Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 26, 2016 | Apr. 29, 2016 | |
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-Q | |
Document Period End Date | Mar. 26, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 43,281,270 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net Sales | $ 217,729 | $ 221,348 |
Cost of Sales | 177,491 | 184,476 |
Gross Margin | 40,238 | 36,872 |
Selling, general and administrative expenses | 7,378 | 12,296 |
Other operating expense, net | 940 | 630 |
Operating Income | 31,920 | 23,946 |
Interest expense | 8,671 | 9,324 |
Interest income and miscellaneous expense, net | (1) | (29) |
Gain on debt extinguishment | 8,844 | 0 |
Income Before Income Taxes | 32,094 | 14,651 |
Income tax expense | 11,201 | 4,130 |
Net Income | $ 20,893 | $ 10,521 |
Earnings Per Share of Common Stock | ||
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.25 |
Diluted earnings per share (in dollars per share) | 0.49 | 0.25 |
Dividends Declared Per Share (in dollars per share) | $ 0.07 | $ 0.07 |
Comprehensive Income: | ||
Net Income | $ 20,893 | $ 10,521 |
Other Comprehensive Income | ||
Amortization of pension and postretirement plans, net of income tax expense of $1,102 and $1,299 | 1,917 | 2,308 |
Total other comprehensive income | 1,917 | 2,308 |
Comprehensive Income | $ 22,810 | $ 12,829 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of pension and postretirement plans, income tax (expense) benefit | $ 1,102 | $ 1,299 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 26, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 110,070 | $ 101,303 |
Accounts receivable, less allowance for doubtful accounts of $151 and $151 | 57,997 | 68,892 |
Inventory | 113,307 | 125,409 |
Prepaid and other current assets | 23,530 | 32,149 |
Total current assets | 304,904 | 327,753 |
Property, Plant and Equipment, Gross | 2,037,622 | 2,026,807 |
Less — Accumulated Depreciation | (1,242,885) | (1,222,969) |
Property, Plant and Equipment, Net | 794,737 | 803,838 |
Deferred Tax Assets | 86,065 | 97,420 |
Other Assets | 48,126 | 49,601 |
Total Assets | 1,233,832 | 1,278,612 |
Current Liabilities | ||
Accounts payable | 40,089 | 44,992 |
Accrued customer incentives and prepayments | 23,056 | 34,685 |
Accrued payroll and benefits | 14,980 | 20,743 |
Current maturities of long-term debt | 7,943 | 7,938 |
Accrued interest | 9,490 | 2,673 |
Other current liabilities | 14,075 | 8,379 |
Current liabilities for disposed operations | 12,855 | 12,034 |
Total current liabilities | 122,488 | 131,444 |
Long-Term Debt | 796,903 | 850,116 |
Non-Current Liabilities for Disposed Operations | 143,296 | 145,350 |
Pension and Other Postretirement Benefits | 161,501 | 162,084 |
Other Non-Current Liabilities | $ 6,743 | $ 6,757 |
Commitments and Contingencies | ||
Stockholders’ Equity (Deficit) | ||
Preferred stock, 10,000,000 shares authorized at $0.01 par value, 0 issued and outstanding as of March 26, 2016 and December 31, 2015 | $ 0 | $ 0 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 43,280,312 and 42,872,435 issued and outstanding, as of March 26, 2016 and December 31, 2015, respectively | 433 | 429 |
Additional paid-in capital | 70,623 | 70,213 |
Retained earnings | 39,548 | 21,839 |
Accumulated other comprehensive loss | (107,703) | (109,620) |
Total Stockholders’ Equity (Deficit) | 2,901 | (17,139) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 1,233,832 | $ 1,278,612 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 26, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 151 | $ 151 |
Common stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 43,280,312 | 42,872,435 |
Common stock, shares outstanding (shares) | 43,280,312 | 42,872,435 |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Operating Activities | ||
Net Income | $ 20,893 | $ 10,521 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 22,077 | 21,752 |
Stock-based incentive compensation expense | 644 | 2,669 |
Amortization of capitalized debt costs | 441 | 793 |
Deferred income taxes | 10,104 | (4,216) |
Increase in liabilities for disposed operations | 1,746 | 0 |
Gain on debt extinguishment | (8,844) | 0 |
Amortization of losses and prior service costs from pension and postretirement plans | 3,019 | 3,607 |
Loss from sale/disposal of property, plant and equipment | 236 | 382 |
Other | (1,243) | 80 |
Changes in operating assets and liabilities: | ||
Receivables | 10,895 | 17,575 |
Inventories | 12,102 | 8,272 |
Accounts payable | 3,579 | (3,988) |
Accrued liabilities | (8,065) | (3,349) |
All other operating activities | 9,365 | 3,091 |
Expenditures for disposed operations | (2,979) | (1,013) |
Cash Provided by Operating Activities | 73,970 | 56,176 |
Investing Activities | ||
Capital expenditures | (20,390) | (24,540) |
Cash Used for Investing Activities | (20,390) | (24,540) |
Financing Activities | ||
Repayment/repurchase of debt | (44,732) | (20,000) |
Proceeds from the issuance of common stock | 0 | 8 |
Common stock repurchased | (81) | 0 |
Cash Used for Financing Activities | (44,813) | (19,992) |
Cash and Cash Equivalents | ||
Change in cash and cash equivalents | 8,767 | 11,644 |
Balance, beginning of year | 101,303 | 65,977 |
Balance, end of period | 110,070 | 77,621 |
Cash paid (received) during the period: | ||
Interest | 2,278 | 1,990 |
Income taxes | (736) | (307) |
Non-cash investing and financing activities: | ||
Capital assets purchased on account | $ 8,238 | $ 11,170 |
BASIS OF PRESENTATION AND NEW A
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 26, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , as filed with the SEC. New or Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation. The update simplifies several areas of accounting for share based payments. It is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires entities to recognize assets and liabilities that arise from finance and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows. It is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. 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 Company adopted as of March 26, 2016 and the effect of this accounting change on prior periods was a reclassification of debt issuance costs as of December 31, 2015 of $9.6 million and $0.3 million to “Long-term debt” from “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. Subsequently, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations. This standard provided implementation guidance for principal versus agent considerations. These standards 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 May 3, 2016 , the date these financial statements were available to be issued. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory As of March 26, 2016 and December 31, 2015 , the Company’s inventory included the following: March 26, 2016 December 31, 2015 Finished goods $ 96,684 $ 103,866 Work-in-progress 2,783 2,344 Raw materials 11,407 16,593 Manufacturing and maintenance supplies 2,433 2,606 Total inventory $ 113,307 $ 125,409 |
DEBT
DEBT | 3 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 26, 2016 and December 31, 2015 , the Company’s debt consisted of the following: March 26, 2016 December 31, 2015 Revolving Credit Facility of $250 million, $236 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at March 26, 2016 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 1.93% at March 26, 2016 54,575 55,950 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 1.51% at March 26, 2016 253,475 262,750 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 550,000 Total principal payments due 814,462 868,700 Less: original issue discount and debt issuance costs (9,616 ) (10,646 ) Total debt 804,846 858,054 Less: Current maturities of long-term debt (7,943 ) (7,938 ) Long-term debt $ 796,903 $ 850,116 During the first three months of 2016 , the Company made $10.6 million in principal debt repayments on the Term Loan Facilities. During the first three months of 2016 , the Company repurchased in the open market $43.6 million of its senior notes due 2024 and retired them for $34.1 million plus accrued and unpaid interest. In connection with the retirement of these Senior Notes, the Company recorded a gain in other income of approximately $8.8 million , which includes the write-off of $0.7 million of unamortized debt issuance costs in the first quarter of 2016. Principal payments due during the next five years and thereafter are as follows: Remaining 2016 $ 6,300 2017 9,775 2018 11,150 2019 38,225 2020 2,900 Thereafter 746,112 Total principal payments $ 814,462 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 26, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 26, 2016 and December 31, 2015 , using market information and what management believes to be appropriate valuation methodologies: March 26, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 110,070 $ 110,070 $ — $ 101,303 $ 101,303 $ — Current maturities of long-term debt (7,943 ) — (8,400 ) (7,938 ) — (8,400 ) Fixed-rate long-term debt (498,747 ) — (412,726 ) (541,423 ) — (435,171 ) Variable-rate long-term debt (298,156 ) — (299,650 ) (308,693 ) — (310,300 ) 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 | 3 Months Ended |
Mar. 26, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss was comprised of the following: Three Months Ended Unrecognized components of employee benefit plans, net of tax March 26, 2016 March 28, 2015 Balance, beginning of period $ (109,620 ) $ (103,444 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 193 192 Amortization of prior service costs 2,864 3,485 Amortization of negative plan amendment (38 ) (70 ) Tax benefit (1,102 ) (1,299 ) Total reclassifications for the period, net of tax 1,917 2,308 Balance, end of period $ (107,703 ) $ (101,136 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information. |
EARNINGS PER SHARE OF COMMON ST
EARNINGS PER SHARE OF COMMON STOCK | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 26, 2016 March 28, 2015 Net income $ 20,893 $ 10,521 Shares used for determining basic earnings per share of common stock 42,205,767 42,186,130 Dilutive effect of: Stock options — 4,948 Performance and restricted shares 66,769 13,696 Shares used for determining diluted earnings per share of common stock 42,272,536 42,204,774 Basic earnings per share (not in thousands) $ 0.50 $ 0.25 Diluted earnings per share (not in thousands) $ 0.49 $ 0.25 Anti-dilutive shares excluded from the computation of diluted earnings per share: Three Months Ended March 26, 2016 March 28, 2015 Stock options 417,198 384,112 Restricted stock 212,677 351,995 Performance shares 82,295 — Total 712,170 736,107 |
OTHER OPERATING EXPENSE, NET
OTHER OPERATING EXPENSE, NET | 3 Months Ended |
Mar. 26, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Other Operating Expense, Net Other operating expense, net was comprised of the following: Three Months Ended March 26, 2016 March 28, 2015 Loss on sale or disposal of property, plant and equipment $ 236 $ 382 Environmental reserve adjustment 1,746 — Miscellaneous expense (income) (1,042 ) 248 Total $ 940 $ 630 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 26, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the first quarter 2016 was 34.9 percent compared to 28.2 percent for the first quarter 2015. For both periods, the effective tax rate differs from the federal statutory rate primarily due to state tax credits and the domestic manufacturing tax deduction, partially offset by state taxes and nondeductible expenses. 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. It is lower in periods that include expenses that reduce taxable income but do not currently reduce pre-tax income. |
LIABILITIES FOR DISPOSED OPERAT
LIABILITIES FOR DISPOSED OPERATIONS | 3 Months Ended |
Mar. 26, 2016 | |
Environmental Remediation Obligations [Abstract] | |
Liabilities for Disposed Operations | Liabilities for Disposed Operations An analysis of the liabilities for disposed operations for the three months ended March 26, 2016 is as follows: Balance, December 31, 2015 $ 157,384 Expenditures charged to liabilities (2,979 ) Increase to liabilities 1,746 Balance, March 26, 2016 156,151 Less: Current portion (12,855 ) Non-current portion $ 143,296 In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy and/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 and non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of March 26, 2016 , 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 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 | 3 Months Ended |
Mar. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Stock Plans | Incentive Stock Plans The Company’s total stock based compensation cost, including allocated amounts, for the three months ended March 26, 2016 and March 28, 2015 was $0.6 million and $2.7 million , respectively. The Company also made new grants of restricted and performance shares to certain employees during the first quarter of 2016. The 2016 restricted shares vest over three to four years. The 2016 performance share awards are measured against an internal return on invested capital target and, depending on performance against the target, the awards will payout between 0 and 200 percent of target. The total number of performance shares earned will be adjusted up or down 25 percent , for certain participants, based on stock price performance relative to a peer group over the term of the plan, which would result in a final payout range of 0 to 250 percent . The following table summarizes the activity on the Company’s incentive stock awards for the period ended March 26, 2016 : Stock Options Restricted Stock Performance-Based Stock Units Performance-Based Restricted Stock Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 441,615 $ 31.67 384,383 $ 28.41 211,460 $ 17.51 141,698 $ 40.76 Granted — — 500,420 7.09 606,848 7.76 — — Forfeited (103 ) 36.55 (73,467 ) 14.33 (72,583 ) 9.71 (7,880 ) 37.32 Exercised or settled — — (9,604 ) 27.98 — — — — Expired or cancelled (24,743 ) 28.17 — — — — — — Outstanding at March 26, 2016 416,769 $ 31.88 801,732 $ 16.38 745,725 $ 15.46 133,818 $ 40.97 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 26, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a qualified non-contributory defined benefit pension plan covering a significant majority of its employees and an unfunded plan that provides benefits in excess of amounts allowable in the qualified plans under current tax law. Both the qualified plan and the unfunded excess plan are closed to new participants. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. The net pension and postretirement benefit costs that have been recorded are shown in the following tables: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 Service cost $ 1,306 $ 1,494 $ 202 $ 205 Interest cost 3,979 3,807 218 231 Expected return on plan assets (5,830 ) (5,809 ) — — Amortization of prior service cost 190 188 3 4 Amortization of losses 2,836 3,358 28 127 Amortization of negative plan amendment — — (38 ) (70 ) Total net periodic benefit cost $ 2,481 $ 3,038 $ 413 $ 497 The Company does not have any mandatory pension contribution requirements and does not expect to make any discretionary contributions in 2016 . |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 26, 2016 | |
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 litigation 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. While there can be no assurance, the ultimate outcome of these proceedings, 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. |
GUARANTEES
GUARANTEES | 3 Months Ended |
Mar. 26, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 26, 2016 , 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) The Company 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 between 2016 and 2019. They are expected to be renewed annually as required. |
BASIS OF PRESENTATION AND NEW20
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 26, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , as filed with the SEC. |
New or Recently Adopted Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation. The update simplifies several areas of accounting for share based payments. It is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires entities to recognize assets and liabilities that arise from finance and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows. It is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. 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 Company adopted as of March 26, 2016 and the effect of this accounting change on prior periods was a reclassification of debt issuance costs as of December 31, 2015 of $9.6 million and $0.3 million to “Long-term debt” from “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. Subsequently, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations. This standard provided implementation guidance for principal versus agent considerations. These standards 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 Measurements | The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 26, 2016 and December 31, 2015 , the Company’s inventory included the following: March 26, 2016 December 31, 2015 Finished goods $ 96,684 $ 103,866 Work-in-progress 2,783 2,344 Raw materials 11,407 16,593 Manufacturing and maintenance supplies 2,433 2,606 Total inventory $ 113,307 $ 125,409 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of March 26, 2016 and December 31, 2015 , the Company’s debt consisted of the following: March 26, 2016 December 31, 2015 Revolving Credit Facility of $250 million, $236 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at March 26, 2016 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 1.93% at March 26, 2016 54,575 55,950 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 1.51% at March 26, 2016 253,475 262,750 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 550,000 Total principal payments due 814,462 868,700 Less: original issue discount and debt issuance costs (9,616 ) (10,646 ) Total debt 804,846 858,054 Less: Current maturities of long-term debt (7,943 ) (7,938 ) Long-term debt $ 796,903 $ 850,116 |
Schedule of Maturities of Long-term Debt | Principal payments due during the next five years and thereafter are as follows: Remaining 2016 $ 6,300 2017 9,775 2018 11,150 2019 38,225 2020 2,900 Thereafter 746,112 Total principal payments $ 814,462 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 26, 2016 and December 31, 2015 , using market information and what management believes to be appropriate valuation methodologies: March 26, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 110,070 $ 110,070 $ — $ 101,303 $ 101,303 $ — Current maturities of long-term debt (7,943 ) — (8,400 ) (7,938 ) — (8,400 ) Fixed-rate long-term debt (498,747 ) — (412,726 ) (541,423 ) — (435,171 ) Variable-rate long-term debt (298,156 ) — (299,650 ) (308,693 ) — (310,300 ) |
ACCUMULATED OTHER COMPREHENSI24
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss was comprised of the following: Three Months Ended Unrecognized components of employee benefit plans, net of tax March 26, 2016 March 28, 2015 Balance, beginning of period $ (109,620 ) $ (103,444 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 193 192 Amortization of prior service costs 2,864 3,485 Amortization of negative plan amendment (38 ) (70 ) Tax benefit (1,102 ) (1,299 ) Total reclassifications for the period, net of tax 1,917 2,308 Balance, end of period $ (107,703 ) $ (101,136 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information. |
EARNINGS PER SHARE OF COMMON 25
EARNINGS PER SHARE OF COMMON STOCK (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 26, 2016 March 28, 2015 Net income $ 20,893 $ 10,521 Shares used for determining basic earnings per share of common stock 42,205,767 42,186,130 Dilutive effect of: Stock options — 4,948 Performance and restricted shares 66,769 13,696 Shares used for determining diluted earnings per share of common stock 42,272,536 42,204,774 Basic earnings per share (not in thousands) $ 0.50 $ 0.25 Diluted earnings per share (not in thousands) $ 0.49 $ 0.25 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive shares excluded from the computation of diluted earnings per share: Three Months Ended March 26, 2016 March 28, 2015 Stock options 417,198 384,112 Restricted stock 212,677 351,995 Performance shares 82,295 — Total 712,170 736,107 |
OTHER OPERATING EXPENSE, NET (T
OTHER OPERATING EXPENSE, NET (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Other operating expense, net was comprised of the following: Three Months Ended March 26, 2016 March 28, 2015 Loss on sale or disposal of property, plant and equipment $ 236 $ 382 Environmental reserve adjustment 1,746 — Miscellaneous expense (income) (1,042 ) 248 Total $ 940 $ 630 |
LIABILITIES FOR DISPOSITIONS AN
LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Change in Environmental Loss Contingencies | An analysis of the liabilities for disposed operations for the three months ended March 26, 2016 is as follows: Balance, December 31, 2015 $ 157,384 Expenditures charged to liabilities (2,979 ) Increase to liabilities 1,746 Balance, March 26, 2016 156,151 Less: Current portion (12,855 ) Non-current portion $ 143,296 |
INCENTIVE STOCK PLANS (Tables)
INCENTIVE STOCK PLANS (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity for Incentive Stock Awards | The following table summarizes the activity on the Company’s incentive stock awards for the period ended March 26, 2016 : Stock Options Restricted Stock Performance-Based Stock Units Performance-Based Restricted Stock Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 441,615 $ 31.67 384,383 $ 28.41 211,460 $ 17.51 141,698 $ 40.76 Granted — — 500,420 7.09 606,848 7.76 — — Forfeited (103 ) 36.55 (73,467 ) 14.33 (72,583 ) 9.71 (7,880 ) 37.32 Exercised or settled — — (9,604 ) 27.98 — — — — Expired or cancelled (24,743 ) 28.17 — — — — — — Outstanding at March 26, 2016 416,769 $ 31.88 801,732 $ 16.38 745,725 $ 15.46 133,818 $ 40.97 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Postretirement Benefit Costs | The net pension and postretirement benefit costs that have been recorded are shown in the following tables: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 26, 2016 March 28, 2015 March 26, 2016 March 28, 2015 Service cost $ 1,306 $ 1,494 $ 202 $ 205 Interest cost 3,979 3,807 218 231 Expected return on plan assets (5,830 ) (5,809 ) — — Amortization of prior service cost 190 188 3 4 Amortization of losses 2,836 3,358 28 127 Amortization of negative plan amendment — — (38 ) (70 ) Total net periodic benefit cost $ 2,481 $ 3,038 $ 413 $ 497 |
GUARANTEES (Tables)
GUARANTEES (Tables) | 3 Months Ended |
Mar. 26, 2016 | |
Guarantees [Abstract] | |
Schedule of Financial Guarantees Outstanding | The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 26, 2016 , 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) The Company 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 between 2016 and 2019. They are expected to be renewed annually as required. |
BASIS OF PRESENTATION AND NEW31
BASIS OF PRESENTATION AND NEW ACCOUNTING PRONOUNCEMENTS - New Accounting Pronouncements (Details) - ASU 2015-03 [Member] $ in Millions | Dec. 31, 2015USD ($) |
Other Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | $ (9.6) |
Prepaid Expenses and Other Current Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | (0.3) |
Long-term Debt [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | $ 9.9 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 96,684 | $ 103,866 |
Work-in-progress | 2,783 | 2,344 |
Raw materials | 11,407 | 16,593 |
Manufacturing and maintenance supplies | 2,433 | 2,606 |
Total inventory | $ 113,307 | $ 125,409 |
DEBT - Summary of Debt (Details
DEBT - Summary of Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 26, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total debt | $ 804,846,000 | $ 858,054,000 |
Total principal payments due | 814,462,000 | 868,700,000 |
Less: original issue discount and debt issuance costs | (9,616,000) | (10,646,000) |
Less: Current maturities of long-term debt | (7,943,000) | (7,938,000) |
Long-term debt | 796,903,000 | 850,116,000 |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 250,000,000 | |
Borrowing capacity after outstanding letters of credit | 235,783,802 | |
Total debt | $ 0 | 0 |
Line of Credit [Member] | Term A-1 Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.93% | |
Total debt | $ 54,575,000 | 55,950,000 |
Line of Credit [Member] | Term A-2 Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.51% | |
Patronage benefit | 0.67% | |
Total debt | $ 253,475,000 | 262,750,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 5.50% | |
Total debt | $ 506,412,000 | $ 550,000,000 |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Term A-1 Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Term A-2 Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread after patronage benefit | 1.08% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Debt Instrument [Line Items] | ||
Principal debt repayments | $ 44,732 | $ 20,000 |
Gain on debt extinguishment | 8,844 | $ 0 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Repurchased face amount | 43,600 | |
Repurchase amount | 34,100 | |
Gain on debt extinguishment | 8,800 | |
Unamortized debt issuance costs written off | 700 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt repayments | $ 10,649 |
DEBT - Schedule of Maturities o
DEBT - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Remaining 2,016 | $ 6,300 | |
2,017 | 9,775 | |
2,018 | 11,150 | |
2,019 | 38,225 | |
2,020 | 2,900 | |
Thereafter | 746,112 | |
Total principal payments | $ 814,462 | $ 868,700 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 26, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 110,070 | $ 101,303 |
Current maturities of long-term debt | (7,943) | (7,938) |
Fixed-rate long-term debt | (498,747) | (541,423) |
Variable-rate long-term debt | (298,156) | (308,693) |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 110,070 | 101,303 |
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 | (412,726) | (435,171) |
Variable-rate long-term debt | $ (299,650) | $ (310,300) |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ (17,139) | |
Balance, end of period | 2,901 | |
Employee benefit plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | (109,620) | $ (103,444) |
Tax benefit | (1,102) | (1,299) |
Total reclassifications for the period, net of tax | 1,917 | 2,308 |
Balance, end of period | (107,703) | (101,136) |
Amortization of losses [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications | 193 | 192 |
Amortization of prior service costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications | 2,864 | 3,485 |
Amortization of negative plan amendment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications | $ (38) | $ (70) |
EARNINGS PER SHARE OF COMMON 38
EARNINGS PER SHARE OF COMMON STOCK - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 20,893 | $ 10,521 |
Shares used for determining basic earnings per share of common stock (shares) | 42,205,767 | 42,186,130 |
Dilutive effect of: | ||
Stock options (shares) | 0 | 4,948 |
Performance and restricted shares (shares) | 66,769 | 13,696 |
Shares used for determining diluted earnings per share of common stock (shares) | 42,272,536 | 42,204,774 |
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.25 |
Diluted earnings per share (in dollars per share) | $ 0.49 | $ 0.25 |
EARNINGS PER SHARE OF COMMON 39
EARNINGS PER SHARE OF COMMON STOCK - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computation of diluted earnings per share | 712,170 | 736,107 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computation of diluted earnings per share | 417,198 | 384,112 |
Restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computation of diluted earnings per share | 212,677 | 351,995 |
Performance shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computation of diluted earnings per share | 82,295 | 0 |
OTHER OPERATING EXPENSE, NET (D
OTHER OPERATING EXPENSE, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Other Income and Expenses [Abstract] | ||
Loss on sale or disposal of property, plant and equipment | $ 236 | $ 382 |
Environmental reserve adjustment | 1,746 | 0 |
Miscellaneous expense (income) | (1,042) | 248 |
Total | $ 940 | $ 630 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective rate | 34.90% | 28.20% |
LIABILITIES FOR DISPOSED OPER42
LIABILITIES FOR DISPOSED OPERATIONS - Analysis of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Dec. 31, 2015 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance, December 31, 2015 | $ 157,384 | |
Expenditures charged to liabilities | (2,979) | |
Increase to liabilities | 1,746 | |
Balance, March 26, 2016 | 156,151 | |
Less: Current portion | (12,855) | $ (12,034) |
Non-current portion | $ 143,296 | $ 145,350 |
LIABILITIES FOR DISPOSED OPER43
LIABILITIES FOR DISPOSED OPERATIONS - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 26, 2016USD ($) | |
Environmental Remediation Obligations [Abstract] | |
Loss exposure in excess of accrual, high estimate | $ 65 |
Probable costs expected to be incurred, term | 20 years |
INCENTIVE STOCK PLANS - Narrati
INCENTIVE STOCK PLANS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation cost | $ 644 | $ 2,669 |
Total number of performance shares adjusted (up or down) | 25.00% | |
Minimum [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Maximum [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Performance Share Awards 2015 [Member] | Minimum [Member] | Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target payout percentage | 0.00% | |
Final payout range | 0.00% | |
Performance Share Awards 2015 [Member] | Maximum [Member] | Performance shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target payout percentage | 200.00% | |
Final payout range | 250.00% |
INCENTIVE STOCK PLANS - Schedul
INCENTIVE STOCK PLANS - Schedule of Outstanding Awards (Details) | 3 Months Ended |
Mar. 26, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance, Stock Options, Outstanding | shares | 441,615 |
Stock Options, Granted | shares | 0 |
Stock Options, Forfeited | shares | (103) |
Stock Options, Exercised or settled | shares | 0 |
Stock Options, Expired or cancelled | shares | (24,743) |
Ending Balance, Stock Options, Outstanding | shares | 416,769 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, Stock Options, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 31.67 |
Stock Options, Granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 |
Stock Options, Forfeited, Weighted Average Exercise Price (in dollars per share) | $ / shares | 36.55 |
Stock Options, Exercised or settled, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 |
Stock Options, Expired or cancelled, Weighted Average Exercise Price (in dollars per share) | $ / shares | 28.17 |
Ending Balance, Stock Options, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 31.88 |
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 | 384,383 |
Awards, Granted, Number | shares | 500,420 |
Awards, Forfeited, Number | shares | (73,467) |
Awards, Exercised or settled, Number | shares | (9,604) |
Awards, Expired or cancelled, Number | shares | 0 |
Ending Balance, Awards, Outstanding, Number | shares | 801,732 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 28.41 |
Awards, Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 7.09 |
Awards, Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 14.33 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 27.98 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 16.38 |
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 | 211,460 |
Awards, Granted, Number | shares | 606,848 |
Awards, Forfeited, Number | shares | (72,583) |
Awards, Exercised or settled, Number | shares | 0 |
Awards, Expired or cancelled, Number | shares | 0 |
Ending Balance, Awards, Outstanding, Number | shares | 745,725 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 17.51 |
Awards, Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 7.76 |
Awards, Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 9.71 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 15.46 |
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 | 141,698 |
Awards, Granted, Number | shares | 0 |
Awards, Forfeited, Number | shares | (7,880) |
Awards, Exercised or settled, Number | shares | 0 |
Awards, Expired or cancelled, Number | shares | 0 |
Ending Balance, Awards, Outstanding, Number | shares | 133,818 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 40.76 |
Awards, Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Awards, Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 37.32 |
Awards, Exercised or settled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Awards, Expired or cancelled, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Ending Balance, Awards, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 40.97 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Pension [Member] | ||
Components of Net Periodic Benefit Cost | ||
Service cost | $ 1,306 | $ 1,494 |
Interest cost | 3,979 | 3,807 |
Expected return on plan assets | (5,830) | (5,809) |
Amortization of prior service cost | 190 | 188 |
Amortization of losses | 2,836 | 3,358 |
Amortization of negative plan amendment | 0 | 0 |
Total net periodic benefit cost | 2,481 | 3,038 |
Postretirement [Member] | ||
Components of Net Periodic Benefit Cost | ||
Service cost | 202 | 205 |
Interest cost | 218 | 231 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 3 | 4 |
Amortization of losses | 28 | 127 |
Amortization of negative plan amendment | (38) | (70) |
Total net periodic benefit cost | $ 413 | $ 497 |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | Mar. 26, 2016USD ($) |
Financial Commitments | |
Maximum Potential Payment | $ 70,417 |
Standby letters of credit [Member] | |
Financial Commitments | |
Maximum Potential Payment | 14,216 |
Surety bonds [Member] | |
Financial Commitments | |
Maximum Potential Payment | $ 56,201 |