872,435 | 42,616,319 |
Preferred shares, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares issued (shares) | 0 | 0 |
Preferred shares, shares outstanding (shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 55,257 | $ 31,655 | $ 219,767 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 89,189 | 85,607 | 74,386 |
Stock-based incentive compensation expense | 9,992 | 8,738 | 6,230 |
Amortization of capitalized debt costs | 2,116 | 1,007 | 0 |
Deferred income taxes | (9,757) | (33,672) | (31,161) |
Increase in liabilities for disposed operations | 6,930 | 88,548 | 0 |
Impairment charges | 28,462 | 7,184 | 0 |
Amortization of losses and prior service costs from pension and postretirement plans | 14,702 | 9,113 | 8,398 |
Loss from sale/disposal of property, plant and equipment | 1,364 | 2,123 | 2,390 |
Other | 398 | (177) | (636) |
Changes in operating assets and liabilities: | |||
Receivables | 696 | 1,710 | 6,380 |
Inventories | 14,800 | (11,503) | (11,715) |
Accounts payable | (19,789) | (4,365) | (2,763) |
Accrued liabilities | 15,466 | 12,877 | (1,077) |
All other operating activities | (1,893) | (5,434) | (12,161) |
Expenditures for disposed operations | (6,275) | (5,659) | 0 |
Cash Provided by Operating Activities | 201,658 | 187,752 | 258,038 |
Investing Activities | |||
Capital expenditures | (77,424) | (74,791) | (96,008) |
Purchase of timber deeds | 0 | (12,692) | 0 |
Purchase of land | 0 | (1,528) | 0 |
Jesup plant cellulose specialties expansion | 0 | 0 | (141,143) |
Other | 0 | (1,450) | (13,516) |
Cash Used for Investing Activities | (77,424) | (90,461) | (250,667) |
Financing Activities | |||
Issuance of debt | 0 | 1,025,000 | 0 |
Repayment of debt | (77,100) | (79,200) | 0 |
Dividends paid | (11,816) | (5,926) | 0 |
Proceeds from the issuance of common stock | 8 | 649 | 0 |
Excess tax benefits on stock-based compensation | 0 | 266 | 0 |
Debt issuance costs | 0 | (15,432) | 0 |
Common stock repurchased | 0 | (92) | 0 |
Net payments to Rayonier | 0 | (956,579) | (7,371) |
Cash Used for Financing Activities | (88,908) | (31,314) | (7,371) |
Cash and Cash Equivalents | |||
Change in cash and cash equivalents | 35,326 | 65,977 | 0 |
Balance, beginning of year | 65,977 | 0 | 0 |
Balance, end of year | 101,303 | 65,977 | 0 |
Cash paid during the period: | |||
Interest | 38,189 | 19,567 | 0 |
Income taxes | 31,667 | 34,588 | 0 |
Non-cash investing and financing activities: | |||
Capital assets purchased on account | $ 16,720 | $ 16,637 | $ 14,106 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 On June 27, 2014, Rayonier Advanced Materials Inc. (“Rayonier Advanced Materials” or the “Company”) separated (the “Separation”) from its former parent, Rayonier Inc. (“Rayonier”) through the distribution to its stockholders of 42,176,565 shares of common stock (the “Distribution”). Prior to the Separation, the Company’s results of operations, financial position and cash flows consisted of the performance fibers segment of Rayonier and an allocable portion of its corporate costs (together, “Rayonier’s performance fibers business” or the “performance fibers business”). These financial statements have been presented as if the performance fibers business had been combined for all periods presented. All intercompany transactions are eliminated. Historically, financial statements had not been prepared for the performance fibers business; the accompanying financial statements for the Company have been derived from the historical accounting records of Rayonier. The statements of income for periods prior to the Separation 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, for prior periods, 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 Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2015 , consists entirely of the consolidated results of Rayonier Advanced Materials. The Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2014 consist of the consolidated results of Rayonier Advanced Materials for the six months ended December 31, 2014 and the combined results of the performance fibers business for the six months ended June 27, 2014 . The Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2013 , consists entirely of the combined results of the performance fibers business. The Company’s Consolidated Balance Sheets as of December 31, 2015 and 2014 consist of the consolidated balances of Rayonier Advanced Materials. Nature of Business Operations Rayonier Advanced Materials is a leading manufacturer of high-value cellulose specialties products and commodity products with production facilities in Jesup, Georgia and Fernandina Beach, Florida. These products are sold throughout the world to companies for use in various industrial applications and to produce a wide variety of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company’s primary products consist of the following: Cellulose specialties Cellulose specialties are natural polymers, used as raw materials to manufacture a broad range of consumer-oriented products such as cigarette filters, liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints and lacquers. Cellulose specialties are primarily used in dissolving chemical applications that require a highly purified form of cellulose. The Company concentrates on producing the purest, most technologically-demanding forms of cellulose specialties products, such as cellulose acetate and high-purity cellulose ethers, and is a leading supplier of these products. A majority of the Company’s cellulose specialties products are under long-term volume contracts that expire between 2016 and 2019. The pricing provisions of these contracts are typically set in the fourth quarter in the year prior to the shipment. Commodity products Commodity products are used for viscose and absorbent materials applications. Commodity viscose is a raw material required for the manufacture of viscose staple fibers which are used in woven applications such as textiles for clothing and other fabrics, and in non-woven applications such as baby wipes, cosmetic and personal wipes, industrial wipes and mattress ticking. Absorbent materials, typically referred to as fluff fibers, are used as an absorbent medium in products such as disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes and non-woven fabrics. Pricing for commodity products is typically referenced to published indexes or based on publicly available spot market prices. Principles of Consolidation The consolidated financial statements include Rayonier Advanced Materials, as well as the Company’s wholly owned subsidiaries. All intercompany balances and transactions are eliminated. Fiscal Year Prior to the Separation, the Company’s quarter and fiscal year ends were the last day of the calendar quarter and calendar year, respectively. In connection with the Separation, the Company changed its interim reporting periods to the last Saturday of the fiscal quarter. The Company’s fiscal year end is the last day of the calendar year. As the effect on prior interim period results was not material, prior periods have not been revised. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in estimating and therefore actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company's allowance is established based on historical patterns of accounts receivable collections and general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of the Company’s receivables or a customer’s financial condition. Write-offs are recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. Inventory Finished goods, work-in-process and raw materials inventories are valued at the lower of cost, as determined on the first-in, first-out basis, or market. Manufacturing and maintenance supplies are valued at average cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow-moving inventories is reviewed periodically. Property, Plant, Equipment and Depreciation Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. Production related plant and equipment are depreciated using the units-of-production method. The total units of production used to calculate depreciation expense is determined by factoring annual production days, based on normal production conditions, by the economic useful life of the asset involved. The Company depreciates its non-production assets, including office, lab and transportation equipment, using the straight-line depreciation method over 3 to 25 years. Buildings and land improvements are depreciated using the straight-line method over 15 to 35 years and 5 to 30 years, respectively. Depreciation expense reflected in cost of sales in the Consolidated Statements of Income was $87.5 million , $84.6 million and $73.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Gains and losses on the retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets that are held and used is measured by net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flow model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Capitalized Interest Interest from external borrowings is capitalized on major projects with an expected construction period of one year or longer. The interest costs are added to the cost of the underlying basis of the property, plant and equipment and amortized over the useful life of the assets. During 2015 , 2014 and 2013 , interest capitalized to property, plant and equipment was $1.3 million , $0.1 million and $6.1 million , respectively. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy that prioritizes the inputs used to measure fair value was established as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Revenue Recognition The Company generally recognizes sales when persuasive evidence of an agreement exists, delivery of products has occurred, the sales price to the buyer is fixed and determinable and collectibility is reasonably assured. Generally, title passes upon delivery to the agreed upon location. Based on the time required to reach each location, customer orders are generally received in one period with the corresponding revenue recognized in a subsequent period. As such, there could be substantial variation in orders received and revenue recognized from period to period. Customer incentives are recorded as a reduction of gross sales within the same period that revenue from the sale is recognized. Payments from customers made in advance of the recognition of revenue are included in accrued customer incentives and prepayments. Shipping and Handling Costs Shipping and handling costs, such as freight to the customers’ destinations, are included in cost of goods sold in the Consolidated Statements of Income. Environmental Costs The Company has established liabilities to assess, remediate, maintain and monitor sites related to disposed operations from which no current or future benefit is discernible. These obligations are established based on projected spending over the next 20 years and require significant estimates to determine the proper amount at any point in time. The projected period, from 2016 through 2035 , reflects the time during which potential future costs are both estimable and probable. As new information becomes available, these cost estimates are updated and the recorded liabilities are adjusted appropriately. Environmental liabilities are accounted for on an undiscounted basis and are reflected in current and non-current “Liabilities for disposed operations” in the Consolidated Balance Sheets. Employee Benefit Plans The determination of expense and funding requirements for the Company’s defined benefit pension plan, unfunded excess pension plan and postretirement health care and life insurance plans are largely based on a number of actuarial assumptions. The key assumptions include discount rate, return on assets, salary increases, health care cost trends, mortality rates, longevity and service lives of employees. Periodic pension and other postretirement expense is included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Income. At December 31, 2015 and 2014 , the pension plans were in a net liability position. The estimated amount to be paid in the next 12 months is recorded in “Accrued payroll and benefits” on the Consolidated Balance Sheets, with the remainder recorded as a long-term liability in “Pension and other postretirement benefits.” Changes in the funded status of the Company’s plans are recorded through comprehensive income in the year in which the changes occur. Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in Stockholders’ (deficit) equity (net of taxes). If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the average future service period of employees. Income Taxes For periods prior to the Separation, the Company was a subsidiary of Rayonier and, for purposes of U.S. federal and state income taxes, was not directly subject to income taxes but was included in the income tax return of Rayonier TRS Holdings Inc., a wholly owned subsidiary of Rayonier. In the accompanying Consolidated Financial Statements for periods prior to the Separation, the Company’s provision for income taxes has been determined on a separate return basis which takes into account the impact of the Alternative Fuel Mixture Credit (“AFMC”) and subsequent exchanges for the Cellulosic Biofuel Producer Credit (“CBPC”). The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not such deferred tax assets will not be realized. The Company’s income tax returns are subject to audit by U.S. federal and state taxing authorities. In evaluating the tax benefits associated with various tax filing positions, the Company records a tax benefit for an uncertain tax position if it is more-likely-than-not to be realized upon ultimate settlement of the issue. The Company records a liability for an uncertain tax position that does not meet this criterion. The Company adjusts its liabilities for unrecognized tax benefits in the period in which it is determined the issue is settled with the taxing authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new facts or information becomes available. Liabilities for unrecognized tax benefits are included in “Other non-current liabilities” in the Company’s Consolidated Balance Sheets. New or Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Presentation of Deferred Taxes . The update requires deferred tax assets and liabilities to be classified as noncurrent in the classified statement of financial position. It is effective for annual periods beginning after December 15, 2017 with early adoption permitted. The Company has elected early adoption as of December 31, 2015 and has applied this update retrospectively to all periods presented in this Form 10-K. Early adoption was elected as the amendments in this ASU simplify both the cost and complexity of income tax asset and liability reporting. The effect of this accounting change on the Consolidated Balance Sheet as of December 31, 2014 was a reclassification to noncurrent assets of $8.3 million in deferred tax assets previously classified as current assets. The change had no impact on net income, equity or earnings per share. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory . The update requires inventory to be measured at the lower of cost and net realizable value. It is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The update is not expected to have a material impact on the Company’s financial statements as current inventory valuation practices already approximate the lower of cost or net realizable value. In April 2015, the FASB issued 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 effect of this accounting change on prior periods is expected to be a reclassification to “Long-term debt” of debt issuance costs currently capitalized in “Other assets.” As of December 31, 2015 , approximately $11.2 million and $0.3 million in debt issuance costs are capitalized in “Other assets” and “Prepaid and other current assets,” respectively. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard. This standard will supersede virtually all current revenue recognition guidance. The core principle is that a company will recognize revenue when it transfers goods or services to customers for an amount that reflects consideration to which the company expects to be entitled to in exchange for those goods or services. This standard will be effective for the Company’s first quarter 2018 Form 10-Q filing with full or modified retrospective 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 February 26, 2016 , the date these financial statements were available to be issued. Two subsequent events warranting disclosure were identified. Between December 31, 2015 and the date of this filing, the Company purchased in the open market approximately $18.6 million of its $550 million , 5.50 percent senior notes due 2024 (the “Senior Notes”) and retired them for $13.7 million plus accrued and unpaid interest. In connection with the retirement of these Senior Notes, the Company will record a gain in other income of approximately $4.6 million , which includes the write-off of $0.3 million of unamortized debt issuance costs in the first quarter of 2016. The gain will be subject to U.S. federal and state income tax of approximately $1.7 million . On February 26, 2016, the Company declared a first quarter 2016 cash dividend of $0.07 per share of common stock. The dividend is payable on March 31, 2016 to stockholders of record on March 17, 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As discussed in Note 1 — Basis of Presentation and New Accounting Pronouncements , for periods prior to the Separation, the Consolidated Statements of Income include expense allocations for certain corporate functions historically performed by Rayonier and not allocated to its operating segments, including general corporate expenses related to executive oversight, accounting, treasury, tax, legal, human resources and information technology. Net charges from Rayonier for these services, reflected in selling, general and administrative expenses in the Consolidated Statements of Income were $8.0 million and $16.6 million for the years ended December 31, 2014 and 2013 , respectively. There were no comparable charges for the year ended December 31, 2015 . For periods prior to the Separation, the Consolidated Statements of Income also include allocations of certain costs from Rayonier related to the operations of the Company including: medical costs for active salaried and retired employees, workers’ compensation, general liability and property insurance, salaried payroll costs, equity based compensation and a pro-rata share of direct corporate administration expense for accounting, human resource services and information system maintenance. Net charges from Rayonier for these costs, reflected in the Consolidated Statements of Income were $27.3 million and $51.1 million for the years ended December 31, 2014 and 2013 , respectively. There were no comparable charges for the year ended December 31, 2015 . |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company operates as a single segment business with two major product lines: cellulose specialties and commodity products. All sales originate from production facilities in the United States, including the Jesup, Georgia plant, the Fernandina Beach, Florida plant and the five chip facilities. Almost all of the Company’s assets are located in the United States. Assets related to its three foreign sales offices, located in London, Tokyo and Shanghai, are not significant. Sales by the two major product lines was comprised of the following for the three years ended December 31 : Sales by Product Line 2015 2014 2013 Cellulose specialties $ 766,940 $ 843,473 $ 929,931 Commodity products and other 174,444 114,216 116,672 Total sales $ 941,384 $ 957,689 $ 1,046,603 Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination (a) 2015 % 2014 % 2013 % United States $ 398,739 42 $ 422,648 44 $ 437,048 42 China 256,979 27 255,954 27 281,407 27 Japan 132,480 14 138,961 14 150,306 14 Europe 91,847 10 93,957 10 79,138 7 Latin America 8,176 1 5,510 1 60,477 6 Other Asia 25,373 3 33,250 3 29,097 3 All other 27,790 3 7,409 1 9,130 1 Total sales $ 941,384 100 $ 957,689 100 $ 1,046,603 100 (a) All sales to foreign countries are denominated in U.S. dollars. The Company had sales to four significant customers which represented over 10 percent of total sales for the three years ended December 31 : Percentage of Sales 2015 2014 2013 Eastman Chemical Company 28% 31% 21% Nantong Cellulose Fibers, Co., Ltd. 18% 18% 19% Daicel Corporation 13% 15% 13% Celanese Acetate, LLC 0% 0% 14% |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of December 31, 2015 and 2014 , the Company’s property, plant and equipment included the following: 2015 2014 Land and land improvements $ 15,426 $ 15,411 Buildings 181,707 180,304 Machinery and equipment 1,764,477 1,777,299 Construction in progress 65,197 37,630 Total property, plant and equipment, gross 2,026,807 2,010,644 Accumulated depreciation (1,222,969 ) (1,167,269 ) Total property, plant and equipment, net $ 803,838 $ 843,375 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory As of December 31, 2015 and 2014 , the Company’s inventory included the following: 2015 2014 Finished goods $ 103,866 $ 120,221 Work-in-progress 2,344 2,418 Raw materials 16,593 14,670 Manufacturing and maintenance supplies 2,606 2,900 Total inventory $ 125,409 $ 140,209 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2015 and 2014 , the Company’s debt consisted of the following: 2015 2014 Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 1.92% at December 31, 2015 (a) $ 55,763 $ 106,973 Term A-2 Loan Facility borrowings maturing through June 2021 bearing interest at LIBOR plus 1.08% (after consideration of 0.67% patronage benefit), interest rate of 1.50% at December 31, 2015 (b) 262,156 287,843 Senior Notes due 2024 at a fixed interest rate of 5.50% 550,000 550,000 Total debt 867,919 944,816 Less: Current maturities of long-term debt (8,226 ) (8,400 ) Long-term debt $ 859,693 $ 936,416 (a) The Term A-1 Loan includes an unamortized issue discount of approximately $0.2 million at December 31, 2015 . The face amount of the liability is $56.0 million . (b) The Term A-2 Loan includes an unamortized issue discount of approximately $0.6 million at December 31, 2015 . The face amount of the liability is $262.8 million . During the year ended December 31, 2015 , the Company made $51.3 million and $25.8 million in principal debt repayments on the Term A-1 and Term A-2 Loan Facilities, respectively. Principal payments due during the next five years and thereafter are as follows: 2016 $ 8,400 2017 9,775 2018 11,150 2019 38,225 2020 2,900 Thereafter 798,250 Total principal payments $ 868,700 5.50% Senior Notes due 2024 On May 22, 2014, the Company issued $550 million in aggregate principal amount of 5.50 percent senior notes due 2024 . The Senior Notes were issued and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and non-U.S. persons pursuant to Regulation S under the Securities Act. On or after June 1, 2019 , the Company may redeem the Senior Notes, in whole or in part, at the redemption prices specified in the indenture governing the Senior Notes plus accrued and unpaid interest to, but excluding, the redemption date. Prior to June 1, 2019 , the Company may redeem some or all of the Senior Notes at a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest, to, but excluding, the redemption date, plus a “make-whole” premium. Prior to June 1, 2017 , the Company may redeem up to 40 percent of the Senior Notes using proceeds from certain equity offerings in accordance with the terms of the indenture. The indenture governing the Senior Notes contains various customary covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the Senior Notes, to take certain specified actions, subject to certain significant exceptions, including: creating liens; incurring indebtedness; making investments and acquisitions; engaging in mergers and other fundamental changes; making dispositions; making restricted payments, including dividends and distributions; and consummating transactions with affiliates. Additionally, the Senior Notes contain customary affirmative covenants and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, payment defaults, breach of covenant defaults, bankruptcy defaults, judgment defaults, defaults under certain other indebtedness and changes in control. At December 31, 2015 , the Company was in compliance with all covenants. Senior Secured Credit Facilities On June 26, 2014 , the Company entered into senior secured credit facilities comprised of a $110 million senior secured term loan facility (the “Term A-1 Loan Facility”), a $290 million senior secured term loan facility (the “Term A-2 Loan Facility” and together with the Term A-1 Facility, the “Term Loan Facilities”), and a $250 million senior secured revolving credit facility (which includes letter of credit and swingline loan subfacilities) (the “Revolving Credit Facility” and together with the Term Loan Facilities, the “Credit Facilities”). The Credit Facilities have a first priority security interest in substantially all present and future material assets, excluding the Fernandina Beach plant’s real property. The loans under the Credit Facilities will bear interest at either (a) a base rate or (b) an adjusted LIBOR rate, in each case, plus an applicable margin (the “Applicable Margin”), in the case of base rate loans, ranging between 0.25 percent and 1.00 percent , and in the case of adjusted LIBOR rate loans, ranging between 1.25 percent and 2.00 percent . The Applicable Margin for borrowings under the Credit Facilities is based on a consolidated total net leverage-based pricing grid. The Revolving Credit Facility matures in June 2019 . As of December 31, 2015 , the Company had no outstanding balance on the Revolving Credit Facility. At December 31, 2015 , the Company had $235.8 million of available borrowings under the Revolving Credit Facility, net of $14.2 million to secure its outstanding letters of credit. The Credit Facilities contain a number of covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the Credit Facilities, to take certain specified actions, subject to certain significant exceptions, including: creating liens; incurring indebtedness; making investments and acquisitions; engaging in mergers and other fundamental changes; making dispositions; making restricted payments, including dividends and distributions; and consummating transactions with affiliates. Under the Credit Facilities, the Company will be required to maintain a consolidated first lien secured net leverage ratio of no greater than 3.00 to 1.00 and an interest coverage ratio of no less than 3.00 to 1.00 . Additionally, the Credit Facilities contain customary affirmative covenants for credit facilities of this kind and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, payment defaults, breach of covenant defaults, bankruptcy defaults, judgment defaults, defaults under certain other indebtedness and changes in control. At December 31, 2015 , the Company was in compliance with all covenants. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 , using market information and what management believes to be appropriate valuation methodologies: December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 101,303 $ 101,303 $ — $ 65,977 $ 65,977 $ — Current maturities of long-term debt (8,226 ) — (8,400 ) (8,400 ) — (8,400 ) Fixed-rate long-term debt (550,000 ) — (435,171 ) (550,000 ) — (453,063 ) Variable-rate long-term debt (309,693 ) — (310,300 ) (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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (“AOCI”) was comprised of the following for the three years ended December 31 : Unrecognized components of employee benefit plans, net of tax 2015 2014 2013 Balance, January 1 $ (103,444 ) $ (39,699 ) $ (64,670 ) Amounts reclassified from accumulated other comprehensive loss (a) 9,427 5,804 5,269 Other comprehensive loss before reclassifications (15,603 ) (34,130 ) 19,702 Net other comprehensive income (loss) (6,176 ) (28,326 ) 24,971 Net transfer from Rayonier (b) — (35,419 ) — Balance, December 31 $ (109,620 ) $ (103,444 ) $ (39,699 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information. (b) Prior to the Separation, certain of the Company’s employees participated in employee benefit plans sponsored by Rayonier. The Company did not record an asset, liability or accumulated other comprehensive loss to recognize the funded status of the Rayonier plans on the Consolidated Balance Sheet until the Separation. See Note 9 — Stockholders' (Deficit) Equity for additional information. |
Stockholders' (Deficit) Equity
Stockholders' (Deficit) Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' (Deficit) Equity | Stockholders' (Deficit) Equity An analysis of stockholders’ (deficit) equity for each of the three years ended December 31 is shown below (share amounts not in thousands): Common Stock Retained Earnings (Accumulated Deficit) Transfers (to) from Rayonier, net Accumulated Other Comprehensive Loss Total Stockholders' (Deficit) Equity Shares Par Value Additional Paid in Capital Balance, December 31, 2012 — $ — $ — $ 1,196,127 $ (406,753 ) $ (64,670 ) $ 724,704 Net income — — — 219,767 — — 219,767 Net gain from pension and postretirement plans — — — — — 24,971 24,971 Net transfers to Rayonier — — — — (1,141 ) — (1,141 ) Balance, December 31, 2013 — $ — $ — $ 1,415,894 $ (407,894 ) $ (39,699 ) $ 968,301 Net income — — — 31,655 — — 31,655 Net loss from pension and postretirement plans — — — — — (28,326 ) (28,326 ) Net transfers to Rayonier — — — — (1,001,509 ) (35,419 ) (1,036,928 ) Reclassification to additional paid-in capital at distribution date — — 53,696 (1,463,099 ) 1,409,403 — — Issuance of common stock at the Separation 42,176,565 422 (422 ) — — — — Issuance of common stock under incentive stock plans 440,364 4 645 — — — 649 Stock-based compensation — — 4,695 — — — 4,695 Excess tax benefit on stock-based compensation — — 266 — — — 266 Repurchase of common stock (610 ) — (92 ) — — — (92 ) Adjustments to tax assets and liabilities associated with the Distribution — — 3,294 — — — 3,294 Dividends ($0.14 per share) — — — (5,926 ) — — (5,926 ) Balance, December 31, 2014 42,616,319 $ 426 $ 62,082 $ (21,476 ) $ — $ (103,444 ) $ (62,412 ) Net income — — — 55,257 — — 55,257 Net loss from pension and postretirement plans — — — — — (6,176 ) (6,176 ) Reclassification to additional paid-in capital — — 864 — — — 864 Issuance of common stock under incentive stock plans 258,176 3 5 — — — 8 Stock-based compensation — — 9,832 — — — 9,832 Excess tax benefit on stock-based compensation — — (2,558 ) — — — (2,558 ) Repurchase of common stock (2,060 ) — (12 ) — — — (12 ) Dividends ($0.28 per share) — — — (11,942 ) — — (11,942 ) Balance, December 31, 2015 42,872,435 $ 429 $ 70,213 $ 21,839 $ — $ (109,620 ) $ (17,139 ) Net Parent Company Investment The following provides a reconciliation of the amounts presented as “Net transfers to Rayonier” in the above table and the amounts presented as “Net payments to Rayonier” on the Consolidated Statements of Cash Flows for the years ended December 31, 2014 and 2013 . There were no net payments to/from Rayonier for the year ended December 31, 2015 . 2014 2013 Allocation of costs from Rayonier (a) $ (35,279 ) $ (67,781 ) Cash receipts received by Rayonier on Company’s behalf 472,780 1,073,275 Cash disbursements made by Rayonier on Company’s behalf (484,318 ) (1,006,635 ) Net distribution to Rayonier on Separation (906,200 ) — Net liabilities from transfer of assets and liabilities with Rayonier (b) (83,911 ) — Net transfers to Rayonier (1,036,928 ) (1,141 ) Non-cash adjustments: Stock-based compensation (3,562 ) (6,230 ) Net liabilities from transfer of assets and liabilities with Rayonier (b) 83,911 — Net payments to Rayonier per the Condensed Consolidated Statements of Cash Flows, prior to Separation $ (956,579 ) $ (7,371 ) (a) Included in the costs allocated to the Company from Rayonier are expense allocations for certain corporate functions historically performed by Rayonier and not allocated to its operating segments. See Note 2 — Related Party Transactions . (b) As a result of the Separation, certain assets and liabilities were transferred to the Company that were not included in the historical financial statements for periods prior to the Separation. These non-cash capital contributions included: • $73.9 million of disposed operations liabilities (See Note 13 - Liabilities for Disposed Operations for additional information) • $73.8 million of employee benefit plan liabilities (See Note 15 - Employee Benefit Plans for additional information) • $67.4 million of deferred tax assets (primarily associated with the liabilities above) • $3.6 million of other liabilities, net |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock In conjunction with the Separation, 42,176,565 shares of the Company’s common stock were distributed to Rayonier shareholders. 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 Separation presented in the calculation of weighted-average shares. Prior to the Separation, there were no dilutive shares since the Company had no outstanding equity awards. Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS is calculated by dividing net income by the weighted-average number of shares of common stock outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares and restricted shares. The following table provides details of the calculations of basic and diluted EPS for the three years ended December 31 : 2015 2014 2013 Net income $ 55,257 $ 31,655 $ 219,767 Shares used for determining basic earnings per share of common stock 42,194,891 42,166,629 42,176,565 Dilutive effect of: Stock options — 47,073 — Performance and restricted shares 27,968 25,980 — Shares used for determining diluted earnings per share of common stock 42,222,859 42,239,682 42,176,565 Basic earnings per share (not in thousands) $ 1.31 $ 0.75 $ 5.21 Diluted earnings per share (not in thousands) $ 1.30 $ 0.75 $ 5.21 Anti-dilutive shares excluded from the computation of diluted earnings per share: 2015 2014 2013 Stock options 447,524 229,001 — Restricted stock 220,348 6,282 — Performance shares 3,379 — — Total 671,251 235,283 — |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Other Operating Expense, Net Other operating expense, net was comprised of the following for the three years ended December 31 : 2015 2014 2013 Increase in environmental liabilities for disposed operations (a) $ 6,930 $ 70,129 $ — One-time separation and legal costs (802 ) 25,680 6,033 Increase to environmental liabilities for disposed operations resulting from separation from Rayonier (b) — 18,419 — Non-cash impairment charge (c) 28,462 7,184 — Loss on sale or disposal of property, plant and equipment 998 2,123 2,390 Insurance settlement (1,000 ) (2,881 ) — Miscellaneous expense (income) 681 169 (259 ) Total $ 35,269 $ 120,823 $ 8,164 (a) The increase in environmental liabilities for disposed operations in 2015 and 2014 of $6.9 million and $70.1 million , respectively, reflects an increase to the estimates for the assessment, remediation and long-term monitoring and maintenance of the Company’s disposed operations sites over the next 20 years . See Note 13 — Liabilities for Disposed Operations for additional information. (b) The Company is subject to certain legal requirements relating to the provision of annual financial assurance regarding environmental remediation and post closure care at certain disposed sites. To comply with these requirements, the Company purchased surety bonds from an insurer, with the Company’s repayment obligations (if the bonds are drawn upon) secured by the issuance of a letter of credit by the Company’s revolving credit facility lender. As a result of the Separation and the Company’s obligations to procure financial assurance annually for the foreseeable future, the Company recorded a corresponding increase to liabilities for disposed operations. See Note 13 — Liabilities for Disposed Operations and Note 17 — Guarantees for additional information. (c) In light of the persistent imbalance of supply and demand in the cellulose specialties markets, on July 30, 2015, the Company announced a strategic asset repositioning at its Jesup, Georgia plant to better align its production assets to current market conditions, improve efficiency and restore commodity production throughput to approach historical levels. This repositioning resulted in the abandonment of certain long-lived assets, primarily at the Jesup plant. As a result, the abandoned assets were written down to salvage value and a $28.5 million pre-tax, non-cash impairment charge was recorded during the second quarter of 2015. The abandonment led management to conduct an impairment analysis on all long-lived assets being held and used on a combined plant level. Based on the impairment analysis performed, management concluded the assets were recoverable. In 2014, the Company determined certain pieces of property associated with its disposed operations should be assessed for impairment based on recent changes to remediation plans at four of its disposed operations sites. As a result, the Company concluded the land values were impaired and reduced the carrying value of those properties by approximately $7.2 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for Income Taxes The provision for income taxes for periods prior to the Separation has been computed as if the Company were a stand-alone company. The provision for income taxes consisted of the following: 2015 2014 2013 Current Federal $ 37,561 $ 42,183 $ 95,997 State and other (197 ) 305 4,312 37,364 42,488 100,309 Deferred Federal (11,073 ) (34,301 ) (31,051 ) State and other 1,316 (641 ) (110 ) (9,757 ) (34,942 ) (31,161 ) Changes in valuation allowance — 1,270 — Total $ 27,607 $ 8,816 $ 69,148 A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate was as follows: 2015 2014 2013 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Domestic manufacturing production deduction (a) (4.2 ) (14.4 ) (3.4 ) CBPC reserve reversal — (11.8 ) — State credits (0.9 ) (2.9 ) — AFMC for CBPC exchange — — (6.5 ) Nondeductible executive compensation 1.2 2.4 — Research credit adjustment — 2.4 (1.0 ) Adjustment to prior tax returns — 2.7 — Change in valuation allowance — 3.1 — Nondeductible transaction costs — 4.0 — Change in state rate 1.4 — — Other 0.8 1.3 (0.2 ) Income tax rate as reported 33.3 % 21.8 % 23.9 % (a) The impact of the manufacturing deduction on the effective tax rate is greater in periods that include expenses that reduce pre-tax income but are not currently deductible for income tax purposes. Deferred Taxes Deferred income taxes result from recording revenues and expenses in different periods for financial reporting versus tax reporting. The nature of the temporary differences and the resulting net deferred tax liability for the two years ended December 31 were as follows: 2015 2014 Gross deferred tax assets: Pension, postretirement and other employee benefits $ 70,180 $ 67,104 State tax credit carryforwards (a) 16,498 15,740 Environmental liabilities 55,945 56,508 Capitalized costs 14,088 14,042 State net operating losses (a) 3,204 4,892 Total gross deferred tax assets 159,915 158,286 Less: Valuation allowance (19,702 ) (20,517 ) Total deferred tax assets after valuation allowance 140,213 137,769 Gross deferred tax liabilities: Accelerated depreciation (41,006 ) (49,917 ) Other (1,787 ) (1,030 ) Total gross deferred tax liabilities (42,793 ) (50,947 ) Net deferred tax asset (b) $ 97,420 $ 86,822 (a) The following relates to tax credit carryforwards and net operating losses as of December 31, 2015 : Gross Amount Tax Effected Valuation Allowance Expiration State tax credit carryforwards $ 16,498 $ 16,498 $ 16,498 2018 - 2025 State net operating losses 85,014 3,204 3,204 2016 - 2033 (b) The Company elected to early adopt ASU 2015-17, Balance Sheet Presentation of Deferred Taxes, as of December 31, 2015 . The effect of this accounting change on prior periods was a reclassification to non-current assets of $8.3 million in deferred tax assets previously classified as current assets. See Note 1 — Basis of Presentation and New Accounting Pronouncements for more information. Unrecognized Tax Benefits In accordance with generally accepted accounting principles, the Company recognizes the impact of a tax position if a position is “more likely than not” to prevail. As of December 31, 2015 , there were no unrecognized tax benefits that, if recognized, would affect the effective tax rate. The Company records interest (and penalties, if applicable) related to unrecognized tax benefits in non-operating expenses. During the years ended December 31, 2015 , 2014 , and 2013 , the Company did not record any interest or penalties. A reconciliation of the beginning and ending unrecognized tax benefits for the years ended December 31 is as follows: 2015 2014 2013 Balance at January 1, $ — $ 4,767 $ — Decreases related to prior year tax positions — (4,767 ) — Increases related to prior year tax positions — — 4,767 Balance at December 31, $ — $ — $ 4,767 During 2014, the Company received a resolution from the Internal Revenue Service regarding the Rayonier TRS Holdings Inc. amended 2009 tax return. As a result, the Company reversed the $4.8 million uncertain tax liability recorded in 2013 related to an increased domestic production deduction on the Rayonier TRS Holdings Inc. amended 2009 tax return due to the inclusion of the CBPC income. Tax Statutes The following table provides detail of tax years that remain open to examination by significant taxing jurisdictions: Taxing Jurisdiction Open Tax Years U.S. Internal Revenue Service 2009, 2011 - 2015 State of Florida 2009, 2011 - 2015 Tax Matters Agreement In connection with the Separation, the Company entered into a tax matters agreement with Rayonier. The agreement governs the parties’ respective rights, responsibilities and obligations with respect to taxes for any period (or portion thereof) ending on or before or straddling the Separation. Generally, Rayonier Advanced Materials is liable for all pre-separation U.S. federal income taxes, state taxes and non-income taxes attributable to Rayonier’s performance fibers business. Alternative Fuel Mixture Credit and Cellulosic Biofuel Producer Credit The financial statements for periods prior to the Separation include a provision for income taxes determined on a separate return basis which takes into account the impact of the AFMC and subsequent exchanges for the CBPC. Prior to the Separation, the Company was a subsidiary of Rayonier and, for purposes of U.S. federal and state income taxes, was not directly subject to income taxes but was included in the income tax return of Rayonier TRS Holdings Inc., a wholly owned subsidiary of Rayonier. |
Liabilities for Disposed Operat
Liabilities for Disposed Operations | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Remediation Obligations [Abstract] | |
Liabilities for Disposed Operations | Liabilities for Disposed Operations As a result of the Separation, the Company assumed certain environmental liabilities not included in the Company’s historical combined financial statements, as these operations were previously managed by Rayonier. These environmental liabilities relate to previously disposed operations, which include Rayonier’s Port Angeles, Washington dissolving pulp mill that was closed in 1997 and other sites in Washington; Rayonier’s wholly owned subsidiary, Southern Wood Piedmont Company (“SWP”), which ceased operations other than environmental investigation and remediation activities in 1989; and other miscellaneous assets held for disposition. SWP owns or has liability for ten inactive former wood treating sites that are subject to the Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) and/or other similar federal or state statutes relating to the investigation and remediation of environmentally-impacted sites. The Company records accruals for environmental liabilities based on its current interpretation of environmental laws and regulations when it is probable a liability has been incurred and the amount of such liability is estimable. The Company calculates estimates based on a number of factors, including the application and interpretation of current environmental laws, regulations and other requirements; reports and advice of internal and third-party environmental specialists; and management’s knowledge and experience with these and similar types of environmental matters. These estimates include potential costs for investigation, assessment, remediation, ongoing operation and maintenance (where applicable), and post-remediation monitoring of the sites, on an undiscounted basis, generally for a period of 20 years . These environmental liabilities do not include potential third-party recoveries to which we may be entitled unless they are probable and estimable. The following table provides detail, by site, for specific sites where current estimates exceed 10 percent of the total liabilities for disposed operations at December 31, 2015 . An analysis of the activity for the year ended December 31, 2015 is as follows: Liabilities Assumed at Separation Expenditures Increase to Liabilities December 31, 2014 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2015 Liability Augusta, Georgia $ 10,838 $ (691 ) $ 12,060 $ 22,207 $ (1,187 ) $ 1,861 $ 22,881 Spartanburg, South Carolina 10,902 (710 ) 8,792 18,984 (933 ) (575 ) 17,476 Baldwin, Florida 10,172 (640 ) 14,996 24,528 (838 ) 3,270 26,960 Other SWP sites 27,471 (2,190 ) 12,116 37,397 (1,731 ) 226 35,892 Total SWP 59,383 (4,231 ) 47,964 103,116 (4,689 ) 4,782 103,209 Port Angeles, Washington 8,100 (1,109 ) 32,922 39,913 (1,040 ) 532 39,405 All other sites 6,357 (319 ) 7,662 13,700 (546 ) 1,616 14,770 Total $ 73,840 $ (5,659 ) $ 88,548 $ 156,729 $ (6,275 ) $ 6,930 $ 157,384 Less: Current portion (7,241 ) (12,034 ) Non-Current portion $ 149,488 $ 145,350 A brief description of each of these sites is as follows: Augusta, Georgia — SWP operated a wood treatment plant at this site from 1928 to 1988. Remediation activities currently consist primarily of groundwater recovery and treatment. Current cost estimates and the corresponding liability could vary if recovery or discharge volumes change or if changes to current remediation activities are required in the future. In 2015, as a result of current year spending, the Company increased its estimated liability by $1.9 million to maintain a 20 year projection of costs in the liability. In 2014, the Company increased its estimated liability by $12.1 million primarily due to projected financial assurance costs and additional waste water treatment costs. Total spending related to the site as of December 31, 2015 was $71.3 million . Liabilities are recorded to cover obligations for the estimated remaining remedial, monitoring activities and financial assurance costs through 2035. Spartanburg, South Carolina — SWP operated a wood treatment plant at this site from 1925 to 1989. Remediation activities consist primarily of groundwater recovery and treatment. In 2012, SWP entered into a consent decree with the South Carolina Department of Health and Environmental Control which governs future investigatory and assessment activities at the site and for potential off-site contamination. Depending on the results of this investigation and assessment, additional remedial actions may be required in the future and, therefore, current cost estimates and the corresponding liability could change. In 2015, the Company decreased its estimated liability by $0.6 million primarily due to expected lower costs for operating, monitoring and maintenance activities. In 2014, the Company increased its estimated liability by $8.8 million primarily due to additional projected financial assurance costs, additional soil remediation costs related to on and off-site assessment and remediation projects. Total spending related to the site as of December 31, 2015 was $42.7 million . Liabilities are recorded to cover obligations for the estimated remaining assessment, remediation and monitoring activities and financial assurance costs through 2035. Baldwin, Florida — SWP operated a wood treatment plant at this site from 1954 to 1987. This site operates under a 10 -year hazardous waste permit issued pursuant to the RCRA, which expires in 2016. The current remediation activities primarily consist of groundwater recovery and treatment. Additionally, the investigation and assessment of other potential areas of concern, on and off-site, are ongoing. Additional remedial activities may be necessary in the future and, therefore, current cost estimates and the corresponding liability could change. In 2015, the Company increased its estimated liability by $3.3 million primarily due to additional projected financial assurance costs and to maintain its liability at the 20 year projected level as a result of current year spending. In 2014, the Company increased its estimated liability by $15.0 million primarily due to additional projected financial assurance costs and changes in assumed future remedial activity relating to on-site and off-site contamination. Total spending as of December 31, 2015 was $23.7 million . Liabilities are recorded to cover obligations for the estimated remaining assessment, remedial, monitoring activities and financial assurance costs through 2035. Port Angeles, Washington — Rayonier operated a dissolving pulp mill at this site from 1930 until 1997. The plant site and the adjacent marine areas (a portion of Port Angeles harbor) have been in various stages of the assessment process under the Washington Model Toxics Control Act (“MTCA”) since 2000, and several voluntary interim soil clean-up actions have been performed during this time. In addition, the Company may be liable under CERCLA for “natural resource damages” caused by releases from the site. As a result of an agreed order with the Washington State Department of Ecology (“Ecology”), the remainder of the MTCA regulatory process will be completed on a set timetable, subject to approval of all reports and studies by Ecology. Upon completion of all work required under the agreed order and negotiation of an approved remedy, additional remedial measures for the site and off-site areas may be necessary and, as a result, current cost estimates and the corresponding liability could change. In 2015, the Company increased the estimated liability by $0.5 million to maintain its liability at the 20 year projected level as a result of current year spending. In 2014, the Company increased the estimated liability by $32.9 million primarily due to the results of the work required under the agreed order to prepare and submit a feasibility study identifying alternative remedies and cost estimates to address on-site and off-site contamination, as well as specifying the proposed remedy, which resulted in a change in expectations for the strategy, scope and cost of compliance with the MTCA and CERCLA obligations. Total spending related to the site as of December 31, 2015 was $46.1 million . Liabilities are recorded to cover obligations for the estimable assessment, remediation, monitoring obligations and financial assurance costs through 2035. In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established liabilities 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 December 31, 2015 , the Company estimates this exposure could range up to approximately $65 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. |
Incentive Stock Plans
Incentive Stock Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Stock Plans | Incentive Stock Plans The Rayonier Advanced Materials Incentive Stock Plan (“the Stock Plan”) provides for up to 5.2 million shares of stock to be granted for incentive stock options, non-qualified stock options, stock appreciation rights, performance shares, restricted stock and restricted stock units, subject to certain limitations. At December 31, 2015 , approximately 3.5 million shares were available for future grants under the Stock Plan. In connection with the separation from Rayonier, incentive stock options, performance shares and restricted stock awards issued to employees and directors under the Rayonier Incentive Stock Plan prior to the Distribution were adjusted or converted, as applicable, into new awards using formulas generally designed to preserve the value of the awards immediately prior to the Distribution. The Employee Matters Agreement between Rayonier and the Company, which was executed in connection with the Distribution and filed with the Form 10, describes how the Rayonier stock awards were treated. Refer to the respective sections below for a summary of how each type of award was converted through the Distribution. The Company recognizes stock-based compensation expense on a straight-line basis over the service period of the award. The Company’s total stock based compensation cost, including allocated amounts, for the years ended December 31, 2015 , 2014 and 2013 was $10.0 million , $8.7 million and $6.2 million , respectively. These amounts may not reflect the cost of current or future equity awards. Amounts for periods prior to the Separation may not reflect results we would have experienced, or expect to experience, as an independent, publicly traded company. Total stock-based compensation expense was allocated for the years ended December 31 as follows: 2015 2014 2013 Selling, general and administrative expenses $ 8,124 $ 7,763 $ 5,006 Cost of sales 1,868 975 1,224 Total stock-based compensation expense $ 9,992 $ 8,738 $ 6,230 The Company’s employee stock option compensation program generally provides accelerated vesting (i.e., a waiver of the remaining period of service required to earn an award) for awards held by employees at the time of their retirement. Stock-based compensation expense for stock option awards is recognized over the shorter of: (1) the service period (i.e., the stated period of time required to earn the award); or (2) the period beginning at the start of the service period and ending when an employee first becomes eligible for retirement. Fair Value Calculations by Award All option, restricted stock and performance share awards are presented for Rayonier Advanced Materials stock only, including those awards held by Rayonier employees. Non-Qualified Employee Stock Options Stock options are granted with an exercise price equal to the market value of the underlying stock on the grant date. They generally vest ratably over three years and have a maximum term of 10 years and two days from the grant date. The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model. All stock option awards granted prior to the Distribution were valued based on Rayonier’s share price and assumptions. For all options granted before the Separation, the expected volatility is based on historical volatility for each grant and is calculated using the historical change in the daily market price of Rayonier’s underlying stock over the expected life of the award. For options granted after the Separation, the expected volatility is based on peer companies’ historical volatilities for each grant and is calculated using the historical change in the daily market price of the companies’ underlying stock over the expected life of the award. The expected life is based on prior exercise behavior. The Company has elected to value each grant in total and recognize the expense for stock options on a straight-line basis over three years . During the year ended December 31, 2015 , there were no options granted. The following chart provides a tabular overview of the weighted average assumptions and related fair value calculations of options granted for the years ended December 31, 2014 and December 31, 2013 : 2014 2013 Expected volatility 40.1 % 39.0 % Dividend yield 4.2 % 3.4 % Risk-free rate 2.2 % 1.0 % Expected life (in years) 6.3 6.3 Fair value per share of options granted $ 9.31 $ 14.00 Fair value of options granted $ 90 $ 703 A summary of the Company’s stock option activity is presented below for the year ended December 31, 2015 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2015 466,015 $ 31.73 Forfeited (7,750 ) 38.56 Exercised (460 ) 17.34 Expired (16,190 ) 30.36 Outstanding at December 31, 2015 441,615 $ 31.67 5.0 $ — Options vested and expected to vest 441,615 $ 31.67 5.0 $ — Options exercisable at December 31, 2015 371,845 $ 30.34 4.4 $ — A summary of additional information pertaining to stock options granted to employees is presented below: 2015 2014 2013 Intrinsic value of options exercised (a) $ — $ 320 $ 772 Fair value of options vested $ 717 $ 90 $ 593 (a) Intrinsic value of stock options exercised is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier's stock at December 31, 2013 . As of December 31, 2015 , there was $0.2 million of unrecognized compensation cost related to the Company’s stock options. This cost is expected to be recognized over a weighted average period of 1 year. As a result of the Separation, some of the Company’s employees hold Rayonier options. As of December 31, 2015 , there was $0.4 million of unrecognized compensation cost related to Rayonier stock options, the cost of which is expected to be recognized over a weighted average period of 1 year. Restricted Stock As a result of the Separation, holders of Rayonier restricted stock, including Rayonier non-employee directors, retained those awards and also received one share of Company restricted stock for every three shares of Rayonier restricted stock held prior to the Separation. The adjusted awards resulted in incremental compensation expense of $2.3 million to be recognized over a two year period following the Distribution. Restricted stock granted in connection with the Company’s performance share plan, and in connection with Rayonier’s incentive plan prior to the Separation, generally vests upon completion of a one to four year period. The fair value of each share granted is equal to the share price of the underlying stock on the date of grant. As of December 31, 2015 , there was $4.4 million of unrecognized compensation cost related to the Company’s outstanding restricted stock. This cost is expected to be recognized over a weighted average period of 1.9 years . As a result of the Separation, some of the Company’s employees hold Rayonier restricted shares. As of December 31, 2015 , there was $0.1 million of unrecognized compensation cost related to Rayonier restricted shares, the cost of which is expected to be recognized over a weighted average period of 0.9 years . The following table summarizes the activity of restricted shares granted to employees for the three years ended December 31 : 2015 2014 2013 Restricted shares granted 277,298 172,894 10,200 Weighted average price of restricted shares granted $ 20.83 $ 41.51 $ 56.00 Intrinsic value of restricted stock outstanding (a) $ 3,763 $ 3,235 $ 666 Fair value of restricted stock vested $ 690 $ 100 $ 27 (a) Intrinsic value of restricted stock outstanding is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier’s stock at December 31, 2013 . A summary of the Company’s restricted stock activity is presented below for the year ended December 31, 2015 : Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 145,085 $ 41.66 Granted 277,298 20.83 Forfeited (19,350 ) 25.07 Vested (18,650 ) 37.00 Outstanding at December 31, 2015 384,383 $ 28.41 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 a result, the award has no dilutive effect on the Company’s stock. All other significant terms remain unchanged. Performance Share Awards The Company’s performance share awards generally vest upon completion of a three -year period. The number of shares, if any, that are ultimately awarded is contingent upon the Company’s total shareholder return versus selected peer group companies for the post-separation business. The performance share payout for certain awards is based on a market condition and as such, the awards are valued using a Monte Carlo simulation model. The model generates the fair value of the award at the grant date, which is then amortized over the vesting period. For other awards, the performance share payout is based on an internal performance metric or a combination of an internal metric and a market condition. As of December 31, 2015 , there was $6.0 million of unrecognized compensation cost related to the Company’s performance share awards. This cost is expected to be recognized over a weighted average period of 1.6 years . In connection with the separation from Rayonier, performance shares held by the Company’s employees were converted to the Rayonier Advanced Materials Stock Plan. The following table summarizes the activity of the Company’s performance share units granted to its employees for the three years ended December 31 : 2015 2014 2013 Performance-Based Stock Units Performance-Based Stock Units Performance-Based Restricted Stock Performance-Based Stock Units Common shares of stock reserved for performance shares 422,920 95,952 286,737 52,900 Weighted average fair value of performance share units granted $ 17.51 $ 42.27 $ 40.41 $ 58.99 Intrinsic value of outstanding performance share units (a) $ 2,070 $ 1,070 $ 3,197 $ 3,618 Fair value of performance shares vested $ — $ — $ — $ 962 Cash used to pay the minimum withholding tax requirements in lieu of receiving common shares $ — $ — $ — $ 1,199 (a) Intrinsic value of outstanding performance share units is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier’s stock at December 31, 2013 . A summary of the Company’s performance-share activity is presented below for the year ended December 31, 2015 : Performance-Based Stock Units Performance-Based Restricted Stock Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 47,977 $ 42.27 143,369 $ 40.52 Granted 214,403 17.51 — — Forfeited (2,943 ) 17.74 (1,671 ) 19.84 Canceled (a) (47,977 ) 42.27 — — Outstanding at December 31, 2015 211,460 $ 17.51 141,698 $ 40.76 (a) During the first quarter of 2015, performance shares granted in 2012 were canceled 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 . There are no 2013 performance awards outstanding as performance awards granted in 2013 were canceled at Separation and replaced with restricted stock. For the 2014 and 2015 grants, expected volatility is based on representative price returns using the stock price of several peer companies. The risk-free rate was based on the 3-year U.S. treasury rate on the date of the award. The following chart provides a tabular overview of the weighted average assumptions used in calculating the fair value of the awards granted for the two years ended December 31 : 2015 2014 Expected volatility 17.3 % 16.9 % Risk-free rate 1.0 % 0.7 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined 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 following tables set forth the changes in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement plans for the two years ended December 31 : Pension Postretirement Change in Projected Benefit Obligation 2015 2014 2015 2014 Projected benefit obligation at beginning of year $ 409,356 $ 173,077 $ 26,568 $ 17,178 Service cost 5,977 4,099 1,006 798 Interest cost 15,228 11,379 919 916 Actuarial loss (gain) (7,073 ) 45,171 (2,049 ) 4,417 Plan amendments (a) — — 1,321 — Employee contributions — — 361 — Benefits paid (18,455 ) (13,468 ) (1,167 ) (1,309 ) Assumption of balance from parent at spin — 189,098 — 4,568 Projected benefit obligation at end of year $ 405,033 $ 409,356 $ 26,959 $ 26,568 Change in Plan Assets Fair value of plan assets at beginning of year $ 291,087 $ 170,218 $ — $ — Actual return on plan assets (6,627 ) 13,359 — — Employer contributions 2,312 1,056 806 1,309 Employee contributions — — 361 — Benefits paid (18,455 ) (13,468 ) (1,167 ) (1,309 ) Other expense (2,162 ) (1,175 ) — — Assumption of balance from parent at spin — 121,097 — — Fair value of plan assets at end of year $ 266,155 $ 291,087 $ — $ — Funded Status at End of Year: Net accrued benefit cost $ (138,878 ) $ (118,269 ) $ (26,959 ) $ (26,568 ) (a) During 2015 , the Fernandina postretirement medical plan was amended as a result of the Company’s negotiations with the plant’s unions. The amendment changed the plan from a fully insured health maintenance organization plan to a self-funded high deductible plan and added benefits for plan retiree spouses. The plan was also remeasured at the amendment date. The impact of the plan amendment and the remeasurement was a net increase in the projected benefit obligation of $1.3 million . Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2015 2014 2015 2014 Non-current assets $ — $ — $ — $ — Current liabilities (2,268 ) (2,036 ) (1,485 ) (1,463 ) Non-current liabilities (136,610 ) (116,233 ) (25,474 ) (25,105 ) Net amount recognized $ (138,878 ) $ (118,269 ) $ (26,959 ) $ (26,568 ) Net gains or losses recognized in other comprehensive income for the three years ended December 31 are as follows: Pension Postretirement 2015 2014 2013 2015 2014 2013 Net (losses) gains $ (24,950 ) $ (49,577 ) $ 25,411 $ 759 $ (3,807 ) $ 5,616 Net gains or losses and prior service costs or credits reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows: Pension Postretirement 2015 2014 2013 2015 2014 2013 Amortization of losses $ 13,434 $ 7,620 $ 6,494 $ 676 $ 597 $ 549 Amortization of prior service (credit) cost 750 1,161 1,292 (158 ) (265 ) (39 ) Net losses, prior service costs or credits and plan amendments that have not yet been included in pension and postretirement expense for the two years ended December 31 , which have been recognized as a component of AOCI are as follows: Pension Postretirement 2015 2014 2015 2014 Prior service cost $ (3,776 ) $ (4,527 ) $ 27 $ (32 ) Net losses (161,519 ) (150,003 ) (8,585 ) (11,298 ) Plan amendment — — 1,797 3,293 Deferred income tax benefit 59,975 56,206 2,461 2,917 AOCI $ (105,320 ) $ (98,324 ) $ (4,300 ) $ (5,120 ) For pension and postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the two years ended December 31 : 2015 2014 Projected benefit obligation $ 431,992 $ 435,219 Accumulated benefit obligation 417,397 394,263 Fair value of plan assets 266,155 291,087 The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31 : Pension Postretirement Components of Net Periodic Benefit Cost 2015 2014 2013 2015 2014 2013 Service cost $ 5,977 $ 4,099 $ 2,790 $ 1,006 $ 798 $ 941 Interest cost 15,228 11,379 6,900 919 916 741 Expected return on plan assets (23,234 ) (18,333 ) (12,515 ) — — — Amortization of prior service (credit) cost 750 1,161 1,292 (158 ) (265 ) (39 ) Amortization of losses 13,434 7,620 6,494 676 597 549 Net periodic benefit cost (a) $ 12,155 $ 5,926 $ 4,961 $ 2,443 $ 2,046 $ 2,192 (a) A portion of the net periodic benefit cost is recorded in cost of goods sold in the Consolidated Statements of Income. The estimated pre-tax amounts that will be amortized from AOCI into net periodic benefit cost in 2016 are as follows: Pension Postretirement Amortization of loss $ 10,881 $ 524 Amortization of prior service cost 761 (139 ) Total amortization of AOCI loss $ 11,642 $ 385 The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31 : Pension Postretirement 2015 2014 2013 2015 2014 2013 Assumptions used to determine benefit obligations at December 31: Discount rate 4.03 % 3.71 % 4.60 % 3.98 % 3.65 % 4.60 % Rate of compensation increase 4.45 % 4.50 % 4.60 % 4.50 % 4.50 % 4.50 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.71 % 4.04 % 3.70 % 3.65 % 4.00 % 3.60 % Expected long-term return on plan assets 8.50 % 8.50 % 8.50 % n/a n/a n/a Rate of compensation increase 4.45 % 4.50 % 4.60 % 4.50 % 4.50 % 4.50 % Effective December 31, 2015 , the expected return on plan assets remained at 8.5 percent , which is based on historical and expected long-term rates of return on broad equity and bond indices and consideration of the actual annualized rate of return. The Company, with the assistance of external consultants, utilizes this information in developing assumptions for returns, and risks and correlation of asset classes, which are then used to establish the asset allocation ranges. The following table sets forth the assumed health care cost trend rates as of December 31 : Postretirement 2015 2014 Health care cost trend rate assumed for next year 7.00 % 7.00 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that ultimate trend rate is reached 2019 2018 Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement benefit plans. The following table shows the effect of a one percentage point change in assumed health care cost trends: 1 Percent Effect on: Increase Decrease Total of service and interest cost components $ 209 $ (203 ) Accumulated postretirement benefit obligation 2,245 (1,193 ) Investment of Plan Assets The Company’s pension plan asset allocation at December 31, 2015 and 2014 , and target allocation ranges by asset category are as follows: Percentage of Plan Assets Target Allocation Range Asset Category 2015 2014 Domestic equity securities 41 % 41 % 35-45% International equity securities 24 % 23 % 20-30% Domestic fixed income securities 27 % 28 % 25-29% International fixed income securities 5 % 5 % 3-7% Real estate fund 3 % 3 % 2-4% Total 100 % 100 % The Company’s Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the pension plans’ investment program which is designed to maximize returns and provide sufficient liquidity to meet plan obligations while maintaining acceptable risk levels. The investment approach emphasizes diversification by allocating the plans’ assets among asset categories and selecting investment managers whose various investment methodologies will be minimally correlative with each other. Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier Advanced Materials common stock at December 31, 2015 or 2014 . Fair Value Measurements The following table sets forth by level, within the fair value hierarchy (see Note 1 — Basis of Presentation and New Accounting Pronouncements to the Consolidated Financial Statements for definition), the assets of the plans as of December 31, 2015 and 2014 . Fair Value at December 31, 2015 Fair Value at December 31, 2014 Asset Category Level 1 Level 2 Total Level 1 Level 2 Total Domestic equity securities $ 23,689 $ 85,011 $ 108,700 $ 23,476 $ 94,163 $ 117,639 International equity securities 28,773 33,390 62,163 33,496 33,425 66,921 Domestic fixed income securities — 70,903 70,903 — 79,193 79,193 International fixed income securities 12,343 — 12,343 12,767 — 12,767 Real estate fund 9,077 — 9,077 9,387 — 9,387 Short-term investments — 2,969 2,969 1,038 4,142 5,180 Total $ 73,882 $ 192,273 $ 266,155 $ 80,164 $ 210,923 $ 291,087 The valuation methodology used for measuring the fair value of these asset categories was as follows: Level 1 — Net asset value in an observable market. Level 2 — Assets classified as level two are held in collective trust funds. The net asset value of a collective trust is calculated by determining the fair value of the fund’s underlying assets, deducting its liabilities and dividing by the units outstanding as of the valuation date. These funds are not publicly traded; however, the unit price calculation is based on observable market inputs of the funds’ underlying assets. There have been no changes in the methodology used during the years ended December 31, 2015 and 2014 . Cash Flows Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2016 $ 20,253 $ 1,454 2017 21,024 1,553 2018 21,750 1,677 2019 22,428 1,626 2020 22,986 1,577 2021 — 2025 121,403 7,491 Shared Pension and Postretirement Plans Prior to the Separation, Rayonier provided defined benefit pension and postretirement health and life insurance benefits to certain Company employees. As such, these liabilities were not reflected in the Company’s combined balance sheets prior to the Separation. On June 27, 2014, in connection with the Separation, these liabilities, totaling $73.8 million , were transferred from Rayonier to the Company and are reflected in the Consolidated Balance Sheet as of December 31, 2014 . The Company recorded expense of $3.0 million and $9.8 million for the years ended December 31, 2014 and 2013 , respectively, for its allocation of costs related to these plans. There were no charges for the year ended December 31, 2015 . As of December 31, 2015 and 2014 , there were no required contributions outstanding, and the Company does not expect to make any discretionary contributions in 2016 . Defined Contribution Plans The Company provides defined contribution plans to all of its hourly and salaried employees. The Company’s contributions charged to expense for these plans were $5.2 million , $3.7 million and $2.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Rayonier Advanced Materials Hourly and Salaried Defined Contribution Plans include Rayonier Advanced Materials common stock with a fair market value of $12.6 million at December 31, 2015 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is engaged in various legal and regulatory actions and proceedings, and has been named as a defendant in various lawsuits and claims arising in the ordinary course of its business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, the Company 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. Unless specifically noted, any possible range of loss associated with the legal proceedings described below is not reasonably estimable at this time. While there can be no assurance, the ultimate outcome of these actions, either individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows, except as noted below. Eastman Litigation On August 12, 2015, Eastman Chemical Company (“Eastman”) served the Company, and on August 14, 2015 the Company served Eastman, respectively, with lawsuits relating to the Chemical Cellulose Agreement, effective as of January 1, 2012, between the Company and Eastman (the “Agreement”). Eastman’s lawsuit was filed in the Chancery Court for Sullivan County, Tennessee, while the Company’s lawsuit was filed in the Superior Court of Gwinnett County, Georgia. The filings by each of Eastman and the Company asked the respective courts to confirm the meaning of certain “meet or release” pricing and volume provisions in the Agreement that require the Company, under certain circumstances, to respond to offers made to Eastman by other suppliers. The Company sought a declaration that such provisions apply to a maximum number of metric tons of product per year, while Eastman claimed such provisions provide Eastman with, in essence, meet or release rights for unlimited volume. In addition, the parties asked the court to confirm the meaning of certain other contract provisions in the Agreement relating to pricing in future years. In its court filings, Eastman also asserted other claims which seek to limit, terminate or void the Agreement. On November 30, 2015, the Company and Eastman settled all matters relating to the dispute between the parties and entered into a new Chemical Cellulose Purchase and Sale Agreement, effective January 1, 2016 that extends through December 31, 2019, and which replaces and supersedes the Agreement. In connection with the settlement, the parties also agreed to mutual release and dismiss all pending litigation. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of December 31, 2015 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Standby letters of credit (a) $ 14,216 Surety bonds (b) 56,201 Total financial commitments $ 70,417 (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 2016 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 2016 and 2019 . They are expected to be renewed annually as required. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company leases certain buildings, machinery and equipment under various operating leases. Total rental expense for operating leases amounted to $4.0 million , $2.1 million and $1.7 million in 2015 , 2014 and 2013 , respectively. At December 31, 2015 , the future minimum payments under non-cancellable operating leases and purchase obligations were as follows: Operating Leases (a) Purchase Obligations (b) 2016 $ 1,273 $ 16,573 2017 1,140 14,771 2018 720 5,490 2019 448 3,826 2020 400 3,826 Thereafter 431 19,856 Total $ 4,412 $ 64,342 (a) Operating leases include leases on buildings, machinery and equipment under various operating leases. (b) Purchase obligations primarily consist of payments expected to be made on a natural gas transportation contract and purchases of wood chips. |
Quarterly Results for 2015 and
Quarterly Results for 2015 and 2014 (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2015 and 2014 (Unaudited) | Quarterly Results for 2015 and 2014 (Unaudited) Quarter Ended Total Year March 28 June 27 September 26 December 31 2015 Net Sales $ 221,348 $ 220,892 $ 257,590 $ 241,554 $ 941,384 Gross Margin 36,872 45,021 70,169 50,392 202,454 Operating Income 23,946 8,585 57,962 29,030 119,523 Net Income (Loss) 10,521 (312 ) 32,291 12,757 55,257 Basic earnings per share 0.25 (0.01 ) 0.77 0.30 1.31 Diluted earnings per share 0.25 (0.01 ) 0.76 0.30 1.30 Quarter Ended March 31 June 28 September 27 December 31 Total Year 2014 Net Sales $ 243,499 $ 212,531 $ 253,695 $ 247,964 $ 957,689 Gross Margin 54,780 52,314 55,689 60,964 223,747 Operating Income 43,364 6,210 41,678 (28,297 ) 62,955 Net Income (Loss) 30,947 4,561 19,408 (23,261 ) 31,655 Basic earnings per share (a) 0.73 0.11 0.46 (0.55 ) 0.75 Diluted earnings per share (a) 0.73 0.11 0.46 (0.55 ) 0.75 (a) In conjunction with the Separation, 42,176,565 shares of the Company’s common stock were distributed to Rayonier shareholders. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, this amount has been assumed to be outstanding as of the beginning of each period prior to the Distribution presented in the calculation of weighted-average shares. Prior to the Separation, there were no dilutive shares since the Company had no outstanding equity awards. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Description Balance at Beginning of Year Charged to Cost and Expenses Deductions Balance at End of Year Allowance for doubtful accounts: Year ended December 31, 2015 $ 151 $ — $ — $ 151 Year ended December 31, 2014 140 11 — 151 Year ended December 31, 2013 140 — — 140 Deferred tax asset valuation allowance: Year ended December 31, 2015 $ 20,517 $ — $ (815 ) $ 19,702 Year ended December 31, 2014 24,588 — (4,071 ) 20,517 Year ended December 31, 2013 1,201 23,387 (a) — 24,588 Self-insurance liabilities (b): Year ended December 31, 2015 $ 1,947 $ (734 ) (c) $ (624 ) $ 589 Year ended December 31, 2014 — 2,361 (414 ) 1,947 Year ended December 31, 2013 — — — — (a) The increase in the valuation allowance during 2013 was primarily related to Georgia investment tax credits earned on the CSE project. (b) Prior to the Separation, self-insurance liabilities were recorded by Rayonier. As a result, the Company did not record self-insurance liabilities until the Separation on June 27, 2014. (c) The decrease in the self-insurance liabilities is due to an adjustment based on the annual actuarial review. |
Basis of Presentation and New27
Basis of Presentation and New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | On June 27, 2014, Rayonier Advanced Materials Inc. (“Rayonier Advanced Materials” or the “Company”) separated (the “Separation”) from its former parent, Rayonier Inc. (“Rayonier”) through the distribution to its stockholders of 42,176,565 shares of common stock (the “Distribution”). Prior to the Separation, the Company’s results of operations, financial position and cash flows consisted of the performance fibers segment of Rayonier and an allocable portion of its corporate costs (together, “Rayonier’s performance fibers business” or the “performance fibers business”). These financial statements have been presented as if the performance fibers business had been combined for all periods presented. All intercompany transactions are eliminated. Historically, financial statements had not been prepared for the performance fibers business; the accompanying financial statements for the Company have been derived from the historical accounting records of Rayonier. The statements of income for periods prior to the Separation 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, for prior periods, 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 Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2015 , consists entirely of the consolidated results of Rayonier Advanced Materials. The Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2014 consist of the consolidated results of Rayonier Advanced Materials for the six months ended December 31, 2014 and the combined results of the performance fibers business for the six months ended June 27, 2014 . The Company’s Consolidated Statements of Income, Comprehensive Income and Cash Flows for the year ended December 31, 2013 , consists entirely of the combined results of the performance fibers business. The Company’s Consolidated Balance Sheets as of December 31, 2015 and 2014 consist of the consolidated balances of Rayonier Advanced Materials. |
Principles of Consolidation | The consolidated financial statements include Rayonier Advanced Materials, as well as the Company’s wholly owned subsidiaries. All intercompany balances and transactions are eliminated. |
Fiscal Year | Prior to the Separation, the Company’s quarter and fiscal year ends were the last day of the calendar quarter and calendar year, respectively. In connection with the Separation, the Company changed its interim reporting periods to the last Saturday of the fiscal quarter. The Company’s fiscal year end is the last day of the calendar year. As the effect on prior interim period results was not material, prior periods have not been revised. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in estimating and therefore actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less. |
Accounts Receivable and Allowance for Doubtful Accounts | Trade accounts receivable are recorded at invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company's allowance is established based on historical patterns of accounts receivable collections and general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of the Company’s receivables or a customer’s financial condition. Write-offs are recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. |
Inventory | Finished goods, work-in-process and raw materials inventories are valued at the lower of cost, as determined on the first-in, first-out basis, or market. Manufacturing and maintenance supplies are valued at average cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow-moving inventories is reviewed periodically. |
Property, Plant, Equipment and Depreciation | Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. Production related plant and equipment are depreciated using the units-of-production method. The total units of production used to calculate depreciation expense is determined by factoring annual production days, based on normal production conditions, by the economic useful life of the asset involved. The Company depreciates its non-production assets, including office, lab and transportation equipment, using the straight-line depreciation method over 3 to 25 years. Buildings and land improvements are depreciated using the straight-line method over 15 to 35 years and 5 to 30 years, respectively. Depreciation expense reflected in cost of sales in the Consolidated Statements of Income was $87.5 million , $84.6 million and $73.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Gains and losses on the retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets that are held and used is measured by net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flow model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. |
Capitalized Interest | Interest from external borrowings is capitalized on major projects with an expected construction period of one year or longer. The interest costs are added to the cost of the underlying basis of the property, plant and equipment and amortized over the useful life of the assets. |
Fair Value Measurements | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy that prioritizes the inputs used to measure fair value was established as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The valuation methodology used for measuring the fair value of these asset categories was as follows: Level 1 — Net asset value in an observable market. Level 2 — Assets classified as level two are held in collective trust funds. The net asset value of a collective trust is calculated by determining the fair value of the fund’s underlying assets, deducting its liabilities and dividing by the units outstanding as of the valuation date. These funds are not publicly traded; however, the unit price calculation is based on observable market inputs of the funds’ underlying assets. |
Revenue Recognition | The Company generally recognizes sales when persuasive evidence of an agreement exists, delivery of products has occurred, the sales price to the buyer is fixed and determinable and collectibility is reasonably assured. Generally, title passes upon delivery to the agreed upon location. Based on the time required to reach each location, customer orders are generally received in one period with the corresponding revenue recognized in a subsequent period. As such, there could be substantial variation in orders received and revenue recognized from period to period. Customer incentives are recorded as a reduction of gross sales within the same period that revenue from the sale is recognized. Payments from customers made in advance of the recognition of revenue are included in accrued customer incentives and prepayments. |
Shipping and Handling Cost | Shipping and handling costs, such as freight to the customers’ destinations, are included in cost of goods sold in the Consolidated Statements of Income. |
Environmental Costs | The Company has established liabilities to assess, remediate, maintain and monitor sites related to disposed operations from which no current or future benefit is discernible. These obligations are established based on projected spending over the next 20 years and require significant estimates to determine the proper amount at any point in time. The projected period, from 2016 through 2035 , reflects the time during which potential future costs are both estimable and probable. As new information becomes available, these cost estimates are updated and the recorded liabilities are adjusted appropriately. Environmental liabilities are accounted for on an undiscounted basis and are reflected in current and non-current “Liabilities for disposed operations” in the Consolidated Balance Sheets. |
Employee Benefit Plans | The determination of expense and funding requirements for the Company’s defined benefit pension plan, unfunded excess pension plan and postretirement health care and life insurance plans are largely based on a number of actuarial assumptions. The key assumptions include discount rate, return on assets, salary increases, health care cost trends, mortality rates, longevity and service lives of employees. Periodic pension and other postretirement expense is included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Income. At December 31, 2015 and 2014 , the pension plans were in a net liability position. The estimated amount to be paid in the next 12 months is recorded in “Accrued payroll and benefits” on the Consolidated Balance Sheets, with the remainder recorded as a long-term liability in “Pension and other postretirement benefits.” Changes in the funded status of the Company’s plans are recorded through comprehensive income in the year in which the changes occur. Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in Stockholders’ (deficit) equity (net of taxes). If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the average future service period of employees. |
Income Taxes | For periods prior to the Separation, the Company was a subsidiary of Rayonier and, for purposes of U.S. federal and state income taxes, was not directly subject to income taxes but was included in the income tax return of Rayonier TRS Holdings Inc., a wholly owned subsidiary of Rayonier. In the accompanying Consolidated Financial Statements for periods prior to the Separation, the Company’s provision for income taxes has been determined on a separate return basis which takes into account the impact of the Alternative Fuel Mixture Credit (“AFMC”) and subsequent exchanges for the Cellulosic Biofuel Producer Credit (“CBPC”). The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not such deferred tax assets will not be realized. The Company’s income tax returns are subject to audit by U.S. federal and state taxing authorities. In evaluating the tax benefits associated with various tax filing positions, the Company records a tax benefit for an uncertain tax position if it is more-likely-than-not to be realized upon ultimate settlement of the issue. The Company records a liability for an uncertain tax position that does not meet this criterion. The Company adjusts its liabilities for unrecognized tax benefits in the period in which it is determined the issue is settled with the taxing authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new facts or information becomes available. Liabilities for unrecognized tax benefits are included in “Other non-current liabilities” in the Company’s Consolidated Balance Sheets. |
New or Recently Adopted Accounting Pronouncements | In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Presentation of Deferred Taxes . The update requires deferred tax assets and liabilities to be classified as noncurrent in the classified statement of financial position. It is effective for annual periods beginning after December 15, 2017 with early adoption permitted. The Company has elected early adoption as of December 31, 2015 and has applied this update retrospectively to all periods presented in this Form 10-K. Early adoption was elected as the amendments in this ASU simplify both the cost and complexity of income tax asset and liability reporting. The effect of this accounting change on the Consolidated Balance Sheet as of December 31, 2014 was a reclassification to noncurrent assets of $8.3 million in deferred tax assets previously classified as current assets. The change had no impact on net income, equity or earnings per share. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory . The update requires inventory to be measured at the lower of cost and net realizable value. It is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The update is not expected to have a material impact on the Company’s financial statements as current inventory valuation practices already approximate the lower of cost or net realizable value. In April 2015, the FASB issued 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 effect of this accounting change on prior periods is expected to be a reclassification to “Long-term debt” of debt issuance costs currently capitalized in “Other assets.” As of December 31, 2015 , approximately $11.2 million and $0.3 million in debt issuance costs are capitalized in “Other assets” and “Prepaid and other current assets,” respectively. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard. This standard will supersede virtually all current revenue recognition guidance. The core principle is that a company will recognize revenue when it transfers goods or services to customers for an amount that reflects consideration to which the company expects to be entitled to in exchange for those goods or services. This standard will be effective for the Company’s first quarter 2018 Form 10-Q filing with full or modified retrospective adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. |
Fair Value of Financial Instruments | 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. |
Segment and Geographical Info28
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue for Major Product Lines | Sales by the two major product lines was comprised of the following for the three years ended December 31 : Sales by Product Line 2015 2014 2013 Cellulose specialties $ 766,940 $ 843,473 $ 929,931 Commodity products and other 174,444 114,216 116,672 Total sales $ 941,384 $ 957,689 $ 1,046,603 |
Revenue from External Customers by Geographic Areas | Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination (a) 2015 % 2014 % 2013 % United States $ 398,739 42 $ 422,648 44 $ 437,048 42 China 256,979 27 255,954 27 281,407 27 Japan 132,480 14 138,961 14 150,306 14 Europe 91,847 10 93,957 10 79,138 7 Latin America 8,176 1 5,510 1 60,477 6 Other Asia 25,373 3 33,250 3 29,097 3 All other 27,790 3 7,409 1 9,130 1 Total sales $ 941,384 100 $ 957,689 100 $ 1,046,603 100 (a) All sales to foreign countries are denominated in U.S. dollars. |
Schedule of Revenue by Major Customers by Reporting Segments | The Company had sales to four significant customers which represented over 10 percent of total sales for the three years ended December 31 : Percentage of Sales 2015 2014 2013 Eastman Chemical Company 28% 31% 21% Nantong Cellulose Fibers, Co., Ltd. 18% 18% 19% Daicel Corporation 13% 15% 13% Celanese Acetate, LLC 0% 0% 14% |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31, 2015 and 2014 , the Company’s property, plant and equipment included the following: 2015 2014 Land and land improvements $ 15,426 $ 15,411 Buildings 181,707 180,304 Machinery and equipment 1,764,477 1,777,299 Construction in progress 65,197 37,630 Total property, plant and equipment, gross 2,026,807 2,010,644 Accumulated depreciation (1,222,969 ) (1,167,269 ) Total property, plant and equipment, net $ 803,838 $ 843,375 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2015 and 2014 , the Company’s inventory included the following: 2015 2014 Finished goods $ 103,866 $ 120,221 Work-in-progress 2,344 2,418 Raw materials 16,593 14,670 Manufacturing and maintenance supplies 2,606 2,900 Total inventory $ 125,409 $ 140,209 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of December 31, 2015 and 2014 , the Company’s debt consisted of the following: 2015 2014 Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 1.92% at December 31, 2015 (a) $ 55,763 $ 106,973 Term A-2 Loan Facility borrowings maturing through June 2021 bearing interest at LIBOR plus 1.08% (after consideration of 0.67% patronage benefit), interest rate of 1.50% at December 31, 2015 (b) 262,156 287,843 Senior Notes due 2024 at a fixed interest rate of 5.50% 550,000 550,000 Total debt 867,919 944,816 Less: Current maturities of long-term debt (8,226 ) (8,400 ) Long-term debt $ 859,693 $ 936,416 (a) The Term A-1 Loan includes an unamortized issue discount of approximately $0.2 million at December 31, 2015 . The face amount of the liability is $56.0 million . (b) The Term A-2 Loan includes an unamortized issue discount of approximately $0.6 million at December 31, 2015 . The face amount of the liability is $262.8 million . |
Schedule of Maturities of Long-term Debt | Principal payments due during the next five years and thereafter are as follows: 2016 $ 8,400 2017 9,775 2018 11,150 2019 38,225 2020 2,900 Thereafter 798,250 Total principal payments $ 868,700 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amount, Estimated Fair Values and Categorization Under Fair Value Hierarchy | 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 December 31, 2015 and 2014 , using market information and what management believes to be appropriate valuation methodologies: December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 101,303 $ 101,303 $ — $ 65,977 $ 65,977 $ — Current maturities of long-term debt (8,226 ) — (8,400 ) (8,400 ) — (8,400 ) Fixed-rate long-term debt (550,000 ) — (435,171 ) (550,000 ) — (453,063 ) Variable-rate long-term debt (309,693 ) — (310,300 ) (386,416 ) — (387,400 ) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss (“AOCI”) was comprised of the following for the three years ended December 31 : Unrecognized components of employee benefit plans, net of tax 2015 2014 2013 Balance, January 1 $ (103,444 ) $ (39,699 ) $ (64,670 ) Amounts reclassified from accumulated other comprehensive loss (a) 9,427 5,804 5,269 Other comprehensive loss before reclassifications (15,603 ) (34,130 ) 19,702 Net other comprehensive income (loss) (6,176 ) (28,326 ) 24,971 Net transfer from Rayonier (b) — (35,419 ) — Balance, December 31 $ (109,620 ) $ (103,444 ) $ (39,699 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information. (b) Prior to the Separation, certain of the Company’s employees participated in employee benefit plans sponsored by Rayonier. The Company did not record an asset, liability or accumulated other comprehensive loss to recognize the funded status of the Rayonier plans on the Consolidated Balance Sheet until the Separation. See Note 9 — Stockholders' (Deficit) Equity for additional information. |
Stockholders' (Deficit) Equity
Stockholders' (Deficit) Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' (Deficit) Equity | An analysis of stockholders’ (deficit) equity for each of the three years ended December 31 is shown below (share amounts not in thousands): Common Stock Retained Earnings (Accumulated Deficit) Transfers (to) from Rayonier, net Accumulated Other Comprehensive Loss Total Stockholders' (Deficit) Equity Shares Par Value Additional Paid in Capital Balance, December 31, 2012 — $ — $ — $ 1,196,127 $ (406,753 ) $ (64,670 ) $ 724,704 Net income — — — 219,767 — — 219,767 Net gain from pension and postretirement plans — — — — — 24,971 24,971 Net transfers to Rayonier — — — — (1,141 ) — (1,141 ) Balance, December 31, 2013 — $ — $ — $ 1,415,894 $ (407,894 ) $ (39,699 ) $ 968,301 Net income — — — 31,655 — — 31,655 Net loss from pension and postretirement plans — — — — — (28,326 ) (28,326 ) Net transfers to Rayonier — — — — (1,001,509 ) (35,419 ) (1,036,928 ) Reclassification to additional paid-in capital at distribution date — — 53,696 (1,463,099 ) 1,409,403 — — Issuance of common stock at the Separation 42,176,565 422 (422 ) — — — — Issuance of common stock under incentive stock plans 440,364 4 645 — — — 649 Stock-based compensation — — 4,695 — — — 4,695 Excess tax benefit on stock-based compensation — — 266 — — — 266 Repurchase of common stock (610 ) — (92 ) — — — (92 ) Adjustments to tax assets and liabilities associated with the Distribution — — 3,294 — — — 3,294 Dividends ($0.14 per share) — — — (5,926 ) — — (5,926 ) Balance, December 31, 2014 42,616,319 $ 426 $ 62,082 $ (21,476 ) $ — $ (103,444 ) $ (62,412 ) Net income — — — 55,257 — — 55,257 Net loss from pension and postretirement plans — — — — — (6,176 ) (6,176 ) Reclassification to additional paid-in capital — — 864 — — — 864 Issuance of common stock under incentive stock plans 258,176 3 5 — — — 8 Stock-based compensation — — 9,832 — — — 9,832 Excess tax benefit on stock-based compensation — — (2,558 ) — — — (2,558 ) Repurchase of common stock (2,060 ) — (12 ) — — — (12 ) Dividends ($0.28 per share) — — — (11,942 ) — — (11,942 ) Balance, December 31, 2015 42,872,435 $ 429 $ 70,213 $ 21,839 $ — $ (109,620 ) $ (17,139 ) |
Reconciliation of Net Transfers to and Net Payments (to) from Former Parent Company | There were no net payments to/from Rayonier for the year ended December 31, 2015 . 2014 2013 Allocation of costs from Rayonier (a) $ (35,279 ) $ (67,781 ) Cash receipts received by Rayonier on Company’s behalf 472,780 1,073,275 Cash disbursements made by Rayonier on Company’s behalf (484,318 ) (1,006,635 ) Net distribution to Rayonier on Separation (906,200 ) — Net liabilities from transfer of assets and liabilities with Rayonier (b) (83,911 ) — Net transfers to Rayonier (1,036,928 ) (1,141 ) Non-cash adjustments: Stock-based compensation (3,562 ) (6,230 ) Net liabilities from transfer of assets and liabilities with Rayonier (b) 83,911 — Net payments to Rayonier per the Condensed Consolidated Statements of Cash Flows, prior to Separation $ (956,579 ) $ (7,371 ) (a) Included in the costs allocated to the Company from Rayonier are expense allocations for certain corporate functions historically performed by Rayonier and not allocated to its operating segments. See Note 2 — Related Party Transactions . (b) As a result of the Separation, certain assets and liabilities were transferred to the Company that were not included in the historical financial statements for periods prior to the Separation. These non-cash capital contributions included: • $73.9 million of disposed operations liabilities (See Note 13 - Liabilities for Disposed Operations for additional information) • $73.8 million of employee benefit plan liabilities (See Note 15 - Employee Benefit Plans for additional information) • $67.4 million of deferred tax assets (primarily associated with the liabilities above) • $3.6 million of other liabilities, net |
Earnings Per Share of Common 35
Earnings Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted EPS | The following table provides details of the calculations of basic and diluted EPS for the three years ended December 31 : 2015 2014 2013 Net income $ 55,257 $ 31,655 $ 219,767 Shares used for determining basic earnings per share of common stock 42,194,891 42,166,629 42,176,565 Dilutive effect of: Stock options — 47,073 — Performance and restricted shares 27,968 25,980 — Shares used for determining diluted earnings per share of common stock 42,222,859 42,239,682 42,176,565 Basic earnings per share (not in thousands) $ 1.31 $ 0.75 $ 5.21 Diluted earnings per share (not in thousands) $ 1.30 $ 0.75 $ 5.21 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | Anti-dilutive shares excluded from the computation of diluted earnings per share: 2015 2014 2013 Stock options 447,524 229,001 — Restricted stock 220,348 6,282 — Performance shares 3,379 — — Total 671,251 235,283 — |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Summary of Other Operating Expense, Net | Other operating expense, net was comprised of the following for the three years ended December 31 : 2015 2014 2013 Increase in environmental liabilities for disposed operations (a) $ 6,930 $ 70,129 $ — One-time separation and legal costs (802 ) 25,680 6,033 Increase to environmental liabilities for disposed operations resulting from separation from Rayonier (b) — 18,419 — Non-cash impairment charge (c) 28,462 7,184 — Loss on sale or disposal of property, plant and equipment 998 2,123 2,390 Insurance settlement (1,000 ) (2,881 ) — Miscellaneous expense (income) 681 169 (259 ) Total $ 35,269 $ 120,823 $ 8,164 (a) The increase in environmental liabilities for disposed operations in 2015 and 2014 of $6.9 million and $70.1 million , respectively, reflects an increase to the estimates for the assessment, remediation and long-term monitoring and maintenance of the Company’s disposed operations sites over the next 20 years . See Note 13 — Liabilities for Disposed Operations for additional information. (b) The Company is subject to certain legal requirements relating to the provision of annual financial assurance regarding environmental remediation and post closure care at certain disposed sites. To comply with these requirements, the Company purchased surety bonds from an insurer, with the Company’s repayment obligations (if the bonds are drawn upon) secured by the issuance of a letter of credit by the Company’s revolving credit facility lender. As a result of the Separation and the Company’s obligations to procure financial assurance annually for the foreseeable future, the Company recorded a corresponding increase to liabilities for disposed operations. See Note 13 — Liabilities for Disposed Operations and Note 17 — Guarantees for additional information. (c) In light of the persistent imbalance of supply and demand in the cellulose specialties markets, on July 30, 2015, the Company announced a strategic asset repositioning at its Jesup, Georgia plant to better align its production assets to current market conditions, improve efficiency and restore commodity production throughput to approach historical levels. This repositioning resulted in the abandonment of certain long-lived assets, primarily at the Jesup plant. As a result, the abandoned assets were written down to salvage value and a $28.5 million pre-tax, non-cash impairment charge was recorded during the second quarter of 2015. The abandonment led management to conduct an impairment analysis on all long-lived assets being held and used on a combined plant level. Based on the impairment analysis performed, management concluded the assets were recoverable. In 2014, the Company determined certain pieces of property associated with its disposed operations should be assessed for impairment based on recent changes to remediation plans at four of its disposed operations sites. As a result, the Company concluded the land values were impaired and reduced the carrying value of those properties by approximately $7.2 million . |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for/(Benefit from) Income Taxes | The provision for income taxes consisted of the following: 2015 2014 2013 Current Federal $ 37,561 $ 42,183 $ 95,997 State and other (197 ) 305 4,312 37,364 42,488 100,309 Deferred Federal (11,073 ) (34,301 ) (31,051 ) State and other 1,316 (641 ) (110 ) (9,757 ) (34,942 ) (31,161 ) Changes in valuation allowance — 1,270 — Total $ 27,607 $ 8,816 $ 69,148 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate was as follows: 2015 2014 2013 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Domestic manufacturing production deduction (a) (4.2 ) (14.4 ) (3.4 ) CBPC reserve reversal — (11.8 ) — State credits (0.9 ) (2.9 ) — AFMC for CBPC exchange — — (6.5 ) Nondeductible executive compensation 1.2 2.4 — Research credit adjustment — 2.4 (1.0 ) Adjustment to prior tax returns — 2.7 — Change in valuation allowance — 3.1 — Nondeductible transaction costs — 4.0 — Change in state rate 1.4 — — Other 0.8 1.3 (0.2 ) Income tax rate as reported 33.3 % 21.8 % 23.9 % (a) The impact of the manufacturing deduction on the effective tax rate is greater in periods that include expenses that reduce pre-tax income but are not currently deductible for income tax purposes. |
Schedule of Temporary Differences and Resulting Deferred Tax Liability | The nature of the temporary differences and the resulting net deferred tax liability for the two years ended December 31 were as follows: 2015 2014 Gross deferred tax assets: Pension, postretirement and other employee benefits $ 70,180 $ 67,104 State tax credit carryforwards (a) 16,498 15,740 Environmental liabilities 55,945 56,508 Capitalized costs 14,088 14,042 State net operating losses (a) 3,204 4,892 Total gross deferred tax assets 159,915 158,286 Less: Valuation allowance (19,702 ) (20,517 ) Total deferred tax assets after valuation allowance 140,213 137,769 Gross deferred tax liabilities: Accelerated depreciation (41,006 ) (49,917 ) Other (1,787 ) (1,030 ) Total gross deferred tax liabilities (42,793 ) (50,947 ) Net deferred tax asset (b) $ 97,420 $ 86,822 (a) The following relates to tax credit carryforwards and net operating losses as of December 31, 2015 : Gross Amount Tax Effected Valuation Allowance Expiration State tax credit carryforwards $ 16,498 $ 16,498 $ 16,498 2018 - 2025 State net operating losses 85,014 3,204 3,204 2016 - 2033 (b) The Company elected to early adopt ASU 2015-17, Balance Sheet Presentation of Deferred Taxes, as of December 31, 2015 . The effect of this accounting change on prior periods was a reclassification to non-current assets of $8.3 million in deferred tax assets previously classified as current assets. See Note 1 — Basis of Presentation and New Accounting Pronouncements for more information. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending unrecognized tax benefits for the years ended December 31 is as follows: 2015 2014 2013 Balance at January 1, $ — $ 4,767 $ — Decreases related to prior year tax positions — (4,767 ) — Increases related to prior year tax positions — — 4,767 Balance at December 31, $ — $ — $ 4,767 |
Summary of Income Tax Examinations | The following table provides detail of tax years that remain open to examination by significant taxing jurisdictions: Taxing Jurisdiction Open Tax Years U.S. Internal Revenue Service 2009, 2011 - 2015 State of Florida 2009, 2011 - 2015 |
Liabilities for Disposed Oper38
Liabilities for Disposed Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Loss Contingencies by Site | An analysis of the activity for the year ended December 31, 2015 is as follows: Liabilities Assumed at Separation Expenditures Increase to Liabilities December 31, 2014 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2015 Liability Augusta, Georgia $ 10,838 $ (691 ) $ 12,060 $ 22,207 $ (1,187 ) $ 1,861 $ 22,881 Spartanburg, South Carolina 10,902 (710 ) 8,792 18,984 (933 ) (575 ) 17,476 Baldwin, Florida 10,172 (640 ) 14,996 24,528 (838 ) 3,270 26,960 Other SWP sites 27,471 (2,190 ) 12,116 37,397 (1,731 ) 226 35,892 Total SWP 59,383 (4,231 ) 47,964 103,116 (4,689 ) 4,782 103,209 Port Angeles, Washington 8,100 (1,109 ) 32,922 39,913 (1,040 ) 532 39,405 All other sites 6,357 (319 ) 7,662 13,700 (546 ) 1,616 14,770 Total $ 73,840 $ (5,659 ) $ 88,548 $ 156,729 $ (6,275 ) $ 6,930 $ 157,384 Less: Current portion (7,241 ) (12,034 ) Non-Current portion $ 149,488 $ 145,350 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Total stock-based compensation expense was allocated for the years ended December 31 as follows: 2015 2014 2013 Selling, general and administrative expenses $ 8,124 $ 7,763 $ 5,006 Cost of sales 1,868 975 1,224 Total stock-based compensation expense $ 9,992 $ 8,738 $ 6,230 |
Schedule of Weighted Average Assumptions and Fair Value Calculations of Options Granted | During the year ended December 31, 2015 , there were no options granted. The following chart provides a tabular overview of the weighted average assumptions and related fair value calculations of options granted for the years ended December 31, 2014 and December 31, 2013 : 2014 2013 Expected volatility 40.1 % 39.0 % Dividend yield 4.2 % 3.4 % Risk-free rate 2.2 % 1.0 % Expected life (in years) 6.3 6.3 Fair value per share of options granted $ 9.31 $ 14.00 Fair value of options granted $ 90 $ 703 |
Schedule of Outstanding Awards | A summary of the Company’s stock option activity is presented below for the year ended December 31, 2015 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2015 466,015 $ 31.73 Forfeited (7,750 ) 38.56 Exercised (460 ) 17.34 Expired (16,190 ) 30.36 Outstanding at December 31, 2015 441,615 $ 31.67 5.0 $ — Options vested and expected to vest 441,615 $ 31.67 5.0 $ — Options exercisable at December 31, 2015 371,845 $ 30.34 4.4 $ — |
Summary of Additional Information for Stock Options Granted to Employees | A summary of additional information pertaining to stock options granted to employees is presented below: 2015 2014 2013 Intrinsic value of options exercised (a) $ — $ 320 $ 772 Fair value of options vested $ 717 $ 90 $ 593 (a) Intrinsic value of stock options exercised is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier's stock at December 31, 2013 . |
Summary of Activity for Restricted Shares Granted to Employees | The following table summarizes the activity of restricted shares granted to employees for the three years ended December 31 : 2015 2014 2013 Restricted shares granted 277,298 172,894 10,200 Weighted average price of restricted shares granted $ 20.83 $ 41.51 $ 56.00 Intrinsic value of restricted stock outstanding (a) $ 3,763 $ 3,235 $ 666 Fair value of restricted stock vested $ 690 $ 100 $ 27 (a) Intrinsic value of restricted stock outstanding is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier’s stock at December 31, 2013 . |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity is presented below for the year ended December 31, 2015 : Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 145,085 $ 41.66 Granted 277,298 20.83 Forfeited (19,350 ) 25.07 Vested (18,650 ) 37.00 Outstanding at December 31, 2015 384,383 $ 28.41 |
Summary of Activity for Performance Shares Granted to Employees | The following table summarizes the activity of the Company’s performance share units granted to its employees for the three years ended December 31 : 2015 2014 2013 Performance-Based Stock Units Performance-Based Stock Units Performance-Based Restricted Stock Performance-Based Stock Units Common shares of stock reserved for performance shares 422,920 95,952 286,737 52,900 Weighted average fair value of performance share units granted $ 17.51 $ 42.27 $ 40.41 $ 58.99 Intrinsic value of outstanding performance share units (a) $ 2,070 $ 1,070 $ 3,197 $ 3,618 Fair value of performance shares vested $ — $ — $ — $ 962 Cash used to pay the minimum withholding tax requirements in lieu of receiving common shares $ — $ — $ — $ 1,199 (a) Intrinsic value of outstanding performance share units is based on the market price of the Company’s stock at December 31, 2015 and 2014 , and of Rayonier’s stock at December 31, 2013 . |
Summary of Performance Share Activity | A summary of the Company’s performance-share activity is presented below for the year ended December 31, 2015 : Performance-Based Stock Units Performance-Based Restricted Stock Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 47,977 $ 42.27 143,369 $ 40.52 Granted 214,403 17.51 — — Forfeited (2,943 ) 17.74 (1,671 ) 19.84 Canceled (a) (47,977 ) 42.27 — — Outstanding at December 31, 2015 211,460 $ 17.51 141,698 $ 40.76 (a) During the first quarter of 2015, performance shares granted in 2012 were canceled 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 . |
Summary of Performance Share Assumptions Used in Fair Value Calculation | The following chart provides a tabular overview of the weighted average assumptions used in calculating the fair value of the awards granted for the two years ended December 31 : 2015 2014 Expected volatility 17.3 % 16.9 % Risk-free rate 1.0 % 0.7 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following tables set forth the changes in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement plans for the two years ended December 31 : Pension Postretirement Change in Projected Benefit Obligation 2015 2014 2015 2014 Projected benefit obligation at beginning of year $ 409,356 $ 173,077 $ 26,568 $ 17,178 Service cost 5,977 4,099 1,006 798 Interest cost 15,228 11,379 919 916 Actuarial loss (gain) (7,073 ) 45,171 (2,049 ) 4,417 Plan amendments (a) — — 1,321 — Employee contributions — — 361 — Benefits paid (18,455 ) (13,468 ) (1,167 ) (1,309 ) Assumption of balance from parent at spin — 189,098 — 4,568 Projected benefit obligation at end of year $ 405,033 $ 409,356 $ 26,959 $ 26,568 (a) During 2015 , the Fernandina postretirement medical plan was amended as a result of the Company’s negotiations with the plant’s unions. The amendment changed the plan from a fully insured health maintenance organization plan to a self-funded high deductible plan and added benefits for plan retiree spouses. The plan was also remeasured at the amendment date. The impact of the plan amendment and the remeasurement was a net increase in the projected benefit obligation of $1.3 million . |
Schedule of Changes in Fair Value of Plan Assets | Change in Plan Assets Fair value of plan assets at beginning of year $ 291,087 $ 170,218 $ — $ — Actual return on plan assets (6,627 ) 13,359 — — Employer contributions 2,312 1,056 806 1,309 Employee contributions — — 361 — Benefits paid (18,455 ) (13,468 ) (1,167 ) (1,309 ) Other expense (2,162 ) (1,175 ) — — Assumption of balance from parent at spin — 121,097 — — Fair value of plan assets at end of year $ 266,155 $ 291,087 $ — $ — |
Schedule of Net Funded Status | Funded Status at End of Year: Net accrued benefit cost $ (138,878 ) $ (118,269 ) $ (26,959 ) $ (26,568 ) |
Schedule of Amounts Recognized in Balance Sheet | Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2015 2014 2015 2014 Non-current assets $ — $ — $ — $ — Current liabilities (2,268 ) (2,036 ) (1,485 ) (1,463 ) Non-current liabilities (136,610 ) (116,233 ) (25,474 ) (25,105 ) Net amount recognized $ (138,878 ) $ (118,269 ) $ (26,959 ) $ (26,568 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Net gains or losses recognized in other comprehensive income for the three years ended December 31 are as follows: Pension Postretirement 2015 2014 2013 2015 2014 2013 Net (losses) gains $ (24,950 ) $ (49,577 ) $ 25,411 $ 759 $ (3,807 ) $ 5,616 Net gains or losses and prior service costs or credits reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows: Pension Postretirement 2015 2014 2013 2015 2014 2013 Amortization of losses $ 13,434 $ 7,620 $ 6,494 $ 676 $ 597 $ 549 Amortization of prior service (credit) cost 750 1,161 1,292 (158 ) (265 ) (39 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Net losses, prior service costs or credits and plan amendments that have not yet been included in pension and postretirement expense for the two years ended December 31 , which have been recognized as a component of AOCI are as follows: Pension Postretirement 2015 2014 2015 2014 Prior service cost $ (3,776 ) $ (4,527 ) $ 27 $ (32 ) Net losses (161,519 ) (150,003 ) (8,585 ) (11,298 ) Plan amendment — — 1,797 3,293 Deferred income tax benefit 59,975 56,206 2,461 2,917 AOCI $ (105,320 ) $ (98,324 ) $ (4,300 ) $ (5,120 ) |
Schedule of Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets | For pension and postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the two years ended December 31 : 2015 2014 Projected benefit obligation $ 431,992 $ 435,219 Accumulated benefit obligation 417,397 394,263 Fair value of plan assets 266,155 291,087 |
Schedule of Net Benefit Costs | The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31 : Pension Postretirement Components of Net Periodic Benefit Cost 2015 2014 2013 2015 2014 2013 Service cost $ 5,977 $ 4,099 $ 2,790 $ 1,006 $ 798 $ 941 Interest cost 15,228 11,379 6,900 919 916 741 Expected return on plan assets (23,234 ) (18,333 ) (12,515 ) — — — Amortization of prior service (credit) cost 750 1,161 1,292 (158 ) (265 ) (39 ) Amortization of losses 13,434 7,620 6,494 676 597 549 Net periodic benefit cost (a) $ 12,155 $ 5,926 $ 4,961 $ 2,443 $ 2,046 $ 2,192 (a) A portion of the net periodic benefit cost is recorded in cost of goods sold in the Consolidated Statements of Income. |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated pre-tax amounts that will be amortized from AOCI into net periodic benefit cost in 2016 are as follows: Pension Postretirement Amortization of loss $ 10,881 $ 524 Amortization of prior service cost 761 (139 ) Total amortization of AOCI loss $ 11,642 $ 385 |
Schedule of Assumptions Used | The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31 : Pension Postretirement 2015 2014 2013 2015 2014 2013 Assumptions used to determine benefit obligations at December 31: Discount rate 4.03 % 3.71 % 4.60 % 3.98 % 3.65 % 4.60 % Rate of compensation increase 4.45 % 4.50 % 4.60 % 4.50 % 4.50 % 4.50 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.71 % 4.04 % 3.70 % 3.65 % 4.00 % 3.60 % Expected long-term return on plan assets 8.50 % 8.50 % 8.50 % n/a n/a n/a Rate of compensation increase 4.45 % 4.50 % 4.60 % 4.50 % 4.50 % 4.50 % |
Schedule of Health Care Cost Trend Rates | The following table sets forth the assumed health care cost trend rates as of December 31 : Postretirement 2015 2014 Health care cost trend rate assumed for next year 7.00 % 7.00 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that ultimate trend rate is reached 2019 2018 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The following table shows the effect of a one percentage point change in assumed health care cost trends: 1 Percent Effect on: Increase Decrease Total of service and interest cost components $ 209 $ (203 ) Accumulated postretirement benefit obligation 2,245 (1,193 ) |
Schedule of Allocation of Plan Assets | The Company’s pension plan asset allocation at December 31, 2015 and 2014 , and target allocation ranges by asset category are as follows: Percentage of Plan Assets Target Allocation Range Asset Category 2015 2014 Domestic equity securities 41 % 41 % 35-45% International equity securities 24 % 23 % 20-30% Domestic fixed income securities 27 % 28 % 25-29% International fixed income securities 5 % 5 % 3-7% Real estate fund 3 % 3 % 2-4% Total 100 % 100 % The Company’s Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the pension plans’ investment program which is designed to maximize returns and provide sufficient liquidity to meet plan obligations while maintaining acceptable risk levels. The investment approach emphasizes diversification by allocating the plans’ assets among asset categories and selecting investment managers whose various investment methodologies will be minimally correlative with each other. Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier Advanced Materials common stock at December 31, 2015 or 2014 . Fair Value Measurements The following table sets forth by level, within the fair value hierarchy (see Note 1 — Basis of Presentation and New Accounting Pronouncements to the Consolidated Financial Statements for definition), the assets of the plans as of December 31, 2015 and 2014 . Fair Value at December 31, 2015 Fair Value at December 31, 2014 Asset Category Level 1 Level 2 Total Level 1 Level 2 Total Domestic equity securities $ 23,689 $ 85,011 $ 108,700 $ 23,476 $ 94,163 $ 117,639 International equity securities 28,773 33,390 62,163 33,496 33,425 66,921 Domestic fixed income securities — 70,903 70,903 — 79,193 79,193 International fixed income securities 12,343 — 12,343 12,767 — 12,767 Real estate fund 9,077 — 9,077 9,387 — 9,387 Short-term investments — 2,969 2,969 1,038 4,142 5,180 Total $ 73,882 $ 192,273 $ 266,155 $ 80,164 $ 210,923 $ 291,087 |
Schedule of Expected Benefit Payments | Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2016 $ 20,253 $ 1,454 2017 21,024 1,553 2018 21,750 1,677 2019 22,428 1,626 2020 22,986 1,577 2021 — 2025 121,403 7,491 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of December 31, 2015 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Standby letters of credit (a) $ 14,216 Surety bonds (b) 56,201 Total financial commitments $ 70,417 (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 2016 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 2016 and 2019 . They are expected to be renewed annually as required. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2015 , the future minimum payments under non-cancellable operating leases and purchase obligations were as follows: Operating Leases (a) Purchase Obligations (b) 2016 $ 1,273 $ 16,573 2017 1,140 14,771 2018 720 5,490 2019 448 3,826 2020 400 3,826 Thereafter 431 19,856 Total $ 4,412 $ 64,342 (a) Operating leases include leases on buildings, machinery and equipment under various operating leases. (b) Purchase obligations primarily consist of payments expected to be made on a natural gas transportation contract and purchases of wood chips. |
Quarterly Results for 2015 an43
Quarterly Results for 2015 and 2014 (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended Total Year March 28 June 27 September 26 December 31 2015 Net Sales $ 221,348 $ 220,892 $ 257,590 $ 241,554 $ 941,384 Gross Margin 36,872 45,021 70,169 50,392 202,454 Operating Income 23,946 8,585 57,962 29,030 119,523 Net Income (Loss) 10,521 (312 ) 32,291 12,757 55,257 Basic earnings per share 0.25 (0.01 ) 0.77 0.30 1.31 Diluted earnings per share 0.25 (0.01 ) 0.76 0.30 1.30 Quarter Ended March 31 June 28 September 27 December 31 Total Year 2014 Net Sales $ 243,499 $ 212,531 $ 253,695 $ 247,964 $ 957,689 Gross Margin 54,780 52,314 55,689 60,964 223,747 Operating Income 43,364 6,210 41,678 (28,297 ) 62,955 Net Income (Loss) 30,947 4,561 19,408 (23,261 ) 31,655 Basic earnings per share (a) 0.73 0.11 0.46 (0.55 ) 0.75 Diluted earnings per share (a) 0.73 0.11 0.46 (0.55 ) 0.75 (a) In conjunction with the Separation, 42,176,565 shares of the Company’s common stock were distributed to Rayonier shareholders. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, this amount has been assumed to be outstanding as of the beginning of each period prior to the Distribution presented in the calculation of weighted-average shares. Prior to the Separation, there were no dilutive shares since the Company had no outstanding equity awards. |
Basis of Presentation and New44
Basis of Presentation and New Accounting Pronouncements - The Separation (Details) - shares | Jun. 27, 2014 | Dec. 31, 2014 |
Common Stock [Member] | ||
Basis of Presentation [Line Items] | ||
Issuance of common stock at the Separation (shares) | 42,176,565 | 42,176,565 |
Basis of Presentation and New45
Basis of Presentation and New Accounting Pronouncements - Property, Plant, Equipment and Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, cost of sales | $ 87.5 | $ 84.6 | $ 73.6 |
Non-production Performance Fiber Assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Non-production Performance Fiber Assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 25 years | ||
Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 35 years | ||
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years |
Basis of Presentation and New46
Basis of Presentation and New Accounting Pronouncements - Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Construction period for capitalized interest | 1 year | ||
Interest costs capitalized | $ 1.3 | $ 0.1 | $ 6.1 |
Basis of Presentation and New47
Basis of Presentation and New Accounting Pronouncements Basis of Presentation and New Accounting Pronouncements - Environmental Costs (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Environmental loss contingencies term | 20 years |
Basis of Presentation and New48
Basis of Presentation and New Accounting Pronouncements Basis of Presentation and New Accounting Pronouncements - Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Threshold for actuarial gains and losses | 10.00% |
Basis of Presentation and New49
Basis of Presentation and New Accounting Pronouncements - New or Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Reclassification to noncurrent assets in deferred tax assets | $ 97,420 | $ 86,822 |
Other Assets [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Debt issuance costs capitalized in Other Assets | 11,200 | |
Prepaid and Other Current Assets [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Debt issuance costs capitalized in Other Assets | $ 300 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Reclassification to noncurrent assets in deferred tax assets | 8,300 | |
Reclassification from current assets | $ 8,300 |
Basis of Presentation and New50
Basis of Presentation and New Accounting Pronouncements - Subsequent Events (Details) $ / shares in Units, $ in Millions | 2 Months Ended | 12 Months Ended | |||
Feb. 26, 2016USD ($)$ / shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Dec. 31, 2013$ / shares | May. 22, 2014USD ($) | |
Subsequent Event [Line Items] | |||||
Common stock cash dividend declared (in dollars per share) | $ / shares | $ 0.28 | $ 0.14 | $ 0 | ||
Senior Notes [Member] | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 550 | ||||
Interest rate | 5.50% | 5.50% | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of subsequent events | 2 | ||||
Common stock cash dividend declared (in dollars per share) | $ / shares | $ 0.07 | ||||
Subsequent Event [Member] | Senior Notes [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Repurchased Face Amount | $ 18.6 | ||||
Senior notes repurchased | 13.7 | ||||
Gain (loss) on retirement of senior notes | 4.6 | ||||
Write-off of unamortized debt issuance costs | 0.3 | ||||
U.S. federal and state income tax from gain on retirement | $ 1.7 |
Related Party Transactions (Det
Related Party Transactions (Details) - Rayonier [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Selling and general expenses | $ 0 | $ 8,000,000 | $ 16,600,000 |
Operating Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Operating expenses | $ 0 | $ 27,300,000 | $ 51,100,000 |
Segment and Geographical Info52
Segment and Geographical Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015officefacilitycustomerproduct_line | |
Segment Reporting [Abstract] | |
Number of product lines | product_line | 2 |
Number of chip facilities | facility | 5 |
Number of foreign sales offices | office | 3 |
Number of significant customers | customer | 4 |
Segment and Geographical Info53
Segment and Geographical Information - Revenue for Major Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Information [Line Items] | |||||||||||
Net Sales | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 247,964 | $ 253,695 | $ 212,531 | $ 243,499 | $ 941,384 | $ 957,689 | $ 1,046,603 |
Cellulose specialties [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 766,940 | 843,473 | 929,931 | ||||||||
Commodity products and other [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | $ 174,444 | $ 114,216 | $ 116,672 |
Segment and Geographical Info54
Segment and Geographical Information - Sales by Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 247,964 | $ 253,695 | $ 212,531 | $ 243,499 | $ 941,384 | $ 957,689 | $ 1,046,603 |
Percentage of Sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 398,739 | $ 422,648 | $ 437,048 | ||||||||
Percentage of Sales | 42.00% | 44.00% | 42.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 256,979 | $ 255,954 | $ 281,407 | ||||||||
Percentage of Sales | 27.00% | 27.00% | 27.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 132,480 | $ 138,961 | $ 150,306 | ||||||||
Percentage of Sales | 14.00% | 14.00% | 14.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 91,847 | $ 93,957 | $ 79,138 | ||||||||
Percentage of Sales | 10.00% | 10.00% | 7.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Latin America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 8,176 | $ 5,510 | $ 60,477 | ||||||||
Percentage of Sales | 1.00% | 1.00% | 6.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Other Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 25,373 | $ 33,250 | $ 29,097 | ||||||||
Percentage of Sales | 3.00% | 3.00% | 3.00% | ||||||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | All Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 27,790 | $ 7,409 | $ 9,130 | ||||||||
Percentage of Sales | 3.00% | 1.00% | 1.00% |
Segment and Geographical Info55
Segment and Geographical Information - Percentage of Sales to Significant Customers (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 100.00% | 100.00% | 100.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Eastman Chemical Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 28.00% | 31.00% | 21.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Nantong Cellulose Fibers, Co., Ltd. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 18.00% | 18.00% | 19.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Daicel Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 13.00% | 15.00% | 13.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Celanese Acetate, LLC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 0.00% | 0.00% | 14.00% |
Property, Plant, and Equipmen56
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,026,807 | $ 2,010,644 |
Accumulated depreciation | (1,222,969) | (1,167,269) |
Total property, plant and equipment, net | 803,838 | 843,375 |
Land and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,426 | 15,411 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 181,707 | 180,304 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,764,477 | 1,777,299 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 65,197 | $ 37,630 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 103,866 | $ 120,221 |
Work-in-progress | 2,344 | 2,418 |
Raw materials | 16,593 | 14,670 |
Manufacturing and maintenance supplies | 2,606 | 2,900 |
Total inventory | $ 125,409 | $ 140,209 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | May. 22, 2014 | |
Debt Instrument [Line Items] | |||
Total debt | $ 867,919,000 | $ 944,816,000 | |
Less: Current maturities of long-term debt | (8,226,000) | (8,400,000) | |
Long-term debt | $ 859,693,000 | 936,416,000 | |
Line of Credit [Member] | Term A-1 Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Facility interest rate | 1.92% | ||
Total debt | $ 55,763,000 | 106,973,000 | |
Discount | 200,000 | ||
Face amount | $ 56,000,000 | ||
Line of Credit [Member] | Term A-1 Due 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.50% | ||
Line of Credit [Member] | Term A-2 Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Facility interest rate | 1.50% | ||
Cash patronage benefit | 0.67% | ||
Total debt | $ 262,156,000 | 287,843,000 | |
Discount | 600,000 | ||
Face amount | $ 262,800,000 | ||
Line of Credit [Member] | Term A-2 Due 2021 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread after cash patronage benefit | 1.08% | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.50% | 5.50% | |
Total debt | $ 550,000,000 | $ 550,000,000 | |
Face amount | $ 550,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Principal debt repayments | $ 77,100 | $ 79,200 | $ 0 |
Line of Credit [Member] | Term A-1 Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt repayments | 51,300 | ||
Line of Credit [Member] | Term A-2 Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt repayments | $ 25,800 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 8,400 |
2,017 | 9,775 |
2,018 | 11,150 |
2,019 | 38,225 |
2,020 | 2,900 |
Thereafter | 798,250 |
Total principal payments | $ 868,700 |
Debt - 5.50% Senior Notes Due 2
Debt - 5.50% Senior Notes Due 2024 - Narrative (Details) - Senior Notes [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | May. 22, 2014 | |
Debt Instrument [Line Items] | ||
Face amount | $ 550 | |
Interest rate | 5.50% | 5.50% |
Redemption price percentage | 100.00% | |
Redemption percentage allowable | 40.00% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facilities - Narrative (Details) | Jun. 26, 2014USD ($) | Dec. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | ||
Net leverage ratio (no greater than) | 3 | |
Interest coverage ratio (no less than) | 3 | |
Line of Credit [Member] | Term A-1 Due 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 110,000,000 | |
Line of Credit [Member] | Term A-2 Due 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 290,000,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Outstanding balance | $ 0 | |
Remaining borrowing capacity | 235,800,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount of letters of credit outstanding | $ 14,200,000 | |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term A-1 Due 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.50% | |
Line of Credit [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.25% | |
Line of Credit [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.25% | |
Line of Credit [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.00% | |
Line of Credit [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 101,303 | $ 65,977 |
Current maturities of long-term debt | (8,226) | (8,400) |
Fixed-rate long-term debt | (550,000) | (550,000) |
Variable-rate long-term debt | (309,693) | (386,416) |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 101,303 | 65,977 |
Current maturities of long-term debt | 0 | 0 |
Fixed-rate long-term debt | 0 | 0 |
Variable-rate long-term debt | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Current maturities of long-term debt | (8,400) | (8,400) |
Fixed-rate long-term debt | (435,171) | (453,063) |
Variable-rate long-term debt | $ (310,300) | $ (387,400) |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized components of employee benefit plans, net of tax | |||
Balance, January 1 | $ (103,444) | ||
Net other comprehensive income (loss) | (6,176) | $ (28,326) | $ 24,971 |
Net transfer from Rayonier | 1,036,928 | 1,141 | |
Balance, December 31 | (109,620) | (103,444) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Unrecognized components of employee benefit plans, net of tax | |||
Balance, January 1 | (103,444) | (39,699) | (64,670) |
Amounts reclassified from accumulated other comprehensive loss | 9,427 | 5,804 | 5,269 |
Other comprehensive loss before reclassifications | (15,603) | (34,130) | 19,702 |
Net transfer from Rayonier | 0 | (35,419) | 0 |
Balance, December 31 | $ (109,620) | $ (103,444) | $ (39,699) |
Stockholders' (Deficit) Equit65
Stockholders' (Deficit) Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 27, 2014 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ (62,412) | $ 968,301 | $ (62,412) | $ 968,301 | $ 724,704 | |||||||
Net Income | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | $ (23,261) | $ 19,408 | $ 4,561 | $ 30,947 | 55,257 | 31,655 | 219,767 | |
Net gain from pension and postretirement plans | (6,176) | (28,326) | 24,971 | |||||||||
Net transfers to Rayonier | (1,036,928) | (1,141) | ||||||||||
Reclassification to additional paid-in capital | 864 | 0 | ||||||||||
Issuance of common stock at the Separation | 0 | |||||||||||
Issuance of common stock under incentive stock plans | 8 | 649 | ||||||||||
Stock-based compensation | 9,832 | 4,695 | ||||||||||
Excess tax benefit on stock-based compensation | 266 | |||||||||||
Excess tax benefit on stock-based compensation | (2,558) | |||||||||||
Repurchase of common stock | (12) | (92) | ||||||||||
Adjustments to tax assets and liabilities associated with the Distribution | 3,294 | |||||||||||
Dividends ($0.14 and $0.28 per share for the years ended December 31, 2014 and 2015) | (11,942) | (5,926) | ||||||||||
Ending balance | $ (17,139) | $ (62,412) | $ (17,139) | $ (62,412) | $ 968,301 | |||||||
Dividends (in dollars per share) | $ 0.28 | $ 0.14 | $ 0 | |||||||||
Common Stock [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance (shares) | 42,616,319 | 0 | 42,616,319 | 0 | 0 | |||||||
Beginning balance | $ 426 | $ 0 | $ 426 | $ 0 | $ 0 | |||||||
Issuance of common stock at the Separation (shares) | 42,176,565 | 42,176,565 | ||||||||||
Issuance of common stock at the Separation | $ 422 | |||||||||||
Issuance of common stock under incentive stock plans (shares) | 258,176 | 440,364 | ||||||||||
Issuance of common stock under incentive stock plans | $ 3 | $ 4 | ||||||||||
Repurchase of common stock (shares) | (2,060) | (610) | ||||||||||
Repurchase of common stock | $ 0 | $ 0 | ||||||||||
Ending balance (shares) | 42,872,435 | 42,616,319 | 42,872,435 | 42,616,319 | 0 | |||||||
Ending balance | $ 429 | $ 426 | $ 429 | $ 426 | $ 0 | |||||||
Additional Paid in Capital [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 62,082 | 0 | 62,082 | 0 | 0 | |||||||
Reclassification to additional paid-in capital | 864 | 53,696 | ||||||||||
Issuance of common stock at the Separation | (422) | |||||||||||
Issuance of common stock under incentive stock plans | 5 | 645 | ||||||||||
Stock-based compensation | 9,832 | 4,695 | ||||||||||
Excess tax benefit on stock-based compensation | 266 | |||||||||||
Excess tax benefit on stock-based compensation | (2,558) | |||||||||||
Repurchase of common stock | (12) | (92) | ||||||||||
Adjustments to tax assets and liabilities associated with the Distribution | 3,294 | |||||||||||
Ending balance | 70,213 | 62,082 | 70,213 | 62,082 | 0 | |||||||
Retained Earnings (Accumulated Deficit) [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (21,476) | 1,415,894 | (21,476) | 1,415,894 | 1,196,127 | |||||||
Net Income | 55,257 | 31,655 | 219,767 | |||||||||
Reclassification to additional paid-in capital | (1,463,099) | |||||||||||
Dividends ($0.14 and $0.28 per share for the years ended December 31, 2014 and 2015) | (11,942) | (5,926) | ||||||||||
Ending balance | 21,839 | (21,476) | 21,839 | (21,476) | 1,415,894 | |||||||
Transfers (to) from Rayonier, net [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 0 | (407,894) | 0 | (407,894) | (406,753) | |||||||
Net transfers to Rayonier | (1,001,509) | (1,141) | ||||||||||
Reclassification to additional paid-in capital | 1,409,403 | |||||||||||
Ending balance | 0 | 0 | 0 | 0 | (407,894) | |||||||
Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ (103,444) | $ (39,699) | (103,444) | (39,699) | (64,670) | |||||||
Net gain from pension and postretirement plans | (6,176) | (28,326) | 24,971 | |||||||||
Net transfers to Rayonier | (35,419) | |||||||||||
Ending balance | $ (109,620) | $ (103,444) | $ (109,620) | $ (103,444) | $ (39,699) |
Stockholders' (Deficit) Equit66
Stockholders' (Deficit) Equity - Reconciliation of Net Transfers to and Net Payment (to) from Rayonier (Details) - USD ($) $ in Thousands | Jun. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' Equity Note [Abstract] | |||
Allocation of costs from Rayonier | $ (35,279) | $ (67,781) | |
Cash receipts received by Rayonier on Company’s behalf | 472,780 | 1,073,275 | |
Cash disbursements made by Rayonier on Company’s behalf | (484,318) | (1,006,635) | |
Net distribution to Rayonier on separation | (906,200) | 0 | |
Net liabilities from transfer of assets and liabilities with Rayonier | 83,911 | 0 | |
Net transfers to Rayonier | (1,036,928) | (1,141) | |
Non-cash adjustments: | |||
Stock-based compensation | (3,562) | (6,230) | |
Net payments to Rayonier per the Condensed Consolidated Statements of Cash Flows, prior to Separation | $ (956,579) | $ (7,371) | |
Disposed operations liabilities included in non-cash capital contributions | $ 73,900 | ||
Employee benefit plan liabilities included in non-cash capital contributions | 73,800 | ||
Deferred tax assets included in non-cash capital contributions | 67,400 | ||
Other liabilities, net, included in non-cash capital contributions | $ 3,600 |
Earnings Per Share of Common 67
Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | $ (23,261) | $ 19,408 | $ 4,561 | $ 30,947 | $ 55,257 | $ 31,655 | $ 219,767 |
Shares used for determining basic earnings per share of common stock | 42,194,891 | 42,166,629 | 42,176,565 | ||||||||
Dilutive effect of: | |||||||||||
Stock options | 0 | 47,073 | 0 | ||||||||
Performance and restricted shares | 27,968 | 25,980 | 0 | ||||||||
Shares used for determining diluted earnings per share of common stock | 42,222,859 | 42,239,682 | 42,176,565 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.77 | $ (0.01) | $ 0.25 | $ (0.55) | $ 0.46 | $ 0.11 | $ 0.73 | $ 1.31 | $ 0.75 | $ 5.21 |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.76 | $ (0.01) | $ 0.25 | $ (0.55) | $ 0.46 | $ 0.11 | $ 0.73 | $ 1.30 | $ 0.75 | $ 5.21 |
Earnings Per Share of Common 68
Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share | 671,251 | 235,283 | 0 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share | 447,524 | 229,001 | 0 |
Restricted stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share | 220,348 | 6,282 | 0 |
Performance shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share | 3,379 | 0 | 0 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014site | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Other Income and Expenses [Line Items] | ||||
Increase in environmental liabilities for disposed operations | $ 6,930 | $ 70,129 | $ 0 | |
One-time separation and legal costs | (802) | 25,680 | 6,033 | |
Non-cash impairment charge | 28,462 | 7,184 | 0 | |
Loss on sale or disposal of property, plant and equipment | 998 | 2,123 | 2,390 | |
Insurance settlement | (1,000) | (2,881) | 0 | |
Miscellaneous expense (income) | 681 | 169 | (259) | |
Total | $ 35,269 | 120,823 | 8,164 | |
Environmental loss contingencies term | 20 years | |||
Number of disposed operations sites | site | 4 | |||
Rayonier Inc. [Member] | ||||
Other Income and Expenses [Line Items] | ||||
Increase to environmental liabilities for disposed operations resulting from separation from Rayonier | $ 0 | $ 18,419 | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||
Federal | $ 37,561 | $ 42,183 | $ 95,997 |
State and other | (197) | 305 | 4,312 |
Total Current | 37,364 | 42,488 | 100,309 |
Deferred | |||
Federal | (11,073) | (34,301) | (31,051) |
State and other | 1,316 | (641) | (110) |
Total Deferred | (9,757) | (34,942) | (31,161) |
Changes in valuation allowance | 0 | 1,270 | 0 |
Total | $ 27,607 | $ 8,816 | $ 69,148 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Domestic manufacturing production deduction | (4.20%) | (14.40%) | (3.40%) |
CBPC reserve reversal | 0.00% | (11.80%) | 0.00% |
State credits | (0.90%) | (2.90%) | (0.00%) |
AFMC for CBPC exchange | (0.00%) | (0.00%) | (6.50%) |
Nondeductible executive compensation | 1.20% | 2.40% | 0.00% |
Research credit adjustment | (0.00%) | 2.40% | (1.00%) |
Adjustment to prior tax returns | 0.00% | 2.70% | 0.00% |
Change in valuation allowance | 0.00% | 3.10% | 0.00% |
Nondeductible transaction costs | 0.00% | 4.00% | 0.00% |
Change in state rate | 1.40% | 0.00% | 0.00% |
Other | 0.80% | 1.30% | (0.20%) |
Income tax rate as reported | 33.30% | 21.80% | 23.90% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Gross deferred tax assets: | ||
Pension, postretirement and other employee benefits | $ 70,180 | $ 67,104 |
State tax credit carryforwards | 16,498 | 15,740 |
Environmental liabilities | 55,945 | 56,508 |
Capitalized costs | 14,088 | 14,042 |
State net operating losses | 3,204 | 4,892 |
Total gross deferred tax assets | 159,915 | 158,286 |
Less: Valuation allowance | (19,702) | (20,517) |
Total deferred tax assets after valuation allowance | 140,213 | 137,769 |
Gross deferred tax liabilities: | ||
Accelerated depreciation | (41,006) | (49,917) |
Other | (1,787) | (1,030) |
Total gross deferred tax liabilities | (42,793) | (50,947) |
Net deferred tax asset | $ 97,420 | $ 86,822 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Operating Loss Carryforwards [Line Items] | ||
Reclassification to noncurrent assets in deferred tax assets | $ 97,420 | $ 86,822 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Reclassification to noncurrent assets in deferred tax assets | 8,300 | |
Reclassification from current assets | $ 8,300 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
State net operating losses, Gross Amount | 85,014 | |
State net operating losses, Tax Effected | 3,204 | |
State net operating losses, Valuation Allowance | 3,204 | |
State tax credits [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
State tax credit carryforwards, Gross Amount | 16,498 | |
State tax credit carryforwards, Tax Effected | 16,498 | |
State tax credit carryfoward, Valuation Allowance | $ 16,498 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 0 | $ 4,767 | $ 0 |
Decreases related to prior year tax positions | 0 | (4,767) | 0 |
Increases related to prior year tax positions | 0 | 0 | 4,767 |
Balance at December 31, | $ 0 | $ 0 | $ 4,767 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AFMC for CBPC Exchange [Line Items] | |||
Reverse of uncertain tax liability | $ 0 | $ 4,767 | $ 0 |
Increased Domestic Production Deduction due to Inclusion of CBPC Income [Member] | |||
AFMC for CBPC Exchange [Line Items] | |||
Reverse of uncertain tax liability | $ 4,800 |
Liabilities for Disposed Oper76
Liabilities for Disposed Operations - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)site | |
Site Contingency [Line Items] | ||
Number of inactive former wood treating sites | site | 10 | |
Environmental loss contingencies term | 20 years | |
Current estimate threshold of total liabilities for disposed operations | 10.00% | |
Increase to liabilities | $ 88,548 | $ 6,930 |
Loss exposure in excess of accrual, high estimate | $ 65,000 | |
Augusta, Georgia [Member] | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase to liabilities | 12,060 | $ 1,861 |
Total spending | 71,300 | |
Spartanburg, South Carolina [Member] | ||
Site Contingency [Line Items] | ||
Increase to liabilities | 8,792 | (575) |
Total spending | $ 42,700 | |
Baldwin, Florida [Member] | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase to liabilities | 14,996 | $ 3,270 |
Total spending | $ 23,700 | |
Term for hazardous waste permit | 10 years | |
Port Angeles, Washington [Member] | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase to liabilities | $ 32,922 | $ 532 |
Total spending | $ 46,100 |
Liabilities for Disposed Oper77
Liabilities for Disposed Operations - Site Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Jun. 27, 2014 | |
Site Contingency [Line Items] | |||
Beginning balance | $ 156,729 | $ 157,384 | $ 73,840 |
Expenditures | (5,659) | (6,275) | |
Increase (Decrease) to Liabilities | 88,548 | 6,930 | |
Ending balance | 156,729 | 157,384 | 73,840 |
Less: Current portion | (7,241) | (12,034) | |
Non-Current portion | 149,488 | 145,350 | |
Augusta, Georgia [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 22,207 | 22,881 | 10,838 |
Expenditures | (691) | (1,187) | |
Increase (Decrease) to Liabilities | 12,060 | 1,861 | |
Ending balance | 22,207 | 22,881 | 10,838 |
Spartanburg, South Carolina [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 18,984 | 17,476 | 10,902 |
Expenditures | (710) | (933) | |
Increase (Decrease) to Liabilities | 8,792 | (575) | |
Ending balance | 18,984 | 17,476 | 10,902 |
Baldwin, Florida [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 24,528 | 26,960 | 10,172 |
Expenditures | (640) | (838) | |
Increase (Decrease) to Liabilities | 14,996 | 3,270 | |
Ending balance | 24,528 | 26,960 | 10,172 |
Other SWP sites [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 37,397 | 35,892 | 27,471 |
Expenditures | (2,190) | (1,731) | |
Increase (Decrease) to Liabilities | 12,116 | 226 | |
Ending balance | 37,397 | 35,892 | 27,471 |
Total SWP Sites [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 103,116 | 103,209 | 59,383 |
Expenditures | (4,231) | (4,689) | |
Increase (Decrease) to Liabilities | 47,964 | 4,782 | |
Ending balance | 103,116 | 103,209 | 59,383 |
Port Angeles, Washington [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 39,913 | 39,405 | 8,100 |
Expenditures | (1,109) | (1,040) | |
Increase (Decrease) to Liabilities | 32,922 | 532 | |
Ending balance | 39,913 | 39,405 | 8,100 |
All other sites [Member] | |||
Site Contingency [Line Items] | |||
Beginning balance | 13,700 | 14,770 | 6,357 |
Expenditures | (319) | (546) | |
Increase (Decrease) to Liabilities | 7,662 | 1,616 | |
Ending balance | $ 13,700 | $ 14,770 | $ 6,357 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares authorized (shares) | 5,200,000 | ||
Number of shares available for future grant (shares) | 3,500,000 | ||
Stock-based incentive compensation expense | $ 9,992 | $ 8,738 | $ 6,230 |
Incentive Stock Plans - Stock-b
Incentive Stock Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based incentive compensation expense | $ 9,992 | $ 8,738 | $ 6,230 |
Selling, general, and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based incentive compensation expense | 8,124 | 7,763 | 5,006 |
Cost of sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based incentive compensation expense | $ 1,868 | $ 975 | $ 1,224 |
Incentive Stock Plans - Non-Qua
Incentive Stock Plans - Non-Qualified Employee Stock Options (Narrative) (Details) - Stock Options [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Maximum term | 10 years 2 days |
Period for recognition on a straight-line basis | 3 years |
Number of options granted | shares | 0 |
Unrecognized compensation cost, stock options | $ 0.2 |
Period for recognition over a weighted average period | 11 months 20 days |
Rayonier Inc. [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, stock options | $ 0.4 |
Period for recognition over a weighted average period | 11 months 18 days |
Incentive Stock Plans - Weighte
Incentive Stock Plans - Weighted Average Assumptions and Fair Value Calculations of Options Granted (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 40.10% | 39.00% |
Dividend yield | 4.20% | 3.40% |
Risk-free rate | 2.20% | 1.00% |
Expected life (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Fair value per share of options granted (in dollars per share) | $ 9.31 | $ 14 |
Fair value of options granted | $ 90 | $ 703 |
Incentive Stock Plans - Summary
Incentive Stock Plans - Summary of Stock Option Activity (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance, Options, Outstanding | shares | 466,015 |
Options, Forfeited | shares | (7,750) |
Options, Exercised | shares | (460) |
Options, Expired | shares | (16,190) |
Ending Balance, Options, Outstanding | shares | 441,615 |
Options, Options vested and expected to vest | shares | 441,615 |
Options, Options exercisable | shares | 371,845 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, Options, Weighted Average Exercise Price | $ / shares | $ 31.73 |
Options, Forfeited, Weighted Average Exercise Price | $ / shares | 38.56 |
Options, Exercised, Weighted Average Exercise Price | $ / shares | 17.34 |
Options, Expired, Weighted Average Exercise Price | $ / shares | 30.36 |
Ending Balance, Options, Weighted Average Exercise Price | $ / shares | 31.67 |
Options, Options vested and expected to vest, Weighted Average Exercise Price | $ / shares | 31.67 |
Options, Options exercisable, Weighted Average Exercise Price | $ / shares | $ 30.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Term, Outstanding | 5 years |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 5 years |
Weighted Average Remaining Contractual Term, Options exercisable | 4 years 5 months |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 0 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 0 |
Incentive Stock Plans - Additio
Incentive Stock Plans - Additional Information on Stock Options Granted to Employees (Details) - Stock Options [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 0 | $ 320 | $ 772 |
Fair value of options vested | $ 717 | $ 90 | $ 593 |
Incentive Stock Plans - Restric
Incentive Stock Plans - Restricted Stock - Narrative (Details) - USD ($) $ in Millions | Jun. 27, 2014 | Dec. 31, 2015 | Mar. 23, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fixed award issued at separation | $ 4 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Company restricted stock converted per one Rayonier restricted stock | 0.3333 | ||
Incremental compensation cost | $ 2.3 | ||
Incremental compensation cost, period for recognition | 2 years | ||
Unrecognized compensation cost, other than options | $ 4.4 | ||
Period for recognition | 1 year 10 months 10 days | ||
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Period for recognition | 11 months 20 days | ||
Rayonier Inc. [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, other than options | $ 0.1 | ||
Period for recognition | 10 months 8 days | ||
Rayonier Inc. [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition | 11 months 18 days |
Incentive Stock Plans - Activit
Incentive Stock Plans - Activity of Restricted Shares Granted to Employees (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (shares) | 277,298 | 172,894 | 10,200 |
Weighted average price of restricted shares granted (in dollars per share) | $ 20.83 | $ 41.51 | $ 56 |
Intrinsic value of restricted stock outstanding | $ 3,763 | $ 3,235 | $ 666 |
Fair value of restricted stock vested | $ 690 | $ 100 | $ 27 |
Incentive Stock Plans - Summa86
Incentive Stock Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 277,298 | 172,894 | 10,200 |
Awards, Forfeited, Number | (19,350) | ||
Awards, Vested, Number | (18,650) | ||
Ending Balance, Awards, Outstanding, Number | 384,383 | 145,085 | |
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 | $ 41.66 | ||
Awards, Granted, Weighted Average | 20.83 | $ 41.51 | $ 56 |
Awards, Forfeited, Weighted Average | 25.07 | ||
Awards, Vested, Weighted Average | 37 | ||
Ending Balance, Awards, Weighted Average | $ 28.41 | $ 41.66 |
Incentive Stock Plans - Perform
Incentive Stock Plans - Performance Shares - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 28, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess tax deficit due to cancellation | $ 2,558 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Unrecognized compensation cost, other than options | $ 6,000 | |
Period for recognition | 1 year 7 months 7 days | |
Excess tax deficit due to cancellation | $ 2,500 |
Incentive Stock Plans - Activ88
Incentive Stock Plans - Activity of Performance Shares Granted to Employees (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance-Based Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares of stock reserved for performance shares | 422,920 | 95,952 | 52,900 |
Weighted average fair value of performance share units granted (in dollars per share) | $ 17.51 | $ 42.27 | $ 58.99 |
Intrinsic value of outstanding performance share units | $ 2,070 | $ 1,070 | $ 3,618 |
Fair value of performance shares vested | 0 | 0 | 962 |
Cash used to pay the minimum withholding tax requirements in lieu of receiving common shares | $ 0 | $ 0 | $ 1,199 |
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares of stock reserved for performance shares | 286,737 | ||
Weighted average fair value of performance share units granted (in dollars per share) | $ 40.41 | ||
Intrinsic value of outstanding performance share units | $ 3,197 | ||
Fair value of performance shares vested | 0 | ||
Cash used to pay the minimum withholding tax requirements in lieu of receiving common shares | $ 0 |
Incentive Stock Plans - Summa89
Incentive Stock Plans - Summary of Performance Share Activity (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Performance-Based Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning Balance, Awards, Outstanding, Number | shares | 47,977 |
Awards, Granted, Number | shares | 214,403 |
Awards, Forfeited, Number | shares | (2,943) |
Awards, Canceled, Number | shares | (47,977) |
Ending Balance, Awards, Outstanding, Number | shares | 211,460 |
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 | $ / shares | $ 42.27 |
Awards, Granted, Weighted Average | $ / shares | 17.51 |
Awards, Forfeited, Weighted Average | $ / shares | 17.74 |
Awards, Canceled, Weighted Average | $ / shares | 42.27 |
Ending Balance, Awards, Weighted Average | $ / shares | $ 17.51 |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning Balance, Awards, Outstanding, Number | shares | 143,369 |
Awards, Granted, Number | shares | 0 |
Awards, Forfeited, Number | shares | (1,671) |
Awards, Canceled, Number | shares | 0 |
Ending Balance, Awards, Outstanding, Number | shares | 141,698 |
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 | $ / shares | $ 40.52 |
Awards, Granted, Weighted Average | $ / shares | 0 |
Awards, Forfeited, Weighted Average | $ / shares | 19.84 |
Awards, Canceled, Weighted Average | $ / shares | 0 |
Ending Balance, Awards, Weighted Average | $ / shares | $ 40.76 |
Incentive Stock Plans - Assumpt
Incentive Stock Plans - Assumptions Used in Fair Value Calculation for Awards Granted (Details) - Performance Shares [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 17.30% | 16.90% |
Risk-free rate | 1.00% | 0.70% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) | Jun. 27, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employee benefit plan liabilities assumed | $ 73,800,000 | |||
Cost recognized | $ 0 | $ 3,000,000 | $ 9,800,000 | |
Defined contribution plan expense | 5,200,000 | 3,700,000 | $ 2,100,000 | |
Amount of employer and related party securities included in plan assets | 12,600,000 | |||
Pension [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan amendments | $ 0 | $ 0 | ||
Expected long-term return on plan assets | 8.50% | 8.50% | 8.50% | |
Postretirement [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan amendments | $ 1,321,000 | $ 0 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension [Member] | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | $ 409,356 | $ 173,077 | |
Service cost | 5,977 | 4,099 | $ 2,790 |
Interest cost | 15,228 | 11,379 | 6,900 |
Actuarial loss (gain) | (7,073) | 45,171 | |
Plan amendments | 0 | 0 | |
Employee contributions | 0 | 0 | |
Benefits paid | (18,455) | (13,468) | |
Assumption of balance from parent at spin | 0 | 189,098 | |
Projected benefit obligation at end of year | 405,033 | 409,356 | 173,077 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan assets at beginning of year | 291,087 | 170,218 | |
Actual return on plan assets | (6,627) | 13,359 | |
Employer contributions | 2,312 | 1,056 | |
Other expense | (2,162) | (1,175) | |
Assumption of balance from parent at spin | 0 | 121,097 | |
Fair value of plan assets at end of year | 266,155 | 291,087 | 170,218 |
Funded Status at End of Year: | |||
Net accrued benefit cost | (138,878) | (118,269) | |
Postretirement [Member] | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 26,568 | 17,178 | |
Service cost | 1,006 | 798 | 941 |
Interest cost | 919 | 916 | 741 |
Actuarial loss (gain) | (2,049) | 4,417 | |
Plan amendments | 1,321 | 0 | |
Employee contributions | 361 | 0 | |
Benefits paid | (1,167) | (1,309) | |
Assumption of balance from parent at spin | 0 | 4,568 | |
Projected benefit obligation at end of year | 26,959 | 26,568 | 17,178 |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 806 | 1,309 | |
Other expense | 0 | 0 | |
Assumption of balance from parent at spin | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status at End of Year: | |||
Net accrued benefit cost | $ (26,959) | $ (26,568) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | $ (162,084) | $ (141,338) |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (2,268) | (2,036) |
Non-current liabilities | (136,610) | (116,233) |
Net amount recognized | (138,878) | (118,269) |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (1,485) | (1,463) |
Non-current liabilities | (25,474) | (25,105) |
Net amount recognized | $ (26,959) | $ (26,568) |
Employee Benefit Plans - Amou94
Employee Benefit Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension [Member] | |||
Net Gains (Losses) and Net Prior Service Costs (Credits) Recognized in OCI [Abstract] | |||
Net (losses) gains | $ (24,950) | $ (49,577) | $ 25,411 |
Net Gains (Losses) and Net Prior Service Costs (Credits) Reclassified from OCI [Abstract] | |||
Amortization of losses | 13,434 | 7,620 | 6,494 |
Amortization of prior service (credit) cost | 750 | 1,161 | 1,292 |
Postretirement [Member] | |||
Net Gains (Losses) and Net Prior Service Costs (Credits) Recognized in OCI [Abstract] | |||
Net (losses) gains | 759 | (3,807) | 5,616 |
Net Gains (Losses) and Net Prior Service Costs (Credits) Reclassified from OCI [Abstract] | |||
Amortization of losses | 676 | 597 | 549 |
Amortization of prior service (credit) cost | $ (158) | $ (265) | $ (39) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred income tax benefit | $ 97,420 | $ 86,822 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | (3,776) | (4,527) |
Net losses | (161,519) | (150,003) |
Plan amendment | 0 | 0 |
Deferred income tax benefit | 59,975 | 56,206 |
AOCI | (105,320) | (98,324) |
Postretirement [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | 27 | (32) |
Net losses | (8,585) | (11,298) |
Plan amendment | 1,797 | 3,293 |
Deferred income tax benefit | 2,461 | 2,917 |
AOCI | $ (4,300) | $ (5,120) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 431,992 | $ 435,219 |
Accumulated benefit obligation | 417,397 | 394,263 |
Fair value of plan assets | $ 266,155 | $ 291,087 |
Employee Benefit Plans - Net 97
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension [Member] | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 5,977 | $ 4,099 | $ 2,790 |
Interest cost | 15,228 | 11,379 | 6,900 |
Expected return on plan assets | (23,234) | (18,333) | (12,515) |
Amortization of prior service (credit) cost | 750 | 1,161 | 1,292 |
Amortization of losses | 13,434 | 7,620 | 6,494 |
Net periodic benefit cost | 12,155 | 5,926 | 4,961 |
Postretirement [Member] | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 1,006 | 798 | 941 |
Interest cost | 919 | 916 | 741 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (158) | (265) | (39) |
Amortization of losses | 676 | 597 | 549 |
Net periodic benefit cost | $ 2,443 | $ 2,046 | $ 2,192 |
Employee Benefit Plans - Amou98
Employee Benefit Plans - Amounts in AOCI to be Recognized over Next Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of loss | $ 10,881 |
Amortization of prior service cost | 761 |
Total amortization of AOCI loss | 11,642 |
Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of loss | 524 |
Amortization of prior service cost | (139) |
Total amortization of AOCI loss | $ 385 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension [Member] | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 4.03% | 3.71% | 4.60% |
Rate of compensation increase | 4.45% | 4.50% | 4.60% |
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||
Discount rate | 3.71% | 4.04% | 3.70% |
Expected long-term return on plan assets | 8.50% | 8.50% | 8.50% |
Rate of compensation increase | 4.45% | 4.50% | 4.60% |
Postretirement [Member] | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 3.98% | 3.65% | 4.60% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||
Discount rate | 3.65% | 4.00% | 3.60% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rates (Details) - Postretirement [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 7.00% | 7.00% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
Year that ultimate trend rate is reached | 2,019 | 2,018 |
Employee Benefit Plans - Effect
Employee Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Total of service and interest cost components, Increase | $ 209 |
Total of service and interest cost components, Decrease | (203) |
Accumulated postretirement benefit obligation, Increase | 2,245 |
Accumulated postretirement benefit obligation, Decrease | $ (1,193) |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Domestic equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 41.00% | 41.00% |
Target Allocation Range, Minimum | 35.00% | |
Target Allocation Range, Maximum | 45.00% | |
International equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 24.00% | 23.00% |
Target Allocation Range, Minimum | 20.00% | |
Target Allocation Range, Maximum | 30.00% | |
Domestic fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 27.00% | 28.00% |
Target Allocation Range, Minimum | 25.00% | |
Target Allocation Range, Maximum | 29.00% | |
International fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 5.00% | 5.00% |
Target Allocation Range, Minimum | 3.00% | |
Target Allocation Range, Maximum | 7.00% | |
Real estate fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 3.00% | 3.00% |
Target Allocation Range, Minimum | 2.00% | |
Target Allocation Range, Maximum | 4.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value Measurements (Details) - Pension [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 266,155 | $ 291,087 | $ 170,218 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 73,882 | 80,164 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 192,273 | 210,923 | |
Domestic equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 108,700 | 117,639 | |
Domestic equity securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 23,689 | 23,476 | |
Domestic equity securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 85,011 | 94,163 | |
International equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 62,163 | 66,921 | |
International equity securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 28,773 | 33,496 | |
International equity securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 33,390 | 33,425 | |
Domestic fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 70,903 | 79,193 | |
Domestic fixed income securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Domestic fixed income securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 70,903 | 79,193 | |
International fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 12,343 | 12,767 | |
International fixed income securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 12,343 | 12,767 | |
International fixed income securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Real estate fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 9,077 | 9,387 | |
Real estate fund [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 9,077 | 9,387 | |
Real estate fund [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Short-term investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 2,969 | 5,180 | |
Short-term investments [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 1,038 | |
Short-term investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 2,969 | $ 4,142 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 20,253 |
2,017 | 21,024 |
2,018 | 21,750 |
2,019 | 22,428 |
2,020 | 22,986 |
2021 — 2025 | 121,403 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 1,454 |
2,017 | 1,553 |
2,018 | 1,677 |
2,019 | 1,626 |
2,020 | 1,577 |
2021 — 2025 | $ 7,491 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 70,417 |
Standby letters of credit [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 14,216 |
Surety bonds [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 56,201 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Operating [Abstract] | |||
Rental expense for operating leases | $ 4,000 | $ 2,100 | $ 1,700 |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract] | |||
2,016 | 16,573 | ||
2,017 | 14,771 | ||
2,018 | 5,490 | ||
2,019 | 3,826 | ||
2,020 | 3,826 | ||
Thereafter | 19,856 | ||
Total | 64,342 | ||
Operating Leases [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 1,273 | ||
2,017 | 1,140 | ||
2,018 | 720 | ||
2,019 | 448 | ||
2,020 | 400 | ||
Thereafter | 431 | ||
Total | $ 4,412 |
Quarterly Results for 2015 a107
Quarterly Results for 2015 and 2014 (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 27, 2014 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Quarterly Financial Information Disclosure [Line Items] | ||||||||||||
Net Sales | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 247,964 | $ 253,695 | $ 212,531 | $ 243,499 | $ 941,384 | $ 957,689 | $ 1,046,603 | |
Gross Margin | 50,392 | 70,169 | 45,021 | 36,872 | 60,964 | 55,689 | 52,314 | 54,780 | 202,454 | 223,747 | 332,565 | |
Operating Income | 29,030 | 57,962 | 8,585 | 23,946 | (28,297) | 41,678 | 6,210 | 43,364 | 119,523 | 62,955 | 288,623 | |
Net Income (Loss) | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | $ (23,261) | $ 19,408 | $ 4,561 | $ 30,947 | $ 55,257 | $ 31,655 | $ 219,767 | |
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.77 | $ (0.01) | $ 0.25 | $ (0.55) | $ 0.46 | $ 0.11 | $ 0.73 | $ 1.31 | $ 0.75 | $ 5.21 | |
Diluted earnings per share (in dollars per share) | $ 0.30 | $ 0.76 | $ (0.01) | $ 0.25 | $ (0.55) | $ 0.46 | $ 0.11 | $ 0.73 | $ 1.30 | $ 0.75 | $ 5.21 | |
Common Stock [Member] | ||||||||||||
Quarterly Financial Information Disclosure [Line Items] | ||||||||||||
Stock issued during period (shares) | 42,176,565 | 42,176,565 |
Schedule II - Valuation and 108
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 151 | $ 140 | $ 140 |
Charged to Cost and Expenses | 0 | 11 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 151 | 151 | 140 |
Deferred tax asset valuation allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 20,517 | 24,588 | 1,201 |
Charged to Cost and Expenses | 0 | 0 | 23,387 |
Deductions | (815) | (4,071) | 0 |
Balance at End of Year | 19,702 | 20,517 | 24,588 |
Self-insurance liabilities [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,947 | 0 | 0 |
Charged to Cost and Expenses | (734) | 2,361 | 0 |
Deductions | (624) | (414) | 0 |
Balance at End of Year | $ 589 | $ 1,947 | $ 0 |