Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TREDEGAR CORP | |
Entity Central Index Key | 850,429 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,779,606 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 40,022 | $ 44,156 |
Accounts and other receivables, net of allowance for doubtful accounts and sales returns of $3,076 in 2016 and $3,746 in 2015 | 98,717 | 94,217 |
Income Taxes Receivable, Current | 360 | |
Inventories | 65,517 | 65,325 |
Prepaid expenses and other | 7,282 | 6,946 |
Total current assets | 211,538 | 211,004 |
Property, plant and equipment, at cost | 775,517 | 754,678 |
Less accumulated depreciation | (535,377) | (523,363) |
Net property, plant and equipment | 240,140 | 231,315 |
Intangible Assets, Net (Including Goodwill) | 153,284 | 153,072 |
Other assets and deferred charges | 30,801 | 27,869 |
Total assets | 635,763 | 623,260 |
Current liabilities: | ||
Accounts payable | 73,603 | 84,148 |
Accrued expenses | 32,997 | 33,653 |
Income taxes payable | 1,493 | |
Total current liabilities | 108,093 | 117,801 |
Long-term debt | 107,000 | 104,000 |
Deferred income taxes | 21,649 | 18,656 |
Other noncurrent liabilities | 107,552 | 110,055 |
Total liabilities | $ 344,294 | $ 350,512 |
Commitments and contingencies (Notes 1 and 12) | ||
Shareholders’ equity: | ||
Common stock, no par value (issued and outstanding - 32,779,606 at March 31, 2016 and 32,682,162 at December 31, 2015) | $ 29,190 | $ 29,467 |
Common stock held in trust for savings restoration plan (68,268 shares at March 31, 2016 and 67,726 shares at December 31, 2015) | (1,474) | (1,467) |
Foreign currency translation adjustment | (100,228) | (112,807) |
Loss on derivative financial instruments | (111) | (373) |
Pension and other post-retirement benefit adjustments | (93,057) | (95,539) |
Retained earnings | 457,149 | 453,467 |
Total shareholders’ equity | 291,469 | 272,748 |
Total liabilities and shareholders’ equity | $ 635,763 | $ 623,260 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts and other receivables, allowance for doubtful accounts and sales returns | $ 3,076 | $ 3,746 |
Common stock, no par value | ||
Common stock, shares issued | 32,779,606 | 32,682,162 |
Common stock, shares outstanding | 32,779,606 | 32,682,162 |
Common Stock, Shares Held in Employee Trust, Shares | 68,268 | 67,726 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues and other items: | ||
Sales | $ 207,333 | $ 234,171 |
Other income (expense), net | 770 | 108 |
Total revenues, net of other expenses | 208,103 | 234,279 |
Costs and expenses: | ||
Cost of goods sold | 163,053 | 189,431 |
Freight | 7,001 | 7,325 |
Selling, general and administrative | 19,862 | 17,073 |
Research and development | 4,977 | 3,885 |
Amortization of intangibles | 956 | 1,083 |
Interest expense | 1,085 | 885 |
Asset impairments and costs associated with exit and disposal activities, net of adjustments | 672 | (52) |
Total | 197,606 | 219,630 |
Income before income taxes | 10,497 | 14,649 |
Income taxes from continuing operations | 3,216 | 4,779 |
Net income | $ 7,281 | $ 9,870 |
Basic | ||
Basic | $ 0.22 | $ 0.30 |
Diluted | ||
Diluted | $ 0.22 | $ 0.30 |
Shares used to compute earnings per share: | ||
Basic | 32,654 | 32,482 |
Diluted | 32,654 | 32,628 |
Dividends per share | $ 0.11 | $ 0.09 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,281 | $ 9,870 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 12,579 | (34,653) |
Derivative financial instruments adjustment | 262 | (662) |
Amortization of prior service costs and net gains or losses | 2,482 | 2,522 |
Other comprehensive income (loss) | 15,323 | (32,793) |
Comprehensive income (loss) | $ 22,604 | $ (22,923) |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax (benefit) | $ 40 | $ (1,609) |
Derivative financial instruments adjustment, tax (benefit) | 156 | (399) |
Amortization of prior service costs and net gains or losses, tax | $ 855 | $ 1,462 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 7,281 | $ 9,870 |
Adjustments for noncash items: | ||
Depreciation | 6,952 | 8,129 |
Amortization of intangibles | 956 | 1,083 |
Deferred income taxes | 306 | (2,419) |
Accrued pension and post-retirement benefits | 2,891 | 3,129 |
Gain on investment accounted for under the fair value method | (800) | 0 |
Loss on asset impairments and divestitures | 256 | 0 |
Changes in assets and liabilities, net of effects of acquisitions and divestitures: | ||
Accounts and other receivables | (2,489) | (14,782) |
Inventories | 1,535 | (3,334) |
Income taxes recoverable/payable | 1,937 | 6,110 |
Prepaid expenses and other | (824) | (1,035) |
Accounts payable and accrued expenses | (13,585) | 4,251 |
Other, net | 183 | 1,351 |
Net cash provided by operating activities | 4,599 | 12,353 |
Cash flows from investing activities: | ||
Capital expenditures | (7,974) | (7,817) |
Proceeds from the sale of assets and other | 676 | 504 |
Net cash used in investing activities | (7,298) | (7,313) |
Cash flows from financing activities: | ||
Borrowings | 17,250 | 34,250 |
Debt principal payments and financing costs | (14,250) | (30,500) |
Dividends paid | (3,606) | (2,939) |
Payments of Debt Issuance Costs | (2,450) | (78) |
Proceeds from exercise of stock options and other | 0 | 2,134 |
Net cash used in financing activities | (3,056) | 2,867 |
Effect of exchange rate changes on cash | 1,621 | (2,808) |
Increase (decrease) in cash and cash equivalents | (4,134) | 5,099 |
Cash and cash equivalents at beginning of period | 44,156 | 50,056 |
Cash and cash equivalents at end of period | $ 40,022 | $ 55,155 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Trust for Savings Restoration Plan | Foreign Currency Translation | Gain (Loss) on Derivative Financial Instruments | Pension & Other Post-retirement Benefit Adjust. |
Beginning Balance at Dec. 31, 2015 | $ 272,748 | $ 29,467 | $ 453,467 | $ (1,467) | $ (112,807) | $ (373) | $ (95,539) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,281 | 7,281 | |||||
Foreign currency translation adjustment (net of tax of $40) | 12,579 | 12,579 | |||||
Derivative financial instruments adjustment (net of tax of $156) | 262 | 262 | |||||
Amortization of prior service costs and net gains or losses (net of tax of $855) | 2,482 | 2,482 | |||||
Cash dividends declared ($0.11 per share) | (3,606) | (3,606) | |||||
Stock-based compensation expense | 297 | 297 | |||||
Tredegar common stock purchased by trust for savings restoration plan | 7 | (7) | |||||
Ending Balance at Mar. 31, 2016 | $ 291,469 | $ 29,190 | $ 457,149 | $ (1,474) | $ (100,228) | $ (111) | $ (93,057) |
Consolidated Statements Of Sha9
Consolidated Statements Of Shareholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Foreign currency translation adjustment, tax (benefit) | $ 40 |
Derivative financial instruments adjustment, tax (benefit) | 156 |
Amortization of prior service costs and net gains or losses, tax | $ 855 |
Cash dividends declared, per share | $ / shares | $ 0.11 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | In the opinion of management, the accompanying consolidated financial statements of Tredegar Corporation and its subsidiaries (“Tredegar,” “the Company,” “we,” “us” or “our”) contain all adjustments necessary to state fairly, in all material respects, Tredegar’s consolidated financial position as of March 31, 2016 , the consolidated results of operations for the three months ended March 31, 2016 and 2015 , the consolidated cash flows for the three months ended March 31, 2016 and 2015 , and the consolidated changes in shareholders’ equity for the three months ended March 31, 2016 . All such adjustments, unless otherwise detailed in the notes to the consolidated interim financial statements, are deemed to be of a normal, recurring nature. The financial position data as of December 31, 2015 that is included herein was derived from the audited consolidated financial statements provided in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2015 (“ 2015 Form 10-K”) but does not include all disclosures required by United States generally accepted accounting principles (“U.S. GAAP ”) . These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2015 Form 10-K. The results of operations for the three months ended March 31, 2016 , are not necessarily indicative of the results to be expected for the full year. |
Plants Shutdowns, Asset Impairm
Plants Shutdowns, Asset Impairments, Restructurings And Other | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Charges [Abstract] | |
Plant Shutdowns, Asset Impairments, Restructurings And Other | Plant shutdowns, asset impairments, restructurings and other charges are shown in the net sales and operating profit by segment table in Note 9, and unless otherwise noted below, are also included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income. Plant shutdowns, asset impairments, restructurings and other charges in the first quarter of 2016 include: • Pretax charges of $1.1 million associated with the consolidation of domestic PE Films’ manufacturing facilities, which includes severance and other employee-related costs of $0.3 million , asset impairments of $0.2 million , accelerated depreciation of $0.1 million (included in “Cost of goods sold” in the consolidated statements of income) and other facility consolidation-related expenses of $0.5 million ( $0.4 million is included in “Cost of goods sold” in the consolidated statements of income); • Pretax charges of $0.4 million associated with a non-recurring business development project (included in “Selling, general and administrative expense” in the consolidated statement of income and “Corporate expenses, net” in the statement of net sales and operating profit by segment); • Pretax charges of $8,000 for severance and other employee-related costs associated with restructurings in PE Films; and • Pretax charges of $7,000 associated with the shutdown of the aluminum extrusions manufacturing facility in Kentland, Indiana. Plant shutdowns, asset impairments, restructurings and other charges in the first quarter of 2015 include: • Pretax adjustment of $0.1 million to reverse previously accrued severance and other employee-related costs associated with restructurings in PE Films. • Pretax charges of $15,000 associated with the shutdown of the aluminum extrusions manufacturing facility in Kentland, Indiana. Results in the first quarter 2016 include an unrealized gain on the Company’s investment in kaleo, Inc (“kaléo”), which is accounted for under the fair value method (included in “Other income (expense), net” in the consolidated statements of income), of $0.8 million ( $0.6 million after taxes) (none in 2015). See Note 6 for additional information on investments. A reconciliation of the beginning and ending balances of accrued expenses associated with “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income for the three months ended March 31, 2016 is as follows: (In Thousands) Severance Asset Impairments Other (a) Total Balance at January 1, 2016 $ 1,462 $ — $ 405 $ 1,867 Changes in 2016: Charges 294 256 592 1,142 Cash spent (482 ) — (619 ) (1,101 ) Charges against assets — (256 ) — (256 ) Balance at March 31, 2016 $ 1,274 $ — $ 378 $ 1,652 (a) Other includes other facility consolidation-related costs associated with the consolidation of North American PE Films manufacturing facilities and other shutdown-related costs associated with the shutdown of the Company’s aluminum extrusions manufacturing facility in Kentland, Indiana. On July 7, 2015, the Company announced its intention to consolidate its domestic production for PE Films by restructuring the operations in its manufacturing facility in Lake Zurich, Illinois. Efforts to transition domestic production from the Lake Zurich manufacturing facility will require various machinery upgrades and equipment transfers to its other manufacturing facilities. Given PE Films’ focus on maintaining product quality and customer satisfaction, the Company anticipates that these activities will be completed in the middle of 2017. Total pre-tax cash expenditures associated with restructuring the Lake Zurich manufacturing facility are expected to be approximately $16-17 million over this period, and once complete, annual pre-tax cash cost savings are expected to be approximately $5-6 million. The Company expects to recognize costs associated with the exit and disposal activities of approximately $5-6 million over the project period. Exit and disposal costs include severance charges and other employee-related expenses arising from the termination of employees of approximately $2-3 million and equipment transfers and other facility consolidation-related costs of approximately $2 million . During the same period of time, operating expenses will include the acceleration of approximately $3 million of non-cash depreciation expense for certain machinery and equipment at the Lake Zurich manufacturing facility. Total expenses associated with the North American facility consolidation project were $1.1 million in the first quarter of 2016 ( $0.7 million included in “Asset impairments and costs associated with exit and disposal activities” and $0.4 million included in “Cost of goods sold” in the consolidated statement of income). Total expenses since the inception of the project were $3.3 million . Total estimated cash expenditures of $16-17 million over the project period include the following: • Cash outlays associated with previously discussed exit and disposal expenses of approximately $5 million ; • Capital expenditures associated with equipment upgrades at other PE Films manufacturing facilities in the U.S. of approximately $11 million ; • Cash incentives of approximately $1 million in connection with meeting safety and quality standards while production ramps down at the Lake Zurich manufacturing facility; and • Additional operating expenses of approximately $1 million associated with customer product qualifications on upgraded and transferred production lines. Cash expenditures for the North American facility consolidation project were $2.2 million in the first quarter of 2016 , which includes $1.7 million for capital expenditures. Total cash expenditures since the inception of the project were $5.3 million , which includes $4.2 million for capital expenditures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories | The components of inventories are as follows: March 31, December 31, (In Thousands) 2016 2015 Finished goods $ 14,679 $ 13,935 Work-in-process 10,173 9,249 Raw materials 20,338 22,149 Stores, supplies and other 20,327 19,992 Total $ 65,517 $ 65,325 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average common and potentially dilutive common equivalent shares outstanding, determined as follows: Three Months Ended March 31, (In Thousands) 2016 2015 Weighted average shares outstanding used to compute basic earnings per share 32,654 32,482 Incremental dilutive shares attributable to stock options and restricted stock — 146 Shares used to compute diluted earnings per share 32,654 32,628 Incremental shares attributable to stock options and restricted stock are computed under the treasury stock method using the average market price during the related period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2016 : (In Thousands) Foreign currency translation adjustment Gain (loss) on derivative financial instruments Pension and other post-retirement benefit adjustments Total Beginning balance, January 1, 2016 $ (112,807 ) $ (373 ) $ (95,539 ) $ (208,719 ) Other comprehensive income (loss) before reclassifications 12,579 (342 ) — 12,237 Amounts reclassified from accumulated other comprehensive income (loss) — 604 2,482 3,086 Net other comprehensive income (loss) - current period 12,579 262 2,482 15,323 Ending balance, March 31, 2016 $ (100,228 ) $ (111 ) $ (93,057 ) $ (193,396 ) The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2015 : (In Thousands) Foreign Gain (loss) on Pension and Total Beginning balance, January 1, 2015 $ (47,270 ) $ 656 $ (103,581 ) $ (150,195 ) Other comprehensive income (loss) before reclassifications (34,653 ) (682 ) — (35,335 ) Amounts reclassified from accumulated other comprehensive income (loss) — 20 2,522 2,542 Net other comprehensive income (loss) - current period (34,653 ) (662 ) 2,522 (32,793 ) Ending balance, March 31, 2015 $ (81,923 ) $ (6 ) $ (101,059 ) $ (182,988 ) Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the three months ended March 31, 2016 are summarized as follows: (In Thousands) Amount Location of gain Gain (loss) on derivative financial instruments: Aluminum future contracts, before taxes $ (984 ) Cost of sales Foreign currency forward contracts, before taxes 15 Cost of sales Total, before taxes (969 ) Income tax expense (benefit) (365 ) Income taxes Total, net of tax $ (604 ) Amortization of pension and other post-retirement benefits: Actuarial gain (loss) and prior service costs, before taxes $ (3,337 ) (a) Income tax expense (benefit) (855 ) Income taxes Total, net of tax $ (2,482 ) (a) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost (see Note 8 for additional detail). Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the three months ended March 31, 2015 are summarized as follows: (In Thousands) Amount Location of gain Gain (loss) on derivative financial instruments: Aluminum future contracts, before taxes $ (48 ) Cost of sales Foreign currency forward contracts, before taxes 15 Cost of sales Total, before taxes (33 ) Income tax expense (benefit) (13 ) Income taxes Total, net of tax $ (20 ) Amortization of pension and other post-retirement benefits: Actuarial gain (loss) and prior service costs, before taxes $ (3,984 ) (a) Income tax expense (benefit) (1,462 ) Income taxes Total, net of tax $ (2,522 ) (a) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost (see Note 8 for additional detail). |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | In August 2007 and December 2008, the Company made an aggregate investment of $7.5 million in kaléo, a privately held specialty pharmaceutical company dedicated to building innovative solutions for serious and life-threatening medical conditions. The mission of kaléo is to provide products that empower patients to confidently take control of their medical conditions. Tredegar’s ownership interest on a fully diluted basis was approximately 19% at March 31, 2016 , and the investment is accounted for under the fair value method. At the time of the initial investment, the Company elected the fair value option over the equity method of accounting since its investment objectives were similar to those of venture capitalists, which typically do not have controlling financial interests. The estimated fair value of the investment in kaléo (also the carrying value, which is included in “Other assets and deferred charges” in the consolidated balance sheets) was $19.4 million at March 31, 2016 and $18.6 million at December 31, 2015 . In 2009, kaléo licensed exclusive rights to sanofi-aventis U.S. LLC (“Sanofi”) to commercialize an epinephrine auto-injector in the U.S. and Canada. Sanofi began manufacturing and distributing the epinephrine auto-injector, under the names Auvi-Q ® in the U.S. and Allerject ® in Canada, in 2013. Sanofi announced on October 28, 2015, a voluntary recall of all Auvi-Q and Allerject epinephrine injectors that were on the market. An unrealized gain of $0.8 million was recognized in the first quarter of 2016 (no unrealized gain (loss) in the first quarter of 2015 ). The change in the estimated fair value of the Company’s holding in kaléo in the first quarter of 2016 was primarily associated with the negotiated terms of the termination of Sanofi’s exclusive rights license for Auvi-Q and Allerject in North America and the return of such rights to kaléo. Unrealized gains (losses) associated with this investment are included in “Other income (expense), net” in the consolidated statements of income and separately stated in the segment operating profit table in Note 9. Subsequent to its most recent investment (December 15, 2008), and until the next round of financing, the Company believes fair value estimates are based upon Level 3 inputs since there is no secondary market for its ownership interest. Accordingly, until the next round of financing or any other significant financial transaction, value estimates will primarily be based on assumptions relating to achieving product development and commercialization milestones, cash flow projections (projections of sales, costs, expenses, capital expenditures and working capital investment) and discounting of these factors for their high degree of risk. If kaléo does not meet its development and commercialization milestones or there are indications that the amount or timing of its projected cash flows or related risks are unfavorable versus the most recent valuation, or a new round of financing or other significant financial transaction indicates a lower enterprise value, then the Company’s estimate of the fair value of its ownership interest in kaléo is likely to decline. Adjustments to the estimated fair value of this investment will be made in the period upon which such changes can be quantified. In addition to the impact on valuation of the possible changes in assumptions, Level 3 inputs and projections from changes in business conditions, the fair market valuation of the Company’s interest in kaléo is sensitive to changes in the weighted average cost of capital used to discount cash flow projections for the high degree of risk associated with meeting development and commercialization milestones as anticipated. The weighted average cost of capital used in the fair market valuation of Tredegar’s interest in kaléo was 45% at both March 31, 2016 and December 31, 2015 . At March 31, 2016 , the effect of a 500 basis point decrease in the weighted average cost of capital assumption would have increased the fair value of the Company’s interest in kaléo by approximately $5 million , and a 500 basis point increase in the weighted average cost of capital assumption would have decreased the fair value of the Company’s interest by approximately $4 million . Had the Company not elected to account for its investment under the fair value method, it would have been required to use the equity method of accounting. The condensed balance sheets for kaléo at March 31, 2016 and December 31, 2015 and condensed statements of operations for the three months ended March 31, 2016 and 2015 , as reported to the Company by kaléo, are provided below: (In Thousands) March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Assets: Liabilities & Equity: Cash & short-term investments $ 96,431 $ 91,844 Restricted cash 3,748 8,182 Other current assets 19,063 9,070 Other current liabilities $ 33,644 $ 10,261 Property & equipment 15,821 8,453 Other noncurrent liabilities 609 552 Patents 2,867 2,811 Long term debt, net 142,868 142,696 Other long-term assets 114 92 Equity (39,077 ) (33,057 ) Total assets $ 138,044 $ 120,452 Total liabilities & equity $ 138,044 $ 120,452 Three Months Ended March 31, 2016 2015 Revenues & Expenses: Revenues, net (a) $ (3,050 ) $ 4,850 Cost of goods sold (3,622 ) (2,330 ) Expenses and other, net (b) 541 (14,384 ) Income tax benefit (expense) (8 ) (4 ) Net income (loss) $ (6,139 ) $ (11,868 ) (a) Negative revenues during the first quarter of 2016 relate to the impact of product sales allowances on channel inventory following a product price reset during the quarter. (b) “Expenses and other, net” includes selling, general and administrative expense, research and development expense, gain on contract termination, interest expense and other income (expense), net. Excluding the gain, “Expenses and other, net” would have been a net deduction of $17.5 million in the first quarter of 2016. The Company’s investment in the Harbinger Capital Partners Special Situations Fund, L.P. (“Harbinger Fund”) had a carrying value (included in “Other assets and deferred charges”) of $1.7 million at March 31, 2016 and December 31, 2015 . The carrying value at March 31, 2016 reflected Tredegar’s cost basis in its investment in the Harbinger Fund, net of total withdrawal proceeds received and unrealized losses. No withdrawal proceeds were received in the first three months of 2016 or 2015 . The timing and amount of future installments of withdrawal proceeds, which commenced in August 2010, were not known as of March 31, 2016 . Gains on the Company’s investment in the Harbinger Fund will be recognized when the amounts expected to be collected from any withdrawal from the investment are known, which will likely be when cash in excess of the remaining carrying value is received. Losses will be recognized when management believes it is probable that future withdrawal proceeds will not exceed the remaining carrying value. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Financial Instruments | Tredegar uses derivative financial instruments for the purpose of hedging margin exposure from fixed-price forward sales contracts in Aluminum Extrusions and currency exchange rate exposures that exist as part of ongoing business operations (primarily in PE Films). These derivative financial instruments are designated as and qualify as cash flow hedges and are recognized in the consolidated balance sheet at fair value. The fair value of derivative instruments recorded on the consolidated balance sheets are based upon Level 2 inputs. If individual derivative instruments with the same counterparty can be settled on a net basis, the Company records the corresponding derivative fair values as a net asset or net liability. In the normal course of business, Aluminum Extrusions enters into fixed-price forward sales contracts with certain customers for the future sale of fixed quantities of aluminum extrusions at scheduled intervals. In order to hedge margin exposure created from the fixing of future sales prices relative to volatile raw material (aluminum) costs, Aluminum Extrusions enters into a combination of forward purchase commitments and futures contracts to acquire or hedge aluminum, based on the scheduled purchases for the firm sales commitments. The fixed-price firm sales commitments and related hedging instruments generally have durations of not more than 12 months, and the notional amount of aluminum futures contracts that hedged future purchases of aluminum to meet fixed-price forward sales contract obligations was $15.2 million ( 18.1 million pounds of aluminum) at March 31, 2016 and $16.6 million ( 18.9 million pounds of aluminum) at December 31, 2015 . The table below summarizes the location and gross amounts of aluminum futures contract fair values in the consolidated balance sheets as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (In Thousands) Balance Sheet Account Fair Value Balance Sheet Account Fair Value Derivatives Designated as Hedging Instruments Asset derivatives: Accrued expenses $ — Accrued expenses $ 44 Liability derivatives: Accrued expenses $ (1,319 ) Accrued expenses $ (1,797 ) Derivatives Not Designated as Hedging Instruments Asset derivatives: Accrued expenses $ — Accrued expenses $ — Liability derivatives: Accrued expenses $ — Accrued expenses $ — Net asset (liability) $ (1,319 ) $ (1,753 ) In the event that a counterparty to an aluminum fixed-price forward sales contract chooses not to take delivery of its aluminum extrusions, the customer is contractually obligated to compensate Aluminum Extrusions for any losses on the related aluminum futures and/or forward contracts through the date of cancellation. These derivative contracts involve elements of market risk that are not reflected on the consolidated balance sheet, including the risk of dealing with counterparties and their ability to meet the terms of the contracts. The counterparties to any forward purchase commitments are major aluminum brokers and suppliers, and the counterparties to any aluminum futures contracts are major financial institutions. Fixed-price forward sales contracts are only made available to the best and most credit-worthy customers. The counterparties to our foreign currency futures and zero-cost collar contracts are major financial institutions. The effect on net income and other comprehensive income (loss) of derivative instruments classified as cash flow hedges and described in the previous paragraphs for the three month periods ended March 31, 2016 and 2015 is summarized in the table below: (In Thousands) Cash Flow Derivative Hedges Aluminum Futures Contracts Foreign Currency Forwards Three Months Ended March 31, 2016 2015 2016 2015 Amount of pre-tax gain (loss) recognized in other comprehensive income $ (550 ) $ (1,094 ) $ — $ — Location of gain (loss) reclassified from accumulated other comprehensive income into net income (effective portion) Cost of Cost of Cost of Cost of Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income to net income (effective portion) $ (984 ) $ (48 ) $ 15 $ 15 As of March 31, 2016 , the Company expects $0.8 million of unrealized after-tax losses on derivative instruments reported in accumulated other comprehensive income (loss) to be reclassified to earnings within the next 12 months. For the three month periods ended March 31, 2016 and 2015 , net gains or losses realized on previously unrealized net gains or losses from hedges that had been discontinued were not material. |
Pension And Other Post-Retireme
Pension And Other Post-Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension And Other Post-Retirement Benefits | The Company sponsors noncontributory defined benefit (pension) plans covering most employees. The plans for salaried and hourly employees currently in effect are based on a formula using the participant’s years of service and compensation or using the participant’s years of service and a dollar amount. The plan is closed to new participants, and based on plan changes announced in 2006, pay for active plan participants was frozen as of December 31, 2007. Beginning in the first quarter of 2014, with the exception of plan participants at one of Tredegar’s U.S. manufacturing facilities, the plan no longer accrued benefits associated with crediting employees for service, thereby freezing future benefits under the plan. The components of net periodic benefit cost for our pension and other post-retirement benefit programs reflected in consolidated results are shown below: Pension Benefits Other Post-Retirement Benefits Three Months Ended March 31, Three Months Ended March 31, (In Thousands) 2016 2015 2016 2015 Service cost $ 72 $ 144 $ 11 $ 12 Interest cost 3,365 3,312 85 84 Expected return on plan assets (3,978 ) (4,407 ) — — Amortization of prior service costs, gains or losses and net transition asset 3,384 4,024 (48 ) (40 ) Net periodic benefit cost $ 2,843 $ 3,073 $ 48 $ 56 Pension and other post-retirement liabilities were $100.4 million and $101.0 million at March 31, 2016 and December 31, 2015 , respectively ( $0.6 million included in “Accrued expenses” at March 31, 2016 and December 31, 2015 , with the remainder included in “Other noncurrent liabilities” in the consolidated balance sheets). The Company’s required contributions are expected to be $6.1 million in 2016 . There were no contributions to the pension plan in the first quarter of 2016 . Tredegar funds its other post-retirement benefits (life insurance and health benefits) on a claims-made basis, which the Company anticipates will be consistent with amounts paid for the year ended December 31, 2015 or $0.1 million . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | The Company’s business segments are PE Films, Flexible Packaging and Aluminum Extrusions. Information by business segment is reported below. Tredegar had historically reported two business segments: Film Products and Aluminum Extrusions. In 2015, the Company divided Film Products into two separate reportable segments: PE Films and Flexible Packaging Films. All historical results for PE Films and Flexible Packaging Films have been separately presented to conform with the new presentation of segments. There are no accounting transactions between segments and no allocations to segments. Net sales (sales less freight) and operating profit from ongoing operations are the measures of sales and operating profit used by the chief operating decision maker for purposes of assessing performance. The following table presents net sales and operating profit by segment for the three -month periods ended March 31, 2016 and 2015 : Three Months Ended March 31, (In Thousands) 2016 2015 Net Sales PE Films $ 88,481 $ 106,357 Flexible Packaging Films 26,377 26,844 Aluminum Extrusions 85,474 93,645 Total net sales 200,332 226,846 Add back freight 7,001 7,325 Sales as shown in the Consolidated Statements of Income $ 207,333 $ 234,171 Operating Profit PE Films: Ongoing operations $ 10,235 $ 16,832 Plant shutdowns, asset impairments, restructurings and other (1,135 ) — Flexible Packaging Films: Ongoing operations 2,032 785 Plant shutdowns, asset impairments, restructurings and other — 67 Aluminum Extrusions: Ongoing operations 7,499 5,292 Plant shutdowns, asset impairments, restructurings and other (7 ) (15 ) Total 18,624 22,961 Interest income 37 89 Interest expense 1,085 885 Gain on investment accounted for under fair value method 800 — Stock option-based compensation costs (37 ) 300 Corporate expenses, net 7,916 7,216 Income before income taxes 10,497 14,649 Income taxes 3,216 4,779 Net income $ 7,281 $ 9,870 The following table presents identifiable assets by segment at March 31, 2016 and December 31, 2015 : (In Thousands) March 31, 2016 December 31, 2015 PE Films $ 276,940 $ 270,236 Flexible Packaging Films 155,000 146,253 Aluminum Extrusions 135,726 136,935 Subtotal 567,666 553,424 General corporate 28,075 25,680 Cash and cash equivalents 40,022 44,156 Total $ 635,763 $ 623,260 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | he effective tax rate in the first three months of 2016 was 30.6% , compared to 32.6% in the first three months of 2015 and is expected to be 34% for the full year 2016 . The significant differences between the U.S. federal statutory rate and the effective income tax rate for the three months ended March 31, 2016 and 2015 are as follows: Percent of Income Before Income Taxes Three Months Ended March 31, 2016 2015 Income tax expense at federal statutory rate 35.0 35.0 Non-deductible expenses 1.0 0.7 Income tax contingency accruals and tax settlements 0.9 0.8 State taxes, net of federal income tax benefit 0.6 1.2 Valuation allowance for foreign operating loss carry-forwards 0.1 (0.4 ) Changes in estimates related to prior year tax provision (0.2 ) (0.2 ) Foreign investment write-up (0.3 ) — Research and development tax credit (0.9 ) — Foreign rate differences (0.9 ) (1.4 ) Unremitted earnings from foreign operations (0.9 ) 1.0 Valuation allowance for capital loss carry-forwards (1.1 ) (1.6 ) Domestic production activities deduction (2.7 ) (2.5 ) Effective income tax rate 30.6 32.6 The Brazilian federal statutory income tax rate is a composite of 34.0% ( 25.0% of income tax and 9.0% of social contribution on income). Terphane Holdings LLC’s (“Terphane”) manufacturing facility in Brazil is the beneficiary of certain income tax incentives that allow for a reduction in the statutory Brazilian federal income tax rate to 15.25% levied on the operating profit on certain of its products. The incentives have been granted for a 10 -year period, which has a retroactive commencement date of January 1, 2015. No benefit was recognized from these tax incentives in the first three months of 2016 or 2015 . In connection with its capacity expansion project in Brazil, the Company paid certain social taxes associated with the purchase of machinery and equipment and construction of buildings and other long-term assets. Payments of these taxes in Brazil were included in “Net cash used in investing activities” given the nature of the underlying use of cash (e.g. the purchase of property, plant and equipment). The Company can recover tax credits associated with the purchase of machinery and equipment at different points over a period up to 24 months. Once the machinery and equipment was placed into service in the fourth quarter of 2014, the Company started applying these tax credits against various other taxes due in Brazil, with their recovery being reflected as cash received from investing activities, consistent with the classification of the original payments. Income taxes in 2016 included a partial reversal of a valuation allowance of $0.1 million related to the expected limitations on the utilization of assumed capital losses on certain investments that were recognized in prior years. Income taxes in 2015 included the partial reversal of a valuation allowance of $0.2 million related to the expected limitations on the utilization of assumed capital losses on certain investments. The Company had a valuation allowance for excess capital losses from investments and other related items of $10.8 million at March 31, 2016 . Tredegar continues to evaluate opportunities to utilize these loss carryforwards prior to their expiration at various dates in the future. As events and circumstances warrant, allowances will be reversed when it is more likely than not that future taxable income will exceed deductible amounts, thereby resulting in the realization of deferred tax assets. Tredegar and its subsidiaries file income tax returns in the U.S., various states and jurisdictions outside the U.S. With few exceptions, Tredegar and its subsidiaries are no longer subject to U.S. federal, state or non-U.S. income tax examinations by tax authorities for years before 2012. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | On March 1, 2016, Tredegar entered into a $400 million five -year, secured revolving credit facility (“Credit Agreement”), with an option to increase that amount by $50 million . The Credit Agreement replaces the Company’s previous $350 million five-year, unsecured revolving credit facility that was due to expire on April 17, 2017. In connection with the refinancing, the Company borrowed $107 million under the Credit Agreement, which was used, together with available cash on hand, to repay all indebtedness under the previous revolving credit facility. Borrowings under the Credit Agreement bear an interest rate of LIBOR plus a credit spread and commitment fees charged on the unused amount under the Credit Agreement at various indebtedness-to-adjusted EBITDA levels as follows: Pricing Under Credit Revolving Agreement (Basis Points) Indebtedness-to-Adjusted EBITDA Ratio Credit Spread Over LIBOR Commitment Fee > 3.5x but <= 4.0x 250 45 > 3.0x but <= 3.5x 225 40 > 2.0x but <= 3.0x 200 35 > 1.0x but <= 2.0x 175 30 <= 1.0x 150 25 At March 31, 2016 , the interest cost on debt borrowed under the Credit Agreement was priced at one-month LIBOR plus the applicable credit spread of 175 basis points. The most restrictive covenants in the Credit Agreement include: • Maximum indebtedness-to-adjusted EBITDA (“Leverage Ratio:) of 4.00 x; • Minimum adjusted EBIT-to-interest expense of 2.50 x; and • Maximum aggregate distributions to shareholders over the term of the Credit Agreement of $100,000 plus, beginning with the fiscal quarter ended March 31, 2016, 50% of net income and, at a Leverage Ratio of equal to or greater than 3.00 x, a limitation on such payments for the succeeding quarter at the greater of (i) $4 million and (ii) 50% of consolidated net income for the most recent fiscal quarter, and, at a Leverage Ratio of equal to or greater than 3.50 x, the prevention of such payments for the succeeding quarter unless the fixed charge coverage ratio is equal to or greater than 1.20 x. The Credit Agreement is secured by substantially all of the Company’s and its domestic subsidiaries’ assets, including equity in certain material first-tier foreign subsidiaries. As of March 31, 2016 , Tredegar was in compliance with all financial covenants outlined in the Credit Agreement. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | In 2011, Tredegar was notified by U.S. Customs and Border Protection (“U.S. Customs”) that certain film products exported by Terphane to the U.S. since November 6, 2008 could be subject to duties associated with an antidumping duty order on imported PET films from Brazil. The Company contested the applicability of these antidumping duties to the films exported by Terphane, and it filed a request with the U.S. Department of Commerce (“Commerce”) for clarification about whether the film products at issue are within the scope of the antidumping duty order. On January 8, 2013, Commerce issued a scope ruling confirming that the films are not subject to the order, provided that Terphane can establish to the satisfaction of U.S. Customs that the performance enhancing layer on those films is greater than 0.00001 inches thick. The films at issue are manufactured to specifications that exceed that threshold. On February 6, 2013, certain U.S. producers of PET film filed a summons with the U.S. Court of International Trade to appeal the scope ruling from Commerce. If U.S. Customs ultimately were to require the collection of anti-dumping duties because Commerce’s scope ruling was overturned on appeal, or otherwise, indemnifications for related liabilities are specifically provided for under the purchase agreement pursuant to which the Company acquired Terphane. In December 2014, the U.S. International Trade Commission voted to revoke the anti-dumping duty order on imported PET films from Brazil. The revocation, as a result of the vote by the U.S. International Trade Commission, was effective as of November 2013. On February 20, 2015, certain U.S. producers of PET films filed a summons with the U.S. Court of International Trade to appeal the determination by the U.S. International Trade Commission. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) issued their converged standard on revenue recognition. The revised revenue standard contains principles that an entity will apply to direct the measurement of revenue and timing of when it is recognized. The core principle of the guidance is that the recognition of revenue should depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services. To achieve that core principle, an entity will utilize a principle-based five-step approach model. The converged standard also includes more robust disclosure requirements which will require entities to provide sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, amended guidance was issued regarding clarifying the implementation guidance on principal versus agent considerations. The effective date of this revised standard is for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that annual reporting period. The converged standard can be adopted either retrospectively or through the use of a practical expedient. The Company is still assessing the impact of this new guidance. In April 2015, the FASB issued new guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that corresponding debt liability, consistent with debt discounts, rather than as a deferred charge (e.g. an asset). In August 2015, the FASB issued updated guidance that stated in the absence of authoritative guidance, debt issuance costs associated with line-of-credit arrangements could continue to be deferred and presented as an asset over the corresponding amortization period. The new guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance requires that all prior period balance sheets be adjusted retrospectively. Deferred debt issuance costs associated with the Company’s Credit Agreement were $2.9 million and $0.7 million (included in “Other assets and deferred charges” in the consolidated balance sheet) at March 31, 2016 and December 31, 2015 , respectively. The Company adopted this guidance this quarter but there was no impact to its consolidated balance sheet as its current debt issuance costs are associated with a revolving line of credit. In July 2015, the FASB issued new guidance for the measurement of inventories. Inventories within the scope of the revised guidance should be measured at the lower of cost or net realizable value. The previous guidance dictated that inventory should be measured at the lower of cost or market, with market either replacement cost, net realizable value or net realizable value less an approximation of normal profit margin. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventories measured using LIFO or the retail inventory method. The amended guidance is effective for fiscal years beginning after December 31, 2016, including the interim periods within those fiscal years. The amendments should be applied prospectively, with early adoption permitted. The Company is still assessing the impact of this revised guidance. In January 2016, the FASB issued amended guidance associated with accounting for equity investments measured at fair value. The amended guidance requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amended guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this update eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The amended guidance is effective for fiscal years beginning after December 31, 2017, including the interim periods within those fiscal years. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the update. Early adoption is permitted under limited, specific circumstances. The Company is still assessing the impact of this new guidance. In February 2016, the FASB issued a revised standard on lease accounting. Lessees will need to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The revised standard requires additional analysis of the components of a transaction to determine if a right-to-use asset is embedded in the transaction that needs to be treated as a lease. Substantial additional disclosures are also required by the revised standard. The revised standard is effective for fiscal years beginning after December 31, 2018, including the interim periods within those fiscal years. The revised standard should be applied on a modified retrospective approach or through the use of a practical expedient, with early adoption permitted. The Company is still assessing the impact of this revised standard. In March 2016, the FASB issued amended guidance associated with embedded derivatives in debt instruments. The current guidance requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amended guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amended guidance is effective for fiscal years beginning after December 31, 2016, including the interim periods within those fiscal years. The revised standard should be applied on a modified retrospective approach, with early adoption permitted. The Company is still assessing the impact of this revised standard. In March 2016, the FASB issued amended guidance to simplify the accounting for equity method investments. The amendments to the guidance eliminate the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amended guidance is effective for fiscal years beginning after December 31, 2016, including the interim periods within those fiscal years. The revised standard should be applied on a prospective basis, with early adoption permitted. The Company is still assessing the impact of this revised standard. In March 2016, the FASB issued amended guidance to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated guidance is effective for fiscal years beginning after December 31, 2016, including the interim periods within those fiscal years. The updated standard can be applied on a retrospective or modified retrospective basis, with early adoption permitted. The Company is still assessing the impact of this updated standard. |
Plants Shutdowns, Asset Impai23
Plants Shutdowns, Asset Impairments, Restructurings And Other (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Charges [Abstract] | |
Schedule Of Accrued Expenses Associated With Asset Impairments And Exit And Disposal Activities | A reconciliation of the beginning and ending balances of accrued expenses associated with “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income for the three months ended March 31, 2016 is as follows: (In Thousands) Severance Asset Impairments Other (a) Total Balance at January 1, 2016 $ 1,462 $ — $ 405 $ 1,867 Changes in 2016: Charges 294 256 592 1,142 Cash spent (482 ) — (619 ) (1,101 ) Charges against assets — (256 ) — (256 ) Balance at March 31, 2016 $ 1,274 $ — $ 378 $ 1,652 (a) Other includes other facility consolidation-related costs associated with the consolidation of North American PE Films manufacturing facilities and other shutdown-related costs associated with the shutdown of the Company’s aluminum extrusions manufacturing facility in Kentland, Indiana. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | The components of inventories are as follows: March 31, December 31, (In Thousands) 2016 2015 Finished goods $ 14,679 $ 13,935 Work-in-process 10,173 9,249 Raw materials 20,338 22,149 Stores, supplies and other 20,327 19,992 Total $ 65,517 $ 65,325 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Diluted earnings per share is computed by dividing net income by the weighted average common and potentially dilutive common equivalent shares outstanding, determined as follows: Three Months Ended March 31, (In Thousands) 2016 2015 Weighted average shares outstanding used to compute basic earnings per share 32,654 32,482 Incremental dilutive shares attributable to stock options and restricted stock — 146 Shares used to compute diluted earnings per share 32,654 32,628 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of After-Tax Changes In Accumulated Other Comprehensive Income (Loss) | The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2016 : (In Thousands) Foreign currency translation adjustment Gain (loss) on derivative financial instruments Pension and other post-retirement benefit adjustments Total Beginning balance, January 1, 2016 $ (112,807 ) $ (373 ) $ (95,539 ) $ (208,719 ) Other comprehensive income (loss) before reclassifications 12,579 (342 ) — 12,237 Amounts reclassified from accumulated other comprehensive income (loss) — 604 2,482 3,086 Net other comprehensive income (loss) - current period 12,579 262 2,482 15,323 Ending balance, March 31, 2016 $ (100,228 ) $ (111 ) $ (93,057 ) $ (193,396 ) The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2015 : (In Thousands) Foreign Gain (loss) on Pension and Total Beginning balance, January 1, 2015 $ (47,270 ) $ 656 $ (103,581 ) $ (150,195 ) Other comprehensive income (loss) before reclassifications (34,653 ) (682 ) — (35,335 ) Amounts reclassified from accumulated other comprehensive income (loss) — 20 2,522 2,542 Net other comprehensive income (loss) - current period (34,653 ) (662 ) 2,522 (32,793 ) Ending balance, March 31, 2015 $ (81,923 ) $ (6 ) $ (101,059 ) $ (182,988 ) |
Schedule Of Reclassifications Of Balances Out Of Accumulated Other Comprehensive Income (Loss) Into Net Income | Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the three months ended March 31, 2016 are summarized as follows: (In Thousands) Amount Location of gain Gain (loss) on derivative financial instruments: Aluminum future contracts, before taxes $ (984 ) Cost of sales Foreign currency forward contracts, before taxes 15 Cost of sales Total, before taxes (969 ) Income tax expense (benefit) (365 ) Income taxes Total, net of tax $ (604 ) Amortization of pension and other post-retirement benefits: Actuarial gain (loss) and prior service costs, before taxes $ (3,337 ) (a) Income tax expense (benefit) (855 ) Income taxes Total, net of tax $ (2,482 ) (a) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost (see Note 8 for additional detail). Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the three months ended March 31, 2015 are summarized as follows: (In Thousands) Amount Location of gain Gain (loss) on derivative financial instruments: Aluminum future contracts, before taxes $ (48 ) Cost of sales Foreign currency forward contracts, before taxes 15 Cost of sales Total, before taxes (33 ) Income tax expense (benefit) (13 ) Income taxes Total, net of tax $ (20 ) Amortization of pension and other post-retirement benefits: Actuarial gain (loss) and prior service costs, before taxes $ (3,984 ) (a) Income tax expense (benefit) (1,462 ) Income taxes Total, net of tax $ (2,522 ) (a) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost (see Note 8 for additional detail). |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Fair Value Method Investments, Balance Sheets And Income Statements | The condensed balance sheets for kaléo at March 31, 2016 and December 31, 2015 and condensed statements of operations for the three months ended March 31, 2016 and 2015 , as reported to the Company by kaléo, are provided below: (In Thousands) March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Assets: Liabilities & Equity: Cash & short-term investments $ 96,431 $ 91,844 Restricted cash 3,748 8,182 Other current assets 19,063 9,070 Other current liabilities $ 33,644 $ 10,261 Property & equipment 15,821 8,453 Other noncurrent liabilities 609 552 Patents 2,867 2,811 Long term debt, net 142,868 142,696 Other long-term assets 114 92 Equity (39,077 ) (33,057 ) Total assets $ 138,044 $ 120,452 Total liabilities & equity $ 138,044 $ 120,452 Three Months Ended March 31, 2016 2015 Revenues & Expenses: Revenues, net (a) $ (3,050 ) $ 4,850 Cost of goods sold (3,622 ) (2,330 ) Expenses and other, net (b) 541 (14,384 ) Income tax benefit (expense) (8 ) (4 ) Net income (loss) $ (6,139 ) $ (11,868 ) (a) Negative revenues during the first quarter of 2016 relate to the impact of product sales allowances on channel inventory following a product price reset during the quarter. (b) “Expenses and other, net” includes selling, general and administrative expense, research and development expense, gain on contract termination, interest expense and other income (expense), net. Excluding the gain, “Expenses and other, net” would have been a net deduction of $17.5 million in the first quarter of 2016. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |
Schedule Of Pretax Effect On Net Income (Loss) And Other Comprehensive Income (Loss) Of Derivative Instruments Classified As Cash Flow Hedges | The effect on net income and other comprehensive income (loss) of derivative instruments classified as cash flow hedges and described in the previous paragraphs for the three month periods ended March 31, 2016 and 2015 is summarized in the table below: (In Thousands) Cash Flow Derivative Hedges Aluminum Futures Contracts Foreign Currency Forwards Three Months Ended March 31, 2016 2015 2016 2015 Amount of pre-tax gain (loss) recognized in other comprehensive income $ (550 ) $ (1,094 ) $ — $ — Location of gain (loss) reclassified from accumulated other comprehensive income into net income (effective portion) Cost of Cost of Cost of Cost of Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income to net income (effective portion) $ (984 ) $ (48 ) $ 15 $ 15 |
Aluminum Futures Contracts | |
Derivatives, Fair Value [Line Items] | |
Summary Of Location And Fair Value Of Derivative Financial Instruments | The table below summarizes the location and gross amounts of aluminum futures contract fair values in the consolidated balance sheets as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (In Thousands) Balance Sheet Account Fair Value Balance Sheet Account Fair Value Derivatives Designated as Hedging Instruments Asset derivatives: Accrued expenses $ — Accrued expenses $ 44 Liability derivatives: Accrued expenses $ (1,319 ) Accrued expenses $ (1,797 ) Derivatives Not Designated as Hedging Instruments Asset derivatives: Accrued expenses $ — Accrued expenses $ — Liability derivatives: Accrued expenses $ — Accrued expenses $ — Net asset (liability) $ (1,319 ) $ (1,753 ) |
Foreign Currency Forward Contracts | |
Derivatives, Fair Value [Line Items] | |
Summary Of Location And Fair Value Of Derivative Financial Instruments |
Pension And Other Post-Retire29
Pension And Other Post-Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Components Of Net Periodic Benefit Cost For Pension And Other Post-Retirement Benefit Programs | The components of net periodic benefit cost for our pension and other post-retirement benefit programs reflected in consolidated results are shown below: Pension Benefits Other Post-Retirement Benefits Three Months Ended March 31, Three Months Ended March 31, (In Thousands) 2016 2015 2016 2015 Service cost $ 72 $ 144 $ 11 $ 12 Interest cost 3,365 3,312 85 84 Expected return on plan assets (3,978 ) (4,407 ) — — Amortization of prior service costs, gains or losses and net transition asset 3,384 4,024 (48 ) (40 ) Net periodic benefit cost $ 2,843 $ 3,073 $ 48 $ 56 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | The following table presents net sales and operating profit by segment for the three -month periods ended March 31, 2016 and 2015 : Three Months Ended March 31, (In Thousands) 2016 2015 Net Sales PE Films $ 88,481 $ 106,357 Flexible Packaging Films 26,377 26,844 Aluminum Extrusions 85,474 93,645 Total net sales 200,332 226,846 Add back freight 7,001 7,325 Sales as shown in the Consolidated Statements of Income $ 207,333 $ 234,171 Operating Profit PE Films: Ongoing operations $ 10,235 $ 16,832 Plant shutdowns, asset impairments, restructurings and other (1,135 ) — Flexible Packaging Films: Ongoing operations 2,032 785 Plant shutdowns, asset impairments, restructurings and other — 67 Aluminum Extrusions: Ongoing operations 7,499 5,292 Plant shutdowns, asset impairments, restructurings and other (7 ) (15 ) Total 18,624 22,961 Interest income 37 89 Interest expense 1,085 885 Gain on investment accounted for under fair value method 800 — Stock option-based compensation costs (37 ) 300 Corporate expenses, net 7,916 7,216 Income before income taxes 10,497 14,649 Income taxes 3,216 4,779 Net income $ 7,281 $ 9,870 |
Schedule Of Identifiable Assets By Segment | The following table presents identifiable assets by segment at March 31, 2016 and December 31, 2015 : (In Thousands) March 31, 2016 December 31, 2015 PE Films $ 276,940 $ 270,236 Flexible Packaging Films 155,000 146,253 Aluminum Extrusions 135,726 136,935 Subtotal 567,666 553,424 General corporate 28,075 25,680 Cash and cash equivalents 40,022 44,156 Total $ 635,763 $ 623,260 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Effective Income Tax Rate For Continuing Operations | The significant differences between the U.S. federal statutory rate and the effective income tax rate for the three months ended March 31, 2016 and 2015 are as follows: Percent of Income Before Income Taxes Three Months Ended March 31, 2016 2015 Income tax expense at federal statutory rate 35.0 35.0 Non-deductible expenses 1.0 0.7 Income tax contingency accruals and tax settlements 0.9 0.8 State taxes, net of federal income tax benefit 0.6 1.2 Valuation allowance for foreign operating loss carry-forwards 0.1 (0.4 ) Changes in estimates related to prior year tax provision (0.2 ) (0.2 ) Foreign investment write-up (0.3 ) — Research and development tax credit (0.9 ) — Foreign rate differences (0.9 ) (1.4 ) Unremitted earnings from foreign operations (0.9 ) 1.0 Valuation allowance for capital loss carry-forwards (1.1 ) (1.6 ) Domestic production activities deduction (2.7 ) (2.5 ) Effective income tax rate 30.6 32.6 |
Plants Shutdowns, Asset Impai32
Plants Shutdowns, Asset Impairments, Restructurings And Other (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Business Development Expenses | $ 400,000 | ||
Loss on asset impairments and divestitures | 256,000 | $ 0 | |
Other Non-Operating and Non-Recurring Charges [Abstract] | |||
Unrealized gain (loss) on investment under fair value method | 800,000 | 0 | |
Payments for Restructuring | 1,101,000 | ||
kaleo | |||
Other Non-Operating and Non-Recurring Charges [Abstract] | |||
Unrealized gain (loss) on investment under fair value method | 800,000 | 0 | |
Unrealized gain (loss) on investment under fair value method, after taxes | 600,000 | ||
PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Pretax charges for severance and other employee-related costs | 8,000 | ||
Aluminum Extrusions | |||
Restructuring Cost and Reserve [Line Items] | |||
Pretax charges for severance and other employee-related costs | 100,000 | ||
Severance | |||
Other Non-Operating and Non-Recurring Charges [Abstract] | |||
Payments for Restructuring | 482,000 | ||
Aluminum Extrusions Manufacturing Facility In Kentland Indiana [Member] | Facility Closing | Aluminum Extrusions | |||
Restructuring Cost and Reserve [Line Items] | |||
Plant shutdown related expenditures | 7,000 | $ 15,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
AcceleratedDepreciationExpectedCost | 3,000,000 | $ 3,000,000 | |
Other Plant Consolidation Expenses - Cost of Goods Sold | 400,000 | ||
Pretax loss for asset impairments | 700,000 | ||
Other Non-Operating and Non-Recurring Charges [Abstract] | |||
Payments for Restructuring | 2,200,000 | 5,300,000 | |
Capital Expenditures Restructuring Project | 1,700,000 | 4,200,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Plant shutdown related expenditures | 1,100,000 | 3,300,000 | |
Pretax charges for severance and other employee-related costs | 300,000 | ||
Loss on asset impairments and divestitures | 200,000 | ||
Accelerated Depreciation Expense | 100,000 | ||
Other Restructuring Costs | 500,000 | ||
Other Plant Consolidation Expenses - Cost of Goods Sold | 0 | ||
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | Other Restructuring [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 2,000,000 | 2,000,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | RestructuringSeverance&EquipmentTransfers [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
RestructuringExpectedCashOutflows | 5,000,000 | 5,000,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | RestructuringCapExEquiptUpgrades [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
RestructuringExpectedCashOutflows | 11,000,000 | 11,000,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | RestructuringSafetyQualityIncentives [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
RestructuringExpectedCashOutflows | 1,000,000 | 1,000,000 | |
FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | RestructuringProductQualifications [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
RestructuringExpectedCashOutflows | 1,000,000 | 1,000,000 | |
Minimum | FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 5,000,000 | 5,000,000 | |
RestructuringExpectedCashOutflows | 16,000,000 | 16,000,000 | |
Minimum | FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | Severance | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 2,000,000 | 2,000,000 | |
Maximum | FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 6,000,000 | 6,000,000 | |
RestructuringExpectedCashOutflows | 17,000,000 | 17,000,000 | |
Maximum | FilmProductsManufacturingFacilityInLakeZurichIllinois [Member] | Severance | PE Films | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 3,000,000 | $ 3,000,000 |
Plants Shutdowns, Asset Impai33
Plants Shutdowns, Asset Impairments, Restructurings And Other (Schedule Of Accrued Expenses Associated With Asset Impairments And Exit And Disposal Activities) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
January 1, 2016 | $ 1,867 | |
Charges | 1,142 | |
Cash spent | (1,101) | |
Charges against assets | (256) | |
March 31, 2016 | 1,652 | |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
January 1, 2016 | 1,462 | |
Charges | 294 | |
Cash spent | (482) | |
March 31, 2016 | 1,274 | |
Long Lived Asset Impairment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
January 1, 2016 | 0 | |
Charges | 256 | |
Cash spent | 0 | |
Charges against assets | (256) | |
March 31, 2016 | 0 | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
January 1, 2016 | 405 | [1] |
Charges | 592 | [1] |
Cash spent | (619) | [1] |
March 31, 2016 | $ 378 | [1] |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmMxZjU0MTllNmFmZTQ1ODdiMmJlZTYyNmE3YWU0ZjE4fFRleHRTZWxlY3Rpb246NTc0ODdFNjQ0MzJBNTdDQ0EzNzJCRERGOEY0NzAzNEEM} |
Inventories (Schedule Of Compon
Inventories (Schedule Of Components Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Finished goods | $ 14,679 | $ 13,935 |
Work-in-process | 10,173 | 9,249 |
Raw materials | 20,338 | 22,149 |
Stores, supplies and other | 20,327 | 19,992 |
Total | $ 65,517 | $ 65,325 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 692,014 | 384,760 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding used to compute basic earnings per share | 32,654 | 32,482 |
Incremental dilutive shares attributable to stock options and restricted stock | 0 | 146 |
Shares used to compute diluted earnings per share | 32,654 | 32,628 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Schedule Of After-Tax Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of Period | $ (208,719) | $ (150,195) |
Other comprehensive income (loss) before reclassifications | 12,237 | (35,335) |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,086 | 2,542 |
Net other comprehensive income (loss) - current period | 15,323 | (32,793) |
End of Period | (193,396) | (182,988) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of Period | (112,807) | (47,270) |
Other comprehensive income (loss) before reclassifications | 12,579 | (34,653) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income (loss) - current period | 12,579 | (34,653) |
End of Period | (100,228) | (81,923) |
Gain (Loss) on Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of Period | (373) | 656 |
Other comprehensive income (loss) before reclassifications | (342) | (682) |
Amounts reclassified from accumulated other comprehensive income (loss) | 604 | 20 |
Net other comprehensive income (loss) - current period | 262 | (662) |
End of Period | (111) | (6) |
Pension & Other Post-retirement Benefit Adjust. | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning of Period | (95,539) | (103,581) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,482 | 2,522 |
Net other comprehensive income (loss) - current period | 2,482 | 2,522 |
End of Period | $ (93,057) | $ (101,059) |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Schedule Of Reclassifications Of Balances Out Of Accumulated Other Comprehensive Income (Loss) Into Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (193,396) | $ (182,988) | $ (208,719) | $ (150,195) | |
Cost of goods sold | (163,053) | (189,431) | |||
Income before income taxes | 10,497 | 14,649 | |||
Income taxes from continuing operations | 3,216 | 4,779 | |||
Total, net of tax | 7,281 | 9,870 | |||
Foreign Currency Translation | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (100,228) | (81,923) | (112,807) | (47,270) | |
Gain (Loss) on Derivative Financial Instruments | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (111) | (6) | (373) | 656 | |
Pension & Other Post-retirement Benefit Adjust. | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (93,057) | (101,059) | $ (95,539) | $ (103,581) | |
Reclassification Out Of Accumulated Other Comprehensive Income | Gain (Loss) on Derivative Financial Instruments | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income before income taxes | (969) | (33) | |||
Income taxes from continuing operations | (365) | (13) | |||
Total, net of tax | (604) | (20) | |||
Reclassification Out Of Accumulated Other Comprehensive Income | Gain (Loss) on Derivative Financial Instruments | Aluminum Futures Contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | (984) | (48) | |||
Reclassification Out Of Accumulated Other Comprehensive Income | Gain (Loss) on Derivative Financial Instruments | Foreign Currency Forward Contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of goods sold | 15 | (15) | |||
Reclassification Out Of Accumulated Other Comprehensive Income | Pension & Other Post-retirement Benefit Adjust. | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Actuarial gain (loss) and prior service costs, before taxes | (3,337) | [1] | (3,984) | ||
Income taxes from continuing operations | (855) | (1,462) | |||
Total, net of tax | $ (2,482) | $ (2,522) | |||
[1] | (a)This component of accumulated other comprehensive income is included in the computation of net periodic pension cost (see Note 8 for additional detail). |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2008 | Aug. 31, 2007 | |
Unrealized gain (loss) on investment under fair value method | $ 800 | $ 0 | |||
kaleo | |||||
Kaleo 2016 Q1 gain on contract termination excluded from other expenses | $ 17,500 | ||||
Total cash invested in private company | $ 7,500 | ||||
Ownership interest percentage | 19.00% | ||||
Carrying value | $ 19,400 | $ 18,600 | |||
Unrealized gain (loss) on investment under fair value method | $ 800 | $ 0 | |||
Weighted average cost of capital | 45.00% | 45.00% | |||
Basis point decrease of weighted average cost of capital assumption | 5.00% | ||||
Basis point increase of weighted average cost of capital assumption | 5.00% | ||||
Increase in fair value from five hundred point decrease in weighted average cost of capital assumption | $ 5,000 | ||||
Decrease in fair value from five hundred point increase in weighted average cost of capital assumption | 4,000 | ||||
Harbinger Fund | |||||
Cost Method Investments | 1,700 | 1,700 | |||
Alleghany and Bath County, Virginia [Member] | |||||
Cost Method Investments | $ 2,600 | $ 2,600 |
Investments (Schedule Of Fair V
Investments (Schedule Of Fair Value Method Investments, Balance Sheets And Income Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cost of goods sold | $ 163,053 | $ 189,431 | ||
Cash and cash equivalents | 40,022 | 55,155 | $ 44,156 | $ 50,056 |
Property & equipment | 240,140 | 231,315 | ||
Other long-term assets | 30,801 | 27,869 | ||
Total assets | 635,763 | 623,260 | ||
Long term debt, net (a) | 107,000 | 104,000 | ||
Equity | 291,469 | 272,748 | ||
Total liabilities and shareholders’ equity | 635,763 | 623,260 | ||
Income tax benefit (expense) | 3,216 | 4,779 | ||
Net income | 7,281 | 9,870 | ||
kaleo | ||||
Revenues | (3,050) | 4,850 | ||
Cost of goods sold | 3,622 | 2,330 | ||
Cash and cash equivalents | 96,431 | 91,844 | ||
Restricted Cash | 3,748 | 8,182 | ||
Other current assets | 19,063 | 9,070 | ||
Property & equipment | 15,821 | 8,453 | ||
Patents | 2,867 | 2,811 | ||
Other long-term assets | 114 | 92 | ||
Total assets | 138,044 | 120,452 | ||
Other current liabilities | 33,644 | 10,261 | ||
Other noncurrent liabilities | 609 | 552 | ||
Long term debt, net (a) | 142,868 | 142,696 | ||
Redeemable preferred stock | 0 | 0 | ||
Equity | (39,077) | (33,057) | ||
Total liabilities and shareholders’ equity | 138,044 | $ 120,452 | ||
Expenses and other, net (a) | (541) | 14,384 | ||
Income tax benefit (expense) | 8 | 4 | ||
Net income | $ (6,139) | $ (11,868) |
Derivative Financial Instrume41
Derivative Financial Instruments (Narrative) (Details) $ in Thousands, lb in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)lb | Mar. 31, 2015lb | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||
Amounts of unrealized after tax gains (losses) to be Reclassified within Twelve Months | $ (800) | ||
Aluminum Futures Contracts | |||
Derivative [Line Items] | |||
Notional Amount | $ 15,200 | $ 16,600 | |
Weight of aluminum that hedged future purchase of aluminum to meet fixed - price forward sales contract obligations, lbs | lb | 18.1 | 18.9 | |
Net asset (liability), Fair Value | $ (1,319) | (1,753) | |
Accrued Expenses [Member] | Derivatives Not Designated As Hedging Instruments | Aluminum Futures Contracts | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |
Accrued Expenses [Member] | Derivatives Designated As Hedging Instruments [Member] | Aluminum Futures Contracts | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 44 | |
Derivative Liability, Fair Value, Gross Liability | $ 1,319 | $ 1,797 |
Derivative Financial Instrume42
Derivative Financial Instruments (Summary Of Location And Fair Value Of Derivative Financial Instruments) (Details) - Aluminum Futures Contracts - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Net asset (liability), Fair Value | $ (1,319) | $ (1,753) |
Derivatives Designated As Hedging Instruments [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 44 |
Liability derivatives: Fair Value | (1,319) | (1,797) |
Derivatives Not Designated As Hedging Instruments | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives: Fair Value | $ 0 | $ 0 |
Derivative Financial Instrume43
Derivative Financial Instruments (Schedule Of Pretax Effect On Net Income (Loss) And Other Comprehensive Income (Loss) Of Derivative Instruments Classified As Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign Currency Forwards And Options [Member] | Cost Of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income to net income (effective portion) | $ 15 | $ 15 |
Cash Flow Derivative Hedges | Aluminum Futures Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of pre-tax gain (loss) recognized in other comprehensive income | (550) | (1,094) |
Cash Flow Derivative Hedges | Aluminum Futures Contracts | Cost Of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income to net income (effective portion) | (984) | (48) |
Cash Flow Derivative Hedges | Foreign Currency Forwards And Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of pre-tax gain (loss) recognized in other comprehensive income | $ 0 | $ 0 |
Pension And Other Post-Retire44
Pension And Other Post-Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $ (100.4) | $ (101) |
Other Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to pension plans for continuing operations | 0.1 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected required contributions | 6.1 | |
Accrued Expenses [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities | $ 1 | $ 1 |
Pension And Other Post-Retire45
Pension And Other Post-Retirement Benefits (Schedule Of Components Of Net Periodic Benefit Cost For Pension And Other Post-Retirement Benefit Programs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 72 | $ 144 |
Interest cost | 3,365 | 3,312 |
Expected return on plan assets | (3,978) | (4,407) |
Amortization of prior service costs, gains or losses and net transition asset | 3,384 | 4,024 |
Net periodic benefit cost | 2,843 | 3,073 |
Other Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 11 | 12 |
Interest cost | 85 | 84 |
Expected return on plan assets | 0 | |
Amortization of prior service costs, gains or losses and net transition asset | (48) | (40) |
Net periodic benefit cost | $ 48 | $ 56 |
Segment Reporting (Schedule Of
Segment Reporting (Schedule Of Segment Reporting Information By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 635,763 | $ 623,260 | |
Total net sales | 200,332 | $ 226,846 | |
Add back freight | 7,001 | 7,325 | |
Sales as shown in the Consolidated Statements of Income | 207,333 | 234,171 | |
Total Segment Income (Loss) | 18,624 | 22,961 | |
Interest income | 37 | 89 | |
Interest expense | 1,085 | 885 | |
Gain on investment accounted for under fair value method | 800 | 0 | |
Stock option-based compensation costs | (37) | 300 | |
Corporate expenses, net | 7,916 | 7,216 | |
Income from continuing operations before income taxes | 10,497 | 14,649 | |
Income taxes from continuing operations | 3,216 | 4,779 | |
Net income | 7,281 | 9,870 | |
kaleo | |||
Segment Reporting Information [Line Items] | |||
Assets | 138,044 | 120,452 | |
Gain on investment accounted for under fair value method | 800 | 0 | |
Income taxes from continuing operations | 8 | 4 | |
Net income | (6,139) | (11,868) | |
PE Films | |||
Segment Reporting Information [Line Items] | |||
Assets | 276,940 | 270,236 | |
Total net sales | 88,481 | 106,357 | |
Operating profit from ongoing operations | 10,235 | 16,832 | |
Plant shutdowns, asset impairments, restructurings and other | (1,135) | 0 | |
Flexible Packaging Films [Member] [Domain] | |||
Segment Reporting Information [Line Items] | |||
Assets | 155,000 | 146,253 | |
Total net sales | 26,377 | 26,844 | |
Operating profit from ongoing operations | 2,032 | 785 | |
Plant shutdowns, asset impairments, restructurings and other | 0 | 67 | |
Aluminum Extrusions | |||
Segment Reporting Information [Line Items] | |||
Assets | 135,726 | $ 136,935 | |
Total net sales | 85,474 | 93,645 | |
Operating profit from ongoing operations | 7,499 | 5,292 | |
Plant shutdowns, asset impairments, restructurings and other | $ (7) | $ (15) |
Segment Reporting (Schedule O47
Segment Reporting (Schedule Of Identifiable Assets By Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Subtotal | $ 567,666 | $ 553,424 | ||
General corporate | 28,075 | 25,680 | ||
Cash and cash equivalents | 40,022 | 44,156 | $ 55,155 | $ 50,056 |
Total assets | 635,763 | 623,260 | ||
PE Films | ||||
Total assets | 276,940 | 270,236 | ||
Flexible Packaging Films [Member] [Domain] | ||||
Total assets | 155,000 | 146,253 | ||
Aluminum Extrusions | ||||
Total assets | $ 135,726 | $ 136,935 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Line Items] | ||
Income Tax Expense (Benefit) | $ 3,216 | $ 4,779 |
Deferred Tax Benefit Expense Valuation Allowance Adj Capital Loss Carryforwards | $ 100 | $ 0 |
Effective Income Tax Rate Reconciliation, Percent | 30.60% | 32.60% |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 10,497 | $ 14,649 |
Brazilian [Member] | ||
Income Taxes [Line Items] | ||
Effective income tax rate reconciliation social contribution on income | 9.00% | |
Effective Income Tax Rate Reconciliation Federal Statutory Tax Rate Excluding Social Contribution On Income | 25.00% | |
Effective Income Tax Rate Reconciliation Federal Statutory Tax Rate Including Social Contribution On Income | 34.00% | |
Excess Capital Losses From Investments And Other Related Items [Member] | ||
Income Taxes [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 10,800 | |
Terphane Ltda [Member] | ||
Income Taxes [Line Items] | ||
BrazilianTaxCreditDeductionPeriod | 24 months | |
Current Effective Tax Rate Including Social Contribution On Income | 15.25% | |
LengthBrazilianTaxIncentive | 10 years |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate For Continuing Operations) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense at federal statutory rate | 35.00% | 35.00% |
State taxes, net of federal income tax benefit | 0.60% | 1.20% |
Income tax contingency accruals and tax settlements | 0.90% | 0.80% |
Unremitted earnings from foreign operations | (0.90%) | 1.00% |
Changes in estimates related to prior year tax provision | (0.20%) | (0.20%) |
Effective Income Tax Rate Reconciliation Deduction For Foreign Investment Adjustments | (0.30%) | |
Non-deductible expenses | 1.00% | 0.70% |
Valuation allowance for foreign operating loss carry-forwards | 0.10% | (0.40%) |
Research and development tax credit | (0.90%) | 0.00% |
Foreign rate differences | (0.90%) | (1.40%) |
Valuation allowance for capital loss carry-forwards | (1.10%) | (1.60%) |
Domestic production activities deduction | (2.70%) | (2.50%) |
Effective income tax rate for income from continuing operations | 30.60% | 32.60% |
Debt (Details)
Debt (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 01, 2016USD ($) | Apr. 23, 2012USD ($) | |
Secured Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | ||
Line Of Credit Facility Term | 5 years | ||
Line Of Credit Facility Additional Borrowing Capacity | 50,000,000 | ||
Long-term Line of Credit | $ 107,000,000 | ||
Line of credit facility, covenant terms, maximum debt to EBITDA ratio | 4 | ||
Line of credit facility, covenant terms, minimum adjusted EBIT-to-interest expense ratio | 2.50 | ||
Line Of Credit Facility, Covenant Terms, Maximum Aggregate Dividends | $ 100,000 | ||
Line of credit facility, covenant terms, percentage of shareholders' equity to net income | 50.00% | ||
Credit Spread Over London Interbank Offered Rate Basis Points | 1.75% | ||
Credit Facility covenant leverage ratio three times limitation | 3 | ||
Credit Facility limitation on dividend payments at leverage ratio greater than 3.00x | $ 4,000,000 | ||
Credit Facility, covenants, 50% of net income limitation when leverage ratio exceeds 3.00x | 50.00% | ||
Credit Facility covenant three point five times leverage ratio | 350.00% | ||
Credit Facility fixed charge coverage one pt two ratio limitation | 120.00% | ||
Unsecured Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000,000 | ||
Indebtedness To Adjusted Ebitda Ratio Greater Than Three Point Five But Less Than Or Equal To Four [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Spread Over London Interbank Offered Rate Basis Points | 2.50% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.45% | ||
Indebtedness To Adjusted Ebitda Ratio Greater Than Three But Less Than Or Equal To Three Point Five [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Spread Over London Interbank Offered Rate Basis Points | 2.25% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||
Indebtedness To Adjusted Ebitda Ratio Greater Than Two But Less Than Or Equal To Three [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Spread Over London Interbank Offered Rate Basis Points | 2.00% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | ||
Indebtedness To Adjusted Ebitda Ratio Greater Than One But Less Than Or Equal To Two [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Spread Over London Interbank Offered Rate Basis Points | 1.75% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||
Indebtedness To Adjusted Ebitda Ratio Less Than Or Equal To One [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 1 | ||
Credit Spread Over London Interbank Offered Rate Basis Points | 1.50% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||
Minimum | Indebtedness To Adjusted Ebitda Ratio Greater Than Three Point Five But Less Than Or Equal To Four [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 3.5 | ||
Minimum | Indebtedness To Adjusted Ebitda Ratio Greater Than Three But Less Than Or Equal To Three Point Five [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 3 | ||
Minimum | Indebtedness To Adjusted Ebitda Ratio Greater Than Two But Less Than Or Equal To Three [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 2 | ||
Minimum | Indebtedness To Adjusted Ebitda Ratio Greater Than One But Less Than Or Equal To Two [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 1 | ||
Maximum | Indebtedness To Adjusted Ebitda Ratio Greater Than Three Point Five But Less Than Or Equal To Four [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 4 | ||
Maximum | Indebtedness To Adjusted Ebitda Ratio Greater Than Three But Less Than Or Equal To Three Point Five [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 3.5 | ||
Maximum | Indebtedness To Adjusted Ebitda Ratio Greater Than Two But Less Than Or Equal To Three [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 3 | ||
Maximum | Indebtedness To Adjusted Ebitda Ratio Greater Than One But Less Than Or Equal To Two [Member] | |||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Covenant Terms Debt To Ebitda Ratio | 2 |
Contingencies (Details)
Contingencies (Details) | Jan. 08, 2013in |
Loss Contingencies [Line Items] | |
Minimum thickness of performance enhancing layer on films required to avoid antidumping duty order | 0.00001 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements [Abstract] | ||
Deferred Finance Costs, Net | $ 2.9 | $ 0.7 |