Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 27, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 27, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36285 | |
Entity Registrant Name | RAYONIER ADVANCED MATERIALS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4559529 | |
Entity Address, Address Line One | 1301 RIVERPLACE BOULEVARD | |
Entity Address, Address Line Two | SUITE 2300 | |
Entity Address, City or Town | JACKSONVILLE | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32207 | |
City Area Code | 904 | |
Local Phone Number | 357-4600 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | RYAM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,597,353 | |
Entity Central Index Key | 0001597672 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Net Sales | $ 465,141 | $ 409,808 |
Cost of Sales | (380,981) | (399,347) |
Gross Margin | 84,160 | 10,461 |
Selling, general and administrative expenses | (17,748) | (20,247) |
Duties | (6,515) | (6,451) |
Foreign exchange gains (losses) | (691) | 5,797 |
Other operating income (expense), net | (4,410) | (1,568) |
Operating Income (Loss) | 54,796 | (12,008) |
Interest expense | (17,963) | (15,225) |
Interest income and other, net | (845) | 423 |
Other components of pension and OPEB, excluding service costs | 1,203 | 353 |
Income (Loss) from Continuing Operations Before Income Taxes | 37,191 | (26,457) |
Income tax (expense) benefit (Note 16) | (63,910) | 1,622 |
Equity in income (loss) of equity method investment | (308) | 0 |
Income (Loss) from Continuing Operations | (27,027) | (24,835) |
Income from discontinued operations, net of taxes (Note 2) | 0 | 708 |
Net Income (Loss) | $ (27,027) | $ (24,127) |
Basic Earnings Per Common Share (Note 13) | ||
Income (loss) from continuing operations (in dollars per share) | $ (0.43) | $ (0.39) |
Income from discontinued operations (in dollars per share) | 0 | 0.01 |
Net income (loss) per common share-basic (in dollars per share) | (0.43) | (0.38) |
Diluted Earnings Per Common Share (Note 13) | ||
Income (loss) from continuing operations (in dollars per share) | (0.43) | (0.39) |
Income from discontinued operations (in dollars per share) | 0 | 0.01 |
Net income (loss) per common share-diluted (in dollars per share) | $ (0.43) | $ (0.38) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (27,027) | $ (24,127) |
Other Comprehensive Income (Loss), net of tax (Note 11): | ||
Foreign currency translation adjustments | (9,268) | (6,471) |
Unrealized gain (loss) on derivative instruments | (1,268) | (20,660) |
Net gain from pension and postretirement plans | 3,302 | 6,573 |
Total other comprehensive income (loss) | (7,234) | (20,558) |
Comprehensive Income (Loss) | $ (34,261) | $ (44,685) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 106,750 | $ 93,653 |
Accounts receivable, net (Note 3) | 182,639 | 179,208 |
Inventory (Note 4) | 295,544 | 233,484 |
Income tax receivable | 53,309 | 58,657 |
Prepaid and other current assets | 61,148 | 68,570 |
Total current assets | 699,390 | 633,572 |
Property, Plant and Equipment (net of accumulated depreciation of $1,633,320 at March 27, 2021 and $1,610,454 at December 31, 2020) | 1,249,390 | 1,274,942 |
Deferred Tax Assets | 330,012 | 385,459 |
Intangible Assets, net | 36,689 | 38,441 |
Other Assets | 199,794 | 197,451 |
Total Assets | 2,515,275 | 2,529,865 |
Current Liabilities | ||
Accounts payable | 145,857 | 156,721 |
Accrued and other current liabilities (Note 6) | 137,850 | 110,495 |
Debt due within one year (Note 7) | 17,446 | 17,100 |
Current environmental liabilities (Note 8) | 8,694 | 8,684 |
Total current liabilities | 309,847 | 293,000 |
Long-Term Debt (Note 7) | 1,065,163 | 1,066,837 |
Long-Term Environmental Liabilities (Note 8) | 162,946 | 162,995 |
Pension and Other Postretirement Benefits | 258,195 | 260,708 |
Deferred Tax Liabilities | 30,136 | 24,462 |
Other Long-Term Liabilities | 30,234 | 26,776 |
Commitments and Contingencies (Note 18) | ||
Stockholders’ Equity | ||
Common stock, 140,000,000 shares authorized at $0.01 par value, 63,597,356 and 63,359,839 issued and outstanding, as of March 27, 2021 and December 31, 2020, respectively | 636 | 633 |
Additional paid-in capital | 403,086 | 405,161 |
Retained earnings | 395,901 | 422,928 |
Accumulated other comprehensive income (loss) (Note 11) | (140,869) | (133,635) |
Total Stockholders’ Equity | 658,754 | 695,087 |
Total Liabilities and Stockholders’ Equity | $ 2,515,275 | $ 2,529,865 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated deprecation | $ 1,633,320 | $ 1,610,454 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 63,597,356 | 63,359,839 |
Common stock, shares outstanding (in shares) | 63,597,356 | 63,359,839 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Activities | ||
Net income (loss) | $ (27,027) | $ (24,127) |
Income (loss) from discontinued operations | 0 | (708) |
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 36,489 | 37,842 |
Stock-based incentive compensation expense | (653) | 1,943 |
Deferred income tax expense (benefit) | 61,698 | 17,381 |
Net periodic benefit cost of pension and other postretirement plans | 2,250 | 2,677 |
Unrealized loss (gain) on derivative instruments | 0 | 6,792 |
Unrealized loss (gain) from foreign currency | 1,599 | (11,368) |
Other | 879 | 275 |
Changes in operating assets and liabilities: | ||
Receivables | (6,580) | (10,686) |
Inventories | (63,133) | (24,924) |
Accounts payable | (256) | (1,518) |
Accrued liabilities | 27,375 | 20,707 |
All other operating activities | 7,156 | (25,292) |
Contributions to pension and other postretirement plans | (1,582) | (1,944) |
Cash Provided by (Used for) Operating Activities-continuing operations | 38,215 | (12,950) |
Cash Provided by (Used for) Operating Activities-discontinued operations | 0 | 204 |
Cash Provided by (Used for) Operating Activities | 38,215 | (12,746) |
Investing Activities | ||
Capital expenditures, net | (19,525) | (12,582) |
Investment in equity method investment | (987) | 0 |
Cash Used for Investing Activities | (20,512) | (12,582) |
Financing Activities | ||
Revolving credit facility and other borrowings | 0 | 7,592 |
Repayment of long-term debt | (1,549) | (1,786) |
Short-term financing, net | (520) | 0 |
Common stock repurchased | (1,420) | (438) |
Cash Provided by (Used for) Financing Activities | (3,489) | 5,368 |
Cash and Cash Equivalents | ||
Change in cash and cash equivalents | 14,214 | (19,960) |
Net effect of foreign exchange on cash and cash equivalents | (1,117) | (1,393) |
Balance, beginning of year | 93,653 | 64,025 |
Balance, end of period | $ 106,750 | $ 42,672 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 3 Months Ended |
Mar. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these consolidated financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the consolidated financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 1, 2021. The Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations to reflect the November 2019 sale of its Matane high-yield pulp operations. Unless otherwise stated, information in these notes to consolidated financial statements relates to continuing operations. See Note 2 — Discontinued Operations for additional information. Coronavirus Pandemic During 2020, the Company’s businesses were significantly impacted by the coronavirus ("COVID-19") pandemic. While market demand and pricing for certain of the Company’s products began to recover towards the end of the year and continued to improve throughout the first quarter of 2021, the Company's operations remain vulnerable to a reversal of these trends or other continuing negative effects caused by COVID-19. In its operating facilities and work spaces, the Company continues to maintain protocols previously implemented to reduce the potential spread of COVID-19 and ensure the safety of its employees and continuity of operations. Due to the financial impacts of COVID-19, the Company has actively monitored the recoverability of the carrying value of its long-term assets. During the three months ended March 27, 2021 and the year ended December 31, 2020, the Company did not recognize any impairment charges related to long-lived assets held for use. The Company will continue to evaluate the recoverability of these and other assets as necessary. New or Recently Adopted Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our unaudited consolidated interim financial statements. Subsequent Events Sale of lumber and newsprint assets Events and transactions subsequent to the consolidated balance sheets date have been evaluated for potential recognition and disclosure through the date of issuance of these Consolidated Financial Statements. The following subsequent events warranting disclosure were identified. On April 12, 2021, the Company announced the sale of its lumber and newsprint assets (the “Purchased Assets”) located in Ontario and Québec Canada to GreenFirst Forest Products, Inc. (“GreenFirst”), for approximately $214 million, including an assumed $74 million associated with finished goods, work-in-process and raw materials inventory value, which is subject to fluctuation until closing. The purchase price, to be adjusted at closing by changes in the value of the inventory, will be paid 85 percent in cash and the remainder in common shares of GreenFirst. In addition, a credit note will be issued to the Company by GreenFirst in the amount of CDN$8 million, which may be offset against amounts owed to GreenFirst in the future for wood chip purchases, equally over the next 5 years. The closing of the transaction, which is expected to occur in the second half of 2021, but not before July 31, is subject to customary closing conditions, including receipt of regulatory approvals, the transfer of forestry licenses and the approval of the TSX Venture Exchange. The Purchased Assets include the Company’s six lumber facilities, newsprint facility, inventory and certain real property, machinery, inventory, permits, leases, licenses, pension assets and liabilities and other related assets associated with the successful operations of these businesses. Other assets and liabilities, including accounts receivable, accounts payable, certain retained inventory and rights to softwood lumber duties, generated or incurred through the closing date, are excluded. Since 2017, the Company has paid a total of $98 million in duties. In connection with the transaction, the Company will enter into a 20 year wood chip and residual fiber supply agreement with GreenFirst, securing supply for the Company’s operations at the Temiscaming plant. Additionally, the parties entered into a Transition Services Agreement ("TSA") whereby the Company will provide certain transitional services to GreenFirst, for a period of time following the closing of the transaction, not to exceed twelve months from such date. The TSA includes support related to information technology, accounting, treasury, human resources and payroll, tax, supply chain and procurement functions. Costs incurred by the Company associated with the TSA will be reimbursed by GreenFirst. As of March 27, 2021, the carrying value of the net assets included in the transaction was $238 million, including the carrying value of inventory which was $107 million. The Company expects a cash tax impact in 2022 of less than $10 million as a result of this transaction, although the full extent of tax impacts are still being evaluated. Contingency resolution On April 19, 2021, the Company reached final settlement in its dispute with the Market Assessment and Compliance Division (“MACD”) branch of the Independent Electricity System Operator (“IESO”) regarding the investigation of the Kapuskasing facility. See Note 18 — Contingencies and Guarantees |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In November 2019, the Company sold its Matane, Quebec pulp mill to Sappi Limited, a global diversified wood fiber company, for a gross purchase price of approximately $175 million. Income from discontinued operations for the three months ended March 28, 2020 represents an adjustment to the gain on sale of the Matane mill from working capital adjustments that arose following the November 2019 closing. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 27, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The Company’s accounts receivable included the following: March 27, 2021 December 31, 2020 Accounts receivable, trade $ 152,194 $ 140,036 Accounts receivable, other (a) 30,935 39,659 Allowance for doubtful accounts (490) (487) Total accounts receivable, net $ 182,639 $ 179,208 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory
Inventory | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The Company’s inventory included the following: March 27, 2021 December 31, 2020 Finished goods $ 163,618 $ 138,064 Work-in-progress 19,243 17,246 Raw materials 104,189 70,009 Manufacturing and maintenance supplies 8,494 8,165 Total inventory $ 295,544 $ 233,484 |
Leases
Leases | 3 Months Ended |
Mar. 27, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of March 27, 2021, the Company’s leases have remaining lease terms of 1 year to 7.9 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the Right of Use (“ROU”) assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of March 27, 2021 and December 31, 2020 was 5.8 percent and 6.1 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of March 27, 2021 and December 31, 2020 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended March 27, 2021 March 28, 2020 Operating Leases Operating lease expense $ 1,841 $ 1,804 Finance Leases Amortization of ROU assets 86 80 Interest 43 49 Total $ 1,970 $ 1,933 As of March 27, 2021, the weighted average remaining lease term is 3.4 years and 5.7 years for operating leases and financing leases, respectively. As of December 31, 2020, the weighted average remaining lease term is 3.6 years and 5.9 years for operating leases and finance leases, respectively. Cash provided by operating activities includes approximately $2 million and $2 million from operating lease payments made during the three months ended March 27, 2021 and March 28, 2020, respectively. Finance lease cash flows were immaterial during the three months ended March 27, 2021 and March 28, 2020. As of March 27, 2021 and December 31, 2020, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2021 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 27, 2021 December 31, 2020 Right-of-use assets Other assets $ 18,238 $ 17,566 Lease liabilities, current Accrued and other current liabilities $ 6,266 $ 5,666 Lease liabilities, non-current Other long-term liabilities $ 13,140 $ 13,007 As of March 27, 2021, operating lease maturities for the remainder of 2021 through 2025 and thereafter are as follows: March 27, 2021 Remainder of 2021 $ 5,437 2022 6,819 2023 5,713 2024 1,835 2025 789 Thereafter 841 Total minimum lease payments $ 21,434 Less: imputed interest (2,028) Present value of future minimum lease payments $ 19,406 |
Leases | Leases The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of March 27, 2021, the Company’s leases have remaining lease terms of 1 year to 7.9 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the Right of Use (“ROU”) assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of March 27, 2021 and December 31, 2020 was 5.8 percent and 6.1 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of March 27, 2021 and December 31, 2020 was 7.0 percent. The Company’s operating and finance lease cost is as follows: Three Months Ended March 27, 2021 March 28, 2020 Operating Leases Operating lease expense $ 1,841 $ 1,804 Finance Leases Amortization of ROU assets 86 80 Interest 43 49 Total $ 1,970 $ 1,933 As of March 27, 2021, the weighted average remaining lease term is 3.4 years and 5.7 years for operating leases and financing leases, respectively. As of December 31, 2020, the weighted average remaining lease term is 3.6 years and 5.9 years for operating leases and finance leases, respectively. Cash provided by operating activities includes approximately $2 million and $2 million from operating lease payments made during the three months ended March 27, 2021 and March 28, 2020, respectively. Finance lease cash flows were immaterial during the three months ended March 27, 2021 and March 28, 2020. As of March 27, 2021 and December 31, 2020, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2021 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases . The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 27, 2021 December 31, 2020 Right-of-use assets Other assets $ 18,238 $ 17,566 Lease liabilities, current Accrued and other current liabilities $ 6,266 $ 5,666 Lease liabilities, non-current Other long-term liabilities $ 13,140 $ 13,007 As of March 27, 2021, operating lease maturities for the remainder of 2021 through 2025 and thereafter are as follows: March 27, 2021 Remainder of 2021 $ 5,437 2022 6,819 2023 5,713 2024 1,835 2025 789 Thereafter 841 Total minimum lease payments $ 21,434 Less: imputed interest (2,028) Present value of future minimum lease payments $ 19,406 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 27, 2021 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities The Company’s accrued and other current liabilities included the following: March 27, 2021 December 31, 2020 Accrued customer incentives and prepayments $ 24,651 $ 29,387 Accrued payroll and benefits 30,118 21,500 Accrued interest 19,343 3,230 Accrued income taxes 6,000 5,052 Accrued stumpage 19,017 10,045 Accrued property and other taxes 6,194 3,995 Other current liabilities 32,527 37,286 Total accrued and other current liabilities $ 137,850 $ 110,495 |
Debt and Finance Leases
Debt and Finance Leases | 3 Months Ended |
Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | Debt and Finance Leases The Company’s debt and finance leases included the following: March 27, 2021 December 31, 2020 ABL Credit Facility due 2025, $142 million available, bearing interest 0.25% LIBOR floor plus 2.75%, interest rate of 3.00% at March 27, 2021 — — Senior Secured Notes due 2026 at a fixed interest rate of 7.625% $ 500,000 $ 500,000 Senior Notes due 2024 at a fixed interest rate of 5.5% 495,647 495,647 Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill 73,686 73,791 Other loans (a) 17,082 18,193 Short-term factoring facility-France 4,471 5,089 Finance lease obligation 2,404 2,489 Total debt principal payments due 1,093,290 1,095,209 Less: Debt premium, original issue discount and issuance costs, net (10,681) (11,272) Total debt 1,082,609 1,083,937 Less: Debt due within one year (17,446) (17,100) Long-term debt $ 1,065,163 $ 1,066,837 (a) Primarily loans for energy projects in France. As of March 27, 2021, debt and finance lease payments due during the remainder of 2021, the next four years and thereafter are as follows: Finance Lease Payments Debt Principal Payments Remainder of 2021 $ 386 $ 14,649 2022 515 30,426 2023 515 10,326 2024 515 505,895 2025 515 10,290 Thereafter 473 519,300 Total principal payments $ 2,919 $ 1,090,886 Less: Imputed interest 515 Present value minimum finance lease payments $ 2,404 |
Environmental Liabilities
Environmental Liabilities | 3 Months Ended |
Mar. 27, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities | Environmental Liabilities An analysis of liabilities for the three months ended March 27, 2021 is as follows: Balance, December 31, 2020 $ 171,679 Increase in liabilities 225 Payments (419) Foreign currency adjustments 155 Balance, March 27, 2021 171,640 Less: Current portion (8,694) Long-term environmental liabilities $ 162,946 In addition to the estimated liabilities, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established reserves due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy and/or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its environmental liability sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies and non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of March 27, 2021, the Company estimates this exposure could range up to approximately $78 million, although no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several sites and other applicable liabilities. Further, this estimate excludes reasonably possible liabilities which are not currently estimable primarily due to the factors discussed above. Subject to the previous paragraph, the Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its environmental liabilities. However, no assurances are given they will be sufficient for the reasons described above, and additional liabilities could have a material adverse effect on the Company’s financial position, results of operations and cash flows. |
Derivatives Instruments
Derivatives Instruments | 3 Months Ended |
Mar. 27, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | Derivative Instruments The Company’s earnings and cash flows are subject to fluctuations due to changes in interest rates and foreign currency exchange rates. The Company allows for the use of derivative financial instruments to manage interest rate and foreign currency exchange rate exposure but does not allow derivatives to be used for speculative purposes. All derivative instruments are recognized on the consolidated balance sheets at their fair value and are either designated as a hedge of a forecasted transaction or undesignated. Changes in the fair value of a derivative designated as a hedge are recorded in other comprehensive income until earnings are affected by the hedged transaction and are then reported in current earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. In December 2020, the Company terminated all outstanding derivative instruments, which had been previously designated as hedging instruments and had various maturity dates through 2028. Accumulated gains and losses associated with these instruments were deferred as a component of accumulated other comprehensive income (loss), totaling a net after tax gain of $2 million as of December 31, 2020, to be recognized in earnings as the underlying hedged transactions occur and affect earnings. During the three months ended March 27, 2021, the Company recognized a $1.3 million after-tax gain associated with the deferred component in accumulated other comprehensive income (loss) related to these settlements. A $0.6 million net after tax gain remains deferred within accumulated other comprehensive income (loss) as of March 27, 2021, which will be recognized in earnings as the underlying hedged transactions occur and affect earnings. Interest Rate Risk The Company’s current debt obligations are primarily fixed and therefore not materially exposed to variability in interest payments due to changes in interest rates. The Company previously entered into interest rate swap agreements to reduce the volatility of interest expense, achieve a desired proportion of fixed-rate versus floating-rate debt and to hedge the variability in cash flows attributable to interest rate risks caused by changes in the LIBOR benchmark. The Company had designated the swaps as cash flow hedges and assesses their effectiveness using the hypothetical derivative method in conjunction with regression. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated hedge. Ineffective gains and losses are classified to earnings immediately. There was no hedge ineffectiveness during 2020. Foreign Currency Exchange Rate Risk Foreign currency fluctuations affect investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, product shipments, and foreign-denominated debt. The Company is also exposed to the translation of foreign currency earnings to the U.S. dollar. Management may use foreign currency forward contracts to selectively hedge its foreign currency cash flows exposure and manage risk associated with changes in currency exchange rates. The Company’s principal foreign currency exposure is to the Canadian dollar, and to a lesser extent, the euro. The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income is as follows: Three Months Ended March 27, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ — $ — Interest expense Foreign exchange forward contracts $ — $ — Other operating income (expense), net Foreign exchange forward contracts $ — $ 1,828 Cost of sales Foreign exchange forward contracts $ — $ (100) Interest income and other, net Three Months Ended March 28, 2020 Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ (1,757) $ (120) Interest expense Foreign exchange forward contracts $ (26,532) $ (1,361) Other operating income (expense), net Foreign exchange forward contracts $ (394) $ 394 Cost of sales Foreign exchange forward contracts $ (6,902) $ (6,732) Interest income and other, net The effects of derivative instruments not designated as hedging instruments on the consolidated statement of income were as follows: Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative March 27, 2021 March 28, 2020 Foreign exchange forward contracts Other operating income (expense), net $ — $ (721) The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives are presented below: March 27, 2021 December 31, 2020 Foreign exchange cash flow hedges $ 566 $ 1,834 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company, using market information and what management believes to be appropriate valuation methodologies: March 27, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 106,750 $ 106,750 $ — $ 93,653 $ 93,653 $ — Liabilities (a): Fixed-rate long-term debt 1,075,734 — 1,104,025 1,076,359 — 1,050,287 (a) Liabilities exclude finance lease obligation. The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 27, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of AOCI are as follows: Three Months Ended March 27, 2021 March 28, 2020 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (146,614) $ (126,638) Other comprehensive gain (loss) before reclassifications — 4,781 Income tax on other comprehensive loss — (1,238) Reclassifications to earnings: (a) Amortization of losses 4,082 3,393 Amortization of prior service costs 138 141 Income tax on reclassifications (918) (504) Foreign currency adjustments — — Net comprehensive gain (loss) on employee benefit plans, net of tax 3,302 6,573 Balance, end of quarter (143,312) (120,065) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year 1,834 1,290 Other comprehensive gain (loss) before reclassifications — (35,585) Income tax on other comprehensive income — 8,255 Reclassifications to earnings: (b) Interest rate contracts — 120 Foreign exchange contracts (1,728) 7,699 Income tax on reclassifications 460 (1,149) Net comprehensive gain (loss) on derivative instruments, net of tax (1,268) (20,660) Balance, end of quarter 566 (19,370) Foreign currency translation adjustments: Balance, beginning of year 11,145 (13,879) Foreign currency translation adjustment, net of tax of $0 and $0 (9,268) (6,471) Balance, end of quarter 1,877 (20,350) Accumulated other comprehensive income (loss), end of quarter $ (140,869) $ (159,785) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 15— Employee Benefit Plans for additional information. (b) Reclassifications of interest rate contracts are recorded in interest expense. Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 9 — Derivative Instruments |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholders' Equity An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Additional Paid in Capital Retained Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value For the three months ended March 27, 2021 Balance, January 1, 2021 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income (loss) — — — (27,027) — (27,027) Other comprehensive income (loss), net of tax — — — — (7,234) (7,234) Issuance of common stock under incentive stock plans 369,713 4 (4) — — — Stock-based compensation — — (653) — — (653) Repurchase of common shares (a) (132,196) (1) (1,418) — — (1,419) Balance, March 27, 2021 63,597,356 $ 636 $ 403,086 $ 395,901 $ (140,869) $ 658,754 For the three months ended March 28, 2020 Balance, January 1, 2020 63,136,129 $ 632 $ 399,020 $ 422,373 $ (139,227) $ 682,798 Net income (loss) — — — (24,127) — (24,127) Other comprehensive income (loss), net of tax — — — — (20,558) (20,558) Issuance of common stock under incentive stock plans 290,689 3 (3) — — — Stock-based compensation — — 1,943 — — 1,943 Repurchase of common shares (a) (179,951) (3) (435) — — (438) Balance, March 28, 2020 63,246,867 $ 632 $ 400,525 $ 398,246 $ (159,785) $ 639,618 (a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. Common Stock Buyback On January 29, 2018, the Board of Directors authorized a share buyback program pursuant to which the Company may, from time to time, purchase shares of its common stock with an aggregate purchase price of up to $100 million. During the three months ended March 27, 2021 and March 28, 2020, the Company did not repurchase any common shares under this buyback program. As of March 27, 2021, there was approximately $60 million of share repurchase authorization remaining under the program. The Company does not expect to utilize any further authorization in the near future. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 27, 2021 March 28, 2020 Income (loss) from continuing operations $ (27,027) $ (24,835) Income (loss) from discontinued operations — 708 Net income (loss) available for common stockholders $ (27,027) $ (24,127) Shares used for determining basic earnings per share of common stock 63,430,601 62,982,735 Dilutive effect of: Stock options — — Performance and restricted stock — — Preferred stock — — Shares used for determining diluted earnings per share of common stock 63,430,601 62,982,735 Basic per share amounts Income (loss) from continuing operations $ (0.43) $ (0.39) Income (loss) from discontinued operations — 0.01 Net income (loss) $ (0.43) $ (0.38) Diluted per share amounts Income (loss) from continuing operations $ (0.43) $ (0.39) Income (loss) from discontinued operations — 0.01 Net income (loss) $ (0.43) $ (0.38) Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended March 27, 2021 March 28, 2020 Stock options 122,525 157,033 Performance and restricted stock 2,338,111 448,812 Total anti-dilutive instruments 2,460,636 605,845 |
Incentive Stock Plans
Incentive Stock Plans | 3 Months Ended |
Mar. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Stock Plans | Incentive Stock Plans The Company’s total stock-based compensation for the three months ended March 27, 2021 and March 28, 2020 was a benefit of $1 million and expense of $2 million, respectively. The Company made new grants of restricted stock units and performance-based stock units to certain employees during the first three months of 2021. The 2021 restricted stock unit awards cliff vest after three years. The 2021 performance-based stock unit awards measure total shareholder return (“TSR”) on an absolute basis and relative to peers. Participants can earn between 0 and 200 percent of the target award. Performance below the threshold for the absolute TSR would result in a 0 payout for the TSR metric. There is a performance-based stock award and cash unit stock award that will be measured using the same objectives but paid and accounted for separately. As required by Accounting Standards Codification 718, Compensation-Stock Compensation, the portion of the award to be settled in cash is classified as a liability and remeasured to fair value at the end of each reporting period until settlement. In March 2021, the performance-based share units granted in 2018 were settled at an average of 60 percent of the performance-based stock units awarded, resulting in the issuance of 182,811 shares of common stock. The following table summarizes the activity on the Company’s incentive stock awards for the three months ended March 27, 2021: Stock Options Restricted Stock and Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 152,281 $ 38.26 828,955 $ 10.27 1,821,402 $ 8.77 Granted — — 409,912 10.46 135,699 17.61 Forfeited — — (71,647) 14.11 (296,864) 9.01 Exercised or settled — — (186,830) 22.21 (302,516) 22.76 Expired or cancelled (29,756) 33.39 — — — — Outstanding at March 27, 2021 122,525 $ 39.44 980,390 $ 7.79 1,357,721 $ 6.49 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 27, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has defined benefit pension and other long-term and postretirement benefit plans covering certain union and non-union employees, primarily in the U.S., Canada and France. The defined benefit pension plans are closed to new participants. The liabilities for these plans are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. The components of net periodic benefit costs from these plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 27, 2021 March 28, 2020 March 27, 2021 March 28, 2020 Service cost $ 3,083 $ 2,667 $ 370 $ 363 Interest cost 4,806 6,340 207 318 Expected return on plan assets (10,436) (10,545) — — Amortization of prior service cost 176 179 (38) (38) Amortization of losses 4,079 3,427 3 (34) Total net periodic benefit cost $ 1,708 $ 2,068 $ 542 $ 609 Service cost is included in cost of sales and selling, general and administrative expenses in the statements of income, as appropriate. Interest cost, expected return on plan assets, amortization of prior service cost and amortization of losses are included in other components of pension and OPEB, excluding service cost on the consolidated statement of income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate from continuing operations for the three months ended March 27, 2021 was an expense of 172 percent, compared with a benefit of 6 percent for the three months ended March 28, 2020. The current quarter March 27, 2021 effective rate differs from the federal statutory rate of 21 percent primarily due to Global Intangible Low Taxed Income (“GILTI”), disallowed interest deductions in the U.S., and different statutory tax rates of foreign operations. The application of GILTI effectively results in double book taxation of the majority of the Company’s high Canadian earnings. The Company currently expects minimal cash taxes to be paid in 2021 or 2022 as a result of 2021 earnings. The effective tax rate benefit for the three months ended March 28, 2020 differs from the federal statutory rate primarily due to nondeductible interest expense in the U.S. and lower tax deductions on vested stock compensation, partially offset by benefits from the CARES Act (see below). On March 27, 2020, the United States Congress passed the CARES Act to provide taxpayer protection against the economic impacts of COVID-19. As part of the CARES Act, the Company is able to carry 2019 and 2020 tax net operating losses back to tax years when the U.S. Federal Statutory rate was 35 percent compared with the current 21 percent. To date, the Company has recorded a $33 million current receivable related the 2019 loss carryback which is expected to be received in 2021 and a $9 million non-current receivable related to the 2020 loss carryback expected to be filed in the second quarter of 2021. Separately, the Company has a $22 million receivable related to tax years under examination by the IRS, $17 million of which is expected to be received within the next twelve months. There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2020. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company currently operates in the following five business segments: High Purity Cellulose, Forest Products, Paperboard, Pulp & Newsprint and Corporate. All prior period amounts presented herein have been reclassified to conform to this segment structure. The Corporate operations consist primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. The Company allocates a portion of the cost of maintaining these support functions to its operating units. The Company evaluates the performance of its segments based on operating income. Intersegment sales consist primarily of wood chips sales from Forest Products to High Purity Cellulose, Paperboard and Pulp & Newsprint segments and high-yield pulp sales from Pulp & Newsprint to Paperboard. Intersegment sales prices are at rates that approximate market for the respective operating area. Net sales, disaggregated by product-line, was comprised of the following: Three Months Ended March 27, 2021 March 28, 2020 High Purity Cellulose Cellulose Specialties $ 167,837 $ 160,235 Commodity Products 58,933 66,524 Other sales (a) 22,991 22,819 Total High Purity Cellulose 249,761 249,578 Forest Products Lumber 127,711 60,549 Other sales (b) 19,060 21,750 Total Forest Products 146,771 82,299 Paperboard Paperboard 47,849 50,486 Pulp & Newsprint Pulp 27,544 29,975 Newsprint 11,491 16,703 Total Pulp & Newsprint 39,035 46,678 Eliminations (18,275) (19,233) Total net sales $ 465,141 $ 409,808 (a) Other sales include sales of electricity, lignin and other by-products to third-parties (b) Other sales include sales of logs, wood chips and other by-products to other Company segments and third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended March 27, 2021 March 28, 2020 High Purity Cellulose $ 6,427 $ (4,858) Forest Products 60,750 (1,311) Paperboard 5,755 4,674 Pulp & Newsprint (5,900) (5,876) Corporate (12,236) (4,637) Total operating income (loss) $ 54,796 $ (12,008) Identifiable assets by segment were as follows: March 27, 2021 December 31, 2020 High Purity Cellulose $ 1,511,465 $ 1,528,929 Forest Products 235,996 186,321 Paperboard 127,525 129,871 Pulp & Newsprint 100,844 99,374 Corporate 539,445 585,370 Total identifiable assets $ 2,515,275 $ 2,529,865 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has no material changes to the purchase obligations presented in Note 22 — Commitments and Contingencies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 1, 2021, that are outside the normal course of business for the three months ended March 27, 2021. The Company’s purchase obligations continue to primarily consist of commitments for the purchase of natural gas, steam energy and electricity contracts entered into within the normal course of business. The Company leases certain buildings, machinery and equipment under various operating leases. See Note 5 — Leases , for additional information. Litigation and Contingencies Final Settlement Reached in Dispute with IESO Relating to Investigation of the Kapuskasing Newsprint Facility. From the period from 2014 to early 2021, the Market Assessment and Compliance Division (“MACD”) branch of the Independent Electricity System Operator (“IESO”), the governmental agency responsible for operating the wholesale electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada, had been engaged in reviewing the Company's compliance with the published rules that govern the operation of the wholesale electricity market in Ontario, Canada. The inquiry was focused primarily on payments made by IESO to the Company between 2010 and 2019 under market rules in connection with multiple planned, extended and unplanned forced outages that caused extensive downtime, in full or in part, of the Company’s Kapuskasing, Ontario newsprint facility. In May 2020, MACD finalized two of its four investigations into the Company’s electricity management practices at its Kapuskasing newsprint facility and issued orders asserting penalties of CAD $25 million. These orders called for the Company to pay penalties of CAD $3 million immediately and CAD $12 million over a 10 year period, with the remaining CAD $10 million to be deferred and ultimately forgiven assuming the Company otherwise complied with the orders’ remaining terms. The Company, which maintained it had complied in all material respects with the published rules, vigorously contested IESO’s orders, including through the filing of judicial review proceedings with the divisional Court (Superior Court of Justice) of Ontario seeking invalidation of the orders. At the time these orders were issued, the remaining two investigations remained open, subjecting the Company to the risk that MACD may in the future issue additional orders upon finalization of these additional investigations. On April 19, 2021, the Company and IESO entered into Minutes of Settlement (“MOS”) pursuant to which the parties agreed to fully and finally settle all claims relating to all four of the investigations (whether completed or not) and related orders, the judicial review proceedings and underlying disputes. As part of the settlement, the Company agreed to a fixed obligation to pay a sum of CAD $12 million over a period of 5 years comprised of a CAD $4.5 million up-front payment and a CAD $7.5 million payment to be spread (on a front-weighted basis) over the next 5 anniversaries of the MOS, without interest. In addition to the foregoing, the MOS provides that a “suspended” sum of CAD $10.4 million would become due and payable in the event the Company fails to comply with any of the terms and conditions of the MOS or commits an event of default, as defined under the applicable market rules, unless such breach or event of default is remedied on a timely basis. This contingent “suspended” sum decreases annually as the scheduled fixed, or non-contingent, payments are made under the MOS. Assuming no uncured event of default or breach occurs during the repayment period, upon full payment of the CAD $12 million, the entire "suspended" sum shall be extinguished and RYAM shall be released from any payment obligation with respect thereto. Given the parties’ finalization of and entry into the MOS, the Company considers this matter concluded (subject only to the parties’ obligations yet to be performed under the MOS). Duties on Canadian softwood lumber sold to the U.S. The Company operates six softwood lumber mills in Ontario and Quebec, Canada and exports softwood lumber into the United States from Canada. In 2017, anti-dumping and countervailing duties were assessed by the United States Department of Commerce (“USDOC”) on lumber exported into the United States, with the Company being assigned an anti-dumping duty rate of 6 percent and a countervailing duty rate of 14 percent. In December 2020, following its administrative review of the period of April 28, 2017 through December 31, 2018, USDOC determined revised rates for anti-dumping and countervailing duties, and the Company is now subject to an anti-dumping duty rate of approximately 1.6 percent and a countervailing duty rate of approximately 7.4 percent. The reduced rates will be applied by the Company for lumber sold into the U.S. in the future. Canada’s legal challenge to the USDOC’s assessment of duties continues in spite of the recent revision in rates. The Company has paid approximately $98 million in lumber duties to date, recorded as expense in the periods incurred. The Company currently has a $21 million long-term receivable associated with the December 2020 determination of the revised rates for the 2017 and 2018 periods. Cash is not expected to return to the Company until final resolution of the softwood lumber dispute, which remains subject to legal challenges and to USDOC further administrative review processes covering periods after December 31, 2018. Other . In addition to the above, the Company is engaged in various legal and regulatory actions and proceedings, and has been named as a defendant in various lawsuits and claims arising in the ordinary course of its business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, the Company has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. These other lawsuits and claims, either individually or in aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Guarantees and Other The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of March 27, 2021, the Company had net exposure of $44 million from various standby letters of credit, primarily for financial assurance relating to environmental remediation, credit support for natural gas and electricity purchases, and guarantees related to foreign retirement plan obligations. These standby letters of credit represent a contingent liability. The Company would only be liable upon its default on the related payment obligations. The letters of credit have various expiration dates and will be renewed as required. The Company had surety bonds of $85 million as of March 27, 2021, primarily to comply with financial assurance requirements relating to environmental remediation and post closure care, to provide collateral for the Company’s workers’ compensation program, and to guarantee taxes and duties for products shipped internationally. These surety bonds expire at various dates and are expected to be renewed annually as required. LignoTech Florida (“LTF”) is a venture in which the Company owns 45 percent and its partner Borregaard ASA owns 55 percent. The Company is a guarantor of LTF’s financing agreements and, in the event of default, expects it would only be liable for its proportional share of any repayment under the agreements. The Company’s proportion of the LTF financing agreement guarantee was $33 million at March 27, 2021. The Company has not recorded any liabilities for these financial guarantees in its consolidated balance sheets, either because the Company has recorded the underlying liability associated with the guarantee or the guarantee is dependent on the Company’s own performance and, therefore, is not subject to the measurement requirements or because the Company has calculated the estimated fair value of the guarantee and determined it to be immaterial based upon the current facts and circumstances that would trigger a payment obligation. It is not possible to determine the maximum potential amount of the liability under these potential obligations due to the unique set of facts and circumstances likely to be involved with each provision. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flows Information | 3 Months Ended |
Mar. 27, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flows Information | Supplemental Disclosures of Cash Flow Information Supplemental disclosures of cash flows information were comprised of the following for the three months ended: March 27, 2021 March 28, 2020 Interest paid $ 851 $ 8,115 Income taxes paid (received) $ 54 $ (390) Capital assets purchased on account $ 12,848 $ 7,622 Assets acquired under operating leases $ 1,768 $ 119 |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Advanced Materials Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these consolidated financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the consolidated financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 1, 2021. The Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations to reflect the November 2019 sale of its Matane high-yield pulp operations. Unless otherwise stated, information in these notes to consolidated financial statements relates to continuing operations. See Note 2 — Discontinued Operations for additional information. Coronavirus Pandemic During 2020, the Company’s businesses were significantly impacted by the coronavirus ("COVID-19") pandemic. While market demand and pricing for certain of the Company’s products began to recover towards the end of the year and continued to improve throughout the first quarter of 2021, the Company's operations remain vulnerable to a reversal of these trends or other continuing negative effects caused by COVID-19. In its operating facilities and work spaces, the Company continues to maintain protocols previously implemented to reduce the potential spread of COVID-19 and ensure the safety of its employees and continuity of operations. |
New or Recently Adopted Accounting Pronouncements | New or Recently Adopted Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our unaudited consolidated interim financial statements. |
Fair Value Measurements | The Company uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | In November 2019, the Company sold its Matane, Quebec pulp mill to Sappi Limited, a global diversified wood fiber company, for a gross purchase price of approximately $175 million. Income from discontinued operations for the three months ended March 28, 2020 represents an adjustment to the gain on sale of the Matane mill from working capital adjustments that arose following the November 2019 closing. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The Company’s accounts receivable included the following: March 27, 2021 December 31, 2020 Accounts receivable, trade $ 152,194 $ 140,036 Accounts receivable, other (a) 30,935 39,659 Allowance for doubtful accounts (490) (487) Total accounts receivable, net $ 182,639 $ 179,208 (a) Accounts receivable, other consists primarily of value added/consumption taxes, grants receivable and accrued billings due from government agencies. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company’s inventory included the following: March 27, 2021 December 31, 2020 Finished goods $ 163,618 $ 138,064 Work-in-progress 19,243 17,246 Raw materials 104,189 70,009 Manufacturing and maintenance supplies 8,494 8,165 Total inventory $ 295,544 $ 233,484 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The Company’s operating and finance lease cost is as follows: Three Months Ended March 27, 2021 March 28, 2020 Operating Leases Operating lease expense $ 1,841 $ 1,804 Finance Leases Amortization of ROU assets 86 80 Interest 43 49 Total $ 1,970 $ 1,933 |
Balance Sheet Components | The Company’s consolidated balance sheet includes the following operating lease assets and liabilities: Balance Sheet Classification March 27, 2021 December 31, 2020 Right-of-use assets Other assets $ 18,238 $ 17,566 Lease liabilities, current Accrued and other current liabilities $ 6,266 $ 5,666 Lease liabilities, non-current Other long-term liabilities $ 13,140 $ 13,007 |
Operating Lease Maturity | As of March 27, 2021, operating lease maturities for the remainder of 2021 through 2025 and thereafter are as follows: March 27, 2021 Remainder of 2021 $ 5,437 2022 6,819 2023 5,713 2024 1,835 2025 789 Thereafter 841 Total minimum lease payments $ 21,434 Less: imputed interest (2,028) Present value of future minimum lease payments $ 19,406 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | The Company’s accrued and other current liabilities included the following: March 27, 2021 December 31, 2020 Accrued customer incentives and prepayments $ 24,651 $ 29,387 Accrued payroll and benefits 30,118 21,500 Accrued interest 19,343 3,230 Accrued income taxes 6,000 5,052 Accrued stumpage 19,017 10,045 Accrued property and other taxes 6,194 3,995 Other current liabilities 32,527 37,286 Total accrued and other current liabilities $ 137,850 $ 110,495 |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s debt and finance leases included the following: March 27, 2021 December 31, 2020 ABL Credit Facility due 2025, $142 million available, bearing interest 0.25% LIBOR floor plus 2.75%, interest rate of 3.00% at March 27, 2021 — — Senior Secured Notes due 2026 at a fixed interest rate of 7.625% $ 500,000 $ 500,000 Senior Notes due 2024 at a fixed interest rate of 5.5% 495,647 495,647 Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill 73,686 73,791 Other loans (a) 17,082 18,193 Short-term factoring facility-France 4,471 5,089 Finance lease obligation 2,404 2,489 Total debt principal payments due 1,093,290 1,095,209 Less: Debt premium, original issue discount and issuance costs, net (10,681) (11,272) Total debt 1,082,609 1,083,937 Less: Debt due within one year (17,446) (17,100) Long-term debt $ 1,065,163 $ 1,066,837 (a) Primarily loans for energy projects in France. |
Schedule of Maturities of Long-term Debt | As of March 27, 2021, debt and finance lease payments due during the remainder of 2021, the next four years and thereafter are as follows: Finance Lease Payments Debt Principal Payments Remainder of 2021 $ 386 $ 14,649 2022 515 30,426 2023 515 10,326 2024 515 505,895 2025 515 10,290 Thereafter 473 519,300 Total principal payments $ 2,919 $ 1,090,886 Less: Imputed interest 515 Present value minimum finance lease payments $ 2,404 |
Environmental Liabilities (Tabl
Environmental Liabilities (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Liabilities for Disposed Operations | An analysis of liabilities for the three months ended March 27, 2021 is as follows: Balance, December 31, 2020 $ 171,679 Increase in liabilities 225 Payments (419) Foreign currency adjustments 155 Balance, March 27, 2021 171,640 Less: Current portion (8,694) Long-term environmental liabilities $ 162,946 |
Derivatives Instruments (Tables
Derivatives Instruments (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of derivatives designated as hedging instruments, the related changes in AOCI and the gains and losses in income is as follows: Three Months Ended March 27, 2021 Derivatives Designated as Hedging Instruments Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ — $ — Interest expense Foreign exchange forward contracts $ — $ — Other operating income (expense), net Foreign exchange forward contracts $ — $ 1,828 Cost of sales Foreign exchange forward contracts $ — $ (100) Interest income and other, net Three Months Ended March 28, 2020 Gain (Loss) Recognized in OCI on Derivative Gain (Loss) Reclassified from AOCI into Income Location on Statement of Income Interest rate swaps $ (1,757) $ (120) Interest expense Foreign exchange forward contracts $ (26,532) $ (1,361) Other operating income (expense), net Foreign exchange forward contracts $ (394) $ 394 Cost of sales Foreign exchange forward contracts $ (6,902) $ (6,732) Interest income and other, net |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of derivative instruments not designated as hedging instruments on the consolidated statement of income were as follows: Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivative March 27, 2021 March 28, 2020 Foreign exchange forward contracts Other operating income (expense), net $ — $ (721) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The after-tax amounts of unrealized gains (losses) in AOCI related to hedge derivatives are presented below: March 27, 2021 December 31, 2020 Foreign exchange cash flow hedges $ 566 $ 1,834 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company, using market information and what management believes to be appropriate valuation methodologies: March 27, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Assets: Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $ 106,750 $ 106,750 $ — $ 93,653 $ 93,653 $ — Liabilities (a): Fixed-rate long-term debt 1,075,734 — 1,104,025 1,076,359 — 1,050,287 (a) Liabilities exclude finance lease obligation. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of AOCI are as follows: Three Months Ended March 27, 2021 March 28, 2020 Unrecognized components of employee benefit plans, net of tax: Balance, beginning of year $ (146,614) $ (126,638) Other comprehensive gain (loss) before reclassifications — 4,781 Income tax on other comprehensive loss — (1,238) Reclassifications to earnings: (a) Amortization of losses 4,082 3,393 Amortization of prior service costs 138 141 Income tax on reclassifications (918) (504) Foreign currency adjustments — — Net comprehensive gain (loss) on employee benefit plans, net of tax 3,302 6,573 Balance, end of quarter (143,312) (120,065) Unrealized gain (loss) on derivative instruments, net of tax: Balance, beginning of year 1,834 1,290 Other comprehensive gain (loss) before reclassifications — (35,585) Income tax on other comprehensive income — 8,255 Reclassifications to earnings: (b) Interest rate contracts — 120 Foreign exchange contracts (1,728) 7,699 Income tax on reclassifications 460 (1,149) Net comprehensive gain (loss) on derivative instruments, net of tax (1,268) (20,660) Balance, end of quarter 566 (19,370) Foreign currency translation adjustments: Balance, beginning of year 11,145 (13,879) Foreign currency translation adjustment, net of tax of $0 and $0 (9,268) (6,471) Balance, end of quarter 1,877 (20,350) Accumulated other comprehensive income (loss), end of quarter $ (140,869) $ (159,785) (a) The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 15— Employee Benefit Plans for additional information. (b) Reclassifications of interest rate contracts are recorded in interest expense. Reclassifications of foreign currency exchange contracts are recorded in cost of sales, other operating income or non-operating income as appropriate. See Note 9 — Derivative Instruments |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Schedule of Stockholder's Equity (Deficit) | An analysis of stockholders’ equity is shown below (share amounts not in thousands): Common Stock Additional Paid in Capital Retained Accumulated Other Comprehensive Loss Total Stockholders’ Shares Par Value For the three months ended March 27, 2021 Balance, January 1, 2021 63,359,839 $ 633 $ 405,161 $ 422,928 $ (133,635) $ 695,087 Net income (loss) — — — (27,027) — (27,027) Other comprehensive income (loss), net of tax — — — — (7,234) (7,234) Issuance of common stock under incentive stock plans 369,713 4 (4) — — — Stock-based compensation — — (653) — — (653) Repurchase of common shares (a) (132,196) (1) (1,418) — — (1,419) Balance, March 27, 2021 63,597,356 $ 636 $ 403,086 $ 395,901 $ (140,869) $ 658,754 For the three months ended March 28, 2020 Balance, January 1, 2020 63,136,129 $ 632 $ 399,020 $ 422,373 $ (139,227) $ 682,798 Net income (loss) — — — (24,127) — (24,127) Other comprehensive income (loss), net of tax — — — — (20,558) (20,558) Issuance of common stock under incentive stock plans 290,689 3 (3) — — — Stock-based compensation — — 1,943 — — 1,943 Repurchase of common shares (a) (179,951) (3) (435) — — (438) Balance, March 28, 2020 63,246,867 $ 632 $ 400,525 $ 398,246 $ (159,785) $ 639,618 (a) Repurchased to satisfy the tax withholding requirements related to the issuance of stock under the Rayonier Advanced Materials Incentive Stock Plan. |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per share: Three Months Ended March 27, 2021 March 28, 2020 Income (loss) from continuing operations $ (27,027) $ (24,835) Income (loss) from discontinued operations — 708 Net income (loss) available for common stockholders $ (27,027) $ (24,127) Shares used for determining basic earnings per share of common stock 63,430,601 62,982,735 Dilutive effect of: Stock options — — Performance and restricted stock — — Preferred stock — — Shares used for determining diluted earnings per share of common stock 63,430,601 62,982,735 Basic per share amounts Income (loss) from continuing operations $ (0.43) $ (0.39) Income (loss) from discontinued operations — 0.01 Net income (loss) $ (0.43) $ (0.38) Diluted per share amounts Income (loss) from continuing operations $ (0.43) $ (0.39) Income (loss) from discontinued operations — 0.01 Net income (loss) $ (0.43) $ (0.38) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive instruments excluded from the computation of diluted earnings per share: Three Months Ended March 27, 2021 March 28, 2020 Stock options 122,525 157,033 Performance and restricted stock 2,338,111 448,812 Total anti-dilutive instruments 2,460,636 605,845 |
Incentive Stock Plans (Tables)
Incentive Stock Plans (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity for Incentive Stock Awards | The following table summarizes the activity on the Company’s incentive stock awards for the three months ended March 27, 2021: Stock Options Restricted Stock and Stock Units Performance-Based Stock Units Options Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 152,281 $ 38.26 828,955 $ 10.27 1,821,402 $ 8.77 Granted — — 409,912 10.46 135,699 17.61 Forfeited — — (71,647) 14.11 (296,864) 9.01 Exercised or settled — — (186,830) 22.21 (302,516) 22.76 Expired or cancelled (29,756) 33.39 — — — — Outstanding at March 27, 2021 122,525 $ 39.44 980,390 $ 7.79 1,357,721 $ 6.49 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Postretirement Benefit Costs | The components of net periodic benefit costs from these plans that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost March 27, 2021 March 28, 2020 March 27, 2021 March 28, 2020 Service cost $ 3,083 $ 2,667 $ 370 $ 363 Interest cost 4,806 6,340 207 318 Expected return on plan assets (10,436) (10,545) — — Amortization of prior service cost 176 179 (38) (38) Amortization of losses 4,079 3,427 3 (34) Total net periodic benefit cost $ 1,708 $ 2,068 $ 542 $ 609 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Net sales, disaggregated by product-line, was comprised of the following: Three Months Ended March 27, 2021 March 28, 2020 High Purity Cellulose Cellulose Specialties $ 167,837 $ 160,235 Commodity Products 58,933 66,524 Other sales (a) 22,991 22,819 Total High Purity Cellulose 249,761 249,578 Forest Products Lumber 127,711 60,549 Other sales (b) 19,060 21,750 Total Forest Products 146,771 82,299 Paperboard Paperboard 47,849 50,486 Pulp & Newsprint Pulp 27,544 29,975 Newsprint 11,491 16,703 Total Pulp & Newsprint 39,035 46,678 Eliminations (18,275) (19,233) Total net sales $ 465,141 $ 409,808 (a) Other sales include sales of electricity, lignin and other by-products to third-parties (b) Other sales include sales of logs, wood chips and other by-products to other Company segments and third-parties Operating income (loss) by segment was comprised of the following: Three Months Ended March 27, 2021 March 28, 2020 High Purity Cellulose $ 6,427 $ (4,858) Forest Products 60,750 (1,311) Paperboard 5,755 4,674 Pulp & Newsprint (5,900) (5,876) Corporate (12,236) (4,637) Total operating income (loss) $ 54,796 $ (12,008) Identifiable assets by segment were as follows: March 27, 2021 December 31, 2020 High Purity Cellulose $ 1,511,465 $ 1,528,929 Forest Products 235,996 186,321 Paperboard 127,525 129,871 Pulp & Newsprint 100,844 99,374 Corporate 539,445 585,370 Total identifiable assets $ 2,515,275 $ 2,529,865 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flows Information (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flows information were comprised of the following for the three months ended: March 27, 2021 March 28, 2020 Interest paid $ 851 $ 8,115 Income taxes paid (received) $ 54 $ (390) Capital assets purchased on account $ 12,848 $ 7,622 Assets acquired under operating leases $ 1,768 $ 119 |
Basis of Presentation and New_3
Basis of Presentation and New Accounting Pronouncements (Details) - Discontinued Operations, Held-for-sale - Lumber and Newsprint Facilities $ in Millions, $ in Millions | Apr. 12, 2021USD ($)facility | Apr. 12, 2021CAD ($)facility | Mar. 27, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Inventory | $ 107 | ||
Net assets included in transaction | $ 238 | ||
Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Purchase price | $ 214 | ||
Inventory | $ 74 | ||
Purchase price paid in cash | 85.00% | 85.00% | |
Credit note to be issued | $ 8 | ||
Credit note to be issued, term which can be offset against amounts owed | 5 years | 5 years | |
Number of facilities disposed | facility | 6 | 6 | |
Payment for duties | $ 98 | ||
Supply term | 20 years | 20 years | |
Cash tax impact | $ 10 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | Nov. 30, 2019USD ($) |
Matane Plant | Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross purchase price | $ 175 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (490) | $ (487) |
Total accounts receivable, net | 182,639 | 179,208 |
Accounts receivable, trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | 152,194 | 140,036 |
Accounts receivable, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, gross | $ 30,935 | $ 39,659 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 163,618 | $ 138,064 |
Work-in-progress | 19,243 | 17,246 |
Raw materials | 104,189 | 70,009 |
Manufacturing and maintenance supplies | 8,494 | 8,165 |
Total inventory | $ 295,544 | $ 233,484 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average discount rate | 5.80% | 6.10% | |
Finance lease, weighted average discount rate | 7.00% | 7.00% | |
Weighted average remaining lease term, operating leases | 3 years 4 months 24 days | 5 years 10 months 24 days | |
Weighted average remaining lease term, finance leases | 5 years 8 months 12 days | 3 years 7 months 6 days | |
Operating lease payments | $ 2 | $ 2 | |
Assets acquired under finance leases | $ 2 | $ 2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 7 years 10 months 24 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Leases | ||
Operating lease expense | $ 1,841 | $ 1,804 |
Finance Leases | ||
Amortization of ROU assets | 86 | 80 |
Interest | 43 | 49 |
Total | $ 1,970 | $ 1,933 |
Leases - Balance Sheet Componen
Leases - Balance Sheet Components (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right-of-use assets | $ 18,238 | $ 17,566 |
Lease liabilities, current | 6,266 | 5,666 |
Lease liabilities, non-current | $ 13,140 | $ 13,007 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other current liabilities (Note 6) | Accrued and other current liabilities (Note 6) |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Long-Term Liabilities | Other Long-Term Liabilities |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Mar. 27, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 5,437 |
2022 | 6,819 |
2023 | 5,713 |
2024 | 1,835 |
2025 | 789 |
Thereafter | 841 |
Total minimum lease payments | 21,434 |
Less: imputed interest | (2,028) |
Present value of future minimum lease payments | $ 19,406 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued customer incentives and prepayments | $ 24,651 | $ 29,387 |
Accrued payroll and benefits | 30,118 | 21,500 |
Accrued interest | 19,343 | 3,230 |
Accrued income taxes | 6,000 | 5,052 |
Accrued stumpage | 19,017 | 10,045 |
Accrued property and other taxes | 6,194 | 3,995 |
Other current liabilities | 32,527 | 37,286 |
Total accrued and other current liabilities | $ 137,850 | $ 110,495 |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Finance lease obligation | $ 2,404 | $ 2,489 |
Total debt principal payments due | 1,093,290 | 1,095,209 |
Less: Debt premium, original issue discount and issuance costs, net | (10,681) | (11,272) |
Total debt | 1,082,609 | 1,083,937 |
Less: Debt due within one year | (17,446) | (17,100) |
Long-term debt | 1,065,163 | 1,066,837 |
Short-term factoring facility-France | Credit Facility | ||
Debt Instrument [Line Items] | ||
Short-term debt, gross | 4,471 | 5,089 |
Credit Facility | ABL Credit Facility due 2025, $142 million available, bearing interest 0.25% LIBOR floor plus 2.75%, interest rate of 3.00% at March 27, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 0 |
Credit Facility | ABL Credit Facility due 2025, $142 million available, bearing interest 0.25% LIBOR floor plus 2.75%, interest rate of 3.00% at March 27, 2021 | LIBOR | ||
Debt Instrument [Line Items] | ||
Rate floor | 0.25% | |
Basis spread | 2.75% | |
Interest rate | 3.00% | |
Senior Notes | Senior Secured Notes due 2026 at a fixed interest rate of 7.625% | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 7.625% | |
Long-term debt, gross | $ 500,000 | 500,000 |
Senior Notes | Senior Notes due 2024 at a fixed interest rate of 5.5% | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 5.50% | |
Long-term debt, gross | $ 495,647 | 495,647 |
Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 73,686 | 73,791 |
Loans | Other loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 17,082 | $ 18,193 |
Minimum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 5.50% | |
Maximum | Loans | Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 6.86% |
Debt and Finance Leases - Sched
Debt and Finance Leases - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Finance Lease Payments | ||
Remainder of 2021 | $ 386 | |
2022 | 515 | |
2023 | 515 | |
2024 | 515 | |
2025 | 515 | |
Thereafter | 473 | |
Total principal payments | 2,919 | |
Less: Imputed interest | 515 | |
Present value minimum finance lease payments | 2,404 | $ 2,489 |
Debt Principal Payments | ||
Remainder of 2021 | 14,649 | |
2022 | 30,426 | |
2023 | 10,326 | |
2024 | 505,895 | |
2025 | 10,290 | |
Thereafter | 519,300 | |
Total principal payments | $ 1,090,886 |
Environmental Liabilities - Ana
Environmental Liabilities - Analysis of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Dec. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance, December 31, 2020 | $ 171,679 | |
Increase in liabilities | 225 | |
Payments | (419) | |
Foreign currency adjustments | 155 | |
Balance, March 27, 2021 | 171,640 | |
Less: Current portion | (8,694) | $ (8,684) |
Long-term environmental liabilities | $ 162,946 | $ 162,995 |
Environmental Liabilities - Nar
Environmental Liabilities - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 27, 2021USD ($) | |
Environmental Remediation Obligations [Abstract] | |
Loss exposure in excess of accrual, high estimate | $ 78 |
Probable costs expected to be incurred, term | 20 years |
Derivatives Instruments - Narra
Derivatives Instruments - Narrative (Details) - Foreign exchange forward contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 27, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Net after-tax gain deferred as a component of accumulated other comprehensive income (loss) | $ 0.6 | $ 2 |
Gain recognized out of accumulated other comprehensive income (loss) | $ 1.3 |
Derivatives Instruments - Deriv
Derivatives Instruments - Derivative Instruments Classified as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Interest expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | $ 0 | $ (1,757) |
Gain (Loss) Reclassified from AOCI into Income | 0 | (120) |
Other operating income (expense), net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 0 | (26,532) |
Gain (Loss) Reclassified from AOCI into Income | 0 | (1,361) |
Cost of sales | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 0 | (394) |
Gain (Loss) Reclassified from AOCI into Income | 1,828 | 394 |
Interest income and other, net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | 0 | (6,902) |
Gain (Loss) Reclassified from AOCI into Income | $ (100) | $ (6,732) |
Derivatives Instruments - Der_2
Derivatives Instruments - Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Other operating income (expense), net | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gain (loss) recognized in income on derivative | $ 0 | $ (721) |
Derivatives Instruments - After
Derivatives Instruments - After-tax Amounts of Unrealized Gain in AOCL Related to Hedge Derivatives (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 | Mar. 28, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||||
Stockholder's equity | $ 658,754 | $ 695,087 | $ 639,618 | $ 682,798 |
Unrealized gain on derivative | ||||
Derivative [Line Items] | ||||
Stockholder's equity | 566 | 1,834 | $ (19,370) | $ 1,290 |
Cash Flow Hedging | Unrealized gain on derivative | Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Stockholder's equity | $ 566 | $ 1,834 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 106,750 | $ 93,653 |
Fixed-rate long-term debt | 1,075,734 | 1,076,359 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 106,750 | 93,653 |
Fixed-rate long-term debt | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Fixed-rate long-term debt | $ 1,104,025 | $ 1,050,287 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 695,087 | $ 682,798 |
Total other comprehensive income (loss) | (7,234) | (20,558) |
Ending balance | 658,754 | 639,618 |
Tax effects of foreign translation adjustment | 0 | 0 |
Unrecognized components of employee benefit plans, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (146,614) | (126,638) |
Other comprehensive income (loss) before reclassifications | 0 | 4,781 |
Income tax on other comprehensive income (loss) | 0 | (1,238) |
Income tax on reclassifications | (918) | (504) |
Foreign currency adjustments | 0 | 0 |
Total other comprehensive income (loss) | 3,302 | 6,573 |
Ending balance | (143,312) | (120,065) |
Amortization of losses | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 4,082 | 3,393 |
Amortization of prior service costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 138 | 141 |
Unrealized gain (loss) on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 1,834 | 1,290 |
Other comprehensive income (loss) before reclassifications | 0 | (35,585) |
Income tax on other comprehensive income (loss) | 0 | 8,255 |
Income tax on reclassifications | 460 | (1,149) |
Total other comprehensive income (loss) | (1,268) | (20,660) |
Ending balance | 566 | (19,370) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 11,145 | (13,879) |
Total other comprehensive income (loss) | (9,268) | (6,471) |
Ending balance | 1,877 | (20,350) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (133,635) | (139,227) |
Total other comprehensive income (loss) | (7,234) | (20,558) |
Ending balance | (140,869) | (159,785) |
Interest rate swaps | Unrealized gain (loss) on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | 0 | 120 |
Foreign exchange forward contracts | Unrealized gain (loss) on derivative instruments, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Reclassifications to earnings | $ (1,728) | $ 7,699 |
Stockholder's Equity - Stockhol
Stockholder's Equity - Stockholder's Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 695,087 | $ 682,798 |
Net income (loss) | (27,027) | (24,127) |
Other comprehensive income (loss), net of tax | (7,234) | (20,558) |
Issuance of common stock under incentive stock plans | 0 | 0 |
Stock-based compensation | (653) | 1,943 |
Repurchase of common shares (a) | (1,419) | (438) |
Ending balance | 658,754 | 639,618 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 633 | $ 632 |
Beginning balance (in shares) | 63,359,839 | 63,136,129 |
Issuance of common stock under incentive stock plans | $ 4 | $ 3 |
Issuance of common stock under incentive stock plans (in shares) | 369,713 | 290,689 |
Repurchase of common shares (a) | $ (1) | $ (3) |
Repurchase of common stock (in shares) | (132,196) | (179,951) |
Ending balance (in shares) | 63,597,356 | 63,246,867 |
Ending balance | $ 636 | $ 632 |
Additional Paid in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 405,161 | 399,020 |
Issuance of common stock under incentive stock plans | (4) | (3) |
Stock-based compensation | (653) | 1,943 |
Repurchase of common shares (a) | (1,418) | (435) |
Ending balance | 403,086 | 400,525 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 422,928 | 422,373 |
Net income (loss) | (27,027) | (24,127) |
Ending balance | 395,901 | 398,246 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (133,635) | (139,227) |
Other comprehensive income (loss), net of tax | (7,234) | (20,558) |
Ending balance | $ (140,869) | $ (159,785) |
Stockholder's Equity - Narrativ
Stockholder's Equity - Narrative (Details) - USD ($) | Mar. 27, 2021 | Jan. 29, 2018 |
Equity [Abstract] | ||
Amount authorized under share repurchase program | $ 100,000,000 | |
Amount available under share repurchase program | $ 60,000,000 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations | $ (27,027) | $ (24,835) |
Income (loss) from discontinued operations | 0 | 708 |
Net income (loss) available for common stockholders | $ (27,027) | $ (24,127) |
Shares used for determining basic earnings per share of common stock (in shares) | 63,430,601 | 62,982,735 |
Dilutive effect of: | ||
Stock options (in shares) | 0 | 0 |
Performance and restricted stock (in shares) | 0 | 0 |
Preferred stock (in shares) | 0 | 0 |
Shares used for determining diluted earnings per share of common stock (in shares) | 63,430,601 | 62,982,735 |
Basic per share amounts | ||
Income (loss) from continuing operations (in dollars per share) | $ (0.43) | $ (0.39) |
Income (loss) from discontinued operations (in dollars per share) | 0 | 0.01 |
Net income (loss) per common share-basic (in dollars per share) | (0.43) | (0.38) |
Diluted per share amounts | ||
Income (loss) from continuing operations (in dollars per share) | (0.43) | (0.39) |
Income (loss) from discontinued operations (in dollars per share) | 0 | 0.01 |
Net income (loss) per common share-diluted (in dollars per share) | $ (0.43) | $ (0.38) |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 2,460,636 | 605,845 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 122,525 | 157,033 |
Performance and restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive instruments (in shares) | 2,338,111 | 448,812 |
Incentive Stock Plans - Narrati
Incentive Stock Plans - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 27, 2021 | Mar. 27, 2021 | Mar. 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation cost (benefit) | $ (653) | $ 1,943 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance-Based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Settlement percentage | 60.00% | ||
Shares issued (in shares) | 182,811 | ||
Performance-Based Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout percentage | 0.00% | ||
Performance-Based Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target payout percentage | 200.00% |
Incentive Stock Plans - Schedul
Incentive Stock Plans - Schedule of Outstanding Awards (Details) | 3 Months Ended |
Mar. 27, 2021$ / sharesshares | |
Stock Options | |
Stock Options, Options | |
Beginning Balance (in shares) | shares | 152,281 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Exercised or settled (in shares) | shares | 0 |
Expired or cancelled (in shares) | shares | (29,756) |
Ending Balance (in shares) | shares | 122,525 |
Stock Options, Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 38.26 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Exercised or settled (in dollars per share) | $ / shares | 0 |
Expired or cancelled (in dollars per share) | $ / shares | 33.39 |
Ending balance (in dollars per share) | $ / shares | $ 39.44 |
Restricted Stock and Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 828,955 |
Granted (in shares) | shares | 409,912 |
Forfeited (in shares) | shares | (71,647) |
Exercised or settled (in shares) | shares | (186,830) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 980,390 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 10.27 |
Granted (in dollars per share) | $ / shares | 10.46 |
Forfeited (in dollars per share) | $ / shares | 14.11 |
Exercised or settled (in dollars per share) | $ / shares | 22.21 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 7.79 |
Performance-Based Stock Units | |
Awards Other than Options, Awards | |
Beginning Balance (in shares) | shares | 1,821,402 |
Granted (in shares) | shares | 135,699 |
Forfeited (in shares) | shares | (296,864) |
Exercised or settled (in shares) | shares | (302,516) |
Expired or cancelled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 1,357,721 |
Awards Other than Options, Weighted Average Grant Date Fair Value | |
Beginning balances (in dollars per share) | $ / shares | $ 8.77 |
Granted (in dollars per share) | $ / shares | 17.61 |
Forfeited (in dollars per share) | $ / shares | 9.01 |
Exercised or settled (in dollars per share) | $ / shares | 22.76 |
Expired or cancelled (in dollars per share) | $ / shares | 0 |
Ending balances (in dollars per share) | $ / shares | $ 6.49 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Pension | ||
Defined Benefit Plans Disclosure [Line Items] | ||
Service cost | $ 3,083 | $ 2,667 |
Interest cost | 4,806 | 6,340 |
Expected return on plan assets | (10,436) | (10,545) |
Amortization of prior service cost | 176 | 179 |
Amortization of losses | 4,079 | 3,427 |
Total net periodic benefit cost | 1,708 | 2,068 |
Postretirement | ||
Defined Benefit Plans Disclosure [Line Items] | ||
Service cost | 370 | 363 |
Interest cost | 207 | 318 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (38) | (38) |
Amortization of losses | 3 | (34) |
Total net periodic benefit cost | $ 542 | $ 609 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective rate | 172.00% | (6.00%) |
Income tax receivable from net operating loss carryforward | $ 33 | |
Non-current income tax receivable from net operating loss carryforward | 9 | |
Income tax receivable from tax years under examination | 22 | |
Current income tax receivable from tax years under examination | $ 17 |
Segment and Geographical Info_3
Segment and Geographical Information - Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021USD ($)segment | Mar. 28, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 5 | ||
Net sales | $ 465,141 | $ 409,808 | |
Operating income (loss) | 54,796 | (12,008) | |
Total identifiable assets | 2,515,275 | $ 2,529,865 | |
Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 249,761 | 249,578 | |
Operating income (loss) | 6,427 | (4,858) | |
Total identifiable assets | 1,511,465 | 1,528,929 | |
Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 146,771 | 82,299 | |
Operating income (loss) | 60,750 | (1,311) | |
Total identifiable assets | 235,996 | 186,321 | |
Operating Segments | Paperboard | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 5,755 | 4,674 | |
Total identifiable assets | 127,525 | 129,871 | |
Operating Segments | Pulp & Newsprint | |||
Segment Reporting Information [Line Items] | |||
Net sales | 39,035 | 46,678 | |
Operating income (loss) | (5,900) | (5,876) | |
Total identifiable assets | 100,844 | 99,374 | |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (12,236) | (4,637) | |
Total identifiable assets | 539,445 | $ 585,370 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (18,275) | (19,233) | |
Cellulose Specialties | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 167,837 | 160,235 | |
Commodity Products | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,933 | 66,524 | |
Other sales | Operating Segments | High Purity Cellulose | |||
Segment Reporting Information [Line Items] | |||
Net sales | 22,991 | 22,819 | |
Other sales | Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 19,060 | 21,750 | |
Lumber | Operating Segments | Forest Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 127,711 | 60,549 | |
Paperboard | Operating Segments | Paperboard | |||
Segment Reporting Information [Line Items] | |||
Net sales | 47,849 | 50,486 | |
Pulp | Operating Segments | Pulp & Newsprint | |||
Segment Reporting Information [Line Items] | |||
Net sales | 27,544 | 29,975 | |
Newsprint | Operating Segments | Pulp & Newsprint | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 11,491 | $ 16,703 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands, $ in Millions | Apr. 19, 2021CAD ($) | May 31, 2020CAD ($) | Mar. 27, 2021USD ($)sawmill | Mar. 28, 2020USD ($) | Mar. 27, 2021USD ($)sawmill | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | ||||||
Number of lumbar mills | sawmill | 6 | 6 | ||||
Anti-dumping duty | 160.00% | 160.00% | 600.00% | |||
Countervailing duty | 740.00% | 740.00% | 1400.00% | |||
Duties | $ 6,515 | $ 6,451 | $ 98,000 | |||
Duties receivable | $ 21,000 | $ 21,000 | ||||
IESO Investigation of the Kapuskasing Facility | ||||||
Guarantor Obligations [Line Items] | ||||||
Penalty | $ 25 | |||||
Penalty due immediately | 3 | |||||
Penalty due over time | $ 12 | |||||
Penalty payment period | 10 years | |||||
Penalty deferred | $ 10 | |||||
IESO Investigation of the Kapuskasing Facility | Subsequent Event | ||||||
Guarantor Obligations [Line Items] | ||||||
Settlement | $ 12 | |||||
Settlement payment period | 5 years | |||||
Settlement due immediately | $ 4.5 | |||||
Settlement due over time | 7.5 | |||||
Settlement suspended | $ 10.4 | |||||
LignoTech Florida | ||||||
Guarantor Obligations [Line Items] | ||||||
Ownership percentage | 45.00% | 45.00% | ||||
Borregaard ASA | LignoTech Florida | ||||||
Guarantor Obligations [Line Items] | ||||||
Ownership percentage | 55.00% | 55.00% | ||||
Financial Standby Letter of Credit | ||||||
Guarantor Obligations [Line Items] | ||||||
Letters of credit | $ 44,000 | $ 44,000 | ||||
Surety Bond | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantees | 85,000 | 85,000 | ||||
Contract Guarantee | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantees | $ 33,000 | $ 33,000 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flows Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 851 | $ 8,115 |
Income taxes paid (received) | 54 | (390) |
Capital assets purchased on account | 12,848 | 7,622 |
Assets acquired under operating leases | $ 1,768 | $ 119 |