Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 25, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2022 | |
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, $0.01 par value | |
Trading Symbol | RYAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,971,163 | |
Entity Central Index Key | 0001597672 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Income Statement [Abstract] | ||||
Net Sales | $ 399,220 | $ 341,019 | $ 750,936 | $ 659,697 |
Cost of Sales | (372,525) | (318,740) | (718,314) | (616,994) |
Gross Margin | 26,695 | 22,279 | 32,622 | 42,703 |
Selling, general and administrative expenses | (28,029) | (18,235) | (48,137) | (34,075) |
Foreign exchange gains (losses) | 1,950 | (2,127) | 1,454 | (2,733) |
Other operating expense, net | (3,513) | (540) | (4,629) | (4,992) |
Operating Income (Loss) | (2,897) | 1,377 | (18,690) | 903 |
Interest expense | (16,687) | (16,470) | (32,885) | (31,819) |
Interest income and other, net | 3,155 | (939) | 2,642 | (1,733) |
Other components of pension and OPEB, excluding service costs | (109) | (66) | 901 | 742 |
Gain (loss) on GreenFirst equity securities | (3,703) | 0 | 5,197 | 0 |
Loss from Continuing Operations Before Income Taxes | (20,241) | (16,098) | (42,835) | (31,907) |
Income tax (expense) benefit | (3,656) | 24,656 | (5,052) | 24,564 |
Equity in loss of equity method investment | (1,046) | (261) | (1,436) | (570) |
Income (loss) from Continuing Operations | (24,943) | 8,297 | (49,323) | (7,913) |
Income from discontinued operations, net of taxes | 1,676 | 113,931 | 1,205 | 103,114 |
Net Income (Loss) | $ (23,267) | $ 122,228 | $ (48,118) | $ 95,201 |
Basic Earnings Per Common Share | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.39) | $ 0.13 | $ (0.77) | $ (0.12) |
Income from discontinued operations (in dollars per share) | 0.03 | 1.79 | 0.02 | 1.62 |
Net income (loss) per common share-basic (in dollars per share) | (0.36) | 1.92 | (0.75) | 1.50 |
Diluted Earnings Per Common Share | ||||
Income (loss) from continuing operations (in dollars per share) | (0.39) | 0.13 | (0.77) | (0.12) |
Income from discontinued operations (in dollars per share) | 0.03 | 1.76 | 0.02 | 1.62 |
Net income (loss) per common share -diluted (in dollars per share) | $ (0.36) | $ 1.89 | $ (0.75) | $ 1.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (23,267) | $ 122,228 | $ (48,118) | $ 95,201 |
Other Comprehensive Income (Loss), net of tax | ||||
Foreign currency translation adjustments | (9,582) | 3,046 | (15,864) | (6,221) |
Unrealized gain (loss) on derivative instruments | 77 | (1,585) | 157 | (2,853) |
Net gain from pension and postretirement plans | 1,948 | 3,363 | 3,896 | 6,664 |
Total other comprehensive income (loss) | (7,557) | 4,824 | (11,811) | (2,410) |
Comprehensive Income (Loss) | $ (30,824) | $ 127,052 | $ (59,929) | $ 92,791 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 147,748 | $ 253,307 |
Accounts receivable, net | 208,001 | 181,604 |
Inventory | 242,665 | 230,691 |
Income tax receivable | 22,452 | 21,411 |
Investment in GreenFirst equity securities | 0 | 38,510 |
Prepaid and other current assets | 80,596 | 50,597 |
Total current assets | 701,462 | 776,120 |
Property, Plant and Equipment | 1,165,346 | 1,146,162 |
Deferred Tax Assets | 333,720 | 335,119 |
Intangible Assets, net | 27,928 | 31,432 |
Other Assets | 153,685 | 156,191 |
Total Assets | 2,382,141 | 2,445,024 |
Current Liabilities | ||
Accounts payable | 183,876 | 169,456 |
Accrued and other current liabilities | 148,232 | 136,124 |
Debt due within one year | 34,966 | 37,680 |
Current environmental liabilities | 11,291 | 11,303 |
Total current liabilities | 378,365 | 354,563 |
Long-term debt | 870,487 | 891,031 |
Long-term environmental liabilities | 159,682 | 159,919 |
Pension and Other Postretirement Benefits | 163,690 | 170,317 |
Deferred Tax Liabilities | 20,686 | 20,485 |
Other Long-Term Liabilities | 28,392 | 34,366 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, 140,000,000 shares authorized at $0.01 par value, 63,971,163 and 63,738,409 issued and outstanding, as of June 25, 2022 and December 31, 2021, respectively | 639 | 637 |
Additional paid-in capital | 415,257 | 408,834 |
Retained earnings | 441,224 | 489,342 |
Accumulated other comprehensive loss | (96,281) | (84,470) |
Total Stockholders’ Equity | 760,839 | 814,343 |
Total Liabilities and Stockholders’ Equity | $ 2,382,141 | $ 2,445,024 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated deprecation | $ 1,678,696 | $ 1,642,442 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 63,971,163 | 63,738,409 |
Common stock, shares outstanding (in shares) | 63,971,163 | 63,738,409 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Operating Activities | ||
Net income (loss) | $ (48,118) | $ 95,201 |
Income from discontinued operations | (1,205) | (103,114) |
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 61,144 | 65,728 |
Stock-based incentive compensation expense | 6,728 | 317 |
Deferred income tax expense (benefit) | 1,536 | (23,290) |
Gain on GreenFirst equity securities | (5,197) | 0 |
Net periodic benefit cost of pension and other postretirement plans | 2,972 | 5,163 |
Loss from sale/disposal of property, plant and equipment | 2,756 | 0 |
Unrealized gain on derivative instruments | 0 | (3,885) |
Unrealized loss from foreign currency | (2,729) | 5,236 |
Other | 3,645 | (145) |
Changes in operating assets and liabilities: | ||
Receivables | (31,100) | (13,283) |
Inventories | (13,156) | (25,231) |
Accounts payable | 12,248 | 6,126 |
Accrued liabilities | 14,478 | 27,555 |
All other operating activities | (36,625) | 12,943 |
Contributions to pension and other postretirement plans | (3,659) | (3,535) |
Cash (Used in) Provided by Operating Activities-continuing operations | (36,282) | 45,786 |
Cash Provided by Operating Activities-discontinued operations | 0 | 140,633 |
Cash (Used in) Provided by Operating Activities | (36,282) | 186,419 |
Investing Activities | ||
Capital expenditures, net | (86,675) | (47,048) |
Proceeds from sale of assets | 86 | 0 |
Investment in equity method investment | 0 | (4,013) |
Cash Used for Investing Activities-continuing operations | (86,589) | (51,061) |
Cash Provided by (Used for) Investing Activities-discontinued operations | 43,288 | (5,758) |
Cash Used for Investing Activities | (43,301) | (56,819) |
Financing Activities | ||
Other borrowings | 5,569 | 0 |
Repayment of long-term debt | (25,215) | (4,651) |
Short-term financing, net | (1,720) | (1,296) |
Common stock repurchased | (304) | (1,423) |
Debt issue costs | 0 | (449) |
Cash Used for Financing Activities | (21,670) | (7,819) |
Cash and Cash Equivalents | ||
Change in cash and cash equivalents | (101,253) | 121,781 |
Net effect of foreign exchange on cash and cash equivalents | (4,306) | (695) |
Balance, beginning of period | 253,307 | 93,653 |
Balance, end of period | $ 147,748 | $ 214,739 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 6 Months Ended |
Jun. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these consolidated financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the consolidated financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 1, 2022. As a result of the sale of its lumber and newsprint assets in August 2021 to GreenFirst Forest Products, Inc. (“GreenFirst”), the Company presents the results for those operations as 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 the Company’s operations and financial results. See Note 2 — Discontinued Operations for additional information. New or Recently Adopted Accounting Pronouncements There have been no new or recently adopted accounting pronouncements impacting the Company’s unaudited consolidated interim financial statements. Subsequent Events Events and transactions subsequent to the consolidated balance sheets date have been evaluated for potential recognition and disclosure through the date of issuance of these Consolidated Financial Statements. No subsequent events were identified. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 25, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 28, 2021, the Company completed the sale of its lumber and newsprint facilities and certain related assets located in Ontario and Québec Canada, to GreenFirst for $232 million, paid in cash, 28.7 million shares of GreenFirst’s common stock and a credit note issued to the Company by GreenFirst in the amount of CAD $8 million (approximately USD $5 million after present value discount). The Company recently sold the GreenFirst common shares for $43 million. Prior to the sale, the GreenFirst common shares were accounted for at fair value, with changes in fair value recorded in the Consolidated Statements of Income and Comprehensive Income. See Note 10 — Fair Value Measurements for additional information. The cash received at closing was preliminary and subject to final purchase price and other sale-related adjustments. During the first quarter of 2022, the Company trued-up certain sale-related items with GreenFirst for a total net cash outflow of $3 million, as previously disclosed. Pursuant to the terms of the asset purchase agreement, GreenFirst and the Company continue efforts to finalize the closing inventory valuation adjustment. In connection with the transaction, the parties entered into a Transition Services Agreement ("TSA") whereby the Company would provide certain transitional services to GreenFirst, including information technology, accounting, treasury and other services following the closing of the transaction. The transitional services have been completed and the TSA was terminated during the second quarter of 2022. Income from discontinued operations is comprised of the following: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Net sales (a) $ — $ 212,376 $ — $ 358,838 Cost of sales 326 (86,961) 153 (169,688) Gross margin 326 125,415 153 189,150 Selling, general and administrative expenses and other 1,953 (10,428) 1,495 (18,894) Operating income 2,279 114,987 1,648 170,256 Interest expense (b) — (2,703) — (5,317) Other non-operating income (4) 368 (9) 713 Income from discontinued operations before income taxes 2,275 112,652 1,639 165,652 Income tax benefit (expense) (599) 1,279 (434) (62,538) Income from discontinued operations, net of taxes $ 1,676 $ 113,931 $ 1,205 $ 103,114 (a) There were no intercompany sales for the three and six months ended June 25, 2022 and $10 million and $22 million for three months and six months ended June 26, 2021, respectively. (b) The Company allocated interest expense to discontinued operations based on the total portion of debt not attributable to other operations repaid as a result of the transaction. Other discontinued operations information is as follows: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Depreciation and amortization $ — $ — $ — $ 3,173 Capital expenditures $ — $ 2,326 $ — $ 5,814 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 25, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The Company’s accounts receivable included the following: June 25, 2022 December 31, 2021 Accounts receivable, trade $ 175,874 $ 131,371 Accounts receivable, other (a) 33,426 51,007 Allowance for expected credit losses (1,299) (774) Total accounts receivable, net $ 208,001 $ 181,604 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 6 Months Ended |
Jun. 25, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The Company’s inventory included the following: June 25, 2022 December 31, 2021 Finished goods $ 179,383 $ 175,832 Work-in-progress 6,696 6,533 Raw materials 49,767 41,974 Manufacturing and maintenance supplies 6,819 6,352 Total inventory $ 242,665 $ 230,691 |
Leases
Leases | 6 Months Ended |
Jun. 25, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 25, 2022, the Company’s leases have remaining lease terms of 1 year to 14.4 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 right of use (“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 June 25, 2022 and December 31, 2021 was 7.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Operating Leases Operating lease expense $ 1,917 $ 1,423 $ 3,848 $ 2,838 Finance Leases Amortization of ROU assets 94 87 185 173 Interest 35 42 72 85 Total $ 2,046 $ 1,552 $ 4,105 $ 3,096 As of June 25, 2022, the weighted average remaining lease term is 5.3 years and 4.3 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term is 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash used in operating activities includes approximately $2 million and $3 million from operating lease payments made during the six months ended June 25, 2022 and June 26, 2021, respectively. Finance lease cash flows were immaterial during the six months ended June 25, 2022 and June 26, 2021. As of June 25, 2022 and December 31, 2021, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2022 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification June 25, 2022 December 31, 2021 Right-of-use assets Other assets $ 15,904 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 6,013 $ 6,050 Lease liabilities, non-current Other long-term liabilities $ 10,113 $ 12,551 As of June 25, 2022, operating lease maturities for the remainder of 2022 through 2026 and thereafter are as follows: June 25, 2022 Remainder of 2022 $ 4,100 2023 6,194 2024 2,697 2025 1,746 2026 1,118 Thereafter 5,222 Total minimum lease payments $ 21,077 Less: imputed interest (4,950) Present value of future minimum lease payments $ 16,127 |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 25, 2022, the Company’s leases have remaining lease terms of 1 year to 14.4 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 right of use (“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 June 25, 2022 and December 31, 2021 was 7.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Operating Leases Operating lease expense $ 1,917 $ 1,423 $ 3,848 $ 2,838 Finance Leases Amortization of ROU assets 94 87 185 173 Interest 35 42 72 85 Total $ 2,046 $ 1,552 $ 4,105 $ 3,096 As of June 25, 2022, the weighted average remaining lease term is 5.3 years and 4.3 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term is 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash used in operating activities includes approximately $2 million and $3 million from operating lease payments made during the six months ended June 25, 2022 and June 26, 2021, respectively. Finance lease cash flows were immaterial during the six months ended June 25, 2022 and June 26, 2021. As of June 25, 2022 and December 31, 2021, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2022 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification June 25, 2022 December 31, 2021 Right-of-use assets Other assets $ 15,904 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 6,013 $ 6,050 Lease liabilities, non-current Other long-term liabilities $ 10,113 $ 12,551 As of June 25, 2022, operating lease maturities for the remainder of 2022 through 2026 and thereafter are as follows: June 25, 2022 Remainder of 2022 $ 4,100 2023 6,194 2024 2,697 2025 1,746 2026 1,118 Thereafter 5,222 Total minimum lease payments $ 21,077 Less: imputed interest (4,950) Present value of future minimum lease payments $ 16,127 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jun. 25, 2022 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities The Company’s accrued and other current liabilities included the following: June 25, 2022 December 31, 2021 Accrued customer incentives $ 30,132 $ 26,726 Accrued payroll and benefits 23,902 13,363 Accrued interest 19,449 19,153 Accrued income taxes 7,910 9,210 Accrued property and other taxes 7,644 4,074 Deferred revenue (a) 23,361 22,518 Other current liabilities 35,834 41,080 Total accrued and other current liabilities $ 148,232 $ 136,124 |
Debt and Finance Leases
Debt and Finance Leases | 6 Months Ended |
Jun. 25, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | Debt and Finance Leases The Company’s debt and finance leases included the following: June 25, 2022 December 31, 2021 ABL Credit Facility due 2025, $108 million available, bearing interest of approximately 1.63% LIBOR plus 2.25%, interest rate of 3.88% at June 25, 2022 $ — $ — Senior Secured Notes due 2026 at a fixed interest rate of 7.625% 475,000 475,000 Senior Notes due 2024 at a fixed interest rate of 5.5% 349,185 369,185 Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill 60,167 65,451 Other loans (a) 21,150 18,280 Short-term factoring facility-France 5,398 7,118 Finance lease obligation 1,965 2,138 Total debt principal payments due 912,865 937,172 Less: Debt premium, original issue discount and issuance costs, net (7,412) (8,461) Total debt 905,453 928,711 Less: Debt due within one year (34,966) (37,680) Long-term debt $ 870,487 $ 891,031 (a) Loans for energy and bioethanol projects in France. On May 13, 2022, the Company repurchased $20 million of its 5.5% Senior Notes due 2024 (the “Unsecured Notes”) through open-market transactions and retired such Unsecured Notes for approximately $20 million in cash. As of June 25, 2022, debt payments due during the remainder of 2022, the next four years and thereafter are as follows: Debt Principal Payments Remainder of 2022 $ 30,111 2023 10,527 2024 360,320 2025 11,174 2026 485,563 Thereafter 13,205 Total principal payments $ 910,900 |
Environmental Liabilities
Environmental Liabilities | 6 Months Ended |
Jun. 25, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities | Environmental Liabilities An analysis of liabilities for the six months ended June 25, 2022 is as follows: Balance, December 31, 2021 $ 171,222 Increase in liabilities 1,599 Payments (1,626) Foreign currency adjustments (222) Balance, June 25, 2022 170,973 Less: Current portion (11,291) Long-term environmental liabilities $ 159,682 In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy and/or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its environmental liability sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies and non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of June 25, 2022, the Company estimates this exposure could range up to approximately $85 million, although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several sites and other applicable liabilities. Further, this estimate excludes reasonably possible liabilities which are not currently estimable primarily due to the factors discussed above. Subject to the previous paragraph, the Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its environmental liabilities. However, no assurances are given they will be sufficient for the reasons described above, and additional liabilities could have a material adverse effect on the Company’s financial position, results of operations and cash flows. |
Derivatives Instruments
Derivatives Instruments | 6 Months Ended |
Jun. 25, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | Derivative Instruments The Company’s earnings and cash flows are subject to fluctuations due to changes in interest rates and foreign currency exchange rates. The Company allows for the use of derivative financial instruments to manage interest rate and foreign currency exchange rate exposure but does not allow derivatives to be used for speculative purposes. All derivative instruments are recognized on the consolidated balance sheets at their fair value and are either designated as a hedge of a forecasted transaction or undesignated. Changes in the fair value of a derivative designated as a hedge are recorded in other comprehensive income until earnings are affected by the hedged transaction and are then reported in current earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. In December 2020, the Company terminated all outstanding derivative instruments, which had been previously designated as hedging instruments and had various maturity dates through 2028. Accumulated gains and losses associated with these instruments were deferred as a component of accumulated other comprehensive income (loss) to be recognized in earnings as the underlying hedged transactions occur and affect earnings. 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. There were no derivatives designated as hedging instruments during the three and six months ended June 25, 2022. The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income for the three and six months ended June 26, 2021, is as follows: Three Months Ended June 26, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Foreign exchange forward contracts $ — $ 2,260 Cost of sales Foreign exchange forward contracts $ — $ (102) Interest income and other, net Six Months Ended June 26, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Foreign exchange forward contracts $ — $ 4,088 Cost of sales Foreign exchange forward contracts $ — $ (202) Interest income and other, net The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives are presented below: June 25, 2022 December 31, 2021 Foreign exchange cash flow hedges $ (690) $ (847) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 25, 2022 | |
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, using market information and what management believes to be appropriate valuation methodologies: June 25, 2022 December 31, 2021 Carrying Fair Value (b) Carrying Fair Value (b) Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents Cash $ 145,643 $ 145,643 $ — $ 253,307 $ 253,307 $ — Money market funds 2,105 2,105 — — — — Investment in GreenFirst equity securities — — — 38,510 — 38,510 Liabilities (a): Fixed-rate long-term debt $ 898,091 $ — $ 852,923 $ 919,455 $ — $ 964,308 (a) Liabilities exclude finance lease obligation. (b) The Company did not have Level 3 assets or liabilities at June 25, 2022 or December 31, 2021. The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — Cash and cash equivalents are all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase and the carrying amount is equal to fair market value. The Company had $2 million of money market funds as of June 25, 2022, measured using level 1 inputs. The Company did not have money market funds as of December 31, 2021. 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. Investment in GreenFirst shares — The Company received 28,684,433 common shares of GreenFirst in connection with the sale of the lumber and newsprint assets to GreenFirst, which the Company was required to hold for a minimum of six months following the close of the transaction. Accordingly, prior to February 28, 2022, the fair value of these shares reflected a discount for lack of marketability (“DLOM”) given the restriction on sale by the Company. The primary inputs in the fair value estimate during the minimum holding period were expected term, dividend yield, volatility and risk-free rate. All inputs to the DLOM were observable. GreenFirst is based in Canada and currently does not pay a dividend. On May 2, 2022, the Company sold the 28,684,433 for $43 million. The shares sale agreement contains a purchase price protection clause whereby the Company is entitled to participate in further share price appreciation under certain circumstances over the next 18 months. The following were the key inputs at each measurement date: December 31, 2021 At closing of transaction Expected Term 0.16 years 0.5 years Risk-free rate 0.10 % 0.20 % Dividend yield — — Volatility 73.77 % 92.04 % DLOM 6.77 % 14.38 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 25, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of AOCI are as follows: Six Months Ended June 25, 2022 June 26, 2021 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (76,849) $ (146,614) Other comprehensive gain (loss) before reclassifications — — Income tax on other comprehensive loss — — Reclassifications to earnings: (a) Pension settlement loss — 111 Amortization of losses 4,976 8,169 Amortization of prior service costs 17 276 Income tax on reclassifications (1,097) (1,892) Net comprehensive gain on employee benefit plans, net of tax 3,896 6,664 Balance, end of period (72,953) (139,950) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (847) 1,834 Reclassifications to earnings: (b) Foreign exchange contracts 181 (3,886) Income tax on reclassifications (24) 1,033 Net comprehensive loss on derivative instruments, net of tax 157 (2,853) Balance, end of period (690) (1,019) Foreign currency translation adjustments: Balance, beginning of year (6,774) 11,145 Foreign currency translation adjustment, net of tax of $0 and $0 (15,864) (6,221) Balance, end of period (22,638) 4,924 Accumulated other comprehensive income (loss), end of period $ (96,281) $ (136,045) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 15— Employee Benefit Plans for additional information. (b) Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 9 — Derivative Instruments |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 25, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Additional Paid in Capital Retained Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value For the six months ended June 25, 2022 Balance, December 31, 2021 63,738,409 $ 637 $ 408,834 $ 489,342 $ (84,470) $ 814,343 Net income (loss) — — — (48,118) — (48,118) Other comprehensive income (loss), net of tax — — — — (11,811) (11,811) Issuance of common stock under incentive stock plans 294,936 3 (3) — — — Stock-based compensation — — 6,728 — — 6,728 Repurchase of common shares (a) (62,179) (1) (302) — — (303) Balance, June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 For the three months ended June 25, 2022 Balance, March 26, 2022 63,849,150 $ 638 $ 410,788 $ 464,491 $ (88,724) $ 787,193 Net income (loss) — — — (23,267) — (23,267) Other comprehensive income (loss), net of tax — — — — (7,557) (7,557) Issuance of common stock under incentive stock plans 122,016 1 (1) — — — Stock-based compensation — — 4,470 — — 4,470 Balance, June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 For the six months ended June 26, 2021 Balance, December 31, 2020 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income (loss) — — — 95,201 — 95,201 Other comprehensive income (loss), net of tax — — — — (2,410) (2,410) Issuance of common stock under incentive stock plans 509,713 5 (5) — — — Stock-based compensation — — 385 — — 385 Repurchase of common shares (a) (132,196) (1) (1,421) — — (1,422) Balance, June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 For the three months ended June 26, 2021 Balance, March 27, 2021 63,597,356 $ 636 $ 403,086 $ 395,901 $ (140,869) $ 658,754 Net income (loss) — — — 122,228 — 122,228 Other comprehensive income (loss), net of tax — — — — 4,824 4,824 Issuance of common stock under incentive stock plans 140,000 1 (1) — — — Stock-based compensation — — 1,038 — — 1,038 Repurchase of common shares (a) — — (3) — — (3) Balance, June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 (a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. Common Stock Buyback On January 29, 2018, the Board of Directors authorized a share buyback program pursuant to which the Company may, from time to time, purchase shares of its common stock with an aggregate purchase price of up to $100 million. During the three and six months ended June 25, 2022, and June 26, 2021, the Company did not repurchase any common shares under this buyback program. As of June 25, 2022, there was approximately $60 million of share repurchase authorization remaining under the program. The Company does not expect to utilize any further authorization in the near future. Shareholder Rights Plan On March 21, 2022, the Company adopted a shareholder rights plan (the “Rights Agreement”) whereby a significant penalty is imposed upon any person or group which acquires beneficial ownership of 10% or more of the Company Common Stock without the approval of the Board of Directors (the “Board”). Also on this date, the Board declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock of the Company, par value $0.01 per share (“Company Common Stock”), which was paid to Company stockholders of record as of the close of business on March 31, 2022. The Rights trade with, and are inseparable from, shares of the Company Common Stock. Each Right will allow its holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock for $35.00, once the Rights become exercisable. This portion of a Preferred Share will give the stockholder approximately the same dividend, voting and liquidation rights as would one share of Company Common Stock. The Rights will not be exercisable until 10 days after the public announcement or public disclosure that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 10% or more of the outstanding Company Common Stock (including certain derivative positions), subject to certain exceptions. The Rights will expire on March 20, 2023. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock The following table provides details of the calculations of basic and diluted earnings per share (share and per share amounts not in thousands): Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Income (loss) from continuing operations $ (24,943) $ 8,297 $ (49,323) $ (7,913) Income from discontinued operations 1,676 113,931 1,205 103,114 Net income (loss) available for common stockholders $ (23,267) $ 122,228 $ (48,118) $ 95,201 Shares used for determining basic earnings per share of common stock 63,898,761 63,654,278 63,837,292 63,545,599 Dilutive effect of: Stock options — — — — Performance and restricted stock — 1,159,735 — — Shares used for determining diluted earnings per share of common stock 63,898,761 64,814,013 63,837,292 63,545,599 Basic per share amounts Income (loss) from continuing operations $ (0.39) $ 0.13 $ (0.77) $ (0.12) Income from discontinued operations 0.03 1.79 0.02 1.62 Net income (loss) $ (0.36) $ 1.92 $ (0.75) $ 1.50 Diluted per share amounts Income (loss) from continuing operations $ (0.39) $ 0.13 $ (0.77) $ (0.12) Income from discontinued operations 0.03 1.76 0.02 1.62 Net income (loss) $ (0.36) $ 1.89 $ (0.75) $ 1.50 Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Stock options 78,660 122,525 78,660 122,525 Performance and restricted stock 3,372,498 655,540 3,372,498 2,286,865 Total anti-dilutive instruments 3,451,158 778,065 3,451,158 2,409,390 |
Incentive Stock Plans
Incentive Stock Plans | 6 Months Ended |
Jun. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Stock Plans | Incentive Stock Plans The Company’s total stock-based compensation for the three months ended June 25, 2022, and June 26, 2021 was expense of $4 million and $1 million, respectively. Stock based compensation expense for the six months ended June 25, 2022 and June 26, 2021 was $7 million and $385 thousand, respectively. The Company made new grants of restricted stock units and performance-based stock units to certain employees during the first six months of 2022. The 2022 restricted stock unit awards cliff vest after three years. The 2022 performance-based stock unit awards measure total shareholder return (“TSR”) on an absolute basis and relative to peers. Participants can earn between 0 and 250 percent of the target award. Performance below the threshold for the absolute TSR would result in a zero payout for the TSR metric. There is a performance-based stock award and cash unit stock award that will be measured using the same objectives but paid and accounted for separately. As required by Accounting Standards Codification 718, Compensation-Stock Compensation, the portion of the award to be settled in cash is classified as a liability and remeasured to fair value at the end of each reporting period until settlement. In March 2022, the performance-based share units granted in 2019 vested without meeting the performance thresholds, resulting in no stock units being awarded and no shares of common stock issued. The following table summarizes the activity on the Company’s incentive stock awards for the six months ended June 25, 2022: Stock Options Restricted Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2022 111,124 $ 39.47 927,556 $ 8.72 1,459,716 $ 6.51 Granted — — 1,328,931 5.50 1,284,535 8.24 Forfeited — — (161,708) 5.79 (1,159,319) 6.71 Exercised or settled — — (307,213) 11.08 — — Expired or cancelled (32,464) 38.24 — — — — Outstanding at June 25, 2022 78,660 $ 39.94 1,787,566 $ 6.18 1,584,932 $ 7.77 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 25, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has defined benefit pension and other long-term and postretirement plans covering certain union and non-union employees, primarily in the U.S. and Canada. The defined benefit pension plans are closed to new participants. The liabilities for these plans are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. During 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 a $1 million loss during the three and six months ended June 26, 2021. Additionally, the Company recorded an additional $1 million loss during the three and six months ended June 25, 2022, related to the final asset surplus distribution to the plans’ participants. The settlements were recognized in “Other components of net periodic benefit costs” in the Consolidated Statements of Income and Comprehensive Income (Loss) for the three and six months ended June 26, 2021, and in “Other components of net periodic benefit costs” in the Consolidated Statements of Income for the three and six months ended June 25, 2022. The components of net periodic benefit costs from these plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Service cost $ 2,171 $ 2,600 $ 352 $ 363 Interest cost 4,597 4,446 215 176 Expected return on plan assets (8,379) (9,673) — — Amortization of prior service cost 39 177 (30) (38) Amortization of losses 2,473 4,086 15 2 Pension settlement loss 1,179 890 — — Total net periodic benefit cost $ 2,080 $ 2,526 $ 552 $ 503 Pension Postretirement Six Months Ended Six Months Ended Components of Net Periodic Benefit Cost June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Service cost $ 4,347 $ 5,181 $ 705 $ 725 Interest cost 9,203 8,851 431 351 Expected return on plan assets (16,707) (19,279) — — Amortization of prior service cost 78 352 (61) (76) Amortization of losses 4,946 8,163 30 6 Pension settlement loss 1,179 890 — — Total net periodic benefit cost $ 3,046 $ 4,158 $ 1,105 $ 1,006 Service cost is included in cost of sales and selling, general and administrative expenses in the statements of income, as appropriate. Interest cost, expected return on plan assets, amortization of prior service cost and amortization of losses are included in other components of pension and OPEB, excluding service cost on the consolidated statement of income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate on the loss from continuing operations for the three and six months ended June 25, 2022, was an expense of 18 percent and 12 percent, respectively, compared to an effective tax benefit rate of 153 percent and 77 percent on the loss from continuing operations for the three and six months ended June 26, 2021. The current quarter and year to date June 25, 2022 effective rate differs from the federal statutory rate of 21 percent primarily due to disallowed interest deductions in the U.S. and nondeductible executive compensation, partially offset by US tax credits and tax return to accrual adjustments. The effective tax rate benefit for the three and six months ended June 26, 2021 differs from the federal statutory rate primarily due to a tax benefit recognized by remeasuring the Company’s Canadian deferred tax assets at a higher Canadian blended statutory rate. The statutory tax rate is higher as a result of changing the allocation of income between the Canadian provinces as a result of the sale of Forest Products and Newsprint. Other factors impacting the effective benefit rate are return to accrual adjustments and tax credits, partially offset by nondeductible interest expense in the U.S. and lower tax deductions on vested stock compensation. The Company’s deferred tax assets include approximately $18 million of disallowed U.S. interest deductions that the Company does not believe it will be able to realize, including $7 million recognized as a reduction to tax expense in the six months ended June 26, 2022. In December of 2019 the American Institute of Certified Public Accountants (“AICPA”) issued Technical Questions and Answers (“TQA”) 3300.01-02 which asserts that certain material evidence regarding the realizability of disallowed U.S. interest deductions should be ignored when assessing the need for a valuation allowance. In strict compliance with the AICPA’s TQA, the Company has not recognized a valuation allowance on a portion of the deferred tax assets generated from disallowed interest. The Company has a $21 million receivable related to a U.S. federal tax refund, which is expected to be collected within the next twelve months. |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Jun. 25, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company operates in the following business segments: High Purity Cellulose, Paperboard, High-Yield Pulp and Corporate. The Corporate operations consist primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. The Company allocates a portion of 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 High-Yield Pulp sales to Paperboard. 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: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 High Purity Cellulose Cellulose Specialties $ 218,440 $ 167,576 $ 401,994 $ 335,413 Commodity Products 59,758 62,384 130,513 121,317 Other sales (a) 24,343 24,639 50,979 47,630 Total High Purity Cellulose 302,541 254,599 583,486 504,360 Paperboard Paperboard 63,236 56,762 117,473 104,611 High-Yield Pulp High-Yield Pulp 40,287 36,786 62,428 64,330 Eliminations (6,844) (7,128) (12,451) (13,604) Total net sales $ 399,220 $ 341,019 $ 750,936 $ 659,697 (a) Other sales include sales of electricity, lignin and other by-products to third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 High Purity Cellulose $ 6,489 $ 10,623 $ (1,315) $ 17,051 Paperboard 10,447 2,441 16,286 8,196 High-Yield Pulp (1,365) 1,079 (1,736) 538 Corporate (18,468) (12,766) (31,925) (24,882) Total operating income (loss) $ (2,897) $ 1,377 $ (18,690) $ 903 Identifiable assets by segment were as follows: June 25, 2022 December 31, 2021 High Purity Cellulose $ 1,663,932 $ 1,579,300 Paperboard 118,638 114,391 High-Yield Pulp 48,523 38,147 Corporate and other 551,048 713,186 Total identifiable assets $ 2,382,141 $ 2,445,024 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has no material changes to the purchase obligations presented in Note 21 — Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 1, 2022, that are outside the normal course of business for the six months ended June 25, 2022. The Company’s purchase obligations continue to primarily consist of commitments for the purchase of natural gas, steam energy, wood chips, and electricity contracts entered into within the normal course of business. The Company leases certain buildings, machinery and equipment under various operating leases. See Note 5 — Leases , for additional information. Litigation and Contingencies Duties on Canadian softwood lumber sold to the U.S . The Company previously operated six softwood lumber mills in Ontario and Quebec, Canada and exported softwood lumber into the United States from Canada. In connection with these exports, the Company paid approximately $112 million in softwood lumber duties through August 28, 2021, recorded as expense in the periods incurred. The Company currently has a $22 million long-term receivable associated with the December 2020 and 2021 determinations of the revised rates for the 2017, 2018 and 2019 periods. Cash is not expected to return to the Company until final resolution of the softwood lumber dispute, which remains subject to legal challenges and to USDOC further administrative review processes covering periods after December 31, 2019. As part of the sale of its lumber assets, the Company retained all rights and obligations to softwood lumber duties, generated or incurred through the closing date of the transaction. Other . 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. Guarantees and Other The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of June 25, 2022, the Company had net exposure of $38 million from various standby letters of credit, primarily for financial assurance relating to environmental remediation, credit support for natural gas and electricity purchases, and guarantees related to foreign retirement plan obligations. These standby letters of credit represent a contingent liability. The Company would only be liable upon its default on the related payment obligations. The letters of credit have various expiration dates and will be renewed as required. The Company had surety bonds of $89 million as of June 25, 2022, primarily to comply with financial assurance requirements relating to environmental remediation and post closure care, to provide collateral for the Company’s workers’ compensation program, and to guarantee taxes and duties for products shipped internationally. These surety bonds expire at various dates and are expected to be renewed annually as required. LignoTech Florida (“LTF”) is a venture in which the Company owns 45 percent and its partner Borregaard ASA owns 55 percent. The Company is a guarantor of LTF’s financing agreements and, in the event of default, expects it would only be liable for its proportional share of any repayment under the agreements. The Company’s proportion of the LTF financing agreement guarantee was $32 million at June 25, 2022. The Company has not recorded any liabilities for these financial guarantees in its consolidated balance sheets, either because the Company has recorded the underlying liability associated with the guarantee or the guarantee is dependent on the Company’s own performance and, therefore, is not subject to the measurement requirements or because the Company has calculated the estimated fair value of the guarantee and determined it to be immaterial based upon the current facts and circumstances that would trigger a payment obligation. It is not possible to determine the maximum potential amount of the liability under these potential obligations due to the unique set of facts and circumstances likely to be involved with each provision. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flows Information | 6 Months Ended |
Jun. 25, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows Information | Supplemental Disclosures of Cash Flow Information Supplemental disclosures of cash flows information were comprised of the following for the six months ended: June 25, 2022 June 26, 2021 Interest paid $ 29,430 $ 13,394 Income taxes paid (received) $ 6,331 $ (21,032) Capital assets purchased on account $ 29,518 $ 15,704 |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these consolidated financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the consolidated financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 1, 2022. |
New or Recently Adopted Accounting Pronouncements | New or Recently Adopted Accounting Pronouncements There have been no new or recently adopted accounting pronouncements impacting the Company’s unaudited consolidated interim financial statements. |
Subsequent Events | Subsequent Events Events and transactions subsequent to the consolidated balance sheets date have been evaluated for potential recognition and disclosure through the date of issuance of these Consolidated Financial Statements. |
Fair Value Measurements | The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — Cash and cash equivalents are all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase and the carrying amount is equal to fair market value. The Company had $2 million of money market funds as of June 25, 2022, measured using level 1 inputs. The Company did not have money market funds as of December 31, 2021. 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) | 6 Months Ended |
Jun. 25, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Income from discontinued operations is comprised of the following: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Net sales (a) $ — $ 212,376 $ — $ 358,838 Cost of sales 326 (86,961) 153 (169,688) Gross margin 326 125,415 153 189,150 Selling, general and administrative expenses and other 1,953 (10,428) 1,495 (18,894) Operating income 2,279 114,987 1,648 170,256 Interest expense (b) — (2,703) — (5,317) Other non-operating income (4) 368 (9) 713 Income from discontinued operations before income taxes 2,275 112,652 1,639 165,652 Income tax benefit (expense) (599) 1,279 (434) (62,538) Income from discontinued operations, net of taxes $ 1,676 $ 113,931 $ 1,205 $ 103,114 (a) There were no intercompany sales for the three and six months ended June 25, 2022 and $10 million and $22 million for three months and six months ended June 26, 2021, respectively. (b) The Company allocated interest expense to discontinued operations based on the total portion of debt not attributable to other operations repaid as a result of the transaction. Other discontinued operations information is as follows: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Depreciation and amortization $ — $ — $ — $ 3,173 Capital expenditures $ — $ 2,326 $ — $ 5,814 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The Company’s accounts receivable included the following: June 25, 2022 December 31, 2021 Accounts receivable, trade $ 175,874 $ 131,371 Accounts receivable, other (a) 33,426 51,007 Allowance for expected credit losses (1,299) (774) Total accounts receivable, net $ 208,001 $ 181,604 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company’s inventory included the following: June 25, 2022 December 31, 2021 Finished goods $ 179,383 $ 175,832 Work-in-progress 6,696 6,533 Raw materials 49,767 41,974 Manufacturing and maintenance supplies 6,819 6,352 Total inventory $ 242,665 $ 230,691 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The Company’s operating and finance lease cost is as follows: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Operating Leases Operating lease expense $ 1,917 $ 1,423 $ 3,848 $ 2,838 Finance Leases Amortization of ROU assets 94 87 185 173 Interest 35 42 72 85 Total $ 2,046 $ 1,552 $ 4,105 $ 3,096 |
Balance Sheet Components | The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification June 25, 2022 December 31, 2021 Right-of-use assets Other assets $ 15,904 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 6,013 $ 6,050 Lease liabilities, non-current Other long-term liabilities $ 10,113 $ 12,551 |
Operating Lease Maturity | As of June 25, 2022, operating lease maturities for the remainder of 2022 through 2026 and thereafter are as follows: June 25, 2022 Remainder of 2022 $ 4,100 2023 6,194 2024 2,697 2025 1,746 2026 1,118 Thereafter 5,222 Total minimum lease payments $ 21,077 Less: imputed interest (4,950) Present value of future minimum lease payments $ 16,127 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | The Company’s accrued and other current liabilities included the following: June 25, 2022 December 31, 2021 Accrued customer incentives $ 30,132 $ 26,726 Accrued payroll and benefits 23,902 13,363 Accrued interest 19,449 19,153 Accrued income taxes 7,910 9,210 Accrued property and other taxes 7,644 4,074 Deferred revenue (a) 23,361 22,518 Other current liabilities 35,834 41,080 Total accrued and other current liabilities $ 148,232 $ 136,124 |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s debt and finance leases included the following: June 25, 2022 December 31, 2021 ABL Credit Facility due 2025, $108 million available, bearing interest of approximately 1.63% LIBOR plus 2.25%, interest rate of 3.88% at June 25, 2022 $ — $ — Senior Secured Notes due 2026 at a fixed interest rate of 7.625% 475,000 475,000 Senior Notes due 2024 at a fixed interest rate of 5.5% 349,185 369,185 Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill 60,167 65,451 Other loans (a) 21,150 18,280 Short-term factoring facility-France 5,398 7,118 Finance lease obligation 1,965 2,138 Total debt principal payments due 912,865 937,172 Less: Debt premium, original issue discount and issuance costs, net (7,412) (8,461) Total debt 905,453 928,711 Less: Debt due within one year (34,966) (37,680) Long-term debt $ 870,487 $ 891,031 (a) Loans for energy and bioethanol projects in France. |
Schedule of Maturities of Long-term Debt | As of June 25, 2022, debt payments due during the remainder of 2022, the next four years and thereafter are as follows: Debt Principal Payments Remainder of 2022 $ 30,111 2023 10,527 2024 360,320 2025 11,174 2026 485,563 Thereafter 13,205 Total principal payments $ 910,900 |
Environmental Liabilities (Tabl
Environmental Liabilities (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Liabilities for Disposed Operations | An analysis of liabilities for the six months ended June 25, 2022 is as follows: Balance, December 31, 2021 $ 171,222 Increase in liabilities 1,599 Payments (1,626) Foreign currency adjustments (222) Balance, June 25, 2022 170,973 Less: Current portion (11,291) Long-term environmental liabilities $ 159,682 |
Derivatives Instruments (Tables
Derivatives Instruments (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income for the three and six months ended June 26, 2021, is as follows: Three Months Ended June 26, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Foreign exchange forward contracts $ — $ 2,260 Cost of sales Foreign exchange forward contracts $ — $ (102) Interest income and other, net Six Months Ended June 26, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Foreign exchange forward contracts $ — $ 4,088 Cost of sales Foreign exchange forward contracts $ — $ (202) Interest income and other, net |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives are presented below: June 25, 2022 December 31, 2021 Foreign exchange cash flow hedges $ (690) $ (847) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company, using market information and what management believes to be appropriate valuation methodologies: June 25, 2022 December 31, 2021 Carrying Fair Value (b) Carrying Fair Value (b) Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents Cash $ 145,643 $ 145,643 $ — $ 253,307 $ 253,307 $ — Money market funds 2,105 2,105 — — — — Investment in GreenFirst equity securities — — — 38,510 — 38,510 Liabilities (a): Fixed-rate long-term debt $ 898,091 $ — $ 852,923 $ 919,455 $ — $ 964,308 (a) Liabilities exclude finance lease obligation. (b) The Company did not have Level 3 assets or liabilities at June 25, 2022 or December 31, 2021. |
Fair Value Measurement Inputs and Valuation Techniques | The following were the key inputs at each measurement date: December 31, 2021 At closing of transaction Expected Term 0.16 years 0.5 years Risk-free rate 0.10 % 0.20 % Dividend yield — — Volatility 73.77 % 92.04 % DLOM 6.77 % 14.38 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of AOCI are as follows: Six Months Ended June 25, 2022 June 26, 2021 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (76,849) $ (146,614) Other comprehensive gain (loss) before reclassifications — — Income tax on other comprehensive loss — — Reclassifications to earnings: (a) Pension settlement loss — 111 Amortization of losses 4,976 8,169 Amortization of prior service costs 17 276 Income tax on reclassifications (1,097) (1,892) Net comprehensive gain on employee benefit plans, net of tax 3,896 6,664 Balance, end of period (72,953) (139,950) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (847) 1,834 Reclassifications to earnings: (b) Foreign exchange contracts 181 (3,886) Income tax on reclassifications (24) 1,033 Net comprehensive loss on derivative instruments, net of tax 157 (2,853) Balance, end of period (690) (1,019) Foreign currency translation adjustments: Balance, beginning of year (6,774) 11,145 Foreign currency translation adjustment, net of tax of $0 and $0 (15,864) (6,221) Balance, end of period (22,638) 4,924 Accumulated other comprehensive income (loss), end of period $ (96,281) $ (136,045) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 15— Employee Benefit Plans for additional information. (b) Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 9 — Derivative Instruments |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity (Deficit) | An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Additional Paid in Capital Retained Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value For the six months ended June 25, 2022 Balance, December 31, 2021 63,738,409 $ 637 $ 408,834 $ 489,342 $ (84,470) $ 814,343 Net income (loss) — — — (48,118) — (48,118) Other comprehensive income (loss), net of tax — — — — (11,811) (11,811) Issuance of common stock under incentive stock plans 294,936 3 (3) — — — Stock-based compensation — — 6,728 — — 6,728 Repurchase of common shares (a) (62,179) (1) (302) — — (303) Balance, June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 For the three months ended June 25, 2022 Balance, March 26, 2022 63,849,150 $ 638 $ 410,788 $ 464,491 $ (88,724) $ 787,193 Net income (loss) — — — (23,267) — (23,267) Other comprehensive income (loss), net of tax — — — — (7,557) (7,557) Issuance of common stock under incentive stock plans 122,016 1 (1) — — — Stock-based compensation — — 4,470 — — 4,470 Balance, June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 For the six months ended June 26, 2021 Balance, December 31, 2020 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income (loss) — — — 95,201 — 95,201 Other comprehensive income (loss), net of tax — — — — (2,410) (2,410) Issuance of common stock under incentive stock plans 509,713 5 (5) — — — Stock-based compensation — — 385 — — 385 Repurchase of common shares (a) (132,196) (1) (1,421) — — (1,422) Balance, June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 For the three months ended June 26, 2021 Balance, March 27, 2021 63,597,356 $ 636 $ 403,086 $ 395,901 $ (140,869) $ 658,754 Net income (loss) — — — 122,228 — 122,228 Other comprehensive income (loss), net of tax — — — — 4,824 4,824 Issuance of common stock under incentive stock plans 140,000 1 (1) — — — Stock-based compensation — — 1,038 — — 1,038 Repurchase of common shares (a) — — (3) — — (3) Balance, June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 (a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per share (share and per share amounts not in thousands): Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Income (loss) from continuing operations $ (24,943) $ 8,297 $ (49,323) $ (7,913) Income from discontinued operations 1,676 113,931 1,205 103,114 Net income (loss) available for common stockholders $ (23,267) $ 122,228 $ (48,118) $ 95,201 Shares used for determining basic earnings per share of common stock 63,898,761 63,654,278 63,837,292 63,545,599 Dilutive effect of: Stock options — — — — Performance and restricted stock — 1,159,735 — — Shares used for determining diluted earnings per share of common stock 63,898,761 64,814,013 63,837,292 63,545,599 Basic per share amounts Income (loss) from continuing operations $ (0.39) $ 0.13 $ (0.77) $ (0.12) Income from discontinued operations 0.03 1.79 0.02 1.62 Net income (loss) $ (0.36) $ 1.92 $ (0.75) $ 1.50 Diluted per share amounts Income (loss) from continuing operations $ (0.39) $ 0.13 $ (0.77) $ (0.12) Income from discontinued operations 0.03 1.76 0.02 1.62 Net income (loss) $ (0.36) $ 1.89 $ (0.75) $ 1.50 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Stock options 78,660 122,525 78,660 122,525 Performance and restricted stock 3,372,498 655,540 3,372,498 2,286,865 Total anti-dilutive instruments 3,451,158 778,065 3,451,158 2,409,390 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity for Incentive Stock Awards | The following table summarizes the activity on the Company’s incentive stock awards for the six months ended June 25, 2022: Stock Options Restricted Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2022 111,124 $ 39.47 927,556 $ 8.72 1,459,716 $ 6.51 Granted — — 1,328,931 5.50 1,284,535 8.24 Forfeited — — (161,708) 5.79 (1,159,319) 6.71 Exercised or settled — — (307,213) 11.08 — — Expired or cancelled (32,464) 38.24 — — — — Outstanding at June 25, 2022 78,660 $ 39.94 1,787,566 $ 6.18 1,584,932 $ 7.77 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Postretirement Benefit Costs | The components of net periodic benefit costs from these plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Service cost $ 2,171 $ 2,600 $ 352 $ 363 Interest cost 4,597 4,446 215 176 Expected return on plan assets (8,379) (9,673) — — Amortization of prior service cost 39 177 (30) (38) Amortization of losses 2,473 4,086 15 2 Pension settlement loss 1,179 890 — — Total net periodic benefit cost $ 2,080 $ 2,526 $ 552 $ 503 Pension Postretirement Six Months Ended Six Months Ended Components of Net Periodic Benefit Cost June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 Service cost $ 4,347 $ 5,181 $ 705 $ 725 Interest cost 9,203 8,851 431 351 Expected return on plan assets (16,707) (19,279) — — Amortization of prior service cost 78 352 (61) (76) Amortization of losses 4,946 8,163 30 6 Pension settlement loss 1,179 890 — — Total net periodic benefit cost $ 3,046 $ 4,158 $ 1,105 $ 1,006 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Net sales, disaggregated by product-line, was comprised of the following: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 High Purity Cellulose Cellulose Specialties $ 218,440 $ 167,576 $ 401,994 $ 335,413 Commodity Products 59,758 62,384 130,513 121,317 Other sales (a) 24,343 24,639 50,979 47,630 Total High Purity Cellulose 302,541 254,599 583,486 504,360 Paperboard Paperboard 63,236 56,762 117,473 104,611 High-Yield Pulp High-Yield Pulp 40,287 36,786 62,428 64,330 Eliminations (6,844) (7,128) (12,451) (13,604) Total net sales $ 399,220 $ 341,019 $ 750,936 $ 659,697 (a) Other sales include sales of electricity, lignin and other by-products to third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended Six Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 High Purity Cellulose $ 6,489 $ 10,623 $ (1,315) $ 17,051 Paperboard 10,447 2,441 16,286 8,196 High-Yield Pulp (1,365) 1,079 (1,736) 538 Corporate (18,468) (12,766) (31,925) (24,882) Total operating income (loss) $ (2,897) $ 1,377 $ (18,690) $ 903 Identifiable assets by segment were as follows: June 25, 2022 December 31, 2021 High Purity Cellulose $ 1,663,932 $ 1,579,300 Paperboard 118,638 114,391 High-Yield Pulp 48,523 38,147 Corporate and other 551,048 713,186 Total identifiable assets $ 2,382,141 $ 2,445,024 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flows Information (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flows information were comprised of the following for the six months ended: June 25, 2022 June 26, 2021 Interest paid $ 29,430 $ 13,394 Income taxes paid (received) $ 6,331 $ (21,032) Capital assets purchased on account $ 29,518 $ 15,704 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Lumber and Newsprint Facilities - Discontinued Operations, Disposed of by Sale shares in Millions, $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2021 USD ($) shares | Aug. 28, 2021 CAD ($) shares | Mar. 26, 2022 USD ($) | Jun. 25, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gross purchase price | $ 232 | |||
Equity interests to be received (in shares) | shares | 28.7 | 28.7 | ||
Credit note to be issued, receivable | $ 5 | $ 8 | ||
Net cash outflow from other adjustment settlements | $ 3 | |||
GreenFirst | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale of common shares | $ 43 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) from Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of taxes | $ 1,676,000 | $ 113,931,000 | $ 1,205,000 | $ 103,114,000 |
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 212,376,000 | 0 | 358,838,000 |
Cost of sales | 326,000 | (86,961,000) | 153,000 | (169,688,000) |
Gross margin | 326,000 | 125,415,000 | 153,000 | 189,150,000 |
Selling, general and administrative expenses and other | 1,953,000 | (10,428,000) | 1,495,000 | (18,894,000) |
Operating income | 2,279,000 | 114,987,000 | 1,648,000 | 170,256,000 |
Interest expense | 0 | (2,703,000) | 0 | (5,317,000) |
Other non-operating income | (4,000) | 368,000 | (9,000) | 713,000 |
Income from discontinued operations before income taxes | 2,275,000 | 112,652,000 | 1,639,000 | 165,652,000 |
Income tax benefit (expense) | (599,000) | 1,279,000 | (434,000) | (62,538,000) |
Income from discontinued operations, net of taxes | 1,676,000 | 113,931,000 | 1,205,000 | 103,114,000 |
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | Intersegment Sales | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 0 | $ 10,000,000 | $ 0 | $ 22,000,000 |
Discontinued Operations - Other
Discontinued Operations - Other Discontinued Operations Information (Details) - Discontinued Operations, Disposed of by Sale - Lumber and Newsprint Facilities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation and amortization | $ 0 | $ 0 | $ 0 | $ 3,173 |
Capital expenditures | $ 0 | $ 2,326 | $ 0 | $ 5,814 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for expected credit losses | $ (1,299) | $ (774) |
Total accounts receivable, net | 208,001 | 181,604 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | 175,874 | 131,371 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | $ 33,426 | $ 51,007 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 179,383 | $ 175,832 |
Work-in-progress | 6,696 | 6,533 |
Raw materials | 49,767 | 41,974 |
Manufacturing and maintenance supplies | 6,819 | 6,352 |
Total inventory | $ 242,665 | $ 230,691 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average discount rate | 7.70% | 7.60% | |
Finance lease, weighted average discount rate | 7% | 7% | |
Weighted average remaining lease term, operating leases | 5 years 3 months 18 days | 5 years 3 months 18 days | |
Weighted average remaining lease term, finance leases | 4 years 3 months 18 days | 4 years 10 months 24 days | |
Operating lease payments | $ 2 | $ 3 | |
Assets acquired under finance leases | $ 2 | $ 2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 14 years 4 months 24 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Operating Leases | ||||
Operating lease expense | $ 1,917 | $ 1,423 | $ 3,848 | $ 2,838 |
Finance Leases | ||||
Amortization of ROU assets | 94 | 87 | 185 | 173 |
Interest | 35 | 42 | 72 | 85 |
Total | $ 2,046 | $ 1,552 | $ 4,105 | $ 3,096 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets | $ 15,904 | $ 18,316 |
Lease liabilities, current | 6,013 | 6,050 |
Lease liabilities, non-current | $ 10,113 | $ 12,551 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other current liabilities | Accrued and other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Long-Term Liabilities | Other Long-Term Liabilities |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Jun. 25, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 4,100 |
2023 | 6,194 |
2024 | 2,697 |
2025 | 1,746 |
2026 | 1,118 |
Thereafter | 5,222 |
Total minimum lease payments | 21,077 |
Less: imputed interest | (4,950) |
Present value of future minimum lease payments | $ 16,127 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) $ in Thousands, $ in Millions | Jun. 25, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 USD ($) | Jan. 31, 2021 CAD ($) |
Payables and Accruals [Abstract] | ||||
Accrued customer incentives | $ 30,132 | $ 26,726 | ||
Accrued payroll and benefits | 23,902 | 13,363 | ||
Accrued interest | 19,449 | 19,153 | ||
Accrued income taxes | 7,910 | 9,210 | ||
Accrued property and other taxes | 7,644 | 4,074 | ||
Deferred revenue | 23,361 | 22,518 | ||
Other current liabilities | 35,834 | 41,080 | ||
Total accrued and other current liabilities | $ 148,232 | $ 136,124 | ||
CEWS applied for | $ 20,000 | $ 25 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 25, 2022 | May 13, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Finance lease obligation | $ 1,965 | $ 2,138 | |
Total debt principal payments due | 912,865 | 937,172 | |
Less: Debt premium, original issue discount and issuance costs, net | (7,412) | (8,461) | |
Total debt | 905,453 | 928,711 | |
Less: Debt due within one year | (34,966) | (37,680) | |
Long-term debt | 870,487 | 891,031 | |
Short-term factoring facility-France | Credit Facility | |||
Debt Instrument [Line Items] | |||
Short-term factoring facility-France | 5,398 | 7,118 | |
Credit Facility | ABL Credit Facility due 2025, $108 million available, bearing interest of approximately 1.63% LIBOR plus 2.25%, interest rate of 3.88% at June 25, 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 0 | |
Credit Facility | ABL Credit Facility due 2025, $108 million available, bearing interest of approximately 1.63% LIBOR plus 2.25%, interest rate of 3.88% at June 25, 2022 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity available | $ 108,000 | ||
Credit Facility | ABL Credit Facility due 2025, $108 million available, bearing interest of approximately 1.63% LIBOR plus 2.25%, interest rate of 3.88% at June 25, 2022 | LIBOR | |||
Debt Instrument [Line Items] | |||
Rate floor | 1.63% | ||
Basis spread | 2.25% | ||
Interest rate | 3.88% | ||
Senior Notes | Senior Secured Notes due 2026 at a fixed interest rate of 7.625% | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 7.625% | ||
Long-term debt, gross | $ 475,000 | 475,000 | |
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.5% | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.50% | 5.50% | |
Long-term debt, gross | $ 349,185 | 369,185 | |
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 60,167 | 65,451 | |
Loans | Other loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 21,150 | $ 18,280 | |
Minimum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.50% | ||
Maximum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 6.86% |
Debt and Finance Leases - Narra
Debt and Finance Leases - Narrative (Details) - Senior Notes - Senior Notes due 2024 at a fixed interest rate of 5.5% - USD ($) $ in Millions | May 13, 2022 | Jun. 25, 2022 |
Debt Instrument [Line Items] | ||
Debt instrument, repurchased face amount | $ 20 | |
Fixed interest rate | 5.50% | 5.50% |
Repayments of the Unsecured Notes | $ 20 |
Debt and Finance Leases - Sched
Debt and Finance Leases - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Jun. 25, 2022 USD ($) |
Debt Principal Payments | |
Remainder of 2022 | $ 30,111 |
2023 | 10,527 |
2024 | 360,320 |
2025 | 11,174 |
2026 | 485,563 |
Thereafter | 13,205 |
Total principal payments | $ 910,900 |
Environmental Liabilities - Ana
Environmental Liabilities - Analysis of Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2022 | Dec. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance, December 31, 2021 | $ 171,222 | |
Increase in liabilities | 1,599 | |
Payments | (1,626) | |
Foreign currency adjustments | (222) | |
Balance, June 25, 2022 | 170,973 | |
Less: Current portion | (11,291) | $ (11,303) |
Long-term environmental liabilities | $ 159,682 | $ 159,919 |
Environmental Liabilities - Nar
Environmental Liabilities - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 25, 2022 USD ($) | |
Environmental Remediation Obligations [Abstract] | |
Loss exposure in excess of accrual, high estimate | $ 85 |
Probable costs expected to be incurred, term | 20 years |
Derivatives Instruments - Deriv
Derivatives Instruments - Derivative Instruments Classified as Cash Flow Hedges (Details) - Foreign exchange forward contracts - Derivatives designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 26, 2021 | Jun. 26, 2021 | |
Cost of sales | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | $ 0 | $ 0 |
Gain (Loss) Reclassified from AOCI into Income | 2,260 | 4,088 |
Interest income and other, net | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 0 | 0 |
Gain (Loss) Reclassified from AOCI into Income | $ (102) | $ (202) |
Derivatives Instruments - After
Derivatives Instruments - After-tax Amounts of Unrealized Gain in AOCL Related to Hedge Derivatives (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 31, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges | $ 760,839 | $ 787,193 | $ 814,343 | $ 786,841 | $ 658,754 | $ 695,087 |
Unrealized gain on derivative | ||||||
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges | (690) | (847) | $ (1,019) | $ 1,834 | ||
Cash Flow Hedging | Unrealized gain on derivative | Foreign exchange forward contracts | ||||||
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges | $ (690) | $ (847) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 25, 2022 | Dec. 31, 2021 |
Assets | ||
Investment in GreenFirst equity securities | $ 0 | $ 38,510,000 |
Level 1 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 2,000,000 | 0 |
Carrying Amount | ||
Assets | ||
Investment in GreenFirst equity securities | 0 | 38,510,000 |
Liabilities: | ||
Fixed-rate long-term debt | 898,091,000 | 919,455,000 |
Carrying Amount | Cash | ||
Assets | ||
Cash and cash equivalents | 145,643,000 | 253,307,000 |
Carrying Amount | Money market funds | ||
Assets | ||
Cash and cash equivalents | 2,105,000 | 0 |
Fair Value | Level 1 | ||
Assets | ||
Investment in GreenFirst equity securities | 0 | 0 |
Liabilities: | ||
Fixed-rate long-term debt | 0 | 0 |
Fair Value | Level 1 | Cash | ||
Assets | ||
Cash and cash equivalents | 145,643,000 | 253,307,000 |
Fair Value | Level 1 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 2,105,000 | 0 |
Fair Value | Level 2 | ||
Assets | ||
Investment in GreenFirst equity securities | 0 | 38,510,000 |
Liabilities: | ||
Fixed-rate long-term debt | 852,923,000 | 964,308,000 |
Fair Value | Level 2 | Cash | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | Level 2 | Money market funds | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | May 02, 2022 | Jun. 25, 2022 | Dec. 31, 2021 |
Money market funds | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash and cash equivalents | $ 2,000,000 | $ 0 | |
GreenFirst | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Sale of shares of equity securities (in shares) | 28,684,433 | ||
Proceeds from sale of equity securities | $ 43,000,000 | ||
Purchase price protection clause term (in months) | 18 months |
Fair Value Measurements - Measu
Fair Value Measurements - Measurement Inputs (Details) | Dec. 31, 2021 | Aug. 28, 2021 |
Expected Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input of investment in GreenFirst Shares | 0.16 | 0.5 |
Risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input of investment in GreenFirst Shares | 0.0010 | 0.0020 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input of investment in GreenFirst Shares | 0 | 0 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input of investment in GreenFirst Shares | 0.7377 | 0.9204 |
DLOM | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input of investment in GreenFirst Shares | 0.0677 | 0.1438 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | $ 787,193 | $ 658,754 | $ 814,343 | $ 695,087 |
Total other comprehensive income (loss) | (7,557) | 4,824 | (11,811) | (2,410) |
Balance, end of period | 760,839 | 786,841 | 760,839 | 786,841 |
Tax effects of foreign translation adjustment | 0 | 0 | ||
Unrecognized components of employee benefit plans, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (76,849) | (146,614) | ||
Other comprehensive gain (loss) before reclassifications | 0 | 0 | ||
Income tax on other comprehensive loss | 0 | 0 | ||
Income tax on reclassifications | (1,097) | (1,892) | ||
Total other comprehensive income (loss) | 3,896 | 6,664 | ||
Balance, end of period | (72,953) | (139,950) | (72,953) | (139,950) |
Pension settlement loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 0 | 111 | ||
Amortization of losses | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 4,976 | 8,169 | ||
Amortization of prior service costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 17 | 276 | ||
Unrealized gain (loss) on derivative instruments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (847) | 1,834 | ||
Income tax on reclassifications | (24) | 1,033 | ||
Total other comprehensive income (loss) | 157 | (2,853) | ||
Balance, end of period | (690) | (1,019) | (690) | (1,019) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (6,774) | 11,145 | ||
Total other comprehensive income (loss) | (15,864) | (6,221) | ||
Balance, end of period | (22,638) | 4,924 | (22,638) | 4,924 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (88,724) | (140,869) | (84,470) | (133,635) |
Total other comprehensive income (loss) | (7,557) | 4,824 | (11,811) | (2,410) |
Balance, end of period | $ (96,281) | $ (136,045) | (96,281) | (136,045) |
Foreign exchange forward contracts | Unrealized gain (loss) on derivative instruments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | $ 181 | $ (3,886) |
Stockholders' Equity - Stockhol
Stockholders' Equity - Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of year | $ 787,193 | $ 658,754 | $ 814,343 | $ 695,087 | |
Net income (loss) | (23,267) | 122,228 | (48,118) | 95,201 | |
Other comprehensive income (loss), net of tax | (7,557) | 4,824 | (11,811) | (2,410) | |
Issuance of common stock under incentive stock plans | 0 | 0 | 0 | 0 | |
Stock-based compensation | 4,470 | 1,038 | 6,728 | 385 | |
Repurchase of common shares | [1] | (3) | (303) | (1,422) | |
Balance, end of period | $ 760,839 | $ 786,841 | $ 760,839 | $ 786,841 | |
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 63,849,150 | 63,597,356 | 63,738,409 | 63,359,839 | |
Balance, beginning of year | $ 638 | $ 636 | $ 637 | $ 633 | |
Issuance of common stock under incentive stock plans (in shares) | 122,016 | 140,000 | 294,936 | 509,713 | |
Issuance of common stock under incentive stock plans | $ 1 | $ 1 | $ 3 | $ 5 | |
Repurchase of common shares (in shares) | [1] | 0 | (62,179) | (132,196) | |
Repurchase of common shares | [1] | $ 0 | $ (1) | $ (1) | |
Ending balance (in shares) | 63,971,166 | 63,737,356 | 63,971,166 | 63,737,356 | |
Balance, end of period | $ 639 | $ 637 | $ 639 | $ 637 | |
Additional Paid in Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of year | 410,788 | 403,086 | 408,834 | 405,161 | |
Issuance of common stock under incentive stock plans | (1) | (1) | (3) | (5) | |
Stock-based compensation | 4,470 | 1,038 | 6,728 | 385 | |
Repurchase of common shares | [1] | (3) | (302) | (1,421) | |
Balance, end of period | 415,257 | 404,120 | 415,257 | 404,120 | |
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of year | 464,491 | 395,901 | 489,342 | 422,928 | |
Net income (loss) | (23,267) | 122,228 | (48,118) | 95,201 | |
Balance, end of period | 441,224 | 518,129 | 441,224 | 518,129 | |
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of year | (88,724) | (140,869) | (84,470) | (133,635) | |
Other comprehensive income (loss), net of tax | (7,557) | 4,824 | (11,811) | (2,410) | |
Balance, end of period | $ (96,281) | $ (136,045) | $ (96,281) | $ (136,045) | |
[1](a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Jun. 25, 2022 USD ($) $ / shares | Mar. 21, 2022 shares $ / shares | Dec. 31, 2021 $ / shares | Jan. 29, 2018 USD ($) |
Equity [Abstract] | ||||
Amount authorized under share repurchase program | $ | $ 100,000,000 | |||
Amount available under share repurchase program | $ | $ 60,000,000 | |||
Schedule of Stockholders Equity [Line Items] | ||||
Beneficial ownership threshold | 0.10 | |||
Number of preferred share purchase rights issued per common stock | shares | 1 | |||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred Stock | ||||
Schedule of Stockholders Equity [Line Items] | ||||
Number of shares called by each right (in shares) | shares | 0.01 | |||
Preferred share purchase right, exercise price (in USD per share) | $ / shares | $ 35 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ (24,943) | $ 8,297 | $ (49,323) | $ (7,913) |
Income from discontinued operations | 1,676 | 113,931 | 1,205 | 103,114 |
Net income (loss) available for common stockholders | $ (23,267) | $ 122,228 | $ (48,118) | $ 95,201 |
Shares used for determining basic earnings per share of common stock (in shares) | 63,898,761 | 63,654,278 | 63,837,292 | 63,545,599 |
Dilutive effect of: | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Performance and restricted stock (in shares) | 0 | 1,159,735 | 0 | 0 |
Shares used for determining diluted earnings per share of common stock (in shares) | 63,898,761 | 64,814,013 | 63,837,292 | 63,545,599 |
Basic per share amounts | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.39) | $ 0.13 | $ (0.77) | $ (0.12) |
Income from discontinued operations (in dollars per share) | 0.03 | 1.79 | 0.02 | 1.62 |
Net income (loss) per common share-basic (in dollars per share) | (0.36) | 1.92 | (0.75) | 1.50 |
Diluted per share amounts | ||||
Income (loss) from continuing operations (in dollars per share) | (0.39) | 0.13 | (0.77) | (0.12) |
Income from discontinued operations (in dollars per share) | 0.03 | 1.76 | 0.02 | 1.62 |
Net income (loss) per common share -diluted (in dollars per share) | $ (0.36) | $ 1.89 | $ (0.75) | $ 1.50 |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 3,451,158 | 778,065 | 3,451,158 | 2,409,390 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 78,660 | 122,525 | 78,660 | 122,525 |
Performance and restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 3,372,498 | 655,540 | 3,372,498 | 2,286,865 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (benefit) | $ 4,000 | $ 1,000 | $ 7,000 | $ 385 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Performance-Based Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target payout percentage | 0% | |||
Performance-Based Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target payout percentage | 250% |
Incentive Stock Plans - Schedul
Incentive Stock Plans - Schedule of Outstanding Awards (Details) | 6 Months Ended |
Jun. 25, 2022 $ / shares shares | |
Stock Options | |
Stock Options, Options | |
Beginning Balance (in shares) | shares | 111,124 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Exercised or settled (in shares) | shares | 0 |
Expired or cancelled (in shares) | shares | (32,464) |
Ending Balance (in shares) | shares | 78,660 |
Stock Options, Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 39.47 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Exercised or settled (in dollars per share) | $ / shares | 0 |
Expired or cancelled (in dollars per share) | $ / shares | 38.24 |
Ending balance (in dollars per share) | $ / shares | $ 39.94 |
Restricted Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 927,556 |
Granted (in shares) | shares | 1,328,931 |
Forfeited (in shares) | shares | (161,708) |
Exercised or settled (in shares) | shares | (307,213) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,787,566 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 8.72 |
Granted (in dollars per share) | $ / shares | 5.50 |
Forfeited (in dollars per share) | $ / shares | 5.79 |
Exercised or settled (in dollars per share) | $ / shares | 11.08 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 6.18 |
Performance-Based Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 1,459,716 |
Granted (in shares) | shares | 1,284,535 |
Forfeited (in shares) | shares | (1,159,319) |
Exercised or settled (in shares) | shares | 0 |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,584,932 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 6.51 |
Granted (in dollars per share) | $ / shares | 8.24 |
Forfeited (in dollars per share) | $ / shares | 6.71 |
Exercised or settled (in dollars per share) | $ / shares | 0 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 7.77 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Retirement Benefits [Abstract] | ||||
Pension settlement loss | $ 1 | $ 1 | $ 1 | $ 1 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Defined Benefit Plans Disclosure [Line Items] | ||||
Pension settlement loss | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Pension | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | 2,171 | 2,600 | 4,347 | 5,181 |
Interest cost | 4,597 | 4,446 | 9,203 | 8,851 |
Expected return on plan assets | (8,379) | (9,673) | (16,707) | (19,279) |
Amortization of prior service cost | 39 | 177 | 78 | 352 |
Amortization of losses | 2,473 | 4,086 | 4,946 | 8,163 |
Pension settlement loss | 1,179 | 890 | 1,179 | 890 |
Total net periodic benefit cost | 2,080 | 2,526 | 3,046 | 4,158 |
Postretirement | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | 352 | 363 | 705 | 725 |
Interest cost | 215 | 176 | 431 | 351 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (30) | (38) | (61) | (76) |
Amortization of losses | 15 | 2 | 30 | 6 |
Pension settlement loss | 0 | 0 | 0 | 0 |
Total net periodic benefit cost | $ 552 | $ 503 | $ 1,105 | $ 1,006 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective rate (percentage) | 18% | 153% | 12% | 77% | |
Deferred tax assets | $ 18 | $ 18 | |||
Deferred tax assets, disallowed interest deductions | 7 | 7 | |||
Income tax receivable | $ 21 | $ 21 | |||
Increase in unrecognized tax benefits | $ 1 |
Segment and Geographical Info_3
Segment and Geographical Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 399,220 | $ 341,019 | $ 750,936 | $ 659,697 | |
Operating income (loss) | (2,897) | 1,377 | (18,690) | 903 | |
Total identifiable assets | 2,382,141 | 2,382,141 | $ 2,445,024 | ||
Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 302,541 | 254,599 | 583,486 | 504,360 | |
Operating income (loss) | 6,489 | 10,623 | (1,315) | 17,051 | |
Total identifiable assets | 1,663,932 | 1,663,932 | 1,579,300 | ||
Operating Segments | Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 10,447 | 2,441 | 16,286 | 8,196 | |
Total identifiable assets | 118,638 | 118,638 | 114,391 | ||
Operating Segments | High-Yield Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (1,365) | 1,079 | (1,736) | 538 | |
Total identifiable assets | 48,523 | 48,523 | 38,147 | ||
Operating Segments | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (18,468) | (12,766) | (31,925) | (24,882) | |
Operating Segments | Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Total identifiable assets | 551,048 | 551,048 | $ 713,186 | ||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (6,844) | (7,128) | (12,451) | (13,604) | |
Cellulose Specialties | Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 218,440 | 167,576 | 401,994 | 335,413 | |
Commodity Products | Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 59,758 | 62,384 | 130,513 | 121,317 | |
Other sales | Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 24,343 | 24,639 | 50,979 | 47,630 | |
Paperboard | Operating Segments | Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 63,236 | 56,762 | 117,473 | 104,611 | |
High-Yield Pulp | Operating Segments | High-Yield Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 40,287 | $ 36,786 | $ 62,428 | $ 64,330 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jun. 25, 2022 USD ($) sawmill | Aug. 28, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Guarantor Obligations [Line Items] | |||
Number of lumber mills | sawmill | 6 | ||
Rights to duty refunds | $ 112 | ||
Duties receivable | $ 22 | ||
LignoTech Florida | |||
Guarantor Obligations [Line Items] | |||
Ownership percentage | 45% | ||
Borregaard ASA | LignoTech Florida | |||
Guarantor Obligations [Line Items] | |||
Ownership percentage | 55% | ||
Financial Standby Letter of Credit | |||
Guarantor Obligations [Line Items] | |||
Letters of credit | $ 38 | ||
Surety Bond | |||
Guarantor Obligations [Line Items] | |||
Guarantees | 89 | ||
Contract Guarantee | |||
Guarantor Obligations [Line Items] | |||
Guarantees | $ 32 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flows Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 29,430 | $ 13,394 |
Income taxes paid (received) | 6,331 | (21,032) |
Capital assets purchased on account | $ 29,518 | $ 15,704 |