Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 24, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 24, 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, $0.01 par value | |
Trading Symbol | RYAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,971,166 | |
Entity Central Index Key | 0001597672 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Income Statement [Abstract] | ||||
Net Sales | $ 466,346 | $ 374,014 | $ 1,217,282 | $ 1,033,712 |
Cost of Sales | (419,804) | (354,678) | (1,138,118) | (971,672) |
Gross Margin | 46,542 | 19,336 | 79,164 | 62,040 |
Selling, general and administrative expenses | (19,905) | (17,473) | (68,041) | (51,548) |
Foreign exchange gains | 3,025 | 3,315 | 4,480 | 582 |
Other operating expense, net | (1,133) | (2,352) | (5,764) | (7,345) |
Operating Income | 28,529 | 2,826 | 9,839 | 3,729 |
Interest expense | (16,433) | (17,185) | (49,318) | (49,003) |
Interest income and other, net | 4,071 | 2,113 | 6,241 | 379 |
Other components of pension and OPEB, excluding service costs | 1,009 | 803 | 1,910 | 1,545 |
Gain (loss) on GreenFirst equity securities | 0 | (7,955) | 5,197 | (7,955) |
Gain on debt extinguishment | 46 | 2,326 | 519 | 2,326 |
Income (Loss) from Continuing Operations Before Income Taxes | 17,222 | (17,072) | (25,612) | (48,979) |
Income tax (expense) benefit (Note 16) | 1,824 | 4,101 | (3,230) | 28,665 |
Equity in loss of equity method investment | (691) | (423) | (2,127) | (994) |
Income (Loss) from Continuing Operations | 18,355 | (13,394) | (30,969) | (21,308) |
Income from discontinued operations, net of taxes (Note 2) | 11,252 | 8,636 | 12,458 | 111,751 |
Net Income (Loss) | $ 29,607 | $ (4,758) | $ (18,511) | $ 90,443 |
Basic Earnings Per Common Share (Note 13) | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.29 | $ (0.21) | $ (0.48) | $ (0.33) |
Income from discontinued operations (in dollars per share) | 0.18 | 0.14 | 0.20 | 1.76 |
Net income (loss) per common share-basic (in dollars per share) | 0.47 | (0.07) | (0.28) | 1.43 |
Diluted Earnings Per Common Share | ||||
Income (loss) from continuing operations (in dollars per share) | 0.28 | (0.21) | (0.48) | (0.33) |
Income from discontinued operations (in dollars per share) | 0.17 | 0.14 | 0.20 | 1.76 |
Net income (loss) per common share -diluted (in dollars per share) | $ 0.45 | $ (0.07) | $ (0.28) | $ 1.43 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 29,607 | $ (4,758) | $ (18,511) | $ 90,443 |
Other Comprehensive Income (Loss), net of tax (Note 11): | ||||
Foreign currency translation adjustments | (14,697) | (4,336) | (30,561) | (10,558) |
Unrealized gain (loss) on derivative instruments | 67 | 86 | 224 | (2,767) |
Net gain from pension and postretirement plans | 1,948 | 6,177 | 5,844 | 12,842 |
Total other comprehensive income (loss) | (12,682) | 1,927 | (24,493) | (483) |
Comprehensive Income (Loss) | $ 16,925 | $ (2,831) | $ (43,004) | $ 89,960 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 131,673 | $ 253,307 |
Accounts receivable, net (Note 3) | 217,358 | 181,604 |
Inventory (Note 4) | 269,526 | 230,691 |
Income tax receivable | 1,051 | 21,411 |
Investment in GreenFirst equity securities (Note 10) | 0 | 38,510 |
Prepaid and other current assets | 68,652 | 50,597 |
Total current assets | 688,260 | 776,120 |
Property, Plant and Equipment (net of accumulated depreciation of $1,703,459 and $1,642,442 as of September 24, 2022 and December 31, 2021, respectively) | 1,132,128 | 1,146,162 |
Deferred Tax Assets | 327,807 | 335,119 |
Intangible Assets, net | 26,175 | 31,432 |
Other Assets | 162,051 | 156,191 |
Total Assets | 2,336,421 | 2,445,024 |
Current Liabilities | ||
Accounts payable | 154,140 | 169,456 |
Accrued and other current liabilities (Note 6) | 153,566 | 136,124 |
Debt due within one year (Note 7) | 21,554 | 37,680 |
Current environmental liabilities (Note 8) | 11,273 | 11,303 |
Total current liabilities | 340,533 | 354,563 |
Long-Term Debt (Note 7) | 851,006 | 891,031 |
Long-Term Environmental Liabilities (Note 8) | 159,027 | 159,919 |
Pension and Other Postretirement Benefits | 159,149 | 170,317 |
Deferred Tax Liabilities | 16,782 | 20,485 |
Other Liabilities | 30,201 | 34,366 |
Commitments and Contingencies (Note 18) | ||
Stockholders’ Equity | ||
Common stock: 140,000,000 shares authorized at $0.01 par value, 63,971,166 and 63,738,409 issued and outstanding as of September 24, 2022 and December 31, 2021, respectively | 639 | 637 |
Additional paid-in capital | 417,216 | 408,834 |
Retained earnings | 470,831 | 489,342 |
Accumulated other comprehensive loss (Note 11) | (108,963) | (84,470) |
Total Stockholders’ Equity | 779,723 | 814,343 |
Total Liabilities and Stockholders’ Equity | $ 2,336,421 | $ 2,445,024 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated deprecation | $ 1,703,459 | $ 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) | 63,971,166 | 63,738,409 |
Common stock, shares outstanding (in shares) | 63,971,166 | 63,738,409 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
Operating Activities | ||
Net income (loss) | $ (18,511) | $ 90,443 |
Income from discontinued operations | (12,458) | (111,751) |
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 96,294 | 101,284 |
Stock-based incentive compensation expense | 8,687 | 1,620 |
Deferred income tax expense (benefit) | 372 | (29,569) |
Gain on debt extinguishment | (519) | (2,326) |
(Gain) loss on GreenFirst equity securities | (5,197) | 7,955 |
Net periodic benefit cost of pension and other postretirement plans | 4,489 | 7,338 |
Loss on disposal of property, plant and equipment | 2,917 | 801 |
Unrealized gain on derivative instruments | 0 | (3,787) |
Unrealized gain from foreign currency | (6,853) | (1,304) |
Other | 5,908 | 5,814 |
Changes in operating assets and liabilities: | ||
Receivables | (41,599) | (36,264) |
Inventories | (41,504) | (33,560) |
Accounts payable | (2,393) | (2,903) |
Accrued liabilities | 23,620 | 25,858 |
Other | (338) | 30,263 |
Contributions to pension and other postretirement plans | (5,467) | (5,243) |
Cash Provided by Operating Activities-Continuing Operations | 7,448 | 44,669 |
Cash Provided by Operating Activities-Discontinued Operations | 0 | 162,230 |
Cash Provided by Operating Activities | 7,448 | 206,899 |
Investing Activities | ||
Capital expenditures, net | (114,159) | (61,029) |
Investment in equity method investment | 0 | (4,142) |
Cash Used in Investing Activities-Continuing Operations | (114,159) | (65,171) |
Cash Provided by Investing Activities-Discontinued Operations | 44,428 | 182,690 |
Cash Provided by (Used in) Investing Activities | (69,731) | 117,519 |
Financing Activities | ||
Other borrowings | 5,721 | 0 |
Repayment of long-term debt | (51,128) | (131,171) |
Short-term financing, net | (4,990) | (4,492) |
Common stock repurchased | (303) | (1,422) |
Debt issue costs | 0 | (636) |
Other | (282) | 0 |
Cash Used for Financing Activities | (50,982) | (137,721) |
Change in cash and cash equivalents | (113,265) | 186,697 |
Net effect of foreign exchange on cash and cash equivalents | (8,369) | (1,194) |
Balance, beginning of period | 253,307 | 93,653 |
Balance, end of period | $ 131,673 | $ 279,156 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 9 Months Ended |
Sep. 24, 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 (the “2021 Form 10-K”). 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 further information. Recent Accounting Developments There have been no newly issued or recently adopted accounting pronouncements impacting the Company’s unaudited consolidated interim financial statements. Subsequent Events In October 2022, the Company repaid a Canadian dollar (“CAD”) fixed interest rate term loan in the amount of CAD $12 million (U.S. dollar (“USD”) $9 million). |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 24, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In August 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 cash of $232 million, 28.7 million shares of GreenFirst 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 sold the GreenFirst common shares for $43 million in the second quarter of 2022. 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 operations. See Note 10 — Fair Value Measurements for further information. 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 cash consideration received at closing was preliminary and remains 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 expected and previously disclosed. No adjustments have been made in 2022 to the gain on sale recorded during the year ended December 31, 2021. 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 sale, 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. During the third quarter of 2022, the U.S. Department of Commerce (the “USDOC”) completed its third administrative review of duties applied to Canadian softwood lumber exports to the U.S. during 2020 and reduced rates applicable to the Company to a combined 8.6 percent. In connection with this development, the Company recorded a $16 million gain, pre-tax, in the results of discontinued operations within selling, general and administrative expenses and other, and increased the long-term receivable related to the USDOC administrative reviews to $38 million. See Note 18 — Commitments and Contingencies for further information relating to this dispute. Income from discontinued operations is comprised of the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Net sales (a) $ — $ 83,994 $ — $ 442,833 Cost of sales — (68,224) 155 (237,912) Gross margin — 15,770 155 204,921 Selling, general and administrative expenses and other 15,313 (7,571) 16,808 (26,465) Operating income 15,313 8,199 16,963 178,456 Interest expense (b) (4) (1,973) (13) (7,290) Other non-operating income — 254 — 967 Income from discontinued operations before income taxes 15,309 6,480 16,950 172,133 Income tax expense (4,057) (4,239) (4,492) (66,777) Income from discontinued operations, net of taxes 11,252 2,241 12,458 105,356 Gain on sale of discontinued operations, pre-tax — 9,217 — 9,217 Income tax expense on gain — (2,822) — (2,822) Gain on sale of discontinued operations, net of tax — 6,395 — 6,395 Income from discontinued operations $ 11,252 $ 8,636 $ 12,458 $ 111,751 —————————————— (a) There were no intercompany sales for the three and nine months ended September 24, 2022 and $8 million and $31 million for the three and nine months ended September 25, 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 includes the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Depreciation and amortization $ — $ — $ — $ 3,172 Capital expenditures $ — $ 2,119 $ — $ 7,933 |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 24, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The Company’s accounts receivables included the following: September 24, 2022 December 31, 2021 Accounts receivable, trade $ 180,492 $ 131,371 Accounts receivable, other (a) 38,158 51,007 Allowance for expected credit losses (1,292) (774) Accounts receivable, net $ 217,358 $ 181,604 —————————————— (a) Consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 9 Months Ended |
Sep. 24, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The Company’s inventory included the following: September 24, 2022 December 31, 2021 Finished goods $ 202,576 $ 175,832 Work-in-progress 6,903 6,533 Raw materials 53,527 41,974 Manufacturing and maintenance supplies 6,520 6,352 Inventory $ 269,526 $ 230,691 |
Leases
Leases | 9 Months Ended |
Sep. 24, 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 September 24, 2022, the Company’s leases had remaining lease terms of 1 year to 14.1 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 September 24, 2022 and December 31, 2021 was 8.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of September 24, 2022 and December 31, 2021 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Operating Leases Operating lease expense $ 1,973 $ 1,416 $ 5,821 $ 4,254 Finance Leases Amortization of ROU assets 95 89 281 262 Interest 34 40 106 125 Total $ 2,102 $ 1,545 $ 6,208 $ 4,641 As of September 24, 2022, the weighted average remaining lease term was 5.7 years and 4.1 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term was 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash provided by operating activities includes approximately $2 million and $5 million from operating lease payments made during the nine months ended September 24, 2022 and September 25, 2021, respectively. Finance lease cash flows were immaterial during the nine months ended September 24, 2022 and September 25, 2021. As of both September 24, 2022 and December 31, 2021, assets acquired under finance leases of $2 million are reflected in “property, plant and equipment, net” in the consolidated balance sheets. The Company’s finance leases are included in “long-term debt” and their maturities are disclosed in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheets include the following operating lease assets and liabilities: Balance Sheet Classification September 24, 2022 December 31, 2021 ROU assets Other assets $ 17,068 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 5,024 $ 6,050 Lease liabilities, non-current Other liabilities $ 12,423 $ 12,551 Operating lease maturities as of September 24, 2022 were as follows: Remainder of 2022 $ 1,773 2023 5,880 2024 3,676 2025 2,784 2026 2,106 Thereafter 7,180 Total minimum lease payments 23,399 Less: imputed interest (5,952) Present value of future minimum lease payments $ 17,447 |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of September 24, 2022, the Company’s leases had remaining lease terms of 1 year to 14.1 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 September 24, 2022 and December 31, 2021 was 8.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of September 24, 2022 and December 31, 2021 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Operating Leases Operating lease expense $ 1,973 $ 1,416 $ 5,821 $ 4,254 Finance Leases Amortization of ROU assets 95 89 281 262 Interest 34 40 106 125 Total $ 2,102 $ 1,545 $ 6,208 $ 4,641 As of September 24, 2022, the weighted average remaining lease term was 5.7 years and 4.1 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term was 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash provided by operating activities includes approximately $2 million and $5 million from operating lease payments made during the nine months ended September 24, 2022 and September 25, 2021, respectively. Finance lease cash flows were immaterial during the nine months ended September 24, 2022 and September 25, 2021. As of both September 24, 2022 and December 31, 2021, assets acquired under finance leases of $2 million are reflected in “property, plant and equipment, net” in the consolidated balance sheets. The Company’s finance leases are included in “long-term debt” and their maturities are disclosed in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheets include the following operating lease assets and liabilities: Balance Sheet Classification September 24, 2022 December 31, 2021 ROU assets Other assets $ 17,068 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 5,024 $ 6,050 Lease liabilities, non-current Other liabilities $ 12,423 $ 12,551 Operating lease maturities as of September 24, 2022 were as follows: Remainder of 2022 $ 1,773 2023 5,880 2024 3,676 2025 2,784 2026 2,106 Thereafter 7,180 Total minimum lease payments 23,399 Less: imputed interest (5,952) Present value of future minimum lease payments $ 17,447 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Sep. 24, 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: September 24, 2022 December 31, 2021 Accrued customer incentives $ 29,546 $ 26,726 Accrued payroll and benefits 18,533 13,363 Accrued interest 15,290 19,153 Accrued income taxes 7,639 9,210 Accrued property and other taxes 9,341 4,074 Deferred revenue (a) 20,796 22,518 Other current liabilities 52,421 41,080 Accrued and other current liabilities $ 153,566 $ 136,124 —————————————— (a) Includes CAD $25 million (approximately USD $20 million) associated with funds received in 2021 for the Canada Emergency Wage Subsidy (“CEWS”). All CEWS claims are subject to mandatory audit. The Company will recognize amounts from these claims in income at the time that there is sufficient evidence that it will not be required to repay such amounts. |
Debt and Finance Leases
Debt and Finance Leases | 9 Months Ended |
Sep. 24, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | Debt and Finance Leases The Company’s debt and finance leases included the following: September 24, 2022 December 31, 2021 ABL Credit Facility due 2025: $128 million available, bearing interest of 5.33% (3.08% LIBOR plus 2.25%) at September 24, 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% 334,185 369,185 Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from October 2022 through April 2028, secured by certain assets of the Temiscaming mill 47,218 65,451 Other loans (a) 19,048 18,280 Short-term factoring facility-France 2,127 7,118 Finance lease obligation 1,857 2,138 Total debt principal payments due 879,435 937,172 Less: Debt premium, original issue discount and issuance costs, net (6,875) (8,461) Total debt 872,560 928,711 Less: Debt due within one year (21,554) (37,680) Long-term debt $ 851,006 $ 891,031 —————————————— (a) Consist of loans for energy and bioethanol projects in France . During the third quarter of 2022, the Company repaid a Canadian dollar fixed interest rate term loan in the amount of CAD $12 million (USD $9 million). During the second and third quarters of 2022, the Company repurchased $20 million and $15 million, respectively, of its 5.5% unsecured senior notes due 2024 (the “Unsecured Notes”) through open-market transactions and retired the notes for cash of approximately $20 million and $15 million, respectively. A net gain of less than $1 million on the repurchases was recorded to “gain on debt extinguishment” in the consolidated statements of operations during the nine months ended September 24, 2022. During the three and nine months ended September 25, 2021, the Company recorded a $2 million gain on extinguishment on the repurchase of $127 million of Unsecured Notes. As of September 24, 2022, the Company’s debt principal payments were due as follows: Remainder of 2022 $ 14,515 2023 9,995 2024 344,890 2025 10,594 2026 485,028 Thereafter 12,556 Total debt principal payments, excluding finance lease obligation $ 877,578 |
Environmental Liabilities
Environmental Liabilities | 9 Months Ended |
Sep. 24, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities | Environmental Liabilities The Company’s environmental liabilities balance changed as follows during the nine months ended September 24, 2022: Balance at December 31, 2021 $ 171,222 Increase in liabilities 2,803 Payments (3,071) Foreign currency adjustments (654) Balance at September 24, 2022 170,300 Less: Current portion (11,273) Long-term environmental liabilities $ 159,027 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 September 24, 2022, the Company estimates this exposure could range up to approximately $84 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 | 9 Months Ended |
Sep. 24, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | Derivative InstrumentsThe Company’s earnings and cash flows are subject to fluctuations due to changes in interest rates and foreign currency exchange rates. The Company has used derivative financial instruments to manage interest rate and foreign currency exchange rate exposure: it does not use derivatives for trading or speculative purposes. 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 (loss) 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 USD. 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 CAD, and to a lesser extent, the euro. There were no derivatives designated as hedging instruments during the three and nine months ended September 24, 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 nine months ended September 25, 2021 were as follows: Three Months Ended September 25, 2021 Derivatives Designated as Gain (Loss) Gain (Loss) Reclassified Location on Foreign exchange forward contracts $ — $ (99) Interest income and other, net Nine Months Ended September 25, 2021 Derivatives Designated as Gain (Loss) Gain (Loss) Reclassified Location on Foreign exchange forward contracts $ — $ 4,088 Cost of sales Foreign exchange forward contracts $ — $ (301) Interest income and other, net The unrealized gain (loss) in AOCI related to hedge derivatives is presented below: September 24, 2022 December 31, 2021 Foreign exchange cash flow hedges, net of tax $ (623) $ (847) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 24, 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: September 24, 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 $ 97,771 $ 97,771 $ — $ 253,307 $ 253,307 $ — Money market and similar funds 33,902 33,902 — — — — Investment in GreenFirst equity securities — — — 38,510 — 38,510 Liabilities: (a) Fixed-rate long-term debt $ 868,576 $ — $ 823,481 $ 919,455 $ — $ 964,308 —————————————— (a) Liabilities exclude finance lease obligation. (b) The Company did not have Level 3 assets or liabilities at September 24, 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 $34 million of investments in money market and similar funds as of September 24, 2022, measured using level 1 inputs. The Company did not invest in any such 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 28.7 million shares of GreenFirst common stock 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. In May 2022, the Company sold the 28.7 million common shares for $43 million. 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) | 9 Months Ended |
Sep. 24, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of AOCI include: Nine Months Ended September 24, 2022 September 25, 2021 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (76,849) $ (146,614) Other comprehensive gain (loss) before reclassifications — (236) Income tax on other comprehensive loss — 61 Reclassifications to earnings: (a) Pension settlement loss — 226 Amortization of losses 7,466 12,258 Amortization of prior service costs 24 413 Income tax on reclassifications (1,646) (2,853) Plans included in sale of assets to GreenFirst — 4,012 Income Tax on plans included in sale of assets to GreenFirst — (1,039) Net comprehensive gain on employee benefit plans, net of tax 5,844 12,842 Balance, end of period (71,005) (133,772) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (847) 1,834 Reclassifications to earnings: (b) Foreign exchange contracts 258 (3,787) Income tax on reclassifications (34) 1,020 Net comprehensive gain (loss) on derivative instruments, net of tax 224 (2,767) Balance, end of period (623) (933) Foreign currency translation adjustments: Balance, beginning of year (6,774) 11,145 Foreign currency translation adjustment, net of tax of $0 and $0 (30,561) (10,558) Balance, end of period (37,335) 587 Accumulated other comprehensive loss, end of period $ (108,963) $ (134,118) —————————————— (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 further 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 for further information. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 24, 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 Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value Nine Months Ended September 24, 2022 Balance at December 31, 2021 63,738,409 $ 637 $ 408,834 $ 489,342 $ (84,470) $ 814,343 Net loss — — — (18,511) — (18,511) Other comprehensive loss, net of tax — — — — (24,493) (24,493) Issuance of common stock under incentive stock plans 294,936 3 (3) — — — Stock-based compensation — — 8,687 — — 8,687 Repurchase of common shares (a) (62,179) (1) (302) — — (303) Balance at September 24, 2022 63,971,166 $ 639 $ 417,216 $ 470,831 $ (108,963) $ 779,723 Three Months Ended September 24, 2022 Balance at June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 Net income — — — 29,607 — 29,607 Other comprehensive income (loss), net of tax — — — — (12,682) (12,682) Stock-based compensation — — 1,959 — — 1,959 Balance at September 24, 2022 63,971,166 $ 639 $ 417,216 $ 470,831 $ (108,963) $ 779,723 Nine Months Ended September 25, 2021 Balance at December 31, 2020 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income — — — 90,443 — 90,443 Other comprehensive loss, net of tax — — — — (483) (483) Issuance of common stock under incentive stock plans 509,713 5 (5) — — — Stock-based compensation — — 1,619 — — 1,619 Repurchase of common shares (a) (132,196) (1) (1,421) — — (1,422) Balance at September 25, 2021 63,737,356 $ 637 $ 405,354 $ 513,371 $ (134,118) $ 785,244 Three Months Ended September 25, 2021 Balance at June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 Net loss — — — (4,758) — (4,758) Other comprehensive income, net of tax — — — — 1,927 1,927 Stock-based compensation — — 1,234 — — 1,234 Balance at September 25, 2021 63,737,356 $ 637 $ 405,354 $ 513,371 $ (134,118) $ 785,244 —————————————— (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 In January 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 nine months ended September 24, 2022 and September 25, 2021 the Company did not repurchase any common shares under this buyback program. As of September 24, 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 In March 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’s 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 expire on March 20, 2023 and are exercisable 10 days after the public announcement or public disclosure that a person or group has acquired a beneficial ownership of 10% or more of the outstanding Company Common Stock (including certain derivative positions), subject to certain exceptions. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 24, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table provides details of the calculations of basic and diluted earnings per common share (share and per share amounts not in thousands): Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Income (loss) from continuing operations $ 18,355 $ (13,394) $ (30,969) $ (21,308) Income from discontinued operations 11,252 8,636 12,458 111,751 Net income (loss) available for common stockholders $ 29,607 $ (4,758) $ (18,511) $ 90,443 Shares used for determining basic earnings per share of common stock 63,971,166 63,737,355 63,882,920 63,610,710 Dilutive effect of: Stock options — — — — Performance and restricted stock 1,548,941 — — — Shares used for determining diluted earnings per share of common stock 65,520,107 63,737,355 63,882,920 63,610,710 Basic per share amounts Income (loss) from continuing operations $ 0.29 $ (0.21) $ (0.48) $ (0.33) Income from discontinued operations 0.18 0.14 0.20 1.76 Net income (loss) $ 0.47 $ (0.07) $ (0.28) $ 1.43 Diluted per share amounts Income (loss) from continuing operations $ 0.28 $ (0.21) $ (0.48) $ (0.33) Income from discontinued operations 0.17 0.14 0.20 1.76 Net income (loss) $ 0.45 $ (0.07) $ (0.28) $ 1.43 Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Stock options 78,660 115,973 78,660 115,973 Performance and restricted stock 1,517,135 2,390,153 3,726,090 2,390,153 Total anti-dilutive instruments 1,595,795 2,506,126 3,804,750 2,506,126 |
Incentive Stock Plans
Incentive Stock Plans | 9 Months Ended |
Sep. 24, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Stock Plans | Incentive Stock PlansThe Company’s total stock-based compensation expense for the three months ended September 24, 2022 and September 25, 2021 was $2 million and $1 million, respectively. Stock-based compensation expense for the nine months ended September 24, 2022 and September 25, 2021 was $9 million and $2 million, respectively. The Company made new grants of restricted stock units and performance-based stock units to certain employees during the first nine 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 on an absolute basis and relative to peers. Participants can earn between 0 and 250 percent of the target award. Performance below established thresholds would result in a zero payout. 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. 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. The following table summarizes the Company’s incentive stock award activity during the nine months ended September 24, 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 1,661,452 6.97 Forfeited — — (180,103) 5.83 (1,164,249) 6.70 Exercised or settled — — (307,213) 11.08 — — Expired or cancelled (32,464) 38.24 — — — — Outstanding at September 24, 2022 78,660 $ 39.98 1,769,171 $ 6.18 1,956,919 $ 6.79 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 24, 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 benefit 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 nine months ended September 25, 2021 in “other components of pension and OPEB, excluding service costs” in the consolidated statements of operations. The Company recorded an additional $1 million loss in “other components of pension and OPEB, excluding service costs” during the nine months ended September 24, 2022, related to the final asset surplus distribution to the plans’ participants. The following tables present the components of net periodic benefit costs from these plans: Pension Postretirement Three Months Ended Three Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Service cost $ 2,150 $ 2,619 $ 352 $ 358 Interest cost 4,561 4,287 215 179 Expected return on plan assets (8,258) (9,586) — — Amortization of prior service cost 38 176 (31) (38) Amortization of losses 2,473 4,084 17 5 Pension settlement loss (25) 90 — — Total net periodic benefit cost $ 939 $ 1,670 $ 553 $ 504 Pension Postretirement Nine Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Service cost $ 6,497 $ 7,800 $ 1,057 $ 1,083 Interest cost 13,764 13,138 646 530 Expected return on plan assets (24,965) (28,865) — — Amortization of prior service cost 116 527 (92) (115) Amortization of losses 7,419 12,247 47 11 Pension settlement loss 1,154 980 — — Total net periodic benefit cost $ 3,985 $ 5,828 $ 1,658 $ 1,510 Service cost is included in “cost of sales” and “selling, general and administrative expenses” in the statements of operations, 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 costs” in the consolidated statements of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 24, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The Company’s effective tax rate on its income from continuing operations for the three months ended September 24, 2022 was a benefit of 11 percent. The effective tax rate on its loss from continuing operations for the nine months ended September 24, 2022 was an expense of 13 percent. The Company’s effective tax rates on its loss from continuing operations for the three and nine months ended September 25, 2021 were benefits of 24 percent and 59 percent, respectively. The effective tax benefit rate for the three months ended September 24, 2022 differed from the federal statutory rate of 21 percent primarily due to changes in the valuation allowance on disallowed interest deductions in the U.S. and interest received on overpayments of tax from prior years, partially offset by unfavorable tax return-to-accrual adjustments. The effective tax expense rate for the nine months ended September 24, 2022 differed from the federal statutory rate primarily due to changes in the valuation allowance on disallowed interest deductions in the U.S. and nondeductible executive compensation, partially offset by interest received on overpayments of tax from prior years, U.S. tax credits and favorable tax return-to-accrual adjustments. The effective tax benefit rate for the nine months ended September 25, 2021 differed from the federal statutory rate of 21 percent primarily due to a tax benefit recognized by remeasuring the Company’s Canadian deferred tax assets at a higher Canadian blended statutory tax rate. The Canadian statutory rate is higher as a result of changing the allocation of income between the Canadian provinces after the sale of the Company’s lumber and newsprint assets. Other factors impacting the effective benefit rate were 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. Deferred Taxes The Company’s deferred tax assets include approximately $17 million of disallowed U.S. interest deductions that the Company does not believe it will be able to realize. This asset was reduced by $1 million recognized as tax expense and increased by a net tax benefit of $5 million in the three and nine months ended September 24, 2022, respectively. In December 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. Other In August 2022, the Company received cash of $23 million, including interest of $2 million, related to a U.S. federal tax refund. |
Segment and Geographical Inform
Segment and Geographical Information | 9 Months Ended |
Sep. 24, 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 Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 High Purity Cellulose Cellulose Specialties $ 243,175 $ 186,029 $ 645,169 $ 521,442 Commodity Products 92,638 74,577 223,151 195,894 Other sales (a) 33,080 26,902 84,059 74,532 Total High Purity Cellulose 368,893 287,508 952,379 791,868 Paperboard 65,039 52,188 182,512 156,799 High-Yield Pulp 39,564 41,877 101,992 106,207 Eliminations (7,150) (7,559) (19,601) (21,163) Net sales $ 466,346 $ 374,014 $ 1,217,282 $ 1,033,712 —————————————— (a) Include sales of bioelectricity, lignosulfonates and other products to third parties. Operating income (loss) by segment was comprised of the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 High Purity Cellulose $ 22,536 $ 1,852 $ 21,221 $ 18,903 Paperboard 11,293 1,978 27,579 10,174 High-Yield Pulp 5,646 7,612 3,910 8,150 Corporate (10,946) (8,616) (42,871) (33,498) Operating income (loss) $ 28,529 $ 2,826 $ 9,839 $ 3,729 Identifiable assets by segment were as follows: September 24, 2022 December 31, 2021 High Purity Cellulose $ 1,638,666 $ 1,579,300 Paperboard 114,990 114,391 High-Yield Pulp 49,742 38,147 Corporate and other 533,023 713,186 Total identifiable assets $ 2,336,421 $ 2,445,024 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 24, 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 2021 Form 10-K, that are outside the normal course of business for the nine months ended September 24, 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 further 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. As of September 24, 2022, the Company had a $38 million long-term receivable associated with the USDOC’s December 2020, December 2021 and August 2022 determinations of the revised rates for the 2017, 2018, 2019 and 2020 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 administrative review processes covering periods after December 31, 2020. 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. 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, individually and 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 September 24, 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 $88 million as of September 24, 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 $31 million at September 24, 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. As of September 24, 2022, all of the Company’s collective bargaining agreements covering its unionized employees were current. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flows Information | 9 Months Ended |
Sep. 24, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flows Information | Supplemental Disclosure of Cash Flows Information Supplemental disclosure of cash flows information follows: Nine Months Ended September 24, 2022 September 25, 2021 Interest paid $ 48,384 $ 34,852 Income taxes received (16,484) (27,268) Capital assets purchased on account 16,316 9,609 |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 24, 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 (the “2021 Form 10-K”). 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 further information. |
Recent Accounting Developments | Recent Accounting Developments There have been no newly issued or recently adopted accounting pronouncements impacting the Company’s unaudited consolidated interim financial statements. |
Subsequent Events | Subsequent Events In October 2022, the Company repaid a Canadian dollar (“CAD”) fixed interest rate term loan in the amount of CAD $12 million (U.S. dollar (“USD”) $9 million). |
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 $34 million of investments in money market and similar funds as of September 24, 2022, measured using level 1 inputs. The Company did not invest in any such 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) | 9 Months Ended |
Sep. 24, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Income from discontinued operations is comprised of the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Net sales (a) $ — $ 83,994 $ — $ 442,833 Cost of sales — (68,224) 155 (237,912) Gross margin — 15,770 155 204,921 Selling, general and administrative expenses and other 15,313 (7,571) 16,808 (26,465) Operating income 15,313 8,199 16,963 178,456 Interest expense (b) (4) (1,973) (13) (7,290) Other non-operating income — 254 — 967 Income from discontinued operations before income taxes 15,309 6,480 16,950 172,133 Income tax expense (4,057) (4,239) (4,492) (66,777) Income from discontinued operations, net of taxes 11,252 2,241 12,458 105,356 Gain on sale of discontinued operations, pre-tax — 9,217 — 9,217 Income tax expense on gain — (2,822) — (2,822) Gain on sale of discontinued operations, net of tax — 6,395 — 6,395 Income from discontinued operations $ 11,252 $ 8,636 $ 12,458 $ 111,751 —————————————— (a) There were no intercompany sales for the three and nine months ended September 24, 2022 and $8 million and $31 million for the three and nine months ended September 25, 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 includes the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Depreciation and amortization $ — $ — $ — $ 3,172 Capital expenditures $ — $ 2,119 $ — $ 7,933 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The Company’s accounts receivables included the following: September 24, 2022 December 31, 2021 Accounts receivable, trade $ 180,492 $ 131,371 Accounts receivable, other (a) 38,158 51,007 Allowance for expected credit losses (1,292) (774) Accounts receivable, net $ 217,358 $ 181,604 —————————————— (a) Consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company’s inventory included the following: September 24, 2022 December 31, 2021 Finished goods $ 202,576 $ 175,832 Work-in-progress 6,903 6,533 Raw materials 53,527 41,974 Manufacturing and maintenance supplies 6,520 6,352 Inventory $ 269,526 $ 230,691 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The Company’s operating and finance lease cost is as follows: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Operating Leases Operating lease expense $ 1,973 $ 1,416 $ 5,821 $ 4,254 Finance Leases Amortization of ROU assets 95 89 281 262 Interest 34 40 106 125 Total $ 2,102 $ 1,545 $ 6,208 $ 4,641 |
Balance Sheet Components | The Company’s consolidated balance sheets include the following operating lease assets and liabilities: Balance Sheet Classification September 24, 2022 December 31, 2021 ROU assets Other assets $ 17,068 $ 18,316 Lease liabilities, current Accrued and other current liabilities $ 5,024 $ 6,050 Lease liabilities, non-current Other liabilities $ 12,423 $ 12,551 |
Operating Lease Maturity | Operating lease maturities as of September 24, 2022 were as follows: Remainder of 2022 $ 1,773 2023 5,880 2024 3,676 2025 2,784 2026 2,106 Thereafter 7,180 Total minimum lease payments 23,399 Less: imputed interest (5,952) Present value of future minimum lease payments $ 17,447 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | The Company’s accrued and other current liabilities included the following: September 24, 2022 December 31, 2021 Accrued customer incentives $ 29,546 $ 26,726 Accrued payroll and benefits 18,533 13,363 Accrued interest 15,290 19,153 Accrued income taxes 7,639 9,210 Accrued property and other taxes 9,341 4,074 Deferred revenue (a) 20,796 22,518 Other current liabilities 52,421 41,080 Accrued and other current liabilities $ 153,566 $ 136,124 —————————————— (a) Includes CAD $25 million (approximately USD $20 million) associated with funds received in 2021 for the Canada Emergency Wage Subsidy (“CEWS”). All CEWS claims are subject to mandatory audit. The Company will recognize amounts from these claims in income at the time that there is sufficient evidence that it will not be required to repay such amounts. |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Finance Leases | The Company’s debt and finance leases included the following: September 24, 2022 December 31, 2021 ABL Credit Facility due 2025: $128 million available, bearing interest of 5.33% (3.08% LIBOR plus 2.25%) at September 24, 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% 334,185 369,185 Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from October 2022 through April 2028, secured by certain assets of the Temiscaming mill 47,218 65,451 Other loans (a) 19,048 18,280 Short-term factoring facility-France 2,127 7,118 Finance lease obligation 1,857 2,138 Total debt principal payments due 879,435 937,172 Less: Debt premium, original issue discount and issuance costs, net (6,875) (8,461) Total debt 872,560 928,711 Less: Debt due within one year (21,554) (37,680) Long-term debt $ 851,006 $ 891,031 —————————————— (a) Consist of loans for energy and bioethanol projects in France . |
Schedule of Maturities of Long-term Debt | As of September 24, 2022, the Company’s debt principal payments were due as follows: Remainder of 2022 $ 14,515 2023 9,995 2024 344,890 2025 10,594 2026 485,028 Thereafter 12,556 Total debt principal payments, excluding finance lease obligation $ 877,578 |
Environmental Liabilities (Tabl
Environmental Liabilities (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Loss Contingencies | The Company’s environmental liabilities balance changed as follows during the nine months ended September 24, 2022: Balance at December 31, 2021 $ 171,222 Increase in liabilities 2,803 Payments (3,071) Foreign currency adjustments (654) Balance at September 24, 2022 170,300 Less: Current portion (11,273) Long-term environmental liabilities $ 159,027 |
Derivatives Instruments (Tables
Derivatives Instruments (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Hedging Instruments, Statements of Operations | The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income for the three and nine months ended September 25, 2021 were as follows: Three Months Ended September 25, 2021 Derivatives Designated as Gain (Loss) Gain (Loss) Reclassified Location on Foreign exchange forward contracts $ — $ (99) Interest income and other, net Nine Months Ended September 25, 2021 Derivatives Designated as Gain (Loss) Gain (Loss) Reclassified Location on Foreign exchange forward contracts $ — $ 4,088 Cost of sales Foreign exchange forward contracts $ — $ (301) Interest income and other, net |
Schedule of Unrealized Gain (Loss) in AOCI | The unrealized gain (loss) in AOCI related to hedge derivatives is presented below: September 24, 2022 December 31, 2021 Foreign exchange cash flow hedges, net of tax $ (623) $ (847) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 24, 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: September 24, 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 $ 97,771 $ 97,771 $ — $ 253,307 $ 253,307 $ — Money market and similar funds 33,902 33,902 — — — — Investment in GreenFirst equity securities — — — 38,510 — 38,510 Liabilities: (a) Fixed-rate long-term debt $ 868,576 $ — $ 823,481 $ 919,455 $ — $ 964,308 —————————————— (a) Liabilities exclude finance lease obligation. (b) The Company did not have Level 3 assets or liabilities at September 24, 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) | 9 Months Ended |
Sep. 24, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of AOCI include: Nine Months Ended September 24, 2022 September 25, 2021 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (76,849) $ (146,614) Other comprehensive gain (loss) before reclassifications — (236) Income tax on other comprehensive loss — 61 Reclassifications to earnings: (a) Pension settlement loss — 226 Amortization of losses 7,466 12,258 Amortization of prior service costs 24 413 Income tax on reclassifications (1,646) (2,853) Plans included in sale of assets to GreenFirst — 4,012 Income Tax on plans included in sale of assets to GreenFirst — (1,039) Net comprehensive gain on employee benefit plans, net of tax 5,844 12,842 Balance, end of period (71,005) (133,772) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year (847) 1,834 Reclassifications to earnings: (b) Foreign exchange contracts 258 (3,787) Income tax on reclassifications (34) 1,020 Net comprehensive gain (loss) on derivative instruments, net of tax 224 (2,767) Balance, end of period (623) (933) Foreign currency translation adjustments: Balance, beginning of year (6,774) 11,145 Foreign currency translation adjustment, net of tax of $0 and $0 (30,561) (10,558) Balance, end of period (37,335) 587 Accumulated other comprehensive loss, end of period $ (108,963) $ (134,118) —————————————— (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 further 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 for further information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 24, 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 Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value Nine Months Ended September 24, 2022 Balance at December 31, 2021 63,738,409 $ 637 $ 408,834 $ 489,342 $ (84,470) $ 814,343 Net loss — — — (18,511) — (18,511) Other comprehensive loss, net of tax — — — — (24,493) (24,493) Issuance of common stock under incentive stock plans 294,936 3 (3) — — — Stock-based compensation — — 8,687 — — 8,687 Repurchase of common shares (a) (62,179) (1) (302) — — (303) Balance at September 24, 2022 63,971,166 $ 639 $ 417,216 $ 470,831 $ (108,963) $ 779,723 Three Months Ended September 24, 2022 Balance at June 25, 2022 63,971,166 $ 639 $ 415,257 $ 441,224 $ (96,281) $ 760,839 Net income — — — 29,607 — 29,607 Other comprehensive income (loss), net of tax — — — — (12,682) (12,682) Stock-based compensation — — 1,959 — — 1,959 Balance at September 24, 2022 63,971,166 $ 639 $ 417,216 $ 470,831 $ (108,963) $ 779,723 Nine Months Ended September 25, 2021 Balance at December 31, 2020 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income — — — 90,443 — 90,443 Other comprehensive loss, net of tax — — — — (483) (483) Issuance of common stock under incentive stock plans 509,713 5 (5) — — — Stock-based compensation — — 1,619 — — 1,619 Repurchase of common shares (a) (132,196) (1) (1,421) — — (1,422) Balance at September 25, 2021 63,737,356 $ 637 $ 405,354 $ 513,371 $ (134,118) $ 785,244 Three Months Ended September 25, 2021 Balance at June 26, 2021 63,737,356 $ 637 $ 404,120 $ 518,129 $ (136,045) $ 786,841 Net loss — — — (4,758) — (4,758) Other comprehensive income, net of tax — — — — 1,927 1,927 Stock-based compensation — — 1,234 — — 1,234 Balance at September 25, 2021 63,737,356 $ 637 $ 405,354 $ 513,371 $ (134,118) $ 785,244 —————————————— (a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 24, 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 common share (share and per share amounts not in thousands): Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Income (loss) from continuing operations $ 18,355 $ (13,394) $ (30,969) $ (21,308) Income from discontinued operations 11,252 8,636 12,458 111,751 Net income (loss) available for common stockholders $ 29,607 $ (4,758) $ (18,511) $ 90,443 Shares used for determining basic earnings per share of common stock 63,971,166 63,737,355 63,882,920 63,610,710 Dilutive effect of: Stock options — — — — Performance and restricted stock 1,548,941 — — — Shares used for determining diluted earnings per share of common stock 65,520,107 63,737,355 63,882,920 63,610,710 Basic per share amounts Income (loss) from continuing operations $ 0.29 $ (0.21) $ (0.48) $ (0.33) Income from discontinued operations 0.18 0.14 0.20 1.76 Net income (loss) $ 0.47 $ (0.07) $ (0.28) $ 1.43 Diluted per share amounts Income (loss) from continuing operations $ 0.28 $ (0.21) $ (0.48) $ (0.33) Income from discontinued operations 0.17 0.14 0.20 1.76 Net income (loss) $ 0.45 $ (0.07) $ (0.28) $ 1.43 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Stock options 78,660 115,973 78,660 115,973 Performance and restricted stock 1,517,135 2,390,153 3,726,090 2,390,153 Total anti-dilutive instruments 1,595,795 2,506,126 3,804,750 2,506,126 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity for Incentive Stock Awards | The following table summarizes the Company’s incentive stock award activity during the nine months ended September 24, 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 1,661,452 6.97 Forfeited — — (180,103) 5.83 (1,164,249) 6.70 Exercised or settled — — (307,213) 11.08 — — Expired or cancelled (32,464) 38.24 — — — — Outstanding at September 24, 2022 78,660 $ 39.98 1,769,171 $ 6.18 1,956,919 $ 6.79 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Postretirement Benefit Costs | The following tables present the components of net periodic benefit costs from these plans: Pension Postretirement Three Months Ended Three Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Service cost $ 2,150 $ 2,619 $ 352 $ 358 Interest cost 4,561 4,287 215 179 Expected return on plan assets (8,258) (9,586) — — Amortization of prior service cost 38 176 (31) (38) Amortization of losses 2,473 4,084 17 5 Pension settlement loss (25) 90 — — Total net periodic benefit cost $ 939 $ 1,670 $ 553 $ 504 Pension Postretirement Nine Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 Service cost $ 6,497 $ 7,800 $ 1,057 $ 1,083 Interest cost 13,764 13,138 646 530 Expected return on plan assets (24,965) (28,865) — — Amortization of prior service cost 116 527 (92) (115) Amortization of losses 7,419 12,247 47 11 Pension settlement loss 1,154 980 — — Total net periodic benefit cost $ 3,985 $ 5,828 $ 1,658 $ 1,510 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Net Sales by Product Line | Net sales, disaggregated by product line, was comprised of the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 High Purity Cellulose Cellulose Specialties $ 243,175 $ 186,029 $ 645,169 $ 521,442 Commodity Products 92,638 74,577 223,151 195,894 Other sales (a) 33,080 26,902 84,059 74,532 Total High Purity Cellulose 368,893 287,508 952,379 791,868 Paperboard 65,039 52,188 182,512 156,799 High-Yield Pulp 39,564 41,877 101,992 106,207 Eliminations (7,150) (7,559) (19,601) (21,163) Net sales $ 466,346 $ 374,014 $ 1,217,282 $ 1,033,712 —————————————— (a) Include sales of bioelectricity, lignosulfonates and other products to third parties. |
Reconciliation of Operating Income (Loss) | Operating income (loss) by segment was comprised of the following: Three Months Ended Nine Months Ended September 24, 2022 September 25, 2021 September 24, 2022 September 25, 2021 High Purity Cellulose $ 22,536 $ 1,852 $ 21,221 $ 18,903 Paperboard 11,293 1,978 27,579 10,174 High-Yield Pulp 5,646 7,612 3,910 8,150 Corporate (10,946) (8,616) (42,871) (33,498) Operating income (loss) $ 28,529 $ 2,826 $ 9,839 $ 3,729 |
Reconciliation of Identifiable Assets | Identifiable assets by segment were as follows: September 24, 2022 December 31, 2021 High Purity Cellulose $ 1,638,666 $ 1,579,300 Paperboard 114,990 114,391 High-Yield Pulp 49,742 38,147 Corporate and other 533,023 713,186 Total identifiable assets $ 2,336,421 $ 2,445,024 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flows Information (Tables) | 9 Months Ended |
Sep. 24, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosure of cash flows information follows: Nine Months Ended September 24, 2022 September 25, 2021 Interest paid $ 48,384 $ 34,852 Income taxes received (16,484) (27,268) Capital assets purchased on account 16,316 9,609 |
Basis of Presentation and New_3
Basis of Presentation and New Accounting Pronouncements (Details) - Fixed Rate Term Loan - Loans $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2022 CAD ($) | Oct. 31, 2022 USD ($) | Sep. 24, 2022 CAD ($) | Sep. 24, 2022 USD ($) | |
Subsequent Event [Line Items] | ||||
Debt repaid | $ 12 | $ 9 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Debt repaid | $ 12 | $ 9 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) shares in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | Aug. 31, 2021 USD ($) shares | Aug. 31, 2021 CAD ($) shares | Sep. 24, 2022 USD ($) | Mar. 26, 2022 USD ($) | Sep. 24, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Duties receivable | $ 38 | $ 38 | ||||
Lumber and Newsprint Facilities | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gross consideration received | $ 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 | |||||
Gain after true up of sale related items | $ 16 | |||||
Lumber and Newsprint Facilities | Discontinued Operations, Disposed of by Sale | GreenFirst | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of common shares | $ 43 | |||||
Purchase price protection clause term | 18 months |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) from Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 11,252,000 | $ 8,636,000 | $ 12,458,000 | $ 111,751,000 |
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 | 83,994,000 | 0 | 442,833,000 |
Cost of sales | 0 | (68,224,000) | 155,000 | (237,912,000) |
Gross margin | 0 | 15,770,000 | 155,000 | 204,921,000 |
Selling, general and administrative expenses and other | 15,313,000 | (7,571,000) | 16,808,000 | (26,465,000) |
Operating income | 15,313,000 | 8,199,000 | 16,963,000 | 178,456,000 |
Interest expense | (4,000) | (1,973,000) | (13,000) | (7,290,000) |
Other non-operating income | 0 | 254,000 | 0 | 967,000 |
Income from discontinued operations before income taxes | 15,309,000 | 6,480,000 | 16,950,000 | 172,133,000 |
Income tax expense | (4,057,000) | (4,239,000) | (4,492,000) | (66,777,000) |
Income from discontinued operations, net of taxes | 11,252,000 | 2,241,000 | 12,458,000 | 105,356,000 |
Gain on sale of discontinued operations, pre-tax | 0 | 9,217,000 | 0 | 9,217,000 |
Income tax expense on gain | 0 | (2,822,000) | 0 | (2,822,000) |
Gain on sale of discontinued operations, net of tax | 0 | 6,395,000 | 0 | 6,395,000 |
Income from discontinued operations | 11,252,000 | 8,636,000 | 12,458,000 | 111,751,000 |
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | Intercompany Eliminations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 0 | $ 8,000,000 | $ 0 | $ 31,000,000 |
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 | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation and amortization | $ 0 | $ 0 | $ 0 | $ 3,172 |
Capital expenditures | $ 0 | $ 2,119 | $ 0 | $ 7,933 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for expected credit losses | $ (1,292) | $ (774) |
Accounts receivable, net | 217,358 | 181,604 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 180,492 | 131,371 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 38,158 | $ 51,007 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 202,576 | $ 175,832 |
Work-in-progress | 6,903 | 6,533 |
Raw materials | 53,527 | 41,974 |
Manufacturing and maintenance supplies | 6,520 | 6,352 |
Inventory | $ 269,526 | $ 230,691 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average discount rate | 8.70% | 7.60% | |
Finance lease, weighted average discount rate | 7% | 7% | |
Weighted average remaining lease term, operating leases | 5 years 8 months 12 days | 5 years 3 months 18 days | |
Weighted average remaining lease term, finance leases | 4 years 1 month 6 days | 4 years 10 months 24 days | |
Operating lease payments | $ 2 | $ 5 | |
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 1 month 6 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Operating Leases | ||||
Operating lease expense | $ 1,973 | $ 1,416 | $ 5,821 | $ 4,254 |
Finance Leases | ||||
Amortization of ROU assets | 95 | 89 | 281 | 262 |
Interest | 34 | 40 | 106 | 125 |
Total | $ 2,102 | $ 1,545 | $ 6,208 | $ 4,641 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
ROU assets | $ 17,068 | $ 18,316 |
Lease liabilities, current | 5,024 | 6,050 |
Lease liabilities, non-current | $ 12,423 | $ 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 (Note 6) | Accrued and other current liabilities (Note 6) |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Thousands | Sep. 24, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 1,773 |
2023 | 5,880 |
2024 | 3,676 |
2025 | 2,784 |
2026 | 2,106 |
Thereafter | 7,180 |
Total minimum lease payments | 23,399 |
Less: imputed interest | (5,952) |
Present value of future minimum lease payments | $ 17,447 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) $ in Thousands, $ in Millions | Sep. 24, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 USD ($) | Jan. 31, 2021 CAD ($) |
Payables and Accruals [Abstract] | ||||
Accrued customer incentives | $ 29,546 | $ 26,726 | ||
Accrued payroll and benefits | 18,533 | 13,363 | ||
Accrued interest | 15,290 | 19,153 | ||
Accrued income taxes | 7,639 | 9,210 | ||
Accrued property and other taxes | 9,341 | 4,074 | ||
Deferred revenue | 20,796 | 22,518 | ||
Other current liabilities | 52,421 | 41,080 | ||
Accrued and other current liabilities | $ 153,566 | $ 136,124 | ||
CEWS applied for | $ 20,000 | $ 25 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt and Finance Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 24, 2022 | Jun. 25, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Finance lease obligation | $ 1,857 | $ 2,138 | |
Total debt principal payments due | 879,435 | 937,172 | |
Less: Debt premium, original issue discount and issuance costs, net | (6,875) | (8,461) | |
Total debt | 872,560 | 928,711 | |
Less: Debt due within one year | (21,554) | (37,680) | |
Long-term debt | 851,006 | 891,031 | |
Short-term factoring facility-France | Credit Facility | |||
Debt Instrument [Line Items] | |||
Short-term factoring facility-France | 2,127 | 7,118 | |
Revolving Credit Facility | ABL Credit Facility due 2025: $128 million available, bearing interest of 5.33% (3.08% LIBOR plus 2.25%) at September 24, 2022 | |||
Debt Instrument [Line Items] | |||
Borrowing capacity available | $ 128,000 | ||
Interest rate during period | 5.33% | ||
Long-term debt, gross | $ 0 | 0 | |
Revolving Credit Facility | ABL Credit Facility due 2025: $128 million available, bearing interest of 5.33% (3.08% LIBOR plus 2.25%) at September 24, 2022 | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.08% | ||
Variable rate, basis spread | 2.25% | ||
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 | $ 334,185 | 369,185 | |
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from October 2022 through April 2028, secured by certain assets of the Temiscaming mill | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 47,218 | 65,451 | |
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from October 2022 through April 2028, secured by certain assets of the Temiscaming mill | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.50% | ||
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.50% to 6.86% and maturity dates ranging from October 2022 through April 2028, secured by certain assets of the Temiscaming mill | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 6.86% | ||
Loans | Other loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 19,048 | $ 18,280 |
Debt and Finance Leases - Narra
Debt and Finance Leases - Narrative (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 24, 2022 USD ($) | Sep. 24, 2022 CAD ($) | Jun. 25, 2022 USD ($) | Sep. 25, 2021 USD ($) | Sep. 24, 2022 USD ($) | Sep. 25, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Gain on debt extinguishment | $ 46 | $ 2,326 | $ 519 | $ 2,326 | ||
Loans | Fixed Rate Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt repaid | 9,000 | $ 12 | ||||
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.5% | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchased face amount | $ 15,000 | $ 20,000 | $ 15,000 | |||
Fixed interest rate | 5.50% | 5.50% | 5.50% | |||
Repayments of the Unsecured Notes | $ 15,000 | $ 20,000 | 127,000 | 127,000 | ||
Gain on debt extinguishment | $ 2,000 | $ 1,000 | $ 2,000 |
Debt and Finance Leases - Sched
Debt and Finance Leases - Schedule of Debt Principal Payments (Details) $ in Thousands | Sep. 24, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 14,515 |
2023 | 9,995 |
2024 | 344,890 |
2025 | 10,594 |
2026 | 485,028 |
Thereafter | 12,556 |
Total debt principal payments, excluding finance lease obligation | $ 877,578 |
Environmental Liabilities (Deta
Environmental Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2022 | Dec. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Environmental Liabilities, Beginning Balance | $ 171,222 | |
Increase in liabilities | 2,803 | |
Payments | (3,071) | |
Foreign currency adjustments | (654) | |
Environmental Liabilities, Ending Balance | 170,300 | |
Less: Current portion | (11,273) | $ (11,303) |
Long-term environmental liabilities | 159,027 | $ 159,919 |
Loss exposure in excess of accrual, high estimate | $ 84,000 | |
Probable costs expected to be incurred, term | 20 years |
Derivatives Instruments - Cash
Derivatives Instruments - Cash Flow Hedges (Details) - Derivatives designated as hedging instruments $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 25, 2021 USD ($) | Sep. 25, 2021 USD ($) | Sep. 24, 2022 derivative_instrument | |
Derivative [Line Items] | |||
Derivative instruments, number held | derivative_instrument | 0 | ||
Foreign exchange forward contracts | Interest income and other, net | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ 0 | $ 0 | |
Gain (Loss) Reclassified from AOCI into Income | $ (99) | (301) | |
Foreign exchange forward contracts | Cost of sales | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | 0 | ||
Gain (Loss) Reclassified from AOCI into Income | $ 4,088 |
Derivatives Instruments - Unrea
Derivatives Instruments - Unrealized Gain in AOCI (Details) - USD ($) $ in Thousands | Sep. 24, 2022 | Jun. 25, 2022 | Dec. 31, 2021 | Sep. 25, 2021 | Jun. 26, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges, net of tax | $ 779,723 | $ 760,839 | $ 814,343 | $ 785,244 | $ 786,841 | $ 695,087 |
Unrealized gain on derivative | ||||||
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges, net of tax | (623) | (847) | $ (933) | $ 1,834 | ||
Cash Flow Hedging | Unrealized gain on derivative | Foreign exchange forward contracts | ||||||
Derivative [Line Items] | ||||||
Foreign exchange cash flow hedges, net of tax | $ (623) | $ (847) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) | Sep. 24, 2022 | Dec. 31, 2021 |
Assets | ||
Investment in GreenFirst equity securities | $ 0 | $ 38,510,000 |
Level 1 | Money market and similar funds | ||
Assets | ||
Cash and cash equivalents | 34,000,000 | 0 |
Carrying Amount | ||
Assets | ||
Investment in GreenFirst equity securities | 0 | 38,510,000 |
Liabilities: | ||
Fixed-rate long-term debt | 868,576,000 | 919,455,000 |
Carrying Amount | Cash | ||
Assets | ||
Cash and cash equivalents | 97,771,000 | 253,307,000 |
Carrying Amount | Money market and similar funds | ||
Assets | ||
Cash and cash equivalents | 33,902,000 | 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 | 97,771,000 | 253,307,000 |
Fair Value | Level 1 | Money market and similar funds | ||
Assets | ||
Cash and cash equivalents | 33,902,000 | 0 |
Fair Value | Level 2 | ||
Assets | ||
Investment in GreenFirst equity securities | 0 | 38,510,000 |
Liabilities: | ||
Fixed-rate long-term debt | 823,481,000 | 964,308,000 |
Fair Value | Level 2 | Cash | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | Level 2 | Money market and similar funds | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) shares in Millions | 1 Months Ended | |||
May 31, 2022 | Aug. 31, 2021 | Sep. 24, 2022 | Dec. 31, 2021 | |
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity interests to be received (in shares) | 28.7 | |||
Equity interests received, required holding period | 6 months | |||
GreenFirst | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Sale of shares of equity securities (in shares) | 28.7 | |||
Proceeds from sale of equity securities | $ 43,000,000 | |||
Money market and similar funds | Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | $ 34,000,000 | $ 0 |
Fair Value Measurements - Measu
Fair Value Measurements - Measurement Inputs (Details) - GreenFirst | Dec. 31, 2021 yr | Aug. 28, 2021 yr |
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 | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | $ 760,839 | $ 786,841 | $ 814,343 | $ 695,087 |
Total other comprehensive income (loss) | (12,682) | 1,927 | (24,493) | (483) |
Balance, end of period | 779,723 | 785,244 | 779,723 | 785,244 |
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 | (236) | ||
Income tax on other comprehensive loss | 0 | 61 | ||
Total other comprehensive income (loss) | 5,844 | 12,842 | ||
Balance, end of period | (71,005) | (133,772) | (71,005) | (133,772) |
Pension settlement loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 0 | 226 | ||
Amortization of losses | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 7,466 | 12,258 | ||
Amortization of prior service costs | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 24 | 413 | ||
Reclassifications adjustment, before GreenFirst impacts | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Income tax on reclassifications | (1,646) | (2,853) | ||
Plans included in sale of assets to GreenFirst | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 0 | 4,012 | ||
Income tax on reclassifications | 0 | (1,039) | ||
Unrealized gain (loss) on derivative instruments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (847) | 1,834 | ||
Reclassifications to earnings | 258 | (3,787) | ||
Income tax on reclassifications | (34) | 1,020 | ||
Total other comprehensive income (loss) | 224 | (2,767) | ||
Balance, end of period | (623) | (933) | (623) | (933) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (6,774) | 11,145 | ||
Total other comprehensive income (loss) | (30,561) | (10,558) | ||
Balance, end of period | (37,335) | 587 | (37,335) | 587 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance, beginning of year | (96,281) | (136,045) | (84,470) | (133,635) |
Total other comprehensive income (loss) | (12,682) | 1,927 | (24,493) | (483) |
Balance, end of period | $ (108,963) | $ (134,118) | $ (108,963) | $ (134,118) |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 63,738,409 | |||
Balance, beginning of year | $ 760,839 | $ 786,841 | $ 814,343 | $ 695,087 |
Net (loss) income | 29,607 | (4,758) | (18,511) | 90,443 |
Other comprehensive loss, net of tax | (12,682) | 1,927 | (24,493) | (483) |
Issuance of common stock under incentive stock plans | 0 | 0 | ||
Stock-based compensation | $ 1,959 | 1,234 | 8,687 | 1,619 |
Repurchase of common shares | $ (303) | (1,422) | ||
Ending balance (in shares) | 63,971,166 | 63,971,166 | ||
Balance, end of period | $ 779,723 | $ 785,244 | $ 779,723 | $ 785,244 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 63,971,166 | 63,737,356 | 63,738,409 | 63,359,839 |
Balance, beginning of year | $ 639 | $ 637 | $ 637 | $ 633 |
Issuance of common stock under incentive stock plans (in shares) | 294,936 | 509,713 | ||
Issuance of common stock under incentive stock plans | $ 3 | $ 5 | ||
Repurchase of common shares (in shares) | (62,179) | (132,196) | ||
Repurchase of common shares | $ (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 | 415,257 | 404,120 | 408,834 | 405,161 |
Issuance of common stock under incentive stock plans | (3) | (5) | ||
Stock-based compensation | 1,959 | 1,234 | 8,687 | 1,619 |
Repurchase of common shares | (302) | (1,421) | ||
Balance, end of period | 417,216 | 405,354 | 417,216 | 405,354 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of year | 441,224 | 518,129 | 489,342 | 422,928 |
Net (loss) income | 29,607 | (4,758) | (18,511) | 90,443 |
Balance, end of period | 470,831 | 513,371 | 470,831 | 513,371 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of year | (96,281) | (136,045) | (84,470) | (133,635) |
Other comprehensive loss, net of tax | (12,682) | 1,927 | (24,493) | (483) |
Balance, end of period | $ (108,963) | $ (134,118) | $ (108,963) | $ (134,118) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Sep. 24, 2022 USD ($) $ / shares | Mar. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares | Jan. 31, 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 | 1 | |||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Exercise period after beneficial ownership event | 10 days | |||
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 Common Share - Sch
Earnings Per Common Share - Schedule of Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ 18,355 | $ (13,394) | $ (30,969) | $ (21,308) |
Income from discontinued operations | 11,252 | 8,636 | 12,458 | 111,751 |
Net income (loss) available for common stockholders | 29,607 | (4,758) | (18,511) | 90,443 |
Net income (loss) available for common stockholders | $ 29,607 | $ (4,758) | $ (18,511) | $ 90,443 |
Shares used for determining basic earnings per share of common stock (in shares) | 63,971,166 | 63,737,355 | 63,882,920 | 63,610,710 |
Dilutive effect of: | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Performance and restricted stock (in shares) | 1,548,941 | 0 | 0 | 0 |
Shares used for determining diluted earnings per share of common stock (in shares) | 65,520,107 | 63,737,355 | 63,882,920 | 63,610,710 |
Basic per share amounts | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.29 | $ (0.21) | $ (0.48) | $ (0.33) |
Income from discontinued operations (in dollars per share) | 0.18 | 0.14 | 0.20 | 1.76 |
Net income (loss) per common share-basic (in dollars per share) | 0.47 | (0.07) | (0.28) | 1.43 |
Diluted per share amounts | ||||
Income (loss) from continuing operations (in dollars per share) | 0.28 | (0.21) | (0.48) | (0.33) |
Income from discontinued operations (in dollars per share) | 0.17 | 0.14 | 0.20 | 1.76 |
Net income (loss) per common share -diluted (in dollars per share) | $ 0.45 | $ (0.07) | $ (0.28) | $ 1.43 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 1,595,795 | 2,506,126 | 3,804,750 | 2,506,126 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 78,660 | 115,973 | 78,660 | 115,973 |
Performance and restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive instruments (in shares) | 1,517,135 | 2,390,153 | 3,726,090 | 2,390,153 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (benefit) | $ 2 | $ 1 | $ 9 | $ 2 |
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 Activity (Details) | 9 Months Ended |
Sep. 24, 2022 $ / shares shares | |
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 | $ 39.98 |
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 | (180,103) |
Exercised or settled (in shares) | shares | (307,213) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,769,171 |
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 | 5.83 |
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 | 1,661,452 |
Forfeited (in shares) | shares | (1,164,249) |
Exercised or settled (in shares) | shares | 0 |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,956,919 |
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 | 6.97 |
Forfeited (in dollars per share) | $ / shares | 6.70 |
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 | $ 6.79 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Pension settlement loss | $ 1 | $ 1 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Defined Benefit Plans Disclosure [Line Items] | ||||
Pension settlement loss | $ 1,000 | $ 1,000 | ||
Pension | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | $ 2,150 | $ 2,619 | 6,497 | 7,800 |
Interest cost | 4,561 | 4,287 | 13,764 | 13,138 |
Expected return on plan assets | (8,258) | (9,586) | (24,965) | (28,865) |
Amortization of prior service cost | 38 | 176 | 116 | 527 |
Amortization of losses | 2,473 | 4,084 | 7,419 | 12,247 |
Pension settlement loss | (25) | 90 | 1,154 | 980 |
Total net periodic benefit cost | 939 | 1,670 | 3,985 | 5,828 |
Postretirement | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | 352 | 358 | 1,057 | 1,083 |
Interest cost | 215 | 179 | 646 | 530 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (31) | (38) | (92) | (115) |
Amortization of losses | 17 | 5 | 47 | 11 |
Pension settlement loss | 0 | 0 | 0 | 0 |
Total net periodic benefit cost | $ 553 | $ 504 | $ 1,658 | $ 1,510 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | (11.00%) | (24.00%) | 13% | (59.00%) | |
Deferred tax assets | $ 17 | $ 17 | |||
Deferred tax assets, disallowed interest deductions expense (benefit) | $ 1 | (5) | |||
Proceeds from income tax refunds | $ 23 | ||||
Increase in unrecognized tax benefits | $ 1 | ||||
Refund interest revenue | $ 2 |
Segment and Geographical Info_3
Segment and Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 24, 2022 | Sep. 25, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 466,346 | $ 374,014 | $ 1,217,282 | $ 1,033,712 | |
Operating income (loss) | 28,529 | 2,826 | 9,839 | 3,729 | |
Total identifiable assets | 2,336,421 | 2,336,421 | $ 2,445,024 | ||
High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 22,536 | 1,852 | 21,221 | 18,903 | |
Total identifiable assets | 1,638,666 | 1,638,666 | 1,579,300 | ||
Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 11,293 | 1,978 | 27,579 | 10,174 | |
Total identifiable assets | 114,990 | 114,990 | 114,391 | ||
High-Yield Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 5,646 | 7,612 | 3,910 | 8,150 | |
Total identifiable assets | 49,742 | 49,742 | 38,147 | ||
Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (10,946) | (8,616) | (42,871) | (33,498) | |
Total identifiable assets | 533,023 | 533,023 | $ 713,186 | ||
Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 368,893 | 287,508 | 952,379 | 791,868 | |
Operating Segments | High Purity Cellulose | Cellulose Specialties | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 243,175 | 186,029 | 645,169 | 521,442 | |
Operating Segments | High Purity Cellulose | Commodity Products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 92,638 | 74,577 | 223,151 | 195,894 | |
Operating Segments | High Purity Cellulose | Other sales | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 33,080 | 26,902 | 84,059 | 74,532 | |
Operating Segments | Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 65,039 | 52,188 | 182,512 | 156,799 | |
Operating Segments | High-Yield Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 39,564 | 41,877 | 101,992 | 106,207 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (7,150) | $ (7,559) | $ (19,601) | $ (21,163) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 24, 2022 USD ($) sawmill | Aug. 28, 2021 USD ($) |
Guarantor Obligations [Line Items] | ||
Number of lumber mills | sawmill | 6 | |
Rights to duty refunds | $ 112 | |
Duties receivable | $ 38 | |
Rayonier Advanced Materials Inc | 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 | 88 | |
Contract Guarantee | ||
Guarantor Obligations [Line Items] | ||
Guarantees | $ 31 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flows Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2022 | Sep. 25, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 48,384 | $ 34,852 |
Income taxes received | (16,484) | (27,268) |
Capital assets purchased on account | $ 16,316 | $ 9,609 |