Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36285 | ||
Entity Registrant Name | RAYONIER ADVANCED MATERIALS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4559529 | ||
Entity Address, Address Line One | 1301 RIVERPLACE BOULEVARD | ||
Entity Address, Address Line Two | SUITE 2300 | ||
Entity Address, City or Town | JACKSONVILLE | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32207 | ||
City Area Code | 904 | ||
Local Phone Number | 357-4600 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | RYAM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 313,912,248 | ||
Entity Common Stock, Shares Outstanding | 63,171,700 | ||
Entity Central Index Key | 0001597672 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Sales | $ 1,775,392 | $ 1,956,994 | $ 940,416 |
Cost of Sales | (1,721,235) | (1,665,847) | (799,663) |
Gross Margin | 54,157 | 291,147 | 140,753 |
Selling, general and administrative expenses | (89,644) | (104,989) | (79,560) |
Duties | (22,634) | (25,921) | (939) |
Other operating expense, net (Note 19) | (24,997) | (12,422) | (1,274) |
Operating Income (Loss) | (83,118) | 147,815 | 58,980 |
Interest expense | (60,267) | (55,923) | (39,967) |
Interest income and other, net | (24) | 5,019 | 2,352 |
Other components of net periodic benefit income (expense) | (4,875) | 8,345 | (3,040) |
Gain on bargain purchase (Note 4) | 0 | 20,449 | 316,555 |
Gain on derivative instrument | 0 | 0 | 7,780 |
Gain on debt extinguishment | 0 | 786 | 0 |
Income (Loss) from Continuing Operations Before Income Taxes | (148,284) | 126,491 | 342,660 |
Income tax benefit (expense) (Note 20) | 29,676 | (27,040) | (19,233) |
Income (Loss) from Continuing Operations | (118,608) | 99,451 | 323,427 |
Income from discontinued operations (Note 3) | 96,158 | 28,965 | 1,537 |
Net Income (Loss) Attributable to the Company | (22,450) | 128,416 | 324,964 |
Mandatory convertible stock dividends | (8,582) | (13,800) | (13,800) |
Net income (loss) available for common stockholders | $ (31,032) | $ 114,616 | $ 311,164 |
Basic Earnings (Loss) Per Share of Common Stock (Note 16) | |||
Income (loss) from continuing operations (in dollars per share) | $ (2.33) | $ 1.70 | $ 7.13 |
Income from discontinued operations (in dollars per share) | 1.76 | 0.57 | 0.04 |
Net income (loss) per common share-Basic (in dollars per share) | (0.57) | 2.27 | 7.17 |
Diluted Earnings (Loss) Per Share of Common Stock (Note 16) | |||
Income (loss) from continuing operations (in dollars per share) | (2.33) | 1.52 | 5.78 |
Income from discontinued operations (in dollars per share) | 1.76 | 0.44 | 0.03 |
Net income (loss) per common share-Diluted (in dollars per share) | $ (0.57) | $ 1.96 | $ 5.81 |
Comprehensive Income: | |||
Net Income (Loss) Attributable to the Company | $ (22,450) | $ 128,416 | $ 324,964 |
Other Comprehensive Income (Loss), net of tax (Note 15) | |||
Foreign currency translation adjustments | (5,394) | (13,353) | 4,868 |
Unrealized gain (loss) on derivative instruments | 12,912 | (12,241) | 619 |
Net gain (loss) from pension and postretirement plans | 8,952 | (31,527) | 28,442 |
Total other comprehensive income (loss) | 16,470 | (57,121) | 33,929 |
Comprehensive Income (Loss) | $ (5,980) | $ 71,295 | $ 358,893 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 64,025 | $ 108,966 |
Accounts receivable, net (Note 6) | 181,658 | 199,284 |
Inventory (Note 7) | 251,180 | 304,028 |
Prepaid and other current assets | 76,964 | 61,314 |
Assets of discontinued operations (Note 3) | 0 | 42,500 |
Total current assets | 573,827 | 716,092 |
Property, Plant and Equipment, Net (Note 8) | 1,316,055 | 1,363,557 |
Deferred Tax Assets (Note 20) | 384,513 | 375,471 |
Intangible Assets, Net | 45,451 | 52,460 |
Other Assets | 160,301 | 120,299 |
Assets of discontinued operations (Note 3) | 0 | 51,207 |
Total Assets | 2,480,147 | 2,679,086 |
Current Liabilities | ||
Accounts payable | 153,181 | 181,705 |
Accrued and other current liabilities (Note 9) | 102,178 | 146,155 |
Current maturities of long-term debt (Note 10) | 19,448 | 15,012 |
Current environmental liabilities (Note 11) | 11,339 | 11,310 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 16,236 |
Total current liabilities | 286,146 | 370,418 |
Long-Term Debt (Note 10) | 1,062,695 | 1,173,157 |
Non-Current Environmental Liabilities (Note 11) | 160,037 | 149,344 |
Pension and Other Postretirement Benefits (Note 18) | 236,625 | 233,658 |
Deferred Tax Liabilities (Note 20) | 24,847 | 28,016 |
Other Non-Current Liabilities | 26,999 | 12,074 |
Liabilities of discontinued operations (Note 3) | 0 | 5,548 |
Commitments and Contingencies (Note 22) | ||
Stockholders’ Equity (Note 14) | ||
Preferred stock, 0 and 10,000,000 shares authorized at $0.00 and $0.01 par value, 0 and 1,725,000 issued and outstanding as of December 31, 2019 and December 31, 2018, respectively, aggregate liquidation preference $0 and $172,500 | 0 | 17 |
Common stock, 140,000,000 shares authorized at $0.01 par value, 63,136,129 and 49,291,130 issued and outstanding, as of December 31, 2019 and 2018, respectively | 632 | 493 |
Additional paid-in capital | 399,020 | 399,490 |
Retained earnings | 422,373 | 462,568 |
Accumulated other comprehensive income (loss) (Note 15) | (139,227) | (155,697) |
Total Stockholders’ Equity | 682,798 | 706,871 |
Total Liabilities and Stockholders’ Equity | $ 2,480,147 | $ 2,679,086 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred shares, shares authorized (in shares) | 10,000,000 | |
Preferred shares, par value (in dollars per share) | $ 0.01 | |
Preferred shares, shares issued (in shares) | 1,725,000 | |
Preferred shares, shares outstanding (in shares) | 1,725,000 | |
Aggregate liquidation preference | $ 172,500,000 | |
Common shares, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares issued (in shares) | 63,136,129 | 49,291,130 |
Common shares, shares outstanding (in shares) | 63,136,129 | 49,291,130 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income (loss) | $ (22,450) | $ 128,416 | $ 324,964 |
Loss (income) from discontinued operations | (96,158) | (28,965) | (1,537) |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 153,275 | 145,957 | 96,646 |
Stock-based incentive compensation expense | 6,531 | 13,007 | 8,986 |
Amortization of capitalized debt costs and debt discount | 2,292 | 835 | 3,377 |
Deferred income tax (benefit) expense | (25,552) | 7,637 | 29,782 |
Gain on bargain purchase | 0 | (19,071) | (316,555) |
Increase in environmental liabilities | 16,384 | 7,285 | 256 |
Net periodic benefit cost of pension and postretirement plans | 16,580 | 5,063 | 10,264 |
Loss from sale/disposal of property, plant and equipment | 1,295 | 3,186 | 2,032 |
Loss (gain) on foreign currency exchange | 6,574 | (12,170) | (2,335) |
Other | (3,332) | 3,390 | 1,304 |
Changes in operating assets and liabilities: | |||
Receivables | 14,443 | (31,532) | (2,574) |
Inventories | 52,347 | (21,579) | (651) |
Accounts payable | (26,025) | 30,162 | 17,629 |
Accrued liabilities | (20,034) | 4,864 | (4,299) |
All other operating activities | (36,074) | 9,597 | (18,838) |
Payments for pension and other postretirement benefit plans | (11,593) | (12,153) | (13,763) |
Expenditures for environmental liabilities | (6,444) | (11,852) | (5,795) |
Cash provided by operating activities-continuing operations | 22,059 | 222,077 | 126,285 |
Cash provided by operating activities-discontinued operations | 19,845 | 24,867 | 3,487 |
Cash Provided by Operating Activities | 41,904 | 246,944 | 129,772 |
Investing Activities | |||
Acquisition of Tembec, net of cash acquired | 0 | 0 | (210,164) |
Capital expenditures | (102,807) | (128,786) | (74,955) |
Proceeds from sale of resins operations | 0 | 16,233 | 0 |
Realized gain on derivative instrument | 0 | 0 | 7,780 |
Cash used for investing activities-continuing operations | (102,807) | (112,553) | (277,339) |
Cash provided by (used for) investing activities-discontinued operations | 155,309 | (3,413) | (87) |
Cash Used for Investing Activities | 52,502 | (115,966) | (277,426) |
Financing Activities | |||
Revolving credit facility and other borrowings | 91,158 | 0 | 680,000 |
Repayments of revolving credit facility | (86,000) | 0 | 0 |
Repayment of debt | (114,331) | (45,270) | (729,958) |
Dividends paid on common stock | (8,569) | (15,058) | (12,693) |
Dividends paid on preferred stock | (10,350) | (13,800) | (13,800) |
Proceeds from the issuance of common stock | 0 | 451 | 14 |
Repurchase of common stock | (6,878) | (42,780) | (157) |
Debt issuance costs | (3,514) | 0 | (7,025) |
Cash (Used for) Provided by Financing Activities | (138,484) | (116,457) | (83,619) |
Change in cash and cash equivalents | (44,078) | 14,521 | (231,273) |
Net effect of foreign exchange on cash and cash equivalents | (863) | (1,790) | 853 |
Balance, beginning of year | 108,966 | 96,235 | 326,655 |
Balance, end of year | $ 64,025 | $ 108,966 | $ 96,235 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In November 2019, the Company sold its Matane, Quebec pulp mill to Sappi Limited, a global diversified wood fiber company, for a gross purchase price of approximately $ 175 million . The mill produces approximately 270,000 metric tons of high-yield pulp and sells the product globally for use in manufacturing paperboard, packaging, and printing and writing paper. The Matane mill was acquired by the Company as part of its acquisition of Tembec Inc. (“Tembec”) in November 2017 and was previously reported as part of the Company’s Pulp segment. The following table presents the major classes of assets and liabilities of discontinued operations that are classified as held for sale as of December 31, 2018: December 31, 2018 Accounts receivable, net $ 23,093 Inventory 17,349 Prepaid and other current assets 2,058 Total current assets 42,500 Property, plant and equipment, net 17,482 Deferred tax assets 31,486 Other assets 2,239 Total assets $ 93,707 Accounts payable $ 11,035 Accrued and other current liabilities 3,786 Other current liabilities 1,415 Total current liabilities 16,236 Other long-term liabilities 5,548 Total liabilities $ 21,784 Income (loss) from discontinued operations is comprised of the following: Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Revenues $ 127,561 $ 177,419 $ 20,917 Cost of sales (106,572 ) (124,396 ) (18,618 ) Gross margin 20,989 53,023 2,299 Selling, general and administrative expenses and other (1,536 ) (3,196 ) 173 Operating income (loss) 19,453 49,827 2,472 Interest expense (a) (3,957 ) (4,485 ) (482 ) Other non-operating income 321 377 45 Income from discontinued operations before income taxes 15,817 45,719 2,035 Income tax expense (4,096 ) (16,754 ) (498 ) Income from discontinued operations, net of taxes 11,721 28,965 1,537 Gain from sale of discontinued operation, pre-tax 118,888 — — Income tax expense on gain (34,451 ) — — Gain from sale of discontinued operations, net of tax 84,437 — — Income from Discontinued Operations $ 96,158 $ 28,965 $ 1,537 (a) The Company was required to repay $100 million of debt from proceeds received from the sale of Matane. As such, interest expense has been allocated to discontinued operations using the weighted-average interest rates in effect for each period presented based on the proportionate amounts required to be repaid. Other discontinued operations information is as follows: Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Depreciation and amortization $ 1,590 $ 2,459 $ 317 Capital expenditures $ 2,956 $ 3,662 $ 87 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Rayonier Advanced Materials Inc. (“the Company”) is a leading manufacturer of high purity cellulose products, lumber, pulp and paper products. The Company operates in the following business segments: High Purity Cellulose The Company, through its four production facilities located in the United States (“U.S.”), Canada and France, manufactures and markets high purity cellulose, which is sold as either cellulose specialties or commodity products. Cellulose specialties are primarily used in dissolving chemical applications that require a highly purified form of cellulose. Commodity products are used for commodity viscose and absorbent materials applications. Commodity viscose is a raw material required for the manufacture of viscose staple fibers which are used in woven and non-woven applications. Absorbent materials, typically referred to as fluff fibers, are used as an absorbent medium in consumer products. Sales of resins, chemicals, and energy, a majority of which are by-products of the manufacturing process, are included in the high purity cellulose segment. Forest Products The Company, through its seven sawmills in Canada, manufactures and markets high-quality, construction-grade lumber in North America. The lumber, primarily spruce, pine, or fir, is used in the construction of residential and multi-family homes, light industrial and commercial facilities, and the home repair and remodel markets. The wood chips, manufactured as a by-product of the lumber manufacturing process, are used in the Company’s Canadian High Purity Cellulose, Pulp and Paper plants. Paperboard The Company, through its production facility in Canada, manufactures and markets paperboard products. Paperboard is used for packaging, printing documents, brochures, promotional materials, paperback book or catalog covers, file folders, tags and tickets. Pulp & Newsprint The Company, through its production facilities in Canada, manufactures and markets high-yield pulp and newsprint. High-yield is used by paper manufacturers to produce paperboard, packaging, printer and writing papers and a variety of other paper products. Newsprint is a paper grade used to print newspapers, advertising materials and other publications. Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its wholly owned, majority owned and controlled subsidiaries. The Company applies the equity method of accounting for investments in which it has an ownership interest from 20 percent to 50 percent or exercises significant influence over the related investee’s operations. All significant intercompany accounts and transactions are eliminated in consolidation. Discontinued Operations As a result of the sale its Matane, Quebec, Canada high-yield pulp mill, the Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations. Unless otherwise stated, information in these notes to consolidated financial statements relates to continuing operations. The Company presents businesses that represent components as discontinued operations when they meet the criteria for held for sale or are sold, and their disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results. See Note 3 - Discontinued Operations for additional information. Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Fiscal Year The Company’s fiscal year end is the last day of the calendar year. For interim reporting periods, the Company uses the last Saturday of the fiscal quarter. Subsequent Events Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through March 2, 2020 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and New Accounting Pronouncements | Summary of Significant Accounting Policies and New Accounting Pronouncements Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in using estimates and therefore, actual results could differ from those estimates. Translation of Foreign Currency Assets and liabilities of consolidated subsidiaries whose functional currency is other than the U.S. dollar are translated into U.S. dollars using currency exchange rates at the balance sheet date. Revenues and expenses are translated using the average currency exchange rates during the period. Foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”). Gains and losses resulting from foreign currency transactions are included in operating results as incurred. Cash and Cash Equivalents Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less when purchased. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company's allowance is established based on historical patterns of accounts receivable collections and general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of the Company’s receivables or a customer’s financial condition. Write-offs are recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. Inventory Finished goods, work-in-process and raw materials inventories are valued at the lower of cost, as determined on the first-in, first-out basis, or market. Manufacturing and maintenance supplies are valued at average cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow-moving inventories is reviewed periodically. Property, Plant, Equipment and Depreciation Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. The Forest Products segment production related plant and equipment are depreciated using the straight-line method over 3 to 20 years. High Purity Cellulose, Paperboard and Pulp & Newsprint production related plant and equipment are depreciated using the units-of-production method. The total units of production used to calculate depreciation expense is determined by factoring annual production days, based on normal production conditions, by the economic useful life of the asset involved. Production related assets under finance leases are depreciated using the straight-line method over the related lease term. The Company depreciates its non-production assets, including office, lab and transportation equipment, using the straight-line depreciation method over 3 to 25 years. Buildings and land improvements are depreciated using the straight-line method over 15 to 35 years and 5 to 30 years, respectively. Depreciation expense reflected in cost of sales in the Consolidated Statements of Income was $137 million , $135 million and $93 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Gains and losses on the retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets that are held and used is measured by net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flows model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Maintenance Costs The Company performs scheduled inspections, repairs and maintenance of plant machinery and equipment at the Company’s High Purity, Paperboard and Pulp & Newsprint manufacturing facilities during a full plant shutdown. Costs associated with these planned outage periods are referred to as shutdown costs and are incurred to ensure the long-term reliability and safety of the manufacturing operations. Shutdown costs are accounted for using the deferral method, under which expenditures related to shutdown are capitalized in other assets when incurred and amortized to production costs on a straight-line basis over the period benefited, or the period of time until the next scheduled shutdown which can generally range from one year to eighteen months . Shutdown costs are classified as working capital in operating activities in the consolidated statements of cash flows. As of December 31, 2019 and 2018 the Company had $19 million and $12 million , respectively, in shut down costs capitalized in other current assets. Intangible Assets The Company has definite-life intangible assets which it acquired through a business combination. The definite-life intangible assets consist of customer lists and trade-names and are amortized over their estimated useful lives generally for periods ranging from 8 to 15 years. The Company evaluates the recovery of its definite-life intangible assets by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured, and, if the carrying amount exceeds the fair value, an impairment loss is recognized. The Company’s definite-lived intangible assets are summarized as follows (in thousands): December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life Customer Lists $ 51,680 $ (13,613 ) $ 38,067 5.9 years Trade Names 8,604 (1,220 ) 7,384 12.9 years Total Definite-Lived Intangibles $ 60,284 $ (14,833 ) $ 45,451 7.0 years December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life Customer Lists $ 51,680 $ (7,179 ) $ 44,501 6.9 years Trade Names 8,604 (645 ) 7,959 13.9 years Total Definite-Lived Intangibles $ 60,284 $ (7,824 ) $ 52,460 8.0 years Total amortization expense related to definite-lived assets was $7 million , $7 million and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, amortization expense for the years ended December 31, 2020 through 2024 is expected to be $7 million per year and $10 million for all remaining years thereafter. Equity Method Investment The Company holds a 45 percent interest in LignoTech Florida LLC (“LTF”), a joint venture accounted for under the equity method of accounting. Borregaard, a public company in Norway traded on the Oslo Exchange, owns the remaining 55 percent interest. LTF purchases sulfite liquor from the Company’s Fernandina Beach, Florida plant and converts it to purified lignins and ligno-sulfonates which are used in concrete, textile dyes, pesticides, batteries and other products. The Company recorded $6 million and $2 million of lignin sales to the LTF joint venture during the years ended December 31, 2019 and 2018 , respectively. The Company records its share of net earnings and losses on the investment within “Other operating expense, net” in the Consolidated Statements of Income and Comprehensive Income. See Note 19 — Other Operating Expense, Net The Company is liable for certain financing agreements related to the entity. See Note 22 — Commitments and Contingencies for further discussion. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy that prioritizes the inputs used to measure fair value was established as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flows methodologies and similar techniques that use significant unobservable inputs. Derivative Instruments Derivatives are recognized on the consolidated balance sheets at fair value and are classified according to their asset or liability position and the expected timing of settlement. Changes in the fair values of derivatives are recorded in net earnings or other comprehensive income based on whether the instrument is designated and effective as a hedge transaction and, if so, the type of hedge transaction. Gains or losses on derivative instruments reported in AOCI are reclassified to earnings in the period the hedged item affects earnings. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCI are reclassified to earnings at that time. Any ineffectiveness is recognized in earnings in the current period. Revenue Recognition and Measurement The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018, using the modified retrospective basis. The core principle of ASC 606 is that a company should recognize revenue when it transfers control of goods or services to customers for an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company’s contracts have a single performance obligation to transfer products. Accordingly, it recognizes revenue when control has been transferred to the customer. Generally, control passes upon delivery to a location in accordance with terms and conditions of the sale. Changes in customer contract terms and conditions, as well as the timing of orders and shipments, may have an impact on the timing of revenue recognition. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products and is generally based upon contractual arrangements with customers or published indices. The Company sells its products both directly to customers and through distributors and agents typically under agreements with payment terms less than 90 days. The Company elected to account for shipping and handling as activities to fulfill the promise to transfer the goods. As such, shipping and handling costs incurred are recorded in cost of sales. In addition, the Company has excluded from net sales any value-add, sales and other taxes which we collect concurrent with its revenue-producing activities. The nature of the Company’s contracts may give rise to variable consideration, which may be constrained, including sales volume-based rebates to customers. The Company estimates the level of sales volumes based on anticipated purchases at the beginning of the period and records a rebate accrual for each purchase toward the requisite rebate volume. These estimated rebates are included in the transaction price as a reduction to net sales. We have certain contracts which contain performance obligations which are not significant in the context of the contract with the customer and have elected not to assess whether these promised goods or services are performance obligations. Contract liabilities primarily relate to prepayments received from our customers before revenue is recognized and sales volume rebates payable to customers. These amounts are included in accrued customer incentives and prepayments in the consolidated balance sheets (see Note 9 — Accrued and Other Current Liabilities ). The Company does not have any material contract assets as of December 31, 2019. These methodologies are consistent with the manner in which we have historically accounted for the recognition of revenue. Environmental Costs The Company has established liabilities to assess, remediate, maintain and monitor sites related to disposed operations from which no current or future benefit is discernible. These obligations are established based on projected spending over the next 20 years and require significant estimates to determine the proper amount at any point in time. The projected period, from 2020 through 2040 , reflects the time during which potential future costs are both estimable and probable. As new information becomes available, these cost estimates are updated and the recorded liabilities are adjusted appropriately. Environmental liabilities are accounted for on an undiscounted basis and are reflected in current and non-current liabilities for disposed operations in the consolidated balance sheets. Employee Benefit Plans The determination of expense and funding requirements for the Company’s defined benefit pension and postretirement health care and life insurance plans are largely based on a number of actuarial assumptions. The key assumptions include discount rate, return on assets, salary increases, health care cost trends, mortality rates, longevity and service lives of employees. The components of periodic pension and post retirement costs, other than service costs, are presented separately outside of operating income in “Other components of net periodic benefit costs” on the consolidated statement of income. The service cost component of net periodic benefit cost is presented in cost of sales and selling, general and administrative expense, which correlates with the related employee compensation costs arising from services rendered during the period. Only the service cost component of the net periodic benefit cost is eligible for capitalization in assets. Changes in the funded status of the Company’s plans are recorded through comprehensive income in the year in which the changes occur. Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in stockholders’ equity, net of taxes. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, the Company will amortize them over the average future service period of employees. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not such deferred tax assets will not be realized. Interest expense and penalties, if applicable, related to unrecognized tax benefits are recorded in income tax expense. The Company’s income tax returns are subject to audit by U.S. federal and state taxing authorities as well as foreign jurisdictions, including Canada and France. In evaluating the tax benefits associated with various tax filing positions, the Company records a tax benefit for an uncertain tax position if it is more-likely-than-not to be realized upon ultimate settlement of the issue. The Company records a liability for an uncertain tax position that does not meet this criterion. The Company adjusts its liabilities for unrecognized tax benefits in the period in which it is determined the issue is settled with the taxing authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new facts or information becomes available. New Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses on Financial Instruments (Topic 326). The updated guidance is to be applied on a modified retrospective approach and is effective for years, and interim periods within those fiscal years, beginning after December 15, 2019. The update provides guidance on the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The amendment replaces the current incurred loss impairment approach with a methodology to reflect expected credit losses and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods therein. The Company anticipates the adoption of this new standard will not have a material impact, if any, to the Consolidated Financial Statements. Recently Adopted Accounting Pronouncements Leases The Company adopted ASU 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 assets and lease liability of $10 million and $11 million , respectively, and the reversal of deferred rent liability balances as of January 1, 2019. See Note 5 — Leases for additional information. Pension In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans , which amended the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update is effective for fiscal years ending after December 15, 2020, early adoption is permitted. The amendment removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. Entities are required to apply the amendment retrospectively for all periods presented. The Company elected to early adopt the new guidance in 2019. The adoption did not have a material impact on the Company’s consolidated financial statements. See Note 18 — Employee Benefit Plans, for additional information. Fair Value On August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement . This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. The Company adopted this ASU during the fourth quarter of 2019. The Company does not have any Level 3 items, as such, the adoption of this new standard did not have an impact on its financial statement disclosures. See Note 13 — Fair Value Measurements, for additional information. |
Tembec Acquisition
Tembec Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Tembec Acquisition | Tembec Acquisition On November 17, 2017, the Company acquired all of the outstanding common shares of Tembec for an aggregate purchase price of approximately $317 million Canadian dollars cash and 8.4 million shares of the Company’s common stock, par value $0.01 per share (the “Acquisition”). The aggregate purchase price was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values as of December 31, 2017, which were based, in part, upon outside preliminary appraisals for certain assets. As a result of the preliminary allocation, a gain on bargain purchase was recognized of $317 million , primarily as a result of the elimination of Tembec’s valuation allowance associated with certain deferred tax assets . The Company finalized the valuation and completed the purchase consideration allocation within the measurement period and recognized an additional gain on bargain purchase of $20 million during 2018. Tembec’s operating results contributed net revenue of $139 million and no operating income for the period from the acquisition date of November 17, 2017 to December 31, 2017. The Company recognized $34 million of acquisition related expenses in operating expense during 2017. The following presents the unaudited pro forma consolidated financial information of the Company as if the acquisition of Tembec was completed on January 1, 2017. The unaudited pro forma financial information includes adjustments for the pro forma year ended December 31, 2017 for (i) depreciation on acquired property, plant and equipment of $15 million ; (ii) amortization of intangible assets recorded at the date of the transactions of $7 million ; (iii) the elimination of acquisition related costs of $49 million and the fair value write-up of inventory of $23 million ; (iv) the elimination of interest expense related to Tembec debt that was paid off, net of interest expense associated with financing the acquisition of $38 million ; (v) the elimination of the gain on bargain purchase and (vi) total weighted average shares outstanding related to the acquisition. This information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on January 1, 2017. Year Ended December 31, 2017 Unaudited pro forma net revenue (includes the results of the Matane mill) $ 2,122,000 Unaudited pro forma net income attributable to the Company $ 111,000 Unaudited pro forma basic net income per share $ 1.92 Unaudited pro forma diluted net income per share $ 1.76 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of December 31, 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 restrictive 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 December 31, 2019 was 6.0 percent . The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of December 31, 2019 was 7.0 percent . The Company’s operating and finance lease cost is as follows: Year Ended December 31, 2019 Operating Leases Operating lease expense $ 6,474 Finance Leases Amortization of ROU assets 306 Interest 209 Total $ 6,989 As of December 31, 2019 , the weighted average remaining lease term is 4.3 years and 6.9 years for operating leases and financing leases, respectively. Cash provided by operating activities includes approximately $6 million from operating lease payments made during the year ended December 31, 2019 . As of December 31, 2019, assets acquired under finance leases of $3 million are reflected in Property, Plant and Equipment, net. The Company’s finance leases liabilities are included as debt and the maturities for the next five four years and thereafter are included in Note 10 — Debt and Finance Leases . The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification December 31, 2019 Right-of-use assets Other assets $ 22,406 Lease liabilities, current Accrued and other current liabilities $ 5,887 Lease liabilities, non-current Other non-current liabilities $ 17,522 As of December 31, 2019 , operating lease maturities for 2020 through 2024 and thereafter are as follows: December 31, 2019 2020 $ 7,093 2021 6,148 2022 5,661 2023 4,680 2024 1,532 Thereafter 1,586 Total minimum lease payments 26,700 Less: imputed interest (3,291 ) Present value of future minimum lease payments $ 23,409 |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of December 31, 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 restrictive 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 December 31, 2019 was 6.0 percent . The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of December 31, 2019 was 7.0 percent . The Company’s operating and finance lease cost is as follows: Year Ended December 31, 2019 Operating Leases Operating lease expense $ 6,474 Finance Leases Amortization of ROU assets 306 Interest 209 Total $ 6,989 As of December 31, 2019 , the weighted average remaining lease term is 4.3 years and 6.9 years for operating leases and financing leases, respectively. Cash provided by operating activities includes approximately $6 million from operating lease payments made during the year ended December 31, 2019 . As of December 31, 2019, assets acquired under finance leases of $3 million are reflected in Property, Plant and Equipment, net. The Company’s finance leases liabilities are included as debt and the maturities for the next five four years and thereafter are included in Note 10 — Debt and Finance Leases . The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification December 31, 2019 Right-of-use assets Other assets $ 22,406 Lease liabilities, current Accrued and other current liabilities $ 5,887 Lease liabilities, non-current Other non-current liabilities $ 17,522 As of December 31, 2019 , operating lease maturities for 2020 through 2024 and thereafter are as follows: December 31, 2019 2020 $ 7,093 2021 6,148 2022 5,661 2023 4,680 2024 1,532 Thereafter 1,586 Total minimum lease payments 26,700 Less: imputed interest (3,291 ) Present value of future minimum lease payments $ 23,409 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable included the following for the years ended December 31 : 2019 2018 Accounts receivable, trade $ 142,181 $ 146,056 Accounts receivable, other (a) 40,082 53,787 Allowance for doubtful accounts (605 ) (559 ) Total accounts receivable, net $ 181,658 $ 199,284 (a) Accounts receivable, other consists primarily of value added/consumption taxes, government grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The Company’s inventory included the following for the years ended December 31 : 2019 2018 Finished goods $ 150,259 $ 203,350 Work-in-progress 17,065 21,478 Raw materials 73,385 68,656 Manufacturing and maintenance supplies 10,471 10,544 Total inventory $ 251,180 $ 304,028 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The Company’s property, plant and equipment included the following as of December 31, : 2019 2018 Land and land improvements $ 29,912 $ 22,476 Buildings 248,395 246,971 Machinery and equipment 2,453,568 2,389,250 Other 20,063 23,138 Construction in progress 46,378 67,559 Total property, plant and equipment, gross 2,798,316 2,749,394 Accumulated depreciation (1,482,261 ) (1,385,837 ) Total property, plant and equipment, net $ 1,316,055 $ 1,363,557 |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | Accrued and Other Current Liabilities The Company’s accrued and other current liabilities included the following as of December 31, : 2019 2018 Accrued customer incentives and prepayments $ 31,696 $ 41,734 Accrued payroll and benefits 23,593 29,567 Accrued interest 2,785 3,170 Foreign currency forward contracts 995 16,767 Accrued property taxes 5,643 10,663 Other current liabilities 37,466 44,254 Total accrued and other current liabilities $ 102,178 $ 146,155 |
Debt and Finance Leases
Debt and Finance Leases | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | Debt and Finance Leases The Company’s debt and finance leases include the following for the years ended December 31 ,: 2019 2018 U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 $ — $ — Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 — — Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 133,283 160,000 Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 365,592 438,875 Senior Notes due 2024 at a fixed interest rate of 5.50% 495,647 495,647 Canadian dollar based, fixed rate term loans with interest rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028 83,122 91,304 Other loans 7,285 3,777 Finance lease obligations 2,818 3,124 Total principal payments due 1,087,747 1,192,727 Less: debt premium, original issue discount and issuance costs (5,604 ) (4,558 ) Total debt 1,082,143 1,188,169 Less: current maturities of long-term debt (19,448 ) (15,012 ) Long-term debt $ 1,062,695 $ 1,173,157 Debt and finance lease payments due during the next five years and thereafter are as follows: Finance Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments 2020 $ 515 $ 187 $ 328 $ 18,258 2021 515 163 352 9,078 2022 515 138 377 159,927 2023 515 110 405 7,169 2024 515 81 434 868,306 Thereafter 988 66 922 22,191 Total payments $ 3,563 $ 745 $ 2,818 $ 1,084,929 5.50% Senior Notes due 2024 On May 22, 2014, the Company issued $550 million in aggregate principal amount of 5.50 percent senior notes due 2024 (the “Senior Notes”). The Senior Notes were issued and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and non-U.S. persons pursuant to Regulation S under the Securities Act. During the fourth quarter of 2018, the Company repurchased in the open market $11 million of the Senior Notes and retired them for $10 million plus accrued and unpaid interest. In connection with the retirement of these Senior Notes, the Company recorded a gain in other income of approximately $1 million , which includes the write-off of unamortized debt issuance costs. There were no open market purchases of these notes during the year ended December 31, 2019 . The indenture governing the Senior Notes contains various customary covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the Senior Notes, to take certain specified actions, subject to certain exceptions, including: creating liens; incurring indebtedness; making investments and acquisitions; engaging in mergers and other fundamental changes; making dispositions; making restricted payments, including dividends and distributions; and consummating transactions with affiliates. Additionally, the Senior Notes contain customary affirmative covenants and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, payment defaults, breach of covenant defaults, bankruptcy defaults, judgment defaults, defaults under certain other indebtedness and changes in control. At December 31, 2019 , the Company was in compliance with all covenants under the Senior Notes. Senior Secured Credit Facility The Company’s senior secured credit facilities (collectively the “Credit Facility”) consists of a $230 million senior secured term loan (the “Term A-1 Loan Facility”), a $450 million senior secured year term loan (the “Term A-2 Loan Facility” and together with the Term A-1 Facility, the “Term Loan Facilities”), a $100 million revolving credit facility (the “U.S. Revolver”) and a multi-currency revolving credit facility in a U.S. Dollar equivalent amount of $150 million (the “Multi-currency Revolver” and together with the U.S. Revolver, the “Revolving Credit Facility”). The lenders under the Credit Facilities have a first priority security interest in substantially all the Company’s current and future U.S. and Canadian material assets. In September 2019, the Company entered into an amendment (the “Amendment”) of the Credit Facility under which, among other changes, the lenders have agreed to relax the total net senior first lien secured leverage ratio and interest coverage ratio tests through 2021. The Amendment also increases the interest rate margin on borrowings to be paid to lenders by a maximum of 1.25 percent , subject to operation of a pricing grid which provides for reduced interest rate margins with improved leverage ratios; provides additional collateral for the lenders; and requires the Company to maintain availability under its revolving credit facility in specified amounts that vary to reflect the seasonality of the business. The Amendment reduced the availability of the multi-currency revolver borrowings to $126 million and the U.S. revolver borrowings to $84 million . The Amendment was accounted for as a debt modification and, as such, lender fees of $4 million were capitalized and will be amortized over the remaining term of the Credit Facility and third-party fees of $4 million were expensed as incurred. The loans under the Credit Facility, as amended, bear interest at either (a) a base rate plus an applicable margin ranging between 2 percent and 3 percent or (b) an adjusted LIBOR rate plus an applicable margin ranging between 3 percent and 4 percent . The applicable margin for borrowings under the Credit Facility is based on a consolidated total net leverage-based pricing grid. As of December 31, 2019 , the Company had $87 million of available borrowings under the Revolving Credit Facility after taking into account $33 million used to secure outstanding letters of credit. The Amendment also requires the Company to maintain between $80 million and $90 million of availability on our revolving credit facility, which is also reflected as a reduction in the available borrowings. The Credit Facility, as amended, contains a number of covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the Credit Facility, to take certain specified actions, subject to certain exceptions, including: creating liens; incurring indebtedness; making investments and acquisitions; engaging in mergers and other fundamental changes; making dispositions; making restricted payments, including dividends and distributions; and consummating transactions with affiliates. As of December 31, 2019, the Company will be required to maintain a less restrictive consolidated first lien secured net leverage ratio of no greater than 5.60 to 1.00 and an interest coverage ratio of no less than 1.65 to 1.00 . These covenant ratios gradually become more restrictive through December 31, 2021 to a first lien secured net leverage ratio of no greater than 3.00 to 1.00 and an interest coverage ratio of no less than 3.00 to 1.00 for the quarterly period ended March 31, 2022. Additionally, the Credit Facility contains customary affirmative covenants for credit facilities of this kind and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, non-payment of interest or principal, breaches of covenants, bankruptcy filing, judgment defaults, defaults under certain other indebtedness and changes in control. As of December 31, 2019 , the Company was in compliance with all covenants under the Credit Facility. |
Liabilities for Disposed Operat
Liabilities for Disposed Operations | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Liabilities for Disposed Operations | Environmental Liabilities The Company’s environmental liabilities relate to sawmills, pulp, paper and wood treating plants which have ceased operations other than environmental investigation and remediation activities. The Company owns or has liability for approximately twenty sites that are subject to various federal, state or provincial statutes, including but not limited to, the Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) and the Environmental Protection Act in the United States, and similar laws in Canada and France, related to the investigation and remediation of environmentally-impacted sites. The Company estimates its environmental liabilities based on its current interpretation of environmental laws and regulations when it is probable a liability has been incurred and the amount of such liability is estimable. The Company calculates estimates based on a number of factors, including the application and interpretation of current environmental laws, regulations and other requirements; reports and advice of internal and third-party environmental specialists; and management’s knowledge and experience with these and similar types of environmental matters. These estimates include potential costs for investigation, assessment, remediation, ongoing operation and maintenance (where applicable), and post-remediation monitoring of the sites, as well as the cost of legally-required financial assurance relating to the Company’s obligations on an undiscounted basis, generally for a period of 20 years . These environmental liabilities do not include potential third-party recoveries to which the Company may be entitled unless they are probable and estimable. The following table provides detail for specific sites where current estimates exceed 10 percent of the total liabilities for disposed operations at December 31, 2019 , 2018 , or 2017 . An analysis of the activity of the liabilities for disposed operations for the years ended December 31, 2019 and 2018 is as follows: December 31, 2017 Liability Payments Increase (Decrease) to Liabilities (a) December 31, 2018 Liability Payments Increase (Decrease) to Liabilities (a) December 31, 2019 Liability Port Angeles, Washington $ 43,667 $ (935 ) $ 2,067 $ 44,799 $ (1,404 ) $ 11,045 $ 54,440 Augusta, Georgia 21,175 (929 ) 108 20,354 (683 ) 1,876 21,547 Baldwin, Florida 21,170 (4,613 ) 687 17,244 (450 ) 383 17,177 All other sites 78,074 (5,489 ) 5,672 78,257 (3,907 ) 3,862 78,212 Total 164,086 $ (11,966 ) $ 8,534 160,654 $ (6,444 ) $ 17,166 171,376 Less: Current portion (13,181 ) (11,310 ) (11,339 ) Non-Current portion $ 150,905 $ 149,344 $ 160,037 (a) Included in the Increase (Decrease) to Liabilities during the year ended December 31, 2019 and 2018 is a $1 million increase and a $1 million decrease of the liability, respectively, due to foreign currency gains and losses. A brief description of the above identified sites is as follows: Port Angeles, Washington — The Company operated a pulp mill at this site from 1930 until 1997. The site and the adjacent marine areas (a portion of Port Angeles harbor) have been in various stages of the assessment process under the Washington Model Toxics Control Act (“MTCA”) since 2000, and several voluntary interim soil clean-up actions have been performed during this time. In addition, the Company may be liable under CERCLA for “natural resource damages” caused by releases from the site. As a result of an agreed order with the Washington State Department of Ecology (“Ecology”), the remainder of the MTCA regulatory process will be completed on a set timetable, subject to approval of all reports and studies by Ecology. Upon completion of all work required under the agreed order and negotiation of an approved remedy, additional remedial measures for the site and off-site areas may be necessary and, as a result, current cost estimates and the corresponding liability could change. During 2019 and 2018, the estimated liability increased by $10 million and $1 million , respectively, due to changes in the Company’s remediation cost estimates, partly offset by payments made during the year. Augusta, Georgia — The Company operated a wood treatment plant at this site from 1928 to 1988. This site operates under a 10 -year hazardous waste permit renewed and issued pursuant to RCRA in 2015. Ongoing remediation activities currently consist primarily of groundwater recovery and treatment. Current cost estimates and the corresponding liability could vary if recovery or discharge volumes change or if changes to current remediation activities are required in the future. During 2019 and 2018, the Company recorded an $1 million increase and a $1 million decrease in the liability, respectively, due to payments and to the change in the estimated costs related to the site’s operation and maintenance. Baldwin, Florida — The Company operated a wood treatment plant at this site from 1954 to 1987. This site operates under a 10 -year hazardous waste permit renewed and issued pursuant to RCRA in 2017. Ongoing remediation activities currently consist primarily of groundwater recovery and treatment. Additional remedial activities may be necessary in the future and, therefore, current cost estimates and the corresponding liability could change. During 2018, the Company decreased the estimated liability by approximately $5 million due to payments and a decrease in the estimated costs related to the site’s remediation plan. During 2019, the reserve remained flat as payments during the year were essentially offset by an increase in the remediation cost estimates. In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established liabilities due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its disposed operations sites and providing financial assurance relating thereto; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies or non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of December 31, 2019 , the Company estimates this exposure could range up to approximately $80 million , although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several of the above sites and other applicable liabilities. This estimate excludes liabilities which would otherwise be considered reasonably possible but for the fact that they are not currently estimable primarily due to the factors discussed above. Subject to the previous paragraph, the Company believes its estimates of 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 these estimates of liabilities 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. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative 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 (1) designated as a hedge of a forecasted transaction or (2) 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 assesses their effectiveness using the hypothetical derivative method in conjunction with regression. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated hedge. Ineffective gains and losses are classified to earnings immediately. There was no hedge ineffectiveness during 2019 or 2018 . 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 may use foreign currency forward contracts to selectively hedge its foreign currency cash flows 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 and maturity dates of outstanding derivative instruments as of December 31, 2019 and 2018 are presented below. December 31, 2019 December 31, 2018 Interest rate swaps (a) $ 200,000 $ 200,000 Foreign currency contracts (b) $ 343,665 $ 388,930 Foreign cross-currency contracts (c) $ 83,126 $ 125,979 (a) Maturity date of December 2020 (b) Various maturity dates through September 2020 (c) Various maturity dates in 2020, 2022 and 2028 The fair values of derivative instruments included in the consolidated balance sheet as of December 31, 2019 and 2018 are provided in the below table. See Note 13 — Fair Value Measurements for additional information related to the Company’s derivatives. Balance Sheet Location December 31, 2019 December 31, 2018 Assets: Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ — $ 1,194 Interest rate swaps Other assets — 937 Foreign exchange forward contracts Other current assets 4,857 — Foreign exchange forward contracts Other assets 5 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 246 7 Liabilities: Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities (639 ) — Foreign exchange forward contracts Other current liabilities (340 ) (16,408 ) Foreign exchange forward contracts Other non-current liabilities (759 ) (3,105 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (16 ) (360 ) Total derivatives $ 3,354 $ (17,735 ) The effects of derivative instruments designated as cash flow hedges, the related changes in AOCI and the gains and losses in income for the years ended December 31, 2019 and 2018 were as follows: Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) December 31, 2019 Interest rate swaps $ (2,083 ) Interest expense $ 688 $ — Foreign currency contracts $ 2,382 Other operating expense, net $ 854 — Foreign currency contracts $ 10,006 Cost of sales $ (10,006 ) — Foreign currency contracts $ 2,517 Interest income and other, net $ 3,537 — December 31, 2018 Interest rate swaps $ 1,446 Interest expense $ 64 $ — Foreign currency contracts $ (23,603 ) Other operating expense, net $ 752 — Foreign currency contracts $ 3,843 Cost of sales $ (3,843 ) — Foreign currency contracts $ (4,672 ) Interest income and other, net $ (3,599 ) — The effects of derivative instruments not designated as hedging instruments on the statement of income for the years ended December 31, 2019 and 2018 were as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative December 31, 2019 December 31, 2018 Foreign exchange contracts Other operating expense, net $ 416 $ (3,009 ) The after-tax amounts of unrealized gains in AOCI related to hedge derivatives at December 31, 2019 and 2018 are presented below: December 31, 2019 December 31, 2018 Unrealized gains from interest rate cash flow hedges $ (499 ) $ 1,663 Unrealized gains from foreign currency cash flow hedges $ 1,789 $ (13,285 ) The amount of future reclassifications from AOCI will fluctuate with movements in the underlying markets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018 , using market information and what management believes to be appropriate valuation methodologies discussed in further detail below: December 31, 2019 December 31, 2018 Carrying Amount Fair Value (c) Carrying Amount Fair Value (c) Level 1 Level 2 Level 1 Level 2 Assets: Cash and cash equivalents $ 64,025 $ 64,025 $ — $ 108,966 $ 108,966 $ — Interest rate swaps (a) $ — $ — $ — $ 2,131 $ — $ 2,131 Foreign currency forward contracts (a) $ 5,108 $ — $ 5,108 $ 7 $ — $ 7 Liabilities (b): Interest rate swaps (a) $ 639 $ — $ 639 $ — $ — $ — Foreign currency forward contracts (a) $ 1,115 $ — $ 1,115 $ 19,873 $ — $ 19,873 Fixed-rate long-term debt $ 585,027 $ — $ 465,449 $ 585,824 $ — $ 541,267 Variable-rate long-term debt $ 494,299 $ — $ 498,875 $ 599,221 $ — $ 602,652 (a) These items represent derivative instruments. (b) Liabilities excludes finance lease obligation. (c) The Company did not have Level 3 assets or liabilities at December 31, 2019 and 2018. 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 12 — 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. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity (Deficit) | An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Preferred Stock Additional Paid in Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Par Value Shares Par Value Balance, December 31, 2016 43,261,905 $ 433 1,725,000 $ 17 $ 242,402 $ 78,977 $ (110,080 ) $ 211,749 Net income — — — — — 324,964 — 324,964 Other comprehensive loss, net of tax — — — — — — 33,929 33,929 Common stock issued at Acquisition 8,439,452 84 — — 141,108 — — 141,192 Issuance of common stock under incentive stock plans 27,131 — — — 14 — — 14 Stock-based compensation — — — — 8,986 — — 8,986 Repurchase of common stock (11,346 ) — — — (157 ) — — (157 ) Common stock dividends ($0.28 per share) — — — — — (13,121 ) — (13,121 ) Preferred stock dividends ($8.00 per share) — — — — — (13,800 ) — (13,800 ) Balance, December 31, 2017 51,717,142 517 1,725,000 17 392,353 377,020 (76,151 ) 693,756 Net income — — — — — 128,416 — 128,416 Other comprehensive loss, net of tax — — — — — — (57,121 ) (57,121 ) Issuance of common stock under incentive stock plans 301,560 3 — — 448 — — 451 Stock-based compensation — — — — 13,007 — — 13,007 Repurchase of common stock (2,727,572 ) (27 ) — — (6,318 ) (36,435 ) — (42,780 ) ASU 2018-02 adoption — — — — — 22,425 (22,425 ) — Common stock dividends ($0.28 per share) — — — — — (15,058 ) — (15,058 ) Preferred stock dividends ($8.00 per share) — — — — — (13,800 ) — (13,800 ) Balance, December 31, 2018 49,291,130 493 1,725,000 17 399,490 462,568 (155,697 ) 706,871 Net income — — — — — (22,450 ) — (22,450 ) Other comprehensive income, net of tax — — — — — — 16,470 16,470 Preferred stock converted to common stock 13,361,678 133 (1,725,000 ) (17 ) (116 ) — — — Issuance of common stock under incentive stock plans 978,091 10 — — (10 ) — — — Stock-based compensation — — — — 6,531 — — 6,531 Repurchase of common stock (494,770 ) (4 ) — — (6,875 ) — — (6,879 ) Common stock dividends ($0.14 per share) — — — — — (7,395 ) — (7,395 ) Preferred stock dividends ($6.00 per share) — — — — — (10,350 ) — (10,350 ) Balance, December 31, 2019 63,136,129 $ 632 — $ — $ 399,020 $ 422,373 $ (139,227 ) $ 682,798 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 automatically converted into shares of common stock on August 15, 2019. The number of shares of common stock issuable at conversion was 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”). The Applicable Market Value for our common stock was less than $12.91 , resulting in a conversion rate per share of 7.7459 . On August 15, 2019, the Company issued approximately 13.4 million shares of common stock at conversion. Dividends on the Preferred Stock were payable on a cumulative basis when declared by our Board of Directors. Preferred Stock dividends were paid at an annual rate of 8.00% of the liquidation preference of $100 per share. The final dividend was paid on August 15, 2019. 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 2018 , the Company repurchased and retired 2,570,449 shares of common stock under this buyback program at an average price of $15.44 per share, excluding commissions, for an aggregate purchase price of approximately $40 million . No shares were repurchased during the year ended December 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income (Loss) AOCI was comprised of the following for the three years ended December 31 : 2019 2018 2017 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (135,590 ) $ (81,638 ) $ (110,080 ) Other comprehensive gain (loss) before reclassifications (8,119 ) (53,278 ) 26,050 Income tax on other comprehensive loss 2,413 12,160 (5,731 ) Reclassifications to earnings: (a) Pension settlement loss (d) 8,787 — — Amortization of losses 9,889 11,877 11,984 Amortization of prior service costs 693 572 763 Amortization of negative plan amendment — (153 ) (153 ) Income tax on reclassifications (4,711 ) (2,705 ) (4,471 ) Net comprehensive gain (loss) on employee benefit plans, net of tax 8,952 (31,527 ) 28,442 ASU 2018-02 adoption (c) — (22,425 ) — Balance, end of year (126,638 ) (135,590 ) (81,638 ) Unrealized gain on derivative instruments, net of tax: Balance, beginning of year (11,622 ) 619 — Other comprehensive income before reclassifications 12,822 (22,985 ) 749 Income tax on other comprehensive income (3,076 ) 5,372 (130 ) Reclassifications to earnings: (b) Interest rate contracts (688 ) (64 ) — Foreign exchange contracts 5,615 6,690 — Income tax on reclassifications (1,761 ) (1,254 ) — Net comprehensive gain on derivative instruments, net of tax 12,912 (12,241 ) 619 Balance, end of year (b) 1,290 (11,622 ) 619 Foreign currency translation: Balance, beginning of year (8,485 ) 4,868 — Foreign currency translation, net of tax effects of $0, $0, and $0 (5,394 ) (13,353 ) 4,868 Balance, end of year (13,879 ) (8,485 ) 4,868 Accumulated other comprehensive income (loss), end of year $ (139,227 ) $ (155,697 ) $ (76,151 ) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic pension cost. See Note 18 — 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. Additional details about the reclassifications related to derivative instruments is included in Note 12 — Derivative Instruments . There were no reclassifications to earnings for derivative instruments during the year ended December 31, 2017. (c) Represents a reclassification to retained earnings from the adoption of ASU No. 2018-02. (d) In October 2019, the Company purchased annuity contracts from a third-party insurance company who has assumed responsibility for future pension benefits for certain participants in our Canadian defined benefit plans. As a result, we recognized a loss on the settlement and de-recognition of the projected benefit obligation. See Note 18 — Employee Benefit Plans |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings per Share of Common Stock Basic earnings per share (“EPS”) is calculated by dividing net income available for common stockholders by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS is calculated by dividing net income by the weighted-average number of shares of common stock outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares and Preferred Stock. In connection with the acquisition of Tembec in November 2017, the Company issued 8.4 million shares of common stock as part of the consideration to Tembec shareholders. These shares were included in the calculation of weighted-average shares outstanding at December 31, 2017. Refer to Note 4 — Tembec Acquisition for more information. The following table provides details of the calculations of basic and diluted EPS for the three years ended December 31: 2019 2018 2017 Income (loss) from continuing operations $ (118,608 ) $ 99,451 $ 323,427 Less: Preferred Stock dividends (8,582 ) (13,800 ) (13,800 ) Income (loss) from continuing operations attributable to common stockholders $ (127,190 ) $ 85,651 $ 309,627 Income from discontinued operations 96,158 28,965 1,537 Net income (loss) available for common stockholders (31,032 ) 114,616 311,164 Shares used for determining basic earnings per share of common stock 54,511,863 50,602,480 43,416,868 Dilutive effect of: Stock options — 1,307 — Performance and restricted shares — 1,431,794 1,113,866 Preferred Stock — 13,361,678 11,371,718 Shares used for determining diluted earnings per share of common stock 54,511,863 65,397,259 55,902,452 Basic earnings per share (not in thousands) Income (loss) from continuing operations $ (2.33 ) $ 1.70 $ 7.13 Income from discontinued operations 1.76 0.57 0.04 Net income (loss) $ (0.57 ) $ 2.27 $ 7.17 Diluted earnings per share (not in thousands) Income (loss) from continuing operations $ (2.33 ) $ 1.52 $ 5.78 Income from discontinued operations 1.76 0.44 0.03 Net income (loss) $ (0.57 ) $ 1.96 $ 5.81 Anti-dilutive instruments excluded from the computation of diluted earnings per share for the three years ended December 31, are as follows: 2019 2018 2017 Stock options 205,026 260,033 373,058 Performance and restricted shares 494,469 398,004 798 Total 699,495 658,037 373,856 |
Incentive Stock Plans
Incentive Stock Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Stock Plans | Incentive Stock Plans As of December 31, 2019 , the Company had two stock-based incentive plans. The Rayonier Advanced Materials Inc. Incentive Stock Plan (the “Prior Plan”) provided for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, performance shares, restricted stock, and restricted stock units, subject to certain limitations. The Company no longer issues shares under the Prior Plan. The Rayonier Advanced Materials Inc. 2017 Incentive Stock Plan (the “2017 Plan”) provides for up to 4.8 million shares to be granted for stock options, non-qualified stock options, stock appreciation rights, performance shares, restricted stock, and restricted stock units. Under the 2017 Plan, shares available for issuance may be increased by any shares of common stock subject to awards under the Prior Plan that, in whole or in part, are forfeited, terminated or expire unexercised, settled in cash in lieu of stock, or released from a reserve for failure to meet the maximum payout under a program. At December 31, 2019 , approximately 3.0 million shares were available for future grants under the 2017 Plan. During the year ended December 31, 2019 , the Company made new grants of restricted stock units and performance-based stock units to certain employees. The 2019 restricted stock unit awards vest over three years. The 2019 performance-based stock unit awards are measured against an internal return on an invested capital target and metrics aligned with a weighted average cost of capital. Depending on performance against the targets, 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 awarded 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 Company recognizes stock-based compensation expense on a straight-line basis over the service period of the award. The Company’s total stock-based compensation cost, including allocated amounts, for the years ended December 31, 2019 , 2018 and 2017 was $7 million , $13 million and $9 million , respectively. These amounts may not reflect the cost of current or future equity awards. The Company’s employee stock option compensation program generally provides accelerated vesting (i.e., a waiver of the remaining period of service required to earn an award) for awards held by employees at the time of their retirement. Stock-based compensation expense for stock option awards is recognized over the shorter of: (1) the service period (i.e., the stated period of time required to earn the award); or (2) the period beginning at the start of the service period and ending when an employee first becomes eligible for retirement. Fair Value Calculations by Award All restricted stock and performance share awards are presented for Rayonier Advanced Materials stock only. Option awards include Rayonier Advanced Materials awards held by employees of its former parent Rayonier Inc. Non-Qualified Employee Stock Option Awards Stock options are granted with an exercise price equal to the market value of the underlying stock on the grant date. They generally vest ratably over three years and have a maximum term of 10 years and two days from the grant date. The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model. The Company has elected to value each grant in total and recognize the expense for stock options on a straight-line basis over three years . During the years ended December 31, 2019 , 2018 and 2017 , no options were granted. A summary of the Company’s stock option activity is presented below for the year ended December 31, 2019 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2019 286,613 $ 34.23 Forfeited — — Exercised — — Expired (81,587 ) 29.54 Outstanding at December 31, 2019 205,026 $ 36.10 2.4 $ — Options vested and expected to vest 205,026 $ 36.10 2.4 $ — Options exercisable at December 31, 2019 205,026 $ 36.10 2.4 $ — A summary of additional information pertaining to stock options granted to employees is presented below: 2019 2018 2017 Intrinsic value of options exercised $ — $ 108 $ 1 Fair value of options vested $ — $ — $ 210 Restricted Stock and Stock Unit Awards Restricted stock and stock units granted in connection with the Company’s performance share plan generally vests upon completion of periods ranging from 1 year to four years . The fair value of each share granted is equal to the share price of the underlying stock on the date of grant. As of December 31, 2019 , there was $5 million of unrecognized compensation cost related to the Company’s outstanding restricted stock. This cost is expected to be recognized over a weighted average period of 1.5 years . The following table summarizes the activity of restricted stock and stock units granted to employees for the three years ended December 31 : 2019 2018 2017 Restricted stock and stock units granted 395,260 301,384 285,506 Weighted average price of restricted stock or units granted $ 11.99 $ 19.73 $ 13.37 Intrinsic value of restricted stock and units outstanding $ 3,201 $ 9,767 $ 17,349 Fair value of restricted stock and units vested $ 4,881 $ 3,753 $ 1,119 A summary of the Company’s restricted stock and stock units activity is presented below for the year ended December 31, 2019 : Restricted Stock and Stock Units Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 917,098 $ 13.71 Granted 395,260 11.99 Forfeited (20,014 ) 15.06 Vested (458,748 ) 10.64 Outstanding at December 31, 2019 833,596 $ 14.55 Performance-Based Stock Unit Awards The Company’s performance-based stock unit awards generally vest upon completion of a three -year period. The number of shares, if any, that are ultimately awarded is contingent upon the Company’s performance against an internal performance metric or a combination of an internal metric and a market condition. The performance-based stock unit awards which are measured against a market condition or incorporate market conditions are valued using a Monte Carlo simulation model. The model generates the fair value of the market-based award or market-based portion of the award at the grant date. The related expense is then amortized over the award’s vesting period. As of December 31, 2019 , there was $2 million of unrecognized compensation cost related to the Company’s performance-based stock unit awards. This cost is expected to be recognized over a weighted average period of 1.01 years. The following table summarizes the activity of the Company’s performance-based stock units awarded to its employees for the three years ended December 31 : 2019 2018 2017 Common shares of stock reserved for performance-based stock units 980,641 1,115,747 896,121 Weighted average fair value of performance-based stock units granted $ 14.98 $ 22.75 $ 14.60 Intrinsic value of outstanding performance-based stock units $ 4,572 $ 4,774 $ 7,408 A summary of the Company’s performance-based stock unit award activity is presented below for the year ended December 31, 2019 : Performance-Based Stock Units Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 1,325,894 $ 14.69 Granted 400,404 14.98 Forfeited (15,605 ) 16.90 Vested (520,167 ) 7.80 Outstanding at December 31, 2019 1,190,526 $ 17.77 The expected volatility is based on representative price returns using the stock price of several peer companies. The risk-free rate was based on the 3-year U.S. treasury rate on the date of the award. The following chart provides a tabular overview of the weighted average assumptions used in calculating the fair value of the awards granted for the three years ended December 31 : 2019 2018 2017 Expected volatility 49.5 % 68.7 % 70.2 % Risk-free rate 2.5 % 2.4 % 1.5 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined 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. In connection with the Acquisition, we assumed the obligations of various defined benefit pension and other postretirement plans that were maintained by Tembec which cover certain employees, primarily in Canada and France. The defined benefit pension plans are closed to new participants. In October 2019, the Company settled certain Canadian pension liabilities through the purchase of annuity contracts with an insurance company. The settlement resulted in the recognition of approximately $9 million in pension settlement losses which were recognized in “Other components of net periodic benefit costs” in our Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2019. Defined benefit pension and other postretirement plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. The following tables set forth the changes in the projected benefit obligation and plan assets and reconciles the funded status and the amounts recognized in the Consolidated Balance Sheets for the defined benefit pension and postretirement plans for the two years ended December 31 : Pension Postretirement Change in Projected Benefit Obligation 2019 2018 2019 2018 Projected benefit obligation at beginning of year $ 1,013,541 $ 1,112,785 $ 41,243 $ 45,449 Service cost 9,857 11,663 1,849 1,716 Interest cost 36,138 35,499 1,432 1,327 Actuarial loss (gain) 101,576 (44,976 ) (39 ) (2,720 ) Participant contributions 900 905 130 360 Benefits paid (55,801 ) (59,531 ) (2,824 ) (3,418 ) Plan amendment 1,693 — — — Settlement (222,342 ) — (146 ) — Effects of foreign currency exchange rates 22,811 (42,804 ) 926 (1,471 ) Projected benefit obligation at end of year $ 908,373 $ 1,013,541 $ 42,571 $ 41,243 Change in Plan Assets Fair value of plan assets at beginning of year $ 844,588 $ 979,269 $ — $ — Actual return on plan assets 148,226 (44,167 ) — — Employer contributions 8,899 9,109 2,694 3,059 Participant contributions 900 905 130 360 Benefits paid (55,801 ) (59,316 ) (2,824 ) (3,419 ) Settlement (222,342 ) — — — Effects of foreign currency exchange rates 21,388 (41,212 ) — — Fair value of plan assets at end of year $ 745,858 $ 844,588 $ — $ — Funded Status at end of year: $ (162,515 ) $ (168,953 ) $ (42,571 ) $ (41,243 ) The projected benefit obligation decreased during the year ended December 31, 2019 due to the settlement of certain Canadian pension plan obligations, as discussed above, partially offset by an actuarial loss resulting from a decrease in the discount rate assumed. Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2019 2018 2019 2018 Non-current assets $ 37,505 $ 30,395 $ — $ — Current liabilities (3,745 ) (3,773 ) (2,221 ) (3,160 ) Non-current liabilities (196,275 ) (195,575 ) (40,350 ) (38,083 ) Net amount recognized $ (162,515 ) $ (168,953 ) $ (42,571 ) $ (41,243 ) Net gains (losses) recognized in other comprehensive income for the three years ended December 31 are as follows: Pension Postretirement 2019 2018 2017 2019 2018 2017 Net gains (losses) $ (6,294 ) $ (55,918 ) $ 24,411 $ (97 ) $ 2,640 $ 1,639 Prior service (costs) gains $ (1,728 ) $ — $ — $ — $ — $ — Net gains or losses and prior service costs or credits reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows: Pension Postretirement 2019 2018 2017 2019 2018 2017 Pension settlement loss (a) $ 8,787 $ — $ — $ — $ — $ — Amortization of losses 10,244 11,648 11,651 81 229 333 Amortization of prior service (credit) cost 846 572 761 (153 ) (153 ) (151 ) (a) In October 2019, the Company purchased annuity contracts from a third-party insurance company who has assumed responsibility for future pension benefits for certain participants in our Canadian defined benefit plans. As required under ASC 715 Compensation-Retirement Benefits, we recognized a loss in the fourth quarter of 2019 on the settlement and de-recognition of the projected benefit obligation. Net losses, prior service costs or credits and plan amendments that have not yet been included in pension and postretirement expense for the two years ended December 31 which have been recognized as a component of AOCI are as follows: Pension Postretirement 2019 2018 2019 2018 Prior service cost $ (2,842 ) $ (1,681 ) $ 1,185 $ 1,338 Net losses (160,058 ) (172,484 ) (2,266 ) (2,280 ) Deferred income tax benefit 37,050 39,299 293 218 Accumulated other comprehensive income (loss) $ (125,850 ) $ (134,866 ) $ (788 ) $ (724 ) For defined benefit pension plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the years ended December 31 : 2019 2018 Projected benefit obligation $ 907,755 $ 740,287 Accumulated benefit obligation $ 871,291 $ 714,891 Fair value of plan assets $ 744,662 $ 540,944 The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31 : Pension Postretirement Components of Net Periodic Benefit Cost 2019 2018 2017 2019 2018 2017 Service cost $ 9,857 $ 11,663 $ 5,646 $ 1,849 $ 1,716 $ 1,249 Interest cost 36,138 35,499 15,926 1,432 1,327 827 Expected return on plan assets (52,343 ) (57,438 ) (25,978 ) — — — Amortization of prior service (credit) cost 569 572 761 (153 ) (153 ) (151 ) Amortization of losses 10,363 11,648 11,651 81 229 333 Pension settlement loss 8,787 — — — — — Net periodic benefit cost (a) $ 13,371 $ 1,944 $ 8,006 $ 3,209 $ 3,119 $ 2,258 (a) Service cost is included in cost of sales or 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 non-operating income on the consolidated statement of income. In 2017, the Company changed its method used to determine the service and interest cost components of net periodic benefit cost. Previously, the cost was determined using a single weighted-average discount rate derived from the yield curve. Under the new method, known as the spot rate approach, individual spot rates along the yield curve that correspond with the timing of each benefit payment will be used. The Company believes this change will provide a more precise measurement of service and interest costs by improving the correlation between projected cash outflows and corresponding spot rates on the yield curve. This change does not affect the measurement of plan obligations but generally results in lower pension expense in periods where the yield curve is upward sloping. The Company accounted for this change prospectively as a change in accounting estimate. The following table sets forth the weighted average principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31 : Pension Postretirement 2019 2018 2017 2019 2018 2017 Assumptions used to determine benefit obligations at December 31: Discount rate 3.46 % 3.99 % 3.55 % 3.20 % 3.82 % 3.14 % Rate of compensation increase 2.67 % 2.61 % 2.60 % 3.63 % 3.68 % 3.10 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.91 % 3.42 % 3.77 % 3.91 % 3.40 % 3.64 % Expected long-term return on plan assets 6.37 % 6.32 % 7.38 % N/A N/A N/A Rate of compensation increase 2.67 % 2.61 % 2.59 % 3.63 % 3.68 % 3.10 % The estimated return on plan assets is based on historical and expected long-term rates of return on broad equity and bond indices and consideration of the actual annualized rate of return. The Company, with the assistance of external consultants, utilizes this information in developing assumptions for returns, risks and correlation of asset classes, which are then used to establish the asset allocation ranges. Assumed health care cost trends have a significant effect on the amounts reported for the postretirement benefit plans. The following table sets forth the assumed health care cost trend rates as of December 31 : Postretirement 2019 2018 U.S. Canada U.S. Canada Health care cost trend rate assumed for next year 7.00 % 6.50 % 7.50 % 5.00 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.00 % 4.50 % 5.00 % 4.50 % Year that ultimate trend rate is reached 2024 2021-2022 2024 2019 Investment of Plan Assets The Company’s Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the defined benefit pension plans’ investment program. The investment approach of each defined benefit pension plan is designed to maximize returns and provide sufficient liquidity to meet each plans obligations while maintaining acceptable risk levels. For certain defined benefit plans, investment target allocation percentages for equity securities can range up to 65 percent . In other more well-funded plans, 100 percent is allocated to fixed income securities. All plans were within their respective targeted ranges. The Company’s weighted average defined benefit pension plan asset allocation at December 31, 2019 and 2018 , by asset category are as follows: Percentage of Plan Assets Asset Category 2019 2018 U.S. equity securities 25 % 22 % International equity securities 31 % 24 % U.S. fixed income securities 19 % 13 % International fixed income securities 21 % 36 % Other 4 % 5 % Total 100 % 100 % Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier Advanced Materials common stock at December 31, 2019 or 2018 . Fair Value Measurements The following table sets forth by level, within the fair value hierarchy (see Note 2 — Summary of Significant Accounting Policies and New Accounting Pronouncements for definition), the assets of the plans as of December 31, 2019 and 2018 . Fair Value at December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 128,000 $ — $ — $ 128,000 Investments at net asset value: Common collective trust funds 617,858 Total assets at fair value $ 745,858 Fair Value at December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 172,870 $ — $ — $ 172,870 Investments at net asset value: Common collective trust funds 671,718 Total assets at fair value $ 844,588 The valuation methodology used for measuring the fair value of these asset categories was as follows: Mutual funds — Net asset value in an observable market. Common collective trust funds — Common collective trusts are measured at NAV per share, as a practical expedient for fair value, as provided by the Plan trustee. The NAV is calculated by determining the fair value of the fund’s underlying assets, deducting its liabilities, and dividing by the units outstanding as of the valuation date. These funds are not publicly traded; however, in the majority of cases the unit price calculation is based on observable market inputs of the funds’ underlying assets. There have been no changes in the methodology used during the years ended December 31, 2019 and 2018 . Cash Flows Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2020 $ 45,443 $ 2,988 2021 44,157 2,863 2022 45,396 2,902 2023 46,400 2,798 2024 47,098 2,730 2025 — 2029 243,013 12,990 The Company has mandatory pension contribution requirements of $5 million in 2019 and may make additional discretionary contributions. Defined Contribution Plans The Company provides defined contribution plans to all of its hourly and salaried employees. The Company’s contributions charged to expense for these plans were $9 million , $8 million , and $5 million for the years ended December 31, 2019 , 2018 and 2017 |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Other Operating Expense, Net Other operating expense, net was comprised of the following for the three years ended December 31: 2019 2018 2017 Environmental liability expense (a) $ (17,832 ) $ (8,332 ) $ (1,451 ) Loss on sale or disposal of property, plant and equipment (1,295 ) (3,186 ) (2,032 ) Gain on foreign exchange (3,203 ) 1,114 2,335 Equity income (loss) from joint venture (5,089 ) (4,359 ) (495 ) Insurance settlement 4,500 — (13 ) Miscellaneous income (expense) (2,078 ) 2,341 382 Total other operating expense, net $ (24,997 ) $ (12,422 ) $ (1,274 ) (a) Environmental liability expense reflects the adjustments to the Company’s estimates for environmental liability for the assessment, remediation and long-term monitoring and maintenance of the disposed operations sites over the next 20 years and other related costs. See Note 11 — Environmental Liabilities |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Benefit (Expense) from Continuing Operations Income tax benefit (expense) from continuing operations for the three years ended December 31 are as follows: 2019 2018 2017 Current Federal $ 7,789 $ (8,630 ) $ 10,871 Foreign (4,201 ) (10,115 ) (121 ) State and other 536 (657 ) (201 ) 4,124 (19,402 ) 10,549 Deferred Federal 2,471 4,238 (34,635 ) Foreign 22,702 (11,901 ) 4,563 State and other 379 25 290 25,552 (7,638 ) (29,782 ) Income tax expense $ 29,676 $ (27,040 ) $ (19,233 ) A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate for the three years ended December 31 is as follows: 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Nontaxable bargain purchase gain (a) — (4.2 ) (32.3 ) Change in valuation allowance (b) (8.6 ) — — Tax credits (excluding FTC) 3.1 (3.0 ) (1.5 ) State credits 2.8 — — U.S. federal rate change (c) — — 3.2 Difference in foreign statutory rates 2.3 5.9 — Global Intangible Low Taxed Income (Net of FTC) — 3.7 — Book tax differences related to joint venture — 2.0 — Net changes in uncertain tax positions (1.2 ) (3.1 ) — Adjustment to previously filed tax returns 0.1 (2.4 ) (0.1 ) Other 0.5 1.5 1.3 Income tax rate as reported 20.0 % 21.4 % 5.6 % (a) The bargain purchase gain from the acquisition of Tembec of $20 million and $317 million during the years ended December 31, 2018 and 2017, respectively, was not taxable resulting in a decrease in the income tax rate. (b) Each quarter, the Company evaluates both positive and negative evidence related to the likelihood of realization of the deferred tax assets in order to determine, based on all available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. In the year ended December 31, 2019, the Company established a new valuation allowance in the amount of $16 million against deferred tax assets associated with deferred U.S deductions of interest. The realizable amount of these deferred interest deductions could be positively or negatively impacted by future U.S. tax guidance, changes in U.S. taxable earnings, or changes in U.S. interest expense. (c) The income tax rate for the year ended December 31, 2017 was impacted by the Tax Cuts and Jobs Act through a decrease in the federal tax rate from 35 percent to 21 percent . Income tax expense of $11 million for the re-measurement of the deferred tax assets was recorded during the year ended December 31, 2017. This expense is the result of previously recorded deferred tax deductions which will now result in a lower after-tax benefit due to the reduced rate. Deferred Taxes Deferred income taxes result from recording revenues and expenses in different periods for financial reporting versus tax reporting. The nature of the temporary differences and the resulting net deferred tax liability for the two years ended December 31 were as follows: 2019 2018 Gross deferred tax assets: U.S. federal and Canadian net operating losses (a) $ 205,563 $ 203,330 Canadian pool of scientific research and experimentation deductions ("SR&ED") (a) 87,315 87,253 Tax credit carryforwards (a) 74,503 80,182 Property, plant and equipment basis differences 66,653 57,073 Pension, postretirement and other employee benefits 52,126 56,687 Environmental liabilities 39,118 36,583 Deferred interest deductions (a) 15,537 5,820 Capitalized costs 2,979 5,275 State net operating losses (a) 3,249 2,942 Other 12,818 9,738 Total gross deferred tax assets 559,861 544,883 Less: valuation allowance (a) (94,660 ) (85,938 ) Total deferred tax assets after valuation allowance 465,201 458,945 Gross deferred tax liabilities: Property, plant and equipment basis differences (90,290 ) (92,857 ) Intangible assets (12,284 ) (15,579 ) Other (2,961 ) (3,054 ) Total gross deferred tax liabilities (105,535 ) (111,490 ) Net deferred tax asset $ 359,666 $ 347,455 Included in: Deferred tax assets $ 384,513 $ 375,471 Deferred tax liabilities (24,847 ) (28,016 ) $ 359,666 $ 347,455 (a) The following relates to net operating losses, tax credits, and certain other carryforwards as of December 31, 2019 : Gross Amount Tax Effected Valuation Allowance Expiration Foreign R&D credit carryforwards $ 49,143 $ 49,143 $ (49,143 ) 2019-2037 State tax credit carryforwards $ 24,260 $ 24,260 $ (24,018 ) 2019-2028 State net operating losses $ 71,521 $ 3,249 $ (2,782 ) 2019-2039 Canada non-capital losses $ 910,097 $ 201,504 $ (3,180 ) 2026-2039 Canadian pool of SR&ED $ 407,587 $ 87,315 $ — None Interest limitation carryforward $ 70,624 $ 15,537 $ (15,537 ) None U.S. Federal net operating losses $ 19,329 $ 4,059 $ — None Unrecognized Tax Benefits The Company recognizes the impact of a tax position if it is more likely than not to prevail, based on technical merit, in the case of an audit. As of December 31, 2019 , there were several positions resulting in unrecognized tax benefits that, if recognized, would affect income tax expense. During the years presented, the Company recorded in total less than $1 million of interest expense and penalties in income tax expense. A reconciliation of the beginning and ending unrecognized tax benefits for the three years ended December 31 is as follows: 2019 2018 2017 Balance at January 1, $ 8,844 $ 23,804 $ — Decreases related to prior year tax positions (193 ) (17,872 ) — Increases related to prior year tax positions 1,904 1,137 11,171 Increases related to current year tax positions — 1,775 12,633 Balance at December 31, $ 10,555 $ 8,844 $ 23,804 Each of our unrecognized tax benefits would impact our effective tax rate if recognized. Total interest and penalties recorded in unrecognized tax benefits is less than $1 million . It is reasonably possible that within the next twelve months a number of tax positions could increase or decrease, due to pending tax legislation, new tax regulations, or the conclusion of statute of limitations, impacting our unrecognized tax position reserve by between a decrease of $2 million and increase of $2 million . Tax Statutes In the normal course of business, the Company is regularly audited by tax authorities, and is currently under audit in the U.S. and Canada. The following table provides detail of tax years that remain open to examination by significant taxing jurisdictions: Taxing Jurisdiction Open Tax Years U.S. 2014-2019 France 2017-2019 Canada 2015-2019 |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information As a result of the Matane Mill sale in November 2019, the Company now operates in the following business segments: High Purity Cellulose, Forest Products, Paperboard, Pulp & Newsprint and Corporate. All prior period amounts presented herein have been reclassified to conform to the new segment structure. See Note 3 — Discontinued Operations for additional information on the Matane Mill sale. See also Note 1 — Nature of Operations and Basis of Presentation for a description of the operating businesses. The Corporate segment consists 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 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 and to the Pulp & Newsprint segments. Intersegment sales prices are at rates that approximate market for the respective operating area. Net sales, disaggregated by product-line, was comprised of the following for the three years ended December 31 : 2019 2018 2017 Net sales: High Purity Cellulose Cellulose Specialties $ 765,077 $ 831,805 $ 661,760 Commodity Products 279,527 243,711 183,208 Other sales (a) 82,383 116,873 21,893 Total High Purity Cellulose 1,126,987 1,192,389 866,861 Forest Products Lumber 230,360 284,418 25,880 Other sales (b) 68,753 71,242 8,065 Total Forest Products 299,113 355,660 33,945 Paperboard Paperboard 199,987 196,866 18,875 Pulp & Newsprint Pulp 127,784 169,025 17,553 Newsprint 87,188 113,275 10,576 Total Pulp & Newsprint 214,972 282,300 28,129 Corporate Eliminations (65,667 ) (70,221 ) (7,394 ) Total net sales $ 1,775,392 $ 1,956,994 $ 940,416 (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 by segment was comprised of the following for the years ended December 31 : 2019 2018 2017 Operating income: High Purity Cellulose $ 6,588 $ 112,308 $ 120,356 Forest Products (30,904 ) 24,850 (4 ) Paperboard 4,120 4,392 (899 ) Pulp & Newsprint 1,658 71,899 1,683 Corporate (64,580 ) (65,634 ) (62,156 ) Total operating income $ (83,118 ) $ 147,815 $ 58,980 Identifiable assets by segment were as follows for the years ended December 31 : 2019 2018 Identifiable assets: High Purity Cellulose $ 1,559,073 $ 1,643,092 Forest Products 171,167 166,801 Paperboard 145,030 168,458 Pulp & Newsprint 102,959 113,055 Corporate 501,918 493,973 Assets Held for Sale — 93,707 Total identifiable assets $ 2,480,147 $ 2,679,086 Long-life assets by country were as follows for the years ended December 31 : 2019 2018 Long-life assets: United States $ 791,769 $ 829,153 Canada (a) 905,897 920,503 France 209,304 213,338 Other 146 — Total long-life assets $ 1,907,116 $ 1,962,994 (a) 2018 includes $51 million of assets of discontinued operations Depreciation and amortization and capital expenditures by segment were as follows for the years ended December 31 : 2019 2018 2017 Depreciation and amortization: High Purity Cellulose $ 123,279 $ 119,231 $ 93,177 Forest Products 9,288 6,683 728 Paperboard 15,587 15,674 1,922 Pulp & Newsprint 4,323 3,711 505 Corporate 798 658 314 Total depreciation and amortization $ 153,275 $ 145,957 $ 96,646 Capital expenditures (a): High Purity Cellulose $ 79,293 $ 92,980 $ 65,691 Forest Products 13,667 26,691 4,409 Paperboard 1,446 1,598 17 Pulp & Newsprint 4,664 4,938 1,347 Corporate 6,300 2,826 19 Total capital expenditures $ 105,370 $ 129,033 $ 71,483 (a) Amounts exclude the impact of changes in capital assets purchased on account and government grants. Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination 2019 % 2018 % 2017 % United States $ 694,785 39 $ 771,575 40 $ 336,737 37 China 328,037 18 348,550 18 248,419 26 Canada 221,601 12 259,949 13 41,178 4 Japan 119,839 7 143,577 7 123,850 13 Europe 268,417 15 291,008 15 108,992 12 Latin America 10,223 1 11,868 1 11,576 1 Other Asia 115,332 7 125,773 6 67,739 7 All other 17,158 1 4,694 — 1,925 — Total sales $ 1,775,392 100 $ 1,956,994 100 $ 940,416 100 The Company had no significant customers representing over 10 percent of total sales for the year ended December 31, 2019 and 2018. The Company had three significant customers in its High Purity Cellulose segment which represented over 10 percent of total sales for the year ended December 31, 2017: Percentage of Sales 2017 Eastman Chemical Company 20% Nantong Cellulose Fibers, Co., Ltd. 15% Daicel Corporation 10% |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Contingencies IESO Investigation of the Kapuskasing Facility . Since 2014, the Market Assessment and Compliance Division (“MACD”) branch of the Independent Electricity System Operator (“IESO”), the governmental agency responsible for operating the wholesale electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada, has been engaged in reviewing certain companies’ compliance with the published market rules that govern the operation of the wholesale electricity market in Ontario. MACD has been specifically reviewing issues relating to payments made by IESO to the Company’s facility in Kapuskasing, Ontario. The inquiry has focused primarily on payments made by IESO between 2010 and 2019 under market rules in connection with multiple planned, extended and unplanned forced outages that caused extensive downtime in respect of parts or the entire Kapuskasing facility. The Company has been cooperating in MACD’s inquiry. The Company believes it has complied in all material respects with the rules. No final breach or sanction determinations have yet been made, nor any lawsuits filed, against the Company by MACD to date in respect of this matter. The Company does not believe this matter will be material to its business or financial condition, although no assurances can be given. In addition to the above, 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. Commitments The Company leases certain buildings, machinery and equipment under various operating leases. Total rental expense for operating leases amounted to $7 million , $8 million , and $6 million in 2019 , 2018 and 2017 , respectively. See Note 5- Leases , for additional information on future minimum lease payments. At December 31, 2019 , the future minimum payments under purchase obligations were as follows: Purchase Obligations (a) 2020 $ 74,663 2021 48,881 2022 41,604 2023 29,376 2024 11,022 Thereafter 101,679 Total $ 307,225 (a) Purchase obligations primarily consist of payments expected to be made on natural gas, steam energy and wood chips purchase contracts. Obligations reported in the table are estimates and may vary based on changes in actual price and volumes terms. Guarantees and Other The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of December 31, 2019 , the Company had $37 million of 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 $86 million as of December 31, 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. The Company is liable for certain financing agreements related to its LTF joint venture. The Company’s portion of the guarantee related to LTF at December 31, 2019 was $31 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 not material 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. The Company currently employs approximately 4,000 people in the United States, Canada and France. As of December 31, 2019 , approximately 74 percent of the work force is unionized. As a result, the Company is required to negotiate wages, benefits and other terms with unionized employees collectively. As of December 31, 2019 , all of the Company’s collective bargaining agreements covering its unionized employees were current. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flows Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows Information | Supplemental Disclosures of Cash Flows Information Supplemental disclosures of cash flows information was comprised of the following for the three years ended December 31: 2019 2018 2017 Cash paid (received) during the period: Interest $ 59,434 $ 55,286 $ 35,451 Income taxes $ 3,266 $ 12,558 $ 5,992 Non-cash investing and financing activities: Capital assets purchased on account $ 14,769 $ 16,864 $ 12,083 Value of stock issued for Acquisition $ — $ — $ 141,192 |
Quarterly Results for 2019 and
Quarterly Results for 2019 and 2018 (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2019 and 2018 (Unaudited) | Quarterly Results for 2019 and 2018 (Unaudited) Quarter Ended March 30 June 29 September 28 December 31 Total Year 2019 Net Sales $ 441,060 $ 450,233 $ 416,129 $ 467,970 $ 1,775,392 Gross Margin $ 7,619 $ 17,979 $ 16,619 $ 11,930 $ 54,157 Operating Income $ (27,599 ) $ (15,320 ) $ (8,564 ) $ (31,635 ) $ (83,118 ) Income (loss) from continuing operations $ (27,987 ) $ (19,274 ) $ (14,353 ) $ (56,994 ) $ (118,608 ) Income from discontinued operations (c) $ 5,937 $ 4,357 $ 137 $ 85,727 $ 96,158 Net Income (Loss) $ (22,050 ) $ (14,917 ) $ (14,216 ) $ 28,733 $ (22,450 ) Basic earnings per share Continuing operations (b) $ (0.64 ) $ (0.46 ) $ (0.29 ) $ (0.91 ) $ (2.33 ) Discontinued operations $ 0.12 $ 0.09 $ — $ 1.36 $ 1.76 Total (b) $ (0.52 ) $ (0.37 ) $ (0.29 ) $ 0.45 $ (0.57 ) Diluted earnings per share: Continuing operations (b) $ (0.64 ) $ (0.46 ) $ (0.29 ) $ (0.91 ) $ (2.33 ) Discontinued operations $ 0.12 $ 0.09 $ — $ 1.36 $ 1.76 Total (b) $ (0.52 ) $ (0.37 ) $ (0.29 ) $ 0.45 $ (0.57 ) Quarter Ended March 31 June 30 September 29 December 31 Total Year 2018 Net Sales $ 479,491 $ 494,860 $ 501,298 $ 481,345 $ 1,956,994 Gross Margin $ 68,914 $ 87,677 $ 82,297 $ 52,259 $ 291,147 Operating Income $ 35,233 $ 52,859 $ 42,940 $ 16,783 $ 147,815 Income (loss) from continuing operations $ 17,746 $ 44,638 $ 29,968 $ 7,099 $ 99,451 Income from discontinued operations $ 6,709 $ 8,751 $ 7,969 $ 5,536 $ 28,965 Net Income $ 24,455 $ 53,389 $ 37,937 $ 12,635 $ 128,416 Basic earnings per share Continuing operations (a)(b) $ 0.28 $ 0.80 $ 0.52 $ 0.07 $ 1.70 Discontinued operations $ 0.13 $ 0.17 $ 0.16 $ 0.11 $ 0.57 Total (a)(b) $ 0.41 $ 0.97 $ 0.68 $ 0.18 $ 2.27 Diluted earnings per share: Continuing operations (a)(b) $ 0.28 $ 0.70 $ 0.47 $ 0.07 $ 1.52 Discontinued operations $ 0.10 $ 0.13 $ 0.13 $ 0.11 $ 0.44 Total (a)(b) $ 0.38 $ 0.83 $ 0.60 $ 0.18 $ 1.96 (a) Basic and diluted earnings per share for the second, third, and fourth quarters of 2018 and year ended December 31, 2018 included the impact of the repurchase and retirement of common stock as part of the Board of Directors authorized share buyback program. See Note 16 — Earnings per Share of Common Stock for additional information. (b) Basic and diluted earnings per share may include the impact of dividends on the Company’s Preferred Stock. As a result, quarterly EPS does not crossfoot to full-year EPS. See Note 16 — Earnings per Share of Common Stock for additional information. (c) Fourth quarter 2019 includes the gain from the sale of the Matane mill. See Note 3 — Discontinued Operations . |
Schedule II - Valuation and Qu
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Additions Description Balance at Beginning of Year Charged to Cost and Expenses Charged to Other Accounts Acquisition Deductions Balance at End of Year Allowance for doubtful accounts: Year ended December 31, 2019 $ 559 $ 232 $ 10 $ — $ (195 ) $ 606 Year ended December 31, 2018 $ 566 $ 239 $ (54 ) $ — $ (192 ) $ 559 Year ended December 31, 2017 $ 151 $ 410 $ 5 $ — $ — $ 566 Allowance for sales returns: Year ended December 31, 2019 $ 1,259 $ (346 ) $ — $ — $ (183 ) $ 730 Year ended December 31, 2018 $ 1,121 $ 969 $ — $ — $ (831 ) $ 1,259 Year ended December 31, 2017 $ 523 $ 598 $ — $ — $ — $ 1,121 Deferred tax asset valuation allowance: Year ended December 31, 2019 $ 85,938 $ 8,722 $ — $ — $ — $ 94,660 Year ended December 31, 2018 $ 92,081 $ — $ 3,715 $ — $ (9,858 ) $ 85,938 Year ended December 31, 2017 $ 20,821 $ — $ 873 $ 71,722 $ (1,335 ) $ 92,081 Self-insurance liabilities: Year ended December 31, 2019 $ 1,011 $ 622 $ — $ — $ (276 ) $ 1,357 Year ended December 31, 2018 $ 1,289 $ 348 $ — $ — $ (626 ) $ 1,011 Year ended December 31, 2017 $ 428 $ 1,660 $ — $ — $ (799 ) $ 1,289 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts and operations of the Company and its wholly owned, majority owned and controlled subsidiaries. The Company applies the equity method of accounting for investments in which it has an ownership interest from 20 percent to 50 percent or exercises significant influence over the related investee’s operations. All significant intercompany accounts and transactions are eliminated in consolidation. |
Discontinued Operations | As a result of the sale its Matane, Quebec, Canada high-yield pulp mill, the Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations. Unless otherwise stated, information in these notes to consolidated financial statements relates to continuing operations. The Company presents businesses that represent components as discontinued operations when they meet the criteria for held for sale or are sold, and their disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Fiscal Year | The Company’s fiscal year end is the last day of the calendar year. For interim reporting periods, the Company uses the last Saturday of the fiscal quarter. |
Subsequent Events | Events and transactions subsequent to the balance sheet date have been evaluated for potential recognition and disclosure through March 2, 2020 |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in using estimates and therefore, actual results could differ from those estimates. |
Translation of Foreign Currency | Assets and liabilities of consolidated subsidiaries whose functional currency is other than the U.S. dollar are translated into U.S. dollars using currency exchange rates at the balance sheet date. Revenues and expenses are translated using the average currency exchange rates during the period. Foreign currency translation gains and losses are reported as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”). Gains and losses resulting from foreign currency transactions are included in operating results as incurred. |
Cash and Cash Equivalents | Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less when purchased. |
Accounts Receivable and Allowance for Doubtful Accounts | Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company's allowance is established based on historical patterns of accounts receivable collections and general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of the Company’s receivables or a customer’s financial condition. Write-offs are recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. |
Inventory | Finished goods, work-in-process and raw materials inventories are valued at the lower of cost, as determined on the first-in, first-out basis, or market. Manufacturing and maintenance supplies are valued at average cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow-moving inventories is reviewed periodically. |
Property, Plant, Equipment and Depreciation and Maintenance Costs | Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. The Forest Products segment production related plant and equipment are depreciated using the straight-line method over 3 to 20 years. High Purity Cellulose, Paperboard and Pulp & Newsprint production related plant and equipment are depreciated using the units-of-production method. The total units of production used to calculate depreciation expense is determined by factoring annual production days, based on normal production conditions, by the economic useful life of the asset involved. Production related assets under finance leases are depreciated using the straight-line method over the related lease term. The Company depreciates its non-production assets, including office, lab and transportation equipment, using the straight-line depreciation method over 3 to 25 years. Buildings and land improvements are depreciated using the straight-line method over 15 to 35 years and 5 to 30 Gains and losses on the retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets that are held and used is measured by net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value exceeds the fair value of the assets, which is based on a discounted cash flows model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Maintenance Costs The Company performs scheduled inspections, repairs and maintenance of plant machinery and equipment at the Company’s High Purity, Paperboard and Pulp & Newsprint manufacturing facilities during a full plant shutdown. Costs associated with these planned outage periods are referred to as shutdown costs and are incurred to ensure the long-term reliability and safety of the manufacturing operations. Shutdown costs are accounted for using the deferral method, under which expenditures related to shutdown are capitalized in other assets when incurred and amortized to production costs on a straight-line basis over the period benefited, or the period of time until the next scheduled shutdown which can generally range from one year to eighteen months |
Intangible Assets | The Company has definite-life intangible assets which it acquired through a business combination. The definite-life intangible assets consist of customer lists and trade-names and are amortized over their estimated useful lives generally for periods ranging from 8 to 15 years. The Company evaluates the recovery of its definite-life intangible assets by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured, and, if the carrying amount exceeds the fair value, an impairment loss is recognized. |
Fair Value Measurements | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy that prioritizes the inputs used to measure fair value was established as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flows methodologies and similar techniques that use significant unobservable inputs. The valuation methodology used for measuring the fair value of these asset categories was as follows: Mutual funds — Net asset value in an observable market. Common collective trust funds — Common collective trusts are measured at NAV per share, as a practical expedient for fair value, as provided by the Plan trustee. The NAV is calculated by determining the fair value of the fund’s underlying assets, deducting its liabilities, and dividing by the units outstanding as of the valuation date. These funds are not publicly traded; however, in the majority of cases the unit price calculation is based on observable market inputs of the funds’ underlying assets. |
Derivative Instruments | Derivatives are recognized on the consolidated balance sheets at fair value and are classified according to their asset or liability position and the expected timing of settlement. Changes in the fair values of derivatives are recorded in net earnings or other comprehensive income based on whether the instrument is designated and effective as a hedge transaction and, if so, the type of hedge transaction. Gains or losses on derivative instruments reported in AOCI are reclassified to earnings in the period the hedged item affects earnings. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCI are reclassified to earnings at that time. Any ineffectiveness is recognized in earnings in the current period. |
Revenue Recognition | Revenue Recognition and Measurement The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018, using the modified retrospective basis. The core principle of ASC 606 is that a company should recognize revenue when it transfers control of goods or services to customers for an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company’s contracts have a single performance obligation to transfer products. Accordingly, it recognizes revenue when control has been transferred to the customer. Generally, control passes upon delivery to a location in accordance with terms and conditions of the sale. Changes in customer contract terms and conditions, as well as the timing of orders and shipments, may have an impact on the timing of revenue recognition. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring its products and is generally based upon contractual arrangements with customers or published indices. The Company sells its products both directly to customers and through distributors and agents typically under agreements with payment terms less than 90 days. The Company elected to account for shipping and handling as activities to fulfill the promise to transfer the goods. As such, shipping and handling costs incurred are recorded in cost of sales. In addition, the Company has excluded from net sales any value-add, sales and other taxes which we collect concurrent with its revenue-producing activities. The nature of the Company’s contracts may give rise to variable consideration, which may be constrained, including sales volume-based rebates to customers. The Company estimates the level of sales volumes based on anticipated purchases at the beginning of the period and records a rebate accrual for each purchase toward the requisite rebate volume. These estimated rebates are included in the transaction price as a reduction to net sales. We have certain contracts which contain performance obligations which are not significant in the context of the contract with the customer and have elected not to assess whether these promised goods or services are performance obligations. Contract liabilities primarily relate to prepayments received from our customers before revenue is recognized and sales volume rebates payable to customers. These amounts are included in accrued customer incentives and prepayments in the consolidated balance sheets (see Note 9 — Accrued and Other Current Liabilities ). The Company does not have any material contract assets as of December 31, 2019. These methodologies are consistent with the manner in which we have historically accounted for the recognition of revenue. |
Environmental Costs | The Company has established liabilities to assess, remediate, maintain and monitor sites related to disposed operations from which no current or future benefit is discernible. These obligations are established based on projected spending over the next 20 years and require significant estimates to determine the proper amount at any point in time. The projected period, from 2020 through 2040 , reflects the time during which potential future costs are both estimable and probable. As new information becomes available, these cost estimates are updated and the recorded liabilities are adjusted appropriately. Environmental liabilities are accounted for on an undiscounted basis and are reflected in current and non-current liabilities for disposed operations in the consolidated balance sheets. |
Employee Benefit Plans | The determination of expense and funding requirements for the Company’s defined benefit pension and postretirement health care and life insurance plans are largely based on a number of actuarial assumptions. The key assumptions include discount rate, return on assets, salary increases, health care cost trends, mortality rates, longevity and service lives of employees. The components of periodic pension and post retirement costs, other than service costs, are presented separately outside of operating income in “Other components of net periodic benefit costs” on the consolidated statement of income. The service cost component of net periodic benefit cost is presented in cost of sales and selling, general and administrative expense, which correlates with the related employee compensation costs arising from services rendered during the period. Only the service cost component of the net periodic benefit cost is eligible for capitalization in assets. Changes in the funded status of the Company’s plans are recorded through comprehensive income in the year in which the changes occur. Actuarial gains and losses, which occur when actual experience differs from actuarial assumptions, are reflected in stockholders’ equity, net of taxes. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, the Company will amortize them over the average future service period of employees. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not such deferred tax assets will not be realized. Interest expense and penalties, if applicable, related to unrecognized tax benefits are recorded in income tax expense. The Company’s income tax returns are subject to audit by U.S. federal and state taxing authorities as well as foreign jurisdictions, including Canada and France. In evaluating the tax benefits associated with various tax filing positions, the Company records a tax benefit for an uncertain tax position if it is more-likely-than-not to be realized upon ultimate settlement of the issue. The Company records a liability for an uncertain tax position that does not meet this criterion. The Company adjusts its liabilities for unrecognized tax benefits in the period in which it is determined the issue is settled with the taxing authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new facts or information becomes available. |
New or Recently Adopted Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses on Financial Instruments (Topic 326). The updated guidance is to be applied on a modified retrospective approach and is effective for years, and interim periods within those fiscal years, beginning after December 15, 2019. The update provides guidance on the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The amendment replaces the current incurred loss impairment approach with a methodology to reflect expected credit losses and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods therein. The Company anticipates the adoption of this new standard will not have a material impact, if any, to the Consolidated Financial Statements. Recently Adopted Accounting Pronouncements Leases The Company adopted ASU 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 assets and lease liability of $10 million and $11 million , respectively, and the reversal of deferred rent liability balances as of January 1, 2019. See Note 5 — Leases for additional information. Pension In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans , which amended the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update is effective for fiscal years ending after December 15, 2020, early adoption is permitted. The amendment removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. Entities are required to apply the amendment retrospectively for all periods presented. The Company elected to early adopt the new guidance in 2019. The adoption did not have a material impact on the Company’s consolidated financial statements. See Note 18 — Employee Benefit Plans, for additional information. Fair Value On August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement . This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. The Company adopted this ASU during the fourth quarter of 2019. The Company does not have any Level 3 items, as such, the adoption of this new standard did not have an impact on its financial statement disclosures. See Note 13 — Fair Value Measurements, for additional information. |
Fair Value of Financial Instruments | The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amount is equal to fair market value. 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 12 — 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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents the major classes of assets and liabilities of discontinued operations that are classified as held for sale as of December 31, 2018: December 31, 2018 Accounts receivable, net $ 23,093 Inventory 17,349 Prepaid and other current assets 2,058 Total current assets 42,500 Property, plant and equipment, net 17,482 Deferred tax assets 31,486 Other assets 2,239 Total assets $ 93,707 Accounts payable $ 11,035 Accrued and other current liabilities 3,786 Other current liabilities 1,415 Total current liabilities 16,236 Other long-term liabilities 5,548 Total liabilities $ 21,784 Income (loss) from discontinued operations is comprised of the following: Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Revenues $ 127,561 $ 177,419 $ 20,917 Cost of sales (106,572 ) (124,396 ) (18,618 ) Gross margin 20,989 53,023 2,299 Selling, general and administrative expenses and other (1,536 ) (3,196 ) 173 Operating income (loss) 19,453 49,827 2,472 Interest expense (a) (3,957 ) (4,485 ) (482 ) Other non-operating income 321 377 45 Income from discontinued operations before income taxes 15,817 45,719 2,035 Income tax expense (4,096 ) (16,754 ) (498 ) Income from discontinued operations, net of taxes 11,721 28,965 1,537 Gain from sale of discontinued operation, pre-tax 118,888 — — Income tax expense on gain (34,451 ) — — Gain from sale of discontinued operations, net of tax 84,437 — — Income from Discontinued Operations $ 96,158 $ 28,965 $ 1,537 (a) The Company was required to repay $100 million of debt from proceeds received from the sale of Matane. As such, interest expense has been allocated to discontinued operations using the weighted-average interest rates in effect for each period presented based on the proportionate amounts required to be repaid. Other discontinued operations information is as follows: Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Depreciation and amortization $ 1,590 $ 2,459 $ 317 Capital expenditures $ 2,956 $ 3,662 $ 87 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and New Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Definite-Lived Intangible Assets | The Company’s definite-lived intangible assets are summarized as follows (in thousands): December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life Customer Lists $ 51,680 $ (13,613 ) $ 38,067 5.9 years Trade Names 8,604 (1,220 ) 7,384 12.9 years Total Definite-Lived Intangibles $ 60,284 $ (14,833 ) $ 45,451 7.0 years December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life Customer Lists $ 51,680 $ (7,179 ) $ 44,501 6.9 years Trade Names 8,604 (645 ) 7,959 13.9 years Total Definite-Lived Intangibles $ 60,284 $ (7,824 ) $ 52,460 8.0 years |
Tembec Acquisition (Tables)
Tembec Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following presents the unaudited pro forma consolidated financial information of the Company as if the acquisition of Tembec was completed on January 1, 2017. The unaudited pro forma financial information includes adjustments for the pro forma year ended December 31, 2017 for (i) depreciation on acquired property, plant and equipment of $15 million ; (ii) amortization of intangible assets recorded at the date of the transactions of $7 million ; (iii) the elimination of acquisition related costs of $49 million and the fair value write-up of inventory of $23 million ; (iv) the elimination of interest expense related to Tembec debt that was paid off, net of interest expense associated with financing the acquisition of $38 million ; (v) the elimination of the gain on bargain purchase and (vi) total weighted average shares outstanding related to the acquisition. This information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on January 1, 2017. Year Ended December 31, 2017 Unaudited pro forma net revenue (includes the results of the Matane mill) $ 2,122,000 Unaudited pro forma net income attributable to the Company $ 111,000 Unaudited pro forma basic net income per share $ 1.92 Unaudited pro forma diluted net income per share $ 1.76 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The Company’s operating and finance lease cost is as follows: Year Ended December 31, 2019 Operating Leases Operating lease expense $ 6,474 Finance Leases Amortization of ROU assets 306 Interest 209 Total $ 6,989 |
Balance Sheet Components | The Company’s balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification December 31, 2019 Right-of-use assets Other assets $ 22,406 Lease liabilities, current Accrued and other current liabilities $ 5,887 Lease liabilities, non-current Other non-current liabilities $ 17,522 |
Operating Lease Maturity | As of December 31, 2019 , operating lease maturities for 2020 through 2024 and thereafter are as follows: December 31, 2019 2020 $ 7,093 2021 6,148 2022 5,661 2023 4,680 2024 1,532 Thereafter 1,586 Total minimum lease payments 26,700 Less: imputed interest (3,291 ) Present value of future minimum lease payments $ 23,409 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The Company’s accounts receivable included the following for the years ended December 31 : 2019 2018 Accounts receivable, trade $ 142,181 $ 146,056 Accounts receivable, other (a) 40,082 53,787 Allowance for doubtful accounts (605 ) (559 ) Total accounts receivable, net $ 181,658 $ 199,284 (a) Accounts receivable, other consists primarily of value added/consumption taxes, government grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company’s inventory included the following for the years ended December 31 : 2019 2018 Finished goods $ 150,259 $ 203,350 Work-in-progress 17,065 21,478 Raw materials 73,385 68,656 Manufacturing and maintenance supplies 10,471 10,544 Total inventory $ 251,180 $ 304,028 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The Company’s property, plant and equipment included the following as of December 31, : 2019 2018 Land and land improvements $ 29,912 $ 22,476 Buildings 248,395 246,971 Machinery and equipment 2,453,568 2,389,250 Other 20,063 23,138 Construction in progress 46,378 67,559 Total property, plant and equipment, gross 2,798,316 2,749,394 Accumulated depreciation (1,482,261 ) (1,385,837 ) Total property, plant and equipment, net $ 1,316,055 $ 1,363,557 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | The Company’s accrued and other current liabilities included the following as of December 31, : 2019 2018 Accrued customer incentives and prepayments $ 31,696 $ 41,734 Accrued payroll and benefits 23,593 29,567 Accrued interest 2,785 3,170 Foreign currency forward contracts 995 16,767 Accrued property taxes 5,643 10,663 Other current liabilities 37,466 44,254 Total accrued and other current liabilities $ 102,178 $ 146,155 |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt and finance leases include the following for the years ended December 31 ,: 2019 2018 U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 $ — $ — Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 — — Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 133,283 160,000 Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 365,592 438,875 Senior Notes due 2024 at a fixed interest rate of 5.50% 495,647 495,647 Canadian dollar based, fixed rate term loans with interest rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028 83,122 91,304 Other loans 7,285 3,777 Finance lease obligations 2,818 3,124 Total principal payments due 1,087,747 1,192,727 Less: debt premium, original issue discount and issuance costs (5,604 ) (4,558 ) Total debt 1,082,143 1,188,169 Less: current maturities of long-term debt (19,448 ) (15,012 ) Long-term debt $ 1,062,695 $ 1,173,157 |
Schedule of Debt and Capital Lease Payments | Debt and finance lease payments due during the next five years and thereafter are as follows: Finance Lease Minimum Lease Payments Less: Interest Net Present Value Debt Principal Payments 2020 $ 515 $ 187 $ 328 $ 18,258 2021 515 163 352 9,078 2022 515 138 377 159,927 2023 515 110 405 7,169 2024 515 81 434 868,306 Thereafter 988 66 922 22,191 Total payments $ 3,563 $ 745 $ 2,818 $ 1,084,929 |
Liabilities for Disposed Oper_2
Liabilities for Disposed Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Activity for Specific Sites Where Current Estimates Exceed Ten Percent of Liabilities | The following table provides detail for specific sites where current estimates exceed 10 percent of the total liabilities for disposed operations at December 31, 2019 , 2018 , or 2017 . An analysis of the activity of the liabilities for disposed operations for the years ended December 31, 2019 and 2018 is as follows: December 31, 2017 Liability Payments Increase (Decrease) to Liabilities (a) December 31, 2018 Liability Payments Increase (Decrease) to Liabilities (a) December 31, 2019 Liability Port Angeles, Washington $ 43,667 $ (935 ) $ 2,067 $ 44,799 $ (1,404 ) $ 11,045 $ 54,440 Augusta, Georgia 21,175 (929 ) 108 20,354 (683 ) 1,876 21,547 Baldwin, Florida 21,170 (4,613 ) 687 17,244 (450 ) 383 17,177 All other sites 78,074 (5,489 ) 5,672 78,257 (3,907 ) 3,862 78,212 Total 164,086 $ (11,966 ) $ 8,534 160,654 $ (6,444 ) $ 17,166 171,376 Less: Current portion (13,181 ) (11,310 ) (11,339 ) Non-Current portion $ 150,905 $ 149,344 $ 160,037 (a) Included in the Increase (Decrease) to Liabilities during the year ended December 31, 2019 and 2018 is a $1 million increase and a $1 million decrease of the liability, respectively, due to foreign currency gains and losses. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts and maturity dates of outstanding derivative instruments as of December 31, 2019 and 2018 are presented below. December 31, 2019 December 31, 2018 Interest rate swaps (a) $ 200,000 $ 200,000 Foreign currency contracts (b) $ 343,665 $ 388,930 Foreign cross-currency contracts (c) $ 83,126 $ 125,979 (a) Maturity date of December 2020 (b) Various maturity dates through September 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 December 31, 2019 and 2018 are provided in the below table. See Note 13 — Fair Value Measurements for additional information related to the Company’s derivatives. Balance Sheet Location December 31, 2019 December 31, 2018 Assets: Derivatives designated as hedging instruments: Interest rate swaps Other current assets $ — $ 1,194 Interest rate swaps Other assets — 937 Foreign exchange forward contracts Other current assets 4,857 — Foreign exchange forward contracts Other assets 5 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 246 7 Liabilities: Derivatives designated as hedging instruments: Interest rate swaps Other current liabilities (639 ) — Foreign exchange forward contracts Other current liabilities (340 ) (16,408 ) Foreign exchange forward contracts Other non-current liabilities (759 ) (3,105 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities (16 ) (360 ) Total derivatives $ 3,354 $ (17,735 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The effects of derivative instruments designated as cash flow hedges, the related changes in AOCI and the gains and losses in income for the years ended December 31, 2019 and 2018 were as follows: Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) December 31, 2019 Interest rate swaps $ (2,083 ) Interest expense $ 688 $ — Foreign currency contracts $ 2,382 Other operating expense, net $ 854 — Foreign currency contracts $ 10,006 Cost of sales $ (10,006 ) — Foreign currency contracts $ 2,517 Interest income and other, net $ 3,537 — December 31, 2018 Interest rate swaps $ 1,446 Interest expense $ 64 $ — Foreign currency contracts $ (23,603 ) Other operating expense, net $ 752 — Foreign currency contracts $ 3,843 Cost of sales $ (3,843 ) — Foreign currency contracts $ (4,672 ) Interest income and other, net $ (3,599 ) — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statement of Financial Performance | The effects of derivative instruments not designated as hedging instruments on the statement of income for the years ended December 31, 2019 and 2018 were as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative December 31, 2019 December 31, 2018 Foreign exchange contracts Other operating expense, net $ 416 $ (3,009 ) |
Schedule of Cash Flow Hedging Instruments, Statement Financial Position | The after-tax amounts of unrealized gains in AOCI related to hedge derivatives at December 31, 2019 and 2018 are presented below: December 31, 2019 December 31, 2018 Unrealized gains from interest rate cash flow hedges $ (499 ) $ 1,663 Unrealized gains from foreign currency cash flow hedges $ 1,789 $ (13,285 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at December 31, 2019 and 2018 , using market information and what management believes to be appropriate valuation methodologies discussed in further detail below: December 31, 2019 December 31, 2018 Carrying Amount Fair Value (c) Carrying Amount Fair Value (c) Level 1 Level 2 Level 1 Level 2 Assets: Cash and cash equivalents $ 64,025 $ 64,025 $ — $ 108,966 $ 108,966 $ — Interest rate swaps (a) $ — $ — $ — $ 2,131 $ — $ 2,131 Foreign currency forward contracts (a) $ 5,108 $ — $ 5,108 $ 7 $ — $ 7 Liabilities (b): Interest rate swaps (a) $ 639 $ — $ 639 $ — $ — $ — Foreign currency forward contracts (a) $ 1,115 $ — $ 1,115 $ 19,873 $ — $ 19,873 Fixed-rate long-term debt $ 585,027 $ — $ 465,449 $ 585,824 $ — $ 541,267 Variable-rate long-term debt $ 494,299 $ — $ 498,875 $ 599,221 $ — $ 602,652 (a) These items represent derivative instruments. (b) Liabilities excludes finance lease obligation. (c) The Company did not have Level 3 assets or liabilities at December 31, 2019 and 2018. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' (Deficit) Equity | An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Preferred Stock Additional Paid in Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Par Value Shares Par Value Balance, December 31, 2016 43,261,905 $ 433 1,725,000 $ 17 $ 242,402 $ 78,977 $ (110,080 ) $ 211,749 Net income — — — — — 324,964 — 324,964 Other comprehensive loss, net of tax — — — — — — 33,929 33,929 Common stock issued at Acquisition 8,439,452 84 — — 141,108 — — 141,192 Issuance of common stock under incentive stock plans 27,131 — — — 14 — — 14 Stock-based compensation — — — — 8,986 — — 8,986 Repurchase of common stock (11,346 ) — — — (157 ) — — (157 ) Common stock dividends ($0.28 per share) — — — — — (13,121 ) — (13,121 ) Preferred stock dividends ($8.00 per share) — — — — — (13,800 ) — (13,800 ) Balance, December 31, 2017 51,717,142 517 1,725,000 17 392,353 377,020 (76,151 ) 693,756 Net income — — — — — 128,416 — 128,416 Other comprehensive loss, net of tax — — — — — — (57,121 ) (57,121 ) Issuance of common stock under incentive stock plans 301,560 3 — — 448 — — 451 Stock-based compensation — — — — 13,007 — — 13,007 Repurchase of common stock (2,727,572 ) (27 ) — — (6,318 ) (36,435 ) — (42,780 ) ASU 2018-02 adoption — — — — — 22,425 (22,425 ) — Common stock dividends ($0.28 per share) — — — — — (15,058 ) — (15,058 ) Preferred stock dividends ($8.00 per share) — — — — — (13,800 ) — (13,800 ) Balance, December 31, 2018 49,291,130 493 1,725,000 17 399,490 462,568 (155,697 ) 706,871 Net income — — — — — (22,450 ) — (22,450 ) Other comprehensive income, net of tax — — — — — — 16,470 16,470 Preferred stock converted to common stock 13,361,678 133 (1,725,000 ) (17 ) (116 ) — — — Issuance of common stock under incentive stock plans 978,091 10 — — (10 ) — — — Stock-based compensation — — — — 6,531 — — 6,531 Repurchase of common stock (494,770 ) (4 ) — — (6,875 ) — — (6,879 ) Common stock dividends ($0.14 per share) — — — — — (7,395 ) — (7,395 ) Preferred stock dividends ($6.00 per share) — — — — — (10,350 ) — (10,350 ) Balance, December 31, 2019 63,136,129 $ 632 — $ — $ 399,020 $ 422,373 $ (139,227 ) $ 682,798 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | AOCI was comprised of the following for the three years ended December 31 : 2019 2018 2017 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (135,590 ) $ (81,638 ) $ (110,080 ) Other comprehensive gain (loss) before reclassifications (8,119 ) (53,278 ) 26,050 Income tax on other comprehensive loss 2,413 12,160 (5,731 ) Reclassifications to earnings: (a) Pension settlement loss (d) 8,787 — — Amortization of losses 9,889 11,877 11,984 Amortization of prior service costs 693 572 763 Amortization of negative plan amendment — (153 ) (153 ) Income tax on reclassifications (4,711 ) (2,705 ) (4,471 ) Net comprehensive gain (loss) on employee benefit plans, net of tax 8,952 (31,527 ) 28,442 ASU 2018-02 adoption (c) — (22,425 ) — Balance, end of year (126,638 ) (135,590 ) (81,638 ) Unrealized gain on derivative instruments, net of tax: Balance, beginning of year (11,622 ) 619 — Other comprehensive income before reclassifications 12,822 (22,985 ) 749 Income tax on other comprehensive income (3,076 ) 5,372 (130 ) Reclassifications to earnings: (b) Interest rate contracts (688 ) (64 ) — Foreign exchange contracts 5,615 6,690 — Income tax on reclassifications (1,761 ) (1,254 ) — Net comprehensive gain on derivative instruments, net of tax 12,912 (12,241 ) 619 Balance, end of year (b) 1,290 (11,622 ) 619 Foreign currency translation: Balance, beginning of year (8,485 ) 4,868 — Foreign currency translation, net of tax effects of $0, $0, and $0 (5,394 ) (13,353 ) 4,868 Balance, end of year (13,879 ) (8,485 ) 4,868 Accumulated other comprehensive income (loss), end of year $ (139,227 ) $ (155,697 ) $ (76,151 ) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic pension cost. See Note 18 — 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. Additional details about the reclassifications related to derivative instruments is included in Note 12 — Derivative Instruments . There were no reclassifications to earnings for derivative instruments during the year ended December 31, 2017. (c) Represents a reclassification to retained earnings from the adoption of ASU No. 2018-02. (d) In October 2019, the Company purchased annuity contracts from a third-party insurance company who has assumed responsibility for future pension benefits for certain participants in our Canadian defined benefit plans. As a result, we recognized a loss on the settlement and de-recognition of the projected benefit obligation. See Note 18 — Employee Benefit Plans . |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted EPS | The following table provides details of the calculations of basic and diluted EPS for the three years ended December 31: 2019 2018 2017 Income (loss) from continuing operations $ (118,608 ) $ 99,451 $ 323,427 Less: Preferred Stock dividends (8,582 ) (13,800 ) (13,800 ) Income (loss) from continuing operations attributable to common stockholders $ (127,190 ) $ 85,651 $ 309,627 Income from discontinued operations 96,158 28,965 1,537 Net income (loss) available for common stockholders (31,032 ) 114,616 311,164 Shares used for determining basic earnings per share of common stock 54,511,863 50,602,480 43,416,868 Dilutive effect of: Stock options — 1,307 — Performance and restricted shares — 1,431,794 1,113,866 Preferred Stock — 13,361,678 11,371,718 Shares used for determining diluted earnings per share of common stock 54,511,863 65,397,259 55,902,452 Basic earnings per share (not in thousands) Income (loss) from continuing operations $ (2.33 ) $ 1.70 $ 7.13 Income from discontinued operations 1.76 0.57 0.04 Net income (loss) $ (0.57 ) $ 2.27 $ 7.17 Diluted earnings per share (not in thousands) Income (loss) from continuing operations $ (2.33 ) $ 1.52 $ 5.78 Income from discontinued operations 1.76 0.44 0.03 Net income (loss) $ (0.57 ) $ 1.96 $ 5.81 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share for the three years ended December 31, are as follows: 2019 2018 2017 Stock options 205,026 260,033 373,058 Performance and restricted shares 494,469 398,004 798 Total 699,495 658,037 373,856 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity is presented below for the year ended December 31, 2019 : Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2019 286,613 $ 34.23 Forfeited — — Exercised — — Expired (81,587 ) 29.54 Outstanding at December 31, 2019 205,026 $ 36.10 2.4 $ — Options vested and expected to vest 205,026 $ 36.10 2.4 $ — Options exercisable at December 31, 2019 205,026 $ 36.10 2.4 $ — |
Summary of Additional Information for Stock Options Granted to Employees | A summary of additional information pertaining to stock options granted to employees is presented below: 2019 2018 2017 Intrinsic value of options exercised $ — $ 108 $ 1 Fair value of options vested $ — $ — $ 210 |
Summary of Activity for Restricted Shares Granted to Employees | The following table summarizes the activity of restricted stock and stock units granted to employees for the three years ended December 31 : 2019 2018 2017 Restricted stock and stock units granted 395,260 301,384 285,506 Weighted average price of restricted stock or units granted $ 11.99 $ 19.73 $ 13.37 Intrinsic value of restricted stock and units outstanding $ 3,201 $ 9,767 $ 17,349 Fair value of restricted stock and units vested $ 4,881 $ 3,753 $ 1,119 |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock and stock units activity is presented below for the year ended December 31, 2019 : Restricted Stock and Stock Units Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 917,098 $ 13.71 Granted 395,260 11.99 Forfeited (20,014 ) 15.06 Vested (458,748 ) 10.64 Outstanding at December 31, 2019 833,596 $ 14.55 |
Summary of Activity for Performance Shares Granted to Employees | The following table summarizes the activity of the Company’s performance-based stock units awarded to its employees for the three years ended December 31 : 2019 2018 2017 Common shares of stock reserved for performance-based stock units 980,641 1,115,747 896,121 Weighted average fair value of performance-based stock units granted $ 14.98 $ 22.75 $ 14.60 Intrinsic value of outstanding performance-based stock units $ 4,572 $ 4,774 $ 7,408 |
Summary of Performance Share Activity | A summary of the Company’s performance-based stock unit award activity is presented below for the year ended December 31, 2019 : Performance-Based Stock Units Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 1,325,894 $ 14.69 Granted 400,404 14.98 Forfeited (15,605 ) 16.90 Vested (520,167 ) 7.80 Outstanding at December 31, 2019 1,190,526 $ 17.77 |
Summary of Performance Share Assumptions Used in Fair Value Calculation | The following chart provides a tabular overview of the weighted average assumptions used in calculating the fair value of the awards granted for the three years ended December 31 : 2019 2018 2017 Expected volatility 49.5 % 68.7 % 70.2 % Risk-free rate 2.5 % 2.4 % 1.5 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligation | The following tables set forth the changes in the projected benefit obligation and plan assets and reconciles the funded status and the amounts recognized in the Consolidated Balance Sheets for the defined benefit pension and postretirement plans for the two years ended December 31 : Pension Postretirement Change in Projected Benefit Obligation 2019 2018 2019 2018 Projected benefit obligation at beginning of year $ 1,013,541 $ 1,112,785 $ 41,243 $ 45,449 Service cost 9,857 11,663 1,849 1,716 Interest cost 36,138 35,499 1,432 1,327 Actuarial loss (gain) 101,576 (44,976 ) (39 ) (2,720 ) Participant contributions 900 905 130 360 Benefits paid (55,801 ) (59,531 ) (2,824 ) (3,418 ) Plan amendment 1,693 — — — Settlement (222,342 ) — (146 ) — Effects of foreign currency exchange rates 22,811 (42,804 ) 926 (1,471 ) Projected benefit obligation at end of year $ 908,373 $ 1,013,541 $ 42,571 $ 41,243 |
Schedule of Changes in Fair Value of Plan Assets | Change in Plan Assets Fair value of plan assets at beginning of year $ 844,588 $ 979,269 $ — $ — Actual return on plan assets 148,226 (44,167 ) — — Employer contributions 8,899 9,109 2,694 3,059 Participant contributions 900 905 130 360 Benefits paid (55,801 ) (59,316 ) (2,824 ) (3,419 ) Settlement (222,342 ) — — — Effects of foreign currency exchange rates 21,388 (41,212 ) — — Fair value of plan assets at end of year $ 745,858 $ 844,588 $ — $ — |
Schedule of Funded Status | Funded Status at end of year: $ (162,515 ) $ (168,953 ) $ (42,571 ) $ (41,243 ) |
Schedule of Amounts Recognized in Consolidated Balance Sheet | Pension Postretirement Amounts recognized in the Consolidated Balance Sheets consist of: 2019 2018 2019 2018 Non-current assets $ 37,505 $ 30,395 $ — $ — Current liabilities (3,745 ) (3,773 ) (2,221 ) (3,160 ) Non-current liabilities (196,275 ) (195,575 ) (40,350 ) (38,083 ) Net amount recognized $ (162,515 ) $ (168,953 ) $ (42,571 ) $ (41,243 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Net gains (losses) recognized in other comprehensive income for the three years ended December 31 are as follows: Pension Postretirement 2019 2018 2017 2019 2018 2017 Net gains (losses) $ (6,294 ) $ (55,918 ) $ 24,411 $ (97 ) $ 2,640 $ 1,639 Prior service (costs) gains $ (1,728 ) $ — $ — $ — $ — $ — Net gains or losses and prior service costs or credits reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows: Pension Postretirement 2019 2018 2017 2019 2018 2017 Pension settlement loss (a) $ 8,787 $ — $ — $ — $ — $ — Amortization of losses 10,244 11,648 11,651 81 229 333 Amortization of prior service (credit) cost 846 572 761 (153 ) (153 ) (151 ) (a) In October 2019, the Company purchased annuity contracts from a third-party insurance company who has assumed responsibility for future pension benefits for certain participants in our Canadian defined benefit plans. As required under ASC 715 Compensation-Retirement Benefits, we recognized a loss in the fourth quarter of 2019 on the settlement and de-recognition of the projected benefit obligation. |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Net losses, prior service costs or credits and plan amendments that have not yet been included in pension and postretirement expense for the two years ended December 31 which have been recognized as a component of AOCI are as follows: Pension Postretirement 2019 2018 2019 2018 Prior service cost $ (2,842 ) $ (1,681 ) $ 1,185 $ 1,338 Net losses (160,058 ) (172,484 ) (2,266 ) (2,280 ) Deferred income tax benefit 37,050 39,299 293 218 Accumulated other comprehensive income (loss) $ (125,850 ) $ (134,866 ) $ (788 ) $ (724 ) |
Schedule of Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets | For defined benefit pension plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the years ended December 31 : 2019 2018 Projected benefit obligation $ 907,755 $ 740,287 Accumulated benefit obligation $ 871,291 $ 714,891 Fair value of plan assets $ 744,662 $ 540,944 |
Schedule of Net Benefit Costs | The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31 : Pension Postretirement Components of Net Periodic Benefit Cost 2019 2018 2017 2019 2018 2017 Service cost $ 9,857 $ 11,663 $ 5,646 $ 1,849 $ 1,716 $ 1,249 Interest cost 36,138 35,499 15,926 1,432 1,327 827 Expected return on plan assets (52,343 ) (57,438 ) (25,978 ) — — — Amortization of prior service (credit) cost 569 572 761 (153 ) (153 ) (151 ) Amortization of losses 10,363 11,648 11,651 81 229 333 Pension settlement loss 8,787 — — — — — Net periodic benefit cost (a) $ 13,371 $ 1,944 $ 8,006 $ 3,209 $ 3,119 $ 2,258 (a) |
Schedule of Assumptions Used | The following table sets forth the weighted average principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31 : Pension Postretirement 2019 2018 2017 2019 2018 2017 Assumptions used to determine benefit obligations at December 31: Discount rate 3.46 % 3.99 % 3.55 % 3.20 % 3.82 % 3.14 % Rate of compensation increase 2.67 % 2.61 % 2.60 % 3.63 % 3.68 % 3.10 % Assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.91 % 3.42 % 3.77 % 3.91 % 3.40 % 3.64 % Expected long-term return on plan assets 6.37 % 6.32 % 7.38 % N/A N/A N/A Rate of compensation increase 2.67 % 2.61 % 2.59 % 3.63 % 3.68 % 3.10 % |
Schedule of Health Care Cost Trend Rates | The following table sets forth the assumed health care cost trend rates as of December 31 : Postretirement 2019 2018 U.S. Canada U.S. Canada Health care cost trend rate assumed for next year 7.00 % 6.50 % 7.50 % 5.00 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.00 % 4.50 % 5.00 % 4.50 % Year that ultimate trend rate is reached 2024 2021-2022 2024 2019 |
Schedule of Allocation of Plan Assets | The following table sets forth by level, within the fair value hierarchy (see Note 2 — Summary of Significant Accounting Policies and New Accounting Pronouncements for definition), the assets of the plans as of December 31, 2019 and 2018 . Fair Value at December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 128,000 $ — $ — $ 128,000 Investments at net asset value: Common collective trust funds 617,858 Total assets at fair value $ 745,858 Fair Value at December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Mutual funds $ 172,870 $ — $ — $ 172,870 Investments at net asset value: Common collective trust funds 671,718 Total assets at fair value $ 844,588 December 31, 2019 and 2018 , by asset category are as follows: Percentage of Plan Assets Asset Category 2019 2018 U.S. equity securities 25 % 22 % International equity securities 31 % 24 % U.S. fixed income securities 19 % 13 % International fixed income securities 21 % 36 % Other 4 % 5 % Total 100 % 100 % |
Schedule of Expected Benefit Payments | Expected benefit payments for the next ten years are as follows: Pension Benefits Postretirement Benefits 2020 $ 45,443 $ 2,988 2021 44,157 2,863 2022 45,396 2,902 2023 46,400 2,798 2024 47,098 2,730 2025 — 2029 243,013 12,990 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Summary of Other Operating Expense, Net | Other operating expense, net was comprised of the following for the three years ended December 31: 2019 2018 2017 Environmental liability expense (a) $ (17,832 ) $ (8,332 ) $ (1,451 ) Loss on sale or disposal of property, plant and equipment (1,295 ) (3,186 ) (2,032 ) Gain on foreign exchange (3,203 ) 1,114 2,335 Equity income (loss) from joint venture (5,089 ) (4,359 ) (495 ) Insurance settlement 4,500 — (13 ) Miscellaneous income (expense) (2,078 ) 2,341 382 Total other operating expense, net $ (24,997 ) $ (12,422 ) $ (1,274 ) (a) Environmental liability expense reflects the adjustments to the Company’s estimates for environmental liability for the assessment, remediation and long-term monitoring and maintenance of the disposed operations sites over the next 20 years and other related costs. See Note 11 — Environmental Liabilities |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Income tax benefit (expense) from continuing operations for the three years ended December 31 are as follows: 2019 2018 2017 Current Federal $ 7,789 $ (8,630 ) $ 10,871 Foreign (4,201 ) (10,115 ) (121 ) State and other 536 (657 ) (201 ) 4,124 (19,402 ) 10,549 Deferred Federal 2,471 4,238 (34,635 ) Foreign 22,702 (11,901 ) 4,563 State and other 379 25 290 25,552 (7,638 ) (29,782 ) Income tax expense $ 29,676 $ (27,040 ) $ (19,233 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate for the three years ended December 31 is as follows: 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Nontaxable bargain purchase gain (a) — (4.2 ) (32.3 ) Change in valuation allowance (b) (8.6 ) — — Tax credits (excluding FTC) 3.1 (3.0 ) (1.5 ) State credits 2.8 — — U.S. federal rate change (c) — — 3.2 Difference in foreign statutory rates 2.3 5.9 — Global Intangible Low Taxed Income (Net of FTC) — 3.7 — Book tax differences related to joint venture — 2.0 — Net changes in uncertain tax positions (1.2 ) (3.1 ) — Adjustment to previously filed tax returns 0.1 (2.4 ) (0.1 ) Other 0.5 1.5 1.3 Income tax rate as reported 20.0 % 21.4 % 5.6 % (a) The bargain purchase gain from the acquisition of Tembec of $20 million and $317 million during the years ended December 31, 2018 and 2017, respectively, was not taxable resulting in a decrease in the income tax rate. (b) Each quarter, the Company evaluates both positive and negative evidence related to the likelihood of realization of the deferred tax assets in order to determine, based on all available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. In the year ended December 31, 2019, the Company established a new valuation allowance in the amount of $16 million against deferred tax assets associated with deferred U.S deductions of interest. The realizable amount of these deferred interest deductions could be positively or negatively impacted by future U.S. tax guidance, changes in U.S. taxable earnings, or changes in U.S. interest expense. (c) The income tax rate for the year ended December 31, 2017 was impacted by the Tax Cuts and Jobs Act through a decrease in the federal tax rate from 35 percent to 21 percent . Income tax expense of $11 million for the re-measurement of the deferred tax assets was recorded during the year ended December 31, 2017. This expense is the result of previously recorded deferred tax deductions which will now result in a lower after-tax benefit due to the reduced rate. |
Schedule of Temporary Differences and Resulting Deferred Tax Liability | The nature of the temporary differences and the resulting net deferred tax liability for the two years ended December 31 were as follows: 2019 2018 Gross deferred tax assets: U.S. federal and Canadian net operating losses (a) $ 205,563 $ 203,330 Canadian pool of scientific research and experimentation deductions ("SR&ED") (a) 87,315 87,253 Tax credit carryforwards (a) 74,503 80,182 Property, plant and equipment basis differences 66,653 57,073 Pension, postretirement and other employee benefits 52,126 56,687 Environmental liabilities 39,118 36,583 Deferred interest deductions (a) 15,537 5,820 Capitalized costs 2,979 5,275 State net operating losses (a) 3,249 2,942 Other 12,818 9,738 Total gross deferred tax assets 559,861 544,883 Less: valuation allowance (a) (94,660 ) (85,938 ) Total deferred tax assets after valuation allowance 465,201 458,945 Gross deferred tax liabilities: Property, plant and equipment basis differences (90,290 ) (92,857 ) Intangible assets (12,284 ) (15,579 ) Other (2,961 ) (3,054 ) Total gross deferred tax liabilities (105,535 ) (111,490 ) Net deferred tax asset $ 359,666 $ 347,455 Included in: Deferred tax assets $ 384,513 $ 375,471 Deferred tax liabilities (24,847 ) (28,016 ) $ 359,666 $ 347,455 (a) The following relates to net operating losses, tax credits, and certain other carryforwards as of December 31, 2019 : Gross Amount Tax Effected Valuation Allowance Expiration Foreign R&D credit carryforwards $ 49,143 $ 49,143 $ (49,143 ) 2019-2037 State tax credit carryforwards $ 24,260 $ 24,260 $ (24,018 ) 2019-2028 State net operating losses $ 71,521 $ 3,249 $ (2,782 ) 2019-2039 Canada non-capital losses $ 910,097 $ 201,504 $ (3,180 ) 2026-2039 Canadian pool of SR&ED $ 407,587 $ 87,315 $ — None Interest limitation carryforward $ 70,624 $ 15,537 $ (15,537 ) None U.S. Federal net operating losses $ 19,329 $ 4,059 $ — None |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending unrecognized tax benefits for the three years ended December 31 is as follows: 2019 2018 2017 Balance at January 1, $ 8,844 $ 23,804 $ — Decreases related to prior year tax positions (193 ) (17,872 ) — Increases related to prior year tax positions 1,904 1,137 11,171 Increases related to current year tax positions — 1,775 12,633 Balance at December 31, $ 10,555 $ 8,844 $ 23,804 |
Summary of Income Tax Examinations | table provides detail of tax years that remain open to examination by significant taxing jurisdictions: Taxing Jurisdiction Open Tax Years U.S. 2014-2019 France 2017-2019 Canada 2015-2019 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Net sales, disaggregated by product-line, was comprised of the following for the three years ended December 31 : 2019 2018 2017 Net sales: High Purity Cellulose Cellulose Specialties $ 765,077 $ 831,805 $ 661,760 Commodity Products 279,527 243,711 183,208 Other sales (a) 82,383 116,873 21,893 Total High Purity Cellulose 1,126,987 1,192,389 866,861 Forest Products Lumber 230,360 284,418 25,880 Other sales (b) 68,753 71,242 8,065 Total Forest Products 299,113 355,660 33,945 Paperboard Paperboard 199,987 196,866 18,875 Pulp & Newsprint Pulp 127,784 169,025 17,553 Newsprint 87,188 113,275 10,576 Total Pulp & Newsprint 214,972 282,300 28,129 Corporate Eliminations (65,667 ) (70,221 ) (7,394 ) Total net sales $ 1,775,392 $ 1,956,994 $ 940,416 (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 by segment was comprised of the following for the years ended December 31 : 2019 2018 2017 Operating income: High Purity Cellulose $ 6,588 $ 112,308 $ 120,356 Forest Products (30,904 ) 24,850 (4 ) Paperboard 4,120 4,392 (899 ) Pulp & Newsprint 1,658 71,899 1,683 Corporate (64,580 ) (65,634 ) (62,156 ) Total operating income $ (83,118 ) $ 147,815 $ 58,980 Identifiable assets by segment were as follows for the years ended December 31 : 2019 2018 Identifiable assets: High Purity Cellulose $ 1,559,073 $ 1,643,092 Forest Products 171,167 166,801 Paperboard 145,030 168,458 Pulp & Newsprint 102,959 113,055 Corporate 501,918 493,973 Assets Held for Sale — 93,707 Total identifiable assets $ 2,480,147 $ 2,679,086 Long-life assets by country were as follows for the years ended December 31 : 2019 2018 Long-life assets: United States $ 791,769 $ 829,153 Canada (a) 905,897 920,503 France 209,304 213,338 Other 146 — Total long-life assets $ 1,907,116 $ 1,962,994 (a) 2018 includes $51 million of assets of discontinued operations Depreciation and amortization and capital expenditures by segment were as follows for the years ended December 31 : 2019 2018 2017 Depreciation and amortization: High Purity Cellulose $ 123,279 $ 119,231 $ 93,177 Forest Products 9,288 6,683 728 Paperboard 15,587 15,674 1,922 Pulp & Newsprint 4,323 3,711 505 Corporate 798 658 314 Total depreciation and amortization $ 153,275 $ 145,957 $ 96,646 Capital expenditures (a): High Purity Cellulose $ 79,293 $ 92,980 $ 65,691 Forest Products 13,667 26,691 4,409 Paperboard 1,446 1,598 17 Pulp & Newsprint 4,664 4,938 1,347 Corporate 6,300 2,826 19 Total capital expenditures $ 105,370 $ 129,033 $ 71,483 |
Long-lived Assets by Country | Long-life assets by country were as follows for the years ended December 31 : 2019 2018 Long-life assets: United States $ 791,769 $ 829,153 Canada (a) 905,897 920,503 France 209,304 213,338 Other 146 — Total long-life assets $ 1,907,116 $ 1,962,994 (a) 2018 includes $51 million of assets of discontinued operations |
Geographical Distribution of the Company's Sales | Geographical distribution of the Company’s sales was comprised of the following for the three years ended December 31 : Sales by Destination 2019 % 2018 % 2017 % United States $ 694,785 39 $ 771,575 40 $ 336,737 37 China 328,037 18 348,550 18 248,419 26 Canada 221,601 12 259,949 13 41,178 4 Japan 119,839 7 143,577 7 123,850 13 Europe 268,417 15 291,008 15 108,992 12 Latin America 10,223 1 11,868 1 11,576 1 Other Asia 115,332 7 125,773 6 67,739 7 All other 17,158 1 4,694 — 1,925 — Total sales $ 1,775,392 100 $ 1,956,994 100 $ 940,416 100 |
Sales to Significant Customers | The Company had no significant customers representing over 10 percent of total sales for the year ended December 31, 2019 and 2018. The Company had three significant customers in its High Purity Cellulose segment which represented over 10 percent of total sales for the year ended December 31, 2017: Percentage of Sales 2017 Eastman Chemical Company 20% Nantong Cellulose Fibers, Co., Ltd. 15% Daicel Corporation 10% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations | At December 31, 2019 , the future minimum payments under purchase obligations were as follows: Purchase Obligations (a) 2020 $ 74,663 2021 48,881 2022 41,604 2023 29,376 2024 11,022 Thereafter 101,679 Total $ 307,225 (a) Purchase obligations primarily consist of payments expected to be made on natural gas, steam energy and wood chips purchase contracts. Obligations reported in the table are estimates and may vary based on changes in actual price and volumes terms. |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows | Supplemental disclosures of cash flows information was comprised of the following for the three years ended December 31: 2019 2018 2017 Cash paid (received) during the period: Interest $ 59,434 $ 55,286 $ 35,451 Income taxes $ 3,266 $ 12,558 $ 5,992 Non-cash investing and financing activities: Capital assets purchased on account $ 14,769 $ 16,864 $ 12,083 Value of stock issued for Acquisition $ — $ — $ 141,192 |
Quarterly Results for 2019 an_2
Quarterly Results for 2019 and 2018 (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended March 30 June 29 September 28 December 31 Total Year 2019 Net Sales $ 441,060 $ 450,233 $ 416,129 $ 467,970 $ 1,775,392 Gross Margin $ 7,619 $ 17,979 $ 16,619 $ 11,930 $ 54,157 Operating Income $ (27,599 ) $ (15,320 ) $ (8,564 ) $ (31,635 ) $ (83,118 ) Income (loss) from continuing operations $ (27,987 ) $ (19,274 ) $ (14,353 ) $ (56,994 ) $ (118,608 ) Income from discontinued operations (c) $ 5,937 $ 4,357 $ 137 $ 85,727 $ 96,158 Net Income (Loss) $ (22,050 ) $ (14,917 ) $ (14,216 ) $ 28,733 $ (22,450 ) Basic earnings per share Continuing operations (b) $ (0.64 ) $ (0.46 ) $ (0.29 ) $ (0.91 ) $ (2.33 ) Discontinued operations $ 0.12 $ 0.09 $ — $ 1.36 $ 1.76 Total (b) $ (0.52 ) $ (0.37 ) $ (0.29 ) $ 0.45 $ (0.57 ) Diluted earnings per share: Continuing operations (b) $ (0.64 ) $ (0.46 ) $ (0.29 ) $ (0.91 ) $ (2.33 ) Discontinued operations $ 0.12 $ 0.09 $ — $ 1.36 $ 1.76 Total (b) $ (0.52 ) $ (0.37 ) $ (0.29 ) $ 0.45 $ (0.57 ) Quarter Ended March 31 June 30 September 29 December 31 Total Year 2018 Net Sales $ 479,491 $ 494,860 $ 501,298 $ 481,345 $ 1,956,994 Gross Margin $ 68,914 $ 87,677 $ 82,297 $ 52,259 $ 291,147 Operating Income $ 35,233 $ 52,859 $ 42,940 $ 16,783 $ 147,815 Income (loss) from continuing operations $ 17,746 $ 44,638 $ 29,968 $ 7,099 $ 99,451 Income from discontinued operations $ 6,709 $ 8,751 $ 7,969 $ 5,536 $ 28,965 Net Income $ 24,455 $ 53,389 $ 37,937 $ 12,635 $ 128,416 Basic earnings per share Continuing operations (a)(b) $ 0.28 $ 0.80 $ 0.52 $ 0.07 $ 1.70 Discontinued operations $ 0.13 $ 0.17 $ 0.16 $ 0.11 $ 0.57 Total (a)(b) $ 0.41 $ 0.97 $ 0.68 $ 0.18 $ 2.27 Diluted earnings per share: Continuing operations (a)(b) $ 0.28 $ 0.70 $ 0.47 $ 0.07 $ 1.52 Discontinued operations $ 0.10 $ 0.13 $ 0.13 $ 0.11 $ 0.44 Total (a)(b) $ 0.38 $ 0.83 $ 0.60 $ 0.18 $ 1.96 (a) Basic and diluted earnings per share for the second, third, and fourth quarters of 2018 and year ended December 31, 2018 included the impact of the repurchase and retirement of common stock as part of the Board of Directors authorized share buyback program. See Note 16 — Earnings per Share of Common Stock for additional information. (b) Basic and diluted earnings per share may include the impact of dividends on the Company’s Preferred Stock. As a result, quarterly EPS does not crossfoot to full-year EPS. See Note 16 — Earnings per Share of Common Stock for additional information. (c) Fourth quarter 2019 includes the gain from the sale of the Matane mill. See Note 3 — Discontinued Operations . |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation - Narrative (Details) | Dec. 31, 2019sawmillfacility |
High Purity Cellulose | |
Segment Reporting Information [Line Items] | |
Number of production facilities | facility | 4 |
Forest Products | |
Segment Reporting Information [Line Items] | |
Number of sawmills | sawmill | 7 |
Discontinued Operations - Narr
Discontinued Operations - Narrative (Details) - Matane Plant - Discontinued Operations, Disposed of by Sale $ in Millions | Nov. 30, 2019USD ($)t |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross purchase price | $ | $ 175 |
Production capacity | t | 270,000 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets | $ 0 | $ 42,500 |
Total assets | 0 | 93,707 |
Total current liabilities | 0 | 16,236 |
Other long-term liabilities | $ 0 | 5,548 |
Matane Plant | Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 23,093 | |
Inventory | 17,349 | |
Prepaid and other current assets | 2,058 | |
Total current assets | 42,500 | |
Property, plant and equipment, net | 17,482 | |
Deferred tax assets | 31,486 | |
Other assets | 2,239 | |
Total assets | 93,707 | |
Accounts payable | 11,035 | |
Accrued and other current liabilities | 3,786 | |
Other current liabilities | 1,415 | |
Total current liabilities | 16,236 | |
Other long-term liabilities | 5,548 | |
Total liabilities | $ 21,784 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and New Accounting Pronouncements - Property, Plant, Equipment and Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, cost of sales | $ 137 | $ 135 | $ 93 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized shutdown costs, amortization period | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized shutdown costs, amortization period | 18 months | ||
Other current assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized shutdown costs | $ 19 | $ 12 | |
Forest Products Group Production Related Plant and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Forest Products Group Production Related Plant and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Non-production Assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Non-production Assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 25 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 35 years | ||
Land Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Land Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years |
Discontinued Operations - Inco
Discontinued Operations - Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain from sale of discontinued operations, net of tax | $ 85,727 | $ 137 | $ 4,357 | $ 5,937 | $ 5,536 | $ 7,969 | $ 8,751 | $ 6,709 | $ 96,158 | $ 28,965 | $ 1,537 | |
Discontinued Operations, Disposed of by Sale | Matane Plant | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | 127,561 | 177,419 | 20,917 | |||||||||
Cost of sales | (106,572) | (124,396) | (18,618) | |||||||||
Gross margin | 20,989 | 53,023 | 2,299 | |||||||||
Selling, general and administrative expenses and other | (1,536) | (3,196) | 173 | |||||||||
Operating income (loss) | 19,453 | 49,827 | 2,472 | |||||||||
Interest expense | (3,957) | (4,485) | (482) | |||||||||
Other non-operating income | 321 | 377 | 45 | |||||||||
Income from discontinued operations before income taxes | 15,817 | 45,719 | 2,035 | |||||||||
Income tax expense | (4,096) | (16,754) | (498) | |||||||||
Income from discontinued operations, net of taxes | 11,721 | 28,965 | 1,537 | |||||||||
Gain from sale of discontinued operation, pre-tax | 118,888 | 0 | 0 | |||||||||
Income tax expense on gain | (34,451) | 0 | 0 | |||||||||
Gain from sale of discontinued operations, net of tax | 84,437 | 0 | 0 | |||||||||
Gain from sale of discontinued operations, net of tax | $ 96,158 | $ 28,965 | $ 1,537 | |||||||||
Debt required to be repaid | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and New Accounting Pronouncements - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of definite-life intangibles | $ 7 | $ 7 | $ 1 |
Amortization expense 2020 | 7 | ||
Amortization expense 2021 | 7 | ||
Amortization expense 2022 | 7 | ||
Amortization expense 2023 | 7 | ||
Amortization expense 2024 | 7 | ||
Amortization expense thereafter | $ 10 | ||
Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 8 years | ||
Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 15 years |
Discontinued Operations - Other
Discontinued Operations - Other Discontinued Operations Information (Details) - Matane Plant - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation and amortization | $ 1,590 | $ 2,459 | $ 317 |
Capital expenditures | $ 2,956 | $ 3,662 | $ 87 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and New Accounting Pronouncements - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 60,284 | $ 60,284 |
Accumulated Amortization | (14,833) | (7,824) |
Net Carrying Amount | $ 45,451 | $ 52,460 |
Weighted-Average Remaining Life | 7 years | 8 years |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 51,680 | $ 51,680 |
Accumulated Amortization | (13,613) | (7,179) |
Net Carrying Amount | $ 38,067 | $ 44,501 |
Weighted-Average Remaining Life | 5 years 10 months 24 days | 6 years 10 months 24 days |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,604 | $ 8,604 |
Accumulated Amortization | (1,220) | (645) |
Net Carrying Amount | $ 7,384 | $ 7,959 |
Weighted-Average Remaining Life | 12 years 10 months 24 days | 13 years 10 months 24 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and New Accounting Pronouncements - Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
LignoTech Florida | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45.00% | |
Equity Method Investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Sales | $ 6 | $ 2 |
Borregaard | LignoTech Florida | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 55.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and New Accounting Pronouncements - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Payment terms | 90 days |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and New Accounting Pronouncements - Environmental Costs (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Environmental loss contingencies term | 20 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and New Accounting Pronouncements - Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Threshold for actuarial gains and losses | 10.00% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and New Accounting Pronouncements - New or Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 22,406 | |
Present value of future minimum lease payments | $ 23,409 | |
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 |
Tembec Acquisition - Narrative
Tembec Acquisition - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | Nov. 17, 2017USD ($)$ / sharesshares | Nov. 17, 2017CAD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Gain on bargain purchase | $ 0 | $ 20,449,000 | $ 316,555,000 | |||
Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 317 | |||||
Stock consideration (in shares) | shares | 8.4 | 8.4 | ||||
Gain on bargain purchase | $ 317,000,000 | $ 20,000,000 | 317,000,000 | |||
Net revenue | $ 139,000,000 | |||||
Operating income | $ 0 | |||||
Acquisition related expenses | 34,000,000 | |||||
Unaudited pro forma net income attributable to the Company | 111,000,000 | |||||
Depreciation on Acquired Property, Plant and Equipment | Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Unaudited pro forma net income attributable to the Company | 15,000,000 | |||||
Amortization on Intangible Assets | Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Unaudited pro forma net income attributable to the Company | 7,000,000 | |||||
Acquisition-related Costs | Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Unaudited pro forma net income attributable to the Company | 49,000,000 | |||||
Fair Value Write Up of Inventory | Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Unaudited pro forma net income attributable to the Company | 23,000,000 | |||||
Elimination Interest Expense Related to Debt Repaid, Net of Interest Expense Associated with Financing Cash Portion of Acquisition | Tembec Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Unaudited pro forma net income attributable to the Company | $ 38,000,000 |
Tembec Acquisition - Pro Forma
Tembec Acquisition - Pro Forma (Details) - Tembec Inc. $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Unaudited pro forma net revenue (includes the results of the Matane mill) | $ | $ 2,122,000 |
Unaudited pro forma net income attributable to the Company | $ | $ 111,000 |
Unaudited pro forma basic net income per share (in USD per share) | $ / shares | $ 1.92 |
Unaudited pro forma diluted net income per share (in USD per share) | $ / shares | $ 1.76 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease, weighted average discount rate | 6.00% |
Finance lease, weighted average discount rate | 7.00% |
Weighted average remaining lease term, operating leases | 4 years 3 months 18 days |
Weighted average remaining lease term, finance leases | 6 years 10 months 24 days |
Operating lease payments | $ 6 |
Assets acquired under finance leases | $ 3 |
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 | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Leases | |
Operating lease expense | $ 6,474 |
Finance Leases | |
Amortization of ROU assets | 306 |
Interest | 209 |
Total | $ 6,989 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 22,406 |
Lease liabilities, current | 5,887 |
Lease liabilities, non-current | $ 17,522 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 7,093 |
2021 | 6,148 |
2022 | 5,661 |
2023 | 4,680 |
2024 | 1,532 |
Thereafter | 1,586 |
Total minimum lease payments | 26,700 |
Less: imputed interest | (3,291) |
Present value of future minimum lease payments | $ 23,409 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (605) | $ (559) |
Total accounts receivable, net | 181,658 | 199,284 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 142,181 | 146,056 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 40,082 | $ 53,787 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 150,259 | $ 203,350 |
Work-in-progress | 17,065 | 21,478 |
Raw materials | 73,385 | 68,656 |
Manufacturing and maintenance supplies | 10,471 | 10,544 |
Total inventory | $ 251,180 | $ 304,028 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 2,798,316 | $ 2,749,394 |
Accumulated depreciation | (1,482,261) | (1,385,837) |
Total property, plant and equipment, net | 1,316,055 | 1,363,557 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 29,912 | 22,476 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 248,395 | 246,971 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 2,453,568 | 2,389,250 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 20,063 | 23,138 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 46,378 | $ 67,559 |
Accrued and Other Liabilities
Accrued and Other Liabilities - Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued customer incentives and prepayments | $ 31,696 | $ 41,734 |
Accrued payroll and benefits | 23,593 | 29,567 |
Accrued interest | 2,785 | 3,170 |
Foreign currency forward contracts | 995 | 16,767 |
Accrued property taxes | 5,643 | 10,663 |
Other current liabilities | 37,466 | 44,254 |
Total accrued and other current liabilities | $ 102,178 | $ 146,155 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt (Details) - USD ($) | Nov. 17, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | May 22, 2014 |
Debt Instrument [Line Items] | ||||
Debt, gross | $ 1,084,929,000 | |||
Finance lease obligations | 2,818,000 | |||
Finance lease obligations | $ 3,124,000 | |||
Total principal payments due | 1,087,747,000 | 1,192,727,000 | ||
Less: debt premium, original issue discount and issuance costs | (5,604,000) | (4,558,000) | ||
Total debt | 1,082,143,000 | 1,188,169,000 | ||
Less: current maturities of long-term debt | (19,448,000) | (15,012,000) | ||
Long-term debt | 1,062,695,000 | 1,173,157,000 | ||
Credit Facility | U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | 0 | 0 | ||
Revolving credit facility | $ 100,000,000 | 84,000,000 | ||
Revolving credit facility available | 84,000,000 | $ 39,000,000 | ||
Credit Facility | U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.75% | |||
Credit Facility | Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | $ 0 | 0 | ||
Revolving credit facility | 150,000,000 | 126,000,000 | ||
Revolving credit facility available | 126,000,000 | $ 48,000,000 | ||
Credit Facility | Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.75% | |||
Credit Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | 230,000,000 | |||
Facility interest rate | 5.54% | |||
Credit Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.75% | |||
Credit Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 450,000,000 | |||
Facility interest rate | 5.19% | |||
Cash patronage benefit | 0.60% | |||
Credit Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread after cash patronage benefit | 3.40% | |||
Term Loan Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | $ 133,283,000 | 160,000,000 | ||
Term Loan Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | 365,592,000 | 438,875,000 | ||
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.50% | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | $ 495,647,000 | 495,647,000 | ||
Fixed interest rate | 5.50% | 5.50% | ||
Loans | Canadian dollar based, fixed rate term loans with interest rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | $ 83,122,000 | 91,304,000 | ||
Loans | Other loans | ||||
Debt Instrument [Line Items] | ||||
Debt, gross | $ 7,285,000 | $ 3,777,000 | ||
Minimum | Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.00% | |||
Minimum | Loans | Canadian dollar based, fixed rate term loans with interest rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028 | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 5.50% | |||
Maximum | Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 4.00% | |||
Maximum | Loans | Canadian dollar based, fixed rate term loans with interest rates ranging from 5.50% to 6.86% and maturity dates ranging from March 2020 through April 2028 | ||||
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 | Dec. 31, 2019USD ($) |
Minimum Lease Payments | |
2020 | $ 515 |
2021 | 515 |
2022 | 515 |
2023 | 515 |
2024 | 515 |
Thereafter | 988 |
Total payments | 3,563 |
Less: Interest | |
2020 | 187 |
2021 | 163 |
2022 | 138 |
2023 | 110 |
2024 | 81 |
Thereafter | 66 |
Total payments | 745 |
Net Present Value | |
2020 | 328 |
2021 | 352 |
2022 | 377 |
2023 | 405 |
2024 | 434 |
Thereafter | 922 |
Total payments | 2,818 |
Debt Principal Payments | |
2020 | 18,258 |
2021 | 9,078 |
2022 | 159,927 |
2023 | 7,169 |
2024 | 868,306 |
Thereafter | 22,191 |
Total payments | $ 1,084,929 |
Debt and Finance Leases - 5.50%
Debt and Finance Leases - 5.50% Senior Notes Due 2024 - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 22, 2014 | |
Debt Instrument [Line Items] | |||||
Gain on debt extinguishment | $ 0 | $ 786,000 | $ 0 | ||
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.50% | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 550,000,000 | ||||
Interest rate | 5.50% | 5.50% | |||
Debt repurchased | $ 11,000,000 | 11,000,000 | |||
Debt retired | 10,000,000 | $ 10,000,000 | |||
Gain on debt extinguishment | $ 1,000,000 |
Debt and Finance Leases - Senio
Debt and Finance Leases - Senior Secured Credit Facilities - Narrative (Details) - USD ($) | Nov. 17, 2017 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | $ 3,514,000 | $ 0 | $ 7,025,000 | ||
Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Change on interest rate margin | 1.25% | ||||
Debt issuance costs | $ 4,000,000 | ||||
Third party fees | $ 4,000,000 | ||||
Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Available borrowing capacity | 87,000,000 | ||||
Amount of letters of credit outstanding | 33,000,000 | ||||
Credit Facility | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 230,000,000 | ||||
Credit Facility | Term A-2 Loan Facility borrowings maturing through November 2024 bearing interest at LIBOR plus 3.40% (after consideration of 0.60% patronage benefit), interest rate of 5.19% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 450,000,000 | ||||
Credit Facility | U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | 84,000,000 | |||
Available borrowing capacity | 84,000,000 | 39,000,000 | |||
Credit Facility | Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 150,000,000 | 126,000,000 | |||
Available borrowing capacity | $ 126,000,000 | $ 48,000,000 | |||
Credit Facility | LIBOR | Term A-1 Loan Facility borrowings maturing through November 2022 bearing interest at LIBOR plus 3.75%, interest rate of 5.54% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 3.75% | ||||
Credit Facility | LIBOR | U.S. Revolver of $84 million maturing in November 2022, $39 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 3.75% | ||||
Credit Facility | LIBOR | Multi-currency Revolver of $126 million maturing in November 2022, $48 million available, bearing interest at LIBOR plus 3.75% at December 31, 2019 | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 3.75% | ||||
Credit Facility | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Required availability on facility | $ 80,000,000 | ||||
Credit Facility | Minimum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 2.00% | ||||
Credit Facility | Minimum | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 3.00% | ||||
Credit Facility | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Required availability on facility | $ 90,000,000 | ||||
Credit Facility | Maximum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 3.00% | ||||
Credit Facility | Maximum | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 4.00% | ||||
Before December 31, 2021 | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Net leverage ratio (no greater than) | 5.60 | ||||
Interest coverage ratio (no less than) | 1.65 | ||||
After December 31, 2021 | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Net leverage ratio (no greater than) | 3 | ||||
Interest coverage ratio (no less than) | 3 |
Liabilities for Disposed Oper_3
Liabilities for Disposed Operations - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)site | Dec. 31, 2018USD ($) | |
Site Contingency [Line Items] | ||
Number of sites | site | 20 | |
Environmental loss contingencies term | 20 years | |
Current estimate threshold of total liabilities for disposed operations | 10.00% | |
Maximum | ||
Site Contingency [Line Items] | ||
Loss exposure in excess of accrual | $ 80 | |
Port Angeles, Washington | ||
Site Contingency [Line Items] | ||
Increase (decrease) to liabilities | 10 | $ 1 |
Augusta, Georgia | ||
Site Contingency [Line Items] | ||
Increase (decrease) to liabilities | $ 1 | (1) |
Term for hazardous waste permit | 10 years | |
Baldwin, Florida | ||
Site Contingency [Line Items] | ||
Increase (decrease) to liabilities | $ (5) | |
Term for hazardous waste permit | 10 years |
Liabilities for Disposed Oper_4
Liabilities for Disposed Operations - Site Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 160,654 | $ 164,086 | |
Payments | (6,444) | (11,966) | |
Increase (Decrease) to Liabilities | 17,166 | 8,534 | |
Ending balance | 171,376 | 160,654 | |
Less: Current portion | (11,339) | (11,310) | $ (13,181) |
Non-Current portion | 160,037 | 149,344 | $ 150,905 |
Increase (decrease) in liabilities from foreign currency translation gains | (1,000) | (1,000) | |
Port Angeles, Washington | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 44,799 | 43,667 | |
Payments | (1,404) | (935) | |
Increase (Decrease) to Liabilities | 11,045 | 2,067 | |
Ending balance | 54,440 | 44,799 | |
Augusta, Georgia | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 20,354 | 21,175 | |
Payments | (683) | (929) | |
Increase (Decrease) to Liabilities | 1,876 | 108 | |
Ending balance | 21,547 | 20,354 | |
Baldwin, Florida | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 17,244 | 21,170 | |
Payments | (450) | (4,613) | |
Increase (Decrease) to Liabilities | 383 | 687 | |
Ending balance | 17,177 | 17,244 | |
All other sites | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 78,257 | 78,074 | |
Payments | (3,907) | (5,489) | |
Increase (Decrease) to Liabilities | 3,862 | 5,672 | |
Ending balance | $ 78,212 | $ 78,257 |
Derivative Instruments - Notati
Derivative Instruments - Notational Amounts and Maturity Dates of Derivative Instruments (Details) - USD ($) | Dec. 31, 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 September 2020 | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notational amount | 343,665,000 | 388,930,000 |
Foreign Exchange Forward Contract Maturing Various Dates In 2020, 2022, 2028 | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notational amount | $ 83,126,000 | $ 125,979,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments Included in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total derivatives | $ 3,354 | $ (17,735) |
Designated as Hedging Instrument | Other current assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 1,194 |
Designated as Hedging Instrument | Other current assets | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Asset Derivatives | 4,857 | 0 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 937 |
Designated as Hedging Instrument | Other assets | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Asset Derivatives | 5 | 0 |
Designated as Hedging Instrument | Other current liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Liability Derivatives | (639) | 0 |
Designated as Hedging Instrument | Other current liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Liability Derivatives | (340) | (16,408) |
Designated as Hedging Instrument | Other non-current liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Liability Derivatives | (759) | (3,105) |
Not Designated as Hedging Instrument | Other current assets | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Asset Derivatives | 246 | 7 |
Not Designated as Hedging Instrument | Other current liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Liability Derivatives | $ (16) | $ (360) |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments Classified as Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (2,083) | $ 1,446 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 688 | 64 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Other operating expense, net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 2,382 | (23,603) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 854 | 752 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Cost of sales | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 10,006 | 3,843 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (10,006) | (3,843) |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Interest income and other income (expense), net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 2,517 | (4,672) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,537 | (3,599) |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other operating expense, net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gains (Losses) | $ 416 | $ (3,009) |
Derivative Instruments - After-
Derivative Instruments - After-tax Amounts of Unrealized Gain in AOCL Related to Hedge Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||||
Unrealized gains in AOCL | $ 682,798 | $ 706,871 | $ 693,756 | $ 211,749 |
Unrealized gain on derivative | ||||
Derivative [Line Items] | ||||
Unrealized gains in AOCL | 1,290 | (11,622) | $ 619 | $ 0 |
Cash Flow Hedging | Unrealized gain on derivative | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Unrealized gains in AOCL | (499) | 1,663 | ||
Cash Flow Hedging | Unrealized gain on derivative | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Unrealized gains in AOCL | $ 1,789 | $ (13,285) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount, Estimated Fair Values and Categorization Under the Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 64,025 | $ 108,966 |
Liabilities: | ||
Fixed-rate long-term debt | 585,027 | 585,824 |
Variable-rate long-term debt | 494,299 | 599,221 |
Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 64,025 | 108,966 |
Liabilities: | ||
Fixed-rate long-term debt | 0 | 0 |
Variable-rate long-term debt | 0 | 0 |
Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Liabilities: | ||
Fixed-rate long-term debt | 465,449 | 541,267 |
Variable-rate long-term debt | 498,875 | 602,652 |
Interest rate swaps | Carrying Amount | ||
Assets: | ||
Derivative asset | 0 | 2,131 |
Liabilities: | ||
Derivative liability | 639 | |
Interest rate swaps | Fair Value | Level 1 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Interest rate swaps | Fair Value | Level 2 | ||
Assets: | ||
Derivative asset | 0 | 2,131 |
Liabilities: | ||
Derivative liability | 639 | |
Foreign exchange forward contracts | Carrying Amount | ||
Assets: | ||
Derivative asset | 5,108 | 7 |
Liabilities: | ||
Derivative liability | 1,115 | 19,873 |
Foreign exchange forward contracts | Fair Value | Level 1 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Foreign exchange forward contracts | Fair Value | Level 2 | ||
Assets: | ||
Derivative asset | 5,108 | 7 |
Liabilities: | ||
Derivative liability | $ 1,115 | $ 19,873 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Analysis of Stockholder's (Deficit) Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | $ 706,871 | $ 693,756 | $ 706,871 | $ 693,756 | $ 211,749 | ||||||
Net Income | $ 28,733 | $ (14,216) | $ (14,917) | $ (22,050) | $ 12,635 | $ 37,937 | $ 53,389 | $ 24,455 | (22,450) | 128,416 | 324,964 |
Other comprehensive income (loss), net of tax | 16,470 | (57,121) | 33,929 | ||||||||
Preferred stock converted to common stock | 0 | ||||||||||
Common stock issued at Acquisition | 141,192 | ||||||||||
Issuance of common stock under incentive stock plans | 0 | 451 | 14 | ||||||||
Stock-based compensation | 6,531 | 13,007 | 8,986 | ||||||||
Repurchase of common stock | (6,879) | (42,780) | (157) | ||||||||
ASU 2018-02 adoption | 0 | ||||||||||
Common stock dividends | (7,395) | (15,058) | (13,121) | ||||||||
Preferred stock dividends | (10,350) | (13,800) | (13,800) | ||||||||
Ending balance | $ 682,798 | $ 706,871 | $ 682,798 | $ 706,871 | $ 693,756 | ||||||
Common stock dividends (in dollars per share) | $ 0.14 | $ 0.28 | $ 0.28 | ||||||||
Preferred stock dividends (in dollars per share) | $ 6 | $ 8 | $ 8 | ||||||||
Common Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 49,291,130 | 51,717,142 | 49,291,130 | 51,717,142 | 43,261,905 | ||||||
Beginning balance | $ 493 | $ 517 | $ 493 | $ 517 | $ 433 | ||||||
Preferred stock converted to common stock (in shares) | 13,361,678 | ||||||||||
Preferred stock converted to common stock | $ 133 | ||||||||||
Common stock issued at Acquisition (in shares) | 8,439,452 | ||||||||||
Common stock issued at Acquisition | $ 84 | ||||||||||
Issuance of common stock under incentive stock plans (shares) | 978,091 | 301,560 | 27,131 | ||||||||
Issuance of common stock under incentive stock plans | $ 10 | $ 3 | $ 0 | ||||||||
Repurchase of common stock (shares) | (494,770) | (2,727,572) | (11,346) | ||||||||
Repurchase of common stock | $ (4) | $ (27) | $ 0 | ||||||||
Ending balance (in shares) | 63,136,129 | 49,291,130 | 63,136,129 | 49,291,130 | 51,717,142 | ||||||
Ending balance | $ 632 | $ 493 | $ 632 | $ 493 | $ 517 | ||||||
Preferred Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 1,725,000 | 1,725,000 | 1,725,000 | 1,725,000 | 1,725,000 | ||||||
Beginning balance | $ 17 | $ 17 | $ 17 | $ 17 | $ 17 | ||||||
Preferred stock converted to common stock (in shares) | (1,725,000) | ||||||||||
Preferred stock converted to common stock | $ (17) | ||||||||||
Ending balance (in shares) | 0 | 1,725,000 | 0 | 1,725,000 | 1,725,000 | ||||||
Ending balance | $ 0 | $ 17 | $ 0 | $ 17 | $ 17 | ||||||
Additional Paid in Capital | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 399,490 | 392,353 | 399,490 | 392,353 | 242,402 | ||||||
Preferred stock converted to common stock | (116) | ||||||||||
Common stock issued at Acquisition | 141,108 | ||||||||||
Issuance of common stock under incentive stock plans | (10) | 448 | 14 | ||||||||
Stock-based compensation | 6,531 | 13,007 | 8,986 | ||||||||
Repurchase of common stock | (6,875) | (6,318) | (157) | ||||||||
Ending balance | 399,020 | 399,490 | 399,020 | 399,490 | 392,353 | ||||||
Retained Earnings (Accumulated Deficit) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 462,568 | 377,020 | 462,568 | 377,020 | 78,977 | ||||||
Net Income | 128,416 | 324,964 | |||||||||
Repurchase of common stock | 0 | (36,435) | |||||||||
ASU 2018-02 adoption | 22,425 | ||||||||||
Common stock dividends | (7,395) | (15,058) | (13,121) | ||||||||
Preferred stock dividends | (10,350) | (13,800) | (13,800) | ||||||||
Ending balance | 422,373 | 462,568 | 422,373 | 462,568 | 377,020 | ||||||
Accumulated Other Comprehensive Loss | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | $ (155,697) | $ (76,151) | (155,697) | (76,151) | (110,080) | ||||||
Other comprehensive income (loss), net of tax | 16,470 | (57,121) | 33,929 | ||||||||
ASU 2018-02 adoption | (22,425) | ||||||||||
Ending balance | $ (139,227) | $ (155,697) | $ (139,227) | $ (155,697) | $ (76,151) |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Narrative (Details) | Aug. 04, 2016USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Jan. 29, 2018USD ($) |
Class of Stock [Line Items] | |||
Amount authorized under share repurchase program | $ | $ 100,000,000 | ||
Shares repurchased and retired (in shares) | shares | 2,570,449 | ||
Shares repurchased and retired (in USD per share) | $ 15.44 | ||
Shares repurchased and retired | $ | $ 40,000,000 | ||
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 | $ | $ 167,000,000 | ||
Threshold trading days averaging period | 20 days | ||
Liquidation preference (in dollars per share) | $ 100 | ||
Series A Preferred Stock | Common stock less than $12.91 | |||
Class of Stock [Line Items] | |||
Applicable Market Value (in dollars per share) | $ 12.91 | ||
Conversion rate | 7.7459 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Preferred stock converted to common stock (in shares) | shares | 13,361,678 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 706,871,000 | $ 693,756,000 | $ 211,749,000 |
Other comprehensive income (loss), net of tax | 16,470,000 | (57,121,000) | 33,929,000 |
ASU 2018-02 adoption | 0 | ||
Ending balance | 682,798,000 | 706,871,000 | 693,756,000 |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (155,697,000) | (76,151,000) | (110,080,000) |
Other comprehensive income (loss), net of tax | 16,470,000 | (57,121,000) | 33,929,000 |
ASU 2018-02 adoption | (22,425,000) | ||
Ending balance | (139,227,000) | (155,697,000) | (76,151,000) |
Unrecognized components of employee benefit plans | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (135,590,000) | (81,638,000) | (110,080,000) |
Other comprehensive gain (loss) before reclassifications | (8,119,000) | (53,278,000) | 26,050,000 |
Income tax on other comprehensive loss | 2,413,000 | 12,160,000 | (5,731,000) |
Income tax on reclassifications | (4,711,000) | (2,705,000) | (4,471,000) |
Other comprehensive income (loss), net of tax | 8,952,000 | (31,527,000) | 28,442,000 |
ASU 2018-02 adoption | 0 | (22,425,000) | 0 |
Ending balance | (126,638,000) | (135,590,000) | (81,638,000) |
Pension settlement loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | 8,787,000 | 0 | 0 |
Amortization of losses | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | 9,889,000 | 11,877,000 | 11,984,000 |
Amortization of prior service costs | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | 693,000 | 572,000 | 763,000 |
Amortization of negative plan amendment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | 0 | (153,000) | (153,000) |
Unrealized gain on derivative | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (11,622,000) | 619,000 | 0 |
Other comprehensive gain (loss) before reclassifications | 12,822,000 | (22,985,000) | 749,000 |
Income tax on other comprehensive loss | (3,076,000) | 5,372,000 | (130,000) |
Reclassifications to earnings | 0 | ||
Income tax on reclassifications | (1,761,000) | (1,254,000) | 0 |
Other comprehensive income (loss), net of tax | 12,912,000 | (12,241,000) | 619,000 |
Ending balance | 1,290,000 | (11,622,000) | 619,000 |
Foreign currency translation adjustments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (8,485,000) | 4,868,000 | 0 |
Other comprehensive income (loss), net of tax | (5,394,000) | (13,353,000) | 4,868,000 |
Ending balance | (13,879,000) | (8,485,000) | 4,868,000 |
Tax effects of foreign translation adjustment | 0 | 0 | 0 |
Interest rate swaps | Unrealized gain on derivative | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | (688,000) | (64,000) | 0 |
Foreign exchange contracts | Unrealized gain on derivative | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassifications to earnings | $ 5,615,000 | $ 6,690,000 | $ 0 |
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 | Nov. 17, 2017 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Income (loss) from continuing operations | $ (56,994) | $ (14,353) | $ (19,274) | $ (27,987) | $ 7,099 | $ 29,968 | $ 44,638 | $ 17,746 | $ (118,608) | $ 99,451 | $ 323,427 | |
Less: Preferred Stock dividends | (8,582) | (13,800) | (13,800) | |||||||||
Income (loss) from continuing operations attributable to common stockholders | (127,190) | 85,651 | 309,627 | |||||||||
Income from discontinued operations | $ 85,727 | $ 137 | $ 4,357 | $ 5,937 | $ 5,536 | $ 7,969 | $ 8,751 | $ 6,709 | 96,158 | 28,965 | 1,537 | |
Net income (loss) available for common stockholders | $ (31,032) | $ 114,616 | $ 311,164 | |||||||||
Shares used for determining basic earnings per share of common stock (in shares) | 54,511,863 | 50,602,480 | 43,416,868 | |||||||||
Dilutive effect of: | ||||||||||||
Stock options (in shares) | 0 | 1,307 | 0 | |||||||||
Performance and restricted shares (in shares) | 0 | 1,431,794 | 1,113,866 | |||||||||
Preferred Stock (in shares) | 0 | 13,361,678 | 11,371,718 | |||||||||
Shares used for determining diluted earnings per share of common stock (in shares) | 54,511,863 | 65,397,259 | 55,902,452 | |||||||||
Basic earnings per share (not in thousands) | ||||||||||||
Income (loss) from continuing operations (in dollars per share) | $ (0.91) | $ (0.29) | $ (0.46) | $ (0.64) | $ 0.07 | $ 0.52 | $ 0.80 | $ 0.28 | $ (2.33) | $ 1.70 | $ 7.13 | |
Income (loss) from discontinued operations (in dollars per share) | 1.36 | 0 | 0.09 | 0.12 | 0.11 | 0.16 | 0.17 | 0.13 | 1.76 | 0.57 | 0.04 | |
Net income (loss) per common share-Basic (in dollars per share) | 0.45 | (0.29) | (0.37) | (0.52) | 0.18 | 0.68 | 0.97 | 0.41 | (0.57) | 2.27 | 7.17 | |
Diluted earnings per share (not in thousands) | ||||||||||||
Income (loss) from continuing operations (in dollars per share) | (0.91) | (0.29) | (0.46) | (0.64) | 0.07 | 0.47 | 0.70 | 0.28 | (2.33) | 1.52 | 5.78 | |
Income (loss) from discontinued operations (in dollars per share) | 1.36 | 0 | 0.09 | 0.12 | 0.11 | 0.13 | 0.13 | 0.10 | 1.76 | 0.44 | 0.03 | |
Net income (loss) per common share-Diluted (in dollars per share) | $ 0.45 | $ (0.29) | $ (0.37) | $ (0.52) | $ 0.18 | $ 0.60 | $ 0.83 | $ 0.38 | $ (0.57) | $ 1.96 | $ 5.81 | |
Tembec Inc. | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Total Company shares issued to Tembec shareholders (in shares) | 8,400,000 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 699,495 | 658,037 | 373,856 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 205,026 | 260,033 | 373,058 |
Performance and restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 494,469 | 398,004 | 798 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 30, 2019shares | Dec. 31, 2019USD ($)planshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Payment Arrangement [Abstract] | ||||
Number of plans | plan | 2 | |||
Number of shares authorized (in shares) | 4,800,000 | |||
Number of shares available for future grant (in shares) | 3,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based incentive compensation expense | $ | $ 6,531 | $ 13,007 | $ 8,986 | |
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 | |||
Minimum | Performance-Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target payout percentage | 0.00% | |||
Final payout range | 0.00% | |||
Maximum | Performance-Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target payout percentage | 200.00% | |||
Final payout range | 250.00% |
Incentive Stock Plans - Non-Qua
Incentive Stock Plans - Non-Qualified Employee Stock Options Narrative (Details) - Stock Options - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum term | 10 years 2 days | ||
Period for recognition on a straight-line basis | 3 years | ||
Number of options granted (in shares) | 0 | 0 | 0 |
Incentive Stock Plans - Summary
Incentive Stock Plans - Summary of Stock Option Activity (Details) - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Options | |
Beginning balance (in shares) | shares | 286,613 |
Forfeited (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Expired (in shares) | shares | (81,587) |
Ending balance (in shares) | shares | 205,026 |
Options vested and expected to vest (in shares) | shares | 205,026 |
Options exercisable (in shares) | shares | 205,026 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 34.23 |
Forfeited (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 29.54 |
Ending balance (in dollars per share) | $ / shares | 36.10 |
Options vested and expected to vest (in dollars per share) | $ / shares | 36.10 |
Options exercisable (in dollars per share) | $ / shares | $ 36.10 |
Additional Disclosures | |
Weighted Average Remaining Contractual Term, Outstanding | 2 years 4 months 24 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 2 years 4 months 24 days |
Weighted Average Remaining Contractual Term, Options exercisable | 2 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 0 |
Aggregate Intrinsic Value, Options exercisable | $ | $ 0 |
Incentive Stock Plans - Additio
Incentive Stock Plans - Additional Information on Stock Options Granted to Employees (Details) - Stock Options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 0 | $ 108 | $ 1 |
Fair value of options vested | $ 0 | $ 0 | $ 210 |
Incentive Stock Plans - Restric
Incentive Stock Plans - Restricted Stock and Stock Unit Awards - Narrative (Details) - Restricted Stock $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 5 |
Period for recognition | 1 year 6 months |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Incentive Stock Plans - Activit
Incentive Stock Plans - Activity of Restricted Shares Granted to Employees (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock and stock units granted (in shares) | 395,260 | 301,384 | 285,506 |
Weighted average price of shares granted (in dollars per share) | $ 11.99 | $ 19.73 | $ 13.37 |
Intrinsic value of restricted stock and units outstanding | $ 3,201 | $ 9,767 | $ 17,349 |
Fair value of restricted stock and units vested | $ 4,881 | $ 3,753 | $ 1,119 |
Incentive Stock Plans - Summa_2
Incentive Stock Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Awards | |||
Beginning balance (in shares) | 917,098 | ||
Granted (in shares) | 395,260 | 301,384 | 285,506 |
Forfeited (in shares) | (20,014) | ||
Vested (in shares) | (458,748) | ||
Ending balance (in shares) | 833,596 | 917,098 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 13.71 | ||
Granted (in dollars per share) | 11.99 | $ 19.73 | $ 13.37 |
Forfeited (in dollars per share) | 15.06 | ||
Vested (in dollars per share) | 10.64 | ||
Ending balance (in dollars per share) | $ 14.55 | $ 13.71 |
Incentive Stock Plans - Perform
Incentive Stock Plans - Performance-Based Stock Unit Awards - Narrative (Details) - Performance-Based Stock Units $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 2 |
Period for recognition | 1 year 3 days |
Incentive Stock Plans - Activ_2
Incentive Stock Plans - Activity of Performance Shares Granted to Employees (Details) - Performance-Based Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares of stock reserved for performance-based stock units (in shares) | 980,641 | 1,115,747 | 896,121 | |
Weighted average price of shares granted (in dollars per share) | $ 14.98 | $ 22.75 | $ 14.60 | |
Intrinsic value of outstanding performance-based stock units | $ 4,572 | $ 4,774 | $ 7,408 |
Incentive Stock Plans - Summa_3
Incentive Stock Plans - Summary of Performance Share Activity (Details) - Performance-Based Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Awards | |||
Beginning balance (in shares) | 1,325,894 | ||
Granted (in shares) | 400,404 | ||
Forfeited (in shares) | (15,605) | ||
Vested (in shares) | (520,167) | ||
Ending balance (in shares) | 1,190,526 | 1,325,894 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 14.69 | ||
Granted (in dollars per share) | 14.98 | $ 22.75 | $ 14.60 |
Forfeited (in dollars per share) | 16.90 | ||
Vested (in dollars per share) | 7.80 | ||
Ending balance (in dollars per share) | $ 17.77 | $ 14.69 |
Incentive Stock Plans - Assumpt
Incentive Stock Plans - Assumptions Used in Fair Value Calculation for Awards Granted (Details) - Performance-Based Stock Units | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 49.50% | 68.70% | 70.20% |
Risk-free rate | 2.50% | 2.40% | 1.50% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan expense | $ 9,000 | $ 8,000 | $ 5,000 |
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension settlement loss | 8,787 | $ 0 | $ 0 |
Expected employer contributions | $ 5,000 | ||
Lower Funded Plan | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target asset allocation (up to) | 65.00% | ||
Higher Funded Plan | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target asset allocation (up to) | 100.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | $ 844,588 | ||
Fair value of plan assets at end of year | 745,858 | $ 844,588 | |
Pension | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 1,013,541 | 1,112,785 | |
Service cost | 9,857 | 11,663 | $ 5,646 |
Interest cost | 36,138 | 35,499 | 15,926 |
Actuarial loss (gain) | 101,576 | (44,976) | |
Participant contributions | 900 | 905 | |
Benefits paid | (55,801) | (59,531) | |
Plan amendment | 1,693 | 0 | |
Settlement | (222,342) | 0 | |
Effects of foreign currency exchange rates | 22,811 | (42,804) | |
Projected benefit obligation at end of year | 908,373 | 1,013,541 | 1,112,785 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 844,588 | 979,269 | |
Actual return on plan assets | 148,226 | (44,167) | |
Employer contributions | 8,899 | 9,109 | |
Participant contributions | 900 | 905 | |
Benefits paid | (55,801) | (59,316) | |
Settlement | (222,342) | 0 | |
Effects of foreign currency exchange rates | 21,388 | (41,212) | |
Fair value of plan assets at end of year | 745,858 | 844,588 | 979,269 |
Funded Status at end of year: | (162,515) | (168,953) | |
Postretirement | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 41,243 | 45,449 | |
Service cost | 1,849 | 1,716 | 1,249 |
Interest cost | 1,432 | 1,327 | 827 |
Actuarial loss (gain) | (39) | (2,720) | |
Participant contributions | 130 | 360 | |
Benefits paid | (2,824) | (3,418) | |
Plan amendment | 0 | 0 | |
Settlement | (146) | 0 | |
Effects of foreign currency exchange rates | 926 | (1,471) | |
Projected benefit obligation at end of year | 42,571 | 41,243 | 45,449 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 2,694 | 3,059 | |
Participant contributions | 130 | 360 | |
Benefits paid | (2,824) | (3,419) | |
Settlement | 0 | 0 | |
Effects of foreign currency exchange rates | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status at end of year: | $ (42,571) | $ (41,243) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | $ (236,625) | $ (233,658) |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 37,505 | 30,395 |
Current liabilities | (3,745) | (3,773) |
Non-current liabilities | (196,275) | (195,575) |
Net amount recognized | (162,515) | (168,953) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (2,221) | (3,160) |
Non-current liabilities | (40,350) | (38,083) |
Net amount recognized | $ (42,571) | $ (41,243) |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension | |||
Net gains or losses recognized in other comprehensive income | |||
Net gains (losses) | $ (6,294) | $ (55,918) | $ 24,411 |
Prior service (costs) gains | (1,728) | 0 | 0 |
Net gains or losses and prior service costs or credits reclassified from other comprehensive income | |||
Pension settlement loss | 8,787 | 0 | 0 |
Amortization of losses | 10,244 | 11,648 | 11,651 |
Amortization of prior service (credit) cost | 846 | 572 | 761 |
Postretirement | |||
Net gains or losses recognized in other comprehensive income | |||
Net gains (losses) | (97) | 2,640 | 1,639 |
Prior service (costs) gains | 0 | 0 | 0 |
Net gains or losses and prior service costs or credits reclassified from other comprehensive income | |||
Pension settlement loss | 0 | 0 | 0 |
Amortization of losses | 81 | 229 | 333 |
Amortization of prior service (credit) cost | $ (153) | $ (153) | $ (151) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ (2,842) | $ (1,681) |
Net losses | (160,058) | (172,484) |
Deferred income tax benefit | 37,050 | 39,299 |
Accumulated other comprehensive income (loss) | (125,850) | (134,866) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | 1,185 | 1,338 |
Net losses | (2,266) | (2,280) |
Deferred income tax benefit | 293 | 218 |
Accumulated other comprehensive income (loss) | $ (788) | $ (724) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated and Projected Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 907,755 | $ 740,287 |
Accumulated benefit obligation | 871,291 | 714,891 |
Fair value of plan assets | $ 744,662 | $ 540,944 |
Employee Benefit Plans - Net _2
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 9,857 | $ 11,663 | $ 5,646 |
Interest cost | 36,138 | 35,499 | 15,926 |
Expected return on plan assets | (52,343) | (57,438) | (25,978) |
Amortization of prior service (credit) cost | 569 | 572 | 761 |
Amortization of losses | 10,363 | 11,648 | 11,651 |
Pension settlement loss | 8,787 | 0 | 0 |
Net periodic benefit cost | 13,371 | 1,944 | 8,006 |
Postretirement | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 1,849 | 1,716 | 1,249 |
Interest cost | 1,432 | 1,327 | 827 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (153) | (153) | (151) |
Amortization of losses | 81 | 229 | 333 |
Pension settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 3,209 | $ 3,119 | $ 2,258 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 3.46% | 3.99% | 3.55% |
Rate of compensation increase | 2.67% | 2.61% | 2.60% |
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||
Discount rate | 3.91% | 3.42% | 3.77% |
Expected long-term return on plan assets | 6.37% | 6.32% | 7.38% |
Rate of compensation increase | 2.67% | 2.61% | 2.59% |
Postretirement | |||
Assumptions used to determine benefit obligations at December 31: | |||
Discount rate | 3.20% | 3.82% | 3.14% |
Rate of compensation increase | 3.63% | 3.68% | 3.10% |
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||
Discount rate | 3.91% | 3.40% | 3.64% |
Rate of compensation increase | 3.63% | 3.68% | 3.10% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rates (Details) - Postretirement | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 7.00% | 7.50% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 5.00% | 5.00% |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 6.50% | 5.00% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment of Plan Assets (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 25.00% | 22.00% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 31.00% | 24.00% |
U.S. fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 19.00% | 13.00% |
International fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 21.00% | 36.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 4.00% | 5.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | $ 745,858 | $ 844,588 |
Investments at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 617,858 | 671,718 |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 128,000 | 172,870 |
Mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 128,000 | 172,870 |
Mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | 0 | 0 |
Mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, at fair value | $ 0 | $ 0 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 45,443 |
2021 | 44,157 |
2022 | 45,396 |
2023 | 46,400 |
2024 | 47,098 |
2025 — 2029 | 243,013 |
Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 2,988 |
2021 | 2,863 |
2022 | 2,902 |
2023 | 2,798 |
2024 | 2,730 |
2025 — 2029 | $ 12,990 |
Other Operating Expense, Net -
Other Operating Expense, Net - Schedule of Other Operating Expenses, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Environmental liability expense | $ (17,832) | $ (8,332) | $ (1,451) |
Loss on sale or disposal of property, plant and equipment | (1,295) | (3,186) | (2,032) |
Gain on foreign exchange | (3,203) | 1,114 | 2,335 |
Equity income (loss) from joint venture | (5,089) | (4,359) | (495) |
Insurance settlement | 4,500 | 0 | (13) |
Miscellaneous income (expense) | (2,078) | 2,341 | 382 |
Total other operating expense, net | $ (24,997) | $ (12,422) | $ (1,274) |
Environmental loss contingencies term | 20 years |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Federal | $ 7,789 | $ (8,630) | $ 10,871 |
Foreign | (4,201) | (10,115) | (121) |
State and other | 536 | (657) | (201) |
Total Current | 4,124 | (19,402) | 10,549 |
Deferred | |||
Federal | 2,471 | 4,238 | (34,635) |
Foreign | 22,702 | (11,901) | 4,563 |
State and other | 379 | 25 | 290 |
Total Deferred | 25,552 | (7,638) | (29,782) |
Income tax expense | $ 29,676 | $ (27,040) | $ (19,233) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | Nov. 17, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% | |
Nontaxable bargain purchase gain | 0.00% | (4.20%) | (32.30%) | |
Change in valuation allowance | (8.60%) | 0.00% | 0.00% | |
Tax credits (excluding FTC) | 3.10% | (3.00%) | (1.50%) | |
State credits | 2.80% | 0.00% | 0.00% | |
U.S. federal rate change | 0.00% | 0.00% | 3.20% | |
Difference in foreign statutory rates | 2.30% | 5.90% | 0.00% | |
Global Intangible Low Taxed Income (Net of FTC) | 0.00% | 3.70% | 0.00% | |
Book tax differences related to joint venture | 0.00% | 2.00% | 0.00% | |
Net changes in uncertain tax positions | (1.20%) | (3.10%) | 0.00% | |
Adjustment to previously filed tax returns | 0.10% | (2.40%) | (0.10%) | |
Other | 0.50% | 1.50% | 1.30% | |
Income tax rate as reported | 20.00% | 21.40% | 5.60% | |
Business Acquisition [Line Items] | ||||
Gain on bargain purchase | $ 0 | $ 20,449 | $ 316,555 | |
Change in valuation allowance for deferred tax assets | $ 16,000 | |||
Re-measurement of deferred tax assets | 11,000 | |||
Tembec Inc. | ||||
Business Acquisition [Line Items] | ||||
Gain on bargain purchase | $ 317,000 | $ 20,000 | $ 317,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Gross deferred tax assets: | ||
U.S. federal and Canadian net operating losses | $ 205,563 | $ 203,330 |
Canadian pool of scientific research and experimentation deductions (SR&ED) | 87,315 | 87,253 |
Tax credit carryforwards | 74,503 | 80,182 |
Property, plant and equipment basis differences | 66,653 | 57,073 |
Pension, postretirement and other employee benefits | 52,126 | 56,687 |
Environmental liabilities | 39,118 | 36,583 |
Deferred interest deductions | 15,537 | 5,820 |
Capitalized costs | 2,979 | 5,275 |
State net operating losses | 3,249 | 2,942 |
Other | 12,818 | 9,738 |
Total gross deferred tax assets | 559,861 | 544,883 |
Less: valuation allowance | (94,660) | (85,938) |
Total deferred tax assets after valuation allowance | 465,201 | 458,945 |
Gross deferred tax liabilities: | ||
Property, plant and equipment basis differences | (90,290) | (92,857) |
Intangible assets | (12,284) | (15,579) |
Other | (2,961) | (3,054) |
Total gross deferred tax liabilities | (105,535) | (111,490) |
Net deferred tax asset | 359,666 | 347,455 |
Deferred tax assets | 384,513 | 375,471 |
Deferred tax liabilities | (24,847) | (28,016) |
Deferred tax assets (liabilities) | $ 359,666 | $ 347,455 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards, Tax Effected | $ 74,503 | $ 80,182 |
Interest limitation carryforwards, Tax Effected | 15,537 | 5,820 |
Canadian pool of SR&ED, Tax Effected | 87,315 | $ 87,253 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards, Gross Amount | 49,143 | |
Tax credit carryforwards, Tax Effected | 49,143 | |
Tax credit carryforwards, Valuation Allowance | (49,143) | |
Net operating losses, Gross Amount | 910,097 | |
Net operating losses, Tax Effected | 201,504 | |
Net operating losses, Valuation Allowance | (3,180) | |
Canadian pool of SR&ED, Gross Amount | 407,587 | |
Canadian pool of SR&ED, Tax Effected | 87,315 | |
Canadian pool of SR&ED, Valuation Allowance | 0 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards, Gross Amount | 24,260 | |
Tax credit carryforwards, Tax Effected | 24,260 | |
Tax credit carryforwards, Valuation Allowance | (24,018) | |
Net operating losses, Gross Amount | 71,521 | |
Net operating losses, Tax Effected | 3,249 | |
Net operating losses, Valuation Allowance | (2,782) | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses, Gross Amount | 19,329 | |
Net operating losses, Tax Effected | 4,059 | |
Net operating losses, Valuation Allowance | 0 | |
Interest limitation carryforwards, Gross Amount | 70,624 | |
Interest limitation carryforwards, Tax Effected | 15,537 | |
Interest limitation carryforwards, Valuation Allowance | $ (15,537) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 8,844 | $ 23,804 | $ 0 |
Decreases related to prior year tax positions | (193) | (17,872) | 0 |
Increases related to prior year tax positions | 1,904 | 1,137 | 11,171 |
Increases related to current year tax positions | 0 | 1,775 | 12,633 |
Balance at December 31, | $ 10,555 | $ 8,844 | $ 23,804 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Contingency [Line Items] | |||
Interest and penalties accrued (less than) | $ 1 | $ 1 | $ 1 |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Amount unrecognized tax benefits that it is reasonably possible will increase (decrease) in the next twelve months | (2) | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Amount unrecognized tax benefits that it is reasonably possible will increase (decrease) in the next twelve months | $ 2 |
Segment and Geographical Info_3
Segment and Geographical Information - Net Sales and Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Information [Line Items] | |||||||||||
Net Sales | $ 467,970 | $ 416,129 | $ 450,233 | $ 441,060 | $ 481,345 | $ 501,298 | $ 494,860 | $ 479,491 | $ 1,775,392 | $ 1,956,994 | $ 940,416 |
Operating Income | $ (31,635) | $ (8,564) | $ (15,320) | $ (27,599) | $ 16,783 | $ 42,940 | $ 52,859 | $ 35,233 | (83,118) | 147,815 | 58,980 |
Eliminations | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | (65,667) | (70,221) | (7,394) | ||||||||
High Purity Cellulose | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 1,126,987 | 1,192,389 | 866,861 | ||||||||
Operating Income | 6,588 | 112,308 | 120,356 | ||||||||
Forest Products | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 299,113 | 355,660 | 33,945 | ||||||||
Operating Income | (30,904) | 24,850 | (4) | ||||||||
Paperboard | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Operating Income | 4,120 | 4,392 | (899) | ||||||||
Pulp & Newsprint | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 214,972 | 282,300 | 28,129 | ||||||||
Operating Income | 1,658 | 71,899 | 1,683 | ||||||||
Corporate | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Operating Income | (64,580) | (65,634) | (62,156) | ||||||||
Cellulose Specialties | High Purity Cellulose | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 765,077 | 831,805 | 661,760 | ||||||||
Commodity Products | High Purity Cellulose | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 279,527 | 243,711 | 183,208 | ||||||||
Other sales | High Purity Cellulose | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 82,383 | 116,873 | 21,893 | ||||||||
Other sales | Forest Products | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 68,753 | 71,242 | 8,065 | ||||||||
Lumber | Forest Products | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 230,360 | 284,418 | 25,880 | ||||||||
Paperboard | Paperboard | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 199,987 | 196,866 | 18,875 | ||||||||
Pulp | Pulp & Newsprint | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | 127,784 | 169,025 | 17,553 | ||||||||
Newsprint | Pulp & Newsprint | Operating Segments | |||||||||||
Product Information [Line Items] | |||||||||||
Net Sales | $ 87,188 | $ 113,275 | $ 10,576 |
Segment and Geographical Info_4
Segment and Geographical Information - Schedule of Identifiable Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets Held for Sale | $ 0 | $ 93,707 |
Total Assets | 2,480,147 | 2,679,086 |
Operating Segments | High Purity Cellulose | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets, excluding assets held for sale | 1,559,073 | 1,643,092 |
Operating Segments | Forest Products | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets, excluding assets held for sale | 171,167 | 166,801 |
Operating Segments | Paperboard | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets, excluding assets held for sale | 145,030 | 168,458 |
Operating Segments | Pulp & Newsprint | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets, excluding assets held for sale | 102,959 | 113,055 |
Operating Segments | Corporate | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets, excluding assets held for sale | $ 501,918 | $ 493,973 |
Segment and Geographical Info_5
Segment and Geographical Information - Long-lived Assets by Country (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-life assets | $ 1,907,116 | $ 1,962,994 |
Assets of discontinued operations | 0 | 42,500 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-life assets | 791,769 | 829,153 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-life assets | 905,897 | 920,503 |
Assets of discontinued operations | 51,000 | |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-life assets | 209,304 | 213,338 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-life assets | $ 146 | $ 0 |
Segment and Geographical Info_6
Segment and Geographical Information - Schedule of Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 105,370 | $ 129,033 | $ 71,483 |
Depreciation and amortization | 153,275 | 145,957 | 96,646 |
Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 79,293 | 92,980 | 65,691 |
Depreciation and amortization | 123,279 | 119,231 | 93,177 |
Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 13,667 | 26,691 | 4,409 |
Depreciation and amortization | 9,288 | 6,683 | 728 |
Operating Segments | Paperboard | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 1,446 | 1,598 | 17 |
Depreciation and amortization | 15,587 | 15,674 | 1,922 |
Operating Segments | Pulp & Newsprint | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 4,664 | 4,938 | 1,347 |
Depreciation and amortization | 4,323 | 3,711 | 505 |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 6,300 | 2,826 | 19 |
Depreciation and amortization | $ 798 | $ 658 | $ 314 |
Segment and Geographical Info_7
Segment and Geographical Information - Sales by Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 467,970 | $ 416,129 | $ 450,233 | $ 441,060 | $ 481,345 | $ 501,298 | $ 494,860 | $ 479,491 | $ 1,775,392 | $ 1,956,994 | $ 940,416 |
Percentage of Sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales | Geographic Concentration Risk | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 694,785 | $ 771,575 | $ 336,737 | ||||||||
Percentage of Sales | 39.00% | 40.00% | 37.00% | ||||||||
Sales | Geographic Concentration Risk | China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 328,037 | $ 348,550 | $ 248,419 | ||||||||
Percentage of Sales | 18.00% | 18.00% | 26.00% | ||||||||
Sales | Geographic Concentration Risk | Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 221,601 | $ 259,949 | $ 41,178 | ||||||||
Percentage of Sales | 12.00% | 13.00% | 4.00% | ||||||||
Sales | Geographic Concentration Risk | Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 119,839 | $ 143,577 | $ 123,850 | ||||||||
Percentage of Sales | 7.00% | 7.00% | 13.00% | ||||||||
Sales | Geographic Concentration Risk | Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 268,417 | $ 291,008 | $ 108,992 | ||||||||
Percentage of Sales | 15.00% | 15.00% | 12.00% | ||||||||
Sales | Geographic Concentration Risk | Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 10,223 | $ 11,868 | $ 11,576 | ||||||||
Percentage of Sales | 1.00% | 1.00% | 1.00% | ||||||||
Sales | Geographic Concentration Risk | Other Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 115,332 | $ 125,773 | $ 67,739 | ||||||||
Percentage of Sales | 7.00% | 6.00% | 7.00% | ||||||||
Sales | Geographic Concentration Risk | All other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 17,158 | $ 4,694 | $ 1,925 | ||||||||
Percentage of Sales | 1.00% | 0.00% | 0.00% |
Segment and Geographical Info_8
Segment and Geographical Information - Narrative (Details) - customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of significant customers | 0 | 3 | 3 |
Segment and Geographical Info_9
Segment and Geographical Information - Percentage of Sales to Significant Customers (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 100.00% | 100.00% | 100.00% |
Sales | Customer Concentration Risk | Eastman Chemical Company | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 20.00% | ||
Sales | Customer Concentration Risk | Nantong Cellulose Fibers, Co., Ltd. | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 15.00% | ||
Sales | Customer Concentration Risk | Daicel Corporation | |||
Revenue, Major Customer [Line Items] | |||
Percentage of Sales | 10.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Leases, Operating [Abstract] | |||
Rental expense for operating leases | $ 7,000 | ||
Rental expense for operating leases | $ 8,000 | $ 6,000 | |
Purchase Obligations | |||
2020 | 74,663 | ||
2020 | 48,881 | ||
2021 | 41,604 | ||
2022 | 29,376 | ||
2023 | 11,022 | ||
Thereafter | 101,679 | ||
Total | $ 307,225 | ||
Number of employees | employee | 4,000 | ||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Standby letters of credit | |||
Purchase Obligations | |||
Amount of letters of credit outstanding | $ 37,000 | ||
Surety bonds | |||
Purchase Obligations | |||
Guarantee | 86,000 | ||
LTF project | |||
Purchase Obligations | |||
Guarantee | $ 31,000 | ||
Unionized Employees Concentration Risk | |||
Purchase Obligations | |||
Concentration risk percentage | 74.00% |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid (received) during the period: | |||
Interest | $ 59,434 | $ 55,286 | $ 35,451 |
Income taxes | 3,266 | 12,558 | 5,992 |
Non-cash investing and financing activities: | |||
Capital assets purchased on account | 14,769 | 16,864 | 12,083 |
Value of stock issued for Acquisition | $ 0 | $ 0 | $ 141,192 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 559 | $ 566 | $ 151 |
Charged to Cost and Expenses | 232 | 239 | 410 |
Charged to Other Accounts | 10 | (54) | 5 |
Acquisition | 0 | 0 | 0 |
Deductions | (195) | (192) | 0 |
Balance at End of Year | 606 | 559 | 566 |
Allowance for sales returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,259 | 1,121 | 523 |
Charged to Cost and Expenses | (346) | 969 | 598 |
Charged to Other Accounts | 0 | 0 | 0 |
Acquisition | 0 | 0 | 0 |
Deductions | (183) | (831) | 0 |
Balance at End of Year | 730 | 1,259 | 1,121 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 85,938 | 92,081 | 20,821 |
Charged to Cost and Expenses | 8,722 | 0 | 0 |
Charged to Other Accounts | 0 | 3,715 | 873 |
Acquisition | 0 | 0 | 71,722 |
Deductions | 0 | (9,858) | (1,335) |
Balance at End of Year | 94,660 | 85,938 | 92,081 |
Self-insurance liabilities | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,011 | 1,289 | 428 |
Charged to Cost and Expenses | 622 | 348 | 1,660 |
Charged to Other Accounts | 0 | 0 | 0 |
Acquisition | 0 | 0 | 0 |
Deductions | (276) | (626) | (799) |
Balance at End of Year | $ 1,357 | $ 1,011 | $ 1,289 |
Quarterly Results for 2019 an_3
Quarterly Results for 2019 and 2018 (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 467,970 | $ 416,129 | $ 450,233 | $ 441,060 | $ 481,345 | $ 501,298 | $ 494,860 | $ 479,491 | $ 1,775,392 | $ 1,956,994 | $ 940,416 |
Gross Margin | 11,930 | 16,619 | 17,979 | 7,619 | 52,259 | 82,297 | 87,677 | 68,914 | 54,157 | 291,147 | 140,753 |
Operating Income | (31,635) | (8,564) | (15,320) | (27,599) | 16,783 | 42,940 | 52,859 | 35,233 | (83,118) | 147,815 | 58,980 |
Income (loss) from continuing operations | (56,994) | (14,353) | (19,274) | (27,987) | 7,099 | 29,968 | 44,638 | 17,746 | (118,608) | 99,451 | 323,427 |
Income from discontinued operations | 85,727 | 137 | 4,357 | 5,937 | 5,536 | 7,969 | 8,751 | 6,709 | 96,158 | 28,965 | 1,537 |
Net Income (Loss) | $ 28,733 | $ (14,216) | $ (14,917) | $ (22,050) | $ 12,635 | $ 37,937 | $ 53,389 | $ 24,455 | $ (22,450) | $ 128,416 | $ 324,964 |
Basic earnings per share-continuing operations (in dollars per share) | $ (0.91) | $ (0.29) | $ (0.46) | $ (0.64) | $ 0.07 | $ 0.52 | $ 0.80 | $ 0.28 | $ (2.33) | $ 1.70 | $ 7.13 |
Income (loss) from discontinued operations (in dollars per share) | 1.36 | 0 | 0.09 | 0.12 | 0.11 | 0.16 | 0.17 | 0.13 | 1.76 | 0.57 | 0.04 |
Basic earnings per share-total (in dollars per share) | 0.45 | (0.29) | (0.37) | (0.52) | 0.18 | 0.68 | 0.97 | 0.41 | (0.57) | 2.27 | 7.17 |
Diluted earnings per share-continuing operations (in dollars per share) | (0.91) | (0.29) | (0.46) | (0.64) | 0.07 | 0.47 | 0.70 | 0.28 | (2.33) | 1.52 | 5.78 |
Income (loss) from discontinued operations (in dollars per share) | 1.36 | 0 | 0.09 | 0.12 | 0.11 | 0.13 | 0.13 | 0.10 | 1.76 | 0.44 | 0.03 |
Diluted earnings per share-total (in dollars per share) | $ 0.45 | $ (0.29) | $ (0.37) | $ (0.52) | $ 0.18 | $ 0.60 | $ 0.83 | $ 0.38 | $ (0.57) | $ 1.96 | $ 5.81 |