Rayonier Advanced Materials (RYAM) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 23, 2017	Oct. 27, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	RAYONIER ADVANCED MATERIALS INC.
Trading Symbol	RYAM
Entity Central Index Key	1,597,672
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 23, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		43,276,676

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Income Statement [Abstract]
Net Sales	$ 209,717	$ 206,540	$ 612,358	$ 637,858
Cost of Sales	(178,549)	(155,997)	(511,428)	(498,272)
Gross Margin	31,168	50,543	100,930	139,586
Selling, general and administrative expenses	(12,640)	(9,606)	(40,632)	(26,240)
Other operating (income) expense, net (Note 8)	(871)	500	(3,322)	(1,420)
Operating Income	17,657	41,437	56,976	111,926
Interest expense	(9,337)	(8,727)	(27,374)	(25,665)
Interest income and other, net	987	180	2,122	296
Unrealized gain on derivative instrument	14,087	0	16,149	0
Gain on debt extinguishment	0	0	0	8,844
Income Before Income Taxes	23,394	32,890	47,873	95,401
Income tax expense (Note 9)	(7,722)	(11,323)	(17,986)	(33,601)
Net Income Attributable to Rayonier Advanced Materials Inc.	15,672	21,567	29,887	61,800
Mandatory convertible stock dividends	(3,441)	(1,706)	(10,057)	(1,706)
Net Income Available to Rayonier Advanced Materials Inc. Common Stockholders	$ 12,231	$ 19,861	$ 19,830	$ 60,094
Earnings Per Share of Common Stock (Note 7)
Basic earnings per share (in dollars per share)	$ 0.29	$ 0.46	$ 0.47	$ 1.42
Diluted earnings per share (in dollars per share)	0.28	0.44	0.46	1.38
Dividends Declared Per Common Share (in dollars per share)	$ 0.07	$ 0.07	$ 0.21	$ 0.21
Comprehensive Income:
Net Income	$ 15,672	$ 21,567	$ 29,887	$ 61,800
Other Comprehensive Income (Note 6)
Amortization of pension and postretirement plans, net of income tax expense of $1,117, $1,088, $3,353 and $3,261.	2,032	1,974	6,093	5,881
Total other comprehensive income	2,032	1,974	6,093	5,881
Comprehensive Income	$ 17,704	$ 23,541	$ 35,980	$ 67,681

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Income Statement [Abstract]
Amortization of pension and postretirement plans, income tax expense	$ 1,117	$ 1,088	$ 3,353	$ 3,261

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 23, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 379,179	$ 326,655
Accounts receivable, less allowance for doubtful accounts of $151 and $151	42,870	37,626
Inventory (Note 2)	106,572	118,368
Prepaid and other current assets	61,115	36,859
Total current assets	589,736	519,508
Property, Plant and Equipment, Gross	2,084,401	2,056,372
Less — Accumulated Depreciation	(1,309,366)	(1,255,333)
Property, Plant and Equipment, Net	775,035	801,039
Deferred Tax Assets	29,394	51,246
Other Assets	48,435	50,146
Total Assets	1,442,600	1,421,939
Current Liabilities
Accounts payable	45,229	36,379
Accrued customer incentives and prepayments	31,854	34,541
Accrued payroll and benefits	18,344	21,902
Current maturities of long-term debt (Note 3)	267,028	9,593
Accrued income and other taxes	3,983	22
Accrued interest	10,122	2,499
Dividends payable	2,970	0
Other current liabilities	8,944	8,262
Current liabilities for disposed operations (Note 5)	15,148	13,781
Total current liabilities	403,622	126,979
Long-Term Debt (Note 3)	512,893	773,689
Non-Current Liabilities for Disposed Operations (Note 5)	136,531	139,129
Pension and Other Postretirement Benefits	147,871	161,729
Other Non-Current Liabilities	7,423	8,664
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, 10,000,000 shares authorized at $0.01 par value, 1,725,000 issued and outstanding as of September 23, 2017 and December 31, 2016, aggregate liquidation preference $172,500	17	17
Common stock, 140,000,000 shares authorized at $0.01 par value, 43,277,456 and 43,261,905 issued and outstanding, as of September 23, 2017 and December 31, 2016, respectively	433	433
Additional paid-in capital	248,738	242,402
Retained earnings	89,059	78,977
Accumulated other comprehensive loss	(103,987)	(110,080)
Total Stockholders’ Equity	234,260	211,749
Total Liabilities and Stockholders’ Equity	$ 1,442,600	$ 1,421,939

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 23, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 151	$ 151
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	1,725,000	1,725,000
Preferred stock, shares outstanding (in shares)	1,725,000	1,725,000
Preferred stock, aggregate liquidation preference	$ 172,500
Common stock, shares authorized (in shares)	140,000,000	140,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	43,277,456	43,261,905
Common stock, shares outstanding (in shares)	43,277,456	43,261,905

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016
Operating Activities
Net Income	$ 29,887	$ 61,800
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	63,884	64,033
Stock-based incentive compensation expense	6,489	4,981
Amortization of capitalized debt costs and debt discount	1,401	1,435
Deferred income tax	18,499	35,944
Increase in liabilities for disposed operations	2,188	2,909
Gain on debt extinguishment	0	(8,844)
Unrealized gain on derivative instrument	(16,149)	0
Amortization of losses and prior service costs from pension and postretirement plans	9,446	9,142
Loss from sale/disposal of property, plant and equipment	653	624
Other	0	(3,430)
Changes in operating assets and liabilities:
Receivables	(5,244)	24,765
Inventories	11,797	5,262
Accounts payable	15,255	5,061
Accrued liabilities	6,004	9,348
Contributions to pension and other postretirement benefit plans	(12,019)	(11,856)
All other operating activities	(11,049)	(11,881)
Expenditures for disposed operations	(3,418)	(8,093)
Cash Provided by Operating Activities	117,624	181,200
Investing Activities
Capital expenditures	(44,075)	(58,458)
Other	0	2,143
Cash Used for Investing Activities	(44,075)	(56,315)
Financing Activities
Issuance of mandatory convertible preferred stock	0	166,609
Repayment of debt	(4,398)	(66,831)
Dividends paid on common stock	(6,124)	(5,913)
Dividends paid on preferred stock	(10,350)	0
Common stock repurchased	(153)	(387)
Cash (Used for) Provided by Financing Activities	(21,025)	93,478
Cash and Cash Equivalents
Change in cash and cash equivalents	52,524	218,363
Balance, beginning of year	326,655	101,303
Balance, end of period	379,179	319,666
Cash paid during the period:
Interest	19,056	19,036
Income taxes	5,989	2,758
Non-cash investing and financing activities:
Capital assets purchased on account	$ 3,750	$ 17,159

Basis of Presentation and New A

Basis of Presentation and New Accounting Pronouncements	9 Months Ended
	Sep. 23, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and New Accounting Pronouncements	Basis of Presentation and New Accounting Pronouncements Basis of Presentation The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the SEC. New or Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, Compensation - Stock Compensation. The update provides guidance on how changes to the terms or conditions of stock compensation are accounted. It is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-07, Compensation - Retirement Benefits. The update improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. It is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments . The update was issued to reduce diversity in practice regarding the presentation of eight specific types of cash receipts and cash payments in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, 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 became effective for fiscal years beginning after December 15, 2016. The Company adopted as of January 1, 2017 and prospectively applied the guidance. The Company recorded $2.3 million in tax expense during the first quarter of 2017 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 became effective for fiscal years beginning after December 15, 2016. The Company adopted as of January 1, 2017 and retrospectively applied the guidance. There was not a material impact on the Company’s financial statements as the inventory valuation practices already approximated 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. The Company is continuing to evaluate the impact of the new standard on its consolidated financial statements and assessing changes required to its business processes, systems and controls to support revenue recognition. The Company plans to adopt the new revenue guidance effective January 1, 2018 on a modified retrospective basis and does not expect the impact on its consolidated financial statements to be material. The primary impact is anticipated to be the additional required disclosures around revenue recognition in the notes to the consolidated financial statements. Subsequent Events Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through November 2, 2017 , the date these financial statements were available to be issued. Three subsequent events warranting disclosure were identified. In preparation for the Company’s acquisition of Tembec Inc. (“Tembec”) and subsequent to the quarter end, the Company made additional payments of $268 million on the term loan principal balances on September 26, 2017. Accordingly, the principal amounts paid were classified as current maturities of long-term debt on the Company’s September 23, 2017 condensed consolidated balance sheet. On October 18, 2017, the Company’s board of directors declared a fourth quarter cash dividend of $2.00 per share of mandatory convertible preferred stock. The dividend will be paid on November 15, 2017 to mandatory convertible preferred stockholders of record as of November 1, 2017. The board of directors also declared a fourth quarter cash dividend of $0.07 per share of common stock. The common stock dividend is payable on December 29, 2017 to common stockholders of record on December 15, 2017.

Inventory

Inventory	9 Months Ended
	Sep. 23, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory As of September 23, 2017 and December 31, 2016 , the Company’s inventory included the following: September 23, 2017 December 31, 2016 Finished goods $ 86,571 $ 94,858 Work-in-progress 4,058 3,422 Raw materials 12,653 17,183 Manufacturing and maintenance supplies 3,290 2,905 Total inventory $ 106,572 $ 118,368

Debt and Capital Leases

Debt and Capital Leases	9 Months Ended
	Sep. 23, 2017
Debt Disclosure [Abstract]
Debt and Capital Leases	Debt and Capital Leases As of September 23, 2017 and December 31, 2016 , the Company’s debt consisted of the following: September 23, 2017 December 31, 2016 Revolving Credit Facility of $250 million, $243 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at September 23, 2017 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.50%, interest rate of 2.74% at September 23, 2017 27,700 30,450 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 2.99% at September 23, 2017 249,850 251,300 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 506,412 Capital Lease obligation 3,478 3,676 Total principal payments due 787,440 791,838 Less: original issue discount and debt issuance costs (7,519 ) (8,556 ) Total debt 779,921 783,282 Less: Current maturities of long-term debt (267,028 ) (9,593 ) Long-term debt $ 512,893 $ 773,689 During the nine months ended September 23, 2017 , the Company made $4.2 million in principal repayments on the term loan facilities. Additional principal repayments on the term loan facilities of $268 million were made subsequent to September 23, 2017 . As a result, the additional principal amounts paid were reclassified as current maturities of long-term debt on the Company’s condensed consolidated balance sheet. As of September 23, 2017 , principal payments due during the next five years and thereafter are presented in the table below, inclusive of the commitment to make additional principal payments on the term loans as referenced above. Capital Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments Remaining 2017 $ 129 $ 60 $ 69 $ 267,550 2018 515 230 285 — 2019 515 209 306 5,000 2020 515 187 328 — 2021 515 163 352 5,000 Thereafter 2,533 395 2,138 506,412 Total principal payments $ 4,722 $ 1,244 $ 3,478 $ 783,962

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 23, 2017
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 September 23, 2017 and December 31, 2016 , using market information and what management believes to be appropriate valuation methodologies: September 23, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) (a) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 379,179 $ 379,179 $ — $ 326,655 $ 326,655 $ — Current derivative assets 16,149 — 16,149 — — — Current maturities of long-term debt (266,748 ) — (267,550 ) (9,327 ) — (9,775 ) Fixed-rate long-term debt (500,140 ) — (488,688 ) (499,444 ) — (474,761 ) Variable-rate long-term debt (9,555 ) — (10,000 ) (270,836 ) — (271,975 ) (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. Current derivative asset (foreign currency collar) — The fair value is calculated using standard valuation models. Significant inputs in these models include foreign currency future rates. See Note 14 - Pending Acquisition for additional information related to the derivative assets. Debt — The fair value of fixed-rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable-rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Liabilities for Disposed Operat

Liabilities for Disposed Operations	9 Months Ended
	Sep. 23, 2017
Environmental Remediation Obligations [Abstract]
Liabilities for Disposed Operations	Liabilities for Disposed Operations An analysis of the liabilities for disposed operations for the nine months ended September 23, 2017 is as follows: Balance, December 31, 2016 $ 152,910 Expenditures charged to liabilities (3,419 ) Increase to liabilities 2,188 Balance, September 23, 2017 151,679 Less: Current portion (15,148 ) Non-current portion $ 136,531 In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy and/or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its disposed operations sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies and non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of September 23, 2017 , the Company estimates this exposure could range up to approximately $67 million , although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several sites and other applicable liabilities. Further, this estimate excludes reasonably possible liabilities which are not currently estimable primarily due to the factors discussed above. Subject to the previous paragraph, the Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its disposed operations. However, no assurances are given they will be sufficient for the reasons described above, and additional liabilities could have a material adverse effect on the Company’s financial position, results of operations and cash flows. On September 18, 2017, the Company received comments from Washington State Ecology on its feasibility study submitted in February 2015. The Company is currently evaluating the impact of the comments on its proposed remediation plan and cost estimates and expects to complete its evaluation in the first quarter of 2018.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 23, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss was comprised of the following: Nine Months Ended Unrecognized components of employee benefit plans, net of tax September 23, 2017 September 24, 2016 Balance, beginning of period $ (110,080 ) $ (109,620 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 8,989 8,676 Amortization of prior service costs 572 581 Amortization of negative plan amendment (115 ) (115 ) Tax benefit (3,353 ) (3,261 ) Total reclassifications for the period, net of tax 6,093 5,881 Balance, end of period $ (103,987 ) $ (103,739 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Sep. 23, 2017
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Net income $ 15,672 $ 21,567 $ 29,887 $ 61,800 Preferred Stock dividends (3,441 ) (1,706 ) (10,057 ) (1,706 ) Net income available for common stockholders $ 12,231 $ 19,861 $ 19,830 $ 60,094 Shares used for determining basic earnings per share of common stock 42,427,437 42,360,326 42,388,762 42,266,295 Dilutive effect of: Stock options — — — — Performance and restricted shares 1,025,228 368,357 896,066 214,656 Preferred Stock 12,582,057 6,607,423 — 2,243,565 Shares used for determining diluted earnings per share of common stock 56,034,722 49,336,106 43,284,828 44,724,516 Basic earnings per share (not in thousands) $ 0.29 $ 0.46 $ 0.47 $ 1.42 Diluted earnings per share (not in thousands) $ 0.28 $ 0.44 $ 0.46 $ 1.38 Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Stock options 376,434 400,765 376,434 400,765 Restricted stock 726 24,331 5,797 41,466 Performance shares 6,886 2,790 7,228 66,775 Preferred Stock — — 12,582,057 — Total 384,046 427,886 12,971,516 509,006

Other Operating Expense, Net

Other Operating Expense, Net	9 Months Ended
	Sep. 23, 2017
Other Income and Expenses [Abstract]
Other Operating Expense, Net	Other Operating Expense, Net Other operating expense, net was comprised of the following: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Loss on sale or disposal of property, plant and equipment $ (6 ) $ (133 ) $ (653 ) $ (624 ) Environmental reserve adjustment (784 ) (272 ) (2,188 ) (2,909 ) Insurance recoveries — 500 — 897 Miscellaneous (expense) income (81 ) 405 (481 ) 1,216 Total $ (871 ) $ 500 $ (3,322 ) $ (1,420 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 23, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the three months ended September 23, 2017 and September 24, 2016 was 33.0 percent and 34.4 percent , respectively. For both quarters, the tax rate differs from the federal statutory rate of 35.0 percent primarily due to the domestic manufacturing deduction and nondeductible expenses, while 2017 was also impacted by federal tax credits recognized for the 2016 and 2017 tax years. The Company’s effective tax rate for the nine months ended September 23, 2017 and September 24, 2016 was 37.6 percent and 35.2 percent , respectively. The current year-to-date effective tax rate differs from the federal statutory rate of 35.0 percent due to the recognition of tax expense from non-vested incentive stock options, partially offset by federal tax credits. Other items impacting the effective tax rate in both year-to-date periods included the domestic manufacturing deduction, state taxes and credits, and nondeductible expenses.

Incentive Stock Plans

Incentive Stock Plans	9 Months Ended
	Sep. 23, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Incentive Stock Plans	Incentive Stock Plans The Company’s total stock based compensation cost for the nine months ended September 23, 2017 and September 24, 2016 was $6.5 million and $5.0 million , respectively. The Company also made new grants of restricted and performance shares to certain employees during the first quarter of 2017. The 2017 restricted share awards vest over three years. The 2017 performance share awards are measured against an internal return on invested capital target and, depending on performance against the target, the awards will pay out between 0 and 200 percent of target. The total number of performance shares earned will be adjusted up or down 25 percent , for certain participants, based on stock price performance relative to a peer group over the term of the plan, which would result in a final payout range of 0 to 250 percent of target. The following table summarizes the activity on the Company’s incentive stock awards for the nine months ended September 23, 2017 : Stock Options Restricted Stock Performance-Based Stock Units Performance-Based Restricted Stock Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 399,012 $ 31.85 667,899 $ 11.97 718,891 $ 10.05 128,038 $ 41.05 Granted — — 284,979 13.36 362,895 14.60 — — Forfeited — — (2,355 ) 9.87 (1,101 ) 9.80 — — Exercised or settled — — (100,600 ) 11.78 — — — — Expired or cancelled (22,578 ) 15.31 — — — — (128,038 ) 41.05 Outstanding at September 23, 2017 376,434 $ 27.72 849,923 $ 12.46 1,080,685 $ 11.58 — $ —

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 23, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has a qualified non-contributory defined benefit pension plan covering a significant majority of its employees and an unfunded plan that provides benefits in excess of amounts allowable in the qualified plans under current tax law. Both the qualified plan and the unfunded excess plan are closed to new participants. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Beginning in 2017, the Company changed 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 was used. The Company believes this change provides 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. The Company estimates the adoption of the spot rate approach will decrease pension and postretirement cost by approximately $3.0 million as compared to using the single weighted-average discount rate derived from the yield curve for the full year 2017. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. The net pension and postretirement benefit costs that have been recorded are shown in the following tables: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Service cost $ 1,184 $ 1,306 $ 236 $ 202 Interest cost 3,318 3,979 198 218 Expected return on plan assets (5,548 ) (5,830 ) — — Amortization of prior service cost 190 191 — 4 Amortization of losses 2,913 2,835 83 70 Amortization of negative plan amendment — — (38 ) (39 ) Total net periodic benefit cost $ 2,057 $ 2,481 $ 479 $ 455 Pension Postretirement Nine Months Ended Nine Months Ended Components of Net Periodic Benefit Cost September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Service cost $ 3,552 $ 3,919 $ 707 $ 880 Interest cost 9,954 11,937 594 653 Expected return on plan assets (16,645 ) (17,490 ) — — Amortization of prior service cost 571 571 1 10 Amortization of losses 8,739 8,507 250 169 Amortization of negative plan amendment — — (115 ) (115 ) Total net periodic benefit cost $ 6,171 $ 7,444 $ 1,437 $ 1,597 On September 14, 2017, the Company made a voluntary contribution of $ 10 million to its pension plan. The Company did not have any mandatory pension contribution requirements in 2017 .

Contingencies

Contingencies	9 Months Ended
	Sep. 23, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is engaged in various legal and regulatory actions and proceedings, and has been named as a defendant in various litigation arising in the ordinary course of its business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, the Company has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. While there can be no assurance, the ultimate outcome of these proceedings, either individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. On June 30, 2017, collective bargaining agreements covering approximately 587 hourly employees at our Jesup plant expired. The parties have continued to work under the terms of the expired contracts while negotiations continue, as has been the practice during past negotiations. While there can be no assurance, we expect to reach agreements with our unions; however, a work stoppage could have a material adverse effect on our business, results of operations and financial condition.

Guarantees

Guarantees	9 Months Ended
	Sep. 23, 2017
Guarantees [Abstract]
Guarantees	Guarantees The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of September 23, 2017 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Liability Standby letters of credit (a) $ 7,025 $ 3,264 Surety bonds (b) 59,027 59,002 LTF project (c) 37,197 — Total financial commitments $ 103,249 $ 62,266 (a) The letters of credit primarily provide credit support for natural gas purchases and insurance programs. The Company was released from its requirement to provide letters of credit for its financial assurance relating to its environmental remediation and post closure care as of September 23, 2017 . (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, 2018 and 2019. They are expected to be renewed annually as required. (c) LignoTech Florida 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. The facility is expected to be completed in mid-2018.

Pending Acquisition

Pending Acquisition	9 Months Ended
	Sep. 23, 2017
Business Combinations [Abstract]
Pending Acquisition	Pending Acquisition On May 25, 2017, the Company announced that it entered into an agreement to acquire all of the outstanding common shares of Tembec. Tembec is a leading manufacturer of forest products including lumber, paper pulp, paper, commodity products and cellulose specialties with operations in Canada and France. On July 23, 2017, the agreement was amended. Under the terms of the amendment, Tembec shareholders at their choice will receive C$4.75 in cash or 0.2542 shares of the Company’s common stock, subject to proration to ensure that no more than 66.8% of the aggregate Tembec shares shall receive the per share cash consideration and no more than 33.2% of the aggregate Tembec shares will receive the per share stock consideration. The purchase price of approximately $870 million , which includes the assumption of $481 million of Tembec net debt, is based on the Company’s closing stock price and currency exchange rate as of June 24, 2017. The transaction is expected to be funded with cash on-hand, committed bank financing and the issuance of approximately 8.4 million shares of Company stock. On August 17, 2017, the Company received commitments from lenders to borrow up to $ 680 million to fund the Tembec acquisition through the refinancing of existing term loans. Completion of the Tembec transaction is subject to the satisfaction or waiver of certain closing conditions and is expected to be completed in the second half of the fourth quarter of 2017. In connection with the acquisition of Tembec, the Company entered into a foreign currency collar, a derivative, as an economic hedge of the anticipated cash flows denominated in Canadian dollars. The derivative does not meet the hedging accounting criteria and is being marked-to-market through other non-operating income. See Note 4 - Fair Value Measures for additional information related to the derivative. The Company’s derivative positions are presented in the table below: Derivatives Not Designated as Hedging Instruments September 23, 2017 December 31, 2016 Balance Sheet Location Notional amount (in Canadian Dollars) 300,000 $ — Derivative Assets - fair value Foreign currency collar (a) $ 16,163 $ — Derivative Liabilities - fair value Foreign currency collar (a) $ (14 ) $ — Total $ 16,149 $ — Other current assets (a) The currency collar is subject to an enforceable master netting agreement and is presented net on the balance sheet. The effect on the statement of income of the outstanding derivative instrument is summarized as follows: Gains (Losses) for the periods Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Foreign currency collar Other non-operating income $ 14,087 $ — $ 16,149 $ —

Basis of Presentation and New21

Basis of Presentation and New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 23, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the SEC.
New or Recently Adopted Accounting Pronouncements	New or Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, Compensation - Stock Compensation. The update provides guidance on how changes to the terms or conditions of stock compensation are accounted. It is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-07, Compensation - Retirement Benefits. The update improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. It is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments . The update was issued to reduce diversity in practice regarding the presentation of eight specific types of cash receipts and cash payments in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, 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 became effective for fiscal years beginning after December 15, 2016. The Company adopted as of January 1, 2017 and prospectively applied the guidance. The Company recorded $2.3 million in tax expense during the first quarter of 2017 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 became effective for fiscal years beginning after December 15, 2016. The Company adopted as of January 1, 2017 and retrospectively applied the guidance. There was not a material impact on the Company’s financial statements as the inventory valuation practices already approximated 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. The Company is continuing to evaluate the impact of the new standard on its consolidated financial statements and assessing changes required to its business processes, systems and controls to support revenue recognition. The Company plans to adopt the new revenue guidance effective January 1, 2018 on a modified retrospective basis and does not expect the impact on its consolidated financial statements to be material. The primary impact is anticipated to be the additional required disclosures around revenue recognition in the notes to the consolidated financial statements.
Fair Value Measurements	The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amount is equal to fair market value. Current derivative asset (foreign currency collar) — The fair value is calculated using standard valuation models. Significant inputs in these models include foreign currency future rates. See Note 14 - Pending Acquisition for additional information related to the derivative assets. Debt — The fair value of fixed-rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable-rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 23, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	As of September 23, 2017 and December 31, 2016 , the Company’s inventory included the following: September 23, 2017 December 31, 2016 Finished goods $ 86,571 $ 94,858 Work-in-progress 4,058 3,422 Raw materials 12,653 17,183 Manufacturing and maintenance supplies 3,290 2,905 Total inventory $ 106,572 $ 118,368

Debt and Capital Leases (Tables

Debt and Capital Leases (Tables)	9 Months Ended
	Sep. 23, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of September 23, 2017 and December 31, 2016 , the Company’s debt consisted of the following: September 23, 2017 December 31, 2016 Revolving Credit Facility of $250 million, $243 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at September 23, 2017 $ — $ — Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.50%, interest rate of 2.74% at September 23, 2017 27,700 30,450 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 2.99% at September 23, 2017 249,850 251,300 Senior Notes due 2024 at a fixed interest rate of 5.50% 506,412 506,412 Capital Lease obligation 3,478 3,676 Total principal payments due 787,440 791,838 Less: original issue discount and debt issuance costs (7,519 ) (8,556 ) Total debt 779,921 783,282 Less: Current maturities of long-term debt (267,028 ) (9,593 ) Long-term debt $ 512,893 $ 773,689
Schedule of Maturities of Long-term Debt	As of September 23, 2017 , principal payments due during the next five years and thereafter are presented in the table below, inclusive of the commitment to make additional principal payments on the term loans as referenced above. Capital Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments Remaining 2017 $ 129 $ 60 $ 69 $ 267,550 2018 515 230 285 — 2019 515 209 306 5,000 2020 515 187 328 — 2021 515 163 352 5,000 Thereafter 2,533 395 2,138 506,412 Total principal payments $ 4,722 $ 1,244 $ 3,478 $ 783,962

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 23, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at September 23, 2017 and December 31, 2016 , using market information and what management believes to be appropriate valuation methodologies: September 23, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Asset (liability) (a) Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 379,179 $ 379,179 $ — $ 326,655 $ 326,655 $ — Current derivative assets 16,149 — 16,149 — — — Current maturities of long-term debt (266,748 ) — (267,550 ) (9,327 ) — (9,775 ) Fixed-rate long-term debt (500,140 ) — (488,688 ) (499,444 ) — (474,761 ) Variable-rate long-term debt (9,555 ) — (10,000 ) (270,836 ) — (271,975 ) (a) Table excludes the Company’s capital lease obligation.

Liabilities for Disposed Oper25

Liabilities for Disposed Operations (Tables)	9 Months Ended
	Sep. 23, 2017
Environmental Remediation Obligations [Abstract]
Schedule of Liabilities for Disposed Operations	An analysis of the liabilities for disposed operations for the nine months ended September 23, 2017 is as follows: Balance, December 31, 2016 $ 152,910 Expenditures charged to liabilities (3,419 ) Increase to liabilities 2,188 Balance, September 23, 2017 151,679 Less: Current portion (15,148 ) Non-current portion $ 136,531

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 23, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss was comprised of the following: Nine Months Ended Unrecognized components of employee benefit plans, net of tax September 23, 2017 September 24, 2016 Balance, beginning of period $ (110,080 ) $ (109,620 ) Defined benefit pension and post-retirement plans (a) Amortization of losses 8,989 8,676 Amortization of prior service costs 572 581 Amortization of negative plan amendment (115 ) (115 ) Tax benefit (3,353 ) (3,261 ) Total reclassifications for the period, net of tax 6,093 5,881 Balance, end of period $ (103,987 ) $ (103,739 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 11 — Employee Benefit Plans for additional information.

Earnings Per Share of Common 27

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 23, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Net income $ 15,672 $ 21,567 $ 29,887 $ 61,800 Preferred Stock dividends (3,441 ) (1,706 ) (10,057 ) (1,706 ) Net income available for common stockholders $ 12,231 $ 19,861 $ 19,830 $ 60,094 Shares used for determining basic earnings per share of common stock 42,427,437 42,360,326 42,388,762 42,266,295 Dilutive effect of: Stock options — — — — Performance and restricted shares 1,025,228 368,357 896,066 214,656 Preferred Stock 12,582,057 6,607,423 — 2,243,565 Shares used for determining diluted earnings per share of common stock 56,034,722 49,336,106 43,284,828 44,724,516 Basic earnings per share (not in thousands) $ 0.29 $ 0.46 $ 0.47 $ 1.42 Diluted earnings per share (not in thousands) $ 0.28 $ 0.44 $ 0.46 $ 1.38
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Stock options 376,434 400,765 376,434 400,765 Restricted stock 726 24,331 5,797 41,466 Performance shares 6,886 2,790 7,228 66,775 Preferred Stock — — 12,582,057 — Total 384,046 427,886 12,971,516 509,006

Other Operating Expense, Net (T

Other Operating Expense, Net (Tables)	9 Months Ended
	Sep. 23, 2017
Other Income and Expenses [Abstract]
Other Operating Expense, Net	Other operating expense, net was comprised of the following: Three Months Ended Nine Months Ended September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Loss on sale or disposal of property, plant and equipment $ (6 ) $ (133 ) $ (653 ) $ (624 ) Environmental reserve adjustment (784 ) (272 ) (2,188 ) (2,909 ) Insurance recoveries — 500 — 897 Miscellaneous (expense) income (81 ) 405 (481 ) 1,216 Total $ (871 ) $ 500 $ (3,322 ) $ (1,420 )

Incentive Stock Plans (Tables)

Incentive Stock Plans (Tables)	9 Months Ended
	Sep. 23, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Activity for Incentive Stock Awards	The following table summarizes the activity on the Company’s incentive stock awards for the nine months ended September 23, 2017 : Stock Options Restricted Stock Performance-Based Stock Units Performance-Based Restricted Stock Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 399,012 $ 31.85 667,899 $ 11.97 718,891 $ 10.05 128,038 $ 41.05 Granted — — 284,979 13.36 362,895 14.60 — — Forfeited — — (2,355 ) 9.87 (1,101 ) 9.80 — — Exercised or settled — — (100,600 ) 11.78 — — — — Expired or cancelled (22,578 ) 15.31 — — — — (128,038 ) 41.05 Outstanding at September 23, 2017 376,434 $ 27.72 849,923 $ 12.46 1,080,685 $ 11.58 — $ —

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 23, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Schedule of Net Pension and Postretirement Benefit Costs	The net pension and postretirement benefit costs that have been recorded are shown in the following tables: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Service cost $ 1,184 $ 1,306 $ 236 $ 202 Interest cost 3,318 3,979 198 218 Expected return on plan assets (5,548 ) (5,830 ) — — Amortization of prior service cost 190 191 — 4 Amortization of losses 2,913 2,835 83 70 Amortization of negative plan amendment — — (38 ) (39 ) Total net periodic benefit cost $ 2,057 $ 2,481 $ 479 $ 455 Pension Postretirement Nine Months Ended Nine Months Ended Components of Net Periodic Benefit Cost September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Service cost $ 3,552 $ 3,919 $ 707 $ 880 Interest cost 9,954 11,937 594 653 Expected return on plan assets (16,645 ) (17,490 ) — — Amortization of prior service cost 571 571 1 10 Amortization of losses 8,739 8,507 250 169 Amortization of negative plan amendment — — (115 ) (115 ) Total net periodic benefit cost $ 6,171 $ 7,444 $ 1,437 $ 1,597

Guarantees (Tables)

Guarantees (Tables)	9 Months Ended
	Sep. 23, 2017
Guarantees [Abstract]
Schedule of Financial Guarantees Outstanding	The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of September 23, 2017 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Liability Standby letters of credit (a) $ 7,025 $ 3,264 Surety bonds (b) 59,027 59,002 LTF project (c) 37,197 — Total financial commitments $ 103,249 $ 62,266 (a) The letters of credit primarily provide credit support for natural gas purchases and insurance programs. The Company was released from its requirement to provide letters of credit for its financial assurance relating to its environmental remediation and post closure care as of September 23, 2017 . (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, 2018 and 2019. They are expected to be renewed annually as required. (c) LignoTech Florida 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. The facility is expected to be completed in mid-2018.

Pending Acquisition (Tables)

Pending Acquisition (Tables)	9 Months Ended
	Sep. 23, 2017
Business Combinations [Abstract]
Schedule of Derivative Gains (Losses)	The Company’s derivative positions are presented in the table below: Derivatives Not Designated as Hedging Instruments September 23, 2017 December 31, 2016 Balance Sheet Location Notional amount (in Canadian Dollars) 300,000 $ — Derivative Assets - fair value Foreign currency collar (a) $ 16,163 $ — Derivative Liabilities - fair value Foreign currency collar (a) $ (14 ) $ — Total $ 16,149 $ — Other current assets (a) The currency collar is subject to an enforceable master netting agreement and is presented net on the balance sheet. The effect on the statement of income of the outstanding derivative instrument is summarized as follows: Gains (Losses) for the periods Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative September 23, 2017 September 24, 2016 September 23, 2017 September 24, 2016 Foreign currency collar Other non-operating income $ 14,087 $ — $ 16,149 $ —

Basis of Presentation and New33

Basis of Presentation and New Accounting Pronouncements (Details) $ / shares in Units, $ in Thousands	Oct. 18, 2017$ / shares	Sep. 26, 2017USD ($)	Oct. 31, 2017subsequent_event	Sep. 23, 2017$ / shares	Mar. 25, 2017USD ($)	Sep. 24, 2016$ / shares	Sep. 23, 2017USD ($)$ / shares	Sep. 24, 2016USD ($)$ / shares
Subsequent Event [Line Items]
Principal repayments							$ 4,398	$ 66,831
Common stock dividend declared (in dollars per share) | $ / shares				$ 0.07		$ 0.07	$ 0.21	$ 0.21
Subsequent Event
Subsequent Event [Line Items]
Number of subsequent events | subsequent_event			3
Common stock dividend declared (in dollars per share) | $ / shares	$ 0.07
Subsequent Event | Convertible Preferred Stock
Subsequent Event [Line Items]
Convertible preferred stock dividend declared (in dollars per share) | $ / shares	$ 2
Term Loan
Subsequent Event [Line Items]
Principal repayments							$ 4,200
Term Loan | Subsequent Event
Subsequent Event [Line Items]
Principal repayments		$ 268,000
Accounting Standards Update 2016-09
Subsequent Event [Line Items]
Income tax expense related to adoption of ASU 2016-09					$ 2,300

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 23, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 86,571	$ 94,858
Work-in-progress	4,058	3,422
Raw materials	12,653	17,183
Manufacturing and maintenance supplies	3,290	2,905
Total inventory	$ 106,572	$ 118,368

Debt and Capital Leases - Summa

Debt and Capital Leases - Summary of Debt (Details) - USD ($)	9 Months Ended
	Sep. 23, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt, gross	$ 783,962,000
Capital Lease obligation	3,478,000	$ 3,676,000
Total principal payments due	787,440,000	791,838,000
Less: original issue discount and debt issuance costs	(7,519,000)	(8,556,000)
Total debt	779,921,000	783,282,000
Less: Current maturities of long-term debt	(267,028,000)	(9,593,000)
Long-term debt	$ 512,893,000	773,689,000
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.50%, interest rate of 2.74% at September 23, 2017
Debt Instrument [Line Items]
Interest rate	2.74%
Debt, gross	$ 27,700,000	30,450,000
Credit Facility | Term A-1 Loan Facility borrowings maturing through June 2019 bearing interest at LIBOR plus 1.50%, interest rate of 2.74% at September 23, 2017 | 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 2.99% at September 23, 2017
Debt Instrument [Line Items]
Interest rate	2.99%
Patronage benefit	0.67%
Debt, gross	$ 249,850,000	251,300,000
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 2.99% at September 23, 2017 | LIBOR
Debt Instrument [Line Items]
Basis spread after patronage benefit	1.08%
Senior Notes due 2024 at a fixed interest rate of 5.50%
Debt Instrument [Line Items]
Fixed interest rate	5.50%
Debt, gross	$ 506,412,000	506,412,000
Revolving Credit Facility of $250 million, $243 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at September 23, 2017 | Credit Facility
Debt Instrument [Line Items]
Borrowing capacity	250,000,000
Borrowing capacity after outstanding letters of credit	243,000,000
Debt, gross	$ 0	$ 0
Revolving Credit Facility of $250 million, $243 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 1.50% at September 23, 2017 | Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread	1.50%

Debt and Capital Leases - Narra

Debt and Capital Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 26, 2017	Sep. 23, 2017	Sep. 24, 2016
Debt Instrument [Line Items]
Principal repayments		$ 4,398	$ 66,831
Credit Facility
Debt Instrument [Line Items]
Principal repayments		$ 4,200
Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Principal repayments	$ 268,000

Debt and Capital Leases - Sched

Debt and Capital Leases - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Sep. 23, 2017USD ($)
Minimum Lease Payments
Remaining 2,017	$ 129
2,018	515
2,019	515
2,020	515
2,021	515
Thereafter	2,533
Total principal payments	4,722
Less: Interest
Remaining 2,017	60
2,018	230
2,019	209
2,020	187
2,021	163
Thereafter	395
Total principal payments	1,244
Net Present Value
Remaining 2,017	69
2,018	285
2,019	306
2,020	328
2,021	352
Thereafter	2,138
Total principal payments	3,478
Debt Principal Payments
Remaining 2,017	267,550
2,018	0
2,019	5,000
2,020	0
2,021	5,000
Thereafter	506,412
Total principal payments	$ 783,962

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 23, 2017	Dec. 31, 2016
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 379,179	$ 326,655
Current derivative assets	16,149	0
Current maturities of long-term debt	(266,748)	(9,327)
Fixed-rate long-term debt	(500,140)	(499,444)
Variable-rate long-term debt	(9,555)	(270,836)
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	379,179	326,655
Current derivative assets	0	0
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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Current derivative assets	16,149	0
Current maturities of long-term debt	(267,550)	(9,775)
Fixed-rate long-term debt	(488,688)	(474,761)
Variable-rate long-term debt	$ (10,000)	$ (271,975)

Liabilities for Disposed Oper39

Liabilities for Disposed Operations - Analysis of Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 23, 2017	Dec. 31, 2016
Accrual for Environmental Loss Contingencies [Roll Forward]
Balance, December 31, 2016	$ 152,910
Expenditures charged to liabilities	(3,419)
Increase to liabilities	2,188
Balance, September 23, 2017	151,679
Less: Current portion	(15,148)	$ (13,781)
Non-current portion	$ 136,531	$ 139,129

Liabilities for Disposed Oper40

Liabilities for Disposed Operations - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 23, 2017USD ($)
Environmental Remediation Obligations [Abstract]
Loss exposure in excess of accrual, high estimate	$ 67
Probable costs expected to be incurred, term	20 years

Accumulated Other Comprehensi41

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	$ 211,749
Tax benefit	(3,353)	$ (3,261)
Total reclassifications for the period, net of tax	6,093	5,881
Balance, end of period	234,260
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period	(110,080)	(109,620)
Balance, end of period	(103,987)	(103,739)
Amortization of losses
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassifications, gross of tax	8,989	8,676
Amortization of prior service costs
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassifications, gross of tax	572	581
Amortization of negative plan amendment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassifications, gross of tax	$ (115)	$ (115)

Earnings Per Share of Common 42

Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Earnings Per Share [Abstract]
Net income	$ 15,672	$ 21,567	$ 29,887	$ 61,800
Preferred Stock dividends	(3,441)	(1,706)	(10,057)	(1,706)
Net Income Available to Rayonier Advanced Materials Inc. Common Stockholders	$ 12,231	$ 19,861	$ 19,830	$ 60,094
Shares used for determining basic earnings per share of common stock (in shares)	42,427,437	42,360,326	42,388,762	42,266,295
Dilutive effect of:
Stock options (in shares)	0	0	0	0
Performance and restricted shares (in shares)	1,025,228	368,357	896,066	214,656
Preferred Stock (in shares)	12,582,057	6,607,423	0	2,243,565
Shares used for determining diluted earnings per share of common stock (in shares)	56,034,722	49,336,106	43,284,828	44,724,516
Basic earnings per share (in dollars per share)	$ 0.29	$ 0.46	$ 0.47	$ 1.42
Diluted earnings per share (in dollars per share)	$ 0.28	$ 0.44	$ 0.46	$ 1.38

Earnings Per Share of Common 43

Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares)	384,046	427,886	12,971,516	509,006
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares)	376,434	400,765	376,434	400,765
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares)	726	24,331	5,797	41,466
Performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares)	6,886	2,790	7,228	66,775
Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares)	0	0	12,582,057	0

Other Operating Expense, Net (D

Other Operating Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Other Income and Expenses [Abstract]
Loss on sale or disposal of property, plant and equipment	$ (6)	$ (133)	$ (653)	$ (624)
Environmental reserve adjustment	(784)	(272)	(2,188)	(2,909)
Insurance recoveries	0	500	0	897
Miscellaneous (expense) income	(81)	405	(481)	1,216
Total	$ (871)	$ 500	$ (3,322)	$ (1,420)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Income Tax Disclosure [Abstract]
Effective rate	33.00%	34.40%	37.60%	35.20%
Federal statutory rate	35.00%	35.00%	35.00%	35.00%

Incentive Stock Plans - Narrati

Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 23, 2017	Sep. 24, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost	$ 6,489	$ 4,981
Total number of performance shares adjusted (up or down)	25.00%
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Performance shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target payout percentage	0.00%
Final payout range	0.00%
Performance shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target payout percentage	200.00%
Final payout range	250.00%

Incentive Stock Plans - Schedul

Incentive Stock Plans - Schedule of Outstanding Awards (Details)	9 Months Ended
	Sep. 23, 2017$ / sharesshares
Stock Options, Options
Beginning Balance (in shares) | shares	399,012
Granted (in shares) | shares	0
Forfeited (in shares) | shares	0
Exercised or settled (in shares) | shares	0
Expired or cancelled (in shares) | shares	(22,578)
Ending Balance (in shares) | shares	376,434
Stock Options, Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 31.85
Granted (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Exercised or settled (in dollars per share) | $ / shares	0
Expired or cancelled (in dollars per share) | $ / shares	15.31
Ending balance (in dollars per share) | $ / shares	$ 27.72
Restricted stock
Awards Other than Options, Awards
Beginning Balance (in shares) | shares	667,899
Granted (in shares) | shares	284,979
Forfeited (in shares) | shares	(2,355)
Exercised or settled (in shares) | shares	(100,600)
Expired or cancelled (in shares) | shares	0
Ending Balance (in shares) | shares	849,923
Awards Other than Options, Weighted Average Grant Date Fair Value
Beginning balances (in dollars per share) | $ / shares	$ 11.97
Granted (in dollars per share) | $ / shares	13.36
Forfeited (in dollars per share) | $ / shares	9.87
Exercised or settled (in dollars per share) | $ / shares	11.78
Expired or cancelled (in dollars per share) | $ / shares	0
Ending balances (in dollars per share) | $ / shares	$ 12.46
Performance-Based Stock Units
Awards Other than Options, Awards
Beginning Balance (in shares) | shares	718,891
Granted (in shares) | shares	362,895
Forfeited (in shares) | shares	(1,101)
Exercised or settled (in shares) | shares	0
Expired or cancelled (in shares) | shares	0
Ending Balance (in shares) | shares	1,080,685
Awards Other than Options, Weighted Average Grant Date Fair Value
Beginning balances (in dollars per share) | $ / shares	$ 10.05
Granted (in dollars per share) | $ / shares	14.60
Forfeited (in dollars per share) | $ / shares	9.80
Exercised or settled (in dollars per share) | $ / shares	0
Expired or cancelled (in dollars per share) | $ / shares	0
Ending balances (in dollars per share) | $ / shares	$ 11.58
Performance-Based Restricted Stock
Awards Other than Options, Awards
Beginning Balance (in shares) | shares	128,038
Granted (in shares) | shares	0
Forfeited (in shares) | shares	0
Exercised or settled (in shares) | shares	0
Expired or cancelled (in shares) | shares	(128,038)
Ending Balance (in shares) | shares	0
Awards Other than Options, Weighted Average Grant Date Fair Value
Beginning balances (in dollars per share) | $ / shares	$ 41.05
Granted (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Exercised or settled (in dollars per share) | $ / shares	0
Expired or cancelled (in dollars per share) | $ / shares	41.05
Ending balances (in dollars per share) | $ / shares	$ 0

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	Sep. 14, 2017	Sep. 23, 2017	Sep. 24, 2016	Sep. 23, 2017	Sep. 24, 2016
Components of Net Periodic Benefit Cost
Net Income		$ 15,672	$ 21,567	$ 29,887	$ 61,800
Pension
Components of Net Periodic Benefit Cost
Service cost		1,184	1,306	3,552	3,919
Interest cost		3,318	3,979	9,954	11,937
Expected return on plan assets		(5,548)	(5,830)	(16,645)	(17,490)
Amortization of prior service cost		190	191	571	571
Amortization of losses		2,913	2,835	8,739	8,507
Amortization of negative plan amendment		0	0	0	0
Total net periodic benefit cost		2,057	2,481	6,171	7,444
Voluntary contribution	$ 10,000
Postretirement
Components of Net Periodic Benefit Cost
Service cost		236	202	707	880
Interest cost		198	218	594	653
Expected return on plan assets		0	0	0	0
Amortization of prior service cost		0	4	1	10
Amortization of losses		83	70	250	169
Amortization of negative plan amendment		(38)	(39)	(115)	(115)
Total net periodic benefit cost		$ 479	$ 455	1,437	$ 1,597
Change in Method Used to Determine Service and Interest Cost Components of Net Periodic Benefit Cost
Components of Net Periodic Benefit Cost
Net Income				$ 3,000

Contingencies Contingencies (De

Contingencies Contingencies (Details)	Jun. 30, 2017employee
Commitments and Contingencies Disclosure [Abstract]
Number of hourly employees associated with expired contracts	587

Guarantees (Details)

Guarantees (Details) $ in Thousands	Sep. 23, 2017USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Payment	$ 103,249
Carrying Amount of Liability	62,266
Standby letters of credit
Guarantor Obligations [Line Items]
Maximum Potential Payment	7,025
Carrying Amount of Liability	3,264
Surety bonds
Guarantor Obligations [Line Items]
Maximum Potential Payment	59,027
Carrying Amount of Liability	59,002
LTF project
Guarantor Obligations [Line Items]
Maximum Potential Payment	37,197
Carrying Amount of Liability	$ 0

Pending Acquisition - Narrative

Pending Acquisition - Narrative (Details) - Tembec Inc. shares in Millions	Jul. 23, 2017USD ($)shares	Aug. 17, 2017USD ($)	Jul. 23, 2017CAD / shares
Business Acquisition [Line Items]
Business combination, cash consideration per share (in CAD per share) | CAD / shares			CAD 4.75
Business combination, stock consideration per share (in shares)			0.2542
Business combination, cash consideration as percentage of total consideration			66.80%
Business combination, stock consideration as percentage of total consideration			33.20%
Business acquisition, purchase price	$ 870,000,000
Business acquisition, debt assumed	$ 481,000,000
Number of shares issued related to acquisition (in shares) | shares	8.4
Term Loan
Business Acquisition [Line Items]
Commitments to borrow to fund acquisition		$ 680,000,000

Pending Acquisition - Schedule

Pending Acquisition - Schedule of Derivatives (Details) CAD in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 23, 2017USD ($)	Sep. 24, 2016USD ($)	Sep. 23, 2017USD ($)	Sep. 24, 2016USD ($)	Sep. 23, 2017CAD	Dec. 31, 2016USD ($)	Dec. 31, 2016CAD
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) for the periods	$ 14,087	$ 0	$ 16,149	$ 0
Derivatives Not Designated as Hedging Instruments | Foreign currency collar
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount | CAD					CAD 300,000		CAD 0
Derivative Assets - fair value	16,163		16,163			$ 0
Derivative Liabilities - fair value	(14)		(14)			0
Derivatives Not Designated as Hedging Instruments | Foreign currency collar | Other non-operating income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) for the periods		$ 0		$ 0
Derivatives Not Designated as Hedging Instruments | Foreign currency collar | Other current assets
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, total	$ 16,149		$ 16,149			$ 0