Rayonier Advanced Materials (RYAM) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Apr. 01, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-36285
Entity Registrant Name	RAYONIER ADVANCED MATERIALS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4559529
Entity Address, Address Line One	1301 RIVERPLACE BOULEVARD
Entity Address, Address Line Two	SUITE 2300
Entity Address, City or Town	JACKSONVILLE
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32207
City Area Code	904
Local Phone Number	357-4600
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RYAM
Security Exchange Name	NYSE
Entity 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		65,118,524
Entity Central Index Key	0001597672
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Statement [Abstract]
Net sales	$ 466,761	$ 351,716
Cost of sales	(429,321)	(345,789)
Gross margin	37,440	5,927
Selling, general and administrative expenses	(19,495)	(20,107)
Other operating expense, net	(1,351)	(1,612)
Operating income (loss)	16,594	(15,792)
Interest expense	(15,496)	(16,198)
Other components of pension and OPEB, excluding service costs (Note 14)	(1,734)	1,010
Unrealized gain on GreenFirst equity securities (Note 2)	0	8,900
Other income (expense), net	306	(513)
Loss from continuing operations before income taxes	(330)	(22,593)
Income tax (expense) benefit (Note 15)	2,586	(1,398)
Equity in loss of equity method investment	(649)	(389)
Income (loss) from continuing operations	1,607	(24,380)
Loss from discontinued operations, net of taxes (Note 2)	0	(471)
Net income (loss)	$ 1,607	$ (24,851)
Basic earnings per common share (Note 12)
Income (loss) from continuing operations (in dollars per share)	$ 0.02	$ (0.38)
Loss from discontinued operations (in dollars per share)	0	(0.01)
Net income (loss) per common share-basic (in dollars per share)	0.02	(0.39)
Diluted earnings per common share (Note 12)
Income (loss) from continuing operations (in dollars per share)	0.02	(0.38)
Loss from discontinued operations (in dollars per share)	0	(0.01)
Net income (loss) per common share-diluted (in dollars per share)	$ 0.02	$ (0.39)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,607	$ (24,851)
Other comprehensive income (loss), net of tax (Note 10)
Foreign currency translation adjustment	4,212	(6,282)
Unrealized gain on derivative instruments	55	80
Net gain (loss) on employee benefit plans	(127)	1,948
Total other comprehensive income (loss)	4,140	(4,254)
Comprehensive income (loss)	$ 5,747	$ (29,105)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 169,402	$ 151,803
Accounts receivable, net (Note 3)	201,271	211,526
Inventory (Note 4)	237,364	265,334
Prepaid and other current assets	54,029	60,867
Total current assets	662,066	689,530
Property, plant and equipment (net of accumulated depreciation of $1,753,833 and $1,721,898, respectively)	1,144,206	1,151,268
Deferred tax assets	324,049	322,164
Intangible assets, net	22,671	24,423
Other assets	156,977	160,143
Total assets	2,309,969	2,347,528
Current liabilities
Accounts payable	157,553	163,962
Accrued and other current liabilities (Note 6)	138,151	164,369
Debt due within one year (Note 7)	14,317	14,617
Current environmental liabilities (Note 8)	10,731	10,732
Total current liabilities	320,752	353,680
Long-term debt (Note 7)	831,425	838,508
Non-current environmental liabilities (Note 8)	159,444	159,949
Pension and other postretirement benefits (Note 14)	118,420	119,571
Deferred tax liabilities	19,160	17,021
Other liabilities	29,339	29,486
Commitments and contingencies (Note 17)
Stockholders’ Equity
Common stock: 140,000,000 shares authorized at $0.01 par value, 65,106,348 and 64,020,761 issued and outstanding, respectively	651	640
Additional paid-in capital	414,406	418,048
Retained earnings	476,030	474,423
Accumulated other comprehensive loss (Note 10)	(59,658)	(63,798)
Total stockholders’ equity	831,429	829,313
Total liabilities and stockholders’ equity	$ 2,309,969	$ 2,347,528

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated deprecation	$ 1,753,833	$ 1,721,898
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)	65,106,348	64,020,761
Common stock, shares outstanding (in shares)	65,106,348	64,020,761

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021			63,738,409
Beginning balance at Dec. 31, 2021		$ 814,343	$ 637	$ 408,834	$ 489,342	$ (84,470)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(24,851)			(24,851)
Other comprehensive income (loss)		(4,254)				(4,254)
Issuance of common stock under incentive stock plans (in shares)			172,920
Issuance of common stock under incentive stock plans		0	$ 2	(2)
Stock-based compensation		2,259		2,259
Repurchase of common stock (in shares)	[1]		(62,179)
Repurchase of common stock	[1]	(304)	$ (1)	(303)
Ending balance (in shares) at Mar. 26, 2022			63,849,150
Ending balance at Mar. 26, 2022		$ 787,193	$ 638	410,788	464,491	(88,724)
Beginning balance (in shares) at Dec. 31, 2022		64,020,761	64,020,761
Beginning balance at Dec. 31, 2022		$ 829,313	$ 640	418,048	474,423	(63,798)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		1,607			1,607
Other comprehensive income (loss)		4,140				4,140
Issuance of common stock under incentive stock plans (in shares)			1,700,494
Issuance of common stock under incentive stock plans		0	$ 17	(17)
Stock-based compensation		1,478		1,478
Repurchase of common stock (in shares)	[1]		(614,907)
Repurchase of common stock	[1]	$ (5,109)	$ (6)	(5,103)
Ending balance (in shares) at Apr. 01, 2023		65,106,348	65,106,348
Ending balance at Apr. 01, 2023		$ 831,429	$ 651	$ 414,406	$ 476,030	$ (59,658)
[1]Repurchased to satisfy tax withholding requirements related to the issuance of stock under the Company’s incentive stock plans.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Operating activities
Net income (loss)	$ 1,607	$ (24,851)
Loss from discontinued operations	0	471
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	35,257	27,393
Stock-based compensation expense	1,478	2,259
Deferred income tax benefit	(76)	(697)
Unrealized gain on GreenFirst equity securities	0	(8,900)
Net periodic benefit cost of pension and other postretirement plans	921	1,519
Unrealized loss on foreign currency	267	1,533
Other	2,228	1,757
Changes in operating assets and liabilities:
Accounts receivable	9,242	(22,751)
Inventories	28,600	6,946
Accounts payable	(6,971)	13,505
Accrued liabilities	(26,406)	5,053
Other	9,929	(24,503)
Contributions to pension and other postretirement plans	(4,687)	(1,619)
Cash provided by (used in) operating activities-continuing operations	51,389	(22,885)
Cash (used in) operating activities-discontinued operations	0	(635)
Cash provided by (used in) operating activities	51,389	(23,520)
Investing activities
Capital expenditures, net	(21,180)	(45,167)
Investment in equity method investment	(168)	0
Cash used in investing activities	(21,348)	(45,167)
Financing activities
Borrowing of long-term debt	536	3,397
Repayment of long-term debt	(8,369)	(2,119)
Short-term financing, net	(647)	(5,388)
Repurchase of common stock	(5,109)	(304)
Cash used in financing activities	(13,589)	(4,414)
Net increase (decrease) in cash and cash equivalents	16,452	(73,101)
Net effect of foreign exchange on cash and cash equivalents	1,147	(1,457)
Balance, beginning of period	151,803	253,307
Balance, end of period	169,402	178,749
Supplemental cash flow information:
Interest paid	(18,841)	(18,858)
Income taxes paid, net	(3,029)	(52)
Capital assets purchased on account	$ 30,041	$ 36,657

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with GAAP for interim financial information and in accordance with the rules and regulations of the SEC. In the opinion of management, these consolidated financial statements and notes reflect all adjustments, including all 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 2022 Form 10-K. As a result of the sale of its lumber and newsprint assets in August 2021 to 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. See Note 2—Discontinued Operations for further information on the sale. Recent Accounting Developments There have been no new or recently adopted accounting pronouncements impacting the Company’s consolidated interim financial statements. Subsequent Events In April 2023, the Company repurchased $10 million of Senior Secured Notes through open-market transactions and retired the notes for cash of $9 million.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Apr. 01, 2023
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	2. Discontinued Operations In August 2021, the Company completed the sale of its lumber and newsprint facilities and certain related assets located in Canada to GreenFirst for $232 million, which included 28.7 million shares of GreenFirst common stock with a deemed fair value of $42 million. In the second quarter of 2022, the Company sold the GreenFirst common shares for $43 million. Prior to the sale of shares, the GreenFirst common shares were accounted for at fair value, with changes in fair value recorded in the consolidated statements of operations. 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 until December 2023. As part of the sale of the lumber assets, the Company retained all rights and obligations to softwood duties generated or incurred through the closing date of the sale. In total, the Company paid $112 million in softwood lumber duties from 2017 through August 2021, and expects to receive all or the vast majority of these duties upon final resolution of the dispute. As of April 1, 2023, the Company had a $38 million long-term receivable related to USDOC administrative reviews completed to date.

Accounts Receivable, Net

Accounts Receivable, Net	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Accounts Receivable, Net	3. Accounts Receivable, Net Accounts receivable, net included the following: April 1, 2023 December 31, 2022 Accounts receivable, trade $ 171,919 $ 171,144 Accounts receivable, other (a) 29,873 41,446 Allowance for credit losses (521) (1,064) Accounts receivable, net $ 201,271 $ 211,526 —————————————— (a) Consists primarily of value-added/consumption taxes, grants receivable and accrued billings due from government agencies.

Inventory

Inventory	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
Inventory	4. Inventory Inventory included the following: April 1, 2023 December 31, 2022 Finished goods $ 173,381 $ 198,931 Work-in-progress 6,075 5,230 Raw materials 49,472 52,967 Manufacturing and maintenance supplies 8,436 8,206 Inventory $ 237,364 $ 265,334

Leases

Leases	3 Months Ended
	Apr. 01, 2023
Leases [Abstract]
Leases	5. Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of April 1, 2023, the Company’s leases have remaining lease terms of less than one year to 13.6 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the ROU assets, as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or 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. Financial and other information related to the Company’s operating and finance leases follow: Three Months Ended April 1, 2023 March 26, 2022 Operating lease cost $ 1,694 $ 1,931 Finance lease cost Amortization of ROU assets 99 92 Interest 30 37 Total lease cost $ 1,823 $ 2,060 Balance Sheet Classification April 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 14,203 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,271 4,741 Lease liabilities, non-current Other liabilities 10,553 11,399 Finance leases ROU assets Property, plant and equipment, net 1,356 1,448 Lease liabilities Long-term debt 1,662 1,760 Three Months Ended April 1, 2023 March 26, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,581 $ 2,123 Operating lease ROU assets obtained in exchange for lease liabilities (80) 805 Finance lease cash flows were immaterial during each of the three months ended April 1, 2023 and March 26, 2022. April 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.9 5.8 Weighted average discount rate 9.1 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.6 3.8 Weighted average discount rate 7.0 % 7.0 %
Leases	5. Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of April 1, 2023, the Company’s leases have remaining lease terms of less than one year to 13.6 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the ROU assets, as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or 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. Financial and other information related to the Company’s operating and finance leases follow: Three Months Ended April 1, 2023 March 26, 2022 Operating lease cost $ 1,694 $ 1,931 Finance lease cost Amortization of ROU assets 99 92 Interest 30 37 Total lease cost $ 1,823 $ 2,060 Balance Sheet Classification April 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 14,203 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,271 4,741 Lease liabilities, non-current Other liabilities 10,553 11,399 Finance leases ROU assets Property, plant and equipment, net 1,356 1,448 Lease liabilities Long-term debt 1,662 1,760 Three Months Ended April 1, 2023 March 26, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,581 $ 2,123 Operating lease ROU assets obtained in exchange for lease liabilities (80) 805 Finance lease cash flows were immaterial during each of the three months ended April 1, 2023 and March 26, 2022. April 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.9 5.8 Weighted average discount rate 9.1 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.6 3.8 Weighted average discount rate 7.0 % 7.0 %

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	3 Months Ended
	Apr. 01, 2023
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	6. Accrued and Other Current Liabilities Accrued and other current liabilities included the following: April 1, 2023 December 31, 2022 Accrued customer incentives $ 25,338 $ 28,702 Accrued payroll and benefits 17,577 13,763 Accrued interest 13,213 18,877 Accrued income taxes 6,815 9,321 Accrued property and other taxes 5,031 3,065 Deferred revenue (a) 21,525 21,645 Other current liabilities (b) 48,652 68,996 Accrued and other current liabilities $ 138,151 $ 164,369 —————————————— (a) Included at both April 1, 2023 and December 31, 2022 was CAD $25 million (USD $18 million) associated with funds received in 2021 for CEWS. All CEWS claims are subject to mandatory audit. The Company will recognize amounts from these claims in income at the time there is sufficient evidence that it will not be required to repay such amounts. (b) Included at April 1, 2023 and December 31, 2022 was $16 million and $30 million, respectively, of energy-related payables associated with Tartas facility operations.

Debt and Finance Leases

Debt and Finance Leases	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Debt and Finance Leases	7. Debt and Finance Leases Debt and finance leases included the following: April 1, 2023 December 31, 2022 ABL Credit Facility due 2025: $100 million available, bearing interest of 6.98% (4.73% adjusted SOFR plus 2.25% margin) at April 1, 2023 $ — $ — 7.625% Senior Secured Notes due 2026 475,000 475,000 5.50% Senior Unsecured Notes due 2024 317,675 322,675 5.50% CAD-based term loan due 2028 34,301 36,585 Other loans (a) 19,576 19,598 Short-term factoring facility-France 3,182 3,773 Finance lease obligations 1,662 1,760 Total principal payments due 851,396 859,391 Less: unamortized debt premium, discount and issuance costs (5,654) (6,266) Total debt 845,742 853,125 Less: debt due within one year (14,317) (14,617) Long-term debt $ 831,425 $ 838,508 —————————————— (a) Consist of loans for energy and bioethanol projects in France. In March 2023, the Company repurchased $5 million of Senior Unsecured Notes through open-market transactions and retired the notes for cash of $5 million. An immaterial gain on extinguishment for the repurchase was recorded to “other income (expense), net” in the consolidated statements of operations. As of April 1, 2023, the Company’s debt principal payments, excluding finance lease obligations, were due as follows: Remainder of 2023 $ 10,488 2024 328,811 2025 11,122 2026 485,490 2027 8,341 Thereafter 5,482 Total debt principal payments $ 849,734

Environmental Liabilities

Environmental Liabilities	3 Months Ended
	Apr. 01, 2023
Environmental Remediation Obligations [Abstract]
Environmental Liabilities	8. Environmental Liabilities The Company’s environmental liabilities balance changed as follows during the three months ended April 1, 2023: Balance at December 31, 2022 $ 170,681 Increase in liabilities 960 Payments (1,452) Foreign currency adjustments (14) Balance at April 1, 2023 170,175 Less: current portion (10,731) Non-current environmental liabilities $ 159,444 In addition to these 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 or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its environmental liability; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies or non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of April 1, 2023, the Company estimates this exposure could range up to approximately $85 million, although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several sites and other applicable liabilities. This estimate excludes liabilities that would otherwise be considered reasonably possible but for the fact that they are not currently estimable, primarily due to the factors discussed above. Subject to the previous paragraph, the Company believes its estimates of liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its environmental liabilities. However, no assurances are given that these estimates 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	9. 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: April 1, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 1 Level 2 Assets Cash and cash equivalents Cash $ 129,837 $ 129,837 $ — $ 127,288 $ 127,288 $ — Money market and similar funds 39,565 39,565 — 24,515 24,515 — Liabilities Fixed-rate long-term debt (a) $ 840,898 $ — $ 814,895 $ 847,591 $ — $ 838,502 —————————————— (a) Excludes finance lease obligations. 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 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 measures its investments in money market and similar funds using level 1 inputs. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. Variable rate debt adjusts with changes in the market rate and so carrying value approximates fair value.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Apr. 01, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	10. Accumulated Other Comprehensive Loss Three Months Ended April 1, 2023 March 26, 2022 Unrecognized components of employee benefit plans, net of tax Balance, beginning of period $ (43,694) $ (76,849) Reclassifications to earnings (a) Amortization of (gain) loss (176) 2,488 Amortization of prior service cost 13 8 Income tax on reclassifications 36 (548) Net comprehensive gain (loss) on employee benefit plans, net of tax (127) 1,948 Balance, end of period (43,821) (74,901) Unrealized gain (loss) on derivative instruments, net of tax Balance, beginning of period (567) (847) Reclassifications to earnings - foreign currency exchange contracts (b) 63 92 Income tax on reclassifications (8) (12) Net comprehensive gain on derivative instruments, net of tax 55 80 Balance, end of period (512) (767) Foreign currency translation Balance, beginning of period (19,537) (6,774) Foreign currency translation adjustment, net of tax (c) 4,212 (6,282) Balance, end of period (15,325) (13,056) Accumulated other comprehensive loss, end of period $ (59,658) $ (88,724) —————————————— (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 14—Employee Benefit Plans for further information. (b) Reclassifications of foreign currency exchange contracts are recorded in “cost of sales,” “other operating expense, net” or “other income (expense), net,” as appropriate. (c) Foreign currency translation is net of tax effects of $0 for all periods presented, as the French operations are taxed on the foreign functional currency, not the translated reporting currency.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Apr. 01, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	11. Stockholders’ Equity Stockholder Rights Plan In March 2022, the Company adopted a stockholder rights plan 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. On the same date, the Board of Directors declared a dividend of one preferred share Purchase Right for each outstanding share of common stock of the Company, par value $0.01 per share, which was paid to Company stockholders of record as of March 31, 2022. On March 20, 2023, the Purchase Rights expired.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Earnings Per Common Share	12. Earnings Per Common Share The following table provides the inputs to the calculations of basic and diluted earnings per common share (share amounts not in thousands): Three Months Ended April 1, 2023 March 26, 2022 Income (loss) from continuing operations $ 1,607 $ (24,380) Loss from discontinued operations — (471) Net income (loss) available for common stockholders $ 1,607 $ (24,851) Shares used for determining basic earnings per share of common stock 64,504,200 63,771,484 Dilutive effect of: Stock options 531 — Performance and restricted stock 2,091,922 — Shares used for determining diluted earnings per share of common stock 66,596,653 63,771,484 Anti-dilutive instruments excluded from the computation of diluted earnings per share (not in thousands): Three Months Ended April 1, 2023 March 26, 2022 Stock options 162,171 80,120 Performance and restricted stock 96,769 3,401,875 Total anti-dilutive instruments 258,940 3,481,995

Incentive Stock Plans

Incentive Stock Plans	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Incentive Stock Plans	13. Incentive Stock Plans Stock-based compensation expense for the three months ended April 1, 2023 and March 26, 2022 was $1 million and $2 million, respectively. The Company made new grants of restricted stock units, performance-based stock units and performance-based cash units during the first quarter of 2023. The 2023 restricted stock unit awards cliff vest after three years. The 2023 performance-based awards cliff vest after three years and are based equally on TSR relative to peers and three-year cumulative adjusted EBITDA. Participants can earn between 0 and 200 percent of the target award. Performance below the threshold for the TSR would result in zero payout for the TSR metric. The performance-based cash unit award is measured using the same objectives as the performance-based stock unit award, but is paid and accounted for separately. Performance-based cash unit awards are classified as a liability and remeasured to fair value at the end of each reporting period until settlement. In March 2023, the performance-based stock units granted in 2020 were settled with the issuance of 1,257,015 shares of common stock, including incremental shares of 370,366, based on performance results. The following table summarizes the activity of the Company’s incentive stock awards: 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 December 31, 2022 77,767 $ 39.98 1,697,587 $ 6.21 1,956,919 $ 6.79 Granted — — 278,376 7.88 225,424 11.20 Forfeited — — (22,480) 6.39 (5,433) 4.73 Exercised or settled — — (464,523) 5.75 (886,649) 5.95 Expired or cancelled (30,885) 43.35 — — — — Outstanding at April 1, 2023 46,882 $ 37.76 1,488,960 $ 6.66 1,290,261 $ 8.12

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Apr. 01, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Employee Benefit Plans	14. Employee Benefit Plans Defined 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 and certain assumptions about future events. During the three months ended April 1, 2023, the Company recorded a $2 million loss related to the final asset surplus distribution to the plan participants of certain Canadian pension plans previously wound up. The settlement was recognized in “other components of pension and OPEB, excluding service costs” in the Company’s consolidated statements of operations. The following table presents the components of net periodic benefit costs from these plans: Pension Postretirement Three Months Ended Three Months Ended April 1, 2023 March 26, 2022 April 1, 2023 March 26, 2022 Service cost $ 1,217 $ 2,176 $ 287 $ 353 Interest cost 7,145 4,606 357 216 Expected return on plan assets (7,922) (8,328) — — Amortization of prior service cost 37 39 (24) (31) Amortization of (gain) loss (122) 2,473 (54) 15 Pension settlement loss 2,317 — — — Net periodic benefit cost $ 2,672 $ 966 $ 566 $ 553 Service cost is included in “cost of sales” or “selling, general and administrative expenses” in the consolidated 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	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	15. Income Taxes Effective Tax Rate The effective tax rate for the three months ended April 1, 2023 is not meaningful due to near break-even pretax income for the period, which results in any discrete tax adjustments significantly impacting the rate. The largest adjustments creating a difference between the effective tax rate and the statutory rate of 21 percent were an excess tax benefit on vested stock compensation and return-to-accrual adjustments related to previously filed tax returns. The effective tax rate on the loss from continuing operations for the three months ended March 26, 2022 was an expense of 6 percent. The 2022 effective tax rate differed from the federal statutory rate of 21 percent primarily due to disallowed interest deductions in the U.S. and nondeductible executive compensation, partially offset by U.S. tax credits and tax return-to-accrual adjustments. Deferred Taxes The Company’s net DTA includes $17 million of disallowed U.S. interest deductions that the Company does not believe will be realized. This asset did not materially change in the three months ended April 1, 2023. In strict compliance with the American Institute of Certified Public Accountants’ Technical Questions and Answers 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, the Company has not recognized a valuation allowance on this portion of the net DTA generated from disallowed interest.

Segments

Segments	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Segments	16. Segments The Company operates in the following business segments: High Purity Cellulose, Paperboard and High-Yield Pulp. Corporate consists primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. The Company 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 (loss). 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 April 1, 2023 March 26, 2022 High Purity Cellulose Cellulose Specialties $ 226,665 $ 183,554 Commodity Products 124,040 70,755 Other sales (a) 23,489 26,636 Total High Purity Cellulose 374,194 280,945 Paperboard 58,994 54,237 High-Yield Pulp 41,860 22,141 Eliminations (8,287) (5,607) Net sales $ 466,761 $ 351,716 —————————————— (a) Other sales include sales of bioelectricity, lignosulfonates and other by-products to third parties. Operating income (loss) by segment was comprised of the following: Three Months Ended April 1, 2023 March 26, 2022 High Purity Cellulose $ 12,934 $ (7,804) Paperboard 9,734 5,839 High-Yield Pulp 7,256 (371) Corporate (13,330) (13,456) Operating income (loss) $ 16,594 $ (15,792) Identifiable assets by segment were as follows: April 1, 2023 December 31, 2022 High Purity Cellulose $ 1,589,328 $ 1,654,214 Paperboard 115,642 112,757 High-Yield Pulp 44,123 50,947 Corporate 560,876 529,610 Total assets $ 2,309,969 $ 2,347,528

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	17. Commitments and Contingencies Commitments The Company had no material changes to the purchase obligations presented in its 2022 Form 10-K that were outside the normal course of business during the three months ended April 1, 2023. The Company’s purchase obligations continue to primarily consist of commitments for the purchase of natural gas, steam energy and wood chips. 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 U.S. 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 part of the sale of its lumber assets, the Company retained all rights and obligations to softwood duties generated or incurred through the closing date of the transaction. As of April 1, 2023 , 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. Preliminary results of th e USDOC’s fourth administrative review were released in January 2023, with final results expected later in 2023. 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 of the remaining 2021 period. Other In addition to the above, the Company is engaged in various legal and regulatory actions and proceedings and has been named as a defendant in various lawsuits and claims arising in the ordinary course of 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, business interruption and general liability. These other lawsuits and claims, either individually or in the 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 April 1, 2023, the Company had net exposure of $36 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 standby letters of credit have various expiration dates and are expected to be renewed as required. The Company had surety bonds of $86 million as of April 1, 2023, 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. 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 proportion of the LTF financing agreement guarantee was $32 million at April 1, 2023. 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 liability under these potential obligations due to the unique set of facts and circumstances likely to be involved with each provision. As of December 31, 2022, a collective bargaining agreement covering approximately 575 unionized employees was expired. The employees have continued to work under the terms of the expired contract while negotiations continue. While there can be no assurances, the Company expects to reach agreements with the union. However, a work stoppage could have a material adverse effect on the Company’s business, financial condition and results of operations.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with GAAP for interim financial information and in accordance with the rules and regulations of the SEC. In the opinion of management, these consolidated financial statements and notes reflect all adjustments, including all 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 2022 Form 10-K. As a result of the sale of its lumber and newsprint assets in August 2021 to 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. See Note 2—Discontinued Operations for further information on the sale.
Recent Accounting Developments	Recent Accounting Developments There have been no new or recently adopted accounting pronouncements impacting the Company’s consolidated interim financial statements.
Subsequent Events	Subsequent Events In April 2023, the Company repurchased $10 million of Senior Secured Notes through open-market transactions and retired the notes for cash of $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 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 measures its investments in money market and similar funds using level 1 inputs. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. Variable rate debt adjusts with changes in the market rate and so carrying value approximates fair value.

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable, net included the following: April 1, 2023 December 31, 2022 Accounts receivable, trade $ 171,919 $ 171,144 Accounts receivable, other (a) 29,873 41,446 Allowance for credit losses (521) (1,064) Accounts receivable, net $ 201,271 $ 211,526 —————————————— (a) Consists primarily of value-added/consumption taxes, grants receivable and accrued billings due from government agencies.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory included the following: April 1, 2023 December 31, 2022 Finished goods $ 173,381 $ 198,931 Work-in-progress 6,075 5,230 Raw materials 49,472 52,967 Manufacturing and maintenance supplies 8,436 8,206 Inventory $ 237,364 $ 265,334

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 01, 2023
Leases [Abstract]
Components of Lease Expense	Financial and other information related to the Company’s operating and finance leases follow: Three Months Ended April 1, 2023 March 26, 2022 Operating lease cost $ 1,694 $ 1,931 Finance lease cost Amortization of ROU assets 99 92 Interest 30 37 Total lease cost $ 1,823 $ 2,060 Three Months Ended April 1, 2023 March 26, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,581 $ 2,123 Operating lease ROU assets obtained in exchange for lease liabilities (80) 805 April 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.9 5.8 Weighted average discount rate 9.1 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.6 3.8 Weighted average discount rate 7.0 % 7.0 %
Balance Sheet Components	Balance Sheet Classification April 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 14,203 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,271 4,741 Lease liabilities, non-current Other liabilities 10,553 11,399 Finance leases ROU assets Property, plant and equipment, net 1,356 1,448 Lease liabilities Long-term debt 1,662 1,760

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	3 Months Ended
	Apr. 01, 2023
Payables and Accruals [Abstract]
Schedule of Accrued and Other Current Liabilities	Accrued and other current liabilities included the following: April 1, 2023 December 31, 2022 Accrued customer incentives $ 25,338 $ 28,702 Accrued payroll and benefits 17,577 13,763 Accrued interest 13,213 18,877 Accrued income taxes 6,815 9,321 Accrued property and other taxes 5,031 3,065 Deferred revenue (a) 21,525 21,645 Other current liabilities (b) 48,652 68,996 Accrued and other current liabilities $ 138,151 $ 164,369 —————————————— (a) Included at both April 1, 2023 and December 31, 2022 was CAD $25 million (USD $18 million) associated with funds received in 2021 for CEWS. All CEWS claims are subject to mandatory audit. The Company will recognize amounts from these claims in income at the time there is sufficient evidence that it will not be required to repay such amounts. (b) Included at April 1, 2023 and December 31, 2022 was $16 million and $30 million, respectively, of energy-related payables associated with Tartas facility operations.

Debt and Finance Leases (Tables

Debt and Finance Leases (Tables)	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt and finance leases included the following: April 1, 2023 December 31, 2022 ABL Credit Facility due 2025: $100 million available, bearing interest of 6.98% (4.73% adjusted SOFR plus 2.25% margin) at April 1, 2023 $ — $ — 7.625% Senior Secured Notes due 2026 475,000 475,000 5.50% Senior Unsecured Notes due 2024 317,675 322,675 5.50% CAD-based term loan due 2028 34,301 36,585 Other loans (a) 19,576 19,598 Short-term factoring facility-France 3,182 3,773 Finance lease obligations 1,662 1,760 Total principal payments due 851,396 859,391 Less: unamortized debt premium, discount and issuance costs (5,654) (6,266) Total debt 845,742 853,125 Less: debt due within one year (14,317) (14,617) Long-term debt $ 831,425 $ 838,508 —————————————— (a) Consist of loans for energy and bioethanol projects in France.
Schedule of Maturities of Long-term Debt	As of April 1, 2023, the Company’s debt principal payments, excluding finance lease obligations, were due as follows: Remainder of 2023 $ 10,488 2024 328,811 2025 11,122 2026 485,490 2027 8,341 Thereafter 5,482 Total debt principal payments $ 849,734

Environmental Liabilities (Tabl

Environmental Liabilities (Tables)	3 Months Ended
	Apr. 01, 2023
Environmental Remediation Obligations [Abstract]
Schedule of Liabilities for Disposed Operations	The Company’s environmental liabilities balance changed as follows during the three months ended April 1, 2023: Balance at December 31, 2022 $ 170,681 Increase in liabilities 960 Payments (1,452) Foreign currency adjustments (14) Balance at April 1, 2023 170,175 Less: current portion (10,731) Non-current environmental liabilities $ 159,444

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, by Balance Sheet Grouping	The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company, using market information and what management believes to be appropriate valuation methodologies: April 1, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 1 Level 2 Assets Cash and cash equivalents Cash $ 129,837 $ 129,837 $ — $ 127,288 $ 127,288 $ — Money market and similar funds 39,565 39,565 — 24,515 24,515 — Liabilities Fixed-rate long-term debt (a) $ 840,898 $ — $ 814,895 $ 847,591 $ — $ 838,502 —————————————— (a) Excludes finance lease obligations.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 01, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Three Months Ended April 1, 2023 March 26, 2022 Unrecognized components of employee benefit plans, net of tax Balance, beginning of period $ (43,694) $ (76,849) Reclassifications to earnings (a) Amortization of (gain) loss (176) 2,488 Amortization of prior service cost 13 8 Income tax on reclassifications 36 (548) Net comprehensive gain (loss) on employee benefit plans, net of tax (127) 1,948 Balance, end of period (43,821) (74,901) Unrealized gain (loss) on derivative instruments, net of tax Balance, beginning of period (567) (847) Reclassifications to earnings - foreign currency exchange contracts (b) 63 92 Income tax on reclassifications (8) (12) Net comprehensive gain on derivative instruments, net of tax 55 80 Balance, end of period (512) (767) Foreign currency translation Balance, beginning of period (19,537) (6,774) Foreign currency translation adjustment, net of tax (c) 4,212 (6,282) Balance, end of period (15,325) (13,056) Accumulated other comprehensive loss, end of period $ (59,658) $ (88,724) —————————————— (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 14—Employee Benefit Plans for further information. (b) Reclassifications of foreign currency exchange contracts are recorded in “cost of sales,” “other operating expense, net” or “other income (expense), net,” as appropriate. (c) Foreign currency translation is net of tax effects of $0 for all periods presented, as the French operations are taxed on the foreign functional currency, not the translated reporting currency.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table provides the inputs to the calculations of basic and diluted earnings per common share (share amounts not in thousands): Three Months Ended April 1, 2023 March 26, 2022 Income (loss) from continuing operations $ 1,607 $ (24,380) Loss from discontinued operations — (471) Net income (loss) available for common stockholders $ 1,607 $ (24,851) Shares used for determining basic earnings per share of common stock 64,504,200 63,771,484 Dilutive effect of: Stock options 531 — Performance and restricted stock 2,091,922 — Shares used for determining diluted earnings per share of common stock 66,596,653 63,771,484
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Anti-dilutive instruments excluded from the computation of diluted earnings per share (not in thousands): Three Months Ended April 1, 2023 March 26, 2022 Stock options 162,171 80,120 Performance and restricted stock 96,769 3,401,875 Total anti-dilutive instruments 258,940 3,481,995

Incentive Stock Plans (Tables)

Incentive Stock Plans (Tables)	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Activity for Incentive Stock Awards	The following table summarizes the activity of the Company’s incentive stock awards: 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 December 31, 2022 77,767 $ 39.98 1,697,587 $ 6.21 1,956,919 $ 6.79 Granted — — 278,376 7.88 225,424 11.20 Forfeited — — (22,480) 6.39 (5,433) 4.73 Exercised or settled — — (464,523) 5.75 (886,649) 5.95 Expired or cancelled (30,885) 43.35 — — — — Outstanding at April 1, 2023 46,882 $ 37.76 1,488,960 $ 6.66 1,290,261 $ 8.12

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Apr. 01, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Schedule of Net Pension and Postretirement Benefit Costs	The following table presents the components of net periodic benefit costs from these plans: Pension Postretirement Three Months Ended Three Months Ended April 1, 2023 March 26, 2022 April 1, 2023 March 26, 2022 Service cost $ 1,217 $ 2,176 $ 287 $ 353 Interest cost 7,145 4,606 357 216 Expected return on plan assets (7,922) (8,328) — — Amortization of prior service cost 37 39 (24) (31) Amortization of (gain) loss (122) 2,473 (54) 15 Pension settlement loss 2,317 — — — Net periodic benefit cost $ 2,672 $ 966 $ 566 $ 553

Segments (Tables)

Segments (Tables)	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Reconciliation of Net Sales by Product Line	Net sales, disaggregated by product line, was comprised of the following: Three Months Ended April 1, 2023 March 26, 2022 High Purity Cellulose Cellulose Specialties $ 226,665 $ 183,554 Commodity Products 124,040 70,755 Other sales (a) 23,489 26,636 Total High Purity Cellulose 374,194 280,945 Paperboard 58,994 54,237 High-Yield Pulp 41,860 22,141 Eliminations (8,287) (5,607) Net sales $ 466,761 $ 351,716 —————————————— (a) Other sales include sales of bioelectricity, lignosulfonates and other by-products to third parties.
Reconciliation of Operating Income (Loss)	Operating income (loss) by segment was comprised of the following: Three Months Ended April 1, 2023 March 26, 2022 High Purity Cellulose $ 12,934 $ (7,804) Paperboard 9,734 5,839 High-Yield Pulp 7,256 (371) Corporate (13,330) (13,456) Operating income (loss) $ 16,594 $ (15,792)
Reconciliation of Identifiable Assets	Identifiable assets by segment were as follows: April 1, 2023 December 31, 2022 High Purity Cellulose $ 1,589,328 $ 1,654,214 Paperboard 115,642 112,757 High-Yield Pulp 44,123 50,947 Corporate 560,876 529,610 Total assets $ 2,309,969 $ 2,347,528

Basis of Presentation (Details)

Basis of Presentation (Details) - 7.625% Senior Secured Notes due 2026 - Senior Notes - Subsequent Event $ in Millions	1 Months Ended
	Apr. 30, 2023 USD ($)
Subsequent Event [Line Items]
Debt instrument, repurchased face amount	$ 10
Cash repayments of senior notes	$ 9

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) shares in Millions, $ in Millions		3 Months Ended
	Aug. 28, 2021	Jun. 25, 2022	Apr. 01, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Duties receivable			$ 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 purchase price	$ 232
Equity interests to be received (in shares)	28.7
Equity interests to be received	$ 42
Rights to duty refunds			$ 112
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

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ (521)	$ (1,064)
Accounts receivable, net	201,271	211,526
Accounts receivable, trade
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, gross	171,919	171,144
Accounts receivable, other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, gross	$ 29,873	$ 41,446

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 173,381	$ 198,931
Work-in-progress	6,075	5,230
Raw materials	49,472	52,967
Manufacturing and maintenance supplies	8,436	8,206
Inventory	$ 237,364	$ 265,334

Leases - Narrative (Details)

Leases - Narrative (Details)	3 Months Ended
	Apr. 01, 2023
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	13 years 7 months 6 days

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Leases [Abstract]
Operating lease cost	$ 1,694	$ 1,931
Finance lease cost
Amortization of ROU assets	99	92
Interest	30	37
Total lease cost	$ 1,823	$ 2,060

Leases - Balance Sheet Componen

Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Operating leases
ROU assets	$ 14,203	$ 15,623
Lease liabilities, current	4,271	4,741
Lease liabilities, non-current	$ 10,553	$ 11,399
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
Finance leases
ROU assets	$ 1,356	$ 1,448
Lease liabilities	$ 1,662	$ 1,760
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment (net of accumulated depreciation of $1,753,833 and $1,721,898, respectively)	Property, plant and equipment (net of accumulated depreciation of $1,753,833 and $1,721,898, respectively)
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Long-term debt (Note 7)	Long-term debt (Note 7)

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Leases [Abstract]
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$ 1,581	$ 2,123
Operating lease ROU assets obtained in exchange for lease liabilities	$ (80)	$ 805
Operating leases
Weighted average remaining lease term (in years)	5 years 10 months 24 days		5 years 9 months 18 days
Weighted average discount rate	9.10%		8.90%
Finance leases
Weighted average remaining lease term (in years)	3 years 7 months 6 days		3 years 9 months 18 days
Weighted average discount rate	7%		7%

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities (Details) $ in Thousands, $ in Millions	Apr. 01, 2023 USD ($)	Apr. 01, 2023 CAD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CAD ($)
Payables and Accruals [Abstract]
Accrued customer incentives	$ 25,338		$ 28,702
Accrued payroll and benefits	17,577		13,763
Accrued interest	13,213		18,877
Accrued income taxes	6,815		9,321
Accrued property and other taxes	5,031		3,065
Deferred revenue	21,525		21,645
Other current liabilities	48,652		68,996
Accrued and other current liabilities	138,151		164,369
CEWS applied for	18,000	$ 25	18,000	$ 25
Accrued energy payable	$ 16,000		$ 30,000

Debt and Finance Leases - Summa

Debt and Finance Leases - Summary of Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Finance lease obligations	$ 1,662	$ 1,760
Total principal payments due	851,396	859,391
Less: unamortized debt premium, discount and issuance costs	(5,654)	(6,266)
Total debt	845,742	853,125
Less: debt due within one year	(14,317)	(14,617)
Long-term debt	831,425	838,508
Short-term factoring facility-France | Line of credit
Debt Instrument [Line Items]
Short-term debt, gross	3,182	3,773
Line of credit | ABL Credit Facility due 2025: $100 million available, bearing interest of 6.98% (4.73% adjusted SOFR plus 2.25% margin) at April 1, 2023
Debt Instrument [Line Items]
Borrowing capacity available	$ 100,000
Interest rate	6.98%
Long-term debt, gross	$ 0	0
Line of credit | ABL Credit Facility due 2025: $100 million available, bearing interest of 6.98% (4.73% adjusted SOFR plus 2.25% margin) at April 1, 2023 | SOFR
Debt Instrument [Line Items]
Variable rate	4.73%
Basis spread	2.25%
Senior Notes | 7.625% Senior Secured Notes due 2026
Debt Instrument [Line Items]
Fixed interest rate	7.625%
Long-term debt, gross	$ 475,000	475,000
Senior Notes | 5.50% Senior Unsecured Notes due 2024
Debt Instrument [Line Items]
Fixed interest rate	5.50%
Long-term debt, gross	$ 317,675	322,675
Loans | 5.50% CAD-based term loan due 2028
Debt Instrument [Line Items]
Fixed interest rate	5.50%
Long-term debt, gross	$ 34,301	36,585
Loans | Other loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 19,576	$ 19,598

Debt and Finance Leases - Narra

Debt and Finance Leases - Narrative (Details) - 5.50% Senior Unsecured Notes due 2024 - Senior Notes $ in Millions	1 Months Ended
	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Debt instrument, repurchased face amount	$ 5
Cash repayments of senior notes	$ 5

Debt and Finance Leases - Sched

Debt and Finance Leases - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Apr. 01, 2023 USD ($)
Debt Disclosure [Abstract]
Remainder of 2023	$ 10,488
2024	328,811
2025	11,122
2026	485,490
2027	8,341
Thereafter	5,482
Total debt principal payments	$ 849,734

Environmental Liabilities (Deta

Environmental Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Accrual for Environmental Loss Contingencies [Roll Forward]
Accrual for Environmental Loss Contingencies, Beginning Balance	$ 170,681
Increase in liabilities	960
Payments	(1,452)
Foreign currency adjustments	(14)
Balance at April 1, 2023	170,175
Less: current portion	(10,731)	$ (10,732)
Non-current environmental liabilities	$ 159,444	$ 159,949
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]	Less: current portion, Non-current environmental liabilities
Loss exposure in excess of accrual, high estimate	$ 85,000
Probable costs expected to be incurred, term	20 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Carrying Amount
Liabilities:
Fixed-rate long-term debt	$ 840,898	$ 847,591
Carrying Amount | Cash
Assets:
Cash and cash equivalents	129,837	127,288
Carrying Amount | Money market and similar funds
Assets:
Cash and cash equivalents	39,565	24,515
Fair Value | Level 1
Liabilities:
Fixed-rate long-term debt	0	0
Fair Value | Level 1 | Cash
Assets:
Cash and cash equivalents	129,837	127,288
Fair Value | Level 1 | Money market and similar funds
Assets:
Cash and cash equivalents	39,565	24,515
Fair Value | Level 2
Liabilities:
Fixed-rate long-term debt	814,895	838,502
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

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 829,313,000	$ 814,343,000
Total other comprehensive income (loss)	4,140,000	(4,254,000)
Ending balance	831,429,000	787,193,000
Tax effects of foreign translation adjustment	0	0
Unrecognized components of employee benefit plans, net of tax
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(43,694,000)	(76,849,000)
Income tax on reclassifications	36,000	(548,000)
Total other comprehensive income (loss)	(127,000)	1,948,000
Ending balance	(43,821,000)	(74,901,000)
Amortization of (gain) loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassifications to earnings	(176,000)	2,488,000
Amortization of prior service cost
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassifications to earnings	13,000	8,000
Unrealized gain (loss) on derivative instruments, net of tax
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(567,000)	(847,000)
Reclassifications to earnings	63,000	92,000
Income tax on reclassifications	(8,000)	(12,000)
Total other comprehensive income (loss)	55,000	80,000
Ending balance	(512,000)	(767,000)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(19,537,000)	(6,774,000)
Total other comprehensive income (loss)	4,212,000	(6,282,000)
Ending balance	(15,325,000)	(13,056,000)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(63,798,000)	(84,470,000)
Total other comprehensive income (loss)	4,140,000	(4,254,000)
Ending balance	$ (59,658,000)	$ (88,724,000)

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Apr. 01, 2023 $ / shares	Dec. 31, 2022 $ / shares	Mar. 31, 2022 $ / shares shares
Stockholders' Equity Note [Abstract]
Beneficial ownership threshold			0.10
Number of preferred share purchase rights issued per common stock (in shares) | shares			1
Common stock, par value (in USD per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01

Earnings Per Common Share - Cal

Earnings Per Common Share - Calculation of Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Earnings Per Share [Abstract]
Income (loss) from continuing operations	$ 1,607	$ (24,380)
Loss from discontinued operations	0	(471)
Net income (loss) available for common stockholders (Basic)	1,607	(24,851)
Net income (loss) available for common stockholders (Diluted)	$ 1,607	$ (24,851)
Shares used for determining basic earnings per share of common stock (in shares)	64,504,200	63,771,484
Dilutive effect of:
Stock options (in shares)	531	0
Performance and restricted stock (in shares)	2,091,922	0
Shares used for determining diluted earnings per share of common stock (in shares)	66,596,653	63,771,484

Earnings Per Common Share - Ant

Earnings Per Common Share - Anti-dilutive Securities Excluded from Computation (Details) - shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive instruments (in shares)	258,940	3,481,995
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive instruments (in shares)	162,171	80,120
Performance and restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive instruments (in shares)	96,769	3,401,875

Incentive Stock Plans - Narrati

Incentive Stock Plans - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2023	Apr. 01, 2023	Mar. 26, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 1	$ 2
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Performance-Based Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Shares issued (in shares)	1,257,015
Incremental shares issued (in shares)	370,366
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		200%

Incentive Stock Plans - Schedul

Incentive Stock Plans - Schedule of Outstanding Awards (Details)	3 Months Ended
	Apr. 01, 2023 $ / shares shares
Options
Beginning Balance (in shares) | shares	77,767
Granted (in shares) | shares	0
Forfeited (in shares) | shares	0
Exercised or settled (in shares) | shares	0
Expired or cancelled (in shares) | shares	(30,885)
Ending Balance (in shares) | shares	46,882
Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 39.98
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	43.35
Ending balance (in dollars per share) | $ / shares	$ 37.76
Restricted Stock Units
Awards
Beginning Balance (in shares) | shares	1,697,587
Granted (in shares) | shares	278,376
Forfeited (in shares) | shares	(22,480)
Exercised or settled (in shares) | shares	(464,523)
Expired or cancelled (in shares) | shares	0
Ending Balance (in shares) | shares	1,488,960
Weighted Average Grant Date Fair Value
Beginning balances (in dollars per share) | $ / shares	$ 6.21
Granted (in dollars per share) | $ / shares	7.88
Forfeited (in dollars per share) | $ / shares	6.39
Exercised or settled (in dollars per share) | $ / shares	5.75
Expired or cancelled (in dollars per share) | $ / shares	0
Ending balances (in dollars per share) | $ / shares	$ 6.66
Performance-Based Stock Units
Awards
Beginning Balance (in shares) | shares	1,956,919
Granted (in shares) | shares	225,424
Forfeited (in shares) | shares	(5,433)
Exercised or settled (in shares) | shares	(886,649)
Expired or cancelled (in shares) | shares	0
Ending Balance (in shares) | shares	1,290,261
Weighted Average Grant Date Fair Value
Beginning balances (in dollars per share) | $ / shares	$ 6.79
Granted (in dollars per share) | $ / shares	11.20
Forfeited (in dollars per share) | $ / shares	4.73
Exercised or settled (in dollars per share) | $ / shares	5.95
Expired or cancelled (in dollars per share) | $ / shares	0
Ending balances (in dollars per share) | $ / shares	$ 8.12

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Pension
Defined Benefit Plans Disclosure [Line Items]
Service cost	$ 1,217	$ 2,176
Interest cost	7,145	4,606
Expected return on plan assets	(7,922)	(8,328)
Amortization of prior service cost	37	39
Amortization of (gain) loss	(122)	2,473
Pension settlement loss	2,317	0
Net periodic benefit cost	2,672	966
Pension | Canada
Defined Benefit Plans Disclosure [Line Items]
Pension settlement loss	2,000
Postretirement
Defined Benefit Plans Disclosure [Line Items]
Service cost	287	353
Interest cost	357	216
Expected return on plan assets	0	0
Amortization of prior service cost	(24)	(31)
Amortization of (gain) loss	(54)	15
Pension settlement loss	0	0
Net periodic benefit cost	$ 566	$ 553

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 26, 2022	Apr. 01, 2023
Income Tax Contingency [Line Items]
Effective rate (percentage)	(6.00%)
Federal | Disallowed Interest Deductions
Income Tax Contingency [Line Items]
Deferred tax assets		$ 17,000,000
Deferred tax asset, valuation allowance		$ 0

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 466,761	$ 351,716
Operating income (loss)	16,594	(15,792)
Total assets	2,309,969		$ 2,347,528
Operating Segments | High Purity Cellulose
Segment Reporting Information [Line Items]
Net sales	374,194	280,945
Operating income (loss)	12,934	(7,804)
Total assets	1,589,328		1,654,214
Operating Segments | High Purity Cellulose | Cellulose Specialties
Segment Reporting Information [Line Items]
Net sales	226,665	183,554
Operating Segments | High Purity Cellulose | Commodity Products
Segment Reporting Information [Line Items]
Net sales	124,040	70,755
Operating Segments | High Purity Cellulose | Other
Segment Reporting Information [Line Items]
Net sales	23,489	26,636
Operating Segments | Paperboard
Segment Reporting Information [Line Items]
Net sales	58,994	54,237
Operating income (loss)	9,734	5,839
Total assets	115,642		112,757
Operating Segments | High-Yield Pulp
Segment Reporting Information [Line Items]
Net sales	41,860	22,141
Operating income (loss)	7,256	(371)
Total assets	44,123		50,947
Eliminations
Segment Reporting Information [Line Items]
Net sales	(8,287)	(5,607)
Corporate
Segment Reporting Information [Line Items]
Operating income (loss)	(13,330)	$ (13,456)
Total assets	$ 560,876		$ 529,610

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Apr. 01, 2023 USD ($) mill	Dec. 31, 2022 employee
Guarantor Obligations [Line Items]
Number of lumber mills | mill	6
Duties receivable	$ 38
Number of unionized employees, covered under expired contract | employee		575
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities
Guarantor Obligations [Line Items]
Rights to duty refunds	$ 112
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	$ 36
Surety Bond
Guarantor Obligations [Line Items]
Guarantees	86
Contract Guarantee
Guarantor Obligations [Line Items]
Guarantees	$ 32