Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 16, 2017 | Jun. 24, 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 43,260,052 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 559,627,666 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Sales | $ 868,731 | $ 941,384 | $ 957,689 |
Cost of Sales | (687,458) | (738,930) | (733,942) |
Gross Margin | 181,273 | 202,454 | 223,747 |
Selling, general and administrative expenses | (37,942) | (47,662) | (39,969) |
Other operating expense, net (Note 12) | (5,684) | (35,269) | (120,823) |
Operating Income | 137,647 | 119,523 | 62,955 |
Interest expense | (34,627) | (36,869) | (22,378) |
Interest and miscellaneous income (expense), net | 737 | 210 | (106) |
Gain on debt extinguishment | 8,844 | 0 | 0 |
Income Before Income Taxes | 112,601 | 82,864 | 40,471 |
Income tax expense (Note 13) | (39,315) | (27,607) | (8,816) |
Net Income | $ 73,286 | $ 55,257 | $ 31,655 |
Earnings Per Share of Common Stock (Note 11) | |||
Basic earnings per share (in dollars per share) | $ 1.61 | $ 1.31 | $ 0.75 |
Diluted earnings per share (in dollars per share) | 1.55 | 1.30 | 0.75 |
Dividends Declared Per Share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.14 |
Comprehensive Income: | |||
Net Income | $ 73,286 | $ 55,257 | $ 31,655 |
Other Comprehensive Income (Loss) (Note 8) | |||
Net loss from pension and postretirement plans, net of income tax benefit of $254, $3,313 and $15,944 | (460) | (6,176) | (28,326) |
Total other comprehensive loss | (460) | (6,176) | (28,326) |
Comprehensive Income | $ 72,826 | $ 49,081 | $ 3,329 |
Consolidated Statements of Inc3
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss from pension and postretirement plans, income tax benefit | $ 254 | $ 3,313 | $ 15,944 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 326,655 | $ 101,303 |
Accounts receivable, less allowance for doubtful accounts of $151 and $151 | 37,626 | 68,892 |
Inventory (Note 4) | 118,368 | 125,409 |
Prepaid and other current assets | 36,859 | 32,149 |
Total current assets | 519,508 | 327,753 |
Property, Plant and Equipment, Net (Note 5) | 801,039 | 803,838 |
Deferred Tax Assets (Note 13) | 51,246 | 97,420 |
Other Assets | 50,146 | 49,601 |
Total Assets | 1,421,939 | 1,278,612 |
Current Liabilities | ||
Accounts payable | 36,379 | 44,992 |
Accrued customer incentives and prepayments | 34,541 | 34,685 |
Accrued payroll and benefits | 21,902 | 20,743 |
Current maturities of long-term debt (Note 6) | 9,593 | 7,938 |
Other current liabilities | 10,783 | 11,052 |
Current liabilities for disposed operations (Note 14) | 13,781 | 12,034 |
Total current liabilities | 126,979 | 131,444 |
Long-Term Debt (Note 6) | 773,689 | 850,116 |
Non-Current Liabilities for Disposed Operations (Note 14) | 139,129 | 145,350 |
Pension and Other Postretirement Benefits (Note 16) | 161,729 | 162,084 |
Other Non-Current Liabilities | 8,664 | 6,757 |
Commitments and Contingencies | ||
Stockholders’ Equity (Deficit) (Note 10) | ||
Preferred stock, 10,000,000 shares authorized at $0.01 par value, 1,725,000 and 0 issued and outstanding as of December 31, 2016 and 2015, respectively, aggregate liquidation preference $172,500 | 17 | 0 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 43,261,905 and 42,872,435 issued and outstanding, as of December 31, 2016 and 2015, respectively | 433 | 429 |
Additional paid-in capital | 242,402 | 70,213 |
Retained earnings | 78,977 | 21,839 |
Accumulated other comprehensive loss (Note 8) | (110,080) | (109,620) |
Total Stockholders’ Equity (Deficit) | 211,749 | (17,139) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 1,421,939 | $ 1,278,612 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 151,000 | $ 151,000 |
Preferred shares, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares issued (in shares) | 1,725,000 | 0 |
Preferred shares, shares outstanding (in shares) | 1,725,000 | 0 |
Common shares, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares issued (in shares) | 43,261,905 | 42,872,435 |
Common shares, shares outstanding (in shares) | 43,261,905 | 42,872,435 |
Preferred Stock, Liquidation Preference, Value | $ 172,500,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net income | $ 73,286 | $ 55,257 | $ 31,655 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 88,274 | 89,189 | 85,607 |
Stock-based incentive compensation expense | 7,217 | 9,992 | 8,738 |
Amortization of capitalized debt costs and debt discount | 1,919 | 2,116 | 1,007 |
Deferred income taxes | 45,199 | (9,757) | (33,672) |
Increase in liabilities for disposed operations | 5,298 | 6,930 | 88,548 |
Impairment charges | 0 | 28,462 | 7,184 |
Gain on debt extinguishment | (8,844) | 0 | 0 |
Amortization of losses and prior service costs from pension and postretirement plans | 12,203 | 14,702 | 9,113 |
Loss from sale/disposal of property, plant and equipment | 2,422 | 1,364 | 2,123 |
Other | (3,429) | 398 | (177) |
Changes in operating assets and liabilities: | |||
Receivables | 31,266 | 696 | 1,710 |
Inventories | 7,041 | 14,800 | (11,503) |
Accounts payable | (2,048) | (19,789) | (4,365) |
Accrued liabilities | 167 | 15,466 | 12,877 |
Contributions to pension and other postretirement benefit plans | (13,135) | (3,116) | (1,446) |
All other operating activities | (4,839) | 1,223 | (3,988) |
Expenditures for disposed operations | (9,772) | (6,275) | (5,659) |
Cash Provided by Operating Activities | 232,225 | 201,658 | 187,752 |
Investing Activities | |||
Capital expenditures | (88,703) | (77,424) | (74,791) |
Purchase of timber deeds | 0 | 0 | (12,692) |
Other | 2,143 | 0 | (2,978) |
Cash Used for Investing Activities | (86,560) | (77,424) | (90,461) |
Financing Activities | |||
Issuance of mandatory convertible preferred stock | 166,609 | 0 | 0 |
Issuance of debt | 0 | 0 | 1,025,000 |
Repayment of debt | (71,031) | (77,100) | (79,200) |
Dividends paid on common stock | (11,840) | (11,816) | (5,926) |
Dividends paid on preferred stock | (3,641) | 0 | 0 |
Debt issuance costs | 0 | 0 | (15,432) |
Other | (410) | 8 | 823 |
Net payments to Rayonier | 0 | 0 | (956,579) |
Cash Provided by (Used for) Financing Activities | 79,687 | (88,908) | (31,314) |
Cash and Cash Equivalents | |||
Change in cash and cash equivalents | 225,352 | 35,326 | 65,977 |
Balance, beginning of year | 101,303 | 65,977 | 0 |
Balance, end of year | 326,655 | 101,303 | 65,977 |
Cash paid (received) during the period: | |||
Interest | 35,160 | 38,189 | 19,567 |
Income taxes | (4,727) | 31,667 | 34,588 |
Non-cash investing and financing activities: | |||
Capital assets purchased on account | 10,155 | 16,720 | 16,637 |
Capital lease obligation | $ 3,697 | $ 0 | $ 0 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 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”). 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 Rayonier’s performance fibers business for the six months ended June 27, 2014 . The Company’s Consolidated Balance Sheets as of December 31, 2016 and 2015 consist of the consolidated balances of Rayonier Advanced Materials. 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 periods prior to the Separation, 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, 2016 and 2015 , consist entirely of the consolidated results of Rayonier Advanced Materials. Nature of Business Operations The Company 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 2017 and 2019. Pricing under these contracts is 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. Reclassifications Certain 2015 and 2014 amounts have been reclassified to conform with the current year presentation. Fiscal Year The Company’s fiscal year end is the last day of the calendar year. For interim reporting periods, the Company uses the last Saturday of the fiscal quarter. 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. Production related assets under capital leases are depreciated using the straight-line method over the related lease term. 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 $84.8 million , $87.5 million and $84.6 million for the years ended December 31, 2016 , 2015 and 2014 , 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 as the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flows model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. The Company performs scheduled inspections, repairs and maintenance of plant machinery and equipment at the Company’s manufacturing plants during a full plant shutdown. The Company’s Jesup, Georgia plant has an annual shutdown while the Company’s Fernandina Beach, Florida plant is on an 18-month shutdown cycle. Costs associated with these planned outage periods are referred to as shutdown costs. Shutdown costs are costs incurred to ensure the long-term reliability and safety of operations. Shut down costs are accounted for using the deferral method, under which expenditures related to shutdown are capitalized in other assets when incurred and amortized to production costs on a straight-line basis over the period benefited, or the period of time until the next scheduled shut down. Shut down costs are classified as working capital in operating activities in the consolidated statements of cash flows. As of December 31, 2016 and 2015 the Company had $15.8 million and $11.8 million in shut down costs capitalized in other current assets and $1.1 million and $0 in shut down costs capitalized in other assets, respectively. 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 2016 , 2015 and 2014 , interest capitalized to property, plant and equipment was $0.8 million , $1.3 million and $0.1 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 flows 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 2017 through 2036 , 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, 2016 and 2015 , 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’ equity (deficit) (net of taxes). If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, the Company will amortize them over the average future service period of employees. Income Taxes For the period 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. In the accompanying Consolidated Financial Statements for period prior to the Separation, the Company’s provision for income taxes has been determined on a separate return basis. 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. Recently Adopted Accounting Pronouncements In May 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) . The update exempts investments measured using the net asset value (NAV) practical expedient in ASC 820, Fair Value Measurement, from categorization within the fair value hierarchy. It became effective for fiscal years beginning after December 15, 2015. The Company adopted as of January 1, 2016 and retrospectively applied the guidance. The adoption did not have a material impact on the Company’s financial statements. 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 became effective for fiscal years beginning after December 15, 2015. The Company adopted as of March 26, 2016. 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. New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation. The update simplifies several areas of accounting for share based payments. The guidance also includes the acceptable or required transition methods for each of the various amendments included in the new standard. It is effective for fiscal years beginning after December 15, 2016. The Company expects to record approximately $2.2 million in tax expense during the first quarter of 2018 as a result of the adoption of ASU 2016-09. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires entities to recognize assets and liabilities arising 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. Early adoption is permitted. The Company is 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. 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as amended and/or clarified by ASU Nos. 2016-08, 2016-10, 2016-12, and 2016-20, 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 the consideration to which the company expects to be entitled to in exchange for those goods or services. The new revenue standard (and subsequent amendments) will be effective for the Company’s first quarter 2018 Form 10-Q filing. In preparation for the 2018 adoption date, management is in the process of evaluating the standard’s overall impact on the Company’s revenue recognition process and the resulting adoption impact. Under ASC 606, revenue is recognized as control is transferred to the customer either at a point in time or over time. The assessment of whether control transfers over time or at a point in time is critical to determining when to recognize revenue. Management is evaluating whether its contracts satisfy the criteria for revenue recognition over time for customized goods. If the Company determines the over time criteria is satisfied, revenue recognition will be accelerated for cellulose specialties and commodity products contracts. If management determines the over time criteria for revenue recognition is not met, the Company will recognize revenue at a point in time. If a point in time revenue recognition determination is made, the Company expects revenue recognition to remain substantially consistent with current practice. The Company expects to adopt the standard on a modified retrospective basis and is currently in the process of assessing changes required to its business processes, systems and controls to support revenue recognition and related financial statement disclosures under the new standard. Subsequent Events Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through February 24, 2017 , the date these financial statements were available to be issued. Two subsequent events warranting disclosure were identified. On January 17, 2017, our board of directors declared a first quarter 2017 cash dividend of $2.00 per share of our mandatory convertible preferred stock. The dividend was paid on February 15, 2017 to mandatory convertible preferred stockholders of record as of February 1, 2017. On February 24, 2017, the Company declared a first quarter 2017 cash dividend of $0.07 per share of common stock. The dividend is payable on March 31, 2017 to stockholders of record on March 17, 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
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 was $8.0 million for the year ended December 31, 2014 . There were no comparable charges for the years ended December 31, 2016 and 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 was $27.3 million for the year ended December 31, 2014 . There were no comparable charges for the years ended December 31, 2016 and 2015 . |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2016 | |
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 representative 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 2016 2015 2014 Cellulose specialties $ 694,603 $ 766,940 $ 843,473 Commodity products and other 174,128 174,444 114,216 Total sales $ 868,731 $ 941,384 $ 957,689 Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination (a) 2016 % 2015 % 2014 % United States $ 348,570 40 $ 398,739 42 $ 422,648 44 China 250,044 29 256,979 27 255,954 27 Japan 136,817 16 132,480 14 138,961 14 Europe 88,191 10 91,847 10 93,957 10 Latin America 9,876 1 8,176 1 5,510 1 Other Asia 27,280 3 25,373 3 33,250 3 All other 7,953 1 27,790 3 7,409 1 Total sales $ 868,731 100 $ 941,384 100 $ 957,689 100 (a) All sales to foreign countries are denominated in U.S. dollars. The Company had sales to three significant customers which represented over 10 percent of total sales for the three years ended December 31 : Percentage of Sales 2016 2015 2014 Eastman Chemical Company 25% 28% 31% Nantong Cellulose Fibers, Co., Ltd. 17% 18% 18% Daicel Corporation 14% 13% 15% |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory As of December 31, 2016 and 2015 , the Company’s inventory included the following: 2016 2015 Finished goods $ 94,858 $ 103,866 Work-in-progress 3,422 2,344 Raw materials 17,183 16,593 Manufacturing and maintenance supplies 2,905 2,606 Total inventory $ 118,368 $ 125,409 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of December 31, 2016 and 2015 , the Company’s property, plant and equipment included the following: 2016 2015 Land and land improvements $ 15,502 $ 15,426 Buildings 183,374 181,707 Machinery and equipment 1,843,057 1,764,477 Construction in progress 14,439 65,197 Total property, plant and equipment, gross 2,056,372 2,026,807 Accumulated depreciation (1,255,333 ) (1,222,969 ) Total property, plant and equipment, net $ 801,039 $ 803,838 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2016 and 2015 , the Company’s debt consisted of the following: 2016 2015 Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 30,450 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 1.84% at December 31, 2016 251,300 262,750 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 550,000 Capital Lease obligation 3,676 — Total principal payments due 791,838 868,700 Less: original issue discount and debt issuance costs (8,556 ) (10,646 ) Total debt 783,282 858,054 Less: Current maturities of long-term debt (9,593 ) (7,938 ) Long-term debt $ 773,689 $ 850,116 During the first quarter 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. During the year ended December 31, 2016 , the Company also made $25.5 million and $11.5 million in principal debt repayments on the Term A-1 and Term A-2 Loan Facilities, respectively. Debt and capital lease payments due during the next five years and thereafter are as follows: Capital Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments 2017 $ 515 $ 249 $ 266 $ 9,775 2018 515 230 285 11,150 2019 515 209 306 18,225 2020 515 187 328 2,900 2021 515 163 352 239,700 Thereafter 2,533 394 2,139 506,412 Total payments $ 5,108 $ 1,432 $ 3,676 $ 788,162 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, 2017, the Company may redeem up to 40 percent percent of the Senior Notes using proceeds from certain equity offerings in accordance with the terms of the indenture. 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. 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 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, 2016 , 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, 2016 , the Company had no outstanding balance on the Revolving Credit Facility. At December 31, 2016 , the Company had $229 million of available borrowings under the Revolving Credit Facility, net of $21 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 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, 2016 , the Company was in compliance with all covenants. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and 2015 , using market information and what management believes to be appropriate valuation methodologies: December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) (a) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 326,655 $ 326,655 $ — $ 101,303 $ 101,303 $ — Current maturities of long-term debt (9,327 ) — (9,775 ) (7,938 ) — (8,400 ) Fixed-rate long-term debt (499,444 ) — (474,761 ) (541,423 ) — (435,171 ) Variable-rate long-term debt (270,836 ) — (271,975 ) (308,693 ) — (310,300 ) (a) Table excludes the Company’s capital lease obligation. 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, 2016 | |
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 2016 2015 2014 Balance, beginning of period $ (109,620 ) $ (103,444 ) $ (39,699 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 11,581 14,110 8,217 Amortization of prior service costs 775 767 1,177 Amortization of negative plan amendment (153 ) (175 ) (281 ) Total reclassifications, before tax 12,203 14,702 9,113 Other loss before reclassifications (12,917 ) (24,191 ) (53,383 ) Other comprehensive loss, before tax (714 ) (9,489 ) (44,270 ) Tax benefit 254 3,313 15,944 Net other comprehensive loss (460 ) (6,176 ) (28,326 ) Net transfer from Rayonier (b) — — (35,419 ) Balance, end of period $ (110,080 ) $ (109,620 ) $ (103,444 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 16 — 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 10 — Stockholders' Equity (Deficit) for additional information. |
LignoTech Florida
LignoTech Florida | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
LignoTech Florida | LignoTech Florida In December 2016, the Company announced the fulfillment of all conditions precedent related to the LignoTech Florida (“LTF”) venture with Borregaard ASA (“Borregaard”) to manufacture, market and sell lignin-based products from the Company’s Fernandina Beach facility. The Company owns 45 percent of LTF and Borregaard owns 55 percent . The Company will account for its investment in LTF as an equity method investment. As of December 31, 2016 , there was no impact on the Company’s financial statements from its LTF investment. The LTF plant is expected to be completed in two phases over five years and require an aggregate capital investment of approximately $135 million to yield an annual capacity of 150,000 metric tons. Construction for the project began in December 2016. LTF operations are expected to begin mid-2018. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders' Equity (Deficit) 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 Preferred Stock Additional Paid in Capital Retained Earnings (Accumulated Deficit) Transfers (to) from Rayonier, net Accumulated Other Comprehensive Loss Total Stockholders’ (Deficit) Equity Shares Par Value Shares Par Value 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 Common stock 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 deficit on stock-based compensation — — — — (2,558 ) — — — (2,558 ) Repurchase of common stock (2,060 ) — — — (12 ) — — — (12 ) Common stock 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 income — — — — — 73,286 — — 73,286 Net loss from pension and postretirement plans — — — — — — — (460 ) (460 ) Issuance of preferred stock — — 1,725,000 17 166,592 — — — 166,609 Issuance of common stock under incentive stock plans 422,941 4 — — (4 ) — — — — Stock-based compensation — — — — 7,217 — — — 7,217 Excess tax deficit on stock-based compensation — — — — (1,228 ) — — — (1,228 ) Repurchase of common stock (33,471 ) — — — (388 ) — — — (388 ) Common stock dividends ($0.28 per share) — — — — — (12,507 ) — — (12,507 ) Preferred stock dividends ($2.11 per share) — — — — — (3,641 ) — — (3,641 ) Balance, December 31, 2016 43,261,905 433 1,725,000 17 242,402 78,977 — (110,080 ) 211,749 Series A Mandatory Convertible Preferred Stock On August 4, 2016, the Company completed a registered public offering of 1,725,000 shares of the Company’s 8.00% Series A Mandatory Convertible Preferred Stock (the “Preferred Stock”), at a public offering price of $100.00 per share. Net proceeds were $166.6 million after deducting underwriting discounts, commissions and expenses. Each share of the Preferred Stock will automatically convert into shares of common stock, subject to anti-dilution and other adjustments, on the mandatory conversion date, which is expected to be August 15, 2019. The number of shares of common stock issuable on conversion will be determined based on the volume-weighted average price of the Company’s common stock over a 20 trading day period immediately prior to the mandatory conversion date (“Applicable Market Value”). If the Applicable Market Value for our common stock is greater than $15.17 or less than $12.91 , the conversion rate per share of Preferred Stock will be 6.5923 or 7.7459 , respectively. If the Applicable Market Value is between $15.17 and $12.91 , the conversion rate per share of Preferred Stock will be between 6.5923 and 7.7459 . Subject to certain restrictions, at any time prior to August 15, 2019, holders of the Preferred Stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate of 6.5923 shares of common stock per share of Preferred Stock, subject to adjustment. Preferred Stock holders have no voting rights unless dividends on the Preferred Stock have not been declared and paid for six or more dividend periods. In those circumstances holders will be entitled to vote for the election of a total of two additional members of the Company’s board of directors. Dividends on the Preferred Stock are payable on a cumulative basis if and when they are declared by our board of directors. If declared, dividends will be paid at an annual rate of 8.00% of the liquidation preference of $100 per share. Dividend payment dates are February 15, May 15, August 15 and November 15 of each year, commencing on November 15, 2016 and ending on August 15, 2019. Dividends may be paid in cash or, subject to certain limitations, in shares of common stock or any combination of cash and shares of common stock. The terms of the Preferred Stock provide that, unless full cumulative dividends have been paid or set aside for payment on all outstanding Preferred Stock for all prior dividend periods, no dividends may be declared or paid on common stock. 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 year ended December 31, 2014 . There were no net payments to/from Rayonier for the years ended December 31, 2016 and 2015 . 2014 Allocation of costs from Rayonier (a) $ (35,279 ) Cash receipts received by Rayonier on Company’s behalf 472,780 Cash disbursements made by Rayonier on Company’s behalf (484,318 ) 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 ) Non-cash adjustments: Stock-based compensation (3,562 ) 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 ) (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 14 - Liabilities for Disposed Operations for additional information) • $73.8 million of employee benefit plan liabilities (See Note 16 - 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, 2016 | |
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, the Company 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 available for common stockholders 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, restricted shares and Preferred Stock. The following table provides details of the calculations of basic and diluted EPS for the three years ended December 31 : 2016 2015 2014 Net income $ 73,286 $ 55,257 $ 31,655 Less: Preferred Stock dividends (5,404 ) — — Net income available for common stockholders $ 67,882 $ 55,257 $ 31,655 Shares used for determining basic earnings per share of common stock 42,279,811 42,194,891 42,166,629 Dilutive effect of: Stock options — — 47,073 Performance and restricted shares 422,962 27,968 25,980 Preferred Stock 4,443,048 — — Shares used for determining diluted earnings per share of common stock 47,145,821 42,222,859 42,239,682 Basic earnings per share (not in thousands) $ 1.61 $ 1.31 $ 0.75 Diluted earnings per share (not in thousands) $ 1.55 $ 1.30 $ 0.75 Anti-dilutive instruments excluded from the computation of diluted earnings per share: 2016 2015 2014 Stock options 399,012 447,524 229,001 Restricted stock 24,072 220,348 6,282 Performance shares 66,327 3,379 — Total 489,411 671,251 235,283 |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Dec. 31, 2016 | |
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 : 2016 2015 2014 Increase in environmental liabilities for disposed operations (a) $ (5,298 ) $ (6,930 ) $ (70,129 ) One-time separation and legal costs — 802 (25,680 ) 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 (2,422 ) (998 ) (2,123 ) Insurance settlement 897 1,000 2,881 Miscellaneous income (expense) 1,139 (681 ) (169 ) Total $ (5,684 ) $ (35,269 ) $ (120,823 ) (a) The increase in environmental liabilities for disposed operations in 2016 , 2015 and 2014 of $5.3 million , $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 14 — 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 14 — Liabilities for Disposed Operations and Note 18 — 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, 2016 | |
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: 2016 2015 2014 Current Federal $ 5,516 $ (37,561 ) $ (42,183 ) State and other 368 197 (305 ) 5,884 (37,364 ) (42,488 ) Deferred Federal (44,488 ) 11,073 34,301 State and other (711 ) (1,316 ) 641 (45,199 ) 9,757 34,942 Changes in valuation allowance — — (1,270 ) Total $ (39,315 ) $ (27,607 ) $ (8,816 ) A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate was as follows: 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Domestic manufacturing production deduction (a) — (4.2 ) (14.4 ) Cellulosic Biofuel Producer Credit reserve reversal — — (11.8 ) State credits (0.8 ) (0.9 ) (2.9 ) Nondeductible executive compensation 0.6 1.2 2.4 Research credit adjustment — — 2.4 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 0.1 0.8 1.3 Income tax rate as reported 34.9 % 33.3 % 21.8 % (a) The impact of the manufacturing deduction on the effective tax rate was greater in 2014 due to expenses that reduced pre-tax income but were not currently deductible for income tax purposes. The Company anticipates it will have no taxable income for 2016 as a result of higher tax depreciation and a tax accounting method change related to the deductibility of certain repair expenditures. As the manufacturing deduction is limited by taxable income, there is no benefit recognized in the current year. 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: 2016 2015 Gross deferred tax assets: Pension, postretirement and other employee benefits $ 71,842 $ 70,180 State tax credit carryforwards (a) 17,967 16,498 Environmental liabilities 54,351 55,945 Capitalized costs 10,894 14,088 Federal net operating losses (a) 8,951 — State net operating losses (a) 3,102 3,204 Total gross deferred tax assets 167,107 159,915 Less: Valuation allowance (20,821 ) (19,702 ) Total deferred tax assets after valuation allowance 146,286 140,213 Gross deferred tax liabilities: Accelerated depreciation (b) (92,287 ) (41,006 ) Other (2,753 ) (1,787 ) Total gross deferred tax liabilities (95,040 ) (42,793 ) Net deferred tax asset $ 51,246 $ 97,420 (a) The following relates to tax credit carryforwards and net operating losses as of December 31, 2016 : Gross Amount Tax Effected Valuation Allowance Expiration State tax credit carryforwards $ 17,967 $ 17,967 $ 17,719 2018 - 2025 State net operating losses 81,861 3,102 3,102 2016 - 2033 Federal net operating losses 25,573 8,951 — 2036 (b) In 2016, the Company’s tax depreciation was higher than normal due to the timing of certain assets’ place-in-service dates and tax accounting method change for repair expenditures disclosed above. 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, 2016 , 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, 2016 , 2015 and 2014 , 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: 2016 2015 2014 Balance at January 1, $ — $ — $ 4,767 Decreases related to prior year tax positions — — (4,767 ) Increases related to prior year tax positions — — — Balance at December 31, $ — $ — $ — During 2014, the Company received a resolution from the Internal Revenue Service regarding Rayonier’s 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 amended 2009 tax return due to the inclusion of the Cellulosic Biofuel Producer Credit 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 2013 - 2016 State of Florida 2013 - 2016 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. |
Liabilities for Disposed Operat
Liabilities for Disposed Operations | 12 Months Ended |
Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |
Liabilities for Disposed Operations | Liabilities for Disposed Operations Under the terms of the Separation, the Company assumed certain environmental liabilities not included in the Company’s historical combined financial statements, which 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 , as well as the costs of legally-required financial assurance relating to the Company’s obligations. These environmental liabilities do not include potential third-party recoveries to which the Company 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, 2016 and 2015 . An analysis of the activity for the years ended December 31, 2016 and 2015 is as follows: December 31, 2014 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2015 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2016 Liability Augusta, Georgia $ 22,207 $ (1,187 ) $ 1,861 $ 22,881 $ (1,206 ) $ 1,212 $ 22,887 Spartanburg, South Carolina 18,984 (933 ) (575 ) 17,476 (792 ) (4,904 ) 11,780 Baldwin, Florida 24,528 (838 ) 3,270 26,960 (3,019 ) 2,831 26,772 Other SWP sites 37,397 (1,731 ) 226 35,892 (1,495 ) 4,799 39,196 Total SWP 103,116 (4,689 ) 4,782 103,209 (6,512 ) 3,938 100,635 Port Angeles, Washington 39,913 (1,040 ) 532 39,405 (809 ) 714 39,310 All other sites 13,700 (546 ) 1,616 14,770 (2,451 ) 646 12,965 Total $ 156,729 $ (6,275 ) $ 6,930 $ 157,384 $ (9,772 ) $ 5,298 $ 152,910 Less: Current portion (7,241 ) (12,034 ) (13,781 ) Non-Current portion $ 149,488 $ 145,350 $ 139,129 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. As a result of spending, the Company increased its estimated liability by $1.2 million and $1.9 million in December 31, 2016 and 2015 , respectively, to maintain a 20 year projection of costs in the liability. Total spending related to the site as of December 31, 2016 was $72.5 million . Liabilities are recorded to cover obligations for the estimated remaining remedial, monitoring activities and financial assurance costs through 2036. 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 (“DHEC”) 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 2016, the Company decreased its estimated liability by $4.9 million primarily due to expected lower estimated costs for addressing certain off-site areas based on the results of a study performed by the Company and approved by DHEC. In 2015, the Company decreased its estimated liability by $0.6 million primarily due to expected lower costs for operating, monitoring and maintenance activities. Total spending related to the site as of December 31, 2016 was $43.5 million . Liabilities are recorded to cover obligations for the estimated remaining assessment, remediation and monitoring activities and financial assurance costs through 2036. 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. The site’s most recent permit is currently in the renewal process. 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 2016, the Company increased its estimated liability by $2.8 million primarily due to additional expected remediation costs and to maintain its liability at the 20 year projected level as a result of current year spending. 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. Total spending as of December 31, 2016 was $26.7 million . Liabilities are recorded to cover obligations for the estimated remaining assessment, remedial, monitoring activities and financial assurance costs through 2036. 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 2016 and 2015, the Company increased the estimated liability by $0.7 million and $0.5 million , respectively, to maintain its liability at the 20 year projected level as a result of current year spending. Total spending related to the site as of December 31, 2016 was $46.9 million . Liabilities are recorded to cover obligations for the estimable assessment, remediation, monitoring obligations and financial assurance costs through 2036. 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 and providing financial assurance relating thereto; 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, 2016 , the Company estimates this exposure could range up to approximately $66 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. This estimate excludes liabilities which would otherwise be considered reasonably possible but for the fact that they 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, 2016 | |
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, 2016 , approximately 1.8 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, 2016 , 2015 and 2014 was $7.2 million , $10.0 million and $8.7 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 the Company 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: 2016 2015 2014 Selling, general and administrative expenses $ 6,330 $ 8,124 $ 7,763 Cost of sales 887 1,868 975 Total stock-based compensation expense $ 7,217 $ 9,992 $ 8,738 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 restricted stock and performance share awards are presented for Rayonier Advanced Materials stock only. Option awards include Rayonier Advanced Materials 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. No options have been granted since the Separation. 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 years ended December 31, 2016 and 2015 no options were granted. The following chart provides a tabular overview of the weighted average assumptions and related fair value calculations of options granted for the year ended December 31, 2014 : 2014 Expected volatility 40.1 % Dividend yield 4.2 % Risk-free rate 2.2 % Expected life (in years) 6.3 Fair value per share of options granted $ 9.31 Fair value of options granted $ 90 A summary of the Company’s stock option activity is presented below for the year ended December 31, 2016 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 441,615 $ 31.67 Forfeited (1,435 ) 36.55 Exercised — — Expired (41,168 ) 29.81 Outstanding at December 31, 2016 399,012 $ 31.85 4.2 $ — Options vested and expected to vest 399,012 $ 31.85 4.2 $ — Options exercisable at December 31, 2016 374,702 $ 31.53 4.0 $ — A summary of additional information pertaining to stock options granted to employees is presented below: 2016 2015 2014 Intrinsic value of options exercised $ — $ — $ 320 Fair value of options vested $ 444 $ 717 $ 90 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 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, 2016 , there was $4.3 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 1.7 years . The following table summarizes the activity of restricted shares granted to employees for the three years ended December 31 : 2016 2015 2014 Restricted shares granted 598,219 277,298 172,894 Weighted average price of restricted shares granted $ 8.03 $ 20.83 $ 41.51 Intrinsic value of restricted stock outstanding $ 10,326 $ 3,763 $ 3,235 Fair value of restricted stock vested $ 5,890 $ 690 $ 100 A summary of the Company’s restricted stock activity is presented below for the year ended December 31, 2016 : Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 384,383 $ 28.41 Granted 598,219 8.03 Forfeited (147,958 ) 12.08 Vested (166,745 ) 35.45 Outstanding at December 31, 2016 667,899 $ 11.97 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 performance against an internal performance metric or a combination of an internal metric and a market condition. Performance under the Company’s 2014 award is determined by comparing the Company’s total shareholder return versus selected peer group companies. Company awards which are measured against a market condition or incorporate market conditions are valued using a Monte Carlo simulation model. The model generates the fair value of the market-based award or market-based portion of the award at the grant date. The related expense is then amortized over the award’s vesting period. As of December 31, 2016 , there was $7.6 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 . The following table summarizes the activity of the Company’s performance share units granted to its employees for the three years ended December 31 : 2016 2015 2014 Performance-Based Stock Units Performance-Based Stock Units Performance-Based Stock Units Performance-Based Restricted Stock Common shares of stock reserved for performance shares 1,304,419 422,920 95,952 286,737 Weighted average fair value of performance share units granted $ 7.79 $ 17.51 $ 42.27 $ 40.41 Intrinsic value of outstanding performance share units $ 8,169 $ 2,070 $ 1,070 $ 3,197 A summary of the Company’s performance-share activity is presented below for the year ended December 31, 2016 : 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, 2016 211,460 $ 17.51 141,698 $ 40.76 Granted 610,100 7.79 — — Forfeited (102,669 ) 9.76 — — Canceled — — (13,660 ) 38.07 Outstanding at December 31, 2016 718,891 $ 10.05 128,038 $ 41.05 The 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 three years ended December 31 : 2016 2015 2014 Expected volatility 74.3 % 17.3 % 16.9 % Risk-free rate 1.0 % 1.0 % 0.7 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 approximately half 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 reconciles 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 2016 2015 2016 2015 Projected benefit obligation at beginning of year $ 405,033 $ 409,356 $ 26,959 $ 26,568 Service cost 5,225 5,977 808 1,006 Interest cost 15,915 15,228 871 919 Actuarial loss (gain) 7,416 (7,073 ) (940 ) (2,049 ) Plan amendments (a) — — — 1,321 Employee contributions — — 335 361 Benefits paid (19,110 ) (18,455 ) (1,195 ) (1,167 ) Projected benefit obligation at end of year $ 414,479 $ 405,033 $ 26,838 $ 26,959 Change in Plan Assets Fair value of plan assets at beginning of year $ 266,155 $ 291,087 $ — $ — Actual return on plan assets 18,933 (6,627 ) — — Employer contributions 12,276 2,312 860 806 Employee contributions — — 335 361 Benefits paid (19,110 ) (18,455 ) (1,195 ) (1,167 ) Other expense (2,299 ) (2,162 ) — — Fair value of plan assets at end of year $ 275,955 $ 266,155 $ — $ — Funded Status at End of Year: Net accrued benefit cost $ (138,524 ) $ (138,878 ) $ (26,838 ) $ (26,959 ) Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2016 2015 2016 2015 Non-current assets $ — $ — $ — $ — Current liabilities (2,293 ) (2,268 ) (1,340 ) (1,485 ) Non-current liabilities (136,231 ) (136,610 ) (25,498 ) (25,474 ) Net amount recognized $ (138,524 ) $ (138,878 ) $ (26,838 ) $ (26,959 ) Net gains or losses recognized in other comprehensive income for the three years ended December 31 are as follows: Pension Postretirement 2016 2015 2014 2016 2015 2014 Net (losses) gains $ 14,101 $ (24,950 ) $ (49,577 ) $ (1,184 ) $ 759 $ (3,807 ) 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 2016 2015 2014 2016 2015 2014 Amortization of losses $ 11,343 $ 13,434 $ 7,620 $ 238 $ 676 $ 597 Amortization of prior service (credit) cost 761 750 1,161 (139 ) (158 ) (265 ) 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 2016 2015 2016 2015 Prior service cost $ (3,015 ) $ (3,776 ) $ (2 ) $ 27 Net losses (164,277 ) (161,519 ) (7,121 ) (8,585 ) Plan amendment — — 1,644 1,797 Deferred income tax benefit 60,684 59,975 2,007 2,461 AOCI $ (106,608 ) $ (105,320 ) $ (3,472 ) $ (4,300 ) 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 : 2016 2015 Projected benefit obligation $ 440,339 $ 431,992 Accumulated benefit obligation 427,755 417,397 Fair value of plan assets 275,955 266,155 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 2016 2015 2014 2016 2015 2014 Service cost $ 5,225 $ 5,977 $ 4,099 $ 808 $ 1,006 $ 798 Interest cost 15,915 15,228 11,379 871 919 916 Expected return on plan assets (23,320 ) (23,234 ) (18,333 ) — — — Amortization of prior service (credit) cost 761 750 1,161 (139 ) (158 ) (265 ) Amortization of losses 11,343 13,434 7,620 238 676 597 Net periodic benefit cost (a) $ 9,924 $ 12,155 $ 5,926 $ 1,778 $ 2,443 $ 2,046 (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 2017 are as follows: Pension Postretirement Amortization of loss $ 11,209 $ 391 Amortization of prior service cost 761 (151 ) Total amortization of AOCI loss $ 11,970 $ 240 Beginning in 2017, the Company will change the method used to determine the service and interest cost components of net periodic benefit cost. Previously, the cost was determined using a single weighted-average discount rate derived from the yield curve. Under the new method, known as the spot rate approach, individual spot rates along the yield curve that correspond with the timing of each benefit payment will be used. The Company believes this change will provide a more precise measurement of service and interest costs by improving the correlation between projected cash outflows and corresponding spot rates on the yield curve. This change does not affect the measurement of plan obligations but generally results in lower pension expense in periods where the yield curve is upward sloping. The Company will account for this change prospectively as a change in accounting estimate. 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 2016 2015 2014 2016 2015 2014 Assumptions used to determine benefit obligations at December 31: Discount rate 3.88 % 4.03 % 3.71 % 3.85 % 3.98 % 3.65 % Rate of compensation increase 4.10 % 4.45 % 4.50 % 4.50 % 4.50 % 4.50 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 4.03 % 3.71 % 4.04 % 3.98 % 3.65 % 4.00 % Expected long-term return on plan assets 8.50 % 8.50 % 8.50 % n/a n/a n/a Rate of compensation increase 4.10 % 4.45 % 4.50 % 4.50 % 4.50 % 4.50 % The expected return on plan assets remained at 8.5 percent for the year ended December 31, 2016 . The estimated return 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. Beginning in 2017, the Company will reduce the expected long-term rate of return on plan assets to 7.75 percent . The following table sets forth the assumed health care cost trend rates as of December 31 : Postretirement 2016 2015 Health care cost trend rate assumed for next year 8.00 % 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 2026 2019 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 $ 179 $ (149 ) Accumulated postretirement benefit obligation 1,861 (1,588 ) Investment of Plan Assets The Company’s pension plan asset allocation at December 31, 2016 and 2015 , and target allocation ranges by asset category are as follows: Percentage of Plan Assets Target Allocation Range Asset Category 2016 2015 Domestic equity securities 41 % 41 % 35-45% International equity securities 24 % 24 % 20-30% Domestic fixed income securities 27 % 27 % 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, 2016 or 2015 . 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, 2016 and 2015 . Fair Value at December 31, 2016 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 76,757 $ — $ — $ 76,757 Investments at net asset value: Common collective trust funds 199,198 Total assets at fair value $ 275,955 Fair Value at December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 73,882 $ — $ — $ 73,882 Investments at net asset value: Common collective trust funds 192,273 Total assets at fair value $ 266,155 The valuation methodology used for measuring the fair value of these asset categories was as follows: Mutual funds — Net asset value in an observable market. Common collective trust funds — Common collective trusts are measured at NAV per share, as a practical expedient for fair value, as provided by the Plan trustee. The NAV 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, 2016 and 2015 . Cash Flows Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2017 $ 20,787 $ 1,340 2018 21,536 1,507 2019 22,242 1,445 2020 22,844 1,474 2021 23,400 1,435 2022 — 2026 122,842 7,449 The Company has no mandatory pension contribution requirements in 2017, but may make discretionary contributions. 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 $5.0 million , $5.2 million and $3.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Rayonier Advanced Materials Hourly and Salaried Defined Contribution Plans include Rayonier Advanced Materials common stock with a fair market value of $16.4 million at December 31, 2016 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 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 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. These other lawsuits and claims, either individually or in aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company currently employs approximately 1,200 people, nearly all of whom are in the United States. As of December 31, 2016 , approximately 65 percent of the work force is unionized. As a result, the Company is required to negotiate wages, benefits and other terms with unionized employees collectively. The collective bargaining agreements at the Company’s Jesup, Georgia plant, which cover approximately 48 percent of the Company’s work force, will expire on June 30, 2017. The Company is currently negotiating new agreements. Based on past experience, the Company expects to be able to reach an agreement with the labor unions; however, if the Company is unable to negotiate acceptable contracts with any of these unions it could result in strikes or work stoppages which may adversely affect the Company’s financial results. The Company believes relations with its employees are satisfactory. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of December 31, 2016 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Liability Standby letters of credit (a) $ 20,505 $ 56,334 Surety bonds (b) 56,201 55,199 LTF project (c) 82,400 — Total financial commitments $ 159,106 $ 111,533 (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 and for credit support of natural gas purchases. The letters of credit will expire during 2017 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 2017 and 2019 . They are expected to be renewed annually as required. (c) LTF entered into a construction contract to build its lignin manufacturing facility. The Company is a guarantor under the contract and is jointly and severally liable for payment of costs incurred to construct the facility. In the event of default, the Company expects it would only be liable for its proportional share as a result of an agreement with its venture partner. See Note 9 — LignoTech Florida for more information. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
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 $4.5 million , $4.0 million , and $2.1 million in 2016 , 2015 and 2014 , respectively. At December 31, 2016 , the future minimum payments under non-cancellable operating leases and purchase obligations were as follows: Operating Leases (a) Purchase Obligations (b) 2017 $ 1,813 $ 25,154 2018 1,264 9,612 2019 985 5,168 2020 591 5,168 2021 343 5,168 Thereafter 89 49,471 Total $ 5,085 $ 99,741 (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 natural gas, steam energy and wood chips purchase contracts. Obligations reported in the table are estimates and may vary based on changes in actual price and volumes terms. |
Quarterly Results for 2016 and
Quarterly Results for 2016 and 2015 (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2016 and 2015 (Unaudited) | Quarterly Results for 2016 and 2015 (Unaudited) Quarter Ended Total Year March 26 June 27 September 26 December 31 2016 Net Sales $ 217,729 $ 213,589 $ 206,540 $ 230,873 $ 868,731 Gross Margin 40,238 48,803 50,543 41,689 181,273 Operating Income 31,920 38,569 41,437 25,721 137,647 Net Income 20,893 19,340 21,567 11,486 73,286 Basic earnings per share 0.50 0.46 0.46 0.19 1.61 Diluted earnings per share (a) 0.49 0.46 0.44 0.18 1.55 Quarter Ended March 28 June 27 September 26 December 31 Total Year 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 (a) Basic and diluted earnings per share included the impact of dividends on the Company’s Preferred Stock for the quarter ended September 26, 2016 and the quarter and year ended December 31, 2016. As a result of the impact of the Preferred Stock in the third and fourth quarters of 2016, quarterly diluted EPS does not crossfoot to full-year diluted EPS. See Note 10 — Stockholders' Equity (Deficit) for additional information. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 $ 151 $ — $ — $ 151 Year ended December 31, 2015 151 — — 151 Year ended December 31, 2014 140 11 — 151 Allowance for sales returns (a): Year ended December 31, 2016 $ — $ 523 $ — $ 523 Deferred tax asset valuation allowance: Year ended December 31, 2016 $ 19,702 $ 1,119 $ — $ 20,821 Year ended December 31, 2015 20,517 — (815 ) 19,702 Year ended December 31, 2014 24,588 — (4,071 ) 20,517 Self-insurance liabilities: Year ended December 31, 2016 $ 589 $ 291 $ (452 ) $ 428 Year ended December 31, 2015 (b) 1,947 (734 ) (624 ) 589 Year ended December 31, 2014 — 2,361 (414 ) 1,947 (a) An allowance for sales returns was not required for the years ended December 31, 2015 and 2014 . (b) The decrease in the self-insurance liabilities relates to an adjustment based on an annual actuarial review. |
Basis of Presentation and New28
Basis of Presentation and New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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”). 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 Rayonier’s performance fibers business for the six months ended June 27, 2014 . The Company’s Consolidated Balance Sheets as of December 31, 2016 and 2015 consist of the consolidated balances of Rayonier Advanced Materials. 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 periods prior to the Separation, 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, 2016 and 2015 , consist entirely of the consolidated results 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. |
Reclassifications | Certain 2015 and 2014 amounts have been reclassified to conform with the current year presentation. |
Fiscal Year | The Company’s fiscal year end is the last day of the calendar year. For interim reporting periods, the Company uses the last Saturday of the fiscal quarter. |
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. Production related assets under capital leases are depreciated using the straight-line method over the related lease term. 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 $84.8 million , $87.5 million and $84.6 million for the years ended December 31, 2016 , 2015 and 2014 , 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 as the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flows model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. The Company performs scheduled inspections, repairs and maintenance of plant machinery and equipment at the Company’s manufacturing plants during a full plant shutdown. The Company’s Jesup, Georgia plant has an annual shutdown while the Company’s Fernandina Beach, Florida plant is on an 18-month shutdown cycle. Costs associated with these planned outage periods are referred to as shutdown costs. Shutdown costs are costs incurred to ensure the long-term reliability and safety of operations. Shut down costs are accounted for using the deferral method, under which expenditures related to shutdown are capitalized in other assets when incurred and amortized to production costs on a straight-line basis over the period benefited, or the period of time until the next scheduled shut down. Shut down costs are classified as working capital in operating activities in the consolidated statements of cash flows. |
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 flows 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: Mutual funds — Net asset value in an observable market. Common collective trust funds — Common collective trusts are measured at NAV per share, as a practical expedient for fair value, as provided by the Plan trustee. The NAV 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 2017 through 2036 , 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, 2016 and 2015 , 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’ equity (deficit) (net of taxes). If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, the Company will amortize them over the average future service period of employees. |
Income Taxes | For the period 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. In the accompanying Consolidated Financial Statements for period prior to the Separation, the Company’s provision for income taxes has been determined on a separate return basis. 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. |
New or Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) . The update exempts investments measured using the net asset value (NAV) practical expedient in ASC 820, Fair Value Measurement, from categorization within the fair value hierarchy. It became effective for fiscal years beginning after December 15, 2015. The Company adopted as of January 1, 2016 and retrospectively applied the guidance. The adoption did not have a material impact on the Company’s financial statements. 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 became effective for fiscal years beginning after December 15, 2015. The Company adopted as of March 26, 2016. 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. New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation. The update simplifies several areas of accounting for share based payments. The guidance also includes the acceptable or required transition methods for each of the various amendments included in the new standard. It is effective for fiscal years beginning after December 15, 2016. The Company expects to record approximately $2.2 million in tax expense during the first quarter of 2018 as a result of the adoption of ASU 2016-09. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires entities to recognize assets and liabilities arising 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. Early adoption is permitted. The Company is 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. 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as amended and/or clarified by ASU Nos. 2016-08, 2016-10, 2016-12, and 2016-20, 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 the consideration to which the company expects to be entitled to in exchange for those goods or services. The new revenue standard (and subsequent amendments) will be effective for the Company’s first quarter 2018 Form 10-Q filing. In preparation for the 2018 adoption date, management is in the process of evaluating the standard’s overall impact on the Company’s revenue recognition process and the resulting adoption impact. Under ASC 606, revenue is recognized as control is transferred to the customer either at a point in time or over time. The assessment of whether control transfers over time or at a point in time is critical to determining when to recognize revenue. Management is evaluating whether its contracts satisfy the criteria for revenue recognition over time for customized goods. If the Company determines the over time criteria is satisfied, revenue recognition will be accelerated for cellulose specialties and commodity products contracts. If management determines the over time criteria for revenue recognition is not met, the Company will recognize revenue at a point in time. If a point in time revenue recognition determination is made, the Company expects revenue recognition to remain substantially consistent with current practice. The Company expects to adopt the standard on a modified retrospective basis and is currently in the process of assessing changes required to its business processes, systems and controls to support revenue recognition and related financial statement disclosures under the new standard. |
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 Info29
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Product Line | Sales by the two major product lines was comprised of the following for the three years ended December 31 : Sales by Product Line 2016 2015 2014 Cellulose specialties $ 694,603 $ 766,940 $ 843,473 Commodity products and other 174,128 174,444 114,216 Total sales $ 868,731 $ 941,384 $ 957,689 |
Geographical Distribution of the Company's Sales | Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination (a) 2016 % 2015 % 2014 % United States $ 348,570 40 $ 398,739 42 $ 422,648 44 China 250,044 29 256,979 27 255,954 27 Japan 136,817 16 132,480 14 138,961 14 Europe 88,191 10 91,847 10 93,957 10 Latin America 9,876 1 8,176 1 5,510 1 Other Asia 27,280 3 25,373 3 33,250 3 All other 7,953 1 27,790 3 7,409 1 Total sales $ 868,731 100 $ 941,384 100 $ 957,689 100 (a) All sales to foreign countries are denominated in U.S. dollars. |
Sales to Significant Customers | The Company had sales to three significant customers which represented over 10 percent of total sales for the three years ended December 31 : Percentage of Sales 2016 2015 2014 Eastman Chemical Company 25% 28% 31% Nantong Cellulose Fibers, Co., Ltd. 17% 18% 18% Daicel Corporation 14% 13% 15% |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2016 and 2015 , the Company’s inventory included the following: 2016 2015 Finished goods $ 94,858 $ 103,866 Work-in-progress 3,422 2,344 Raw materials 17,183 16,593 Manufacturing and maintenance supplies 2,905 2,606 Total inventory $ 118,368 $ 125,409 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31, 2016 and 2015 , the Company’s property, plant and equipment included the following: 2016 2015 Land and land improvements $ 15,502 $ 15,426 Buildings 183,374 181,707 Machinery and equipment 1,843,057 1,764,477 Construction in progress 14,439 65,197 Total property, plant and equipment, gross 2,056,372 2,026,807 Accumulated depreciation (1,255,333 ) (1,222,969 ) Total property, plant and equipment, net $ 801,039 $ 803,838 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of December 31, 2016 and 2015 , the Company’s debt consisted of the following: 2016 2015 Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 30,450 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 1.84% at December 31, 2016 251,300 262,750 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 550,000 Capital Lease obligation 3,676 — Total principal payments due 791,838 868,700 Less: original issue discount and debt issuance costs (8,556 ) (10,646 ) Total debt 783,282 858,054 Less: Current maturities of long-term debt (9,593 ) (7,938 ) Long-term debt $ 773,689 $ 850,116 |
Schedule of Debt and Capital Lease Payments | Debt and capital lease payments due during the next five years and thereafter are as follows: Capital Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments 2017 $ 515 $ 249 $ 266 $ 9,775 2018 515 230 285 11,150 2019 515 209 306 18,225 2020 515 187 328 2,900 2021 515 163 352 239,700 Thereafter 2,533 394 2,139 506,412 Total payments $ 5,108 $ 1,432 $ 3,676 $ 788,162 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | 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, 2016 and 2015 , using market information and what management believes to be appropriate valuation methodologies: December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) (a) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 326,655 $ 326,655 $ — $ 101,303 $ 101,303 $ — Current maturities of long-term debt (9,327 ) — (9,775 ) (7,938 ) — (8,400 ) Fixed-rate long-term debt (499,444 ) — (474,761 ) (541,423 ) — (435,171 ) Variable-rate long-term debt (270,836 ) — (271,975 ) (308,693 ) — (310,300 ) (a) Table excludes the Company’s capital lease obligation. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 Balance, beginning of period $ (109,620 ) $ (103,444 ) $ (39,699 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 11,581 14,110 8,217 Amortization of prior service costs 775 767 1,177 Amortization of negative plan amendment (153 ) (175 ) (281 ) Total reclassifications, before tax 12,203 14,702 9,113 Other loss before reclassifications (12,917 ) (24,191 ) (53,383 ) Other comprehensive loss, before tax (714 ) (9,489 ) (44,270 ) Tax benefit 254 3,313 15,944 Net other comprehensive loss (460 ) (6,176 ) (28,326 ) Net transfer from Rayonier (b) — — (35,419 ) Balance, end of period $ (110,080 ) $ (109,620 ) $ (103,444 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 16 — 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 10 — Stockholders' Equity (Deficit) for additional information. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Preferred Stock Additional Paid in Capital Retained Earnings (Accumulated Deficit) Transfers (to) from Rayonier, net Accumulated Other Comprehensive Loss Total Stockholders’ (Deficit) Equity Shares Par Value Shares Par Value 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 Common stock 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 deficit on stock-based compensation — — — — (2,558 ) — — — (2,558 ) Repurchase of common stock (2,060 ) — — — (12 ) — — — (12 ) Common stock 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 income — — — — — 73,286 — — 73,286 Net loss from pension and postretirement plans — — — — — — — (460 ) (460 ) Issuance of preferred stock — — 1,725,000 17 166,592 — — — 166,609 Issuance of common stock under incentive stock plans 422,941 4 — — (4 ) — — — — Stock-based compensation — — — — 7,217 — — — 7,217 Excess tax deficit on stock-based compensation — — — — (1,228 ) — — — (1,228 ) Repurchase of common stock (33,471 ) — — — (388 ) — — — (388 ) Common stock dividends ($0.28 per share) — — — — — (12,507 ) — — (12,507 ) Preferred stock dividends ($2.11 per share) — — — — — (3,641 ) — — (3,641 ) Balance, December 31, 2016 43,261,905 433 1,725,000 17 242,402 78,977 — (110,080 ) 211,749 |
Reconciliation of Net Payments | 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 year ended December 31, 2014 . There were no net payments to/from Rayonier for the years ended December 31, 2016 and 2015 . 2014 Allocation of costs from Rayonier (a) $ (35,279 ) Cash receipts received by Rayonier on Company’s behalf 472,780 Cash disbursements made by Rayonier on Company’s behalf (484,318 ) 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 ) Non-cash adjustments: Stock-based compensation (3,562 ) 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 ) (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 14 - Liabilities for Disposed Operations for additional information) • $73.8 million of employee benefit plan liabilities (See Note 16 - 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 36
Earnings Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 : 2016 2015 2014 Net income $ 73,286 $ 55,257 $ 31,655 Less: Preferred Stock dividends (5,404 ) — — Net income available for common stockholders $ 67,882 $ 55,257 $ 31,655 Shares used for determining basic earnings per share of common stock 42,279,811 42,194,891 42,166,629 Dilutive effect of: Stock options — — 47,073 Performance and restricted shares 422,962 27,968 25,980 Preferred Stock 4,443,048 — — Shares used for determining diluted earnings per share of common stock 47,145,821 42,222,859 42,239,682 Basic earnings per share (not in thousands) $ 1.61 $ 1.31 $ 0.75 Diluted earnings per share (not in thousands) $ 1.55 $ 1.30 $ 0.75 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share: 2016 2015 2014 Stock options 399,012 447,524 229,001 Restricted stock 24,072 220,348 6,282 Performance shares 66,327 3,379 — Total 489,411 671,251 235,283 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 : 2016 2015 2014 Increase in environmental liabilities for disposed operations (a) $ (5,298 ) $ (6,930 ) $ (70,129 ) One-time separation and legal costs — 802 (25,680 ) 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 (2,422 ) (998 ) (2,123 ) Insurance settlement 897 1,000 2,881 Miscellaneous income (expense) 1,139 (681 ) (169 ) Total $ (5,684 ) $ (35,269 ) $ (120,823 ) (a) The increase in environmental liabilities for disposed operations in 2016 , 2015 and 2014 of $5.3 million , $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 14 — 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 14 — Liabilities for Disposed Operations and Note 18 — 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 (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following: 2016 2015 2014 Current Federal $ 5,516 $ (37,561 ) $ (42,183 ) State and other 368 197 (305 ) 5,884 (37,364 ) (42,488 ) Deferred Federal (44,488 ) 11,073 34,301 State and other (711 ) (1,316 ) 641 (45,199 ) 9,757 34,942 Changes in valuation allowance — — (1,270 ) Total $ (39,315 ) $ (27,607 ) $ (8,816 ) |
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: 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Domestic manufacturing production deduction (a) — (4.2 ) (14.4 ) Cellulosic Biofuel Producer Credit reserve reversal — — (11.8 ) State credits (0.8 ) (0.9 ) (2.9 ) Nondeductible executive compensation 0.6 1.2 2.4 Research credit adjustment — — 2.4 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 0.1 0.8 1.3 Income tax rate as reported 34.9 % 33.3 % 21.8 % (a) The impact of the manufacturing deduction on the effective tax rate was greater in 2014 due to expenses that reduced pre-tax income but were not currently deductible for income tax purposes. The Company anticipates it will have no taxable income for 2016 as a result of higher tax depreciation and a tax accounting method change related to the deductibility of certain repair expenditures. As the manufacturing deduction is limited by taxable income, there is no benefit recognized in the current year. |
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: 2016 2015 Gross deferred tax assets: Pension, postretirement and other employee benefits $ 71,842 $ 70,180 State tax credit carryforwards (a) 17,967 16,498 Environmental liabilities 54,351 55,945 Capitalized costs 10,894 14,088 Federal net operating losses (a) 8,951 — State net operating losses (a) 3,102 3,204 Total gross deferred tax assets 167,107 159,915 Less: Valuation allowance (20,821 ) (19,702 ) Total deferred tax assets after valuation allowance 146,286 140,213 Gross deferred tax liabilities: Accelerated depreciation (b) (92,287 ) (41,006 ) Other (2,753 ) (1,787 ) Total gross deferred tax liabilities (95,040 ) (42,793 ) Net deferred tax asset $ 51,246 $ 97,420 (a) The following relates to tax credit carryforwards and net operating losses as of December 31, 2016 : Gross Amount Tax Effected Valuation Allowance Expiration State tax credit carryforwards $ 17,967 $ 17,967 $ 17,719 2018 - 2025 State net operating losses 81,861 3,102 3,102 2016 - 2033 Federal net operating losses 25,573 8,951 — 2036 (b) In 2016, the Company’s tax depreciation was higher than normal due to the timing of certain assets’ place-in-service dates and tax accounting method change for repair expenditures disclosed above. |
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: 2016 2015 2014 Balance at January 1, $ — $ — $ 4,767 Decreases related to prior year tax positions — — (4,767 ) Increases related to prior year tax positions — — — Balance at December 31, $ — $ — $ — |
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 2013 - 2016 State of Florida 2013 - 2016 |
Liabilities for Disposed Oper39
Liabilities for Disposed Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Activity for Specific Sites Where Current Estimates Exceed Ten Percent of Liabilities | An analysis of the activity for the years ended December 31, 2016 and 2015 is as follows: December 31, 2014 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2015 Liability Expenditures Increase (Decrease) to Liabilities December 31, 2016 Liability Augusta, Georgia $ 22,207 $ (1,187 ) $ 1,861 $ 22,881 $ (1,206 ) $ 1,212 $ 22,887 Spartanburg, South Carolina 18,984 (933 ) (575 ) 17,476 (792 ) (4,904 ) 11,780 Baldwin, Florida 24,528 (838 ) 3,270 26,960 (3,019 ) 2,831 26,772 Other SWP sites 37,397 (1,731 ) 226 35,892 (1,495 ) 4,799 39,196 Total SWP 103,116 (4,689 ) 4,782 103,209 (6,512 ) 3,938 100,635 Port Angeles, Washington 39,913 (1,040 ) 532 39,405 (809 ) 714 39,310 All other sites 13,700 (546 ) 1,616 14,770 (2,451 ) 646 12,965 Total $ 156,729 $ (6,275 ) $ 6,930 $ 157,384 $ (9,772 ) $ 5,298 $ 152,910 Less: Current portion (7,241 ) (12,034 ) (13,781 ) Non-Current portion $ 149,488 $ 145,350 $ 139,129 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Selling, general and administrative expenses $ 6,330 $ 8,124 $ 7,763 Cost of sales 887 1,868 975 Total stock-based compensation expense $ 7,217 $ 9,992 $ 8,738 |
Schedule of Weighted Average Assumptions and Fair Value Calculations of Options Granted | During the years ended December 31, 2016 and 2015 no options were granted. The following chart provides a tabular overview of the weighted average assumptions and related fair value calculations of options granted for the year ended December 31, 2014 : 2014 Expected volatility 40.1 % Dividend yield 4.2 % Risk-free rate 2.2 % Expected life (in years) 6.3 Fair value per share of options granted $ 9.31 Fair value of options granted $ 90 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity is presented below for the year ended December 31, 2016 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 441,615 $ 31.67 Forfeited (1,435 ) 36.55 Exercised — — Expired (41,168 ) 29.81 Outstanding at December 31, 2016 399,012 $ 31.85 4.2 $ — Options vested and expected to vest 399,012 $ 31.85 4.2 $ — Options exercisable at December 31, 2016 374,702 $ 31.53 4.0 $ — |
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: 2016 2015 2014 Intrinsic value of options exercised $ — $ — $ 320 Fair value of options vested $ 444 $ 717 $ 90 |
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 : 2016 2015 2014 Restricted shares granted 598,219 277,298 172,894 Weighted average price of restricted shares granted $ 8.03 $ 20.83 $ 41.51 Intrinsic value of restricted stock outstanding $ 10,326 $ 3,763 $ 3,235 Fair value of restricted stock vested $ 5,890 $ 690 $ 100 |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity is presented below for the year ended December 31, 2016 : Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 384,383 $ 28.41 Granted 598,219 8.03 Forfeited (147,958 ) 12.08 Vested (166,745 ) 35.45 Outstanding at December 31, 2016 667,899 $ 11.97 |
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 : 2016 2015 2014 Performance-Based Stock Units Performance-Based Stock Units Performance-Based Stock Units Performance-Based Restricted Stock Common shares of stock reserved for performance shares 1,304,419 422,920 95,952 286,737 Weighted average fair value of performance share units granted $ 7.79 $ 17.51 $ 42.27 $ 40.41 Intrinsic value of outstanding performance share units $ 8,169 $ 2,070 $ 1,070 $ 3,197 |
Summary of Performance Share Activity | A summary of the Company’s performance-share activity is presented below for the year ended December 31, 2016 : 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, 2016 211,460 $ 17.51 141,698 $ 40.76 Granted 610,100 7.79 — — Forfeited (102,669 ) 9.76 — — Canceled — — (13,660 ) 38.07 Outstanding at December 31, 2016 718,891 $ 10.05 128,038 $ 41.05 |
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 three years ended December 31 : 2016 2015 2014 Expected volatility 74.3 % 17.3 % 16.9 % Risk-free rate 1.0 % 1.0 % 0.7 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligation | The following tables set forth the changes in the projected benefit obligation and plan assets and reconciles 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 2016 2015 2016 2015 Projected benefit obligation at beginning of year $ 405,033 $ 409,356 $ 26,959 $ 26,568 Service cost 5,225 5,977 808 1,006 Interest cost 15,915 15,228 871 919 Actuarial loss (gain) 7,416 (7,073 ) (940 ) (2,049 ) Plan amendments (a) — — — 1,321 Employee contributions — — 335 361 Benefits paid (19,110 ) (18,455 ) (1,195 ) (1,167 ) Projected benefit obligation at end of year $ 414,479 $ 405,033 $ 26,838 $ 26,959 |
Schedule of Changes in Fair Value of Plan Assets | Change in Plan Assets Fair value of plan assets at beginning of year $ 266,155 $ 291,087 $ — $ — Actual return on plan assets 18,933 (6,627 ) — — Employer contributions 12,276 2,312 860 806 Employee contributions — — 335 361 Benefits paid (19,110 ) (18,455 ) (1,195 ) (1,167 ) Other expense (2,299 ) (2,162 ) — — Fair value of plan assets at end of year $ 275,955 $ 266,155 $ — $ — |
Schedule of Funded Status | Funded Status at End of Year: Net accrued benefit cost $ (138,524 ) $ (138,878 ) $ (26,838 ) $ (26,959 ) |
Schedule of Amounts Recognized in Consolidated Balance Sheet | Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2016 2015 2016 2015 Non-current assets $ — $ — $ — $ — Current liabilities (2,293 ) (2,268 ) (1,340 ) (1,485 ) Non-current liabilities (136,231 ) (136,610 ) (25,498 ) (25,474 ) Net amount recognized $ (138,524 ) $ (138,878 ) $ (26,838 ) $ (26,959 ) |
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 2016 2015 2014 2016 2015 2014 Net (losses) gains $ 14,101 $ (24,950 ) $ (49,577 ) $ (1,184 ) $ 759 $ (3,807 ) 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 2016 2015 2014 2016 2015 2014 Amortization of losses $ 11,343 $ 13,434 $ 7,620 $ 238 $ 676 $ 597 Amortization of prior service (credit) cost 761 750 1,161 (139 ) (158 ) (265 ) |
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 2016 2015 2016 2015 Prior service cost $ (3,015 ) $ (3,776 ) $ (2 ) $ 27 Net losses (164,277 ) (161,519 ) (7,121 ) (8,585 ) Plan amendment — — 1,644 1,797 Deferred income tax benefit 60,684 59,975 2,007 2,461 AOCI $ (106,608 ) $ (105,320 ) $ (3,472 ) $ (4,300 ) |
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 : 2016 2015 Projected benefit obligation $ 440,339 $ 431,992 Accumulated benefit obligation 427,755 417,397 Fair value of plan assets 275,955 266,155 |
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 2016 2015 2014 2016 2015 2014 Service cost $ 5,225 $ 5,977 $ 4,099 $ 808 $ 1,006 $ 798 Interest cost 15,915 15,228 11,379 871 919 916 Expected return on plan assets (23,320 ) (23,234 ) (18,333 ) — — — Amortization of prior service (credit) cost 761 750 1,161 (139 ) (158 ) (265 ) Amortization of losses 11,343 13,434 7,620 238 676 597 Net periodic benefit cost (a) $ 9,924 $ 12,155 $ 5,926 $ 1,778 $ 2,443 $ 2,046 (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 2017 are as follows: Pension Postretirement Amortization of loss $ 11,209 $ 391 Amortization of prior service cost 761 (151 ) Total amortization of AOCI loss $ 11,970 $ 240 |
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 2016 2015 2014 2016 2015 2014 Assumptions used to determine benefit obligations at December 31: Discount rate 3.88 % 4.03 % 3.71 % 3.85 % 3.98 % 3.65 % Rate of compensation increase 4.10 % 4.45 % 4.50 % 4.50 % 4.50 % 4.50 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 4.03 % 3.71 % 4.04 % 3.98 % 3.65 % 4.00 % Expected long-term return on plan assets 8.50 % 8.50 % 8.50 % n/a n/a n/a Rate of compensation increase 4.10 % 4.45 % 4.50 % 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 2016 2015 Health care cost trend rate assumed for next year 8.00 % 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 2026 2019 |
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 $ 179 $ (149 ) Accumulated postretirement benefit obligation 1,861 (1,588 ) |
Schedule of Allocation of Plan Assets | The Company’s pension plan asset allocation at December 31, 2016 and 2015 , and target allocation ranges by asset category are as follows: Percentage of Plan Assets Target Allocation Range Asset Category 2016 2015 Domestic equity securities 41 % 41 % 35-45% International equity securities 24 % 24 % 20-30% Domestic fixed income securities 27 % 27 % 25-29% International fixed income securities 5 % 5 % 3-7% Real estate fund 3 % 3 % 2-4% Total 100 % 100 % 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, 2016 and 2015 . Fair Value at December 31, 2016 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 76,757 $ — $ — $ 76,757 Investments at net asset value: Common collective trust funds 199,198 Total assets at fair value $ 275,955 Fair Value at December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 73,882 $ — $ — $ 73,882 Investments at net asset value: Common collective trust funds 192,273 Total assets at fair value $ 266,155 |
Schedule of Expected Benefit Payments | Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2017 $ 20,787 $ 1,340 2018 21,536 1,507 2019 22,242 1,445 2020 22,844 1,474 2021 23,400 1,435 2022 — 2026 122,842 7,449 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of December 31, 2016 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Liability Standby letters of credit (a) $ 20,505 $ 56,334 Surety bonds (b) 56,201 55,199 LTF project (c) 82,400 — Total financial commitments $ 159,106 $ 111,533 (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 and for credit support of natural gas purchases. The letters of credit will expire during 2017 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 2017 and 2019 . They are expected to be renewed annually as required. (c) LTF entered into a construction contract to build its lignin manufacturing facility. The Company is a guarantor under the contract and is jointly and severally liable for payment of costs incurred to construct the facility. In the event of default, the Company expects it would only be liable for its proportional share as a result of an agreement with its venture partner. See Note 9 — LignoTech Florida for more information. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2016 , the future minimum payments under non-cancellable operating leases and purchase obligations were as follows: Operating Leases (a) Purchase Obligations (b) 2017 $ 1,813 $ 25,154 2018 1,264 9,612 2019 985 5,168 2020 591 5,168 2021 343 5,168 Thereafter 89 49,471 Total $ 5,085 $ 99,741 (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 natural gas, steam energy and wood chips purchase contracts. Obligations reported in the table are estimates and may vary based on changes in actual price and volumes terms. |
Quarterly Results for 2016 an44
Quarterly Results for 2016 and 2015 (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended Total Year March 26 June 27 September 26 December 31 2016 Net Sales $ 217,729 $ 213,589 $ 206,540 $ 230,873 $ 868,731 Gross Margin 40,238 48,803 50,543 41,689 181,273 Operating Income 31,920 38,569 41,437 25,721 137,647 Net Income 20,893 19,340 21,567 11,486 73,286 Basic earnings per share 0.50 0.46 0.46 0.19 1.61 Diluted earnings per share (a) 0.49 0.46 0.44 0.18 1.55 Quarter Ended March 28 June 27 September 26 December 31 Total Year 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 (a) Basic and diluted earnings per share included the impact of dividends on the Company’s Preferred Stock for the quarter ended September 26, 2016 and the quarter and year ended December 31, 2016. As a result of the impact of the Preferred Stock in the third and fourth quarters of 2016, quarterly diluted EPS does not crossfoot to full-year diluted EPS. See Note 10 — Stockholders' Equity (Deficit) for additional information. |
Basis of Presentation and New45
Basis of Presentation and New Accounting Pronouncements - The Separation (Details) - shares | Jun. 27, 2014 | Dec. 31, 2014 |
Common Stock | ||
Class of Stock [Line Items] | ||
Issuance of common stock at the separation (in shares) | 42,176,565 | 42,176,565 |
Basis of Presentation and New46
Basis of Presentation and New Accounting Pronouncements - Property, Plant, Equipment and Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, cost of sales | $ 84.8 | $ 87.5 | $ 84.6 |
Non-production Assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Non-production Assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 25 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 35 years | ||
Land Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Land Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Other Current Assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized shutdown costs | $ 15.8 | 11.8 | |
Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized shutdown costs | $ 1.1 | $ 0 |
Basis of Presentation and New47
Basis of Presentation and New Accounting Pronouncements - Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Construction period for capitalized interest | 1 year | ||
Interest costs capitalized in property, plant & equipment | $ 0.8 | $ 1.3 | $ 0.1 |
Basis of Presentation and New48
Basis of Presentation and New Accounting Pronouncements - Environmental Costs (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Environmental loss contingencies term | 20 years |
Basis of Presentation and New49
Basis of Presentation and New Accounting Pronouncements - Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Threshold for actuarial gains and losses | 10.00% |
Basis of Presentation and New50
Basis of Presentation and New Accounting Pronouncements - Subsequent Events (Details) | Feb. 24, 2017$ / shares | Jan. 17, 2017$ / shares | Feb. 24, 2017subsequent_event | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares |
Subsequent Event [Line Items] | ||||||
Preferred stock dividends (in dollars per share) | $ 2.11 | |||||
Common stock dividends (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.14 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Number of subsequent events | subsequent_event | 2 | |||||
Preferred stock dividends (in dollars per share) | $ 2 | |||||
Common stock dividends (in dollars per share) | $ 0.07 |
Basis of Presentation and New51
Basis of Presentation and New Accounting Pronouncements - New or Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 39,315 | $ 27,607 | $ 8,816 | |
Scenario, Forecast | Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income tax expense | $ 2,200 | |||
Other Assets | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt issuance costs | 9,600 | |||
Prepaid Expenses and Other Current Assets | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt issuance costs | $ 300 |
Related Party Transactions (Det
Related Party Transactions (Details) - Rayonier - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Selling and general expenses | $ 0 | $ 0 | $ 8,000,000 |
Operating Expenses | |||
Related Party Transaction [Line Items] | |||
Operating expenses | $ 0 | $ 0 | $ 27,300,000 |
Segment and Geographical Info53
Segment and Geographical Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016customerfacilityofficeproduct_line | |
Segment Reporting [Abstract] | |
Number of product lines | product_line | 2 |
Number of chip facilities | facility | 5 |
Number of foreign representative offices | office | 3 |
Number of significant customers | customer | 3 |
Segment and Geographical Info54
Segment and Geographical Information - Revenue for Major Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Information [Line Items] | |||||||||||
Net Sales | $ 230,873 | $ 206,540 | $ 213,589 | $ 217,729 | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 868,731 | $ 941,384 | $ 957,689 |
Cellulose specialties | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 694,603 | 766,940 | 843,473 | ||||||||
Commodity products and other | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | $ 174,128 | $ 174,444 | $ 114,216 |
Segment and Geographical Info55
Segment and Geographical Information - Sales by Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 230,873 | $ 206,540 | $ 213,589 | $ 217,729 | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 868,731 | $ 941,384 | $ 957,689 |
Percentage of Sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales | Geographic Concentration Risk | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 348,570 | $ 398,739 | $ 422,648 | ||||||||
Percentage of Sales | 40.00% | 42.00% | 44.00% | ||||||||
Sales | Geographic Concentration Risk | China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 250,044 | $ 256,979 | $ 255,954 | ||||||||
Percentage of Sales | 29.00% | 27.00% | 27.00% | ||||||||
Sales | Geographic Concentration Risk | Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 136,817 | $ 132,480 | $ 138,961 | ||||||||
Percentage of Sales | 16.00% | 14.00% | 14.00% | ||||||||
Sales | Geographic Concentration Risk | Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 88,191 | $ 91,847 | $ 93,957 | ||||||||
Percentage of Sales | 10.00% | 10.00% | 10.00% | ||||||||
Sales | Geographic Concentration Risk | Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 9,876 | $ 8,176 | $ 5,510 | ||||||||
Percentage of Sales | 1.00% | 1.00% | 1.00% | ||||||||
Sales | Geographic Concentration Risk | Other Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 27,280 | $ 25,373 | $ 33,250 | ||||||||
Percentage of Sales | 3.00% | 3.00% | 3.00% | ||||||||
Sales | Geographic Concentration Risk | All other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales by Destination | $ 7,953 | $ 27,790 | $ 7,409 | ||||||||
Percentage of Sales | 1.00% | 3.00% | 1.00% |
Segment and Geographical Info56
Segment and Geographical Information - Percentage of Sales to Significant Customers (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 100.00% | 100.00% | 100.00% |
Sales | Customer Concentration Risk | Eastman Chemical Company | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 25.00% | 28.00% | 31.00% |
Sales | Customer Concentration Risk | Nantong Cellulose Fibers, Co., Ltd. | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 17.00% | 18.00% | 18.00% |
Sales | Customer Concentration Risk | Daicel Corporation | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 14.00% | 13.00% | 15.00% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 94,858 | $ 103,866 |
Work-in-progress | 3,422 | 2,344 |
Raw materials | 17,183 | 16,593 |
Manufacturing and maintenance supplies | 2,905 | 2,606 |
Total inventory | $ 118,368 | $ 125,409 |
Property, Plant, and Equipmen58
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 2,056,372 | $ 2,026,807 |
Accumulated depreciation | (1,255,333) | (1,222,969) |
Total property, plant and equipment, net | 801,039 | 803,838 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 15,502 | 15,426 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 183,374 | 181,707 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 1,843,057 | 1,764,477 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 14,439 | $ 65,197 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 26, 2014 | May 22, 2014 | |
Debt Instrument [Line Items] | ||||
Debt, gross | $ 788,162,000 | |||
Capital Lease obligation | 3,676,000 | $ 0 | ||
Total principal payments due | 791,838,000 | 868,700,000 | ||
Less: original issue discount and debt issuance costs | (8,556,000) | (10,646,000) | ||
Total debt | 783,282,000 | 858,054,000 | ||
Less: Current maturities of long-term debt | (9,593,000) | (7,938,000) | ||
Long-term debt | $ 773,689,000 | 850,116,000 | ||
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 | ||||
Debt Instrument [Line Items] | ||||
Facility interest rate | 2.26% | |||
Debt, gross | $ 30,450,000 | 55,950,000 | ||
Revolving credit facility | $ 110,000,000 | |||
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.50% | |||
Credit Facility | 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 1.84% at December 31, 2016 | ||||
Debt Instrument [Line Items] | ||||
Facility interest rate | 1.84% | |||
Cash patronage benefit | 0.67% | |||
Debt, gross | $ 251,300,000 | 262,750,000 | ||
Revolving credit facility | $ 290,000,000 | |||
Credit Facility | 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 1.84% at December 31, 2016 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread after cash patronage benefit | 1.08% | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 5.50% | 5.50% | ||
Debt, gross | $ 506,412,000 | 550,000,000 | ||
Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | 0 | $ 0 | ||
Revolving credit facility | 250,000,000 | |||
Revolving credit facility available | $ 229,000,000 | |||
Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.50% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 26, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Gain on debt extinguishment | $ 8,844 | $ 0 | $ 0 | |
Principal debt repayments | 71,031 | $ 77,100 | $ 79,200 | |
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 | ||||
Debt Instrument [Line Items] | ||||
Principal debt repayments | 25,500 | |||
Credit Facility | 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 1.84% at December 31, 2016 | ||||
Debt Instrument [Line Items] | ||||
Principal debt repayments | $ 11,500 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt repurchased | $ 43,600 | |||
Debt retried | 34,100 | |||
Gain on debt extinguishment | 8,800 | |||
Write-off of unamortized debt issuance costs | $ 700 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Minimum Lease Payments | |
2,017 | $ 515 |
2,018 | 515 |
2,019 | 515 |
2,020 | 515 |
2,021 | 515 |
Thereafter | 2,533 |
Total payments | 5,108 |
Less: Interest | |
2,017 | 249 |
2,018 | 230 |
2,019 | 209 |
2,020 | 187 |
2,021 | 163 |
Thereafter | 394 |
Total payments | 1,432 |
Net Present Value | |
2,017 | 266 |
2,018 | 285 |
2,019 | 306 |
2,020 | 328 |
2,021 | 352 |
Thereafter | 2,139 |
Total payments | 3,676 |
Debt Principal Payments | |
2,017 | 9,775 |
2,018 | 11,150 |
2,019 | 18,225 |
2,020 | 2,900 |
2,021 | 239,700 |
Thereafter | 506,412 |
Total payments | $ 788,162 |
Debt - 5.50% Senior Notes Due 2
Debt - 5.50% Senior Notes Due 2024 - Narrative (Details) - Senior Notes - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | May 22, 2014 | |
Debt Instrument [Line Items] | ||
Face amount | $ 550,000,000 | |
Interest rate | 5.50% | 5.50% |
Redemption percentage allowable | 40.00% | |
Redemption price percentage | 100.00% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facilities - Narrative (Details) | Jun. 26, 2014USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||
Net leverage ratio (no greater than) | 3 | |
Interest coverage ratio (no less than) | 3 | |
Credit Facility | Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Remaining borrowing capacity | 229,000,000 | |
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 110,000,000 | |
Credit Facility | 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 1.84% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 290,000,000 | |
Credit Facility | Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Outstanding balance | 0 | |
Credit Facility | Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount of letters of credit outstanding | $ 21,000,000 | |
Credit Facility | LIBOR | Revolving Credit Facility of $250 million, $229 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.50% | |
Credit Facility | LIBOR | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.5%, interest rate of 2.26% at December 31, 2016 | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.50% | |
Credit Facility | Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.25% | |
Credit Facility | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.25% | |
Credit Facility | Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.00% | |
Credit Facility | Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount, Estimated Fair Values and Categorization Under the Fair Value Heirachy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 326,655 | $ 101,303 |
Current maturities of long-term debt | (9,327) | (7,938) |
Fixed-rate long-term debt | (499,444) | (541,423) |
Variable-rate long-term debt | (270,836) | (308,693) |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 326,655 | 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 | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Current maturities of long-term debt | (9,775) | (8,400) |
Fixed-rate long-term debt | (474,761) | (435,171) |
Variable-rate long-term debt | $ (271,975) | $ (310,300) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ (17,139) | $ (62,412) | $ 968,301 |
Total reclassifications, before tax | 12,203 | 14,702 | 9,113 |
Other loss before reclassifications | (12,917) | (24,191) | (53,383) |
Other comprehensive loss, before tax | (714) | (9,489) | (44,270) |
Tax benefit | 254 | 3,313 | 15,944 |
Total other comprehensive loss | (460) | (6,176) | (28,326) |
Net transfer from Rayonier | (1,036,928) | ||
Ending balance | 211,749 | (17,139) | (62,412) |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (109,620) | (103,444) | (39,699) |
Net transfer from Rayonier | 0 | 0 | (35,419) |
Ending balance | (110,080) | (109,620) | (103,444) |
Amortization of losses | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total reclassifications, before tax | 11,581 | 14,110 | 8,217 |
Amortization of prior service costs | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total reclassifications, before tax | 775 | 767 | 1,177 |
Amortization of negative plan amendment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total reclassifications, before tax | $ (153) | $ (175) | $ (281) |
LignoTech Florida (Details)
LignoTech Florida (Details) - LignoTech Florida t in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)phaset | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 45.00% |
Number of phases of construction | phase | 2 |
Period of construction | 5 years |
Aggregate capital investment | $ | $ 135 |
Annual capacity | t | 150 |
Borregaard ASA | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 55.00% |
Stockholders' Equity (Deficit67
Stockholders' Equity (Deficit) - Analysis of Stockholder's (Deficit) Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 27, 2014 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ (17,139) | $ (62,412) | $ (17,139) | $ (62,412) | $ 968,301 | |||||||
Net Income | $ 11,486 | $ 21,567 | $ 19,340 | $ 20,893 | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | 73,286 | 55,257 | 31,655 | |
Net loss from pension and postretirement plans | (460) | (6,176) | (28,326) | |||||||||
Net transfers to Rayonier | (1,036,928) | |||||||||||
Reclassification to additional paid-in capital | 864 | 0 | ||||||||||
Issuance of stock | 166,609 | 0 | ||||||||||
Issuance of common stock under incentive stock plans | 0 | 8 | 649 | |||||||||
Stock-based compensation | 7,217 | 9,832 | 4,695 | |||||||||
Excess tax benefit on stock-based compensation | 266 | |||||||||||
Excess tax deficit on stock-based compensation | (1,228) | (2,558) | ||||||||||
Repurchase of common stock | (388) | (12) | (92) | |||||||||
Adjustments to tax assets and liabilities associated with the Distribution | 3,294 | |||||||||||
Common stock dividends | (12,507) | (11,942) | (5,926) | |||||||||
Preferred stock dividends | (3,641) | |||||||||||
Ending balance | $ 211,749 | $ (17,139) | $ 211,749 | $ (17,139) | $ (62,412) | |||||||
Common stock dividends (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.14 | |||||||||
Preferred stock dividends (in dollars per share) | $ 2.11 | |||||||||||
Common Stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance (in shares) | 42,872,435 | 42,616,319 | 42,872,435 | 42,616,319 | 0 | |||||||
Beginning balance | $ 429 | $ 426 | $ 429 | $ 426 | $ 0 | |||||||
Issuance of stock (in shares) | 42,176,565 | 42,176,565 | ||||||||||
Issuance of stock | $ 422 | |||||||||||
Issuance of common stock under incentive stock plans (shares) | 422,941 | 258,176 | 440,364 | |||||||||
Issuance of common stock under incentive stock plans | $ 4 | $ 3 | $ 4 | |||||||||
Repurchase of common stock (shares) | (33,471) | (2,060) | (610) | |||||||||
Repurchase of common stock | $ 0 | $ 0 | $ 0 | |||||||||
Ending balance (in shares) | 43,261,905 | 42,872,435 | 43,261,905 | 42,872,435 | 42,616,319 | |||||||
Ending balance | $ 433 | $ 429 | $ 433 | $ 429 | $ 426 | |||||||
Preferred Stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance (in shares) | 0 | 0 | 0 | 0 | 0 | |||||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Issuance of stock (in shares) | 1,725,000 | |||||||||||
Issuance of stock | $ 17 | |||||||||||
Ending balance (in shares) | 1,725,000 | 0 | 1,725,000 | 0 | 0 | |||||||
Ending balance | $ 17 | $ 0 | $ 17 | $ 0 | $ 0 | |||||||
Additional Paid in Capital | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 70,213 | 62,082 | 70,213 | 62,082 | 0 | |||||||
Reclassification to additional paid-in capital | 864 | 53,696 | ||||||||||
Issuance of stock | 166,592 | (422) | ||||||||||
Issuance of common stock under incentive stock plans | (4) | 5 | 645 | |||||||||
Stock-based compensation | 7,217 | 9,832 | 4,695 | |||||||||
Excess tax benefit on stock-based compensation | 266 | |||||||||||
Excess tax deficit on stock-based compensation | (1,228) | (2,558) | ||||||||||
Repurchase of common stock | (388) | (12) | (92) | |||||||||
Adjustments to tax assets and liabilities associated with the Distribution | 3,294 | |||||||||||
Ending balance | 242,402 | 70,213 | 242,402 | 70,213 | 62,082 | |||||||
Retained Earnings (Accumulated Deficit) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 21,839 | (21,476) | 21,839 | (21,476) | 1,415,894 | |||||||
Net Income | 73,286 | 55,257 | 31,655 | |||||||||
Reclassification to additional paid-in capital | (1,463,099) | |||||||||||
Common stock dividends | (12,507) | (11,942) | (5,926) | |||||||||
Preferred stock dividends | (3,641) | |||||||||||
Ending balance | 78,977 | 21,839 | 78,977 | 21,839 | (21,476) | |||||||
Transfers (to) from Rayonier, net | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 0 | 0 | 0 | 0 | (407,894) | |||||||
Net transfers to Rayonier | (1,001,509) | |||||||||||
Reclassification to additional paid-in capital | 1,409,403 | |||||||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | |||||||
Accumulated Other Comprehensive Loss | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ (109,620) | $ (103,444) | (109,620) | (103,444) | (39,699) | |||||||
Net loss from pension and postretirement plans | (460) | (6,176) | (28,326) | |||||||||
Net transfers to Rayonier | 0 | 0 | (35,419) | |||||||||
Ending balance | $ (110,080) | $ (109,620) | $ (110,080) | $ (109,620) | $ (103,444) |
Stockholders' Equity (Deficit68
Stockholders' Equity (Deficit) - Narrative (Details) $ / shares in Units, $ in Thousands | Aug. 04, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)director | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Class of Stock [Line Items] | ||||
Net proceeds from issuance | $ | $ 166,609 | $ 0 | $ 0 | |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of stock (in shares) | shares | 1,725,000 | |||
Mandatory convertible preferred stock | 8.00% | |||
Public offering price (in dollars per share) | $ 100 | |||
Net proceeds from issuance | $ | $ 166,600 | |||
Threshold trading days averaging period | 20 days | |||
Conversion rate | 6.5923 | |||
Number of additional board of directors members entitled to elect after six or more dividend periods without dividends declared | director | 2 | |||
Liquidation preference (in dollars per share) | $ 100 | |||
Series A Preferred Stock | Common stock greater than $15.17 | ||||
Class of Stock [Line Items] | ||||
Applicable Market Value (in dollars per share) | $ 15.17 | |||
Conversion rate | 6.5923 | |||
Series A Preferred Stock | Common stock less than $12.91 | ||||
Class of Stock [Line Items] | ||||
Applicable Market Value (in dollars per share) | $ 12.91 | |||
Conversion rate | 7.7459 |
Stockholders' Equity (Deficit69
Stockholders' Equity (Deficit) - Reconciliation of Net Transfers to and Net Payment (to) from Rayonier (Details) - USD ($) $ in Thousands | Jun. 27, 2014 | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | ||
Allocation of costs from Rayonier | $ (35,279) | |
Cash receipts received by Rayonier on Company’s behalf | 472,780 | |
Cash disbursements made by Rayonier on Company’s behalf | (484,318) | |
Net distribution to Rayonier on Separation | (906,200) | |
Net liabilities from transfer of assets and liabilities with Rayonier | (83,911) | |
Net transfers to Rayonier | (1,036,928) | |
Non-cash adjustments: | ||
Stock-based compensation | (3,562) | |
Net payments to Rayonier per the Condensed Consolidated Statements of Cash Flows, prior to Separation | $ (956,579) | |
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 70
Earnings Per Share of Common Stock - Narrative (Details) - shares | Jun. 27, 2014 | Dec. 31, 2014 |
Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Issuance of common stock at the separation (in shares) | 42,176,565 | 42,176,565 |
Earnings Per Share of Common 71
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, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income | $ 11,486 | $ 21,567 | $ 19,340 | $ 20,893 | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | $ 73,286 | $ 55,257 | $ 31,655 |
Less: Preferred Stock dividends | (5,404) | 0 | 0 | ||||||||
Net income available for common stockholders | $ 67,882 | $ 55,257 | $ 31,655 | ||||||||
Shares used for determining basic earnings per share of common stock (in shares) | 42,279,811 | 42,194,891 | 42,166,629 | ||||||||
Dilutive effect of: | |||||||||||
Stock options (in shares) | 0 | 0 | 47,073 | ||||||||
Performance and restricted shares (in shares) | 422,962 | 27,968 | 25,980 | ||||||||
Preferred Stock (in shares) | 4,443,048 | 0 | 0 | ||||||||
Shares used for determining diluted earnings per share of common stock (in shares) | 47,145,821 | 42,222,859 | 42,239,682 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.19 | $ 0.46 | $ 0.46 | $ 0.50 | $ 0.30 | $ 0.77 | $ (0.01) | $ 0.25 | $ 1.61 | $ 1.31 | $ 0.75 |
Diluted earnings per share (in dollars per share) | $ 0.18 | $ 0.44 | $ 0.46 | $ 0.49 | $ 0.30 | $ 0.76 | $ (0.01) | $ 0.25 | $ 1.55 | $ 1.30 | $ 0.75 |
Earnings Per Share of Common 72
Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 489,411 | 671,251 | 235,283 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 399,012 | 447,524 | 229,001 |
Restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 24,072 | 220,348 | 6,282 |
Performance shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 66,327 | 3,379 | 0 |
Other Operating Expense, Net -
Other Operating Expense, Net - Schedule of Other Operating Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Line Items] | ||||
Increase in environmental liabilities for disposed operations | $ (5,298) | $ (6,930) | $ (70,129) | |
One-time separation and legal costs | 0 | 802 | (25,680) | |
Non-cash impairment charge | $ (28,500) | 0 | (28,462) | (7,184) |
Loss on sale or disposal of property, plant and equipment | (2,422) | (998) | (2,123) | |
Insurance settlement | 897 | 1,000 | 2,881 | |
Miscellaneous income (expense) | 1,139 | (681) | (169) | |
Total | $ (5,684) | (35,269) | (120,823) | |
Environmental loss contingencies term | 20 years | |||
Rayonier | ||||
Other Income and Expenses [Line Items] | ||||
Increase to environmental liabilities for disposed operations resulting from separation from Rayonier | $ 0 | $ 0 | $ (18,419) |
Other Operating Expense, Net -
Other Operating Expense, Net - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)site | |
Other Income and Expenses [Abstract] | ||||
Number of disposed operations sites | site | 4 | |||
Impairment charges | $ | $ 28,500 | $ 0 | $ 28,462 | $ 7,184 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 5,516 | $ (37,561) | $ (42,183) |
State and other | 368 | 197 | (305) |
Total Current | 5,884 | (37,364) | (42,488) |
Deferred | |||
Federal | (44,488) | 11,073 | 34,301 |
State and other | (711) | (1,316) | 641 |
Total Deferred | (45,199) | 9,757 | 34,942 |
Changes in valuation allowance | 0 | 0 | (1,270) |
Total | $ (39,315) | $ (27,607) | $ (8,816) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Domestic manufacturing production deduction | (0.00%) | (4.20%) | (14.40%) |
Cellulosic Biofuel Producer Credit reserve reversal | 0.00% | 0.00% | (11.80%) |
State credits | (0.80%) | (0.90%) | (2.90%) |
Nondeductible executive compensation | 0.60% | 1.20% | 2.40% |
Research credit adjustment | (0.00%) | (0.00%) | 2.40% |
Adjustment to prior tax returns | 0.00% | 0.00% | 2.70% |
Change in valuation allowance | 0.00% | 0.00% | 3.10% |
Nondeductible transaction costs | 0.00% | 0.00% | 4.00% |
Change in state rate | 0.00% | 1.40% | 0.00% |
Other | 0.10% | 0.80% | 1.30% |
Income tax rate as reported | 34.90% | 33.30% | 21.80% |
Scenario, Plan | |||
Income Tax Contingency [Line Items] | |||
Taxable income | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Gross deferred tax assets: | ||
Pension, postretirement and other employee benefits | $ 71,842 | $ 70,180 |
State tax credit carryforwards | 17,967 | 16,498 |
Environmental liabilities | 54,351 | 55,945 |
Capitalized costs | 10,894 | 14,088 |
Federal net operating losses | 8,951 | 0 |
State net operating losses | 3,102 | 3,204 |
Total gross deferred tax assets | 167,107 | 159,915 |
Less: Valuation allowance | (20,821) | (19,702) |
Total deferred tax assets after valuation allowance | 146,286 | 140,213 |
Gross deferred tax liabilities: | ||
Accelerated depreciation | (92,287) | (41,006) |
Other | (2,753) | (1,787) |
Total gross deferred tax liabilities | (95,040) | (42,793) |
Net deferred tax asset | $ 51,246 | $ 97,420 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Details) $ in Thousands | Dec. 31, 2016USD ($) |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, Gross Amount | $ 81,861 |
Net operating losses, Tax Effected | 3,102 |
Net operating losses, Valuation Allowance | 3,102 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, Gross Amount | 25,573 |
Net operating losses, Tax Effected | 8,951 |
Net operating losses, Valuation Allowance | 0 |
State tax credit carryforwards | |
Operating Loss Carryforwards [Line Items] | |
State tax credit carryforwards, Gross Amount | 17,967 |
State tax credit carryforwards, Tax Effected | 17,967 |
State tax credit carryforwards, Valuation Allowance | $ 17,719 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 0 | $ 0 | $ 4,767 |
Decreases related to prior year tax positions | 0 | 0 | (4,767) |
Increases related to prior year tax positions | 0 | 0 | 0 |
Balance at December 31, | $ 0 | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AFMC for CBPC Exchange [Line Items] | |||
Reverse of uncertain tax liability | $ 0 | $ 0 | $ 4,767 |
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 Oper81
Liabilities for Disposed Operations - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)site | Dec. 31, 2015USD ($) | |
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 (decrease) to liabilities | $ 5,298 | $ 6,930 |
Maximum | ||
Site Contingency [Line Items] | ||
Loss exposure in excess of accrual | $ 66,000 | |
Augusta, Georgia | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase (decrease) to liabilities | $ 1,212 | 1,861 |
Total spending | 72,500 | |
Spartanburg, South Carolina | ||
Site Contingency [Line Items] | ||
Increase (decrease) to liabilities | (4,904) | (575) |
Total spending | $ 43,500 | |
Baldwin, Florida | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase (decrease) to liabilities | $ 2,831 | 3,270 |
Total spending | $ 26,700 | |
Term for hazardous waste permit | 10 years | |
Port Angeles, Washington | ||
Site Contingency [Line Items] | ||
Environmental loss contingencies term | 20 years | |
Increase (decrease) to liabilities | $ 714 | $ 532 |
Total spending | $ 46,900 |
Liabilities for Disposed Oper82
Liabilities for Disposed Operations - Site Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 157,384 | $ 156,729 | |
Expenditures | (9,772) | (6,275) | |
Increase (Decrease) to Liabilities | 5,298 | 6,930 | |
Ending balance | 152,910 | 157,384 | |
Less: Current portion | (13,781) | (12,034) | $ (7,241) |
Non-Current portion | 139,129 | 145,350 | $ 149,488 |
Augusta, Georgia | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 22,881 | 22,207 | |
Expenditures | (1,206) | (1,187) | |
Increase (Decrease) to Liabilities | 1,212 | 1,861 | |
Ending balance | 22,887 | 22,881 | |
Spartanburg, South Carolina | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 17,476 | 18,984 | |
Expenditures | (792) | (933) | |
Increase (Decrease) to Liabilities | (4,904) | (575) | |
Ending balance | 11,780 | 17,476 | |
Baldwin, Florida | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 26,960 | 24,528 | |
Expenditures | (3,019) | (838) | |
Increase (Decrease) to Liabilities | 2,831 | 3,270 | |
Ending balance | 26,772 | 26,960 | |
Other SWP sites | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 35,892 | 37,397 | |
Expenditures | (1,495) | (1,731) | |
Increase (Decrease) to Liabilities | 4,799 | 226 | |
Ending balance | 39,196 | 35,892 | |
Total SWP | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 103,209 | 103,116 | |
Expenditures | (6,512) | (4,689) | |
Increase (Decrease) to Liabilities | 3,938 | 4,782 | |
Ending balance | 100,635 | 103,209 | |
Port Angeles, Washington | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 39,405 | 39,913 | |
Expenditures | (809) | (1,040) | |
Increase (Decrease) to Liabilities | 714 | 532 | |
Ending balance | 39,310 | 39,405 | |
All other sites | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 14,770 | 13,700 | |
Expenditures | (2,451) | (546) | |
Increase (Decrease) to Liabilities | 646 | 1,616 | |
Ending balance | $ 12,965 | $ 14,770 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares authorized (in shares) | 5,200,000 | ||
Number of shares available for future grant (in shares) | 1,800,000 | ||
Stock-based incentive compensation expense | $ 7,217 | $ 9,992 | $ 8,738 |
Incentive Stock Plans - Stock-b
Incentive Stock Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 7,217 | $ 9,992 | $ 8,738 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 6,330 | 8,124 | 7,763 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 887 | $ 1,868 | $ 975 |
Incentive Stock Plans - Non-Qua
Incentive Stock Plans - Non-Qualified Employee Stock Options Narrative (Details) - Stock Options - shares | 12 Months Ended | 30 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
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 (in shares) | 0 | 0 | 0 |
Incentive Stock Plans - Weighte
Incentive Stock Plans - Weighted Average Assumptions and Fair Value Calculations of Options Granted (Details) - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 40.10% |
Dividend yield | 4.20% |
Risk-free rate | 2.20% |
Expected life (in years) | 6 years 3 months 18 days |
Fair value per share of options granted (in dollars per share) | $ / shares | $ 9.31 |
Fair value of options granted | $ | $ 90 |
Incentive Stock Plans - Summary
Incentive Stock Plans - Summary of Stock Option Activity (Details) - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Options | |
Beginning balance (in shares) | shares | 441,615 |
Forfeited (in shares) | shares | (1,435) |
Exercised (in shares) | shares | 0 |
Expired (in shares) | shares | (41,168) |
Ending balance (in shares) | shares | 399,012 |
Options vested and expected to vest (in shares) | shares | 399,012 |
Options exercisable (in shares) | shares | 374,702 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 31.67 |
Forfeited (in dollars per share) | $ / shares | 36.55 |
Exercised (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 29.81 |
Ending balance (in dollars per share) | $ / shares | 31.85 |
Options vested and expected to vest (in dollars per share) | $ / shares | 31.85 |
Options exercisable (in dollars per share) | $ / shares | $ 31.53 |
Additional Disclosures | |
Weighted Average Remaining Contractual Term, Outstanding | 4 years 2 months 12 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 4 years 2 months 12 days |
Weighted Average Remaining Contractual Term, Options exercisable | 4 years |
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 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 0 | $ 0 | $ 320 |
Fair value of options vested | $ 444 | $ 717 | $ 90 |
Incentive Stock Plans - Restric
Incentive Stock Plans - Restricted Stock - Narrative (Details) - Restricted Stock - USD ($) $ in Millions | Jun. 27, 2014 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Company restricted stock converted per one Rayonier restricted stock (in shares) | 0.3333 | |
Incremental compensation cost | $ 2.3 | |
Incremental compensation cost, period for recognition | 2 years | |
Unrecognized compensation cost | $ 4.3 | |
Period for recognition | 1 year 8 months 27 days | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years |
Incentive Stock Plans - Activit
Incentive Stock Plans - Activity of Restricted Shares Granted to Employees (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 598,219 | 277,298 | 172,894 |
Weighted average price of shares granted (in dollars per share) | $ 8.03 | $ 20.83 | $ 41.51 |
Intrinsic value of restricted stock outstanding | $ 10,326 | $ 3,763 | $ 3,235 |
Fair value of restricted stock vested | $ 5,890 | $ 690 | $ 100 |
Incentive Stock Plans - Summa91
Incentive Stock Plans - Summary of Restricted Stock Activity (Details) - Restricted stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Awards | |||
Beginning balance (in shares) | 384,383 | ||
Granted (in shares) | 598,219 | 277,298 | 172,894 |
Forfeited (in shares) | (147,958) | ||
Vested (in shares) | (166,745) | ||
Ending balance (in shares) | 667,899 | 384,383 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 28.41 | ||
Granted (in dollars per share) | 8.03 | $ 20.83 | $ 41.51 |
Forfeited (in dollars per share) | 12.08 | ||
Vested (in dollars per share) | 35.45 | ||
Ending balance (in dollars per share) | $ 11.97 | $ 28.41 |
Incentive Stock Plans - Perform
Incentive Stock Plans - Performance Shares - Narrative (Details) - Performance-Based Stock Units $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Unrecognized compensation cost | $ 7.6 |
Period for recognition | 1 year 6 months 22 days |
Incentive Stock Plans - Activ93
Incentive Stock Plans - Activity of Performance Shares Granted to Employees (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance-Based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares of stock reserved for performance shares (in shares) | 1,304,419 | 422,920 | 95,952 |
Weighted average price of shares granted (in dollars per share) | $ 7.79 | $ 17.51 | $ 42.27 |
Intrinsic value of outstanding performance share units | $ 8,169 | $ 2,070 | $ 1,070 |
Performance-Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares of stock reserved for performance shares (in shares) | 286,737 | ||
Weighted average price of shares granted (in dollars per share) | $ 0 | $ 40.41 | |
Intrinsic value of outstanding performance share units | $ 3,197 |
Incentive Stock Plans - Summa94
Incentive Stock Plans - Summary of Performance Share Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Grant Date Fair Value | |||
Excess tax deficit due to cancellation | $ 1,228 | $ 2,558 | |
Performance-Based Stock Units | |||
Awards | |||
Beginning balance (in shares) | 211,460 | ||
Granted (in shares) | 610,100 | ||
Forfeited (in shares) | (102,669) | ||
Canceled (in shares) | 0 | ||
Ending balance (in shares) | 718,891 | 211,460 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 17.51 | ||
Granted (in dollars per share) | 7.79 | $ 17.51 | $ 42.27 |
Forfeited (in dollars per share) | 9.76 | ||
Cancelled (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 10.05 | $ 17.51 | |
Performance-Based Restricted Stock | |||
Awards | |||
Beginning balance (in shares) | 141,698 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Canceled (in shares) | (13,660) | ||
Ending balance (in shares) | 128,038 | 141,698 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 40.76 | ||
Granted (in dollars per share) | 0 | $ 40.41 | |
Forfeited (in dollars per share) | 0 | ||
Cancelled (in dollars per share) | 38.07 | ||
Ending balance (in dollars per share) | $ 41.05 | $ 40.76 |
Incentive Stock Plans - Assumpt
Incentive Stock Plans - Assumptions Used in Fair Value Calculation for Awards Granted (Details) - Performance-Based Stock Units | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 74.30% | 17.30% | 16.90% |
Risk-free rate | 1.00% | 1.00% | 0.70% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | $ 266,155 | ||
Fair value of plan assets at end of year | 275,955 | $ 266,155 | |
Pension | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 405,033 | 409,356 | |
Service cost | 5,225 | 5,977 | $ 4,099 |
Interest cost | 15,915 | 15,228 | 11,379 |
Actuarial loss (gain) | 7,416 | (7,073) | |
Plan amendments | 0 | 0 | |
Employee contributions | 0 | 0 | |
Benefits paid | (19,110) | (18,455) | |
Projected benefit obligation at end of year | 414,479 | 405,033 | 409,356 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 266,155 | 291,087 | |
Actual return on plan assets | 18,933 | (6,627) | |
Employer contributions | 12,276 | 2,312 | |
Other expense | (2,299) | (2,162) | |
Fair value of plan assets at end of year | 275,955 | 266,155 | 291,087 |
Funded Status at End of Year: | |||
Net accrued benefit cost | (138,524) | (138,878) | |
Postretirement | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 26,959 | 26,568 | |
Service cost | 808 | 1,006 | 798 |
Interest cost | 871 | 919 | 916 |
Actuarial loss (gain) | (940) | (2,049) | |
Plan amendments | 0 | 1,321 | |
Employee contributions | 335 | 361 | |
Benefits paid | (1,195) | (1,167) | |
Projected benefit obligation at end of year | 26,838 | 26,959 | 26,568 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 860 | 806 | |
Other expense | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status at End of Year: | |||
Net accrued benefit cost | $ (26,838) | $ (26,959) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | $ (161,729) | $ (162,084) |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (2,293) | (2,268) |
Non-current liabilities | (136,231) | (136,610) |
Net amount recognized | (138,524) | (138,878) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (1,340) | (1,485) |
Non-current liabilities | (25,498) | (25,474) |
Net amount recognized | $ (26,838) | $ (26,959) |
Employee Benefit Plans - Amou98
Employee Benefit Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | |||
Net Gains (Losses) and Prior Service Costs (Credits) Recognized in OCI [Abstract] | |||
Net (losses) gains | $ 14,101 | $ (24,950) | $ (49,577) |
Net Gains (Losses) and Prior Service Costs (Credits) Reclassified from OCI [Abstract] | |||
Amortization of losses | 11,343 | 13,434 | 7,620 |
Amortization of prior service (credit) cost | 761 | 750 | 1,161 |
Postretirement | |||
Net Gains (Losses) and Prior Service Costs (Credits) Recognized in OCI [Abstract] | |||
Net (losses) gains | (1,184) | 759 | (3,807) |
Net Gains (Losses) and Prior Service Costs (Credits) Reclassified from OCI [Abstract] | |||
Amortization of losses | 238 | 676 | 597 |
Amortization of prior service (credit) cost | $ (139) | $ (158) | $ (265) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred income tax benefit | $ 51,246 | $ 97,420 |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | (3,015) | (3,776) |
Net losses | (164,277) | (161,519) |
Plan amendment | 0 | 0 |
Deferred income tax benefit | 60,684 | 59,975 |
AOCI | (106,608) | (105,320) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | (2) | 27 |
Net losses | (7,121) | (8,585) |
Plan amendment | 1,644 | 1,797 |
Deferred income tax benefit | 2,007 | 2,461 |
AOCI | $ (3,472) | $ (4,300) |
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, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 440,339 | $ 431,992 |
Accumulated benefit obligation | 427,755 | 417,397 |
Fair value of plan assets | $ 275,955 | $ 266,155 |
Employee Benefit Plans - Net101
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 5,225 | $ 5,977 | $ 4,099 |
Interest cost | 15,915 | 15,228 | 11,379 |
Expected return on plan assets | (23,320) | (23,234) | (18,333) |
Amortization of prior service (credit) cost | 761 | 750 | 1,161 |
Amortization of losses | 11,343 | 13,434 | 7,620 |
Net periodic benefit cost | 9,924 | 12,155 | 5,926 |
Postretirement | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 808 | 1,006 | 798 |
Interest cost | 871 | 919 | 916 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (139) | (158) | (265) |
Amortization of losses | 238 | 676 | 597 |
Net periodic benefit cost | $ 1,778 | $ 2,443 | $ 2,046 |
Employee Benefit Plans - Amo102
Employee Benefit Plans - Amounts in AOCI to be Recognized over Next Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of loss | $ 11,209 |
Amortization of prior service cost | 761 |
Total amortization of AOCI loss | 11,970 |
Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of loss | 391 |
Amortization of prior service cost | (151) |
Total amortization of AOCI loss | $ 240 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 3.88% | 4.03% | 3.71% |
Rate of compensation increase | 4.10% | 4.45% | 4.50% |
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||
Discount rate | 4.03% | 3.71% | 4.04% |
Expected long-term return on plan assets | 8.50% | 8.50% | 8.50% |
Rate of compensation increase | 4.10% | 4.45% | 4.50% |
Postretirement | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 3.85% | 3.98% | 3.65% |
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 | 3.98% | 3.65% | 4.00% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan expense | $ 5 | $ 5.2 | $ 3.7 | |
Amount of Rayonier Advanced Materials common stock included in defined contribution plan | $ 16.4 | |||
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 8.50% | 8.50% | 8.50% | |
Scenario, Forecast | Subsequent Event | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected return on plan assets | 7.75% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rates (Details) - Postretirement | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 8.00% | 7.00% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
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, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Total of service and interest cost components, Increase | $ 179 |
Total of service and interest cost components, Decrease | (149) |
Accumulated postretirement benefit obligation, Increase | 1,861 |
Accumulated postretirement benefit obligation, Decrease | $ (1,588) |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Domestic equity securities | ||
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 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 24.00% | 24.00% |
Target Allocation Range, Minimum | 20.00% | |
Target Allocation Range, Maximum | 30.00% | |
Domestic fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 27.00% | 27.00% |
Target Allocation Range, Minimum | 25.00% | |
Target Allocation Range, Maximum | 29.00% | |
International fixed income securities | ||
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 | ||
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) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at net asset value | $ 199,198 | $ 192,273 |
Plan assets, at fair value | 275,955 | 266,155 |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 76,757 | 73,882 |
Mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 76,757 | 73,882 |
Mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 0 | 0 |
Mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | $ 0 | $ 0 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 20,787 |
2,018 | 21,536 |
2,019 | 22,242 |
2,020 | 22,844 |
2,021 | 23,400 |
2022 — 2026 | 122,842 |
Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1,340 |
2,018 | 1,507 |
2,019 | 1,445 |
2,020 | 1,474 |
2,021 | 1,435 |
2022 — 2026 | $ 7,449 |
Contingencies Contingencies Tra
Contingencies Contingencies Transactions (Details) - employee | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Number of employees | 1,200 | ||
Percentage of workforce | 100.00% | 100.00% | 100.00% |
Unionized Employees Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of workforce | 65.00% | ||
Unionized Employees Concentration Risk | Jesup, Georgia Plant | |||
Concentration Risk [Line Items] | |||
Percentage of workforce | 48.00% |
Guarantees (Details)
Guarantees (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 159,106 |
Carrying Amount of Liability | 111,533 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 20,505 |
Carrying Amount of Liability | 56,334 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 56,201 |
Carrying Amount of Liability | 55,199 |
LTF project | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 82,400 |
Carrying Amount of Liability | $ 0 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases, Operating [Abstract] | |||
Rental expense for operating leases | $ 4,500 | $ 4,000 | $ 2,100 |
Purchase Obligations | |||
2,017 | 25,154 | ||
2,018 | 9,612 | ||
2,019 | 5,168 | ||
2,020 | 5,168 | ||
2,021 | 5,168 | ||
Thereafter | 49,471 | ||
Total | 99,741 | ||
Operating Leases | |||
Operating Leases | |||
2,017 | 1,813 | ||
2,018 | 1,264 | ||
2,019 | 985 | ||
2,020 | 591 | ||
2,021 | 343 | ||
Thereafter | 89 | ||
Total | $ 5,085 |
Quarterly Results for 2016 a113
Quarterly Results for 2016 and 2015 (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 230,873 | $ 206,540 | $ 213,589 | $ 217,729 | $ 241,554 | $ 257,590 | $ 220,892 | $ 221,348 | $ 868,731 | $ 941,384 | $ 957,689 |
Gross Margin | 41,689 | 50,543 | 48,803 | 40,238 | 50,392 | 70,169 | 45,021 | 36,872 | 181,273 | 202,454 | 223,747 |
Operating Income | 25,721 | 41,437 | 38,569 | 31,920 | 29,030 | 57,962 | 8,585 | 23,946 | 137,647 | 119,523 | 62,955 |
Net Income (Loss) | $ 11,486 | $ 21,567 | $ 19,340 | $ 20,893 | $ 12,757 | $ 32,291 | $ (312) | $ 10,521 | $ 73,286 | $ 55,257 | $ 31,655 |
Basic earnings per share (in dollars per share) | $ 0.19 | $ 0.46 | $ 0.46 | $ 0.50 | $ 0.30 | $ 0.77 | $ (0.01) | $ 0.25 | $ 1.61 | $ 1.31 | $ 0.75 |
Diluted earnings per share (in dollars per share) | $ 0.18 | $ 0.44 | $ 0.46 | $ 0.49 | $ 0.30 | $ 0.76 | $ (0.01) | $ 0.25 | $ 1.55 | $ 1.30 | $ 0.75 |
Schedule II - Valuation and 114
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 151 | $ 151 | $ 140 |
Charged to Cost and Expenses | 0 | 0 | 11 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 151 | 151 | 151 |
Allowance for sales returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 0 | ||
Charged to Cost and Expenses | 523 | ||
Deductions | 0 | ||
Balance at End of Year | 523 | 0 | |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 19,702 | 20,517 | 24,588 |
Charged to Cost and Expenses | 1,119 | 0 | 0 |
Deductions | 0 | (815) | (4,071) |
Balance at End of Year | 20,821 | 19,702 | 20,517 |
Self-insurance liabilities | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 589 | 1,947 | 0 |
Charged to Cost and Expenses | 291 | (734) | 2,361 |
Deductions | (452) | (624) | (414) |
Balance at End of Year | $ 428 | $ 589 | $ 1,947 |