Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 01, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 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 $0.01 per share | |
Trading Symbol | RYAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,343,418 | |
Entity Central Index Key | 0001597672 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 385,413 | $ 399,220 | $ 852,174 | $ 750,936 |
Cost of sales | (370,785) | (372,525) | (800,106) | (718,314) |
Gross margin | 14,628 | 26,695 | 52,068 | 32,622 |
Selling, general and administrative expense | (17,996) | (28,029) | (37,491) | (48,137) |
Foreign exchange gain (loss) | (1,461) | 1,950 | (2,134) | 1,454 |
Other operating expense, net | (1,627) | (3,513) | (2,305) | (4,629) |
Operating income (loss) | (6,456) | (2,897) | 10,138 | (18,690) |
Interest expense | (15,438) | (16,687) | (30,934) | (32,885) |
Other components of pension and OPEB, excluding service costs (Note 14) | 399 | (109) | (1,335) | 901 |
Gain (loss) on GreenFirst equity securities (Note 2) | 0 | (3,703) | 0 | 5,197 |
Other income, net | 3,307 | 3,155 | 3,613 | 2,642 |
Loss from continuing operations before income taxes | (18,188) | (20,241) | (18,518) | (42,835) |
Income tax (expense) benefit (Note 15) | 3,249 | (3,656) | 5,835 | (5,052) |
Equity in loss of equity method investment | (683) | (1,046) | (1,332) | (1,436) |
Loss from continuing operations | (15,622) | (24,943) | (14,015) | (49,323) |
Income (loss) from discontinued operations, net of taxes (Note 2) | (1,128) | 1,676 | (1,128) | 1,205 |
Net loss | $ (16,750) | $ (23,267) | $ (15,143) | $ (48,118) |
Basic and Diluted earnings per common share (Note 12) | ||||
Loss from continuing operations-basic (in dollars per share) | $ (0.24) | $ (0.39) | $ (0.22) | $ (0.77) |
Income (loss) from discontinued operations-basic (in dollars per share) | (0.02) | 0.03 | (0.02) | 0.02 |
Net loss per common share-basic (in dollars per share) | (0.26) | (0.36) | (0.24) | (0.75) |
Loss from continuing operations-diluted (in dollars per share) | (0.24) | (0.39) | (0.22) | (0.77) |
Income (loss) from discontinued operations-diluted (in dollars per share) | (0.02) | 0.03 | (0.02) | 0.02 |
Net loss per common share-diluted (in dollars per share) | $ (0.26) | $ (0.36) | $ (0.24) | $ (0.75) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (16,750) | $ (23,267) | $ (15,143) | $ (48,118) |
Other comprehensive income (loss), net of tax (Note 10) | ||||
Foreign currency translation adjustment | (109) | (9,582) | 4,103 | (15,864) |
Unrealized gain on derivative instruments | 48 | 77 | 103 | 157 |
Net gain (loss) on employee benefit plans | (2,240) | 1,948 | (2,367) | 3,896 |
Total other comprehensive income (loss) | (2,301) | (7,557) | 1,839 | (11,811) |
Comprehensive loss | $ (19,051) | $ (30,824) | $ (13,304) | $ (59,929) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 156,860 | $ 151,803 |
Accounts receivable, net (Note 3) | 177,465 | 211,526 |
Inventory (Note 4) | 219,313 | 265,334 |
Prepaid and other current assets | 85,976 | 60,867 |
Total current assets | 639,614 | 689,530 |
Property, plant and equipment (net of accumulated depreciation of $1,769,179 and $1,721,898, respectively) | 1,151,720 | 1,151,268 |
Deferred tax assets | 327,015 | 322,164 |
Intangible assets, net | 20,918 | 24,423 |
Other assets | 166,735 | 160,143 |
Total assets | 2,306,002 | 2,347,528 |
Current liabilities | ||
Accounts payable | 179,497 | 163,962 |
Accrued and other current liabilities (Note 6) | 138,573 | 164,369 |
Debt due within one year (Note 7) | 81,525 | 14,617 |
Current environmental liabilities (Note 8) | 10,754 | 10,732 |
Total current liabilities | 410,349 | 353,680 |
Long-term debt (Note 7) | 752,804 | 838,508 |
Non-current environmental liabilities (Note 8) | 159,103 | 159,949 |
Pension and other postretirement benefits (Note 14) | 121,015 | 119,571 |
Deferred tax liabilities | 18,663 | 17,021 |
Other liabilities | 30,051 | 29,486 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity | ||
Common stock: 140,000,000 shares authorized at $0.01 par value, 65,343,418 and 64,020,761 issued and outstanding, respectively | 654 | 640 |
Additional paid-in capital | 416,042 | 418,048 |
Retained earnings | 459,280 | 474,423 |
Accumulated other comprehensive loss (Note 10) | (61,959) | (63,798) |
Total stockholders’ equity | 814,017 | 829,313 |
Total liabilities and stockholders’ equity | $ 2,306,002 | $ 2,347,528 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated deprecation | $ 1,769,179 | $ 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) | 65,343,418 | 64,020,761 |
Common stock, shares outstanding (in shares) | 65,343,418 | 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 loss | (48,118) | (48,118) | ||||
Other comprehensive income (loss), net of tax | (11,811) | (11,811) | ||||
Issuance of common stock under incentive stock plans (in shares) | 294,936 | |||||
Issuance of common stock under incentive stock plans | 0 | $ 3 | (3) | |||
Stock-based compensation | 6,728 | 6,728 | ||||
Repurchase of common stock (in shares) | [1] | (62,179) | ||||
Repurchase of common stock | [1] | (303) | $ (1) | (302) | ||
Ending balance (in shares) at Jun. 25, 2022 | 63,971,166 | |||||
Ending balance at Jun. 25, 2022 | 760,839 | $ 639 | 415,257 | 441,224 | (96,281) | |
Beginning balance (in shares) at Mar. 26, 2022 | 63,849,150 | |||||
Beginning balance at Mar. 26, 2022 | 787,193 | $ 638 | 410,788 | 464,491 | (88,724) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (23,267) | (23,267) | ||||
Other comprehensive income (loss), net of tax | (7,557) | (7,557) | ||||
Issuance of common stock under incentive stock plans (in shares) | 122,016 | |||||
Issuance of common stock under incentive stock plans | 0 | $ 1 | (1) | |||
Stock-based compensation | 4,470 | 4,470 | ||||
Ending balance (in shares) at Jun. 25, 2022 | 63,971,166 | |||||
Ending balance at Jun. 25, 2022 | $ 760,839 | $ 639 | 415,257 | 441,224 | (96,281) | |
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 loss | (15,143) | (15,143) | ||||
Other comprehensive income (loss), net of tax | 1,839 | 1,839 | ||||
Issuance of common stock under incentive stock plans (in shares) | 1,966,815 | |||||
Issuance of common stock under incentive stock plans | 0 | $ 20 | (20) | |||
Stock-based compensation | 3,371 | 3,371 | ||||
Repurchase of common stock (in shares) | [1] | (644,158) | ||||
Repurchase of common stock | [1] | $ (5,363) | $ (6) | (5,357) | ||
Ending balance (in shares) at Jul. 01, 2023 | 65,343,418 | 65,343,418 | ||||
Ending balance at Jul. 01, 2023 | $ 814,017 | $ 654 | 416,042 | 459,280 | (61,959) | |
Beginning balance (in shares) at Apr. 01, 2023 | 65,106,348 | |||||
Beginning balance at Apr. 01, 2023 | 831,429 | $ 651 | 414,406 | 476,030 | (59,658) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (16,750) | (16,750) | ||||
Other comprehensive income (loss), net of tax | (2,301) | (2,301) | ||||
Issuance of common stock under incentive stock plans (in shares) | 266,321 | |||||
Issuance of common stock under incentive stock plans | 0 | $ 3 | (3) | |||
Stock-based compensation | 1,893 | 1,893 | ||||
Repurchase of common stock (in shares) | [1] | (29,251) | ||||
Repurchase of common stock | [1] | $ (254) | (254) | |||
Ending balance (in shares) at Jul. 01, 2023 | 65,343,418 | 65,343,418 | ||||
Ending balance at Jul. 01, 2023 | $ 814,017 | $ 654 | $ 416,042 | $ 459,280 | $ (61,959) | |
[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 | 6 Months Ended | |
Jul. 01, 2023 | Jun. 25, 2022 | |
Operating activities | ||
Net loss | $ (15,143) | $ (48,118) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
(Income) loss from discontinued operations | 1,128 | (1,205) |
Depreciation and amortization | 67,689 | 61,144 |
Stock-based compensation expense | 3,371 | 6,728 |
Deferred income tax expense (benefit) | (2,312) | 1,536 |
Gain on GreenFirst equity securities | 0 | (5,197) |
Net periodic benefit cost of pension and other postretirement plans | 2,045 | 2,972 |
Unrealized (gain) loss on foreign currency | 1,669 | (2,729) |
(Gain) loss on disposal of property, plant and equipment | (1,376) | 2,756 |
Other | 2,927 | 3,645 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 36,139 | (31,100) |
Inventories | 46,680 | (13,156) |
Accounts payable | 3,181 | 12,248 |
Accrued liabilities | (27,981) | 14,478 |
Other | (27,440) | (36,625) |
Contributions to pension and other postretirement plans | (6,717) | (3,659) |
Cash provided by (used in) operating activities-continuing operations | 83,860 | (36,282) |
Investing activities | ||
Capital expenditures, net | (54,154) | (86,589) |
Investment in equity method investment | (169) | 0 |
Cash used in investing activities-continuing operations | (54,323) | (86,589) |
Cash provided by investing activities-discontinued operations | 0 | 43,288 |
Cash used in investing activities | (54,323) | (43,301) |
Financing activities | ||
Borrowing of long-term debt | 1,509 | 5,569 |
Repayment of long-term debt | (20,305) | (25,215) |
Short-term financing, net | (1,479) | (1,720) |
Repurchase of common stock | (5,363) | (304) |
Cash used in financing activities | (25,638) | (21,670) |
Net increase (decrease) in cash and cash equivalents | 3,899 | (101,253) |
Net effect of foreign exchange on cash and cash equivalents | 1,158 | (4,306) |
Balance, beginning of period | 151,803 | 253,307 |
Balance, end of period | 156,860 | 147,748 |
Supplemental cash flow information: | ||
Interest paid | (28,404) | (29,430) |
Income taxes paid, net | (7,090) | (6,331) |
Capital assets purchased on account | $ 41,846 | $ 29,518 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 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, the Company presents the results for those operations and any associated impacts 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 Duties on Canadian Softwood Lumber Sold to the U.S. On July 26, 2023, the USDOC completed its fourth administrative review of duties applied to Canadian softwood lumber exports to the U.S. during 2021 and reduced rates applicable to the Company to a combined 8.0 percent. In connection with this development, in the third quarter the Company will record a pre-tax gain of approximately $2 million in “income (loss) from discontinued operations, net of taxes” and increase the long-term receivable related to the USDOC administrative reviews to approximately $40 million. Term Loan On July 20, 2023, the Company secured term loan financing of $250 million in aggregate principal amount and received net proceeds of $243 million after original issue discount, which will be used, together with cash on hand, to redeem the remaining $318 million in aggregate principal balance of the 2024 Notes and pay fees and expenses related to the transaction. The Company will record a loss on debt extinguishment of approximately $1 million in the third quarter related to the redemption. The 2027 Term Loan matures in July 2027, bears interest at a rate per annum equal to three-month Term SOFR (or, if greater, 3.00 percent) plus 8.00 percent and requires quarterly principal payments of 0.50 percent of the initial principal amount commencing in the fourth quarter of 2023. The Company may voluntarily make prepayments at any time, subject to customary breakage costs and, if within the first three anniversaries of closing, an additional make-whole premium. The agreement governing the 2027 Term Loan contains various customary covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the term loan agreement and in particular the Company’s French subsidiaries, to take certain specified actions, subject to certain exceptions, including: incurring debt or liens, making investments, entering into mergers, consolidations, and acquisitions, paying dividends and making other restricted payments. Additionally, the 2027 Term Loan contains customary affirmative covenants and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, late payment, breach of covenant, bankruptcy, judgment and defaults under certain other indebtedness and changes in control. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jul. 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 between the USDOC and Canada. As of July 1, 2023, the Company had a $38 million long-term receivable related to USDOC administrative reviews completed to date. During the three and six months ended July 1, 2023, the Company incurred $2 million related to the settlement of a claim pursuant to the representations and warranties in the asset purchase agreement. Income (loss) from discontinued operations was comprised of the following: Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Cost of sales $ — $ 326 $ — $ 153 Gross margin — 326 — 153 Selling, general and administrative and other operating income (expense) (1,533) 1,953 (1,533) 1,495 Operating income (loss) (1,533) 2,279 (1,533) 1,648 Other non-operating expense — (4) — (9) Income (loss) from discontinued operations before income taxes (1,533) 2,275 (1,533) 1,639 Income tax (expense) benefit 405 (599) 405 (434) Income (loss) from discontinued operations, net of taxes $ (1,128) $ 1,676 $ (1,128) $ 1,205 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jul. 01, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 3. Accounts Receivable, Net Accounts receivable, net included the following: July 1, 2023 December 31, 2022 Accounts receivable, trade $ 145,045 $ 171,144 Accounts receivable, other (a) 32,927 41,446 Allowance for credit loss (507) (1,064) Accounts receivable, net $ 177,465 $ 211,526 —————————————— (a) Consists primarily of value-added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 6 Months Ended |
Jul. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory included the following: July 1, 2023 December 31, 2022 Finished goods $ 156,469 $ 198,931 Work-in-progress 5,023 5,230 Raw materials 50,637 52,967 Manufacturing and maintenance supplies 7,184 8,206 Inventory $ 219,313 $ 265,334 |
Leases
Leases | 6 Months Ended |
Jul. 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 July 1, 2023, the Company’s leases have remaining lease terms of less than one year to 13.3 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Operating lease cost $ 1,791 $ 1,917 $ 3,485 $ 3,848 Finance lease cost Amortization of ROU assets 100 94 199 185 Interest 29 35 59 72 Total lease cost $ 1,920 $ 2,046 $ 3,743 $ 4,105 Balance Sheet Classification July 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 16,207 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,465 4,741 Lease liabilities, non-current Other liabilities 12,573 11,399 Finance leases ROU assets Property, plant and equipment, net 1,263 1,448 Lease liabilities Long-term debt 1,561 1,760 Six Months Ended July 1, 2023 June 25, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,701 $ 1,879 Operating lease ROU assets obtained in exchange for lease liabilities 1,946 59 Finance lease cash flows were immaterial during each of the three and six months ended July 1, 2023 and June 25, 2022. July 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.8 5.8 Weighted average discount rate 8.7 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.3 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 July 1, 2023, the Company’s leases have remaining lease terms of less than one year to 13.3 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Operating lease cost $ 1,791 $ 1,917 $ 3,485 $ 3,848 Finance lease cost Amortization of ROU assets 100 94 199 185 Interest 29 35 59 72 Total lease cost $ 1,920 $ 2,046 $ 3,743 $ 4,105 Balance Sheet Classification July 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 16,207 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,465 4,741 Lease liabilities, non-current Other liabilities 12,573 11,399 Finance leases ROU assets Property, plant and equipment, net 1,263 1,448 Lease liabilities Long-term debt 1,561 1,760 Six Months Ended July 1, 2023 June 25, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,701 $ 1,879 Operating lease ROU assets obtained in exchange for lease liabilities 1,946 59 Finance lease cash flows were immaterial during each of the three and six months ended July 1, 2023 and June 25, 2022. July 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.8 5.8 Weighted average discount rate 8.7 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.3 3.8 Weighted average discount rate 7.0 % 7.0 % |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jul. 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: July 1, 2023 December 31, 2022 Accrued customer incentives $ 26,063 $ 28,702 Accrued payroll and benefits 14,898 13,763 Accrued interest 17,294 18,877 Accrued income taxes 2,914 9,321 Accrued property and other taxes 6,561 3,065 Deferred revenue (a) 21,080 21,645 Other current liabilities (b) 49,763 68,996 Accrued and other current liabilities $ 138,573 $ 164,369 —————————————— (a) Included at both July 1, 2023 and December 31, 2022 was CAD $25 million (USD $19 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 July 1, 2023 and December 31, 2022 was $17 million and $30 million, respectively, of energy-related payables associated with Tartas facility operations. |
Debt and Finance Leases
Debt and Finance Leases | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | 7. Debt and Finance Leases Debt and finance leases included the following: July 1, 2023 December 31, 2022 ABL Credit Facility due 2025: $109 million available, bearing interest of 7.42% (5.17% adjusted SOFR plus 2.25% margin) at July 1, 2023 $ — $ — 7.625% Senior Secured Notes due 2026 464,640 475,000 5.50% Senior Unsecured Notes due 2024 317,675 322,675 5.50% CAD-based term loan due 2028 33,315 36,585 Other loans (a) 19,732 19,598 Short-term factoring facility-France 2,337 3,773 Finance lease obligations 1,561 1,760 Total principal payments due 839,260 859,391 Less: unamortized debt premium, discount and issuance costs (4,931) (6,266) Total debt 834,329 853,125 Less: debt due within one year (81,525) (14,617) Long-term debt $ 752,804 $ 838,508 —————————————— (a) Consist of loans for energy and bioethanol projects in France. In April 2023, the Company repurchased $10 million of its 2026 Notes through open-market transactions and retired the notes for cash of $9 million. A gain on extinguishment of $1 million for the repurchase was recorded to “other income, net” in the consolidated statements of operations. In March 2023, the Company repurchased $5 million of its 2024 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, net” in the consolidated statements of operations. As of July 1, 2023, the Company’s debt principal payments, excluding finance lease obligations, were due as follows: Remainder of 2023 (a) $ 75,059 2024 (b) 261,438 2025 11,424 2026 475,432 2027 8,645 Thereafter 5,701 Total debt principal payments $ 837,699 —————————————— (a) Includes $68 million of the $318 million in aggregate principal balance of the 2024 Notes, which will be redeemed with cash on hand in the third quarter of 2023 in accordance with the 2027 Term Loan financing agreement. (b) Includes the remaining $250 million principal balance of the 2024 Notes, which will be redeemed with the proceeds of the 2027 Term Loan in the third quarter of 2023. The 2027 Term Loan will mature in 2027. See Note 1—Basis of Presentation for further information on the refinancing of the 2024 Notes. |
Environmental Liabilities
Environmental Liabilities | 6 Months Ended |
Jul. 01, 2023 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities | 8. Environmental Liabilities The Company’s environmental liabilities balance changed as follows during the six months ended July 1, 2023: Balance at December 31, 2022 $ 170,681 Increase in liabilities 1,664 Payments (2,645) Foreign currency adjustments 157 Balance at July 1, 2023 169,857 Less: current portion (10,754) Non-current environmental liabilities $ 159,103 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 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 or non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of July 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 | 6 Months Ended |
Jul. 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: July 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 $ 86,891 $ 86,891 $ — $ 127,288 $ 127,288 $ — Money market and similar funds 69,969 69,969 — 24,515 24,515 — Liabilities Fixed-rate long-term debt (a) $ 830,431 $ — $ 769,672 $ 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 | 6 Months Ended |
Jul. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss Six Months Ended July 1, 2023 June 25, 2022 Unrecognized components of employee benefit plans, net of tax Balance, beginning of period $ (43,694) $ (76,849) Other comprehensive loss before reclassifications (3,034) — Income tax on other comprehensive loss 804 — Reclassifications to earnings (a) Amortization of (gain) loss (354) 4,976 Amortization of prior service cost 172 17 Income tax on reclassifications 45 (1,097) Net comprehensive gain (loss) on employee benefit plans, net of tax (2,367) 3,896 Balance, end of period (46,061) (72,953) Unrealized gain (loss) on derivative instruments, net of tax Balance, beginning of period (567) (847) Reclassifications to earnings - foreign currency exchange contracts (b) 119 181 Income tax on reclassifications (16) (24) Net comprehensive gain on derivative instruments, net of tax 103 157 Balance, end of period (464) (690) Foreign currency translation Balance, beginning of period (19,537) (6,774) Foreign currency translation adjustment, net of tax (c) 4,103 (15,864) Balance, end of period (15,434) (22,638) Accumulated other comprehensive loss, end of period $ (61,959) $ (96,281) —————————————— (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, 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 | 6 Months Ended |
Jul. 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 | 6 Months Ended |
Jul. 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Loss from continuing operations $ (15,622) $ (24,943) $ (14,015) $ (49,323) Income (loss) from discontinued operations (1,128) 1,676 (1,128) 1,205 Net loss available for common stockholders $ (16,750) $ (23,267) $ (15,143) $ (48,118) Shares used for determining basic earnings per share of common stock 65,226,344 63,898,761 64,865,272 63,837,292 Dilutive effect of: Stock options — — — — Performance and restricted stock — — — — Shares used for determining diluted earnings per share of common stock 65,226,344 63,898,761 64,865,272 63,837,292 Anti-dilutive instruments excluded from the computation of diluted earnings per share included (not in thousands): Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Stock options 46,882 78,660 46,882 78,660 Performance and restricted stock 3,302,332 3,372,498 3,302,332 3,372,498 Total anti-dilutive instruments 3,349,214 3,451,158 3,349,214 3,451,158 |
Incentive Stock Plans
Incentive Stock Plans | 6 Months Ended |
Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Stock Plans | 13. Incentive Stock Plans Stock-based compensation expense was as follows: Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Stock-based compensation expense $ 1,893 $ 4,470 $ 3,371 $ 6,728 The Company made new grants of restricted stock units, performance-based stock units and performance-based cash awards during the first and second quarters 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 award is measured using the same objectives as the performance-based stock unit award but is paid and accounted for separately. Performance-based cash 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 2023 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 — — 972,307 5.32 305,764 9.09 Forfeited — — (28,363) 5.95 (5,433) 4.73 Exercised or settled — — (709,800) 5.49 (886,649) 5.95 Expired or cancelled (30,885) 43.35 — — — — Outstanding at July 1, 2023 46,882 $ 37.76 1,931,731 $ 6.03 1,370,601 $ 7.83 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jul. 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 and six months ended June 25, 2022, the Company recorded a $1 million loss related to the final asset surplus distribution to the plan participants of certain wound-up Canadian pension plans. During the six months ended July 1, 2023, the Company recorded a $2 million loss related to the final asset surplus distribution to the plan participants of certain other wound-up Canadian pension plans. The settlements were 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 of these plans: Pension Postretirement Three Months Ended Three Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Service cost $ 1,224 $ 2,171 $ 299 $ 352 Interest cost 7,237 4,597 348 215 Expected return on plan assets (7,965) (8,379) — — Amortization of prior service cost 184 39 (25) (30) Amortization of (gain) loss (124) 2,473 (54) 15 Pension settlement loss — 1,179 — — Net periodic benefit cost $ 556 $ 2,080 $ 568 $ 552 Pension Postretirement Six Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Service cost $ 2,441 $ 4,347 $ 586 $ 705 Interest cost 14,382 9,203 705 431 Expected return on plan assets (15,887) (16,707) — — Amortization of prior service cost 221 78 (49) (61) Amortization of (gain) loss (246) 4,946 (108) 30 Pension settlement loss 2,317 1,179 — — Net periodic benefit cost $ 3,228 $ 3,046 $ 1,134 $ 1,105 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Effective Tax Rate The Company utilized the discrete effective rate method for the six months ended July 1, 2023, as allowed by ASC 740-270-30-18 Income Tax—Interim Reporting. The discrete method is applied when the application of the estimated AETR is impractical because it is not possible to reliably estimate the AETR. The discrete method treats the year-to-date period as if it was the annual period and calculates the income tax expense or benefit on a discrete basis, rather than forecasting the full year AETR and applying it against current period book earnings. The Company believes the use of the discrete method represents the best estimate of its AETR in the current period. The effective tax rate on the loss from continuing operations for the three and six months ended July 1, 2023 was a benefit of 18 percent and 32 percent, respectively. The 2023 effective tax rates differed from the federal statutory rate of 21 percent primarily due to disallowed interest deductions in the U.S. and nondeductible executive compensation, offset by U.S. tax credits, return-to-accrual adjustments related to previously filed tax returns and an excess tax benefit on vested stock compensation. The effective tax rate on the loss from continuing operations for the three and six months ended June 25, 2022 was an expense of 18 percent and 12 percent, respectively. The 2022 effective tax rates 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 As of July 1, 2023 and December 31, 2022, the Company’s net DTA included $18 million and $17 million, respectively, of disallowed U.S. interest deductions that the Company does not believe will be realized. 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 | 6 Months Ended |
Jul. 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 High Purity Cellulose Cellulose Specialties $ 179,265 $ 218,440 $ 405,930 $ 401,994 Commodity Products 98,674 59,758 222,714 130,513 Other sales (a) 21,430 24,343 44,919 50,979 Total High Purity Cellulose 299,369 302,541 673,563 583,486 Paperboard 48,094 63,236 107,088 117,473 High-Yield Pulp 44,144 40,287 86,004 62,428 Eliminations (6,194) (6,844) (14,481) (12,451) Net sales $ 385,413 $ 399,220 $ 852,174 $ 750,936 —————————————— (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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 High Purity Cellulose $ (422) $ 6,489 $ 12,512 $ (1,315) Paperboard 5,858 10,447 15,592 16,286 High-Yield Pulp 836 (1,365) 8,092 (1,736) Corporate (12,728) (18,468) (26,058) (31,925) Operating income (loss) $ (6,456) $ (2,897) $ 10,138 $ (18,690) Identifiable assets by segment were as follows: July 1, 2023 December 31, 2022 High Purity Cellulose $ 1,570,974 $ 1,654,214 Paperboard 111,554 112,757 High-Yield Pulp 42,103 50,947 Corporate 581,371 529,610 Total assets $ 2,306,002 $ 2,347,528 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 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 six months ended July 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 for softwood lumber duties between 2017 and August 28, 2021, including $1 million of ancillary fees, which were 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 July 1, 2023 , the Company had a $38 million long-term receivable associated with the USDOC’s determinations of the revised rates for the 2017, 2018, 2019 and 2020 periods. This amount does not include interest, which will be due on any amounts refunded. The Company estimates interest earned on the total amount of softwood lumber duties paid to be approximately $6 million. On July 26, 2023, the USDOC completed its fourth administrative review of duties applied to Canadian softwood lumber exports to the U.S. during 2021 and reduced rates applicable to the Company to a combined 8.0 percent. In connection with this development, in the third quarter the Company will record a pre-tax gain of approximately $2 million in “income (loss) from discontinued operations, net of taxes” and increase the long-term receivable related to the USDOC administrative reviews to approximately $40 million. Cash is not expected to return to the Company until final resolution of the softwood lumber dispute, which remains subject to legal challenges. 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 July 1, 2023, the Company had net exposure of $34 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 July 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’s proportion of the LTF financing agreement guarantee was $31 million at July 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 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, the Company presents the results for those operations and any associated impacts 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 Duties on Canadian Softwood Lumber Sold to the U.S. On July 26, 2023, the USDOC completed its fourth administrative review of duties applied to Canadian softwood lumber exports to the U.S. during 2021 and reduced rates applicable to the Company to a combined 8.0 percent. In connection with this development, in the third quarter the Company will record a pre-tax gain of approximately $2 million in “income (loss) from discontinued operations, net of taxes” and increase the long-term receivable related to the USDOC administrative reviews to approximately $40 million. Term Loan On July 20, 2023, the Company secured term loan financing of $250 million in aggregate principal amount and received net proceeds of $243 million after original issue discount, which will be used, together with cash on hand, to redeem the remaining $318 million in aggregate principal balance of the 2024 Notes and pay fees and expenses related to the transaction. The Company will record a loss on debt extinguishment of approximately $1 million in the third quarter related to the redemption. The 2027 Term Loan matures in July 2027, bears interest at a rate per annum equal to three-month Term SOFR (or, if greater, 3.00 percent) plus 8.00 percent and requires quarterly principal payments of 0.50 percent of the initial principal amount commencing in the fourth quarter of 2023. The Company may voluntarily make prepayments at any time, subject to customary breakage costs and, if within the first three anniversaries of closing, an additional make-whole premium. The agreement governing the 2027 Term Loan contains various customary covenants that limit the ability of the Company and its restricted subsidiaries, as defined by the term loan agreement and in particular the Company’s French subsidiaries, to take certain specified actions, subject to certain exceptions, including: incurring debt or liens, making investments, entering into mergers, consolidations, and acquisitions, paying dividends and making other restricted payments. Additionally, the 2027 Term Loan contains customary affirmative covenants and customary events of default (subject, in certain cases, to customary grace or cure periods), including, without limitation, late payment, breach of covenant, bankruptcy, judgment and defaults under certain other indebtedness and changes in control. |
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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Income (loss) from discontinued operations was comprised of the following: Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Cost of sales $ — $ 326 $ — $ 153 Gross margin — 326 — 153 Selling, general and administrative and other operating income (expense) (1,533) 1,953 (1,533) 1,495 Operating income (loss) (1,533) 2,279 (1,533) 1,648 Other non-operating expense — (4) — (9) Income (loss) from discontinued operations before income taxes (1,533) 2,275 (1,533) 1,639 Income tax (expense) benefit 405 (599) 405 (434) Income (loss) from discontinued operations, net of taxes $ (1,128) $ 1,676 $ (1,128) $ 1,205 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net included the following: July 1, 2023 December 31, 2022 Accounts receivable, trade $ 145,045 $ 171,144 Accounts receivable, other (a) 32,927 41,446 Allowance for credit loss (507) (1,064) Accounts receivable, net $ 177,465 $ 211,526 —————————————— (a) Consists primarily of value-added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory included the following: July 1, 2023 December 31, 2022 Finished goods $ 156,469 $ 198,931 Work-in-progress 5,023 5,230 Raw materials 50,637 52,967 Manufacturing and maintenance supplies 7,184 8,206 Inventory $ 219,313 $ 265,334 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Operating lease cost $ 1,791 $ 1,917 $ 3,485 $ 3,848 Finance lease cost Amortization of ROU assets 100 94 199 185 Interest 29 35 59 72 Total lease cost $ 1,920 $ 2,046 $ 3,743 $ 4,105 Six Months Ended July 1, 2023 June 25, 2022 Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 1,701 $ 1,879 Operating lease ROU assets obtained in exchange for lease liabilities 1,946 59 July 1, 2023 December 31, 2022 Operating leases Weighted average remaining lease term (in years) 5.8 5.8 Weighted average discount rate 8.7 % 8.9 % Finance leases Weighted average remaining lease term (in years) 3.3 3.8 Weighted average discount rate 7.0 % 7.0 % |
Balance Sheet Components | Balance Sheet Classification July 1, 2023 December 31, 2022 Operating leases ROU assets Other assets $ 16,207 $ 15,623 Lease liabilities, current Accrued and other current liabilities 4,465 4,741 Lease liabilities, non-current Other liabilities 12,573 11,399 Finance leases ROU assets Property, plant and equipment, net 1,263 1,448 Lease liabilities Long-term debt 1,561 1,760 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities included the following: July 1, 2023 December 31, 2022 Accrued customer incentives $ 26,063 $ 28,702 Accrued payroll and benefits 14,898 13,763 Accrued interest 17,294 18,877 Accrued income taxes 2,914 9,321 Accrued property and other taxes 6,561 3,065 Deferred revenue (a) 21,080 21,645 Other current liabilities (b) 49,763 68,996 Accrued and other current liabilities $ 138,573 $ 164,369 —————————————— (a) Included at both July 1, 2023 and December 31, 2022 was CAD $25 million (USD $19 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 July 1, 2023 and December 31, 2022 was $17 million and $30 million, respectively, of energy-related payables associated with Tartas facility operations. |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt and finance leases included the following: July 1, 2023 December 31, 2022 ABL Credit Facility due 2025: $109 million available, bearing interest of 7.42% (5.17% adjusted SOFR plus 2.25% margin) at July 1, 2023 $ — $ — 7.625% Senior Secured Notes due 2026 464,640 475,000 5.50% Senior Unsecured Notes due 2024 317,675 322,675 5.50% CAD-based term loan due 2028 33,315 36,585 Other loans (a) 19,732 19,598 Short-term factoring facility-France 2,337 3,773 Finance lease obligations 1,561 1,760 Total principal payments due 839,260 859,391 Less: unamortized debt premium, discount and issuance costs (4,931) (6,266) Total debt 834,329 853,125 Less: debt due within one year (81,525) (14,617) Long-term debt $ 752,804 $ 838,508 —————————————— (a) Consist of loans for energy and bioethanol projects in France. |
Schedule of Maturities of Long-term Debt | As of July 1, 2023, the Company’s debt principal payments, excluding finance lease obligations, were due as follows: Remainder of 2023 (a) $ 75,059 2024 (b) 261,438 2025 11,424 2026 475,432 2027 8,645 Thereafter 5,701 Total debt principal payments $ 837,699 —————————————— (a) Includes $68 million of the $318 million in aggregate principal balance of the 2024 Notes, which will be redeemed with cash on hand in the third quarter of 2023 in accordance with the 2027 Term Loan financing agreement. (b) Includes the remaining $250 million principal balance of the 2024 Notes, which will be redeemed with the proceeds of the 2027 Term Loan in the third quarter of 2023. The 2027 Term Loan will mature in 2027. See Note 1—Basis of Presentation for further information on the refinancing of the 2024 Notes. |
Environmental Liabilities (Tabl
Environmental Liabilities (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Liabilities for Disposed Operations | The Company’s environmental liabilities balance changed as follows during the six months ended July 1, 2023: Balance at December 31, 2022 $ 170,681 Increase in liabilities 1,664 Payments (2,645) Foreign currency adjustments 157 Balance at July 1, 2023 169,857 Less: current portion (10,754) Non-current environmental liabilities $ 159,103 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 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: July 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 $ 86,891 $ 86,891 $ — $ 127,288 $ 127,288 $ — Money market and similar funds 69,969 69,969 — 24,515 24,515 — Liabilities Fixed-rate long-term debt (a) $ 830,431 $ — $ 769,672 $ 847,591 $ — $ 838,502 —————————————— (a) Excludes finance lease obligations. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Six Months Ended July 1, 2023 June 25, 2022 Unrecognized components of employee benefit plans, net of tax Balance, beginning of period $ (43,694) $ (76,849) Other comprehensive loss before reclassifications (3,034) — Income tax on other comprehensive loss 804 — Reclassifications to earnings (a) Amortization of (gain) loss (354) 4,976 Amortization of prior service cost 172 17 Income tax on reclassifications 45 (1,097) Net comprehensive gain (loss) on employee benefit plans, net of tax (2,367) 3,896 Balance, end of period (46,061) (72,953) Unrealized gain (loss) on derivative instruments, net of tax Balance, beginning of period (567) (847) Reclassifications to earnings - foreign currency exchange contracts (b) 119 181 Income tax on reclassifications (16) (24) Net comprehensive gain on derivative instruments, net of tax 103 157 Balance, end of period (464) (690) Foreign currency translation Balance, beginning of period (19,537) (6,774) Foreign currency translation adjustment, net of tax (c) 4,103 (15,864) Balance, end of period (15,434) (22,638) Accumulated other comprehensive loss, end of period $ (61,959) $ (96,281) —————————————— (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, 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) | 6 Months Ended |
Jul. 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Loss from continuing operations $ (15,622) $ (24,943) $ (14,015) $ (49,323) Income (loss) from discontinued operations (1,128) 1,676 (1,128) 1,205 Net loss available for common stockholders $ (16,750) $ (23,267) $ (15,143) $ (48,118) Shares used for determining basic earnings per share of common stock 65,226,344 63,898,761 64,865,272 63,837,292 Dilutive effect of: Stock options — — — — Performance and restricted stock — — — — Shares used for determining diluted earnings per share of common stock 65,226,344 63,898,761 64,865,272 63,837,292 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share included (not in thousands): Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Stock options 46,882 78,660 46,882 78,660 Performance and restricted stock 3,302,332 3,372,498 3,302,332 3,372,498 Total anti-dilutive instruments 3,349,214 3,451,158 3,349,214 3,451,158 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense was as follows: Three Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Stock-based compensation expense $ 1,893 $ 4,470 $ 3,371 $ 6,728 |
Summary of Activity for Incentive Stock Awards | The following table summarizes the 2023 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 — — 972,307 5.32 305,764 9.09 Forfeited — — (28,363) 5.95 (5,433) 4.73 Exercised or settled — — (709,800) 5.49 (886,649) 5.95 Expired or cancelled (30,885) 43.35 — — — — Outstanding at July 1, 2023 46,882 $ 37.76 1,931,731 $ 6.03 1,370,601 $ 7.83 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jul. 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 of these plans: Pension Postretirement Three Months Ended Three Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Service cost $ 1,224 $ 2,171 $ 299 $ 352 Interest cost 7,237 4,597 348 215 Expected return on plan assets (7,965) (8,379) — — Amortization of prior service cost 184 39 (25) (30) Amortization of (gain) loss (124) 2,473 (54) 15 Pension settlement loss — 1,179 — — Net periodic benefit cost $ 556 $ 2,080 $ 568 $ 552 Pension Postretirement Six Months Ended Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Service cost $ 2,441 $ 4,347 $ 586 $ 705 Interest cost 14,382 9,203 705 431 Expected return on plan assets (15,887) (16,707) — — Amortization of prior service cost 221 78 (49) (61) Amortization of (gain) loss (246) 4,946 (108) 30 Pension settlement loss 2,317 1,179 — — Net periodic benefit cost $ 3,228 $ 3,046 $ 1,134 $ 1,105 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jul. 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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 High Purity Cellulose Cellulose Specialties $ 179,265 $ 218,440 $ 405,930 $ 401,994 Commodity Products 98,674 59,758 222,714 130,513 Other sales (a) 21,430 24,343 44,919 50,979 Total High Purity Cellulose 299,369 302,541 673,563 583,486 Paperboard 48,094 63,236 107,088 117,473 High-Yield Pulp 44,144 40,287 86,004 62,428 Eliminations (6,194) (6,844) (14,481) (12,451) Net sales $ 385,413 $ 399,220 $ 852,174 $ 750,936 —————————————— (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 Six Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 High Purity Cellulose $ (422) $ 6,489 $ 12,512 $ (1,315) Paperboard 5,858 10,447 15,592 16,286 High-Yield Pulp 836 (1,365) 8,092 (1,736) Corporate (12,728) (18,468) (26,058) (31,925) Operating income (loss) $ (6,456) $ (2,897) $ 10,138 $ (18,690) |
Reconciliation of Identifiable Assets | Identifiable assets by segment were as follows: July 1, 2023 December 31, 2022 High Purity Cellulose $ 1,570,974 $ 1,654,214 Paperboard 111,554 112,757 High-Yield Pulp 42,103 50,947 Corporate 581,371 529,610 Total assets $ 2,306,002 $ 2,347,528 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jul. 20, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | Jul. 26, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||||||
Duties receivable | $ 38,000,000 | $ 38,000,000 | ||||||
Lumber and Newsprint Facilities | Discontinued Operations, Disposed of by Sale | ||||||||
Subsequent Event [Line Items] | ||||||||
Pre-tax gain | (1,533,000) | $ 1,953,000 | (1,533,000) | $ 1,495,000 | ||||
Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Duties receivable | $ 40,000,000 | |||||||
Forecast | Lumber and Newsprint Facilities | Discontinued Operations, Disposed of by Sale | ||||||||
Subsequent Event [Line Items] | ||||||||
Pre-tax gain | 2,000,000 | |||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Canadian softwood lumber export, combined rate | 8% | |||||||
2027 Term Loan | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Net proceeds | $ 243,000,000 | |||||||
2027 Term Loan | Secured Debt | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate principal amount | $ 250,000,000 | |||||||
Quarterly payment requirement, percent | 0.50% | |||||||
2027 Term Loan | Secured Debt | Subsequent Event | SOFR | ||||||||
Subsequent Event [Line Items] | ||||||||
Alternative base rate | 3% | |||||||
Basis spread | 8% | |||||||
5.50% Senior Unsecured Notes due 2024 | Senior Notes | ||||||||
Subsequent Event [Line Items] | ||||||||
Long-term debt, gross | $ 317,675,000 | $ 317,675,000 | $ 322,675,000 | |||||
5.50% Senior Unsecured Notes due 2024 | Senior Notes | Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Loss on debt extinguishment | $ 1,000,000 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 28, 2021 | Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Duties receivable | $ 38,000 | $ 38,000 | |||
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 | $ 232,000 | ||||
Equity interests to be received (in shares) | 28.7 | ||||
Equity interests to be received | $ 42,000 | ||||
Rights to duty refunds | 112,000 | 112,000 | |||
Selling, general and administrative and other operating income (expense) | $ 1,533 | $ (1,953) | $ 1,533 | $ (1,495) | |
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 | $ 43,000 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - Lumber and Newsprint Facilities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cost of sales | $ 0 | $ 326 | $ 0 | $ 153 |
Gross margin | 0 | 326 | 0 | 153 |
Selling, general and administrative and other operating income (expense) | (1,533) | 1,953 | (1,533) | 1,495 |
Operating income (loss) | (1,533) | 2,279 | (1,533) | 1,648 |
Other non-operating expense | 0 | (4) | 0 | (9) |
Income (loss) from discontinued operations before income taxes | (1,533) | 2,275 | (1,533) | 1,639 |
Income tax (expense) benefit | 405 | (599) | 405 | (434) |
Income (loss) from discontinued operations, net of taxes | $ (1,128) | $ 1,676 | $ (1,128) | $ 1,205 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit loss | $ (507) | $ (1,064) |
Accounts receivable, net | 177,465 | 211,526 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | 145,045 | 171,144 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | $ 32,927 | $ 41,446 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 156,469 | $ 198,931 |
Work-in-progress | 5,023 | 5,230 |
Raw materials | 50,637 | 52,967 |
Manufacturing and maintenance supplies | 7,184 | 8,206 |
Inventory | $ 219,313 | $ 265,334 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 6 Months Ended |
Jul. 01, 2023 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 13 years 3 months 18 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,791 | $ 1,917 | $ 3,485 | $ 3,848 |
Finance lease cost | ||||
Amortization of ROU assets | 100 | 94 | 199 | 185 |
Interest | 29 | 35 | 59 | 72 |
Total lease cost | $ 1,920 | $ 2,046 | $ 3,743 | $ 4,105 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Operating leases | ||
ROU assets | $ 16,207 | $ 15,623 |
Lease liabilities, current | 4,465 | 4,741 |
Lease liabilities, non-current | $ 12,573 | $ 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 | $ 1,263 | $ 1,448 |
Lease liabilities | $ 1,561 | $ 1,760 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment (net of accumulated depreciation of $1,769,179 and $1,721,898, respectively) | Property, plant and equipment (net of accumulated depreciation of $1,769,179 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 | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities | $ 1,701 | $ 1,879 | |
Operating lease ROU assets obtained in exchange for lease liabilities | $ 1,946 | $ 59 | |
Operating leases | |||
Weighted average remaining lease term (in years) | 5 years 9 months 18 days | 5 years 9 months 18 days | |
Weighted average discount rate | 8.70% | 8.90% | |
Finance leases | |||
Weighted average remaining lease term (in years) | 3 years 3 months 18 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 | Jul. 01, 2023 USD ($) | Jul. 01, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) |
Payables and Accruals [Abstract] | ||||
Accrued customer incentives | $ 26,063 | $ 28,702 | ||
Accrued payroll and benefits | 14,898 | 13,763 | ||
Accrued interest | 17,294 | 18,877 | ||
Accrued income taxes | 2,914 | 9,321 | ||
Accrued property and other taxes | 6,561 | 3,065 | ||
Deferred revenue | 21,080 | 21,645 | ||
Other current liabilities | 49,763 | 68,996 | ||
Accrued and other current liabilities | 138,573 | 164,369 | ||
CEWS applied for | 19,000 | $ 25 | 19,000 | $ 25 |
Accrued energy payable | $ 17,000 | $ 30,000 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 1,561 | $ 1,760 |
Total principal payments due | 839,260 | 859,391 |
Less: unamortized debt premium, discount and issuance costs | (4,931) | (6,266) |
Total debt | 834,329 | 853,125 |
Less: debt due within one year | (81,525) | (14,617) |
Long-term debt | 752,804 | 838,508 |
Short-term factoring facility-France | Line of credit | ||
Debt Instrument [Line Items] | ||
Short-term debt, gross | 2,337 | 3,773 |
Line of credit | ABL Credit Facility due 2025: $109 million available, bearing interest of 7.42% (5.17% adjusted SOFR plus 2.25% margin) at July 1, 2023 | ||
Debt Instrument [Line Items] | ||
Borrowing capacity available | $ 109,000 | |
Interest rate | 7.42% | |
Long-term debt, gross | $ 0 | 0 |
Line of credit | ABL Credit Facility due 2025: $109 million available, bearing interest of 7.42% (5.17% adjusted SOFR plus 2.25% margin) at July 1, 2023 | SOFR | ||
Debt Instrument [Line Items] | ||
Variable rate | 5.17% | |
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 | $ 464,640 | 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 | $ 33,315 | 36,585 |
Loans | Other loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 19,732 | $ 19,598 |
Debt and Finance Leases - Narra
Debt and Finance Leases - Narrative (Details) - Senior Notes - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2023 | Mar. 31, 2023 | |
7.625% Senior Secured Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, repurchased face amount | $ 10 | |
Cash repayments of senior notes | 9 | |
Gain on debt extinguishment | $ 1 | |
5.50% Senior Unsecured Notes due 2024 | ||
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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Jul. 01, 2023 | Jun. 25, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Remainder of 2023 | $ 75,059 | |||
2024 | 261,438 | |||
2025 | 11,424 | |||
2026 | 475,432 | |||
2027 | 8,645 | |||
Thereafter | 5,701 | |||
Total debt principal payments | 837,699 | |||
Cash repayment of long-term debt | 20,305 | $ 25,215 | ||
Senior Notes | 5.50% Senior Unsecured Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 317,675 | $ 322,675 | ||
Senior Notes | 5.50% Senior Unsecured Notes due 2024 | Forecast | ||||
Debt Instrument [Line Items] | ||||
Cash repayment of long-term debt | $ 68,000 | |||
Repayments of long-term debt, proceeds from new issuance | $ 250,000 |
Environmental Liabilities (Deta
Environmental Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Dec. 31, 2022 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Accrual for Environmental Loss Contingencies, Beginning Balance | $ 170,681 | |
Increase in liabilities | 1,664 | |
Payments | (2,645) | |
Foreign currency adjustments | 157 | |
Balance at July 1, 2023 | 169,857 | |
Less: current portion | (10,754) | $ (10,732) |
Non-current environmental liabilities | $ 159,103 | $ 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 | Jul. 01, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Liabilities: | ||
Fixed-rate long-term debt | $ 830,431 | $ 847,591 |
Carrying Amount | Cash | ||
Assets: | ||
Cash and cash equivalents | 86,891 | 127,288 |
Carrying Amount | Money market and similar funds | ||
Assets: | ||
Cash and cash equivalents | 69,969 | 24,515 |
Fair Value | Level 1 | ||
Liabilities: | ||
Fixed-rate long-term debt | 0 | 0 |
Fair Value | Level 1 | Cash | ||
Assets: | ||
Cash and cash equivalents | 86,891 | 127,288 |
Fair Value | Level 1 | Money market and similar funds | ||
Assets: | ||
Cash and cash equivalents | 69,969 | 24,515 |
Fair Value | Level 2 | ||
Liabilities: | ||
Fixed-rate long-term debt | 769,672 | 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 | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 831,429,000 | $ 787,193,000 | $ 829,313,000 | $ 814,343,000 |
Total other comprehensive income (loss) | (2,301,000) | (7,557,000) | 1,839,000 | (11,811,000) |
Ending balance | 814,017,000 | 760,839,000 | 814,017,000 | 760,839,000 |
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) | ||
Other comprehensive loss before reclassifications | (3,034,000) | 0 | ||
Income tax on other comprehensive loss | 804,000 | 0 | ||
Income tax on reclassifications | 45,000 | (1,097,000) | ||
Total other comprehensive income (loss) | (2,367,000) | 3,896,000 | ||
Ending balance | (46,061,000) | (72,953,000) | (46,061,000) | (72,953,000) |
Amortization of (gain) loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | (354,000) | 4,976,000 | ||
Amortization of prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassifications to earnings | 172,000 | 17,000 | ||
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 | 119,000 | 181,000 | ||
Income tax on reclassifications | (16,000) | (24,000) | ||
Total other comprehensive income (loss) | 103,000 | 157,000 | ||
Ending balance | (464,000) | (690,000) | (464,000) | (690,000) |
Foreign currency translation | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (19,537,000) | (6,774,000) | ||
Total other comprehensive income (loss) | 4,103,000 | (15,864,000) | ||
Ending balance | (15,434,000) | (22,638,000) | (15,434,000) | (22,638,000) |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (59,658,000) | (88,724,000) | (63,798,000) | (84,470,000) |
Total other comprehensive income (loss) | (2,301,000) | (7,557,000) | 1,839,000 | (11,811,000) |
Ending balance | $ (61,959,000) | $ (96,281,000) | $ (61,959,000) | $ (96,281,000) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jul. 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 | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Earnings Per Share [Abstract] | ||||
Loss from continuing operations | $ (15,622) | $ (24,943) | $ (14,015) | $ (49,323) |
Income (loss) from discontinued operations | (1,128) | 1,676 | (1,128) | 1,205 |
Net loss available for common stockholders (Basic) | (16,750) | (23,267) | (15,143) | (48,118) |
Net loss available for common stockholders (Diluted) | $ (16,750) | $ (23,267) | $ (15,143) | $ (48,118) |
Shares used for determining basic earnings per share of common stock (in shares) | 65,226,344 | 63,898,761 | 64,865,272 | 63,837,292 |
Dilutive effect of: | ||||
Stock options (in shares) | 0 | 0 | 0 | 0 |
Performance and restricted stock (in shares) | 0 | 0 | 0 | 0 |
Shares used for determining diluted earnings per share of common stock (in shares) | 65,226,344 | 63,898,761 | 64,865,272 | 63,837,292 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Anti-dilutive Securities Excluded from Computation (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive instruments (in shares) | 3,349,214 | 3,451,158 | 3,349,214 | 3,451,158 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive instruments (in shares) | 46,882 | 78,660 | 46,882 | 78,660 |
Performance and restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive instruments (in shares) | 3,302,332 | 3,372,498 | 3,302,332 | 3,372,498 |
Incentive Stock Plans - Stock-b
Incentive Stock Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1,893 | $ 4,470 | $ 3,371 | $ 6,728 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Jul. 01, 2023 | |
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) | 6 Months Ended |
Jul. 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 | 972,307 |
Forfeited (in shares) | shares | (28,363) |
Exercised or settled (in shares) | shares | (709,800) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,931,731 |
Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 6.21 |
Granted (in dollars per share) | $ / shares | 5.32 |
Forfeited (in dollars per share) | $ / shares | 5.95 |
Exercised or settled (in dollars per share) | $ / shares | 5.49 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 6.03 |
Performance-Based Stock Units | |
Awards | |
Beginning Balance (in shares) | shares | 1,956,919 |
Granted (in shares) | shares | 305,764 |
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 | 1,370,601 |
Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 6.79 |
Granted (in dollars per share) | $ / shares | 9.09 |
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 | $ 7.83 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | |
Pension | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | $ 1,224 | $ 2,171 | $ 2,441 | $ 4,347 |
Interest cost | 7,237 | 4,597 | 14,382 | 9,203 |
Expected return on plan assets | (7,965) | (8,379) | (15,887) | (16,707) |
Amortization of prior service cost | 184 | 39 | 221 | 78 |
Amortization of (gain) loss | (124) | 2,473 | (246) | 4,946 |
Pension settlement loss | 0 | 1,179 | 2,317 | 1,179 |
Net periodic benefit cost | 556 | 2,080 | 3,228 | 3,046 |
Pension | Canada | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Pension settlement loss | 1,000 | 2,000 | 1,000 | |
Postretirement | ||||
Defined Benefit Plans Disclosure [Line Items] | ||||
Service cost | 299 | 352 | 586 | 705 |
Interest cost | 348 | 215 | 705 | 431 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (25) | (30) | (49) | (61) |
Amortization of (gain) loss | (54) | 15 | (108) | 30 |
Pension settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 568 | $ 552 | $ 1,134 | $ 1,105 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||||
Effective rate (percentage) | 18% | (18.00%) | 32% | (12.00%) | |
Federal | Disallowed Interest Deductions | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax assets | $ 18,000,000 | $ 18,000,000 | $ 17,000,000 | ||
Deferred tax asset, valuation allowance | $ 0 | $ 0 | $ 0 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 25, 2022 | Jul. 01, 2023 | Jun. 25, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 385,413 | $ 399,220 | $ 852,174 | $ 750,936 | |
Operating income (loss) | (6,456) | (2,897) | 10,138 | (18,690) | |
Total assets | 2,306,002 | 2,306,002 | $ 2,347,528 | ||
Operating Segments | High Purity Cellulose | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 299,369 | 302,541 | 673,563 | 583,486 | |
Operating income (loss) | (422) | 6,489 | 12,512 | (1,315) | |
Total assets | 1,570,974 | 1,570,974 | 1,654,214 | ||
Operating Segments | High Purity Cellulose | Cellulose Specialties | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 179,265 | 218,440 | 405,930 | 401,994 | |
Operating Segments | High Purity Cellulose | Commodity Products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 98,674 | 59,758 | 222,714 | 130,513 | |
Operating Segments | High Purity Cellulose | Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 21,430 | 24,343 | 44,919 | 50,979 | |
Operating Segments | Paperboard | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 48,094 | 63,236 | 107,088 | 117,473 | |
Operating income (loss) | 5,858 | 10,447 | 15,592 | 16,286 | |
Total assets | 111,554 | 111,554 | 112,757 | ||
Operating Segments | High-Yield Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 44,144 | 40,287 | 86,004 | 62,428 | |
Operating income (loss) | 836 | (1,365) | 8,092 | (1,736) | |
Total assets | 42,103 | 42,103 | 50,947 | ||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (6,194) | (6,844) | (14,481) | (12,451) | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (12,728) | $ (18,468) | (26,058) | $ (31,925) | |
Total assets | $ 581,371 | $ 581,371 | $ 529,610 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 01, 2023 USD ($) mill | Sep. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) mill | Jun. 25, 2022 USD ($) | Jul. 01, 2023 USD ($) mill | Jun. 25, 2022 USD ($) | Jul. 26, 2023 | Dec. 31, 2022 employee | |
Guarantor Obligations [Line Items] | ||||||||
Number of lumber mills | mill | 6 | 6 | 6 | |||||
Duties receivable | $ 38,000 | $ 38,000 | $ 38,000 | |||||
Number of unionized employees, covered under expired contract | employee | 575 | |||||||
Forecast | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Duties receivable | $ 40,000 | |||||||
Subsequent Event | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Canadian softwood lumber export, combined rate | 8% | |||||||
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Rights to duty refunds | 112,000 | 112,000 | 112,000 | |||||
Ancillary fees | 1,000 | 1,000 | 1,000 | |||||
Interest earned | $ 6,000 | |||||||
Pre-tax gain | $ (1,533) | $ 1,953 | $ (1,533) | $ 1,495 | ||||
Discontinued Operations, Disposed of by Sale | Lumber and Newsprint Facilities | Forecast | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Pre-tax gain | $ 2,000 | |||||||
LignoTech Florida | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Ownership percentage | 45% | 45% | 45% | |||||
Borregaard ASA | LignoTech Florida | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Ownership percentage | 55% | 55% | 55% | |||||
Financial Standby Letter of Credit | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Letters of credit | $ 34,000 | $ 34,000 | $ 34,000 | |||||
Surety Bond | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Guarantees | 86,000 | 86,000 | 86,000 | |||||
Contract Guarantee | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Guarantees | $ 31,000 | $ 31,000 | $ 31,000 |