Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PotlatchDeltic Corporation | |
Entity Central Index Key | 0001338749 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 66,951,628 | |
Entity Shell Company | false | |
Entity File Number | 1-32729 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-0156045 | |
Entity Address, Address Line One | 601 West First Avenue | |
Entity Address, Address Line Two | Suite 1600 | |
Entity Address, City or Town | Spokane | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 99201 | |
City Area Code | (509) | |
Local Phone Number | 835-1500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock | |
Trading symbol(s) | PCH | |
Name of each exchange on which registered | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Income Statement [Abstract] | |||
Revenues | $ 208,880 | $ 181,716 | |
Costs and expenses: | |||
Cost of goods sold | 172,046 | 154,215 | |
Selling, general and administrative expenses | 14,207 | 16,570 | |
Gain on sale of facility | (9,176) | ||
Total costs and expenses | 186,253 | 161,609 | |
Operating income | 22,627 | 20,107 | |
Interest expense, net | [1] | (3,698) | (5,464) |
Loss on extinguishment of debt | (5,512) | ||
Pension settlement charge | (42,988) | ||
Non-operating pension and other postretirement employee benefit costs | (3,635) | (980) | |
(Loss) income before income taxes | (27,694) | 8,151 | |
Income taxes | 10,862 | (1,591) | |
Net (loss) income | $ (16,832) | $ 6,560 | |
Net (loss) income per share: | |||
Basic (in dollars per share) | $ (0.25) | $ 0.10 | |
Diluted (in dollars per share) | (0.25) | 0.10 | |
Dividends per share (in dollars per share) | $ 0.40 | $ 0.40 | |
Weighted-average shares outstanding: | |||
Basic (in shares) | 67,478 | 67,860 | |
Diluted (in shares) | 67,478 | 67,916 | |
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (16,832) | $ 6,560 |
Other comprehensive (loss) income, net of tax: | ||
Net loss arising during the period, net of tax benefit of $6,817 and $0 | (19,402) | |
Effect of pension settlement, net of tax benefit of $11,177 and $0 | 31,811 | |
Amortization of prior service credit included in net (loss) income, net of tax benefit of $76 and $561 | (215) | (1,597) |
Amortization of actuarial loss included in net (loss) income, net of tax expense of $1,189 and $971 | 3,384 | 2,763 |
Cash flow hedges, net of tax benefit of $1,810 and $364 | (38,525) | (8,513) |
Other comprehensive loss, net of tax | (22,947) | (7,347) |
Comprehensive loss | $ (39,779) | $ (787) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss arising during the period, tax benefit | $ 6,817 | $ 0 |
Effect of pension settlement, tax benefit | 11,177 | 0 |
Amortization of prior service credit included in net (loss) income, tax benefit | 76 | 561 |
Amortization of actuarial loss included in net (loss) income, tax expense | 1,189 | 971 |
Cash flow hedge, tax benefit | $ 1,810 | $ 364 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 79,484 | $ 83,310 |
Customer receivables, net | 23,356 | 14,167 |
Inventories, net | 55,707 | 65,781 |
Other current assets | 15,626 | 20,183 |
Total current assets | 174,173 | 183,441 |
Property, plant and equipment, net | 286,881 | 286,383 |
Investment in real estate held for development and sale | 72,582 | 74,233 |
Timber and timberlands, net | 1,630,496 | 1,638,663 |
Intangible assets, net | 16,854 | 17,049 |
Other long-term assets | 31,896 | 35,290 |
Total assets | 2,212,882 | 2,235,059 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 61,395 | 60,577 |
Current portion of long-term debt | 45,981 | 45,974 |
Current portion of pension and other postretirement employee benefits | 6,701 | 6,701 |
Total current liabilities | 114,077 | 113,252 |
Long-term debt | 710,748 | 710,495 |
Pension and other postretirement employee benefits | 141,921 | 115,463 |
Deferred tax liabilities, net | 11,445 | 20,165 |
Other long-term obligations | 85,077 | 48,853 |
Total liabilities | 1,063,268 | 1,008,228 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, authorized 4,000 shares, no shares issued | ||
Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 66,951 and 67,221 shares | 66,951 | 67,221 |
Additional paid-in capital | 1,668,122 | 1,666,299 |
Accumulated deficit | (415,153) | (359,330) |
Accumulated other comprehensive loss | (170,306) | (147,359) |
Total stockholders’ equity | 1,149,614 | 1,226,831 |
Total liabilities and stockholders' equity | $ 2,212,882 | $ 2,235,059 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, authorized | 4,000,000 | 4,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 66,951,000 | 67,221,000 |
Common stock, outstanding | 66,951,000 | 67,221,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (16,832) | $ 6,560 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 19,044 | 16,274 | |
Basis of real estate sold | 6,498 | 1,556 | |
Gain on sale of facility | (9,176) | ||
Loss on extinguishment of debt | 5,512 | ||
Change in deferred taxes | (12,383) | (16,099) | |
Pension and other postretirement employee benefits | 6,068 | 3,106 | |
Pension settlement charge | 42,988 | ||
Equity-based compensation expense | 1,885 | 1,617 | |
Other, net | 237 | (786) | |
Change in working capital and operating-related activities, net | 2,557 | 13,983 | |
Real estate development expenditures | (378) | (1,766) | |
Funding of pension and other postretirement employee benefits | (1,546) | (1,714) | |
Net cash provided by operating activities | 48,138 | 19,067 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Property, plant and equipment additions | (5,039) | (3,760) | |
Timberlands reforestation and roads | (4,310) | (4,242) | |
Acquisition of timber and timberlands | (4,190) | ||
Proceeds on sale of facility | 1,000 | 60,045 | |
Other, net | 1,505 | 130 | |
Net cash (used in) provided by investing activities | (11,034) | 52,173 | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Distributions to common stockholders | (26,941) | (27,065) | |
Repurchase of common stock | (12,355) | (10,158) | |
Proceeds from issue of long-term debt | 150,000 | ||
Repayment of long-term debt | (150,000) | ||
Premiums and fees on debt retirement | (4,865) | ||
Other, net | (242) | (213) | |
Net cash used in financing activities | (39,538) | (42,301) | |
Change in cash, cash equivalents and restricted cash | (2,434) | 28,939 | |
Cash, cash equivalents and restricted cash at beginning of period | 84,254 | 79,441 | |
Cash, cash equivalents and restricted cash at end of period | 81,820 | 108,380 | |
NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Long-term debt assumed by buyer in sale of facility | 29,000 | ||
Accrued property, plant and equipment additions | 1,380 | 2,590 | |
Accrued timberlands reforestation and roads | 260 | 17 | |
Cash and cash equivalents | 79,484 | 104,787 | |
Restricted cash included in other short-term and long-term assets | [1] | $ 2,336 | $ 3,593 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | |
[1] | Amounts included in restricted cash represent proceeds held by a qualified intermediary that are intended to be reinvested in timber and timberlands. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, beginning of period at Dec. 31, 2018 | $ 1,314,779 | $ 67,570 | $ 1,659,031 | $ (282,391) | $ (129,431) |
Balance, beginning of period (shares) at Dec. 31, 2018 | 67,570 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | 6,560 | 6,560 | |||
Shares issued for stock compensation | $ 297 | (297) | |||
Shares issued for stock compensation (shares) | 297 | ||||
Equity-based compensation expense | 1,617 | 1,617 | |||
Pension plans and OPEB obligations | 1,166 | 1,166 | |||
Cash flow hedges | (8,513) | (8,513) | |||
Common dividends, $0.40 per share | (27,065) | (27,065) | |||
Repurchase of common stock | $ (10,158) | $ (279) | (9,879) | ||
Repurchase of common stock (shares) | (278,947) | (279) | |||
Other transactions, net | 99 | (99) | |||
Balance, end of period at Mar. 31, 2019 | $ 1,278,386 | $ 67,588 | 1,660,450 | (312,874) | (136,778) |
Balance, end of period (shares) at Mar. 31, 2019 | 67,588 | ||||
Balance, beginning of period at Dec. 31, 2019 | $ 1,226,831 | $ 67,221 | 1,666,299 | (359,330) | (147,359) |
Balance, beginning of period (shares) at Dec. 31, 2019 | 67,221,000 | 67,221 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | $ (16,832) | (16,832) | |||
Shares issued for stock compensation | $ 131 | (131) | |||
Shares issued for stock compensation (shares) | 131 | ||||
Equity-based compensation expense | 1,885 | 1,885 | |||
Pension plans and OPEB obligations | 15,578 | 15,578 | |||
Cash flow hedges | (38,525) | (38,525) | |||
Common dividends, $0.40 per share | (26,941) | (26,941) | |||
Repurchase of common stock | $ (12,355) | $ (401) | (11,954) | ||
Repurchase of common stock (shares) | (400,917) | (401) | |||
Other transactions, net | $ (27) | 69 | (96) | ||
Balance, end of period at Mar. 31, 2020 | $ 1,149,614 | $ 66,951 | $ 1,668,122 | $ (415,153) | $ (170,306) |
Balance, end of period (shares) at Mar. 31, 2020 | 66,951,000 | 66,951 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Common dividends, per share | $ 0.40 | $ 0.40 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION For purposes of this report, any reference to “ PotlatchDeltic Potlatch the company we us our We are primarily engaged in activities associated with timberland management, including the sale of timber, the management of approximately 1.9 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacture and sale of wood products and the development of real estate. The accompanying unaudited Condensed Consolidated Financial Statements Notes to Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements Commitments and Contingencies At any given time, we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may have to pay in connection with any legal proceeding would have a materially adverse effect on our consolidated financial position or net cash flow. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Recently Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Condensed Consolidated Financial Statements In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The adoption of this standard New Accounting Standards Being Evaluated In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting Condensed Consolidated Financial Statements |
Sale of Deltic MDF Facility
Sale of Deltic MDF Facility | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Deltic MDF Facility | NOTE 3. SALE OF DELTIC MDF FACILITY On December 20, 2018, we entered into an Asset Purchase and Sale Agreement (the Agreement) with Roseburg Forest Products Co. to sell the Deltic MDF facility for $92.0 million, consisting of $63.0 million in cash and assumption of $29.0 million of revenue bonds. The purchase price was subject to post-closing adjustments for certain changes in working capital as defined in the Agreement. The transaction closed on February 12, 2019 resulting in a $9.2 million pre-tax gain on sale. Net proceeds received in February 2019 after closing costs and other expenses were $60.0 million. The net proceeds were reduced by $1.2 million during the second quarter of 2019 following the finalization of the post-closing working capital adjustments. A portion of the purchase price was escrowed pending satisfaction of certain covenants as outlined in the Agreement. These funds were fully released to us during the three months ended March 31, 2020. In addition, we had a carryover tax basis in the facility from the Deltic merger, and as a result, we recorded a reduction to deferred tax liabilities and increase to income taxes payable of $15.8 million at the date of sale. The sale of the MDF facility was not considered a strategic shift that has or will have a major effect on our operations or financial results and therefore did not meet the requirements for presentation as discontinued operations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 4. REVENUE RECOGNITION The following table represents our revenues by major product. For additional information regarding our segments, see Note 5: Segment Information Three Months Ended March 31, (in thousands) 2020 2019 Timberlands Northern region Sawlogs $ 41,407 $ 32,499 Pulpwood 1,435 2,061 Stumpage 316 106 Other 303 211 Total Northern revenues 43,461 34,877 Southern region Sawlogs 23,939 18,437 Pulpwood 11,201 11,811 Stumpage 829 322 Other 2,995 2,711 Total Southern revenues 38,964 33,281 Total Timberlands revenues 82,425 68,158 Wood Products Lumber 111,939 90,505 Residuals and Panels 33,061 41,801 Total Wood Products revenues 145,000 132,306 Real Estate Rural real estate 7,292 4,219 Development real estate 2,292 673 Other 1,385 1,272 Total Real Estate revenues 10,969 6,164 Total Segment Revenues 238,394 206,628 Intersegment Timberlands revenues 1 (29,514 ) (24,912 ) Total consolidated revenues $ 208,880 $ 181,716 1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. Contract Balances In general, a customer receivable is recorded as we deliver wood products, logs and residuals. We generally receive payment shortly after products have been received by our customers. At March 31, 2020 and December 31, 2019, we recorded $4.8 million and $5.5 million, respectively, for contract liabilities recorded as deferred revenue. These contract liabilities predominately relate to hunting and other access rights on our timberlands and member related activities at the Chenal Country Club. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except membership initiation fees at the country club which typically are recognized up to 10 years. Other contract asset and liability balances, such as prepayments, are immaterial. For real estate sales, we typically receive the entire consideration in cash at closing. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 5. SEGMENT INFORMATION Our businesses are organized into three reportable operating segments: Timberlands, Wood Products and Real Estate. The Timberlands segment includes planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights contracts, oil and gas royalties and carbon sequestration. The Wood Products segment manufactures and markets lumber and plywood. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, master planned community development and a country club. The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements Management primarily evaluates the performance of its segments and allocates resources to them based upon Adjusted EBITDDA. EBITDDA is calculated as net (loss) income before interest expense, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Management uses Adjusted EBITDDA to compare the operating performance of our segments on a consistent basis and to evaluate the performance and effectiveness of each segment’s operational strategies. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies. The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to (loss) income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements . Three Months Ended March 31, (in thousands) 2020 2019 Revenues: Timberlands $ 82,425 $ 68,158 Wood Products 145,000 132,306 Real Estate 10,969 6,164 238,394 206,628 Intersegment Timberlands revenues 1 (29,514 ) (24,912 ) Consolidated revenues $ 208,880 $ 181,716 Adjusted EBITDDA: Timberlands $ 34,982 $ 26,850 Wood Products 13,229 7,226 Real Estate 7,340 2,703 Corporate (8,672 ) (10,654 ) Eliminations and adjustments 692 2,127 Total Adjusted EBITDDA 47,571 28,252 Basis of real estate sold (6,498 ) (1,556 ) Depreciation, depletion and amortization (18,638 ) (15,797 ) Interest expense, net 2 (3,698 ) (5,464 ) Loss on extinguishment of debt — (5,512 ) Pension settlement charge (42,988 ) — Non-operating pension and other postretirement employee benefits (3,635 ) (980 ) Gain on disposal of fixed assets 192 32 Gain on sale of facility — 9,176 (Loss) income before income taxes $ (27,694 ) $ 8,151 Depreciation, depletion and amortization: Timberlands $ 12,591 $ 10,265 Wood Products 5,630 5,042 Real Estate 160 209 Corporate 257 281 18,638 15,797 Bond discounts and deferred loan fees 2 406 477 Total depreciation, depletion and amortization $ 19,044 $ 16,274 Basis of real estate sold: Real Estate $ 6,504 $ 1,588 Eliminations and adjustments (6 ) (32 ) Total basis of real estate sold $ 6,498 $ 1,556 1 2 Condensed Consolidated Statements of Operations |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NOTE 6. EARNINGS PER SHARE The following table reconciles the number of shares used in calculating basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2020 2019 Net (loss) income $ (16,832 ) $ 6,560 Basic weighted-average shares outstanding 67,478 67,860 Incremental shares due to: Performance shares — 36 Restricted stock units — 20 Diluted weighted-average shares outstanding 67,478 67,916 Basic net (loss) income per share $ (0.25 ) $ 0.10 Diluted net (loss) income per share $ (0.25 ) $ 0.10 For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award. For the three months ended March 31, 2020 and 2019, there were approximately 317,000 and 90,000 stock-based awards that were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Anti-dilutive stock-based awards could be dilutive in future periods. Share Repurchase Program On August 30, 2018, our board of directors authorized management to repurchase up to $100.0 million of common stock with no time limit set for the repurchase (the 2018 Repurchase Program). During the three months ended March 31, 2020 and 2019, we repurchased 400,917 and 278,947 shares of common stock (at a total consideration of $12.4 million and $10.2 million), respectively, under the 2018 Repurchase Program. All common stock purchases under the 2018 Repurchase Program were made in open-market transactions. At March 31, 2020, we had remaining authorization of $62.5 million for future stock repurchases under the 2018 Repurchase Program. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. There were no unsettled repurchases as of March 31, 2020. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit. |
Certain Balance Sheet Component
Certain Balance Sheet Components | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Certain Balance Sheet Components | NOTE 7. CERTAIN BALANCE SHEET COMPONENTS Inventories (in thousands) March 31, 2020 December 31, 2019 Logs $ 24,906 $ 33,313 Lumber, panels and veneer 29,338 31,639 Materials and supplies 13,465 12,831 Total inventories 67,709 77,783 Less: LIFO reserve (12,002 ) (12,002 ) Total inventories, net $ 55,707 $ 65,781 Property, plant and equipment (in thousands) March 31, 2020 December 31, 2019 Property, plant and equipment $ 503,753 $ 498,113 Less: accumulated depreciation (216,872 ) (211,730 ) Total property, plant and equipment, net $ 286,881 $ 286,383 Timber and timberlands (in thousands) March 31, 2020 December 31, 2019 Timber and timberlands $ 1,547,657 $ 1,554,882 Logging roads 82,839 83,781 Total timber and timberlands, net $ 1,630,496 $ 1,638,663 Accounts payable and accrued liabilities (in thousands) March 31, 2020 December 31, 2019 Accrued payroll and benefits $ 16,080 $ 12,920 Accounts payable 11,382 12,734 Accrued interest 5,488 6,946 Accrued taxes 8,620 6,638 Deferred revenue 4,758 5,514 Operating lease liabilities 4,885 4,998 Other current liabilities 10,182 10,827 Total accounts payable and accrued liabilities $ 61,395 $ 60,577 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 8. DEBT At March 31, 2020, our total outstanding long-term debt included $693.5 million of term loans under our Second Amended and Restated Term Loan Agreement (Amended Term Loan Agreement) with our primary lender, of which $46.0 million matures in December 2020. Certain borrowings under the Amended Term Loan Agreement are at variable rates of one or three-month LIBOR plus a spread between 1.85% and 2.15%. We have entered into interest rate swaps for these variable rate term loans to fix the interest rate. See Note: 9 Derivative Instruments At March 31, 2020 there were no borrowings under our $380.0 million revolving line of credit and approximately $1.0 million of our revolving line of credit was utilized for outstanding letters of credit. As provided in the revolving line of credit agreement, borrowings may be increased by up to an additional $420.0 million. The revolving line of credit agreement also includes a sublimit of $75.0 million for the issuance of standby letters of credit and a sublimit of $25.0 million for swing line loans. Usage under either or both subfacilities reduces availability under the revolving line of credit. We may utilize borrowings under the credit facility to, among other things, refinance existing indebtedness and provide funding for working capital requirements, capital projects, acquisitions and other general corporate expenditures. We were in compliance with all debt and credit agreement covenants at March 31, 2020. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | NOTE 9. DERIVATIVE INSTRUMENTS From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset or liability to a particular risk are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. At March 31, 2020, we have six interest rate swaps associated with $397.5 million of term loan debt. The cash flow hedges convert variable rates ranging from three-month and one-month LIBOR plus 1.85% to 2.15%, to fixed rates ranging from 3.17% to 4.82%. Our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedges. In March 2020, we entered into $653.5 million of forward starting interest rate swaps. These forward starting interest rate swaps effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on future debt refinancing. We entered into these forward starting interest rate swaps in order to lock in fixed rates on our anticipated future refinancing of $653.5 million of term loan debt maturing December 2020 through January 2029. The fixed interest rates for these forward swaps range from 0.85% to 1.17%. The variable rate component on these forward interest rate swaps is one-month LIBOR. Accordingly, the forward rate swaps were designated as cash flow hedges. In addition, these cash flow hedges require settlement on the stated maturity date for each respective term loan currently outstanding. The following table presents the gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets Asset Derivatives Liability Derivatives (in thousands) Location March 31, 2020 December 31, 2019 Location March 31, 2020 December 31, 2019 Derivatives designated in cash flow hedging relationships: Interest rate contracts Other assets, current 1 $ — $ — Accounts payable and accrued liabilities 1 $ 1,368 $ — Interest rate contracts Other assets, non-current — 1,601 Other long-term obligations 59,764 22,398 $ — $ 1,601 $ 61,132 $ 22,398 1 The following table details the effect of derivatives on our Condensed Consolidated Statements of Operations Three Months Ended March 31, (in thousands) Location 2020 2019 Derivatives designated in fair value hedging relationships: Interest rate contracts Realized loss on interest rate contracts 1 Interest expense $ — $ (18 ) Loss on hedged debt basis adjustment included in debt extinguishment — (165 ) $ — $ (183 ) Derivatives designated in cash flow hedging relationships: Interest rate contracts Loss recognized in other comprehensive loss, net of tax $ (39,363 ) $ (8,594 ) Loss reclassified from accumulated other comprehensive loss 1 Interest expense $ (838 ) $ (81 ) Interest expense, net $ 3,698 $ 5,464 1 At March 31, 2020, approximately $8.3 million of net losses are expected to be reclassified into earnings over the next 12 months. However, this expected amount to be reclassified into earnings is subject to volatility as the ultimate amount recognized in earnings is based on the market LIBOR rate at the time of cash settlement. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Fair Value Measurements | NOTE 10. FAIR VALUE MEASUREMENTS The following table presents the estimated fair values of our financial instruments: March 31, 2020 December 31, 2019 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Derivative assets related to interest rate swaps (Level 2) $ — $ — $ 1,601 $ 1,601 Derivative liabilities related to interest rate swaps (Level 2) $ (61,132 ) $ (61,132 ) $ (22,398 ) $ (22,398 ) Long-term debt, including current portion (Level 2): Term loans $ (689,982 ) $ (715,596 ) $ (689,820 ) $ (703,437 ) Revenue bonds (65,735 ) (63,513 ) (65,735 ) (68,200 ) Medium-term notes (3,000 ) (3,563 ) (3,000 ) (3,480 ) Total long-term debt 1 $ (758,717 ) $ (782,672 ) $ (758,555 ) $ (775,117 ) Company owned life insurance asset (COLI) (Level 3) $ 3,014 $ 3,014 $ 4,157 $ 4,157 1 The carrying amount of long-term debt includes principal and unamortized discounts. The fair value of interest rate swaps are determined using a discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity and uses observable market-based inputs, including interest rate forward curves. The fair value of our long-term debt is estimated based upon quoted market prices for similar debt issues or estimated based on average market prices for comparable debt when there is no quoted market price. The contract value of our company owned life insurance is based on the amount at which it could be redeemed and, accordingly, approximates fair value. We believe that our other financial instruments, including cash and cash equivalents, receivables and payables have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Equity-Based Compensation | NOTE 11. EQUITY-BASED COMPENSATION At March 31, 2020, approximately 1.2 million shares are available for future use under our long-term incentive plan. Share-based compensation activity during the three months ended March 31, 2020 included the following: (Shares in thousands) Granted Vested Forfeited Performance Share Awards (PSAs) 125,001 — — Restricted Stock Units (RSUs) 41,664 — — Approximately 0.1 million shares of common stock were issued during the three months ended March 31, 2020 as a result of PSA and RSU vesting during 2019. The following table details equity-based compensation expense and the related income tax benefit: Three Months Ended March 31, (in thousands) 2020 2019 Equity-based compensation expense: Performance share awards $ 1,158 $ 1,044 Restricted stock units 708 557 Deferred compensation stock equivalent units expense 19 16 Total equity-based compensation expense $ 1,885 $ 1,617 Total tax benefit recognized for equity-based expense $ 83 $ 72 P erformance Share Awards PSAs granted under the stock incentive plans have a three-year three-year three-year The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards in 2020: Stock price as of valuation date $ 42.16 Risk-free rate 1.42 % Expected volatility 25.74 % Expected dividend yield (assuming full reinvestment) — Expected term (years) 3.00 Restricted Stock Units RSU awards accrue dividend equivalents based on dividends paid during the RSU vesting period. The dividend equivalents will be converted into additional RSUs that will vest in the same manner as the underlying RSUs to which they relate. Therefore, the shares are not considered participating securities. The terms of the awards state that the RSUs will vest in a given time period of one to three years and the terms of certain awards follow a vesting schedule within the given time period. The fair value of RSUs granted equaled our common share price on the date of grant factoring in any required post-vesting holding periods. The weighted average fair value of all RSUs granted during the three months ended March 31, 2020 was $42.16. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES As a real estate investment trust (REIT), we generally are not subject to federal and state corporate income taxes on income of the REIT that we distribute to our shareholders. We conduct certain activities through our taxable REIT subsidiaries (TRS), which are subject to corporate level federal and state income taxes. These taxable activities are principally comprised of our wood products manufacturing operations and certain real estate investments. Therefore, income tax expense or benefit is primarily due to income or loss of the TRS, as well as permanent book versus tax differences. During the three months ended March 31, 2020 we recorded an income tax benefit of approximately $11.2 million associated with the $43.0 million pension settlement charge. Additionally, we recorded an increase in deferred tax assets of $6.8 million associated with the $26.2 million remeasurement of our pension plan obligations. See Note 14: Pension and Other Postretirement Employee Benefits for further details. During the three months ended March 31, 2019 we recorded a reduction to deferred tax liabilities and an increase to income taxes payable of $15.8 million related to the sale of the Deltic MDF facility. See Note 3: Sale of Deltic MDF Facility for further details. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 13. LEASES We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The following table presents supplemental balance sheet information related to lease assets and liabilities: (in thousands) Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Other long-term assets $ 14,475 $ 15,772 Finance lease assets 1 Property, plant and equipment, net 3,673 2,360 Total lease assets $ 18,148 $ 18,132 Liabilities Current Operating lease liabilities Accounts payable and accrued liabilities $ 4,885 $ 4,998 Finance lease liabilities Accounts payable and accrued liabilities 972 644 Noncurrent Operating lease liabilities Other long-term obligations 9,569 10,775 Finance lease liabilities Other long-term obligations 2,676 1,703 Total lease liabilities $ 18,102 $ 18,120 1 The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2020 2019 Operating lease costs 1 $ 1,425 $ 1,410 Finance lease costs Amortization of leased assets 213 21 Interest on lease liabilities 27 5 Net lease costs $ 1,665 $ 1,436 1 The following tables presents supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,506 $ 1,522 Operating cash flows for finance leases $ 27 $ 5 Financing cash flows for finance leases $ 215 $ 27 Leased assets exchanged for new lease liabilities Operating leases $ 38 $ 268 Finance leases $ 1,517 $ 508 |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Postretirement Employee Benefits | NOTE 14. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS In February 2020 we purchased a group annuity contract from an insurance company to transfer $101.1 million of our outstanding pension benefit obligation related to our qualified pension plans to the insurance company. This transaction was funded with plan assets. As a result of the transaction, the insurance company assumed responsibility for annuity administration and benefit payments to select retirees, with no change to their monthly retirement benefit payment amounts. In connection with this transaction we recorded a non-cash pretax settlement charge of $ 43.0 million during the three months ended March 31, 2020 in non-operating expense, net, accelerating the recognition of actuarial losses included in accumulated other comprehensive loss that would have been recognized in future periods. The settlement triggered a remeasurement of plan assets and liabilities. We updated the discount rate used to measure our projected benefit obligation for the qualified pension plans as of February 29, 2020 and to calculate the related net periodic benefit cost for the remainder of 2020 to 2.95% from 3.40%. All other pension assumptions remain unchanged. The net effect of the remeasurement was a reduction in the funded status of our qualified pension plans of approximately $26.2 million, primarily driven by the decrease in the discount rate. The following tables detail the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB): Three Months Ended March 31, Pension OPEB (in thousands) 2020 2019 2020 2019 Service cost $ 2,290 $ 2,021 $ 143 $ 105 Interest cost 3,564 4,539 375 419 Expected return on plan assets (4,586 ) (5,554 ) — — Amortization of prior service cost (credit) 28 53 (319 ) (2,211 ) Amortization of actuarial loss 4,154 3,427 419 307 Net periodic cost (benefit) before pension settlement charge 5,450 4,486 618 (1,380 ) Pension settlement charge 42,988 — — — Total net periodic cost (benefit) $ 48,438 $ 4,486 $ 618 $ (1,380 ) During the three months ended March 31, 2020 and 2019, funding of pension and other postretirement employee benefit plans was $1.5 million and $1.7 million, respectively. Further, as allowed under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed in March 2020, we will defer approximately $4.4 million of required 2020 contributions for our qualified pension plans until 2021. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | NOTE 15. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS During 2020, changes in amounts included in our accumulated other comprehensive loss (AOCL) by component on our Condensed Consolidated Balance Sheets Three Months Ended March 31, (in thousands) 2020 2019 Pension Plans Balance at beginning of period $ 117,028 $ 129,253 Net loss arising during the period 19,402 — Effect of pension settlement (31,811 ) — Amounts reclassified from AOCL to earnings (3,095 ) (2,575 ) Balance at end of period $ 101,524 $ 126,678 Other Postretirement Benefit Plans Balance at beginning of period $ 10,331 $ (1,382 ) Amounts reclassified from AOCL to earnings (74 ) 1,409 Balance at end of period $ 10,257 $ 27 Cash Flow Hedges Balance at beginning of period $ 20,000 $ 1,560 Net loss arising during the period 39,363 8,594 Amounts reclassified from AOCL to earnings (838 ) (81 ) Balance at end of period $ 58,525 $ 10,073 Accumulated other comprehensive loss, end of period $ 170,306 $ 136,778 See Note 14: Pension and Other Postretirement Employee Benefits Note 9: Derivative Instruments |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16. SUBSEQUENT EVENT On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. On March 13, 2020, the United States declared a national emergency concerning the outbreak, and all states and several municipalities have declared public health emergencies. Our Timberlands and Wood Products businesses have been deemed an essential business in states that have issued stay-at-home orders and as such, we plan to continue to operate each of our businesses at full capacity where market conditions allow while maintaining the health and safety of our employees, contractors, suppliers and customers. In our Wood Products segment, our industrial grade plywood product line has been more adversely impacted. As a result of decreased demand, we temporarily suspended operations at our St. Maries, Idaho industrial plywood facility beginning April 20, 2020. We will re-start our plywood facility when we have received enough orders to justify re-opening the facility, which we estimate to be sometime in May 2020. Further, we expect the economic impacts from COVID-19 to negatively impact our Chenal Valley real estate development. Additionally, we anticipate our current cash balances, cash flows from operations and our available sources of liquidity will be sufficient to meet our cash requirements. At March 31, 2020 we had approximately $79.5 million in cash and cash equivalents and availability of $379.0 million on our revolving line of credit. As the impact of COVID-19 pandemic on the economy and our operations evolves, we will continue to assess our liquidity needs. In the event of a sustained market deterioration, we may be required to assess liquidity options available to us, including accessing our revolving line of credit, reassessing our capital allocation strategy including the funding of our quarterly dividend, or take appropriate actions such as only proceeding with operating and capital spending that is critical. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Standards Recently Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Condensed Consolidated Financial Statements In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement The adoption of this standard New Accounting Standards Being Evaluated In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting Condensed Consolidated Financial Statements |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues by Major Product | The following table represents our revenues by major product. For additional information regarding our segments, see Note 5: Segment Information Three Months Ended March 31, (in thousands) 2020 2019 Timberlands Northern region Sawlogs $ 41,407 $ 32,499 Pulpwood 1,435 2,061 Stumpage 316 106 Other 303 211 Total Northern revenues 43,461 34,877 Southern region Sawlogs 23,939 18,437 Pulpwood 11,201 11,811 Stumpage 829 322 Other 2,995 2,711 Total Southern revenues 38,964 33,281 Total Timberlands revenues 82,425 68,158 Wood Products Lumber 111,939 90,505 Residuals and Panels 33,061 41,801 Total Wood Products revenues 145,000 132,306 Real Estate Rural real estate 7,292 4,219 Development real estate 2,292 673 Other 1,385 1,272 Total Real Estate revenues 10,969 6,164 Total Segment Revenues 238,394 206,628 Intersegment Timberlands revenues 1 (29,514 ) (24,912 ) Total consolidated revenues $ 208,880 $ 181,716 1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Information by Business Segment | Three Months Ended March 31, (in thousands) 2020 2019 Revenues: Timberlands $ 82,425 $ 68,158 Wood Products 145,000 132,306 Real Estate 10,969 6,164 238,394 206,628 Intersegment Timberlands revenues 1 (29,514 ) (24,912 ) Consolidated revenues $ 208,880 $ 181,716 Adjusted EBITDDA: Timberlands $ 34,982 $ 26,850 Wood Products 13,229 7,226 Real Estate 7,340 2,703 Corporate (8,672 ) (10,654 ) Eliminations and adjustments 692 2,127 Total Adjusted EBITDDA 47,571 28,252 Basis of real estate sold (6,498 ) (1,556 ) Depreciation, depletion and amortization (18,638 ) (15,797 ) Interest expense, net 2 (3,698 ) (5,464 ) Loss on extinguishment of debt — (5,512 ) Pension settlement charge (42,988 ) — Non-operating pension and other postretirement employee benefits (3,635 ) (980 ) Gain on disposal of fixed assets 192 32 Gain on sale of facility — 9,176 (Loss) income before income taxes $ (27,694 ) $ 8,151 Depreciation, depletion and amortization: Timberlands $ 12,591 $ 10,265 Wood Products 5,630 5,042 Real Estate 160 209 Corporate 257 281 18,638 15,797 Bond discounts and deferred loan fees 2 406 477 Total depreciation, depletion and amortization $ 19,044 $ 16,274 Basis of real estate sold: Real Estate $ 6,504 $ 1,588 Eliminations and adjustments (6 ) (32 ) Total basis of real estate sold $ 6,498 $ 1,556 1 2 Condensed Consolidated Statements of Operations |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share | The following table reconciles the number of shares used in calculating basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2020 2019 Net (loss) income $ (16,832 ) $ 6,560 Basic weighted-average shares outstanding 67,478 67,860 Incremental shares due to: Performance shares — 36 Restricted stock units — 20 Diluted weighted-average shares outstanding 67,478 67,916 Basic net (loss) income per share $ (0.25 ) $ 0.10 Diluted net (loss) income per share $ (0.25 ) $ 0.10 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventories | Inventories (in thousands) March 31, 2020 December 31, 2019 Logs $ 24,906 $ 33,313 Lumber, panels and veneer 29,338 31,639 Materials and supplies 13,465 12,831 Total inventories 67,709 77,783 Less: LIFO reserve (12,002 ) (12,002 ) Total inventories, net $ 55,707 $ 65,781 |
Schedule of Property, Plant and Equipment | Property, plant and equipment (in thousands) March 31, 2020 December 31, 2019 Property, plant and equipment $ 503,753 $ 498,113 Less: accumulated depreciation (216,872 ) (211,730 ) Total property, plant and equipment, net $ 286,881 $ 286,383 |
Schedule of Timber and Timberlands | Timber and timberlands (in thousands) March 31, 2020 December 31, 2019 Timber and timberlands $ 1,547,657 $ 1,554,882 Logging roads 82,839 83,781 Total timber and timberlands, net $ 1,630,496 $ 1,638,663 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities (in thousands) March 31, 2020 December 31, 2019 Accrued payroll and benefits $ 16,080 $ 12,920 Accounts payable 11,382 12,734 Accrued interest 5,488 6,946 Accrued taxes 8,620 6,638 Deferred revenue 4,758 5,514 Operating lease liabilities 4,885 4,998 Other current liabilities 10,182 10,827 Total accounts payable and accrued liabilities $ 61,395 $ 60,577 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Gross Fair Values of Derivative Instruments | The following table presents the gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets Asset Derivatives Liability Derivatives (in thousands) Location March 31, 2020 December 31, 2019 Location March 31, 2020 December 31, 2019 Derivatives designated in cash flow hedging relationships: Interest rate contracts Other assets, current 1 $ — $ — Accounts payable and accrued liabilities 1 $ 1,368 $ — Interest rate contracts Other assets, non-current — 1,601 Other long-term obligations 59,764 22,398 $ — $ 1,601 $ 61,132 $ 22,398 1 |
Effect of Derivatives on Condensed Consolidated Statements of Operations | The following table details the effect of derivatives on our Condensed Consolidated Statements of Operations Three Months Ended March 31, (in thousands) Location 2020 2019 Derivatives designated in fair value hedging relationships: Interest rate contracts Realized loss on interest rate contracts 1 Interest expense $ — $ (18 ) Loss on hedged debt basis adjustment included in debt extinguishment — (165 ) $ — $ (183 ) Derivatives designated in cash flow hedging relationships: Interest rate contracts Loss recognized in other comprehensive loss, net of tax $ (39,363 ) $ (8,594 ) Loss reclassified from accumulated other comprehensive loss 1 Interest expense $ (838 ) $ (81 ) Interest expense, net $ 3,698 $ 5,464 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Estimated Fair Value of Financial Instruments | The following table presents the estimated fair values of our financial instruments: March 31, 2020 December 31, 2019 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Derivative assets related to interest rate swaps (Level 2) $ — $ — $ 1,601 $ 1,601 Derivative liabilities related to interest rate swaps (Level 2) $ (61,132 ) $ (61,132 ) $ (22,398 ) $ (22,398 ) Long-term debt, including current portion (Level 2): Term loans $ (689,982 ) $ (715,596 ) $ (689,820 ) $ (703,437 ) Revenue bonds (65,735 ) (63,513 ) (65,735 ) (68,200 ) Medium-term notes (3,000 ) (3,563 ) (3,000 ) (3,480 ) Total long-term debt 1 $ (758,717 ) $ (782,672 ) $ (758,555 ) $ (775,117 ) Company owned life insurance asset (COLI) (Level 3) $ 3,014 $ 3,014 $ 4,157 $ 4,157 1 The carrying amount of long-term debt includes principal and unamortized discounts. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Share-based Compensation Activity | Share-based compensation activity during the three months ended March 31, 2020 included the following: (Shares in thousands) Granted Vested Forfeited Performance Share Awards (PSAs) 125,001 — — Restricted Stock Units (RSUs) 41,664 — — |
Details of Equity-Based Compensation Expense and Related Income Tax Benefit | The following table details equity-based compensation expense and the related income tax benefit: Three Months Ended March 31, (in thousands) 2020 2019 Equity-based compensation expense: Performance share awards $ 1,158 $ 1,044 Restricted stock units 708 557 Deferred compensation stock equivalent units expense 19 16 Total equity-based compensation expense $ 1,885 $ 1,617 Total tax benefit recognized for equity-based expense $ 83 $ 72 |
Fair Value of Performance Share Awards | The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards in 2020: Stock price as of valuation date $ 42.16 Risk-free rate 1.42 % Expected volatility 25.74 % Expected dividend yield (assuming full reinvestment) — Expected term (years) 3.00 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related Leases assets and liabilities | The following table presents supplemental balance sheet information related to lease assets and liabilities: (in thousands) Classification March 31, 2020 December 31, 2019 Assets Operating lease assets Other long-term assets $ 14,475 $ 15,772 Finance lease assets 1 Property, plant and equipment, net 3,673 2,360 Total lease assets $ 18,148 $ 18,132 Liabilities Current Operating lease liabilities Accounts payable and accrued liabilities $ 4,885 $ 4,998 Finance lease liabilities Accounts payable and accrued liabilities 972 644 Noncurrent Operating lease liabilities Other long-term obligations 9,569 10,775 Finance lease liabilities Other long-term obligations 2,676 1,703 Total lease liabilities $ 18,102 $ 18,120 1 |
Schedule of Components of Lease Expense | The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2020 2019 Operating lease costs 1 $ 1,425 $ 1,410 Finance lease costs Amortization of leased assets 213 21 Interest on lease liabilities 27 5 Net lease costs $ 1,665 $ 1,436 1 |
Schedule of Supplemental Cash Flow Information Related Leases | The following tables presents supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,506 $ 1,522 Operating cash flows for finance leases $ 27 $ 5 Financing cash flows for finance leases $ 215 $ 27 Leased assets exchanged for new lease liabilities Operating leases $ 38 $ 268 Finance leases $ 1,517 $ 508 |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Components of Net Periodic Cost (Benefit) | The following tables detail the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB): Three Months Ended March 31, Pension OPEB (in thousands) 2020 2019 2020 2019 Service cost $ 2,290 $ 2,021 $ 143 $ 105 Interest cost 3,564 4,539 375 419 Expected return on plan assets (4,586 ) (5,554 ) — — Amortization of prior service cost (credit) 28 53 (319 ) (2,211 ) Amortization of actuarial loss 4,154 3,427 419 307 Net periodic cost (benefit) before pension settlement charge 5,450 4,486 618 (1,380 ) Pension settlement charge 42,988 — — — Total net periodic cost (benefit) $ 48,438 $ 4,486 $ 618 $ (1,380 ) |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | During 2020, changes in amounts included in our accumulated other comprehensive loss (AOCL) by component on our Condensed Consolidated Balance Sheets Three Months Ended March 31, (in thousands) 2020 2019 Pension Plans Balance at beginning of period $ 117,028 $ 129,253 Net loss arising during the period 19,402 — Effect of pension settlement (31,811 ) — Amounts reclassified from AOCL to earnings (3,095 ) (2,575 ) Balance at end of period $ 101,524 $ 126,678 Other Postretirement Benefit Plans Balance at beginning of period $ 10,331 $ (1,382 ) Amounts reclassified from AOCL to earnings (74 ) 1,409 Balance at end of period $ 10,257 $ 27 Cash Flow Hedges Balance at beginning of period $ 20,000 $ 1,560 Net loss arising during the period 39,363 8,594 Amounts reclassified from AOCL to earnings (838 ) (81 ) Balance at end of period $ 58,525 $ 10,073 Accumulated other comprehensive loss, end of period $ 170,306 $ 136,778 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) a in Millions | Mar. 31, 2020a |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Timber And Timberlands Acres Owned | 1.9 |
Sale of Deltic MDF Facility (Na
Sale of Deltic MDF Facility (Narrative) (Details) - USD ($) $ in Thousands | Feb. 12, 2019 | Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 20, 2018 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Pre-tax gain on sale of facility | $ 9,176 | |||||
Deltic MDF Facility [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Reduction to deferred tax liabilities | $ (15,800) | |||||
Increase to income taxes payable | 15,800 | |||||
Roseburg Forest Products Co [Member] | Deltic MDF Facility [Member] | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Total sale price | $ 92,000 | |||||
Cash sale price | 63,000 | |||||
Assumption sale price of revenue bonds | $ 29,000 | |||||
Pre-tax gain on sale of facility | $ 9,200 | |||||
Net proceeds received after closing costs and other expenses | $ 60,000 | |||||
Post-closing working capital adjustments | $ 1,200 | |||||
Reduction to deferred tax liabilities | (15,800) | |||||
Increase to income taxes payable | $ 15,800 |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Revenues by Major Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 208,880 | $ 181,716 | |
Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 238,394 | 206,628 | |
Intersegment Eliminations [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | [1] | (29,514) | (24,912) |
Timberlands [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 82,425 | 68,158 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 43,461 | 34,877 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 41,407 | 32,499 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 1,435 | 2,061 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Stumpage [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 316 | 106 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 303 | 211 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 38,964 | 33,281 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 23,939 | 18,437 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 11,201 | 11,811 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Stumpage [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 829 | 322 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 2,995 | 2,711 | |
Wood Products [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 145,000 | 132,306 | |
Wood Products [Member] | Operating Segments [Member] | Lumber [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 111,939 | 90,505 | |
Wood Products [Member] | Operating Segments [Member] | Residuals and Panels [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 33,061 | 41,801 | |
Real Estate Segment [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 10,969 | 6,164 | |
Real Estate Segment [Member] | Operating Segments [Member] | Rural Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 7,292 | 4,219 | |
Real Estate Segment [Member] | Operating Segments [Member] | Development Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 2,292 | 673 | |
Real Estate Segment [Member] | Operating Segments [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | [1] | $ 1,385 | $ 1,272 |
[1] | Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition [Line Items] | ||
Contract liabilities related to hunting and other access rights | $ 4.8 | $ 5.5 |
Membership Initiation Fees [Member] | ||
Revenue Recognition [Line Items] | ||
Contract liability recognized period | 10 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information (Summary Of
Segment Information (Summary Of Information By Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 208,880 | $ 181,716 | |
Adjusted EBITDDA | 47,571 | 28,252 | |
Basis of real estate sold | 6,498 | 1,556 | |
Depreciation, depletion and amortization | (18,638) | (15,797) | |
Interest expense, net | [1] | (3,698) | (5,464) |
Loss on extinguishment of debt | (5,512) | ||
Pension settlement charge | (42,988) | ||
Non-operating pension and other postretirement employee benefits | (3,635) | (980) | |
Gain on disposal of fixed assets | 192 | 32 | |
Gain on sale of facility | 9,176 | ||
(Loss) income before income taxes | (27,694) | 8,151 | |
Bond discounts and deferred loan fees | [1] | 406 | 477 |
Total depreciation, depletion and amortization | 19,044 | 16,274 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 238,394 | 206,628 | |
Depreciation, depletion and amortization | 18,638 | 15,797 | |
Operating Segments [Member] | Timberlands [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 82,425 | 68,158 | |
Adjusted EBITDDA | 34,982 | 26,850 | |
Depreciation, depletion and amortization | 12,591 | 10,265 | |
Operating Segments [Member] | Wood Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 145,000 | 132,306 | |
Adjusted EBITDDA | 13,229 | 7,226 | |
Depreciation, depletion and amortization | 5,630 | 5,042 | |
Operating Segments [Member] | Real Estate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,969 | 6,164 | |
Adjusted EBITDDA | 7,340 | 2,703 | |
Basis of real estate sold | 6,504 | 1,588 | |
Depreciation, depletion and amortization | 160 | 209 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [2] | (29,514) | (24,912) |
Adjusted EBITDDA | 692 | 2,127 | |
Basis of real estate sold | (6) | (32) | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | (8,672) | (10,654) | |
Depreciation, depletion and amortization | $ 257 | $ 281 | |
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations | ||
[2] | Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings per Share [Line Items] | ||
Net (loss) income | $ (16,832) | $ 6,560 |
Basic weighted-average shares outstanding | 67,478 | 67,860 |
Diluted weighted-average shares outstanding | 67,478 | 67,916 |
Basic net (loss) income per share | $ (0.25) | $ 0.10 |
Diluted net (loss) income per share | $ (0.25) | $ 0.10 |
Performance shares [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 36 | |
Restricted stock units [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 20 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Aug. 30, 2018 | |
Earnings per Share [Line Items] | |||
Total anti-dilutive shares excluded from the calculation (in shares) | 317,000 | 90,000 | |
Number of shares repurchased | 400,917 | 278,947 | |
Number of shares repurchased, cost | $ 12,355 | $ 10,158 | |
Stock repurchase program, remaining amount | $ 62,500 | ||
Unsettled repurchase shares | 0 | ||
Maximum [Member] | |||
Earnings per Share [Line Items] | |||
Stock repurchase program, authorized amount | $ 100,000 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Logs | $ 24,906 | $ 33,313 |
Lumber, panels and veneer | 29,338 | 31,639 |
Materials and supplies | 13,465 | 12,831 |
Inventories gross | 67,709 | 77,783 |
Less: LIFO reserve | (12,002) | (12,002) |
Total inventories | $ 55,707 | $ 65,781 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 503,753 | $ 498,113 |
Less: accumulated depreciation | (216,872) | (211,730) |
Total property, plant and equipment, net | $ 286,881 | $ 286,383 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components (Schedule of Timber and Timberlands) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Timber And Timberlands [Abstract] | ||
Timber and timberlands | $ 1,547,657 | $ 1,554,882 |
Logging roads | 82,839 | 83,781 |
Total timber and timberlands, net | $ 1,630,496 | $ 1,638,663 |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accrued payroll and benefits | $ 16,080 | $ 12,920 |
Accounts payable | 11,382 | 12,734 |
Accrued interest | 5,488 | 6,946 |
Accrued taxes | 8,620 | 6,638 |
Deferred revenue | 4,758 | 5,514 |
Operating lease liabilities | 4,885 | 4,998 |
Other current liabilities | 10,182 | 10,827 |
Total accounts payable and accrued liabilities | $ 61,395 | $ 60,577 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 45,981,000 | $ 45,974,000 | |
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, amount outstanding | 1,000,000 | ||
Maximum borrowing capacity | 75,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 380,000,000 | ||
Amount available to increase borrowing capacity | 420,000,000 | ||
Swing Line Loans [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | ||
Amended Term Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, amount outstanding | $ 693,500,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.85% | 2.15% |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2020USD ($)Derivative | Mar. 31, 2020USD ($)Derivative | |
Derivatives Fair Value [Line Items] | ||
Net losses expected to be reclassified in to earnings over next 12 months | $ 8.3 | |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
Derivatives Fair Value [Line Items] | ||
Number of interest rate swap agreements | Derivative | 6 | 6 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Minimum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 3.17% | 3.17% |
LIBOR variable interest rate | 1.85% | 1.85% |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Maximum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 4.82% | 4.82% |
LIBOR variable interest rate | 2.15% | 2.15% |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans [Member] | ||
Derivatives Fair Value [Line Items] | ||
Term loan debt | $ 397.5 | $ 397.5 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans Maturing in December 2020 through January 2029 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Term loan debt | $ 653.5 | $ 653.5 |
Term loan maturity period, start | 2020-12 | |
Term loan maturity period, end | 2029-01 | |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans Maturing in December 2020 through January 2029 [Member] | Minimum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 0.85% | 0.85% |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans Maturing in December 2020 through January 2029 [Member] | Maximum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 1.17% | 1.17% |
Derivative Instruments (Gross F
Derivative Instruments (Gross Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | $ 1,601 | ||
Liability Derivatives, Fair Value | $ 61,132 | 22,398 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Other Noncurrent Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 1,601 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Other Long-term Obligations [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | 59,764 | $ 22,398 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [1] | $ 1,368 | |
[1] | Derivative instruments that mature within one year, as a whole, are classified as current. |
Derivative Instruments (Effect
Derivative Instruments (Effect of Derivatives on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense, net | [1] | $ 3,698 | $ 5,464 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives designated in fair value hedging | (183) | ||
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives designated in fair value hedging | [2] | (18) | |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Debt Extinguishment [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives designated in fair value hedging | (165) | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in other comprehensive loss, net of tax | (39,363) | (8,594) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss reclassified from accumulated other comprehensive loss | [2] | $ (838) | $ (81) |
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations | ||
[2] | Realized loss on hedging instruments consist of net cash settlements and interest accruals on interest rate swaps during the periods. |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative assets | $ 1,601 | ||
Derivative liabilities related to interest rate swaps | $ (61,132) | (22,398) | |
Carrying Amount [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | (758,717) | (758,555) |
Carrying Amount [Member] | Level 2 [Member] | Interest rate contracts [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative assets | 1,601 | ||
Derivative liabilities related to interest rate swaps | (61,132) | (22,398) | |
Carrying Amount [Member] | Level 2 [Member] | Term Loans [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (689,982) | (689,820) | |
Carrying Amount [Member] | Level 2 [Member] | Revenue bonds [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (65,735) | (65,735) | |
Carrying Amount [Member] | Level 2 [Member] | Medium-term notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (3,000) | (3,000) | |
Carrying Amount [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | 3,014 | 4,157 | |
Fair Value [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | (782,672) | (775,117) |
Fair Value [Member] | Level 2 [Member] | Interest rate contracts [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative assets | 1,601 | ||
Derivative liabilities related to interest rate swaps | (61,132) | (22,398) | |
Fair Value [Member] | Level 2 [Member] | Term Loans [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (715,596) | (703,437) | |
Fair Value [Member] | Level 2 [Member] | Revenue bonds [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (63,513) | (68,200) | |
Fair Value [Member] | Level 2 [Member] | Medium-term notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (3,563) | (3,480) | |
Fair Value [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | $ 3,014 | $ 4,157 | |
[1] | The carrying amount of long-term debt includes principal and unamortized discounts. |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
PSA and RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock issued | shares | 100,000 |
Performance stock awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share award granted under stock incentive plan, performance period | 3 years |
Fair value of shares granted | $ / shares | $ 45.04 |
Performance stock awards [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 0.00% |
Performance stock awards [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 200.00% |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $ / shares | $ 42.16 |
Restricted stock units [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 1 year |
Restricted stock units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 3 years |
Long-Term Incentive Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future use | shares | 1,200,000 |
Equity-Based Compensation (Shar
Equity-Based Compensation (Share-Based Compensation Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2020shares | |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 41,664 |
Performance stock awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 125,001 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details of Equity-Based Compensation Expense and Related Income Tax Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 1,885 | $ 1,617 |
Deferred compensation stock equivalent units expense | 19 | 16 |
Total tax benefit recognized for equity-based expense | 83 | 72 |
Performance stock awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 1,158 | 1,044 |
Restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 708 | $ 557 |
Equity-Based Compensation (Fair
Equity-Based Compensation (Fair Value of Performance Share Awards) (Details) - Performance stock awards [Member] | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock price as of valuation date (in dollars per share) | $ 42.16 |
Risk-free rate | 1.42% |
Expected volatility | 25.74% |
Expected term (years) | 3 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Line Items] | ||
Income tax benefit | $ 10,862 | $ (1,591) |
Pension settlement charge | 42,988 | |
Pension Plans [Member] | ||
Income Taxes [Line Items] | ||
Income tax benefit | 11,200 | |
Increase in deferred tax assets | 6,800 | |
Remeasurement of pension plan obligations | 26,200 | |
Deltic MDF Facility [Member] | ||
Income Taxes [Line Items] | ||
Reduction to deferred tax liabilities | (15,800) | |
Increase to income taxes payable | $ 15,800 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related Leases assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Operating lease assets | $ 14,475 | $ 15,772 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |
Finance lease assets | [1] | $ 3,673 | $ 2,360 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet | |
Total lease assets | $ 18,148 | $ 18,132 | |
Current liabilities: | |||
Operating lease liabilities | $ 4,885 | $ 4,998 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | |
Finance lease liabilities | $ 972 | $ 644 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | |
Noncurrent | |||
Operating lease liabilities | $ 9,569 | $ 10,775 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Finance lease liabilities | $ 2,676 | $ 1,703 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Total lease liabilities | $ 18,102 | $ 18,120 | |
[1] | Finance lease assets are presented net of accumulated amortization of $0.5 million and $0.3 million as of March 31, 2020 and December 31, 2019, respectively. |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related Leases assets and liabilities (Parentheticals) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Accumulated amortization of finance lease assets | $ 0.5 | $ 0.3 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease costs | [1] | $ 1,425 | $ 1,410 |
Finance lease costs | |||
Amortization of leased assets | 213 | 21 | |
Interest on lease liabilities | 27 | 5 | |
Net lease costs | $ 1,665 | $ 1,436 | |
[1] | Excludes short-term leases and variable lease costs, which are immaterial |
Leases - Schedule of Suppleme_3
Leases - Schedule of Supplemental Cash Flow Information Related Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 1,506 | $ 1,522 |
Operating cash flows for finance leases | 27 | 5 |
Financing cash flows for finance leases | 215 | 27 |
Leased assets exchanged for new lease liabilities | ||
Operating leases | 38 | 268 |
Finance leases | $ 1,517 | $ 508 |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 29, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Funding of pension and other postretirement benefit plans | $ 1,546,000 | $ 1,714,000 | ||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in monthly retirement benefit amount | 0 | |||
Non-cash pretax settlement charge | 43,000,000 | |||
Reduction in funded status of qualified pension plans | (26,200,000) | |||
Qualified Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred contribution | $ 4,400,000 | |||
Qualified Plan [Member] | Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate used to measure projected benefit obligations for qualified pension plans | 2.95% | 3.40% | ||
Qualified Plan [Member] | Pension Plans [Member] | Funded with Plan Assets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Transfer of outstanding pension benefit obligation related to qualified pension plans to insurance company | $ 101,100,000 | |||
Reduction in funded status of qualified pension plans | $ 26,200,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefits (Components Of Net Periodic Cost (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,290 | $ 2,021 |
Interest cost | 3,564 | 4,539 |
Expected return on plan assets | (4,586) | (5,554) |
Amortization of prior service cost (credit) | 28 | 53 |
Amortization of actuarial loss | 4,154 | 3,427 |
Net periodic cost (benefit) before pension settlement charge | 5,450 | 4,486 |
Pension settlement charge | 42,988 | |
Total net periodic cost (benefit) | 48,438 | 4,486 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 143 | 105 |
Interest cost | 375 | 419 |
Amortization of prior service cost (credit) | (319) | (2,211) |
Amortization of actuarial loss | 419 | 307 |
Net periodic cost (benefit) before pension settlement charge | 618 | (1,380) |
Total net periodic cost (benefit) | $ 618 | $ (1,380) |
Components of Accumulated Oth_3
Components of Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ (1,226,831) | $ (1,314,779) |
Effect of pension settlement | (31,811) | |
Balance at end of period | (1,149,614) | (1,278,386) |
Pension Plans [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 117,028 | 129,253 |
Net loss arising during the period | 19,402 | |
Effect of pension settlement | (31,811) | |
Amounts reclassified from AOCL to earnings | (3,095) | (2,575) |
Balance at end of period | 101,524 | 126,678 |
Other Post Retirement Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 10,331 | (1,382) |
Amounts reclassified from AOCL to earnings | (74) | 1,409 |
Balance at end of period | 10,257 | 27 |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 20,000 | 1,560 |
Net loss arising during the period | 39,363 | 8,594 |
Amounts reclassified from AOCL to earnings | (838) | (81) |
Balance at end of period | 58,525 | 10,073 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 147,359 | 129,431 |
Balance at end of period | $ 170,306 | $ 136,778 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||
Cash and cash equivalents | $ 79,484 | $ 83,310 | $ 104,787 |
Revolving Credit Facility [Member] | |||
Subsequent Event [Line Items] | |||
Amount available for borrowing capacity | $ 379,000 |