Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | May 06, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAYONIER ADVANCED MATERIALS INC. | |
Trading Symbol | RYAM | |
Entity Central Index Key | 0001597672 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 49,799,883 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net Sales | $ 482,780 | $ 521,992 |
Cost of Sales | (465,585) | (441,640) |
Gross Margin | 17,195 | 80,352 |
Selling, general and administrative expenses | (28,560) | (23,192) |
Duties | (4,517) | (8,327) |
Other operating income (expense), net | (2,587) | (2,576) |
Operating Income (Loss) | (18,469) | 46,257 |
Interest expense | (14,774) | (14,994) |
Interest income and other, net | 651 | 842 |
Other components of pension and OPEB, excluding service costs | 1,467 | 2,194 |
Income (Loss) Before Income Taxes | (31,125) | 34,299 |
Income tax (expense) benefit (Note 15) | 9,075 | (9,844) |
Net Income (Loss) Attributable to Rayonier Advanced Materials Inc. | (22,050) | 24,455 |
Mandatory convertible stock dividends | (3,365) | (3,403) |
Net Income (Loss) Available to Rayonier Advanced Materials Inc. Common Stockholders | $ (25,415) | $ 21,052 |
Earnings Per Share of Common Stock (Note 12) | ||
Basic (loss) earnings per share (in dollars per share) | $ (0.52) | $ 0.41 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.52) | $ 0.38 |
Comprehensive Income (Loss): | ||
Net Income (Loss) | $ (22,050) | $ 24,455 |
Other Comprehensive Income (Loss), net of tax (Note 10) | ||
Foreign currency translation adjustments | (5,352) | 7,749 |
Unrealized gain on derivative instruments | 7,872 | 1,272 |
Net gain from pension and postretirement plans | 1,891 | 2,397 |
Total other comprehensive income | 4,411 | 11,418 |
Comprehensive Income (Loss) | $ (17,639) | $ 35,873 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 67,991 | $ 108,966 |
Accounts receivable, net (Note 2) | 201,734 | 222,377 |
Inventory (Note 3) | 346,831 | 321,377 |
Prepaid and other current assets | 68,337 | 63,372 |
Total current assets | 684,893 | 716,092 |
Property, Plant and Equipment (net of accumulated depreciation of $1,418,310 at March 30, 2019 and $1,388,234 at December 31, 2018) | 1,365,826 | 1,381,039 |
Deferred Tax Assets | 413,211 | 406,957 |
Intangible Assets, net | 50,708 | 52,460 |
Other Assets | 140,773 | 122,538 |
Total Assets | 2,655,411 | 2,679,086 |
Current Liabilities | ||
Accounts payable | 167,861 | 192,740 |
Accrued and other current liabilities (Note 5) | 134,358 | 151,356 |
Current maturities of long-term debt (Note 6) | 15,263 | 15,012 |
Current liabilities for disposed operations (Note 7) | 11,368 | 11,310 |
Total current liabilities | 328,850 | 370,418 |
Long-Term Debt (Note 6) | 1,207,667 | 1,173,157 |
Long-Term Liabilities for Disposed Operations (Note 7) | 149,477 | 149,344 |
Pension and Other Postretirement Benefits | 238,805 | 238,958 |
Deferred Tax Liabilities | 27,491 | 28,016 |
Other Non-Current Liabilities | 23,030 | 12,322 |
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 March 30, 2019 and December 31, 2018, aggregate liquidation preference $172,500 | 17 | 17 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 49,798,884 and 49,291,130 issued and outstanding, as of March 30, 2019 and December 31, 2018, respectively | 498 | 493 |
Additional paid-in capital | 397,606 | 399,490 |
Retained earnings | 433,256 | 462,568 |
Accumulated other comprehensive income (loss) (Note 10) | (151,286) | (155,697) |
Total Stockholders’ Equity | 680,091 | 706,871 |
Total Liabilities and Stockholders’ Equity | $ 2,655,411 | $ 2,679,086 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated deprecation | $ 1,418,310 | $ 1,388,234 |
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 | $ 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) | 49,798,884 | 49,291,130 |
Common stock, shares outstanding (in shares) | 49,798,884 | 49,291,130 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net Income (Loss) | $ (22,050) | $ 24,455 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 36,358 | 36,742 |
Stock-based incentive compensation expense | 3,931 | 2,480 |
Amortization of capitalized debt costs, discount and premium | 183 | 254 |
Deferred income tax | (9,572) | 8,680 |
Net periodic benefit cost of pension and postretirement plans | 1,609 | 1,647 |
Gain on foreign currency exchange | 6,230 | (4,020) |
Other | (4,221) | 1,566 |
Changes in operating assets and liabilities: | ||
Receivables | 23,314 | 2,662 |
Inventories | (25,963) | (55,433) |
Accounts payable | (19,430) | 33,809 |
Accrued liabilities | (5,068) | (5,139) |
All other operating activities | (9,366) | (10,543) |
Contributions to pension and other postretirement benefit plans | (2,406) | (2,870) |
Expenditures for disposed operations | (423) | (1,774) |
Cash Provided by (Used for) Operating Activities | (26,874) | 32,516 |
Investing Activities | ||
Capital expenditures | (31,378) | (29,002) |
Cash Used for Investing Activities | (31,378) | (29,002) |
Financing Activities | ||
Borrowings from revolving credit facility | 38,000 | 0 |
Repayments of revolving credit facility | (3,000) | 0 |
Repayment of debt | (2,340) | (1,661) |
Dividends paid on common stock | (5,095) | (3,938) |
Dividends paid on preferred stock | (3,450) | (3,450) |
Proceeds from the issuance of common stock | 0 | 121 |
Common stock repurchased | (5,810) | (3,050) |
Cash Provided by (Used for) Financing Activities | 18,305 | (11,978) |
Cash and Cash Equivalents | ||
Change in cash and cash equivalents | (39,947) | (8,464) |
Net effect of foreign exchange on cash and cash equivalents | (1,028) | 1,305 |
Balance, beginning of year | 108,966 | 96,235 |
Balance, end of period | $ 67,991 | $ 89,076 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 3 Months Ended |
Mar. 30, 2019 | |
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 generally accepted accounting principles in the United States of America (“GAAP”) 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, 2018 , as filed with the SEC on March 1, 2019. Recently Adopted Accounting Pronouncements Leases The Company adopted Accounting Standards Update 2016-02, Leases , as amended, as of January 1, 2019. The standard requires the recognition of right of use (“ROU”) assets and lease liabilities to be reported on the balance sheet, but did not change the manner in which expenses are recorded in the income statement. The Company has adopted the lease guidance using the cumulative effect adjustment approach, which requires prospective application at the adoption date and elected certain practical expedients permitted under the transition guidance. The practical expedients allow for the carry forward of the historical lease classification of existing leases and eliminates the need to reassess any lease classification of expired leases and initial direct costs. The Company also elected the short-term lease practical expedient. The Company does not record ROU assets or lease liabilities for short-term leases. In addition, the Company utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine the lease term. For leases that include other costs, such as maintenance and other services, in addition to lease cost, the Company is separating lease and non-lease components when determining the ROU assets and lease liabilities. Adoption of the new standard resulted in the recording of a ROU lease assets and lease liability of $10 million and $11 million , respectively, and the reversal of deferred rent liability balances. See Note 4 — Leases for additional information. Subsequent Events Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through May 9, 2019 , the date these financial statements were available to be issued. The following subsequent events warranting disclosure were identified. On April 12, 2019, the Company’s Board of Directors declared a second quarter cash dividend of $2.00 per share of mandatory convertible preferred stock. The preferred stock dividend will be paid on May 15, 2019 to mandatory convertible preferred stockholders of record as of May 1, 2019. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net As of March 30, 2019 and December 31, 2018 , the Company’s accounts receivable included the following: March 30, 2019 December 31, 2018 Accounts receivable, trade $ 157,592 $ 169,496 Accounts receivable, other (a) 46,212 54,943 Allowance for doubtful accounts (2,070 ) (2,062 ) Total accounts receivable, net $ 201,734 $ 222,377 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory As of March 30, 2019 and December 31, 2018 , the Company’s inventory included the following: March 30, 2019 December 31, 2018 Finished goods $ 209,483 $ 215,233 Work-in-progress 22,828 21,478 Raw materials 105,068 73,715 Manufacturing and maintenance supplies 9,452 10,951 Total inventory $ 346,831 $ 321,377 |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842, Leases, which was adopted on January 1, 2019. See Note 1 — Basis of Presentation and New Accounting Pronouncements , for additional information on the adoption. The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of March 30, 2019 , the Company’s leases have remaining lease terms of 1 year to 9 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the ROU assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restricted covenants. The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of March 30, 2019 was 5.7 percent . The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of March 30, 2019 was 7.0 percent . The Company’s operating and finance lease cost is as follows: Three Months Ended March 30, 2019 Operating Leases Operating lease expense $ 1,465 Finance Leases Amortization of ROU assets $ 129 Interest 54 Total $ 1,648 As of March 30, 2019, the weighted average remaining lease term is 4.8 years and 7.7 years for operating leases and financing leases, respectively. Cash provided by operating activities includes approximately $1.0 million from operating lease payments made during the three months ended March 30, 2019. Finance lease cash flows were immaterial during the three months ended March 30, 2019. The Company’s finance leases are included as debt and the maturities for the remainder of 2019 and the next four years and thereafter are included in Note 6 — Debt and Finance Leases . The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 30, 2019 Right-of-use assets Other assets $ 18,465 Lease liabilities, current Accrued and other current liabilities 4,256 Lease liabilities, non-current Other non-current liabilities 14,632 As of March 30, 2019, operating lease maturities for the remainder of 2019 through 2023 and thereafter are as follows: March 30, 2019 Remainder of 2019 $ 3,930 2020 4,907 2021 4,160 2022 3,900 2023 3,332 Thereafter 1,544 Total minimum lease payments $ 21,773 Less: imputed interest (2,885 ) Present value of future minimum lease payments $ 18,888 |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842, Leases, which was adopted on January 1, 2019. See Note 1 — Basis of Presentation and New Accounting Pronouncements , for additional information on the adoption. The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of March 30, 2019 , the Company’s leases have remaining lease terms of 1 year to 9 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the ROU assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restricted covenants. The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of March 30, 2019 was 5.7 percent . The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of March 30, 2019 was 7.0 percent . The Company’s operating and finance lease cost is as follows: Three Months Ended March 30, 2019 Operating Leases Operating lease expense $ 1,465 Finance Leases Amortization of ROU assets $ 129 Interest 54 Total $ 1,648 As of March 30, 2019, the weighted average remaining lease term is 4.8 years and 7.7 years for operating leases and financing leases, respectively. Cash provided by operating activities includes approximately $1.0 million from operating lease payments made during the three months ended March 30, 2019. Finance lease cash flows were immaterial during the three months ended March 30, 2019. The Company’s finance leases are included as debt and the maturities for the remainder of 2019 and the next four years and thereafter are included in Note 6 — Debt and Finance Leases . The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 30, 2019 Right-of-use assets Other assets $ 18,465 Lease liabilities, current Accrued and other current liabilities 4,256 Lease liabilities, non-current Other non-current liabilities 14,632 As of March 30, 2019, operating lease maturities for the remainder of 2019 through 2023 and thereafter are as follows: March 30, 2019 Remainder of 2019 $ 3,930 2020 4,907 2021 4,160 2022 3,900 2023 3,332 Thereafter 1,544 Total minimum lease payments $ 21,773 Less: imputed interest (2,885 ) Present value of future minimum lease payments $ 18,888 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities As of March 30, 2019 and December 31, 2018 , the Company’s accrued and other current liabilities included the following: March 30, 2019 December 31, 2018 Accrued customer incentives and prepayments $ 39,183 $ 43,907 Accrued payroll and benefits 32,334 30,695 Accrued interest 9,843 3,170 Foreign currency forward contracts 6,392 16,767 Accrued property and other taxes 11,684 10,663 Other current liabilities 34,922 46,154 Total accrued and other current liabilities $ 134,358 $ 151,356 |
Debt and Finance Leases
Debt and Finance Leases | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | Debt and Finance Leases As of March 30, 2019 and December 31, 2018 , the Company’s debt and finance leases include the following: March 30, 2019 December 31, 2018 U.S. Revolver of $100 million maturing in November 2022, $56 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00%, interest of 4.49% at March 30, 2019 $ 35,000 $ — Multi-currency Revolver of $150 million maturing in November 2022, $126 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00% at March 30, 2019 — — Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 2.00%, interest rate of 4.50% at March 30, 2019 160,000 160,000 Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 2.25% (after consideration of 0.60% patronage benefit), interest rate of 4.75% at March 30, 2019 438,875 438,875 Senior Notes due 2024 at a fixed interest rate of 5.50% 495,647 495,647 Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028, secured by certain assets of the Temiscaming plant 91,029 91,304 Other loans 3,625 3,777 Finance lease obligation 3,049 3,124 Total debt principal payments due 1,227,225 1,192,727 Less: Debt premium, original issue discount and issuance costs, net (4,295 ) (4,558 ) Total debt 1,222,930 1,188,169 Less: Current maturities of long-term debt (15,263 ) (15,012 ) Long-term debt $ 1,207,667 $ 1,173,157 As of March 30, 2019 , debt and finance lease payments due during the remainder of 2019 and the next four years and thereafter are as follows: Finance Lease Payments Debt Principal Payments Remaining 2019 $ 386 $ 10,822 2020 515 20,375 2021 515 12,515 2022 515 224,600 2023 515 10,634 Thereafter 1,503 945,230 Total principal payments $ 3,949 $ 1,224,176 Less: Imputed interest (900 ) Present value minimum finance lease payments $ 3,049 |
Liabilities for Disposed Operat
Liabilities for Disposed Operations | 3 Months Ended |
Mar. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Liabilities for Disposed Operations | Liabilities for Disposed Operations An analysis of the liabilities for disposed operations for the three months ended March 30, 2019 is as follows: Balance, December 31, 2018 $ 160,654 Increase in liabilities 271 Payments (423 ) Foreign currency adjustments 343 Balance, March 30, 2019 160,845 Less: Current portion (11,368 ) Long-term liabilities for disposed operations $ 149,477 In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy and/or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its disposed operations sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies and non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of March 30, 2019 , the Company estimates this exposure could range up to approximately $69 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. |
Derivatives Instruments
Derivatives Instruments | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | Derivative Instruments The Company’s earnings and cash flows are subject to fluctuations due to changes in interest rates and foreign currency exchange rates. The Company allows for the use of derivative financial instruments to manage interest rate and foreign currency exchange rate exposure, but does not allow derivatives to be used for speculative purposes. All derivative instruments are recognized on the consolidated balance sheets at their fair value and are either designated as a hedge of a forecasted transaction or undesignated. Changes in the fair value of a derivative designated as a hedge are recorded in other comprehensive income until earnings are affected by the hedged transaction and are then reported in current earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Interest Rate Risk The Company’s primary debt obligations utilize variable-rate LIBOR, exposing the Company to variability in interest payments due to changes in interest rates. The Company entered into interest rate swap agreements to reduce the volatility of financing costs, achieve a desired proportion of fixed-rate versus floating-rate debt and to hedge the variability in cash flows attributable to interest rate risks caused by changes in the LIBOR benchmark. The Company designated the swaps as cash flow hedges and is assessing their effectiveness using the hypothetical derivative method in conjunction with regression. Effective gains and losses, deferred to accumulated other comprehensive income (loss) (“AOCI”), are reclassified into earnings over the life of the associated hedge. Foreign Currency Exchange Rate Risk Foreign currency fluctuations affect investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, product shipments, and foreign-denominated debt. The Company is also exposed to the translation of foreign currency earnings to the U.S. dollar. Management uses foreign currency forward contracts to selectively hedge its foreign currency cash flow exposure and manage risk associated with changes in currency exchange rates. The Company’s principal foreign currency exposure is to the Canadian dollar, and to a lesser extent, the euro. The notional amounts of outstanding derivative instruments as of March 30, 2019 and December 31, 2018 are presented below. March 30, 2019 December 31, 2018 Interest rate swaps (a) $ 200,000 $ 200,000 Foreign exchange forward contracts (b) $ 371,828 $ 388,930 Foreign exchange forward contracts (c) $ 94,358 $ 125,979 (a) Maturity date of December 2020 (b) Various maturity dates through March 2020 (c) Various maturity dates in 2020, 2022 and 2028 The fair values of derivative instruments included in the consolidated balance sheet as of March 30, 2019 and December 31, 2018 are provided in the below table. See Note 9 — Fair Value Measurements for additional information related to the Company’s derivatives. Balance Sheet Location March 30, 2019 December 31, 2018 Assets: Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ 898 $ 1,194 Interest rate swaps Other assets 252 937 Foreign exchange forward contracts Other current assets 553 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 82 7 Liabilities: Derivatives designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (6,243 ) (16,408 ) Foreign exchange forward contracts Other non-current liabilities (982 ) (3,105 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (150 ) (360 ) Total derivatives $ (5,590 ) $ (17,735 ) The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income for the three months ended March 30, 2019 and March 31, 2018 are presented below. Three Months Ended March 30, 2019 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ (702 ) $ 280 Interest expense Foreign exchange forward contracts $ 2,220 $ 64 Other operating expense, net Foreign exchange forward contracts $ 4,429 $ (4,429 ) Cost of sales Foreign exchange forward contracts $ 2,359 $ 1,799 Interest income and other, net Three Months Ended March 31, 2018 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ 1,712 $ (176 ) Interest Expense Foreign exchange forward contracts $ (224 ) $ — Cost of sales The effects of derivative instruments not designated as hedging instruments on the statement of income for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative March 30, 2019 March 31, 2018 Foreign exchange forward contracts Other operating income (expense), net $ (326 ) $ (3,129 ) The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives at March 30, 2019 and December 31, 2018 are presented below: March 30, 2019 December 31, 2018 Interest rate cash flow hedges $ 897 $ 1,663 Foreign exchange cash flow hedges $ (4,647 ) $ (13,285 ) The amount of future reclassifications from AOCI will fluctuate with movements in the underlying markets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 30, 2019 and December 31, 2018 , using market information and what management believes to be appropriate valuation methodologies: March 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 67,991 $ 67,991 $ — $ 108,966 $ 108,966 $ — Interest rate swaps (a) 1,150 — 1,150 2,131 — 2,131 Foreign currency forward contracts (a) 635 — 635 7 — 7 Liabilities (b): Foreign currency forward contracts (a) 7,375 — 7,375 19,873 — 19,873 Fixed-rate long-term debt 585,649 — 563,800 585,824 — 541,267 Variable-rate long-term debt 634,232 — 637,500 599,221 — 602,652 (a) These items represent derivative instruments. (b) Liabilities exclude finance 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. Derivative instruments — The fair value is calculated based on standard valuation models using quoted prices and market observable data of similar instruments. The interest rate derivatives are based on the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap and therefore is considered Level 2. The foreign currency derivatives are contracts to buy foreign currency at a fixed rate on a specified future date. The foreign exchange rate is observable for the full term of the swap and is therefore considered Level 2. See Note 8 — Derivative Instruments for additional information related to the derivative instruments. 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 Income (Loss) | 3 Months Ended |
Mar. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of AOCI are as follows: Three Months Ended March 30, 2019 March 31, 2018 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (135,590 ) $ (81,638 ) Reclassifications to earnings: (a) Amortization of losses 2,611 2,969 Amortization of prior service costs 104 143 Amortization of negative plan amendment — (38 ) Income tax on reclassifications (629 ) (677 ) Foreign currency adjustments (195 ) — Net comprehensive gain (loss) on employee benefit plans, net of tax 1,891 2,397 Balance, end of quarter (133,699 ) (79,241 ) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (11,622 ) 619 Other comprehensive income before reclassifications 8,306 1,488 Income tax on other comprehensive income (1,885 ) (353 ) Reclassifications to earnings: (b) Interest rate contracts (280 ) 176 Foreign exchange contracts 2,566 — Income tax on reclassifications (835 ) (39 ) Net comprehensive gain (loss) on derivative instruments, net of tax 7,872 1,272 Balance, end of quarter (3,750 ) 1,891 Foreign currency translation adjustments: Balance, beginning of year (8,485 ) 4,868 Foreign currency translation adjustment, net of tax of $0 and $0 (5,352 ) 7,749 Balance, end of quarter (13,837 ) 12,617 Accumulated other comprehensive income (loss), end of quarter $ (151,286 ) $ (64,733 ) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 14 — Employee Benefit Plans for additional information. (b) Reclassifications of interest rate contracts are recorded in interest expense. Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 8 — Derivative Instruments for additional information. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholders' Equity An analysis of stockholders’ equity for the three months ended March 30, 2019 and March 31, 2018 is shown below (share amounts not in thousands): Common Stock Preferred Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Par Value Shares Par Value Balance, December 31, 2018 49,291,130 $ 493 1,725,000 $ 17 $ 399,490 $ 462,568 $ (155,697 ) $ 706,871 Net income (loss) — — — — — (22,050 ) — (22,050 ) Other comprehensive income (loss), net of tax — — — — — — 4,411 4,411 Issuance of common stock under incentive stock plans 928,601 9 — — (9 ) — — — Stock-based compensation — — — — 3,931 — — 3,931 Repurchase of common stock (420,847 ) (4 ) — — (5,806 ) — — (5,810 ) Common stock dividends ($0.07 per share) — — — — — (3,812 ) — (3,812 ) Preferred stock dividends ($2.00 per share) — — — — — (3,450 ) — (3,450 ) Balance, March 30, 2019 49,798,884 $ 498 1,725,000 $ 17 $ 397,606 $ 433,256 $ (151,286 ) $ 680,091 Balance, December 31, 2017 51,717,142 $ 517 1,725,000 $ 17 $ 392,353 $ 377,020 $ (76,151 ) $ 693,756 Net income (loss) — $ — — $ — $ — $ 24,455 $ — $ 24,455 Other comprehensive income (loss), net of tax — — — — — — 11,418 11,418 Issuance of common stock under incentive stock plans 291,689 3 — — 118 — — 121 Stock-based compensation — — — — 2,480 — — 2,480 Repurchase of common shares (155,861 ) (1 ) — — (3,049 ) — — (3,050 ) Common stock dividends ($0.07 per share) — — — — — (3,736 ) — (3,736 ) Preferred stock dividends ($2.00 per share) — — — — — (3,450 ) — (3,450 ) Balance, March 31, 2018 51,852,970 $ 519 1,725,000 $ 17 $ 391,902 $ 394,289 $ (64,733 ) $ 721,994 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 $167 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, through 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. Common Stock Buyback On January 29, 2018, the Board of Directors authorized a share buyback program pursuant to which the Company may, from time to time, purchase shares of its common stock with an aggregate purchase price of up to $100 million . During the three months ended March 30, 2019 , the Company did not repurchase any common shares under this buyback program. As of March 30, 2019, there was approximately $60 million of share repurchase authorization remaining under the program. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 30, 2019 March 31, 2018 Net income (loss) $ (22,050 ) $ 24,455 Preferred Stock dividends (3,365 ) (3,403 ) Net income (loss) available for common stockholders $ (25,415 ) $ 21,052 Shares used for determining basic earnings per share of common stock 48,986,272 51,127,726 Dilutive effect of: Stock options — 5,669 Performance and restricted stock — 1,472,839 Preferred stock — 11,371,718 Shares used for determining diluted earnings per share of common stock 48,986,272 63,977,952 Basic (loss) earnings per share (not in thousands) $ (0.52 ) $ 0.41 Diluted (loss) earnings per share (not in thousands) $ (0.52 ) $ 0.38 Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended March 30, 2019 March 31, 2018 Stock options 259,088 288,464 Performance and restricted stock 1,959,123 363 Preferred stock 13,078,089 — Total anti-dilutive instruments 15,296,300 288,827 |
Incentive Stock Plans
Incentive Stock Plans | 3 Months Ended |
Mar. 30, 2019 | |
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 three months ended March 30, 2019 and March 31, 2018 was $4 million and $2 million , respectively. The Company made new grants of restricted stock units and performance-based stock units to certain employees during the first three months of 2019 . The 2019 restricted stock unit awards vest over three years. The 2019 performance-based stock unit awards are measured against an internal return on invested capital target. Depending on performance against the target, the awards will pay out in common stock amounts between 0 and 200 percent of the performance-based stock units awarded. The total number of common stock awards granted 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 could result in a final common stock issuance of 0 to 250 percent of the performance-based stock units awarded. In March 2019 , the performance-based share units granted in 2016 were settled at an average of 246 percent of the performance-based stock units awarded, resulting in the issuance of 923,211 shares of common stock. The following table summarizes the activity on the Company’s incentive stock awards for the three months ended March 30, 2019 : Stock Options Restricted Stock and Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 286,613 $ 34.23 917,098 $ 13.71 1,325,894 $ 14.69 Granted — — 258,317 14.10 372,858 15.47 Forfeited — — — — — — Exercised or settled — — (394,877 ) 9.46 (520,167 ) 7.80 Expired or cancelled (27,525 ) 18.09 — — — — Outstanding at March 30, 2019 259,088 $ 35.95 780,538 $ 15.99 1,178,585 $ 17.98 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has defined benefit pension and other postretirement plans covering certain union and non-union employees, primarily in the U.S., Canada and France. The defined benefit pension plans are closed to new participants. Employee defined 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. The components of net periodic benefit costs from defined benefit plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Service cost $ 2,611 $ 3,099 $ 465 $ 742 Interest cost 9,624 8,255 360 335 Expected return on plan assets (14,166 ) (13,858 ) — — Amortization of prior service cost 142 143 (38 ) — Amortization of losses 2,591 2,912 20 57 Amortization of negative plan amendment — — — (38 ) Total net periodic benefit cost $ 802 $ 551 $ 807 $ 1,096 Service cost is included in cost of sales and selling, general and administrative expenses in the statements of income, as appropriate. Interest cost, expected return on plan assets, amortization of prior service cost, amortization of losses and amortization of negative plan amendment are included in other components of net periodic benefit costs on the condensed consolidated statement of income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended March 30, 2019 was a benefit of (29) percent , compared with an expense of 29 percent for the three months ended March 31, 2018 . The current quarter effective rate differs from the federal statutory rate of 21 percent primarily due to tax credits and excess tax deductions on vested stock compensation, partially offset by different statutory tax rates of foreign operations and nondeductible executive compensation. There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2018 . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has currently divided its operations into five reportable segments: High Purity Cellulose, Forest Products, Pulp, Paper and Corporate. The Corporate operations consist primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. The Company does not currently allocate the cost of maintaining these support functions to its operating units. The Company evaluates the performance of its segments based on operating income. Intersegment sales consist primarily of wood chips sales from Forest Products to High Purity Cellulose, Pulp and Paper segments and high-yield pulp sales from Pulp to Paper. Intersegment sales prices are at rates that approximate market. Net sales, disaggregated by product-line, was comprised of the following: Three Months Ended March 30, 2019 March 31, 2018 High Purity Cellulose Cellulose Specialties $ 192,104 $ 209,127 Commodity Products 73,956 42,747 Other sales (a) 19,949 30,509 Total High Purity Cellulose 286,009 282,383 Forest Products Lumber 57,352 78,380 Other sales (b) 17,827 20,806 Total Forest Products 75,179 99,186 Pulp High-yield pulp 69,679 85,155 Paper Paperboard 47,337 47,791 Newsprint 22,636 27,516 Total Paper 69,973 75,307 Eliminations (18,060 ) (20,039 ) Total net sales $ 482,780 $ 521,992 (a) Other sales include sales of electricity, resins, lignin and other by-products to third-parties (b) Other sales include sales of logs, wood chips and other by-products to other segments and third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended March 30, 2019 March 31, 2018 High Purity Cellulose $ (2,793 ) $ 21,311 Forest Products (5,248 ) 10,637 Pulp 10,422 22,711 Paper (1,765 ) 2,926 Corporate (19,085 ) (11,328 ) Total operating income (loss) $ (18,469 ) $ 46,257 Identifiable assets by segment were as follows: March 30, 2019 December 31, 2018 High Purity Cellulose $ 1,616,441 $ 1,643,092 Forest Products 199,481 166,801 Pulp 102,655 103,308 Paper 245,059 240,427 Corporate 491,775 525,458 Total identifiable assets $ 2,655,411 $ 2,679,086 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table includes the material changes to the contractual financial obligations presented in Note 20 — Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. The changes in the future minimum payments under these obligations are presented as of March 30, 2019 . The payment amounts are estimates and may vary based on changes in actual price and volumes terms. Purchase Obligations Remainder of 2019 $ 148 2020 1,557 2021 1,335 2022 1,150 2023 676 Thereafter 5,081 Total $ 9,947 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. As of March 30, 2019 , collective bargaining agreements covering less than 25 unionized employees in Canada had expired. The Fernandina mill collective bargaining agreement expires in the second quarter of 2019 and is currently in negotiations. In all cases, the parties have continued to work under the terms of the expired contracts while negotiations continue. While there can be no assurances, the Company expects to reach agreements with its unions. However, a work stoppage could have a material adverse effect on its business, results of operations and financial condition. Guarantees and Other The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 30, 2019 , the Company had net exposure of $37 million from various standby letters of credit, primarily for financial assurance relating to environmental remediation, credit support for natural gas and electricity purchases, and guarantees related to foreign retirement plan obligations. These standby letters of credit represent a contingent liability. The Company would only be liable upon its default on the related payment obligations. The letters of credit have various expiration dates and will be renewed as required. The Company had surety bonds of $84 million as of March 30, 2019 , primarily to comply with financial assurance requirements relating to environmental remediation and post closure care, to provide collateral for the Company’s workers’ compensation program, and to guarantee taxes and duties for products shipped internationally. These surety bonds expire at various dates and are expected to be renewed annually as required. LignoTech Florida, a venture in which the Company owns 45 percent and its venture partner Borregaard ASA owns 55 percent , entered into a construction contract to build its lignin manufacturing facility and financing agreements to fund the construction of the facility, which was completed in the second quarter of 2018. The Company is a guarantor under both the construction and financing agreements. 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 remaining guarantee related to LignoTech Florida at March 30, 2019 was $36 million . The Company has not recorded any liabilities for these financial guarantees in its consolidated balance sheets, either because the Company has recorded the underlying liability associated with the guarantee or the guarantee is dependent on the Company’s own performance and, therefore, is not subject to the measurement requirements or because the Company has calculated the estimated fair value of the guarantee and determined it to be immaterial based upon the current facts and circumstances that would trigger a payment obligation. It is not possible to determine the maximum potential amount of the liability under these potential obligations due to the unique set of facts and circumstances likely to be involved with each provision. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flows Information | 3 Months Ended |
Mar. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows Information | Supplemental Disclosures of Cash Flows Information Supplemental disclosures of cash flows information were comprised of the following for the three months ended: March 30, 2019 March 31, 2018 Cash paid (received) during the period: Interest $ 8,234 $ 7,678 Income taxes $ 90 $ 6,567 Non-cash investing and financing activities: Capital assets purchased on account $ 11,807 $ 14,053 |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
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 generally accepted accounting principles in the United States of America (“GAAP”) 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, 2018 , as filed with the SEC on March 1, 2019. |
New or Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases The Company adopted Accounting Standards Update 2016-02, Leases , as amended, as of January 1, 2019. The standard requires the recognition of right of use (“ROU”) assets and lease liabilities to be reported on the balance sheet, but did not change the manner in which expenses are recorded in the income statement. The Company has adopted the lease guidance using the cumulative effect adjustment approach, which requires prospective application at the adoption date and elected certain practical expedients permitted under the transition guidance. The practical expedients allow for the carry forward of the historical lease classification of existing leases and eliminates the need to reassess any lease classification of expired leases and initial direct costs. The Company also elected the short-term lease practical expedient. The Company does not record ROU assets or lease liabilities for short-term leases. In addition, the Company utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine the lease term. For leases that include other costs, such as maintenance and other services, in addition to lease cost, the Company is separating lease and non-lease components when determining the ROU assets and lease liabilities. Adoption of the new standard resulted in the recording of a ROU lease assets and lease liability of $10 million and $11 million , respectively, and the reversal of deferred rent liability balances. See Note 4 — Leases for additional information. |
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. Derivative instruments — The fair value is calculated based on standard valuation models using quoted prices and market observable data of similar instruments. The interest rate derivatives are based on the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap and therefore is considered Level 2. The foreign currency derivatives are contracts to buy foreign currency at a fixed rate on a specified future date. The foreign exchange rate is observable for the full term of the swap and is therefore considered Level 2. See Note 8 — Derivative Instruments for additional information related to the derivative instruments. 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. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of March 30, 2019 and December 31, 2018 , the Company’s accounts receivable included the following: March 30, 2019 December 31, 2018 Accounts receivable, trade $ 157,592 $ 169,496 Accounts receivable, other (a) 46,212 54,943 Allowance for doubtful accounts (2,070 ) (2,062 ) Total accounts receivable, net $ 201,734 $ 222,377 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 30, 2019 and December 31, 2018 , the Company’s inventory included the following: March 30, 2019 December 31, 2018 Finished goods $ 209,483 $ 215,233 Work-in-progress 22,828 21,478 Raw materials 105,068 73,715 Manufacturing and maintenance supplies 9,452 10,951 Total inventory $ 346,831 $ 321,377 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The Company’s operating and finance lease cost is as follows: Three Months Ended March 30, 2019 Operating Leases Operating lease expense $ 1,465 Finance Leases Amortization of ROU assets $ 129 Interest 54 Total $ 1,648 |
Balance Sheet Components | The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 30, 2019 Right-of-use assets Other assets $ 18,465 Lease liabilities, current Accrued and other current liabilities 4,256 Lease liabilities, non-current Other non-current liabilities 14,632 |
Operating Lease Maturity | As of March 30, 2019, operating lease maturities for the remainder of 2019 through 2023 and thereafter are as follows: March 30, 2019 Remainder of 2019 $ 3,930 2020 4,907 2021 4,160 2022 3,900 2023 3,332 Thereafter 1,544 Total minimum lease payments $ 21,773 Less: imputed interest (2,885 ) Present value of future minimum lease payments $ 18,888 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | As of March 30, 2019 and December 31, 2018 , the Company’s accrued and other current liabilities included the following: March 30, 2019 December 31, 2018 Accrued customer incentives and prepayments $ 39,183 $ 43,907 Accrued payroll and benefits 32,334 30,695 Accrued interest 9,843 3,170 Foreign currency forward contracts 6,392 16,767 Accrued property and other taxes 11,684 10,663 Other current liabilities 34,922 46,154 Total accrued and other current liabilities $ 134,358 $ 151,356 |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of March 30, 2019 and December 31, 2018 , the Company’s debt and finance leases include the following: March 30, 2019 December 31, 2018 U.S. Revolver of $100 million maturing in November 2022, $56 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00%, interest of 4.49% at March 30, 2019 $ 35,000 $ — Multi-currency Revolver of $150 million maturing in November 2022, $126 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00% at March 30, 2019 — — Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 2.00%, interest rate of 4.50% at March 30, 2019 160,000 160,000 Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 2.25% (after consideration of 0.60% patronage benefit), interest rate of 4.75% at March 30, 2019 438,875 438,875 Senior Notes due 2024 at a fixed interest rate of 5.50% 495,647 495,647 Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028, secured by certain assets of the Temiscaming plant 91,029 91,304 Other loans 3,625 3,777 Finance lease obligation 3,049 3,124 Total debt principal payments due 1,227,225 1,192,727 Less: Debt premium, original issue discount and issuance costs, net (4,295 ) (4,558 ) Total debt 1,222,930 1,188,169 Less: Current maturities of long-term debt (15,263 ) (15,012 ) Long-term debt $ 1,207,667 $ 1,173,157 |
Schedule of Maturities of Long-term Debt | As of March 30, 2019 , debt and finance lease payments due during the remainder of 2019 and the next four years and thereafter are as follows: Finance Lease Payments Debt Principal Payments Remaining 2019 $ 386 $ 10,822 2020 515 20,375 2021 515 12,515 2022 515 224,600 2023 515 10,634 Thereafter 1,503 945,230 Total principal payments $ 3,949 $ 1,224,176 Less: Imputed interest (900 ) Present value minimum finance lease payments $ 3,049 |
Liabilities for Disposed Oper_2
Liabilities for Disposed Operations (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Liabilities for Disposed Operations | An analysis of the liabilities for disposed operations for the three months ended March 30, 2019 is as follows: Balance, December 31, 2018 $ 160,654 Increase in liabilities 271 Payments (423 ) Foreign currency adjustments 343 Balance, March 30, 2019 160,845 Less: Current portion (11,368 ) Long-term liabilities for disposed operations $ 149,477 |
Derivatives Instruments (Tables
Derivatives Instruments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts of outstanding derivative instruments as of March 30, 2019 and December 31, 2018 are presented below. March 30, 2019 December 31, 2018 Interest rate swaps (a) $ 200,000 $ 200,000 Foreign exchange forward contracts (b) $ 371,828 $ 388,930 Foreign exchange forward contracts (c) $ 94,358 $ 125,979 (a) Maturity date of December 2020 (b) Various maturity dates through March 2020 (c) Various maturity dates in 2020, 2022 and 2028 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivative instruments included in the consolidated balance sheet as of March 30, 2019 and December 31, 2018 are provided in the below table. See Note 9 — Fair Value Measurements for additional information related to the Company’s derivatives. Balance Sheet Location March 30, 2019 December 31, 2018 Assets: Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ 898 $ 1,194 Interest rate swaps Other assets 252 937 Foreign exchange forward contracts Other current assets 553 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 82 7 Liabilities: Derivatives designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (6,243 ) (16,408 ) Foreign exchange forward contracts Other non-current liabilities (982 ) (3,105 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (150 ) (360 ) Total derivatives $ (5,590 ) $ (17,735 ) |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income for the three months ended March 30, 2019 and March 31, 2018 are presented below. Three Months Ended March 30, 2019 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ (702 ) $ 280 Interest expense Foreign exchange forward contracts $ 2,220 $ 64 Other operating expense, net Foreign exchange forward contracts $ 4,429 $ (4,429 ) Cost of sales Foreign exchange forward contracts $ 2,359 $ 1,799 Interest income and other, net Three Months Ended March 31, 2018 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ 1,712 $ (176 ) Interest Expense Foreign exchange forward contracts $ (224 ) $ — Cost of sales |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of derivative instruments not designated as hedging instruments on the statement of income for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative March 30, 2019 March 31, 2018 Foreign exchange forward contracts Other operating income (expense), net $ (326 ) $ (3,129 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives at March 30, 2019 and December 31, 2018 are presented below: March 30, 2019 December 31, 2018 Interest rate cash flow hedges $ 897 $ 1,663 Foreign exchange cash flow hedges $ (4,647 ) $ (13,285 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at March 30, 2019 and December 31, 2018 , using market information and what management believes to be appropriate valuation methodologies: March 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 67,991 $ 67,991 $ — $ 108,966 $ 108,966 $ — Interest rate swaps (a) 1,150 — 1,150 2,131 — 2,131 Foreign currency forward contracts (a) 635 — 635 7 — 7 Liabilities (b): Foreign currency forward contracts (a) 7,375 — 7,375 19,873 — 19,873 Fixed-rate long-term debt 585,649 — 563,800 585,824 — 541,267 Variable-rate long-term debt 634,232 — 637,500 599,221 — 602,652 (a) These items represent derivative instruments. (b) Liabilities exclude finance lease obligation. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of AOCI are as follows: Three Months Ended March 30, 2019 March 31, 2018 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (135,590 ) $ (81,638 ) Reclassifications to earnings: (a) Amortization of losses 2,611 2,969 Amortization of prior service costs 104 143 Amortization of negative plan amendment — (38 ) Income tax on reclassifications (629 ) (677 ) Foreign currency adjustments (195 ) — Net comprehensive gain (loss) on employee benefit plans, net of tax 1,891 2,397 Balance, end of quarter (133,699 ) (79,241 ) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (11,622 ) 619 Other comprehensive income before reclassifications 8,306 1,488 Income tax on other comprehensive income (1,885 ) (353 ) Reclassifications to earnings: (b) Interest rate contracts (280 ) 176 Foreign exchange contracts 2,566 — Income tax on reclassifications (835 ) (39 ) Net comprehensive gain (loss) on derivative instruments, net of tax 7,872 1,272 Balance, end of quarter (3,750 ) 1,891 Foreign currency translation adjustments: Balance, beginning of year (8,485 ) 4,868 Foreign currency translation adjustment, net of tax of $0 and $0 (5,352 ) 7,749 Balance, end of quarter (13,837 ) 12,617 Accumulated other comprehensive income (loss), end of quarter $ (151,286 ) $ (64,733 ) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 14 — Employee Benefit Plans for additional information. (b) Reclassifications of interest rate contracts are recorded in interest expense. Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 8 — Derivative Instruments for additional information. |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholder's Equity (Deficit) | An analysis of stockholders’ equity for the three months ended March 30, 2019 and March 31, 2018 is shown below (share amounts not in thousands): Common Stock Preferred Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Par Value Shares Par Value Balance, December 31, 2018 49,291,130 $ 493 1,725,000 $ 17 $ 399,490 $ 462,568 $ (155,697 ) $ 706,871 Net income (loss) — — — — — (22,050 ) — (22,050 ) Other comprehensive income (loss), net of tax — — — — — — 4,411 4,411 Issuance of common stock under incentive stock plans 928,601 9 — — (9 ) — — — Stock-based compensation — — — — 3,931 — — 3,931 Repurchase of common stock (420,847 ) (4 ) — — (5,806 ) — — (5,810 ) Common stock dividends ($0.07 per share) — — — — — (3,812 ) — (3,812 ) Preferred stock dividends ($2.00 per share) — — — — — (3,450 ) — (3,450 ) Balance, March 30, 2019 49,798,884 $ 498 1,725,000 $ 17 $ 397,606 $ 433,256 $ (151,286 ) $ 680,091 Balance, December 31, 2017 51,717,142 $ 517 1,725,000 $ 17 $ 392,353 $ 377,020 $ (76,151 ) $ 693,756 Net income (loss) — $ — — $ — $ — $ 24,455 $ — $ 24,455 Other comprehensive income (loss), net of tax — — — — — — 11,418 11,418 Issuance of common stock under incentive stock plans 291,689 3 — — 118 — — 121 Stock-based compensation — — — — 2,480 — — 2,480 Repurchase of common shares (155,861 ) (1 ) — — (3,049 ) — — (3,050 ) Common stock dividends ($0.07 per share) — — — — — (3,736 ) — (3,736 ) Preferred stock dividends ($2.00 per share) — — — — — (3,450 ) — (3,450 ) Balance, March 31, 2018 51,852,970 $ 519 1,725,000 $ 17 $ 391,902 $ 394,289 $ (64,733 ) $ 721,994 |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 30, 2019 March 31, 2018 Net income (loss) $ (22,050 ) $ 24,455 Preferred Stock dividends (3,365 ) (3,403 ) Net income (loss) available for common stockholders $ (25,415 ) $ 21,052 Shares used for determining basic earnings per share of common stock 48,986,272 51,127,726 Dilutive effect of: Stock options — 5,669 Performance and restricted stock — 1,472,839 Preferred stock — 11,371,718 Shares used for determining diluted earnings per share of common stock 48,986,272 63,977,952 Basic (loss) earnings per share (not in thousands) $ (0.52 ) $ 0.41 Diluted (loss) earnings per share (not in thousands) $ (0.52 ) $ 0.38 |
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 March 30, 2019 March 31, 2018 Stock options 259,088 288,464 Performance and restricted stock 1,959,123 363 Preferred stock 13,078,089 — Total anti-dilutive instruments 15,296,300 288,827 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 three months ended March 30, 2019 : Stock Options Restricted Stock and Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 286,613 $ 34.23 917,098 $ 13.71 1,325,894 $ 14.69 Granted — — 258,317 14.10 372,858 15.47 Forfeited — — — — — — Exercised or settled — — (394,877 ) 9.46 (520,167 ) 7.80 Expired or cancelled (27,525 ) 18.09 — — — — Outstanding at March 30, 2019 259,088 $ 35.95 780,538 $ 15.99 1,178,585 $ 17.98 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Postretirement Benefit Costs | The components of net periodic benefit costs from defined benefit plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Service cost $ 2,611 $ 3,099 $ 465 $ 742 Interest cost 9,624 8,255 360 335 Expected return on plan assets (14,166 ) (13,858 ) — — Amortization of prior service cost 142 143 (38 ) — Amortization of losses 2,591 2,912 20 57 Amortization of negative plan amendment — — — (38 ) Total net periodic benefit cost $ 802 $ 551 $ 807 $ 1,096 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Net sales, disaggregated by product-line, was comprised of the following: Three Months Ended March 30, 2019 March 31, 2018 High Purity Cellulose Cellulose Specialties $ 192,104 $ 209,127 Commodity Products 73,956 42,747 Other sales (a) 19,949 30,509 Total High Purity Cellulose 286,009 282,383 Forest Products Lumber 57,352 78,380 Other sales (b) 17,827 20,806 Total Forest Products 75,179 99,186 Pulp High-yield pulp 69,679 85,155 Paper Paperboard 47,337 47,791 Newsprint 22,636 27,516 Total Paper 69,973 75,307 Eliminations (18,060 ) (20,039 ) Total net sales $ 482,780 $ 521,992 (a) Other sales include sales of electricity, resins, lignin and other by-products to third-parties (b) Other sales include sales of logs, wood chips and other by-products to other segments and third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended March 30, 2019 March 31, 2018 High Purity Cellulose $ (2,793 ) $ 21,311 Forest Products (5,248 ) 10,637 Pulp 10,422 22,711 Paper (1,765 ) 2,926 Corporate (19,085 ) (11,328 ) Total operating income (loss) $ (18,469 ) $ 46,257 Identifiable assets by segment were as follows: March 30, 2019 December 31, 2018 High Purity Cellulose $ 1,616,441 $ 1,643,092 Forest Products 199,481 166,801 Pulp 102,655 103,308 Paper 245,059 240,427 Corporate 491,775 525,458 Total identifiable assets $ 2,655,411 $ 2,679,086 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligations | The following table includes the material changes to the contractual financial obligations presented in Note 20 — Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. The changes in the future minimum payments under these obligations are presented as of March 30, 2019 . The payment amounts are estimates and may vary based on changes in actual price and volumes terms. Purchase Obligations Remainder of 2019 $ 148 2020 1,557 2021 1,335 2022 1,150 2023 676 Thereafter 5,081 Total $ 9,947 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flows Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flows information were comprised of the following for the three months ended: March 30, 2019 March 31, 2018 Cash paid (received) during the period: Interest $ 8,234 $ 7,678 Income taxes $ 90 $ 6,567 Non-cash investing and financing activities: Capital assets purchased on account $ 11,807 $ 14,053 |
Basis of Presentation and New_3
Basis of Presentation and New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 12, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 18,465 | |||
Present value of future minimum lease payments | $ 18,888 | |||
Convertible preferred stock, dividend declared (in dollars per share) | $ 2 | $ 2 | ||
Subsequent Event | Convertible Preferred Stock | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Convertible preferred stock, dividend declared (in dollars per share) | $ 2 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 10,000 | |||
Present value of future minimum lease payments | $ 11,000 |
Accounts Receivable, Net - Sch
Accounts Receivable, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (2,070) | $ (2,062) |
Total accounts receivable, net | 201,734 | 222,377 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | 157,592 | 169,496 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | $ 46,212 | $ 54,943 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 209,483 | $ 215,233 |
Work-in-progress | 22,828 | 21,478 |
Raw materials | 105,068 | 73,715 |
Manufacturing and maintenance supplies | 9,452 | 10,951 |
Total inventory | $ 346,831 | $ 321,377 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term, operating leases | 4 years 10 months |
Weighted average remaining lease term, finance leases | 7 years 8 months |
Operating lease payments | $ 1 |
Operating lease, weighted average discount rate | 5.70% |
Finance lease, weighted average discount rate | 7.00% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 9 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Operating Leases | |
Operating lease expense | $ 1,465 |
Finance Leases | |
Amortization of ROU assets | 129 |
Interest | 54 |
Total | $ 1,648 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 18,465 |
Lease liabilities, current | 4,256 |
Lease liabilities, non-current | $ 14,632 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 3,930 |
2020 | 4,907 |
2021 | 4,160 |
2022 | 3,900 |
2023 | 3,332 |
Thereafter | 1,544 |
Total minimum lease payments | 21,773 |
Less: imputed interest | (2,885) |
Present value of future minimum lease payments | $ 18,888 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued customer incentives and prepayments | $ 39,183 | $ 43,907 |
Accrued payroll and benefits | 32,334 | 30,695 |
Accrued interest | 9,843 | 3,170 |
Foreign currency forward contracts | 6,392 | 16,767 |
Accrued property and other taxes | 11,684 | 10,663 |
Other current liabilities | 34,922 | 46,154 |
Total accrued and other current liabilities | $ 134,358 | $ 151,356 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt, gross | $ 1,224,176,000 | |
Finance lease obligation | 3,049,000 | |
Finance lease obligation | $ 3,124,000 | |
Total debt principal payments due | 1,227,225,000 | 1,192,727,000 |
Less: Debt premium, original issue discount and issuance costs, net | (4,295,000) | (4,558,000) |
Total debt | 1,222,930,000 | 1,188,169,000 |
Less: Current maturities of long-term debt | (15,263,000) | (15,012,000) |
Long-term debt | 1,207,667,000 | 1,173,157,000 |
Credit Facility | U.S. Revolver of $100 million maturing in November 2022, $56 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00%, interest of 4.49% at March 30, 2019 | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 100,000,000 | |
Borrowing capacity after outstanding letters of credit | 56,000,000 | |
Debt, gross | $ 35,000,000 | 0 |
Credit Facility | U.S. Revolver of $100 million maturing in November 2022, $56 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00%, interest of 4.49% at March 30, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.00% | |
Interest rate | 4.49% | |
Credit Facility | Multi-currency Revolver of $150 million maturing in November 2022, $126 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00% at March 30, 2019 | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 150,000,000 | |
Borrowing capacity after outstanding letters of credit | 126,000,000 | |
Debt, gross | $ 0 | 0 |
Credit Facility | Multi-currency Revolver of $150 million maturing in November 2022, $126 million available after taking into account outstanding letters of credit, bearing interest at LIBOR plus 2.00% at March 30, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.00% | |
Term Loan Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 2.00%, interest rate of 4.50% at March 30, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Debt, gross | $ 160,000,000 | 160,000,000 |
Term Loan Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 2.00%, interest rate of 4.50% at March 30, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.25% | |
Term Loan Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 2.25% (after consideration of 0.60% patronage benefit), interest rate of 4.75% at March 30, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Patronage benefit | 0.60% | |
Debt, gross | $ 438,875,000 | 438,875,000 |
Term Loan Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 2.25% (after consideration of 0.60% patronage benefit), interest rate of 4.75% at March 30, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread after patronage benefit | 1.65% | |
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.50% | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 5.50% | |
Debt, gross | $ 495,647,000 | 495,647,000 |
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028, secured by certain assets of the Temiscaming plant | ||
Debt Instrument [Line Items] | ||
Debt, gross | 91,029,000 | 91,304,000 |
Loans | Other loans | ||
Debt Instrument [Line Items] | ||
Debt, gross | $ 3,625,000 | $ 3,777,000 |
Minimum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028, secured by certain assets of the Temiscaming plant | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 5.50% | |
Maximum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028, secured by certain assets of the Temiscaming plant | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 6.86% |
Debt and Finance Leases - Sched
Debt and Finance Leases - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Finance Lease Payments | |
Remaining 2019 | $ 386 |
2020 | 515 |
2021 | 515 |
2022 | 515 |
2023 | 515 |
Thereafter | 1,503 |
Total principal payments | 3,949 |
Less: Imputed interest | (900) |
Present value minimum finance lease payments | 3,049 |
Debt Principal Payments | |
Remaining 2019 | 10,822 |
2020 | 20,375 |
2021 | 12,515 |
2022 | 224,600 |
2023 | 10,634 |
Thereafter | 945,230 |
Total principal payments | $ 1,224,176 |
Liabilities for Disposed Oper_3
Liabilities for Disposed Operations - Analysis of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance, December 31, 2018 | $ 160,654 | |
Increase to liabilities | 271 | |
Payments | (423) | |
Foreign currency adjustments | 343 | |
Balance, March 30, 2019 | 160,845 | |
Less: Current portion | (11,368) | $ (11,310) |
Long-term liabilities for disposed operations | $ 149,477 | $ 149,344 |
Liabilities for Disposed Oper_4
Liabilities for Disposed Operations - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Environmental Remediation Obligations [Abstract] | |
Loss exposure in excess of accrual, high estimate | $ 69 |
Probable costs expected to be incurred, term | 20 years |
Derivatives Instruments - Nota
Derivatives Instruments - Notational Amounts and Maturity Dates of Derivative Instruments (Details) - USD ($) | Mar. 30, 2019 | Dec. 31, 2018 |
Interest Rate Swap Maturing December 2020 | Interest rate swaps | ||
Derivative [Line Items] | ||
Notational amount | $ 200,000,000 | $ 200,000,000 |
Foreign Exchange Forward Contract Maturing Various Dates Through March 2020 | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notational amount | 371,828,447 | 388,930,000 |
Foreign Exchange Forward Contract Maturing Various Date In 2020, 2022, 2028 | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notational amount | $ 94,357,927 | $ 125,979,000 |
Derivatives Instruments - Fair
Derivatives Instruments - Fair Value of Derivative Instruments Included in Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (5,590) | $ (17,735) |
Interest rate swaps | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 898 | 1,194 |
Interest rate swaps | Derivatives designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 252 | 937 |
Foreign exchange forward contracts | Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 553 | 0 |
Foreign exchange forward contracts | Derivatives designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | (6,243) | (16,408) |
Foreign exchange forward contracts | Derivatives designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | (982) | (3,105) |
Foreign exchange forward contracts | Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 82 | 7 |
Foreign exchange forward contracts | Derivatives not designated as hedging instruments | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ (150) | $ (360) |
Derivatives Instruments - Deriv
Derivatives Instruments - Derivative Instruments Classified as Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Interest expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | $ (702) | $ 1,712 |
Gain (Loss) Reclassified from AOCI into Income | 280 | (176) |
Other operating income (expense), net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 2,220 | |
Gain (Loss) Reclassified from AOCI into Income | 64 | |
Cost of sales | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 4,429 | (224) |
Gain (Loss) Reclassified from AOCI into Income | (4,429) | $ 0 |
Interest income and other, net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 2,359 | |
Gain (Loss) Reclassified from AOCI into Income | $ 1,799 |
Derivatives Instruments - Der_2
Derivatives Instruments - Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Other operating income (expense), net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | $ (326) | $ (3,129) |
Derivatives Instruments - After
Derivatives Instruments - After-tax Amounts of Unrealized Gain in AOCL Related to Hedge Derivatives (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||||
Stockholder's equity | $ 680,091 | $ 706,871 | $ 721,994 | $ 693,756 |
Unrealized gain on derivative | ||||
Derivative [Line Items] | ||||
Stockholder's equity | (3,750) | (11,622) | $ 1,891 | $ 619 |
Cash Flow Hedging | Unrealized gain on derivative | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Stockholder's equity | 897 | 1,663 | ||
Cash Flow Hedging | Unrealized gain on derivative | Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Stockholder's equity | $ (4,647) | $ (13,285) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 67,991 | $ 108,966 |
Fixed-rate long-term debt | 585,649 | 585,824 |
Variable-rate long-term debt | 634,232 | 599,221 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 67,991 | 108,966 |
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 |
Fixed-rate long-term debt | 563,800 | 541,267 |
Variable-rate long-term debt | 637,500 | 602,652 |
Interest rate swaps | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,150 | 2,131 |
Interest rate swaps | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Interest rate swaps | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,150 | 2,131 |
Foreign exchange forward contracts | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 635 | 7 |
Derivative liabilities | 7,375 | 19,873 |
Foreign exchange forward contracts | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign exchange forward contracts | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 635 | 7 |
Derivative liabilities | $ 7,375 | $ 19,873 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 706,871 | $ 693,756 |
Total other comprehensive income | 4,411 | 11,418 |
Ending balance | 680,091 | 721,994 |
Unrecognized components of employee benefit plans, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (135,590) | (81,638) |
Income tax on reclassifications | (629) | (677) |
Foreign currency adjustments | (195) | 0 |
Total other comprehensive income | 1,891 | 2,397 |
Ending balance | (133,699) | (79,241) |
Amortization of losses | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 2,611 | 2,969 |
Amortization of prior service costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 104 | 143 |
Amortization of negative plan amendment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 0 | (38) |
Unrealized gain on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (11,622) | 619 |
Other comprehensive income (loss) before reclassifications | 8,306 | 1,488 |
Income tax on other comprehensive income (loss) | (1,885) | (353) |
Income tax on reclassifications | (835) | (39) |
Total other comprehensive income | 7,872 | 1,272 |
Ending balance | (3,750) | 1,891 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (8,485) | 4,868 |
Total other comprehensive income | (5,352) | 7,749 |
Ending balance | (13,837) | 12,617 |
Tax effects of foreign translation adjustment | 0 | 0 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (155,697) | (76,151) |
Total other comprehensive income | 4,411 | 11,418 |
Ending balance | (151,286) | (64,733) |
Interest rate swaps | Unrealized gain on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | (280) | 176 |
Foreign exchange forward contracts | Unrealized gain on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | $ 2,566 | $ 0 |
Stockholder's Equity - Stockho
Stockholder's Equity - Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 706,871 | $ 693,756 | $ 693,756 |
Net income (loss) | (22,050) | 24,455 | |
Other comprehensive income (loss), net of tax | 4,411 | 11,418 | |
Issuance of common stock under incentive stock plans | 0 | 121 | |
Stock-based compensation | 3,931 | 2,480 | |
Repurchase of common stock | (5,810) | (3,050) | |
Common stock dividends | (3,812) | (3,736) | |
Preferred stock dividends | (3,450) | (3,450) | |
Ending balance | $ 680,091 | 721,994 | $ 706,871 |
Preferred stock dividends (in dollars per share) | $ 2 | $ 2 | |
Common stock dividends (in dollars per share) | $ 0.07 | $ 0.07 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 493 | $ 517 | $ 517 |
Beginning balance (in shares) | 49,291,130 | 51,717,142 | 51,717,142 |
Issuance of common stock under incentive stock plans (in shares) | 928,601 | 291,689 | |
Issuance of common stock under incentive stock plans | $ 9 | $ 3 | |
Repurchase of common stock (in shares) | (420,847) | (155,861) | |
Repurchase of common stock | $ (4) | $ (1) | |
Ending balance (in shares) | 49,798,884 | 51,852,970 | 49,291,130 |
Ending balance | $ 498 | $ 519 | $ 493 |
Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 17 | $ 17 | $ 17 |
Beginning balance (in shares) | 1,725,000 | 1,725,000 | 1,725,000 |
Ending balance (in shares) | 1,725,000 | 1,725,000 | 1,725,000 |
Ending balance | $ 17 | $ 17 | $ 17 |
Additional Paid in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 399,490 | 392,353 | 392,353 |
Issuance of common stock under incentive stock plans | (9) | 118 | |
Stock-based compensation | 3,931 | 2,480 | |
Repurchase of common stock | (5,806) | (3,049) | |
Ending balance | 397,606 | 391,902 | 399,490 |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 462,568 | 377,020 | 377,020 |
Net income (loss) | (22,050) | 24,455 | |
Repurchase of common stock | 0 | 0 | |
Common stock dividends | (3,812) | (3,736) | |
Preferred stock dividends | (3,450) | (3,450) | |
Ending balance | 433,256 | 394,289 | 462,568 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (155,697) | (76,151) | (76,151) |
Other comprehensive income (loss), net of tax | 4,411 | 11,418 | |
Ending balance | $ (151,286) | $ (64,733) | $ (155,697) |
Stockholder's Equity - Narrati
Stockholder's Equity - Narrative (Details) | Aug. 04, 2016USD ($)$ / sharesshares | Mar. 30, 2019USD ($)director | Jan. 29, 2018USD ($) |
Class of Stock [Line Items] | |||
Amount authorized under share repurchase program | $ | $ 100,000,000 | ||
Amount available under share repurchase program | $ | $ 60,000,000 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Issuance of preferred stock (in shares) | shares | 1,725,000 | ||
Dividend rate | 8.00% | ||
Public offering price (in dollars per share) | $ 100 | ||
Net proceeds from issuance of preferred stock | $ | $ 167,000,000 | ||
Threshold trading days averaging period | 20 days | ||
Conversion rate | 6.5923 | ||
Number of additional board of director members entitled to elect after six or more dividend periods without dividends declared | director | 2 | ||
Liquidation preference (in dollars per share) | $ 100 | ||
Common stock greater than $15.17 | Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Applicable market value (in dollars per share) | $ 15.17 | ||
Conversion rate | 6.5923 | ||
Common stock less than $12.91 | Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Applicable market value (in dollars per share) | $ 12.91 | ||
Conversion rate | 7.7459 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (22,050) | $ 24,455 |
Preferred Stock dividends | (3,365) | (3,403) |
Net Income (Loss) Available to Rayonier Advanced Materials Inc. Common Stockholders | $ (25,415) | $ 21,052 |
Shares used for determining basic earnings per share of common stock (in shares) | 48,986,272 | 51,127,726 |
Dilutive effect of: | ||
Stock options (in shares) | 0 | 5,669 |
Performance and restricted stock (in shares) | 0 | 1,472,839 |
Preferred Stock (in shares) | 0 | 11,371,718 |
Shares used for determining diluted earnings per share of common stock (in shares) | 48,986,272 | 63,977,952 |
Basic (loss) earnings per share (in dollars per share) | $ (0.52) | $ 0.41 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.52) | $ 0.38 |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 15,296,300 | 288,827 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 259,088 | 288,464 |
Performance and restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 1,959,123 | 363 |
Preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 13,078,089 | 0 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation cost | $ 3,931 | $ 2,480 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance-Based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total number of performance shares adjusted (up or down) | 25.00% | ||
Settlement percentage | 246.00% | ||
Shares issued (in shares) | 923,211 | ||
Performance-Based Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout percentage | 0.00% | ||
Final payout range | 0.00% | ||
Performance-Based Stock Units | 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) | 3 Months Ended |
Mar. 30, 2019$ / sharesshares | |
Stock Options | |
Stock Options, Options | |
Beginning Balance (in shares) | shares | 286,613 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Exercised or settled (in shares) | shares | 0 |
Expired or cancelled (in shares) | shares | (27,525) |
Ending Balance (in shares) | shares | 259,088 |
Stock Options, Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 34.23 |
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 | 18.09 |
Ending balance (in dollars per share) | $ / shares | $ 35.95 |
Restricted Stock and Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 917,098 |
Granted (in shares) | shares | 258,317 |
Forfeited (in shares) | shares | 0 |
Exercised or settled (in shares) | shares | (394,877) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 780,538 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 13.71 |
Granted (in dollars per share) | $ / shares | 14.10 |
Forfeited (in dollars per share) | $ / shares | 0 |
Exercised or settled (in dollars per share) | $ / shares | 9.46 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 15.99 |
Performance-Based Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 1,325,894 |
Granted (in shares) | shares | 372,858 |
Forfeited (in shares) | shares | 0 |
Exercised or settled (in shares) | shares | (520,167) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,178,585 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 14.69 |
Granted (in dollars per share) | $ / shares | 15.47 |
Forfeited (in dollars per share) | $ / shares | 0 |
Exercised or settled (in dollars per share) | $ / shares | 7.80 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 17.98 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Pension | ||
Defined Benefit Plans Disclosure [Line Items] | ||
Service cost | $ 2,611 | $ 3,099 |
Interest cost | 9,624 | 8,255 |
Expected return on plan assets | (14,166) | (13,858) |
Amortization of prior service cost | 142 | 143 |
Amortization of losses | 2,591 | 2,912 |
Amortization of negative plan amendment | 0 | 0 |
Total net periodic benefit cost | 802 | 551 |
Postretirement | ||
Defined Benefit Plans Disclosure [Line Items] | ||
Service cost | 465 | 742 |
Interest cost | 360 | 335 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (38) | 0 |
Amortization of losses | 20 | 57 |
Amortization of negative plan amendment | 0 | (38) |
Total net periodic benefit cost | $ 807 | $ 1,096 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective rate | (29.00%) | 29.00% |
Segment Information - Segment
Segment Information - Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 5 | ||
Net sales | $ 482,780 | $ 521,992 | |
Operating income | (18,469) | 46,257 | |
Identifiable assets | 2,655,411 | $ 2,679,086 | |
Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 286,009 | 282,383 | |
Operating income | (2,793) | 21,311 | |
Identifiable assets | 1,616,441 | 1,643,092 | |
Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 75,179 | 99,186 | |
Operating income | (5,248) | 10,637 | |
Identifiable assets | 199,481 | 166,801 | |
Operating Segments | Pulp | |||
Segment Reporting Information [Line Items] | |||
Operating income | 10,422 | 22,711 | |
Identifiable assets | 102,655 | 103,308 | |
Operating Segments | Paper | |||
Segment Reporting Information [Line Items] | |||
Net sales | 69,973 | 75,307 | |
Operating income | (1,765) | 2,926 | |
Identifiable assets | 245,059 | 240,427 | |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income | (19,085) | (11,328) | |
Identifiable assets | 491,775 | $ 525,458 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (18,060) | (20,039) | |
Cellulose Specialties | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 192,104 | 209,127 | |
Commodity Products | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 73,956 | 42,747 | |
Other sales | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 19,949 | 30,509 | |
Other sales | Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 17,827 | 20,806 | |
Lumber | Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 57,352 | 78,380 | |
High-yield pulp | Operating Segments | Pulp | |||
Segment Reporting Information [Line Items] | |||
Net sales | 69,679 | 85,155 | |
Paperboard | Operating Segments | Paper | |||
Segment Reporting Information [Line Items] | |||
Net sales | 47,337 | 47,791 | |
Newsprint | Operating Segments | Paper | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 22,636 | $ 27,516 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 148 |
2020 | 1,557 |
2021 | 1,335 |
2022 | 1,150 |
2023 | 676 |
Thereafter | 5,081 |
Total | $ 9,947 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Mar. 30, 2019USD ($)employee |
LignoTech Florida | |
Guarantor Obligations [Line Items] | |
Ownership percentage | 45.00% |
Borregaard ASA | LignoTech Florida | |
Guarantor Obligations [Line Items] | |
Ownership percentage | 55.00% |
Financial Standby Letter of Credit | |
Guarantor Obligations [Line Items] | |
Guarantees | $ 37 |
Surety Bonds | |
Guarantor Obligations [Line Items] | |
Guarantees | 84 |
Contract Guarantee | |
Guarantor Obligations [Line Items] | |
Guarantees | $ 36 |
Unionized Employees Concentration Risk | |
Guarantor Obligations [Line Items] | |
Number of employees | employee | 25 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flows Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash paid (received) during the period: | ||
Interest | $ 8,234 | $ 7,678 |
Income taxes | 90 | 6,567 |
Non-cash investing and financing activities: | ||
Capital assets purchased on account | $ 11,807 | $ 14,053 |