Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GLT | |
Entity Registrant Name | GLATFELTER P H CO | |
Entity Central Index Key | 41,719 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,406,546 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 419,960 | $ 465,092 | $ 1,248,232 | $ 1,366,154 |
Energy and related sales, net | 1,153 | 860 | 3,936 | 6,912 |
Total revenues | 421,113 | 465,952 | 1,252,168 | 1,373,066 |
Costs of products sold | 361,205 | 385,439 | 1,107,319 | 1,196,076 |
Gross profit | 59,908 | 80,513 | 144,849 | 176,990 |
Selling, general and administrative expenses | 39,792 | 37,886 | 100,201 | 103,751 |
Gains on dispositions of plant, equipment and timberlands, net | (123) | (1,590) | (2,888) | (3,881) |
Operating income | 20,239 | 44,217 | 47,536 | 77,120 |
Non-operating income (expense) | ||||
Interest expense | (4,317) | (4,671) | (13,177) | (14,245) |
Interest income | 90 | 30 | 232 | 143 |
Other, net | (220) | (167) | (192) | 105 |
Total non-operating expense | (4,447) | (4,808) | (13,137) | (13,997) |
Income before income taxes | 15,792 | 39,409 | 34,399 | 63,123 |
Income tax provision | 2,288 | 9,037 | 4,122 | 13,434 |
Net income | $ 13,504 | $ 30,372 | $ 30,277 | $ 49,689 |
Earnings per share | ||||
Basic | $ 0.31 | $ 0.71 | $ 0.70 | $ 1.15 |
Diluted | 0.31 | 0.69 | 0.69 | 1.13 |
Cash dividends declared per common share | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.33 |
Weighted average shares outstanding | ||||
Basic | 43,457 | 43,049 | 43,363 | 43,233 |
Diluted | 43,865 | 43,841 | 43,949 | 44,111 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,504 | $ 30,372 | $ 30,277 | $ 49,689 |
Foreign currency translation adjustments | (3,262) | (33,450) | (27,895) | (33,255) |
Net change in: | ||||
Deferred gains (losses) on cash flow hedges, net of taxes of $1,045, $(593), $938, and $(974), respectively | (2,823) | 1,475 | (2,558) | 2,476 |
Unrecognized retirement obligations, net of taxes of $(1,895), $(1,463), $(5,675), and $(4,391), respectively | 3,083 | 2,398 | 9,253 | 7,193 |
Other comprehensive loss | (3,002) | (29,577) | (21,200) | (23,586) |
Comprehensive income | $ 10,502 | $ 795 | $ 9,077 | $ 26,103 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Taxes on deferred losses on cash flow hedges | $ 1,045 | $ (593) | $ 938 | $ (974) |
Taxes on unrecognized retirement obligations | $ (1,895) | $ (1,463) | $ (5,675) | $ (4,391) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 73,665 | $ 99,837 |
Accounts receivable, net | 177,917 | 163,760 |
Inventories | 248,086 | 248,705 |
Prepaid expenses and other current assets | 59,776 | 62,320 |
Total current assets | 559,444 | 574,622 |
Plant, equipment and timberlands, net | 697,324 | 697,608 |
Goodwill | 78,126 | 84,137 |
Intangible assets | 66,212 | 77,098 |
Other assets | 136,641 | 128,039 |
Total assets | 1,537,747 | 1,561,504 |
Liabilities and Shareholders' Equity | ||
Current portion of long-term debt | 7,580 | 5,734 |
Accounts payable | 151,751 | 157,070 |
Dividends payable | 5,228 | 4,775 |
Environmental liabilities | 16,022 | 1,075 |
Other current liabilities | 111,769 | 111,077 |
Total current liabilities | 292,350 | 279,731 |
Long-term debt | 381,535 | 398,878 |
Deferred income taxes | 101,207 | 104,016 |
Other long-term liabilities | 116,539 | 129,770 |
Total liabilities | $ 891,631 | $ 912,395 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock | $ 544 | $ 544 |
Capital in excess of par value | 52,852 | 54,342 |
Retained earnings | 934,077 | 919,468 |
Accumulated other comprehensive loss | (176,070) | (154,870) |
Shareholders' equity before treasury stock | 811,403 | 819,484 |
Less cost of common stock in treasury | (165,287) | (170,375) |
Total shareholders' equity | 646,116 | 649,109 |
Total liabilities and shareholders' equity | $ 1,537,747 | $ 1,561,504 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income | $ 30,277 | $ 49,689 |
Adjustments to reconcile to net cash provided by operations: | ||
Depreciation, depletion and amortization | 47,423 | 53,547 |
Amortization of debt issue costs | 893 | 985 |
Pension expense, net of unfunded benefits paid | 5,541 | 4,575 |
Charge for impairment of intangible asset | 1,200 | 3,262 |
Charge for environmental matter | 10,000 | |
Deferred income tax benefit | (2,043) | (4,434) |
Gains on dispositions of plant, equipment and timberlands, net | (2,888) | (3,881) |
Share-based compensation | 5,502 | 5,811 |
Change in operating assets and liabilities | ||
Accounts receivable | (21,572) | (35,528) |
Inventories | (5,714) | (19,982) |
Prepaid and other current assets | 420 | (2,367) |
Accounts payable | 5,561 | (25,576) |
Accruals and other current liabilities | 797 | (6,214) |
Environmental matters | (5,617) | (39) |
Other | 743 | 1,532 |
Net cash provided by operating activities | 70,523 | 21,380 |
Investing activities | ||
Expenditures for purchases of plant, equipment and timberlands | (74,280) | (47,036) |
Proceeds from disposals of plant, equipment and timberlands, net | 3,181 | 4,051 |
Acquisition, net of cash acquired | (224) | |
Other | (1,600) | (600) |
Net cash used by investing activities | (72,923) | (43,585) |
Financing activities | ||
Net repayments of revolving credit facility | (30,720) | |
Payments of borrowing costs | (1,329) | |
Repayment of term loans | (3,387) | |
Proceeds from term loans | 12,592 | |
Repurchases of common stock | (12,180) | |
Payments of dividends | (15,215) | (13,935) |
Payments related to share-based compensation awards and other | (2,015) | (1,764) |
Net cash used by financing activities | (21,946) | (46,007) |
Effect of exchange rate changes on cash | (1,826) | (1,015) |
Net decrease in cash and cash equivalents | (26,172) | (69,227) |
Cash and cash equivalents at the beginning of period | 99,837 | 122,882 |
Cash and cash equivalents at the end of period | 73,665 | 53,655 |
Cash paid for: | ||
Interest, net of amounts capitalized | 8,943 | 9,959 |
Income taxes, net | $ 14,566 | $ 19,928 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, PA, U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in Russia and China. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. ACCOUNTING POLICIES Basis of Presentation We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2014 Annual Report on Form 10-K. Accounting Estimates Recently Issued Accounting Pronouncements Revenue from Contracts with Customers |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition | 3. ACQUISITION On October 1, 2014, we completed the acquisition of all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for $8.2 million. SPO has annual sales of approximately $33 million. SPO, located near Frankfurt, Germany, primarily produces highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags. SPO is operated as part of the Composite Fibers business unit, and complements other technical specialties. |
Gains on Dispositions of Plant,
Gains on Dispositions of Plant, Equipment and Timberlands, Net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Gains on Dispositions of Plant, Equipment and Timberlands, Net | 4. GAINS ON DISPOSITIONS OF PLANT, EQUIPMENT AND TIMBERLANDS, NET During the first nine months of 2015 and 2014, we completed sales of assets as summarized in the following table: Dollars in thousands Acres Proceeds Gain 2015 Timberlands 1,398 $ 2,794 $ 2,704 Other n/a 387 184 Total $ 3,181 $ 2,888 2014 Timberlands 2,030 $ 4,041 $ 3,876 Other n/a 10 5 Total $ 4,051 $ 3,881 On October 9, 2015, we completed the sale of 9,803 acres of timberlands for $17.0 million in cash. We expect to realize an after-tax gain on the transaction of approximately $9.1 million in the fourth quarter of 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. EARNINGS PER SHARE The following table sets forth the details of basic and diluted earnings per share (“EPS”): Three months ended In thousands, except per share 2015 2014 Net income $ 13,504 $ 30,372 Weighted average common shares outstanding used in basic EPS 43,457 43,049 Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs 408 792 Weighted average common shares outstanding and common share equivalents used in diluted EPS 43,865 43,841 Earnings per share Basic $ 0.31 $ 0.71 Diluted 0.31 0.69 Nine months ended In thousands, except per share 2015 2014 Net income $ 30,277 $ 49,689 Weighted average common shares outstanding used in basic EPS 43,363 43,233 Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs 586 878 Weighted average common shares outstanding and common share equivalents used in diluted EPS 43,949 44,111 Earnings per share Basic $ 0.70 $ 1.15 Diluted 0.69 1.13 The following table sets forth potential common shares outstanding for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive: September 30 In thousands 2015 2014 Three months ended 696 282 Nine months ended 696 282 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 6. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2015 and 2014. in thousands Currency Unrealized gain Change in Change in other Total Balance at July 1, 2015 $ (58,857 ) $ 2,621 $ (114,076 ) $ (2,756 ) $ (173,068 ) Other comprehensive income before reclassifications (net of tax) (3,262 ) (1,381 ) — — (4,643 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — (1,442 ) 3,090 (7 ) 1,641 Net current period other comprehensive income (loss) (3,262 ) (2,823 ) 3,090 (7 ) (3,002 ) Balance at September 30, 2015 $ (62,119 ) $ (202 ) $ (110,986 ) $ (2,763 ) $ (176,070 ) Balance at July 1, 2014 $ 15,336 $ 60 $ (84,822 ) $ 60 $ (69,366 ) Other comprehensive income before reclassifications (net of tax) (33,450 ) 1,379 — — (32,071 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — 96 2,363 35 2,494 Net current period other comprehensive income (loss) (33,450 ) 1,475 2,363 35 (29,577 ) Balance at September 30, 2014 $ (18,114 ) $ 1,535 $ (82,459 ) $ 95 $ (98,943 ) in thousands Currency Unrealized gain Change in Change in other Total Balance at January 1, 2015 $ (34,224 ) $ 2,356 $ (120,260 ) $ (2,742 ) $ (154,870 ) Other comprehensive income before reclassifications (net of tax) (27,895 ) 793 — — (27,102 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — (3,351 ) 9,274 (21 ) 5,902 Net current period other comprehensive income (loss) (27,895 ) $ (2,558 ) 9,274 (21 ) (21,200 ) Balance at September 30, 2015 $ (62,119 ) $ (202 ) $ (110,986 ) $ (2,763 ) $ (176,070 ) Balance at January 1, 2014 $ 15,141 $ (941 ) $ (89,547 ) $ (10 ) $ (75,357 ) Other comprehensive income before reclassifications (net of tax) (33,255 ) 1,594 — — (31,661 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — 882 7,088 105 8,075 Net current period other comprehensive income (loss) (33,255 ) 2,476 7,088 105 (23,586 ) Balance at September 30, 2014 $ (18,114 ) $ 1,535 $ (82,459 ) $ 95 $ (98,943 ) Reclassifications out of accumulated other comprehensive income were as follows: Three months ended Nine months ended In thousands 2015 2014 2015 2014 Description Line Item in Statements of Income Cash flow hedges (Note 15) (Gains) losses on cash flow hedges $ (1,972 ) $ 137 $ (4,595 ) $ 1,227 Costs of products sold Tax (benefit) expense 530 (41 ) 1,244 (345 ) Income tax provision Net of tax (1,442 ) 96 (3,351 ) 882 Retirement plan obligations (Note 9) Amortization of deferred benefit pension plan items Prior service costs 571 621 1,713 1,864 Costs of products sold 189 206 568 618 Selling, general and administrative Actuarial losses 3,144 2,215 9,432 6,644 Costs of products sold 1,082 762 3,247 2,287 Selling, general and administrative 4,986 3,804 14,960 11,413 Tax benefit (1,896 ) (1,441 ) (5,686 ) (4,325 ) Income tax provision Net of tax 3,090 2,363 9,274 7,088 Amortization of deferred benefit other plan items Prior service costs (58 ) (59 ) (173 ) (178 ) Costs of products sold (12 ) (13 ) (37 ) (38 ) Selling, general and administrative Actuarial losses 48 106 142 319 Costs of products sold 10 23 31 68 Selling, general and administrative (12 ) 57 (37 ) 171 Tax benefit 5 (22 ) 16 (66 ) Income tax provision Net of tax (7 ) 35 (21 ) 105 Total reclassifications, net of tax $ 1,641 $ 2,494 $ 5,902 $ 8,075 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES Income taxes are recognized for the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates. As of September 30, 2015 and December 31, 2014, we had $12.0 million and $14.9 million of gross unrecognized tax benefits. As of September 30, 2015, if such benefits were to be recognized, approximately $12.0 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate. Gross unrecognized tax benefits reflected a net decrease of $2.9 million during the nine months ended September 30, 2015, primarily due to the completion of federal and state examinations during the second quarter. We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities. The following table summarizes, by major jurisdiction, tax years that remain subject to examination: Open Tax Years Jurisdiction Examinations not Examination United States Federal 2013 - 2014 N/A State 2010 - 2014 N/A Canada (1) 2010 - 2014 N/A Germany (1) 2012 - 2014 2007 - 2011 France 2013 - 2014 2011 - 2012 United Kingdom 2013 - 2014 N/A Philippines 2012, 2014 2013 (1) – includes provincial or similar local jurisdictions, as applicable The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. Substantially all of this range relates to tax positions taken in the U.S. and Germany. We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions: Nine months ended In millions 2015 2014 Interest expense $ — $ 0.1 Penalties — — September 30 December 31 Accrued interest payable $ 0.6 $ 0.6 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. STOCK-BASED COMPENSATION The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units. Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights. Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) The following table summarizes RSU and PSA activity during periods indicated: Units 2015 2014 Balance at January 1, 888,942 1,001,814 Granted 160,514 173,206 Forfeited (87,567 ) (45,355 ) Shares delivered (286,857 ) (239,394 ) Balance at September 30, 675,032 890,271 The amount granted in 2015 and 2014 includes PSAs of 105,017 and 95,691 respectively, exclusive of reinvested dividends. The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated: September 30 In thousands 2015 2014 Three months ended $ 395 $ 854 Nine months ended 1,214 1,874 Stock Only Stock Appreciation Rights (“SOSARs”) The following table sets forth information related to outstanding SOSARS. 2015 2014 SOSARS Shares Wtd Avg Shares Wtd Avg Outstanding at January 1, 1,864,707 $ 16.20 1,977,133 $ 13.91 Granted 423,590 24.62 281,881 29.22 Exercised (70,347 ) 14.12 (26,245 ) 15.67 Canceled / forfeited (17,559 ) 25.24 (29,842 ) 19.36 Outstanding at September 30, 2,200,391 $ 17.82 2,202,927 $ 15.77 SOSAR Grants Weighted average grant date fair value per share $ 7.46 $ 9.81 Aggregate grant date fair value (in thousands) $ 3,134 $ 2,764 Black-Scholes assumptions Dividend yield 1.94 % 1.48 % Risk free rate of return 1.64 % 1.74 % Volatility 36.38 % 37.59 % Expected life 6 yrs 6 yrs The following table sets forth SOSAR compensation expense for the periods indicated: September 30 In thousands 2015 2014 Three months ended $ 671 $ 577 Nine months ended 1,940 1,585 |
Retirement Plans and Other Post
Retirement Plans and Other Post-Retirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans and Other Post-Retirement Benefits | 9. RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS The following tables provide information with respect to the net periodic costs of our pension and post retirement medical benefit plans. Three months ended September 30 In thousands 2015 2014 Pension Benefits Service cost $ 2,850 $ 2,602 Interest cost 5,868 6,216 Expected return on plan assets (11,498 ) (10,969 ) Amortization of prior service cost 760 827 Amortization of unrecognized loss 4,226 2,977 Net periodic benefit cost $ 2,206 $ 1,653 Other Benefits Service cost $ 358 $ 614 Interest cost 499 597 Amortization of prior service cost (70 ) (72 ) Amortization of unrecognized loss 58 129 Net periodic benefit cost $ 845 $ 1,268 Nine months ended September 30 In thousands 2015 2014 Pension Benefits Service cost $ 8,546 $ 7,810 Interest cost 17,606 18,696 Expected return on plan assets (34,495 ) (32,907 ) Amortization of prior service cost 2,281 2,482 Amortization of unrecognized loss 12,679 8,931 Net periodic benefit cost $ 6,617 $ 5,012 Other Benefits Service cost $ 1,074 $ 1,844 Interest cost 1,498 1,793 Amortization of prior service cost (210 ) (216 ) Amortization of unrecognized loss 173 387 Net periodic benefit cost $ 2,535 $ 3,808 |
Asset Impairment Charge
Asset Impairment Charge | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairment Charge | 10. ASSET IMPAIRMENT CHARGE During the third quarters of 2015 and 2014, in connection with our annual test of potential impairment of indefinite lived intangible assets, we recorded $1.2 million and $3.3 million, respectively, of non-cash asset impairment charges related to a trade name intangible asset acquired in connection with our Composite Fibers business unit’s 2013 Dresden acquisition. The charges were due to changes in the estimated fair value of the trade name, primarily driven by lower forecasted revenues associated with the business, an increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political and economic instability. The charges are recorded in the accompanying condensed consolidated statements of income under the caption “Selling, general and administrative expenses.” The fair value of the asset was estimated using a discounted cash flow model, Level 3 fair value classification. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 11. INVENTORIES Inventories, net of reserves, were as follows: September 30 December 31 In thousands 2015 2014 Raw materials $ 59,985 $ 61,266 In-process and finished 117,980 117,580 Supplies 70,121 69,859 Total $ 248,086 $ 248,705 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. LONG-TERM DEBT Long-term debt is summarized as follows: September 30 December 31 In thousands 2015 2014 Revolving credit facility, due Mar. 2020 $ 83,464 $ — Revolving credit facility, due Nov. 2016 — 90,555 5.375% Notes, due Oct. 2020 250,000 250,000 2.40% Term Loan, due Jun. 2022 10,803 12,155 2.05% Term Loan, due Mar. 2023 44,848 51,902 Total long-term debt 389,115 404,612 Less current portion (7,580 ) (5,734 ) Long-term debt, net of current portion $ 381,535 $ 398,878 On March 12, 2015, we amended our revolving credit agreement with a consortium of banks (the “Revolving Credit Facility”) which increased the amount available for borrowing to $400 million, extended the maturity of the facility to March 12, 2020, and instituted a revised interest rate pricing grid. For all US dollar denominated borrowings under the Revolving Credit Facility, the borrowing rate is, at our option, either, (a) the bank’s base rate which is equal to the greater of i) the prime rate; ii) the federal funds rate plus 50 basis points; or iii) the daily Euro-rate plus 100 basis points plus an applicable spread over either i), ii) or iii) ranging from 12.5 basis points to 100 basis points based on the Company’s leverage ratio and its corporate credit ratings determined by Standard & Poor’s Rating Services and Moody’s Investor Service, Inc. (the “Corporate Credit Rating”); or (b) the daily Euro-rate plus an applicable margin ranging from 112.5 basis points to 200 basis points based on the Company’s leverage ratio and the Corporate Credit Rating. For non-US dollar denominated borrowings, interest is based on (b) above. The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); and ii) a consolidated EBITDA to interest expense ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of September 30, 2015, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.2x which is within the limits set forth in our credit agreement. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the credit facility. On October 3, 2012, we completed a private placement offering of $250.0 million aggregate principal amount of 5.375% Senior Notes due 2020 (the “5.375% Notes”). The 5.375% Notes are fully and unconditionally guaranteed, jointly and severally, by PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC (the “Guarantors”). Interest on the 5.375% Notes is payable semiannually in arrears on April 15 and October 15. The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a “make-whole” premium as specified in the Indenture. These Notes and the guarantees of the notes are senior obligations of the Company and the Guarantors, respectively, rank equally in right of payment with future senior indebtedness of the Company and the Guarantors and will mature on October 15, 2020. The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of September 30, 2015, we met all of the requirements of our debt covenants. Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, has two separate agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”). Pursuant to the first agreement, dated April 11, 2013, Gernsbach borrowed €42.7 million (or $57.6 million) aggregate principal amount (the “2013 IKB Loan”). The 2013 IKB Loan is repayable in 32 quarterly installments beginning on June 30, 2015 and ending on March 31, 2023 and bears interest at a rate of 2.05% per annum. Pursuant to the second agreement with IKB dated September 4, 2014, Gernsbach borrowed €10.0 million (or $12.6 million) aggregate principal amount (the “2014 IKB Loan”). The 2014 IKB Loan is repayable in 27 quarterly installments beginning on September 30, 2015 and ending on June 30, 2022 and bears interest at a rate of 2.40% per annum. Interest on the IKB Loan or portion thereof is payable quarterly. The IKB loans provide for representations, warranties and covenants customary for financings of these types. The financial covenants contained in each of the IKB loans, which relate to the minimum ratio of consolidated EBITDA to consolidated interest expense and the maximum ratio of consolidated total net debt to consolidated adjusted EBITDA, will be calculated by reference to our Revolving Credit Agreement. Aggregated unamortized deferred debt issuance costs incurred in connection with all of our outstanding debt totaled $5.6 million at September 30, 2015 and are reported under the caption “Other assets” in the accompanying condensed consolidated balance sheets. The deferred costs are being amortized on a straight line basis over the life of the underlying instruments. P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries, including each of the IKB loans. All such obligations are recorded in these condensed consolidated financial statements. As of September 30, 2015 and December 31, 2014, we had $5.3 million of letters of credit issued to us by certain financial institutions. The letters of credit, which reduce amounts available under our revolving credit facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit. |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 13. ASSET RETIREMENT OBLIGATION During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first nine months of 2015 and 2014: In thousands 2015 2014 Balance at January 1, $ 4,114 $ 5,032 Accretion 59 115 Payments (2,384 ) (767 ) Downward revision (1,000 ) — Gain (359 ) (128 ) Balance at September 30, $ 430 $ 4,252 During the second quarter of 2015 we recorded a downward revision to our estimated cost of closing the lagoons. The revision was recorded as an adjustment to both the carrying value of the associated property, equipment and timberlands as well as the asset retirement obligation. The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded: September 30 December 31 In thousands 2015 2014 Other current liabilities $ 430 $ 2,855 Other long-term liabilities — 1,259 Total $ 430 $ 4,114 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 14. FAIR VALUE OF FINANCIAL INSTRUMENTS The amounts reported on the condensed consolidated balance sheets for cash and cash equivalents and accounts receivable approximate fair value. The following table sets forth carrying value and fair value of long-term debt: September 30, 2015 December 31, 2014 In thousands Carrying Fair Carrying Fair Variable rate debt $ 83,464 $ 83,464 $ 90,555 $ 90,555 Fixed-rate bonds 250,000 253,908 250,000 255,470 2.40% Term loan 10,803 10,729 12,155 12,626 2.05% Term loan 44,848 43,611 51,902 53,106 Total $ 389,115 $ 391,712 $ 404,612 $ 411,757 As of September 30, 2015, and December 31, 2014, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 15. |
Financial Derivatives and Hedgi
Financial Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivatives and Hedging Activities | 15. FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.” Derivatives Designated as Hedging Instruments—Cash Flow Hedges We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases or certain production costs with exposure to changes in foreign currency exchange rates. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk is deferred as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets and is subsequently reclassified into costs of products sold in the period that inventory produced using the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly to earnings and reflected in the accompanying condensed consolidated statements of income as non-operating income (expense) under the caption “Other, net.” We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments: In thousands September 30 December 31 Derivative Sell/Buy - sell notional Euro / British Pound 9,189 4,592 Sell/Buy - buy notional Euro / Philippine Peso 661,453 523,313 British Pound / Philippine Peso 471,607 260,535 Euro / U.S. Dollar 47,751 32,527 U.S. Dollar / Canadian Dollar 19,205 10,036 These contracts have maturities of between twelve months and eighteen months from the date originally entered into. Derivatives Not Designated as Hedging Instruments—Foreign Currency Hedges The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities: In thousands September 30 December 31 Derivative Sell/Buy - sell notional U.S. Dollar / Euro — 4,000 U.S. Dollar / British Pound 7,000 9,000 Euro / British Pound — 2,000 British Pound / Euro 2,000 — Sell/Buy - buy notional Euro / U.S. Dollar 7,000 — British Pound / Euro 15,500 3,000 These contracts have maturities of one month from the date originally entered into. Fair Value Measurements In thousands September 30 December 31 September 30 December 31 Balance sheet caption Prepaid Expenses and Other Current Assets Other Current Liabilities Designated as hedging: Forward foreign currency exchange contracts $ 693 $ 3,106 $ 1,676 $ 394 Not designated as hedging: Forward foreign currency exchange contracts $ 91.0 $ 70 $ 0 $ 161 The amounts set forth in the table above represent the net asset or liability giving effect to rights of offset with each counterparty. The effect of netting the amounts presented above did not have a material effect on our consolidated financial position. The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded: Three months ended Nine months ended In thousands 2015 2014 2015 2014 Designated as hedging: Forward foreign currency exchange contracts: Effective portion – cost of products sold $ 1,972 $ (137 ) $ 4,595 $ (1,227 ) Ineffective portion – other – net (184 ) 81 104 181 Not designated as hedging : Forward foreign currency exchange contracts: Other – net $ 621 $ 595 $ 1,028 $ 1,792 The impact of activity not designated as hedging was substantially offset by the remeasurement of the underlying on-balance sheet item. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The fair values of the foreign exchange forward contracts are considered to be Level 2. Foreign currency forward contracts are valued using foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Prepaid expenses and other current assets” and the value of contracts in a loss position is recorded under the caption “Other current liabilities.” A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows: In thousands 2015 2014 Balance at January 1, $ 3,282 $ (1,296 ) Deferred gains on cash flow hedges 1,100 2,223 Reclassified to earnings (4,595 ) 1,227 Balance at September 30, $ (213 ) $ 2,154 We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be realized in results of operations within the next twelve months and the amount ultimately recognized will vary depending on actual market rates. Credit risk related to derivative activity arises in the event the counterparty fails to meet its obligations to us. This exposure is generally limited to the amounts, if any, by which the counterparty’s obligations exceed our obligation to them. Our policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings. |
Commitments, Contingencies and
Commitments, Contingencies and Legal Proceedings | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Legal Proceedings | 16. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS Fox River—Neenah, Wisconsin Background . The United States notified the following parties (“PRPs”) of their potential responsibility to implement response actions, to pay response costs, and to compensate for NRDs at this site: Appvion, Inc. (formerly known as Appleton Papers Inc.), CBC Coating, Inc. (formerly known as Riverside Paper Corporation), Georgia-Pacific Consumer Products, L.P. (“Georgia-Pacific”, formerly known as Fort James Operating Company), Menasha Corporation, NCR Corporation (“NCR”), U.S. Paper Mills Corp., and WTM I Company. As described below, many other parties have been joined in litigation. After giving effect to settlements reached with the Governments, the remaining PRPs exposed to continuing obligations to implement the remainder of the cleanup consist of us, Georgia-Pacific and NCR. The Site has been subject to certain studies and the parties conducted certain demonstration projects and completed certain interim cleanups. The permanent cleanup, known as a “remedial action” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), consists of sediment dredging, installation of engineered caps, and placement of sand covers in various areas in the bed of the river. The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”). We and WTM I Company implemented the remedial action in OU1 under a consent decree with the Governments; Menasha Corporation made a financial contribution to that work. That project began in 2004 and the work is complete other than on-going monitoring and maintenance. For OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions from 2007 through 2014 were funded primarily by NCR and its indemnitors, including Appvion, Inc. In late June 2015, we began placing sand covers and certain other covering and capping in OU4b as a response to the Government’s demands. We expect the cost of the remediation we will perform in 2015 to be approximately $10 million. Georgia Pacific and NCR are funding work in 2015 pursuant to a proposed consent decree. Work is scheduled to continue in OU2-5 through 2017; although work may be required into 2018 to complete the project, with monitoring and maintenance to follow. Although we have not contributed significant funds towards remedial actions other than in OU1 until 2015, as more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5. Cost estimates. In previous years, the Governments indicated their expectation was to have work in OU2-5 completed at a rate estimated to cost at least $70 million annually in 2015 and 2016, and at lower rates thereafter. However, the Governments have revised their estimate per year and the cost for the 2015 dredging season was increased to be approximately $100 million. As the result of a partial settlement, Georgia-Pacific has no obligation to pay for work upstream of a line near Georgia-Pacific’s Green Bay West Mill located in OU4. We believe substantially all in-water work upstream of this line had been completed as of the end of the 2014 dredging season. Allocation Litigation. OU2-5 All parties appealed the Whiting Litigation judgment to the United States Court of Appeals for the Seventh Circuit. On September 25, 2014, that court affirmed, holding that if knowledge and fault were the only equitable factors governing allocation of costs and NRDs at the Site, NCR would owe 100% of all costs and damages in OU2-5, but would not have a share of costs in OU1 — which is upstream of the outfall of the facilities for which NCR is responsible — solely as an “arranger for disposal” of PCB-containing waste paper by recycling it at our mill. However, the court of appeals vacated the judgment and remanded the case for the district court’s further consideration of whether any other equitable factors might cause the district court to alter its allocation. We contend the district court should, after further consideration, reinstate the 100%, or some similar very high, allocation to NCR of all the costs, and should hold that we should bear no share or a very small share. However, NCR has taken a contrary position and has sought contributions from others for future work until all allocation issues are resolved. In addition, we take the position that the “single site” theory on which the courts held us responsible for cleaning up parts of the Site far downstream of our former mill should, if applied to NCR, make it liable for costs incurred in OU1. The district court agreed with us in an order dated March 3, 2015. On March 31, 2015, NCR sought review of that order by the court of appeals which review was denied on May 1, 2015. However, on May 15, 2015, the district court issued an opinion in the Government Action, described below, containing a sentence suggesting that NCR would not be liable for OU1. Also as described below, on October 19, 2015, the district court reconsidered its May 15 opinion and ruled against NCR generally, although with no specific reference to OU1. Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party, then Appvion may have a right to recover those costs under CERCLA. We and Appvion disagree over the proper treatment of amounts that Appvion incurred while a PRP that were also subject to a cost-sharing agreement with NCR; we contend Appvion may not recover costs it was contractually obligated to incur, that it has no other costs, and if it did, we would have a right to contribution of any recovery against NCR and others. However, Appvion takes a contrary position and claims in excess of $170 million. The district court has established a schedule for the Whiting Litigation under which it would hold a trial in July 2016 on remaining issues. Enforcement Litigation. All other potentially responsible parties, including the United States and the State of Wisconsin, have settled with the Governments. As a result, the remaining defendants consist of us, NCR, and Georgia-Pacific. We appealed the injunction to the United States Court of Appeals for the Seventh Circuit, as did NCR, WTM I, and Menasha. On September 25, 2014, the court of appeals decided our and NCR’s appeals; the others’ appeals were not decided because they entered into a settlement. The court of appeals vacated the injunction as to us and NCR. However, it affirmed the district court’s ruling that we are liable for response actions in OU2-5 and for complying with the UAO. The court of appeals vacated and remanded the district court’s decision that NCR had failed to prove that liability for OU2-5 could be apportioned, directing the lower court to consider issues it had not considered initially. On remand, the district court issued an opinion on May 15, 2015, (“May 15 Decision”) in which it held that the existing trial record allowed it to apportion NCR’s liability for OU4 at 28% of the total OU4 costs. The district court did not apportion liability for OU2 or OU3. The court’s opinion contains a sentence stating that NCR would not be liable for OU1 because the facilities formerly owned by NCR discharged downstream. We moved for reconsideration of the May 15 Decision, as did the United States, Georgia-Pacific, and certain other parties. On October 19, 2015, the district court reconsidered its May 15 Decision and held that NCR had not shown a reasonable basis for apportionment of its liability for the site. We do not know the Governments’ intentions concerning further litigation of the Government Action, nor do we know the schedule for any further proceedings. We cannot now predict when it will be resolved. Interim Funding of Ongoing Work. We anticipate that $10 million of work in 2015 would satisfy our share of the obligation if NCR and GP perform the work assigned to them in the 2015 Work Plan. The United States disagrees. We cannot predict the outcome of these disagreements or any possible resulting litigation. With respect to the 2015 Work Plan, we disagree with the United States over i) whether the work purportedly assigned to us could be completed in the specified timeframe; ii) whether the EPA has the legal authority to assign remedial tasks as it purports to have done under the terms of the UAO; iii) whether we have available to us avenues for relief from the purported obligation to perform the assigned work in 2015; iv) whether we have any other responses of which we may avail our self; v) whether an arbitrary per capita allocation of one-third can be imposed on us in light of the multiple rulings by the courts since 2009 that appear inconsistent with a per capita allocation; and vi) whether the 2015 Work Plan affects the Company’s ultimate liability for this Site. In September 2015, the U.S. Department of Justice notified us that we, along with Georgia - Pacific, should be prepared to participate in the remediation activities during 2016. In addition, we understand NCR has submitted a draft 2016 Work Plan. Although we do not have an estimate of the costs of completing the work NCR proposes be completed in 2016, we expect the cost could approximate $100 million. The draft does not assign work to particular parties. Because we may not be able to obtain an agreement with the other parties or a ruling in litigation defining our obligation to contribute to work in 2016 prior to the time that work would have to be implemented, it is conceivable that we may have to choose an amount of work that we believe satisfies any obligation we may have to complete work in 2016, which selection we will have to defend after the fact. It is also conceivable we may be in the same position with respect to work in OU2-5 beyond the 2016 season. Although we are unable to determine with any degree of certainty the amount we may be required to complete or fund, those amounts could be significant. Any amounts we pay or any other party pays in the interim may be subject to reallocation when the Whiting Litigation is resolved. NRDs. However, on October 14, 2014, the Governments represented to the district court that if certain settlements providing $45.9 million toward compensation of NRDs were approved, the total NRD recovery would amount to $105 million. The Governments stated they would consider those recoveries adequate and they would withdraw their claims against us and NCR for additional compensation of NRDs. On October 19, 2015, the district court granted the Governments leave to withdraw their NRD claims against us without prejudice to re-filing them at some later time. Some of the settling parties, including all of the settling parties contributing the $45.9 million, have waived their rights to seek contribution from us of the settlement amounts. We previously paid a portion of the earlier settlements that the Governments value at $59 million and that we contend may be somewhat more. Reserves for the Site. In thousands 2015 2014 Balance at January 1, $ 16,223 $ 16,276 Payments (5,617 ) (39 ) Accruals 10,000 — Balance at September 30, $ 20,606 $ 16,237 The payments set forth above represent cash paid towards completion of remediation activities in connection with the 2015 Work Plan, of which approximately $4.5 million will be paid during the fourth quarter of 2015. In addition, in the third quarter of 2015 we increased our reserve by $10.0 million to reflect our estimate of costs to be incurred related to the 2016 Work Plan. The charge is recorded in the accompanying condensed consolidated financial statements under the caption “Selling, general and administrative expenses.” If we are unsuccessful in the allocation litigation or in the enforcement litigation described above, we may be required to record additional charges and such charges could be significant. Of our total reserve for the Fox River, $16.0 million is recorded in the accompanying September 30, 2015 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.” As described above, the appellate court vacated and remanded for reconsideration the district court’s ruling in the Whiting Litigation that NCR would bear 100% of costs for the downstream portion of the Site. We continue to believe we will not be allocated a significant share of liability in any final equitable allocation of the response costs for OU2-5 or for NRDs. The accompanying condensed consolidated financial statements do not include reserves for any future defense costs, which could be significant, related to our involvement at the Site. In setting our reserve for the Site, we have assessed our legal defenses, including our successful defenses to the allegations made in the Whiting Litigation and the original determination in the Whiting Litigation that NCR owes us “full contribution” for response costs and for NRDs that we may become obligated to pay except in OU1. We assume we will not bear the entire cost of remediation or damages to the exclusion of other known parties at the Site, who are also jointly and severally liable. The existence and ability of other parties to participate has also been taken into account in setting our reserve, and setting our reserve is generally based on our evaluation of recent publicly available financial information on certain of the responsible parties and any known insurance, indemnity or cost sharing agreements between responsible parties and third parties. In addition, we have considered the magnitude, nature, location and circumstances associated with the various discharges of PCBs to the river and the relationship of those discharges to identified contamination. We will continue to evaluate our exposure and the level of our reserves associated with the Site. Other Information. Based upon the rulings in the Whiting Litigation and the Government Action, neither of which endorsed an equitable allocation in proportion to the mass of PCBs discharged, we continue to believe an allocation in proportion to mass of PCBs discharged would not constitute an equitable allocation of the potential liability for the contamination at the Fox River. We contend other factors, such as a party’s role in causing costs, the location of discharge, and the location of contamination must be considered in order for the allocation to be equitable. Range of Reasonably Possible Outcomes. We expect remediation costs to be incurred primarily over the next two to three years, although we are unable to determine with any degree of certainty the amount we may be required to fund for interim remediation work. To the extent we provide such interim funding, we contend that NCR or another party would be required to reimburse us once the final allocation is determined. Summary. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 17. SEGMENT INFORMATION The following tables set forth financial and other information by business unit for the period indicated: Three months ended September 30 Dollars in millions Composite Fibers Advanced Airlaid Specialty Papers Other and Unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 133.9 $ 154.5 $ 63.2 $ 74.4 $ 222.8 $ 236.2 $ — $ — $ 420.0 $ 465.1 Energy and related sales, net — — — — 1.2 0.9 — — 1.2 0.9 Total revenue 133.9 154.5 63.2 74.4 224.0 237.1 — — 421.1 466.0 Cost of products sold 108.4 123.7 54.6 64.7 196.1 195.2 2.1 1.8 361.2 385.4 Gross profit (loss) 25.5 30.8 8.6 9.7 27.9 41.9 (2.1 ) (1.8 ) 59.9 80.5 SG&A 11.5 12.6 1.8 2.2 10.4 14.1 16.2 9.0 39.8 37.9 Gains on dispositions of plant, equipment and timberlands, net — — — — — — (0.1 ) (1.6 ) (0.1 ) (1.6 ) Total operating income (loss) 14.0 18.1 6.8 7.5 17.5 27.8 (18.2 ) (9.2 ) 20.2 44.2 Non-operating expense — — — — — — (4.4 ) (4.8 ) (4.4 ) (4.8 ) Income (loss) before income taxes $ 14.0 $ 18.1 $ 6.8 $ 7.5 $ 17.5 $ 27.8 $ (22.6 ) $ (14.0 ) $ 15.8 $ 39.4 Supplementary Data Net tons sold (thousands) 38.9 40.1 24.8 26.3 203.6 208.4 — — 267.2 274.7 Depreciation, depletion and amortization $ 6.7 $ 7.4 $ 2.2 $ 2.3 $ 6.4 $ 6.5 $ 0.5 $ 0.5 $ 15.8 $ 16.7 Capital expenditures 5.8 5.4 1.8 1.3 22.1 9.7 — 0.5 29.7 16.9 Nine months ended September 30 Dollars in millions Composite Fibers Advanced Airlaid Specialty Papers Other and Unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 409.6 $ 470.1 $ 183.0 $ 216.2 $ 655.6 $ 679.9 $ — $ — $ 1,248.2 $ 1,366.2 Energy and related sales, net — — — — 3.9 6.9 — — 3.9 6.9 Total revenue 409.6 470.1 183.0 216.2 659.5 686.8 — — 1,252.2 1,373.1 Cost of products sold 329.8 376.7 162.0 189.9 608.4 624.3 7.1 5.2 1,107.3 1,196.1 Gross profit (loss) 79.8 93.4 21.0 26.3 51.1 62.5 (7.1 ) (5.2 ) 144.8 177.0 SG&A 34.4 38.8 5.8 6.8 34.2 39.5 25.7 18.7 100.2 103.8 Gains on dispositions of plant, equipment and timberlands, net — — — — — — (2.9 ) (3.9 ) (2.9 ) (3.9 ) Total operating income (loss) 45.4 54.6 15.2 19.5 16.9 23.0 (29.9 ) (20.0 ) 47.5 77.1 Non-operating expense — — — — — — (13.1 ) (14.0 ) (13.1 ) (14.0 ) Income (loss) before income taxes $ 45.4 $ 54.6 $ 15.2 $ 19.5 $ 16.9 $ 23.0 $ (43.0 ) $ (34.0 ) $ 34.4 $ 63.1 Supplementary Data Net tons sold (thousands) 116.2 119.5 71.4 76.0 593.6 601.3 — — 781.2 796.8 Depreciation, depletion and amortization $ 20.1 $ 22.7 $ 6.5 $ 6.9 $ 19.3 $ 22.6 $ 1.5 $ 1.3 $ 47.4 $ 53.5 Capital expenditures 17.3 16.7 4.6 4.1 51.0 24.5 1.4 1.7 74.3 47.0 The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | 18. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Our 5.375% Notes issued by P. H. Glatfelter Company (the “Parent”) are fully and unconditionally guaranteed, on a joint and several basis, by certain of our 100%-owned domestic subsidiaries, PHG Tea Leaves, Inc., Mollanvick, Inc., Glatfelter Composite Fibers N. A., Inc. (“CFNA”), Glatfelter Advanced Materials N.A., Inc. (“GAMNA”), and Glatfelter Holdings, LLC. The guarantees are subject to certain customary release provisions including i) the designation of such subsidiary as an unrestricted or excluded subsidiary; (ii) in connection with any sale or disposition of the capital stock of the subsidiary guarantor; and (iii) upon our exercise of our legal defeasance option or our covenant defeasance option, all of which are more fully described in the Indenture dated as of October 3, 2012 and the First Supplemental Indenture dated as of October 27, 2015, among us, the Guarantors and US Bank National Association, as Trustee, relating to the 5.375% Notes. The following presents the condensed consolidating statements of income, including comprehensive income for the three months and nine months ended September 30, 2015 and 2014, the condensed consolidating balance sheets as of September 30, 2015 and December 31, 2014 and the condensed consolidating cash flows for the nine months ended September 30, 2015 and 2014. These financial statements reflect the Parent, the guarantor subsidiaries (on a combined basis), the non-guarantor subsidiaries (on a combined basis) and elimination entries necessary to combine such entities on a consolidated basis. The condensed consolidating financial statements set forth below include the addition of CFNA and GAMNA as guarantors effective September 30, 2015 and all prior periods have been restated to retroactively effect this change. In addition, our presentation of the Guarantors’ statement of income for the three months and nine months ended September 30, 2014 has been restated to correctly apply the equity method of accounting to reflect the Guarantors’ equity interests in certain Non Guarantors. Such changes are reflected under the caption “Equity in earnings of subsidiaries” in the accompanying condensed consolidating statements of income. The correction had no impact on any financial information of the Parent Company, the Non Guarantors or on the condensed consolidating balance sheet or the statement of cash flows. Condensed Consolidating Statement of Income for the three months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 222,803 $ 19,005 $ 197,589 $ (19,437 ) $ 419,960 Energy and related sales, net 1,153 — — — 1,153 Total revenues 223,956 19,005 197,589 (19,437 ) 421,113 Costs of products sold 197,906 17,299 165,437 (19,437 ) 361,205 Gross profit 26,050 1,706 32,152 — 59,908 Selling, general and administrative expenses 24,764 (8 ) 15,036 — 39,792 Gains on dispositions of plant, equipment and timberlands, net (4 ) — (119 ) — (123 ) Operating income 1,290 1,714 17,235 — 20,239 Other non-operating income (expense) Interest expense (4,346 ) — (23,201 ) 23,230 (4,317 ) Interest income 181 23,129 11 (23,231 ) 90 Equity in earnings of subsidiaries 14,173 (9,366 ) — (4,808 ) — Other, net (961 ) 23 718 — (220 ) Total other non-operating income (expense) 9,047 13,786 (22,472 ) (4,809 ) (4,447 ) Income (loss) before income taxes 10,337 15,500 (5,237 ) (4,809 ) 15,792 Income tax provision (benefit) (3,167 ) 1,270 4,185 — 2,288 Net income (loss) 13,504 14,230 (9,422 ) (4,809 ) 13,504 Other comprehensive income (loss) (3,002 ) (5,954 ) (7,752 ) 13,706 (3,002 ) Comprehensive income (loss) $ 10,502 $ 8,276 $ (17,174 ) $ 8,897 $ 10,502 Condensed Consolidating Statement of Income for the three months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 236,182 $ 17,735 $ 228,699 $ (17,524 ) $ 465,092 Energy and related sales, net 860 — — — 860 Total revenues 237,042 17,735 228,699 (17,524 ) 465,952 Costs of products sold 197,182 17,019 188,762 (17,524 ) 385,439 Gross profit 39,860 716 39,937 — 80,513 Selling, general and administrative expenses 19,352 589 17,946 — 37,886 Gains on dispositions of plant, equipment and timberlands, net (1,590 ) — — — (1,590 ) Operating income 22,098 127 21,991 — 44,217 Other non-operating income (expense) Interest expense (4,790 ) — (90,098 ) 90,217 (4,671 ) Interest income 152 89,951 145 (90,218 ) 30 Equity in earnings of subsidiaries 14,935 (74,502 ) — 59,566 — Other, net (383 ) 9 202 5 (167 ) Total other non-operating income (expense) 9,914 15,458 (89,751 ) 59,570 (4,808 ) Income (loss) before income taxes 32,012 15,585 (67,760 ) 59,570 39,409 Income tax provision (benefit) 1,640 1,091 6,306 — 9,037 Net income (loss) 30,372 14,494 (74,066 ) 59,570 30,372 Other comprehensive income (loss) (29,577 ) (25,843 ) 16,924 8,919 (29,577 ) Comprehensive income (loss) $ 795 $ (11,349 ) $ (57,142 ) $ 68,489 $ 795 Condensed Consolidating Statement of Income for the nine months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 655,599 $ 61,822 $ 590,466 $ (59,655 ) $ 1,248,232 Energy and related sales, net 3,936 — — — 3,936 Total revenues 659,535 61,822 590,466 (59,655 ) 1,252,168 Costs of products sold 614,060 58,554 494,360 (59,655 ) 1,107,319 Gross profit 45,475 3,268 96,106 — 144,849 Selling, general and administrative expenses 57,607 947 41,647 — 100,201 Gains on dispositions of plant, equipment and timberlands, net (1,526 ) (1,183 ) (179 ) — (2,888 ) Operating income (loss) (10,606 ) 3,504 54,638 — 47,536 Other non-operating income (expense) Interest expense (13,771 ) — (35,965 ) 36,559 (13,177 ) Interest income 513 36,226 52 (36,559 ) 232 Equity in earnings of subsidiaries 48,775 11,879 — (60,654 ) — Other, net (2,423 ) (136 ) 2,367 — (192 ) Total other non-operating income (expense) 33,094 47,969 (33,546 ) (60,654 ) (13,137 ) Income before income taxes 22,488 51,473 21,092 (60,654 ) 34,399 Income tax provision (benefit) (7,789 ) 2,586 9,325 — 4,122 Net income 30,277 48,887 11,767 (60,654 ) 30,277 Other comprehensive income (loss) (21,200 ) (30,607 ) 21,156 9,451 (21,200 ) Comprehensive income $ 9,077 $ 18,280 $ 32,923 $ (51,203 ) $ 9,077 Condensed Consolidating Statement of Income for the nine months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 679,877 $ 56,138 $ 685,350 $ (55,211 ) $ 1,366,154 Energy and related sales, net 6,912 — — — 6,912 Total revenues 686,789 56,138 685,350 (55,211 ) 1,373,066 Costs of products sold 629,984 53,491 567,812 (55,211 ) 1,196,076 Gross profit 56,805 2,647 117,538 — 176,990 Selling, general and administrative expenses 53,699 1,431 48,622 — 103,751 Gains on dispositions of plant, equipment and timberlands, net (2,565 ) (1,316 ) — — (3,881 ) Operating income 5,671 2,532 68,916 — 77,120 Other non-operating income (expense) Interest expense (14,284 ) — (95,643 ) 95,682 (14,245 ) Interest income 468 95,165 193 (95,683 ) 143 Equity in earnings of subsidiaries 56,784 (38,229 ) — (18,555 ) — Other, net (1,603 ) 30 1,673 5 105 Total other non-operating income (expense) 41,365 56,966 (93,777 ) (18,551 ) (13,997 ) Income (loss) before income taxes 47,036 59,498 (24,861 ) (18,551 ) 63,123 Income tax provision (benefit) (2,653 ) 2,719 13,368 — 13,434 Net income (loss) 49,689 56,779 (38,229 ) (18,551 ) 49,689 Other comprehensive income (loss) (23,586 ) (26,392 ) 18,907 7,485 (23,586 ) Comprehensive income (loss) $ 26,103 $ 30,387 $ (19,322 ) $ (11,066 ) $ 26,103 Condensed Consolidating Balance Sheet as of September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Assets Cash and cash equivalents $ 28,626 $ 297 $ 44,742 $ — $ 73,665 Other current assets 232,486 260,054 261,431 (268,192 ) 485,779 Plant, equipment and timberlands, net 283,712 1,005 412,607 — 697,324 Investments in subsidiaries 734,303 504,783 — (1,239,086 ) — Other assets 132,732 — 148,732 (485 ) 280,979 Total assets $ 1,411,859 $ 766,139 $ 867,512 $ (1,507,763 ) $ 1,537,747 Liabilities and Shareholders’ Equity Current liabilities $ 368,220 $ 31,720 $ 163,984 $ (271,574 ) $ 292,350 Long-term debt 250,000 — 131,535 — 381,535 Deferred income taxes 48,226 (505 ) 50,110 3,376 101,207 Other long-term liabilities 99,297 33 17,209 — 116,539 Total liabilities 765,743 31,248 362,838 (268,198 ) 891,631 Shareholders’ equity 646,116 734,891 504,674 (1,239,565 ) 646,116 Total liabilities and shareholders’ equity $ 1,411,859 $ 766,139 $ 867,512 $ (1,507,763 ) $ 1,537,747 Condensed Consolidating Balance Sheet as of December 31, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Assets Cash and cash equivalents $ 42,208 $ 509 $ 57,120 $ — $ 99,837 Other current assets 216,940 439,910 254,911 (436,976 ) 474,785 Plant, equipment and timberlands, net 255,255 996 441,357 — 697,608 Investments in subsidiaries 826,084 401,540 — (1,227,624 ) — Other assets 121,125 — 186,128 (17,979 ) 289,274 Total assets $ 1,461,612 $ 842,955 $ 939,516 $ (1,682,579 ) $ 1,561,504 Liabilities and Shareholders’ Equity Current liabilities 403,662 13,143 307,184 (444,258 ) 279,731 Long-term debt 250,000 — 721,457 (572,579 ) 398,878 Deferred income taxes 46,483 (506 ) 70,328 (12,289 ) 104,016 Other long-term liabilities 112,358 24 11,608 5,780 129,770 Total liabilities 812,503 12,661 1,110,577 (1,023,346 ) 912,395 Shareholders’ equity 649,109 830,294 (171,061 ) (659,233 ) 649,109 Total liabilities and shareholders’ equity $ 1,461,612 $ 842,955 $ 939,516 $ (1,682,579 ) $ 1,561,504 Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net cash provided (used) by Operating activities $ 9,927 $ 152 $ 60,444 $ — $ 70,523 Investing activities Expenditures for purchases of plant, equipment and timberlands (52,331 ) (42 ) (21,907 ) — (74,280 ) Proceeds from disposal plant, equipment and timberlands, net 1,584 1,213 384 — 3,181 Repayments from intercompany loans 1,465 53,855 — (55,320 ) — Advances of intercompany loans — (44,590 ) — 44,590 — Intercompany capital (contributed) returned 10,500 (300 ) — (10,200 ) — Acquisitions, net of cash acquired — — (224 ) — (224 ) Other (1,600 ) — — — (1,600 ) Total investing activities (40,382 ) 10,136 (21,747 ) (20,930 ) (72,923 ) Financing activities Net repayments of indebtedness — — (3,387 ) — (3,387 ) Payments of borrowing costs (1,329 ) — — — (1,329 ) Payment of dividends to shareholders (15,215 ) — — — (15,215 ) Repayments of intercompany loans (9,158 ) — (46,162 ) 55,320 — Borrowings of intercompany loans 44,590 — — (44,590 ) — Intercompany capital received (returned) — (10,500 ) 300 10,200 — Payments related to share-based compensation awards and other (2,015 ) — — — (2,015 ) Total financing activities 16,873 (10,500 ) (49,249 ) 20,930 (21,946 ) Effect of exchange rate on cash — — (1,826 ) — (1,826 ) Net decrease in cash (13,582 ) (212 ) (12,378 ) — (26,172 ) Cash at the beginning of period 42,208 509 57,120 — 99,837 Cash at the end of period $ 28,626 $ 297 $ 44,742 $ — $ 73,665 Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net cash provided (used) by Operating activities $ 712 $ 3,371 $ 17,297 $ — $ 21,380 Investing activities Expenditures for purchases of plant, equipment and timberlands (26,368 ) — (20,668 ) — (47,036 ) Proceeds from disposal plant, equipment and timberlands, net 2,687 1,355 9 — 4,051 Repayments from intercompany loans — 10,409 — (10,409 ) — Advances of intercompany loans — (15,540 ) — 15,540 — Other (600 ) — — — (600 ) Total investing activities (24,281 ) (3,776 ) (20,659 ) 5,131 (43,585 ) Financing activities Net proceeds from indebtedness — — (18,128 ) — (18,128 ) Payment of dividends to shareholders (13,935 ) — — — (13,935 ) Repurchases of common stock (12,180 ) — — — (12,180 ) Borrowings of intercompany loans 15,540 — — (15,540 ) — Repayments of intercompany loans — — (10,409 ) 10,409 — Payments related to share-based compensation awards and other (1,764 ) — — — (1,764 ) Total financing activities (12,339 ) — (28,537 ) (5,131 ) (46,007 ) Effect of exchange rate on cash — — (1,015 ) — (1,015 ) Net decrease in cash (35,908 ) (405 ) (32,914 ) — (69,227 ) Cash at the beginning of period 56,216 495 66,171 — 122,882 Cash at the end of period $ 20,308 $ 90 $ 33,257 $ — $ 53,655 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2014 Annual Report on Form 10-K. |
Accounting Estimates | Accounting Estimates |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers |
Gains on Dispositions of Plan26
Gains on Dispositions of Plant, Equipment and Timberlands, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary for Sale of Timberlands and Other Assets | During the first nine months of 2015 and 2014, we completed sales of assets as summarized in the following table: Dollars in thousands Acres Proceeds Gain 2015 Timberlands 1,398 $ 2,794 $ 2,704 Other n/a 387 184 Total $ 3,181 $ 2,888 2014 Timberlands 2,030 $ 4,041 $ 3,876 Other n/a 10 5 Total $ 4,051 $ 3,881 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Details of Basic and Diluted Earnings Per Share (EPS) | The following table sets forth the details of basic and diluted earnings per share (“EPS”): Three months ended In thousands, except per share 2015 2014 Net income $ 13,504 $ 30,372 Weighted average common shares outstanding used in basic EPS 43,457 43,049 Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs 408 792 Weighted average common shares outstanding and common share equivalents used in diluted EPS 43,865 43,841 Earnings per share Basic $ 0.31 $ 0.71 Diluted 0.31 0.69 Nine months ended In thousands, except per share 2015 2014 Net income $ 30,277 $ 49,689 Weighted average common shares outstanding used in basic EPS 43,363 43,233 Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs 586 878 Weighted average common shares outstanding and common share equivalents used in diluted EPS 43,949 44,111 Earnings per share Basic $ 0.70 $ 1.15 Diluted 0.69 1.13 |
Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature | The following table sets forth potential common shares outstanding for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive: September 30 In thousands 2015 2014 Three months ended 696 282 Nine months ended 696 282 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Losses) | The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2015 and 2014. in thousands Currency Unrealized gain Change in Change in other Total Balance at July 1, 2015 $ (58,857 ) $ 2,621 $ (114,076 ) $ (2,756 ) $ (173,068 ) Other comprehensive income before reclassifications (net of tax) (3,262 ) (1,381 ) — — (4,643 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — (1,442 ) 3,090 (7 ) 1,641 Net current period other comprehensive income (loss) (3,262 ) (2,823 ) 3,090 (7 ) (3,002 ) Balance at September 30, 2015 $ (62,119 ) $ (202 ) $ (110,986 ) $ (2,763 ) $ (176,070 ) Balance at July 1, 2014 $ 15,336 $ 60 $ (84,822 ) $ 60 $ (69,366 ) Other comprehensive income before reclassifications (net of tax) (33,450 ) 1,379 — — (32,071 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — 96 2,363 35 2,494 Net current period other comprehensive income (loss) (33,450 ) 1,475 2,363 35 (29,577 ) Balance at September 30, 2014 $ (18,114 ) $ 1,535 $ (82,459 ) $ 95 $ (98,943 ) in thousands Currency Unrealized gain Change in Change in other Total Balance at January 1, 2015 $ (34,224 ) $ 2,356 $ (120,260 ) $ (2,742 ) $ (154,870 ) Other comprehensive income before reclassifications (net of tax) (27,895 ) 793 — — (27,102 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — (3,351 ) 9,274 (21 ) 5,902 Net current period other comprehensive income (loss) (27,895 ) $ (2,558 ) 9,274 (21 ) (21,200 ) Balance at September 30, 2015 $ (62,119 ) $ (202 ) $ (110,986 ) $ (2,763 ) $ (176,070 ) Balance at January 1, 2014 $ 15,141 $ (941 ) $ (89,547 ) $ (10 ) $ (75,357 ) Other comprehensive income before reclassifications (net of tax) (33,255 ) 1,594 — — (31,661 ) Amounts reclassified from accumulated other comprehensive income (net of tax) — 882 7,088 105 8,075 Net current period other comprehensive income (loss) (33,255 ) 2,476 7,088 105 (23,586 ) Balance at September 30, 2014 $ (18,114 ) $ 1,535 $ (82,459 ) $ 95 $ (98,943 ) |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income were as follows: Three months ended Nine months ended In thousands 2015 2014 2015 2014 Description Line Item in Statements of Income Cash flow hedges (Note 15) (Gains) losses on cash flow hedges $ (1,972 ) $ 137 $ (4,595 ) $ 1,227 Costs of products sold Tax (benefit) expense 530 (41 ) 1,244 (345 ) Income tax provision Net of tax (1,442 ) 96 (3,351 ) 882 Retirement plan obligations (Note 9) Amortization of deferred benefit pension plan items Prior service costs 571 621 1,713 1,864 Costs of products sold 189 206 568 618 Selling, general and administrative Actuarial losses 3,144 2,215 9,432 6,644 Costs of products sold 1,082 762 3,247 2,287 Selling, general and administrative 4,986 3,804 14,960 11,413 Tax benefit (1,896 ) (1,441 ) (5,686 ) (4,325 ) Income tax provision Net of tax 3,090 2,363 9,274 7,088 Amortization of deferred benefit other plan items Prior service costs (58 ) (59 ) (173 ) (178 ) Costs of products sold (12 ) (13 ) (37 ) (38 ) Selling, general and administrative Actuarial losses 48 106 142 319 Costs of products sold 10 23 31 68 Selling, general and administrative (12 ) 57 (37 ) 171 Tax benefit 5 (22 ) 16 (66 ) Income tax provision Net of tax (7 ) 35 (21 ) 105 Total reclassifications, net of tax $ 1,641 $ 2,494 $ 5,902 $ 8,075 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction | The following table summarizes, by major jurisdiction, tax years that remain subject to examination: Open Tax Years Jurisdiction Examinations not Examination United States Federal 2013 - 2014 N/A State 2010 - 2014 N/A Canada (1) 2010 - 2014 N/A Germany (1) 2012 - 2014 2007 - 2011 France 2013 - 2014 2011 - 2012 United Kingdom 2013 - 2014 N/A Philippines 2012, 2014 2013 (1) – includes provincial or similar local jurisdictions, as applicable |
Summary of Information Related to Interest and Penalties on Uncertain Tax Positions | The following table summarizes information related to interest and penalties on uncertain tax positions: Nine months ended In millions 2015 2014 Interest expense $ — $ 0.1 Penalties — — September 30 December 31 Accrued interest payable $ 0.6 $ 0.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member] | |
Summary of Stock Option Activity | The following table summarizes RSU and PSA activity during periods indicated: Units 2015 2014 Balance at January 1, 888,942 1,001,814 Granted 160,514 173,206 Forfeited (87,567 ) (45,355 ) Shares delivered (286,857 ) (239,394 ) Balance at September 30, 675,032 890,271 |
Compensation Expense for Stock Option Activity | The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated: September 30 In thousands 2015 2014 Three months ended $ 395 $ 854 Nine months ended 1,214 1,874 |
Stock Only Stock Appreciation Rights (SOSARs) [Member] | |
Summary of Stock Option Activity | The following table sets forth information related to outstanding SOSARS. 2015 2014 SOSARS Shares Wtd Avg Shares Wtd Avg Outstanding at January 1, 1,864,707 $ 16.20 1,977,133 $ 13.91 Granted 423,590 24.62 281,881 29.22 Exercised (70,347 ) 14.12 (26,245 ) 15.67 Canceled / forfeited (17,559 ) 25.24 (29,842 ) 19.36 Outstanding at September 30, 2,200,391 $ 17.82 2,202,927 $ 15.77 SOSAR Grants Weighted average grant date fair value per share $ 7.46 $ 9.81 Aggregate grant date fair value (in thousands) $ 3,134 $ 2,764 Black-Scholes assumptions Dividend yield 1.94 % 1.48 % Risk free rate of return 1.64 % 1.74 % Volatility 36.38 % 37.59 % Expected life 6 yrs 6 yrs |
Compensation Expense for Stock Option Activity | The following table sets forth SOSAR compensation expense for the periods indicated: September 30 In thousands 2015 2014 Three months ended $ 671 $ 577 Nine months ended 1,940 1,585 |
Retirement Plans and Other Po31
Retirement Plans and Other Post-Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans | The following tables provide information with respect to the net periodic costs of our pension and post retirement medical benefit plans. Three months ended September 30 In thousands 2015 2014 Pension Benefits Service cost $ 2,850 $ 2,602 Interest cost 5,868 6,216 Expected return on plan assets (11,498 ) (10,969 ) Amortization of prior service cost 760 827 Amortization of unrecognized loss 4,226 2,977 Net periodic benefit cost $ 2,206 $ 1,653 Other Benefits Service cost $ 358 $ 614 Interest cost 499 597 Amortization of prior service cost (70 ) (72 ) Amortization of unrecognized loss 58 129 Net periodic benefit cost $ 845 $ 1,268 Nine months ended September 30 In thousands 2015 2014 Pension Benefits Service cost $ 8,546 $ 7,810 Interest cost 17,606 18,696 Expected return on plan assets (34,495 ) (32,907 ) Amortization of prior service cost 2,281 2,482 Amortization of unrecognized loss 12,679 8,931 Net periodic benefit cost $ 6,617 $ 5,012 Other Benefits Service cost $ 1,074 $ 1,844 Interest cost 1,498 1,793 Amortization of prior service cost (210 ) (216 ) Amortization of unrecognized loss 173 387 Net periodic benefit cost $ 2,535 $ 3,808 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net of Reserves | Inventories, net of reserves, were as follows: September 30 December 31 In thousands 2015 2014 Raw materials $ 59,985 $ 61,266 In-process and finished 117,980 117,580 Supplies 70,121 69,859 Total $ 248,086 $ 248,705 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is summarized as follows: September 30 December 31 In thousands 2015 2014 Revolving credit facility, due Mar. 2020 $ 83,464 $ — Revolving credit facility, due Nov. 2016 — 90,555 5.375% Notes, due Oct. 2020 250,000 250,000 2.40% Term Loan, due Jun. 2022 10,803 12,155 2.05% Term Loan, due Mar. 2023 44,848 51,902 Total long-term debt 389,115 404,612 Less current portion (7,580 ) (5,734 ) Long-term debt, net of current portion $ 381,535 $ 398,878 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligation | Following is a summary of activity recorded during the first nine months of 2015 and 2014: In thousands 2015 2014 Balance at January 1, $ 4,114 $ 5,032 Accretion 59 115 Payments (2,384 ) (767 ) Downward revision (1,000 ) — Gain (359 ) (128 ) Balance at September 30, $ 430 $ 4,252 |
Schedule of Consolidated Balance Sheets where Asset Retirement Obligations are Recorded | The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded: September 30 December 31 In thousands 2015 2014 Other current liabilities $ 430 $ 2,855 Other long-term liabilities — 1,259 Total $ 430 $ 4,114 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Long-Term Debt | The following table sets forth carrying value and fair value of long-term debt: September 30, 2015 December 31, 2014 In thousands Carrying Fair Carrying Fair Variable rate debt $ 83,464 $ 83,464 $ 90,555 $ 90,555 Fixed-rate bonds 250,000 253,908 250,000 255,470 2.40% Term loan 10,803 10,729 12,155 12,626 2.05% Term loan 44,848 43,611 51,902 53,106 Total $ 389,115 $ 391,712 $ 404,612 $ 411,757 |
Financial Derivatives and Hed36
Financial Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values of Derivative Instruments | The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded: In thousands September 30 December 31 September 30 December 31 Balance sheet caption Prepaid Expenses and Other Current Assets Other Current Liabilities Designated as hedging: Forward foreign currency exchange contracts $ 693 $ 3,106 $ 1,676 $ 394 Not designated as hedging: Forward foreign currency exchange contracts $ 91.0 $ 70 $ 0 $ 161 |
Income or (Loss) from Derivative Instruments Recognized in Results of Operations | The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded: Three months ended Nine months ended In thousands 2015 2014 2015 2014 Designated as hedging: Forward foreign currency exchange contracts: Effective portion – cost of products sold $ 1,972 $ (137 ) $ 4,595 $ (1,227 ) Ineffective portion – other – net (184 ) 81 104 181 Not designated as hedging : Forward foreign currency exchange contracts: Other – net $ 621 $ 595 $ 1,028 $ 1,792 |
Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income | A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows: In thousands 2015 2014 Balance at January 1, $ 3,282 $ (1,296 ) Deferred gains on cash flow hedges 1,100 2,223 Reclassified to earnings (4,595 ) 1,227 Balance at September 30, $ (213 ) $ 2,154 |
Designated as Hedging [Member] | |
Outstanding Derivatives Used to Hedge Foreign Exchange Risks | We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments: In thousands September 30 December 31 Derivative Sell/Buy - sell notional Euro / British Pound 9,189 4,592 Sell/Buy - buy notional Euro / Philippine Peso 661,453 523,313 British Pound / Philippine Peso 471,607 260,535 Euro / U.S. Dollar 47,751 32,527 U.S. Dollar / Canadian Dollar 19,205 10,036 |
Not Designated as Hedging [Member] | |
Outstanding Derivatives Used to Hedge Foreign Exchange Risks | The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities: In thousands September 30 December 31 Derivative Sell/Buy - sell notional U.S. Dollar / Euro — 4,000 U.S. Dollar / British Pound 7,000 9,000 Euro / British Pound — 2,000 British Pound / Euro 2,000 — Sell/Buy - buy notional Euro / U.S. Dollar 7,000 — British Pound / Euro 15,500 3,000 |
Commitments, Contingencies an37
Commitments, Contingencies and Legal Proceedings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reserves | Our reserve including ongoing monitoring obligations in OU1, our share of remediation of the downstream portions of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination is set forth below: In thousands 2015 2014 Balance at January 1, $ 16,223 $ 16,276 Payments (5,617 ) (39 ) Accruals 10,000 — Balance at September 30, $ 20,606 $ 16,237 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Financial and Other Information by Business Unit | The following tables set forth financial and other information by business unit for the period indicated: Three months ended September 30 Dollars in millions Composite Fibers Advanced Airlaid Specialty Papers Other and Unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 133.9 $ 154.5 $ 63.2 $ 74.4 $ 222.8 $ 236.2 $ — $ — $ 420.0 $ 465.1 Energy and related sales, net — — — — 1.2 0.9 — — 1.2 0.9 Total revenue 133.9 154.5 63.2 74.4 224.0 237.1 — — 421.1 466.0 Cost of products sold 108.4 123.7 54.6 64.7 196.1 195.2 2.1 1.8 361.2 385.4 Gross profit (loss) 25.5 30.8 8.6 9.7 27.9 41.9 (2.1 ) (1.8 ) 59.9 80.5 SG&A 11.5 12.6 1.8 2.2 10.4 14.1 16.2 9.0 39.8 37.9 Gains on dispositions of plant, equipment and timberlands, net — — — — — — (0.1 ) (1.6 ) (0.1 ) (1.6 ) Total operating income (loss) 14.0 18.1 6.8 7.5 17.5 27.8 (18.2 ) (9.2 ) 20.2 44.2 Non-operating expense — — — — — — (4.4 ) (4.8 ) (4.4 ) (4.8 ) Income (loss) before income taxes $ 14.0 $ 18.1 $ 6.8 $ 7.5 $ 17.5 $ 27.8 $ (22.6 ) $ (14.0 ) $ 15.8 $ 39.4 Supplementary Data Net tons sold (thousands) 38.9 40.1 24.8 26.3 203.6 208.4 — — 267.2 274.7 Depreciation, depletion and amortization $ 6.7 $ 7.4 $ 2.2 $ 2.3 $ 6.4 $ 6.5 $ 0.5 $ 0.5 $ 15.8 $ 16.7 Capital expenditures 5.8 5.4 1.8 1.3 22.1 9.7 — 0.5 29.7 16.9 Nine months ended September 30 Dollars in millions Composite Fibers Advanced Airlaid Specialty Papers Other and Unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 409.6 $ 470.1 $ 183.0 $ 216.2 $ 655.6 $ 679.9 $ — $ — $ 1,248.2 $ 1,366.2 Energy and related sales, net — — — — 3.9 6.9 — — 3.9 6.9 Total revenue 409.6 470.1 183.0 216.2 659.5 686.8 — — 1,252.2 1,373.1 Cost of products sold 329.8 376.7 162.0 189.9 608.4 624.3 7.1 5.2 1,107.3 1,196.1 Gross profit (loss) 79.8 93.4 21.0 26.3 51.1 62.5 (7.1 ) (5.2 ) 144.8 177.0 SG&A 34.4 38.8 5.8 6.8 34.2 39.5 25.7 18.7 100.2 103.8 Gains on dispositions of plant, equipment and timberlands, net — — — — — — (2.9 ) (3.9 ) (2.9 ) (3.9 ) Total operating income (loss) 45.4 54.6 15.2 19.5 16.9 23.0 (29.9 ) (20.0 ) 47.5 77.1 Non-operating expense — — — — — — (13.1 ) (14.0 ) (13.1 ) (14.0 ) Income (loss) before income taxes $ 45.4 $ 54.6 $ 15.2 $ 19.5 $ 16.9 $ 23.0 $ (43.0 ) $ (34.0 ) $ 34.4 $ 63.1 Supplementary Data Net tons sold (thousands) 116.2 119.5 71.4 76.0 593.6 601.3 — — 781.2 796.8 Depreciation, depletion and amortization $ 20.1 $ 22.7 $ 6.5 $ 6.9 $ 19.3 $ 22.6 $ 1.5 $ 1.3 $ 47.4 $ 53.5 Capital expenditures 17.3 16.7 4.6 4.1 51.0 24.5 1.4 1.7 74.3 47.0 |
Condensed Consolidating Finan39
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Income | Condensed Consolidating Statement of Income for the three months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 222,803 $ 19,005 $ 197,589 $ (19,437 ) $ 419,960 Energy and related sales, net 1,153 — — — 1,153 Total revenues 223,956 19,005 197,589 (19,437 ) 421,113 Costs of products sold 197,906 17,299 165,437 (19,437 ) 361,205 Gross profit 26,050 1,706 32,152 — 59,908 Selling, general and administrative expenses 24,764 (8 ) 15,036 — 39,792 Gains on dispositions of plant, equipment and timberlands, net (4 ) — (119 ) — (123 ) Operating income 1,290 1,714 17,235 — 20,239 Other non-operating income (expense) Interest expense (4,346 ) — (23,201 ) 23,230 (4,317 ) Interest income 181 23,129 11 (23,231 ) 90 Equity in earnings of subsidiaries 14,173 (9,366 ) — (4,808 ) — Other, net (961 ) 23 718 — (220 ) Total other non-operating income (expense) 9,047 13,786 (22,472 ) (4,809 ) (4,447 ) Income (loss) before income taxes 10,337 15,500 (5,237 ) (4,809 ) 15,792 Income tax provision (benefit) (3,167 ) 1,270 4,185 — 2,288 Net income (loss) 13,504 14,230 (9,422 ) (4,809 ) 13,504 Other comprehensive income (loss) (3,002 ) (5,954 ) (7,752 ) 13,706 (3,002 ) Comprehensive income (loss) $ 10,502 $ 8,276 $ (17,174 ) $ 8,897 $ 10,502 Condensed Consolidating Statement of Income for the three months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 236,182 $ 17,735 $ 228,699 $ (17,524 ) $ 465,092 Energy and related sales, net 860 — — — 860 Total revenues 237,042 17,735 228,699 (17,524 ) 465,952 Costs of products sold 197,182 17,019 188,762 (17,524 ) 385,439 Gross profit 39,860 716 39,937 — 80,513 Selling, general and administrative expenses 19,352 589 17,946 — 37,886 Gains on dispositions of plant, equipment and timberlands, net (1,590 ) — — — (1,590 ) Operating income 22,098 127 21,991 — 44,217 Other non-operating income (expense) Interest expense (4,790 ) — (90,098 ) 90,217 (4,671 ) Interest income 152 89,951 145 (90,218 ) 30 Equity in earnings of subsidiaries 14,935 (74,502 ) — 59,566 — Other, net (383 ) 9 202 5 (167 ) Total other non-operating income (expense) 9,914 15,458 (89,751 ) 59,570 (4,808 ) Income (loss) before income taxes 32,012 15,585 (67,760 ) 59,570 39,409 Income tax provision (benefit) 1,640 1,091 6,306 — 9,037 Net income (loss) 30,372 14,494 (74,066 ) 59,570 30,372 Other comprehensive income (loss) (29,577 ) (25,843 ) 16,924 8,919 (29,577 ) Comprehensive income (loss) $ 795 $ (11,349 ) $ (57,142 ) $ 68,489 $ 795 Condensed Consolidating Statement of Income for the nine months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 655,599 $ 61,822 $ 590,466 $ (59,655 ) $ 1,248,232 Energy and related sales, net 3,936 — — — 3,936 Total revenues 659,535 61,822 590,466 (59,655 ) 1,252,168 Costs of products sold 614,060 58,554 494,360 (59,655 ) 1,107,319 Gross profit 45,475 3,268 96,106 — 144,849 Selling, general and administrative expenses 57,607 947 41,647 — 100,201 Gains on dispositions of plant, equipment and timberlands, net (1,526 ) (1,183 ) (179 ) — (2,888 ) Operating income (loss) (10,606 ) 3,504 54,638 — 47,536 Other non-operating income (expense) Interest expense (13,771 ) — (35,965 ) 36,559 (13,177 ) Interest income 513 36,226 52 (36,559 ) 232 Equity in earnings of subsidiaries 48,775 11,879 — (60,654 ) — Other, net (2,423 ) (136 ) 2,367 — (192 ) Total other non-operating income (expense) 33,094 47,969 (33,546 ) (60,654 ) (13,137 ) Income before income taxes 22,488 51,473 21,092 (60,654 ) 34,399 Income tax provision (benefit) (7,789 ) 2,586 9,325 — 4,122 Net income 30,277 48,887 11,767 (60,654 ) 30,277 Other comprehensive income (loss) (21,200 ) (30,607 ) 21,156 9,451 (21,200 ) Comprehensive income $ 9,077 $ 18,280 $ 32,923 $ (51,203 ) $ 9,077 Condensed Consolidating Statement of Income for the nine months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net sales $ 679,877 $ 56,138 $ 685,350 $ (55,211 ) $ 1,366,154 Energy and related sales, net 6,912 — — — 6,912 Total revenues 686,789 56,138 685,350 (55,211 ) 1,373,066 Costs of products sold 629,984 53,491 567,812 (55,211 ) 1,196,076 Gross profit 56,805 2,647 117,538 — 176,990 Selling, general and administrative expenses 53,699 1,431 48,622 — 103,751 Gains on dispositions of plant, equipment and timberlands, net (2,565 ) (1,316 ) — — (3,881 ) Operating income 5,671 2,532 68,916 — 77,120 Other non-operating income (expense) Interest expense (14,284 ) — (95,643 ) 95,682 (14,245 ) Interest income 468 95,165 193 (95,683 ) 143 Equity in earnings of subsidiaries 56,784 (38,229 ) — (18,555 ) — Other, net (1,603 ) 30 1,673 5 105 Total other non-operating income (expense) 41,365 56,966 (93,777 ) (18,551 ) (13,997 ) Income (loss) before income taxes 47,036 59,498 (24,861 ) (18,551 ) 63,123 Income tax provision (benefit) (2,653 ) 2,719 13,368 — 13,434 Net income (loss) 49,689 56,779 (38,229 ) (18,551 ) 49,689 Other comprehensive income (loss) (23,586 ) (26,392 ) 18,907 7,485 (23,586 ) Comprehensive income (loss) $ 26,103 $ 30,387 $ (19,322 ) $ (11,066 ) $ 26,103 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet as of September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Assets Cash and cash equivalents $ 28,626 $ 297 $ 44,742 $ — $ 73,665 Other current assets 232,486 260,054 261,431 (268,192 ) 485,779 Plant, equipment and timberlands, net 283,712 1,005 412,607 — 697,324 Investments in subsidiaries 734,303 504,783 — (1,239,086 ) — Other assets 132,732 — 148,732 (485 ) 280,979 Total assets $ 1,411,859 $ 766,139 $ 867,512 $ (1,507,763 ) $ 1,537,747 Liabilities and Shareholders’ Equity Current liabilities $ 368,220 $ 31,720 $ 163,984 $ (271,574 ) $ 292,350 Long-term debt 250,000 — 131,535 — 381,535 Deferred income taxes 48,226 (505 ) 50,110 3,376 101,207 Other long-term liabilities 99,297 33 17,209 — 116,539 Total liabilities 765,743 31,248 362,838 (268,198 ) 891,631 Shareholders’ equity 646,116 734,891 504,674 (1,239,565 ) 646,116 Total liabilities and shareholders’ equity $ 1,411,859 $ 766,139 $ 867,512 $ (1,507,763 ) $ 1,537,747 Condensed Consolidating Balance Sheet as of December 31, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Assets Cash and cash equivalents $ 42,208 $ 509 $ 57,120 $ — $ 99,837 Other current assets 216,940 439,910 254,911 (436,976 ) 474,785 Plant, equipment and timberlands, net 255,255 996 441,357 — 697,608 Investments in subsidiaries 826,084 401,540 — (1,227,624 ) — Other assets 121,125 — 186,128 (17,979 ) 289,274 Total assets $ 1,461,612 $ 842,955 $ 939,516 $ (1,682,579 ) $ 1,561,504 Liabilities and Shareholders’ Equity Current liabilities 403,662 13,143 307,184 (444,258 ) 279,731 Long-term debt 250,000 — 721,457 (572,579 ) 398,878 Deferred income taxes 46,483 (506 ) 70,328 (12,289 ) 104,016 Other long-term liabilities 112,358 24 11,608 5,780 129,770 Total liabilities 812,503 12,661 1,110,577 (1,023,346 ) 912,395 Shareholders’ equity 649,109 830,294 (171,061 ) (659,233 ) 649,109 Total liabilities and shareholders’ equity $ 1,461,612 $ 842,955 $ 939,516 $ (1,682,579 ) $ 1,561,504 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2015 In thousands Parent Guarantors Non Adjustments/ Consolidated Net cash provided (used) by Operating activities $ 9,927 $ 152 $ 60,444 $ — $ 70,523 Investing activities Expenditures for purchases of plant, equipment and timberlands (52,331 ) (42 ) (21,907 ) — (74,280 ) Proceeds from disposal plant, equipment and timberlands, net 1,584 1,213 384 — 3,181 Repayments from intercompany loans 1,465 53,855 — (55,320 ) — Advances of intercompany loans — (44,590 ) — 44,590 — Intercompany capital (contributed) returned 10,500 (300 ) — (10,200 ) — Acquisitions, net of cash acquired — — (224 ) — (224 ) Other (1,600 ) — — — (1,600 ) Total investing activities (40,382 ) 10,136 (21,747 ) (20,930 ) (72,923 ) Financing activities Net repayments of indebtedness — — (3,387 ) — (3,387 ) Payments of borrowing costs (1,329 ) — — — (1,329 ) Payment of dividends to shareholders (15,215 ) — — — (15,215 ) Repayments of intercompany loans (9,158 ) — (46,162 ) 55,320 — Borrowings of intercompany loans 44,590 — — (44,590 ) — Intercompany capital received (returned) — (10,500 ) 300 10,200 — Payments related to share-based compensation awards and other (2,015 ) — — — (2,015 ) Total financing activities 16,873 (10,500 ) (49,249 ) 20,930 (21,946 ) Effect of exchange rate on cash — — (1,826 ) — (1,826 ) Net decrease in cash (13,582 ) (212 ) (12,378 ) — (26,172 ) Cash at the beginning of period 42,208 509 57,120 — 99,837 Cash at the end of period $ 28,626 $ 297 $ 44,742 $ — $ 73,665 Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2014 In thousands Parent Guarantors Non Adjustments/ Consolidated Net cash provided (used) by Operating activities $ 712 $ 3,371 $ 17,297 $ — $ 21,380 Investing activities Expenditures for purchases of plant, equipment and timberlands (26,368 ) — (20,668 ) — (47,036 ) Proceeds from disposal plant, equipment and timberlands, net 2,687 1,355 9 — 4,051 Repayments from intercompany loans — 10,409 — (10,409 ) — Advances of intercompany loans — (15,540 ) — 15,540 — Other (600 ) — — — (600 ) Total investing activities (24,281 ) (3,776 ) (20,659 ) 5,131 (43,585 ) Financing activities Net proceeds from indebtedness — — (18,128 ) — (18,128 ) Payment of dividends to shareholders (13,935 ) — — — (13,935 ) Repurchases of common stock (12,180 ) — — — (12,180 ) Borrowings of intercompany loans 15,540 — — (15,540 ) — Repayments of intercompany loans — — (10,409 ) 10,409 — Payments related to share-based compensation awards and other (1,764 ) — — — (1,764 ) Total financing activities (12,339 ) — (28,537 ) (5,131 ) (46,007 ) Effect of exchange rate on cash — — (1,015 ) — (1,015 ) Net decrease in cash (35,908 ) (405 ) (32,914 ) — (69,227 ) Cash at the beginning of period 56,216 495 66,171 — 122,882 Cash at the end of period $ 20,308 $ 90 $ 33,257 $ — $ 53,655 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||||
Revenue | $ 421,113 | $ 465,952 | $ 1,252,168 | $ 1,373,066 | |
Spezialpapierfabrik Oberschmitten GmbH [Member] | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | Oct. 1, 2014 | ||||
Payment made for acquisition | $ 8,200 | ||||
Revenue | $ 33,000 |
Gains on Dispositions of Plan41
Gains on Dispositions of Plant, Equipment and Timberlands, Net - Summary for Sale of Timberlands and Other Assets (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)a | Sep. 30, 2014USD ($)a | |
Property, Plant and Equipment [Line Items] | ||||
Proceeds | $ 3,181 | $ 4,051 | ||
Gain | $ 123 | $ 1,590 | $ 2,888 | $ 3,881 |
Timberlands [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Acres | a | 1,398 | 2,030 | ||
Proceeds | $ 2,794 | $ 4,041 | ||
Gain | 2,704 | 3,876 | ||
Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds | 387 | 10 | ||
Gain | $ 184 | $ 5 |
Gains on Dispositions of Plan42
Gains on Dispositions of Plant, Equipment and Timberlands, Net - Additional Information (Detail) $ in Thousands | Oct. 09, 2015USD ($)a | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of timberlands | $ 3,181 | $ 4,051 | ||||
After-tax gain on timberlands | $ 123 | $ 1,590 | $ 2,888 | $ 3,881 | ||
Timber Properties [Member] | Scenario, Forecast [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
After-tax gain on timberlands | $ 9,100 | |||||
Timber Properties [Member] | Subsequent Event [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Acres of timberlands | a | 9,803 | |||||
Proceeds from sale of timberlands | $ 17,000 |
Earnings Per Share - Details of
Earnings Per Share - Details of Basic and Diluted Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 13,504 | $ 30,372 | $ 30,277 | $ 49,689 |
Weighted average common shares outstanding used in basic EPS | 43,457 | 43,049 | 43,363 | 43,233 |
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs | 408 | 792 | 586 | 878 |
Weighted average common shares outstanding and common share equivalents used in diluted EPS | 43,865 | 43,841 | 43,949 | 44,111 |
Earnings per share | ||||
Basic | $ 0.31 | $ 0.71 | $ 0.70 | $ 1.15 |
Diluted | $ 0.31 | $ 0.69 | $ 0.69 | $ 1.13 |
Earnings Per Share - Number of
Earnings Per Share - Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Potential common shares | 696 | 282 | 696 | 282 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (173,068) | $ (69,366) | $ (154,870) | $ (75,357) |
Other comprehensive income before reclassifications (net of tax) | (4,643) | (32,071) | (27,102) | (31,661) |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 1,641 | 2,494 | 5,902 | 8,075 |
Other comprehensive loss | (3,002) | (29,577) | (21,200) | (23,586) |
Ending Balance | (176,070) | (98,943) | (176,070) | (98,943) |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (58,857) | 15,336 | (34,224) | 15,141 |
Other comprehensive income before reclassifications (net of tax) | (3,262) | (33,450) | (27,895) | (33,255) |
Other comprehensive loss | (3,262) | (33,450) | (27,895) | (33,255) |
Ending Balance | (62,119) | (18,114) | (62,119) | (18,114) |
Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 2,621 | 60 | 2,356 | (941) |
Other comprehensive income before reclassifications (net of tax) | (1,381) | 1,379 | 793 | 1,594 |
Amounts reclassified from accumulated other comprehensive income (net of tax) | (1,442) | 96 | (3,351) | 882 |
Other comprehensive loss | (2,823) | 1,475 | (2,558) | 2,476 |
Ending Balance | (202) | 1,535 | (202) | 1,535 |
Change in Pensions [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (114,076) | (84,822) | (120,260) | (89,547) |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 3,090 | 2,363 | 9,274 | 7,088 |
Other comprehensive loss | 3,090 | 2,363 | 9,274 | 7,088 |
Ending Balance | (110,986) | (82,459) | (110,986) | (82,459) |
Change in Other Postretirement Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,756) | 60 | (2,742) | (10) |
Amounts reclassified from accumulated other comprehensive income (net of tax) | (7) | 35 | (21) | 105 |
Other comprehensive loss | (7) | 35 | (21) | 105 |
Ending Balance | $ (2,763) | $ 95 | $ (2,763) | $ 95 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | $ (361,205) | $ (385,439) | $ (1,107,319) | $ (1,196,076) |
Selling, general and administrative | (39,792) | (37,886) | (100,201) | (103,751) |
Income tax provision | 2,288 | 9,037 | 4,122 | 13,434 |
Net income | 13,504 | 30,372 | 30,277 | 49,689 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net income | 1,641 | 2,494 | 5,902 | 8,075 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs and Expenses | 4,986 | 3,804 | 14,960 | 11,413 |
Income tax provision | (1,896) | (1,441) | (5,686) | (4,325) |
Net income | 3,090 | 2,363 | 9,274 | 7,088 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Prior Service Costs [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | 571 | 621 | 1,713 | 1,864 |
Selling, general and administrative | 189 | 206 | 568 | 618 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Actuarial Losses [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | 3,144 | 2,215 | 9,432 | 6,644 |
Selling, general and administrative | 1,082 | 762 | 3,247 | 2,287 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs and Expenses | (12) | 57 | (37) | 171 |
Income tax provision | 5 | (22) | 16 | (66) |
Net income | (7) | 35 | (21) | 105 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Prior Service Costs [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | (58) | (59) | (173) | (178) |
Selling, general and administrative | (12) | (13) | (37) | (38) |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Actuarial Losses [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | 48 | 106 | 142 | 319 |
Selling, general and administrative | 10 | 23 | 31 | 68 |
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | (Gains) Losses on Cash Flow Hedges [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs of products sold | (1,972) | 137 | (4,595) | 1,227 |
Income tax provision | 530 | (41) | 1,244 | (345) |
Net income | $ (1,442) | $ 96 | $ (3,351) | $ 882 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Gross unrecognized tax benefits | $ 12 | $ 14.9 |
Unrecognized tax benefits that would impact effective tax rate | 12 | |
Gross unrecognized tax benefits net decrease | (2.9) | |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Gross unrecognized tax benefits balance may decrease within the next twelve months | 0 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Gross unrecognized tax benefits balance may decrease within the next twelve months | $ 1.7 |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
United States - Federal [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2013 - 2014 |
Examination in progress | N/A |
United States - State [Member] | United States [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2010 - 2014 |
Examination in progress | N/A |
Foreign Tax Authority [Member] | Canada [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2010 - 2014 |
Examination in progress | N/A |
Foreign Tax Authority [Member] | Germany [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2012 - 2014 |
Examination in progress | 2007 - 2011 |
Foreign Tax Authority [Member] | France [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2013 - 2014 |
Examination in progress | 2011 - 2012 |
Foreign Tax Authority [Member] | United Kingdom [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2013 - 2014 |
Examination in progress | N/A |
Foreign Tax Authority [Member] | Philippines [Member] | |
Income Tax Examination [Line Items] | |
Examinations not yet initiated | 2012, 2014 |
Examination in progress | 2,013 |
Income Taxes - Summary of Infor
Income Taxes - Summary of Information Related to Interest and Penalties on Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Interest expense | $ 0.1 | ||
Penalties | $ 0 | $ 0 | |
Accrued interest payable | $ 0.6 | $ 0.6 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock Units (RSU) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The vesting graded scale | The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. | |
Performance Share Awards (PSAs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative performance targets | 3 years | |
Grants under performance share awards | 105,017 | 95,691 |
Stock Only Stock Appreciation Rights (SOSARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of stock | 3 years | |
Vesting term | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSU and PSA Activity (Detail) - Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member] - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance | 888,942 | 1,001,814 |
Granted | 160,514 | 173,206 |
Forfeited | (87,567) | (45,355) |
Shares delivered | (286,857) | (239,394) |
Ending Balance | 675,032 | 890,271 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense for Periods (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 395 | $ 854 | $ 1,214 | $ 1,874 |
Stock Only Stock Appreciation Rights (SOSARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 671 | $ 577 | $ 1,940 | $ 1,585 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Information Related to Outstanding SOSARS (Detail) - Stock Only Stock Appreciation Rights (SOSARs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Outstanding | 1,864,707 | 1,977,133 |
Granted | 423,590 | 281,881 |
Exercised | (70,347) | (26,245) |
Canceled / forfeited | (17,559) | (29,842) |
Ending Balance, Outstanding | 2,200,391 | 2,202,927 |
Beginning Balance, Weighted Average Exercise Price, Outstanding | $ 16.20 | $ 13.91 |
Weighted Average Exercise Price, Granted | 24.62 | 29.22 |
Weighted Average Exercise Price, Exercised | 14.12 | 15.67 |
Weighted Average Exercise Price, Canceled / forfeited | 25.24 | 19.36 |
Ending Balance, Weighted Average Exercise Price, Outstanding | 17.82 | 15.77 |
Weighted average grant date fair value per share | $ 7.46 | $ 9.81 |
Aggregate grant date fair value | $ 3,134 | $ 2,764 |
Black-Scholes assumptions | ||
Dividend yield | 1.94% | 1.48% |
Risk free rate of return | 1.64% | 1.74% |
Volatility | 36.38% | 37.59% |
Expected life | 6 years | 6 years |
Retirement Plans and Other Po54
Retirement Plans and Other Post-Retirement Benefits - Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,850 | $ 2,602 | $ 8,546 | $ 7,810 |
Interest cost | 5,868 | 6,216 | 17,606 | 18,696 |
Expected return on plan assets | (11,498) | (10,969) | (34,495) | (32,907) |
Amortization of prior service cost | 760 | 827 | 2,281 | 2,482 |
Amortization of unrecognized loss | 4,226 | 2,977 | 12,679 | 8,931 |
Net periodic benefit cost | 2,206 | 1,653 | 6,617 | 5,012 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 358 | 614 | 1,074 | 1,844 |
Interest cost | 499 | 597 | 1,498 | 1,793 |
Amortization of prior service cost | (70) | (72) | (210) | (216) |
Amortization of unrecognized loss | 58 | 129 | 173 | 387 |
Net periodic benefit cost | $ 845 | $ 1,268 | $ 2,535 | $ 3,808 |
Asset Impairment Charge - Addit
Asset Impairment Charge - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Non-cash asset impairment charge | $ 1,200 | $ 3,262 | ||
Dresden Papier GmbH [Member] | Trade Name [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Non-cash asset impairment charge | $ 1,200 | $ 3,300 |
Inventories - Inventories, Net
Inventories - Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 59,985 | $ 61,266 |
In-process and finished | 117,980 | 117,580 |
Supplies | 70,121 | 69,859 |
Total | $ 248,086 | $ 248,705 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 389,115 | $ 404,612 |
Less current portion | (7,580) | (5,734) |
Long-term debt, net of current portion | 381,535 | 398,878 |
Total long-term debt | 389,115 | 404,612 |
Revolving Credit Facility, Due Mar. 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 83,464 | |
Total long-term debt | 83,464 | |
Revolving Credit Facility, Due Nov. 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 90,555 | |
Total long-term debt | 90,555 | |
5.375% Notes, Due Oct. 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 250,000 | 250,000 |
Long-term debt, net of current portion | 250,000 | 250,000 |
Total long-term debt | 250,000 | 250,000 |
2.40% Term Loan, Due Jun. 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 10,803 | 12,155 |
Total long-term debt | 10,803 | 12,155 |
2.05% Term Loan, Due Mar. 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 44,848 | 51,902 |
Total long-term debt | $ 44,848 | $ 51,902 |
Long-Term Debt - Summary of L58
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Revolving Credit Facility, Due Mar. 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity date | Mar. 31, 2020 | |
Revolving Credit Facility, Due Nov. 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity date | Nov. 30, 2016 | |
5.375% Notes, Due Oct. 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity date | Oct. 31, 2020 | |
Interest rate on debt | 5.375% | 5.375% |
2.40% Term Loan, Due Jun. 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity date | Jun. 30, 2022 | |
Interest rate on debt | 2.40% | 2.40% |
2.05% Term Loan, Due Mar. 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity date | Mar. 31, 2023 | |
Interest rate on debt | 2.05% | 2.05% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)InstallmentDebtAgreements | Mar. 12, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 04, 2014EUR (€) | Sep. 04, 2014USD ($) | Apr. 11, 2013EUR (€) | Apr. 11, 2013USD ($) | Oct. 03, 2012USD ($) |
Debt Instrument [Line Items] | |||||||||
Margin over Euro-rate | 1.00% | 1.00% | |||||||
Leverage ratio | 220.00% | ||||||||
Other Assets [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregated unamortized deferred debt issuance costs | $ 5,600,000 | $ 5,600,000 | |||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio | 350.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||
Debt instrument maturity date | Mar. 12, 2020 | ||||||||
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Federal fund rate spread | 0.50% | ||||||||
Revolving Credit Facility, Due Nov. 2016 [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Federal fund rate spread | 0.125% | ||||||||
Revolving Credit Facility, Due Nov. 2016 [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Federal fund rate spread | 1.00% | ||||||||
Revolving Credit Facility, Due Nov. 2016 [Member] | Daily Euro Rate [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Federal fund rate spread | 1.125% | ||||||||
Revolving Credit Facility, Due Nov. 2016 [Member] | Daily Euro Rate [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Federal fund rate spread | 2.00% | ||||||||
Letters of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit issued | 5,300,000 | $ 5,300,000 | $ 5,300,000 | ||||||
Letters of credit outstanding | $ 0 | $ 0 | |||||||
5.375% Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Oct. 15, 2020 | ||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||
Percentage of aggregate principal amount of outstanding | 5.375% | 5.375% | 5.375% | ||||||
Frequency of interest payable | Semiannually | ||||||||
Debt instrument redemption | The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a "make-whole" premium as specified in the Indenture. | ||||||||
IKB Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | € 42,700,000 | $ 57,600,000 | |||||||
Percentage of aggregate principal amount of outstanding | 2.05% | 2.05% | |||||||
Number of separate loan agreement | DebtAgreements | 2 | ||||||||
Number of installments | Installment | 32 | ||||||||
Installments beginning date | Jun. 30, 2015 | ||||||||
Installments ending date | Mar. 31, 2023 | ||||||||
2014 IKB Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | € 10,000,000 | $ 12,600,000 | |||||||
Percentage of aggregate principal amount of outstanding | 2.40% | 2.40% | |||||||
Frequency of interest payable | Quarterly | ||||||||
Number of installments | Installment | 27 | ||||||||
Installments beginning date | Sep. 30, 2015 | ||||||||
Installments ending date | Jun. 30, 2022 |
Asset Retirement Obligation - A
Asset Retirement Obligation - Additional Information (Detail) $ in Millions | Dec. 31, 2008USD ($) |
Asset Retirement Obligation Disclosure [Abstract] | |
Fair value of asset retirement obligations related to the legal requirements | $ 11.5 |
Asset Retirement Obligation - S
Asset Retirement Obligation - Schedule of Asset Retirement Obligation (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at January 1, | $ 4,114 | $ 5,032 |
Accretion | 59 | 115 |
Payments | (2,384) | (767) |
Downward revision | (1,000) | |
Gain | (359) | (128) |
Balance at September 30, | $ 430 | $ 4,252 |
Asset Retirement Obligation -62
Asset Retirement Obligation - Schedule of Consolidated Balance Sheets where Asset Retirement Obligations are Recorded (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Asset retirement obligations | $ 430 | $ 4,114 | $ 4,252 | $ 5,032 |
Other Current Liabilities [Member] | ||||
Asset retirement obligations | $ 430 | 2,855 | ||
Other Long-Term Liabilities [Member] | ||||
Asset retirement obligations | $ 1,259 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | $ 389,115 | $ 404,612 |
Fair Value | 391,712 | 411,757 |
2.40% Term Loan, Due Jun. 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | 10,803 | 12,155 |
Fair Value | 10,729 | 12,626 |
2.05% Term Loan, Due Mar. 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | 44,848 | 51,902 |
Fair Value | 43,611 | 53,106 |
Revolving Credit Facility Due Mar. 2020 And Nov. 2016 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | 83,464 | 90,555 |
Fair Value | 83,464 | 90,555 |
5.375% Notes, Due Oct. 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | 250,000 | 250,000 |
Fair Value | $ 253,908 | $ 255,470 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Parenthetical) (Detail) | Sep. 30, 2015 | Dec. 31, 2014 |
2.40% Term Loan, Due Jun. 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Percentage of aggregate principal amount of outstanding | 2.40% | 2.40% |
2.05% Term Loan, Due Mar. 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Percentage of aggregate principal amount of outstanding | 2.05% | 2.05% |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amount of fixed rate debt | $ 381,535 | $ 398,878 |
5.375% Notes, Due Oct. 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amount of fixed rate debt | $ 250,000 | $ 250,000 |
Interest rate on debt | 5.375% | 5.375% |
Financial Derivatives and Hed66
Financial Derivatives and Hedging Activities - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Designated as Hedging [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Period of production costs expected to be incurred | 12 months |
Maturities of foreign currency derivative contracts | 12 months |
Designated as Hedging [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Period of production costs expected to be incurred | 18 months |
Maturities of foreign currency derivative contracts | 18 months |
Not Designated as Hedging [Member] | |
Derivative [Line Items] | |
Maturities of foreign currency derivative contracts | 1 month |
Fair Value, Measurements [Member] | |
Derivative [Line Items] | |
Accumulated other comprehensive income realization period | 12 months |
Financial Derivatives and Hed67
Financial Derivatives and Hedging Activities - Outstanding Derivatives Used to Hedge Foreign Exchange Risks (Detail) | Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015PHP | Sep. 30, 2015CAD | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014PHP | Dec. 31, 2014CAD |
Cash Flow Hedges [Member] | Euro / British Pound [Member] | Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | € 9,189,000 | € 4,592,000 | ||||||
Cash Flow Hedges [Member] | Euro / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | PHP | PHP 661,453,000 | PHP 523,313,000 | ||||||
Cash Flow Hedges [Member] | British Pound / Philippine Peso [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | PHP | PHP 471,607,000 | PHP 260,535,000 | ||||||
Cash Flow Hedges [Member] | Euro / U.S. Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | $ | $ 47,751,000 | $ 32,527,000 | ||||||
Cash Flow Hedges [Member] | U.S. Dollar / Canadian Dollar [Member] | Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | CAD | CAD 19,205,000 | CAD 10,036,000 | ||||||
Foreign Currency Hedges [Member] | Euro / British Pound [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | 2,000,000 | |||||||
Foreign Currency Hedges [Member] | Euro / U.S. Dollar [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | $ | 7,000,000 | |||||||
Foreign Currency Hedges [Member] | U.S Dollar / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | $ | 4,000,000 | |||||||
Foreign Currency Hedges [Member] | U.S. Dollar / British Pound [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | $ | $ 7,000,000 | $ 9,000,000 | ||||||
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Sell Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | 2,000,000 | |||||||
Foreign Currency Hedges [Member] | British Pound / Euro [Member] | Not Designated as Hedging [Member] | Sell/Buy - Buy Notional [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Derivative notional amount | € 15,500,000 | € 3,000,000 |
Financial Derivatives and Hed68
Financial Derivatives and Hedging Activities - Fair Values of Derivative Instruments (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 693,000 | $ 3,106,000 |
Designated as Hedging [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 1,676,000 | 394,000 |
Not Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 91,000 | 70,000 |
Not Designated as Hedging [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 | $ 161,000 |
Financial Derivatives and Hed69
Financial Derivatives and Hedging Activities - Income or (Loss) from Derivative Instruments Recognized in Results of Operations (Detail) - Forward Foreign Currency Exchange Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Costs of Products Sold [Member] | Designated as Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivative instruments, gain (loss) | $ 1,972 | $ (137) | $ 4,595 | $ (1,227) |
Other - Net [Member] | Designated as Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Ineffective portion of derivative instruments, gain (loss) | (184) | 81 | 104 | 181 |
Other - Net [Member] | Not Designated as Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) | $ 621 | $ 595 | $ 1,028 | $ 1,792 |
Financial Derivatives and Hed70
Financial Derivatives and Hedging Activities - Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Balance at January 1, | $ 3,282 | $ (1,296) |
Deferred gains on cash flow hedges | 1,100 | 2,223 |
Reclassified to earnings | (4,595) | 1,227 |
Balance at September 30, | $ (213) | $ 2,154 |
Commitments, Contingencies an71
Commitments, Contingencies and Legal Proceedings - Additional Information (Detail) | Oct. 14, 2014USD ($) | Sep. 25, 2014 | Jan. 31, 2008 | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)Operable_Unit | Sep. 30, 2014USD ($) | May. 15, 2015 | Dec. 31, 2014USD ($) |
Commitments Contingencies And Litigation [Line Items] | |||||||||
Number of operable units | Operable_Unit | 5 | ||||||||
Upper end estimate of total past and future response costs | $ 1,100,000,000 | ||||||||
Uncertainty premium for future response costs | 100,000,000 | ||||||||
Cost of response incurred by government | $ 4,280,000 | ||||||||
Initial minimum amount of NRD assessment | 176,000,000 | ||||||||
Initial maximum amount of NRD assessment | 333,000,000 | ||||||||
Revised minimum amount of NRD assessment | 287,000,000 | ||||||||
Revised maximum amount of NRD assessment | 423,000,000 | ||||||||
Cash payments towards completion of remediation activities | 45,900,000 | 5,617,000 | $ 39,000 | ||||||
Environmental loss contingencies | 105,000,000 | ||||||||
Other prepaid loss contingencies for earlier settlements | 59,000,000 | ||||||||
Increase in remediation activities reserve | 10,000,000 | ||||||||
Reserve for Environmental liabilities, current portion | $ 16,022,000 | $ 16,022,000 | $ 1,075,000 | ||||||
Maximum estimated percentage of discharge | 27.00% | ||||||||
Whiting Litigation [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Remaining costs and damages amount | $ 33,000,000 | ||||||||
2015 Work Plan [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Estimated cost of work to satisfy our share of obligation | 10,000,000 | 10,000,000 | |||||||
2016 Work Plan [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Increase in remediation activities reserve | 10,000,000 | ||||||||
Scenario, Forecast [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Cash payments towards completion of remediation activities | $ 4,500,000 | ||||||||
NCR [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Percentage of apportion liability on cost | 28.00% | ||||||||
NCR and GP [Member] | Whiting Litigation [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Costs and damages amount | 67,000,000 | ||||||||
NCR and GP [Member] | 2016 Work Plan [Member] | Whiting Litigation [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Annual estimated cost rate seek by Government | 100,000,000 | $ 100,000,000 | |||||||
Minimum [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Period over which estimated cost to be incurred | 2 years | ||||||||
Minimum [Member] | Appvion [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Litigation claim amount | $ 170,000,000 | ||||||||
Maximum [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Estimated cost related to Fox River matter | $ 175,000,000 | ||||||||
Period over which estimated cost to be incurred | 3 years | ||||||||
OU2-5 [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Estimated future cost of work yet to be done | 500,000,000 | ||||||||
Annual estimated cost rate seek by Government | 70,000,000 | $ 70,000,000 | |||||||
NCR costs and damages percentage | 100.00% | ||||||||
OU2-5 [Member] | Whiting Litigation [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
NCR costs and damages percentage | 100.00% | ||||||||
OU2-5 [Member] | 2015 Work Plan [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Annual remediation cost rate seek by Government | 100,000,000 | 100,000,000 | |||||||
OU2-5 [Member] | Scenario, Forecast [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Estimated future cost of remediation | $ 10,000,000 | ||||||||
Dredging Season [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Annual estimated cost rate seek by Government | $ 100,000,000 | $ 100,000,000 | |||||||
OU1 [Member] | |||||||||
Commitments Contingencies And Litigation [Line Items] | |||||||||
Estimated future cost of work yet to be done | $ 100,000,000 |
Commitments, Contingencies an72
Commitments, Contingencies and Legal Proceedings - Schedule of Reserves (Detail) - USD ($) $ in Thousands | Oct. 14, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Environmental Remediation Obligations [Abstract] | |||
Beginning balance | $ 16,223 | $ 16,276 | |
Payments | $ (45,900) | (5,617) | (39) |
Accruals | 10,000 | ||
Ending balance | $ 20,606 | $ 16,237 |
Segment Information - Schedule
Segment Information - Schedule of Financial and Other Information by Business Unit (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)T | Sep. 30, 2014USD ($)T | Sep. 30, 2015USD ($)T | Sep. 30, 2014USD ($)T | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 419,960 | $ 465,092 | $ 1,248,232 | $ 1,366,154 |
Energy and related sales, net | 1,153 | 860 | 3,936 | 6,912 |
Total revenue | 421,113 | 465,952 | 1,252,168 | 1,373,066 |
Cost of products sold | 361,205 | 385,439 | 1,107,319 | 1,196,076 |
Gross profit (loss) | 59,908 | 80,513 | 144,849 | 176,990 |
SG&A | 39,792 | 37,886 | 100,201 | 103,751 |
Gains on dispositions of plant, equipment and timberlands, net | (123) | (1,590) | (2,888) | (3,881) |
Total operating income (loss) | 20,239 | 44,217 | 47,536 | 77,120 |
Non-operating expense | (4,447) | (4,808) | (13,137) | (13,997) |
Income (loss) before income taxes | $ 15,792 | $ 39,409 | $ 34,399 | $ 63,123 |
Supplementary Data | ||||
Net tons sold | T | 267,200 | 274,700 | 781,200 | 796,800 |
Depreciation, depletion and amortization | $ 15,800 | $ 16,700 | $ 47,423 | $ 53,547 |
Capital expenditures | 29,700 | 16,900 | 74,300 | 47,000 |
Composite Fibers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 133,900 | 154,500 | 409,600 | 470,100 |
Total revenue | 133,900 | 154,500 | 409,600 | 470,100 |
Cost of products sold | 108,400 | 123,700 | 329,800 | 376,700 |
Gross profit (loss) | 25,500 | 30,800 | 79,800 | 93,400 |
SG&A | 11,500 | 12,600 | 34,400 | 38,800 |
Total operating income (loss) | 14,000 | 18,100 | 45,400 | 54,600 |
Income (loss) before income taxes | $ 14,000 | $ 18,100 | $ 45,400 | $ 54,600 |
Supplementary Data | ||||
Net tons sold | T | 38,900,000 | 40,100,000 | 116,200,000 | 119,500,000 |
Depreciation, depletion and amortization | $ 6,700 | $ 7,400 | $ 20,100 | $ 22,700 |
Capital expenditures | 5,800 | 5,400 | 17,300 | 16,700 |
Advanced Airlaid Materials [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 63,200 | 74,400 | 183,000 | 216,200 |
Total revenue | 63,200 | 74,400 | 183,000 | 216,200 |
Cost of products sold | 54,600 | 64,700 | 162,000 | 189,900 |
Gross profit (loss) | 8,600 | 9,700 | 21,000 | 26,300 |
SG&A | 1,800 | 2,200 | 5,800 | 6,800 |
Total operating income (loss) | 6,800 | 7,500 | 15,200 | 19,500 |
Income (loss) before income taxes | $ 6,800 | $ 7,500 | $ 15,200 | $ 19,500 |
Supplementary Data | ||||
Net tons sold | T | 24,800,000 | 26,300,000 | 71,400,000 | 76,000,000 |
Depreciation, depletion and amortization | $ 2,200 | $ 2,300 | $ 6,500 | $ 6,900 |
Capital expenditures | 1,800 | 1,300 | 4,600 | 4,100 |
Specialty Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 222,800 | 236,200 | 655,600 | 679,900 |
Energy and related sales, net | 1,200 | 900 | 3,900 | 6,900 |
Total revenue | 224,000 | 237,100 | 659,500 | 686,800 |
Cost of products sold | 196,100 | 195,200 | 608,400 | 624,300 |
Gross profit (loss) | 27,900 | 41,900 | 51,100 | 62,500 |
SG&A | 10,400 | 14,100 | 34,200 | 39,500 |
Total operating income (loss) | 17,500 | 27,800 | 16,900 | 23,000 |
Income (loss) before income taxes | $ 17,500 | $ 27,800 | $ 16,900 | $ 23,000 |
Supplementary Data | ||||
Net tons sold | T | 203,600,000 | 208,400,000 | 593,600,000 | 601,300,000 |
Depreciation, depletion and amortization | $ 6,400 | $ 6,500 | $ 19,300 | $ 22,600 |
Capital expenditures | 22,100 | 9,700 | 51,000 | 24,500 |
Other and Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of products sold | 2,100 | 1,800 | 7,100 | 5,200 |
Gross profit (loss) | (2,100) | (1,800) | (7,100) | (5,200) |
SG&A | 16,200 | 9,000 | 25,700 | 18,700 |
Gains on dispositions of plant, equipment and timberlands, net | (100) | (1,600) | (2,900) | (3,900) |
Total operating income (loss) | (18,200) | (9,200) | (29,900) | (20,000) |
Non-operating expense | (4,400) | (4,800) | (13,100) | (14,000) |
Income (loss) before income taxes | (22,600) | (14,000) | (43,000) | (34,000) |
Supplementary Data | ||||
Depreciation, depletion and amortization | $ 500 | 500 | 1,500 | 1,300 |
Capital expenditures | $ 500 | $ 1,400 | $ 1,700 |
Condensed Consolidating Finan74
Condensed Consolidating Financial Statements - Additional Information (Detail) | Sep. 30, 2015 | Oct. 03, 2012 |
PHG Tea Leaves, Inc. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage owned in domestic subsidiaries | 100.00% | |
Mollanvick, Inc. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage owned in domestic subsidiaries | 100.00% | |
Glatfelter Holdings, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage owned in domestic subsidiaries | 100.00% | |
Glatfelter Composite Fibers N. A., Inc. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage owned in domestic subsidiaries | 100.00% | |
Glatfelter Advanced Materials N.A., Inc. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage owned in domestic subsidiaries | 100.00% | |
5.375% Notes [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Interest rate on notes guaranteed | 5.375% | 5.375% |
Condensed Consolidating Finan75
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | $ 419,960 | $ 465,092 | $ 1,248,232 | $ 1,366,154 |
Energy and related sales, net | 1,153 | 860 | 3,936 | 6,912 |
Total revenues | 421,113 | 465,952 | 1,252,168 | 1,373,066 |
Costs of products sold | 361,205 | 385,439 | 1,107,319 | 1,196,076 |
Gross profit | 59,908 | 80,513 | 144,849 | 176,990 |
Selling, general and administrative expenses | 39,792 | 37,886 | 100,201 | 103,751 |
Gains on dispositions of plant, equipment and timberlands, net | (123) | (1,590) | (2,888) | (3,881) |
Operating income (loss) | 20,239 | 44,217 | 47,536 | 77,120 |
Other non-operating income (expense) | ||||
Interest expense | (4,317) | (4,671) | (13,177) | (14,245) |
Interest income | 90 | 30 | 232 | 143 |
Other, net | (220) | (167) | (192) | 105 |
Total non-operating expense | (4,447) | (4,808) | (13,137) | (13,997) |
Income (loss) before income taxes | 15,792 | 39,409 | 34,399 | 63,123 |
Income tax provision (benefit) | 2,288 | 9,037 | 4,122 | 13,434 |
Net income (loss) | 13,504 | 30,372 | 30,277 | 49,689 |
Other comprehensive income (loss) | (3,002) | (29,577) | (21,200) | (23,586) |
Comprehensive income (loss) | 10,502 | 795 | 9,077 | 26,103 |
Adjustments/ Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | (19,437) | (17,524) | (59,655) | (55,211) |
Total revenues | (19,437) | (17,524) | (59,655) | (55,211) |
Costs of products sold | (19,437) | (17,524) | (59,655) | (55,211) |
Other non-operating income (expense) | ||||
Interest expense | 23,230 | 90,217 | 36,559 | 95,682 |
Interest income | (23,231) | (90,218) | (36,559) | (95,683) |
Equity in earnings of subsidiaries | (4,808) | 59,566 | (60,654) | (18,555) |
Other, net | 5 | 5 | ||
Total non-operating expense | (4,809) | 59,570 | (60,654) | (18,551) |
Income (loss) before income taxes | (4,809) | 59,570 | (60,654) | (18,551) |
Net income (loss) | (4,809) | 59,570 | (60,654) | (18,551) |
Other comprehensive income (loss) | 13,706 | 8,919 | 9,451 | 7,485 |
Comprehensive income (loss) | 8,897 | 68,489 | (51,203) | (11,066) |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 222,803 | 236,182 | 655,599 | 679,877 |
Energy and related sales, net | 1,153 | 860 | 3,936 | 6,912 |
Total revenues | 223,956 | 237,042 | 659,535 | 686,789 |
Costs of products sold | 197,906 | 197,182 | 614,060 | 629,984 |
Gross profit | 26,050 | 39,860 | 45,475 | 56,805 |
Selling, general and administrative expenses | 24,764 | 19,352 | 57,607 | 53,699 |
Gains on dispositions of plant, equipment and timberlands, net | (4) | (1,590) | (1,526) | (2,565) |
Operating income (loss) | 1,290 | 22,098 | (10,606) | 5,671 |
Other non-operating income (expense) | ||||
Interest expense | (4,346) | (4,790) | (13,771) | (14,284) |
Interest income | 181 | 152 | 513 | 468 |
Equity in earnings of subsidiaries | 14,173 | 14,935 | 48,775 | 56,784 |
Other, net | (961) | (383) | (2,423) | (1,603) |
Total non-operating expense | 9,047 | 9,914 | 33,094 | 41,365 |
Income (loss) before income taxes | 10,337 | 32,012 | 22,488 | 47,036 |
Income tax provision (benefit) | (3,167) | 1,640 | (7,789) | (2,653) |
Net income (loss) | 13,504 | 30,372 | 30,277 | 49,689 |
Other comprehensive income (loss) | (3,002) | (29,577) | (21,200) | (23,586) |
Comprehensive income (loss) | 10,502 | 795 | 9,077 | 26,103 |
Guarantors [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 19,005 | 17,735 | 61,822 | 56,138 |
Total revenues | 19,005 | 17,735 | 61,822 | 56,138 |
Costs of products sold | 17,299 | 17,019 | 58,554 | 53,491 |
Gross profit | 1,706 | 716 | 3,268 | 2,647 |
Selling, general and administrative expenses | (8) | 589 | 947 | 1,431 |
Gains on dispositions of plant, equipment and timberlands, net | (1,183) | (1,316) | ||
Operating income (loss) | 1,714 | 127 | 3,504 | 2,532 |
Other non-operating income (expense) | ||||
Interest income | 23,129 | 89,951 | 36,226 | 95,165 |
Equity in earnings of subsidiaries | (9,366) | (74,502) | 11,879 | (38,229) |
Other, net | 23 | 9 | (136) | 30 |
Total non-operating expense | 13,786 | 15,458 | 47,969 | 56,966 |
Income (loss) before income taxes | 15,500 | 15,585 | 51,473 | 59,498 |
Income tax provision (benefit) | 1,270 | 1,091 | 2,586 | 2,719 |
Net income (loss) | 14,230 | 14,494 | 48,887 | 56,779 |
Other comprehensive income (loss) | (5,954) | (25,843) | (30,607) | (26,392) |
Comprehensive income (loss) | 8,276 | (11,349) | 18,280 | 30,387 |
Non Guarantors [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | 197,589 | 228,699 | 590,466 | 685,350 |
Total revenues | 197,589 | 228,699 | 590,466 | 685,350 |
Costs of products sold | 165,437 | 188,762 | 494,360 | 567,812 |
Gross profit | 32,152 | 39,937 | 96,106 | 117,538 |
Selling, general and administrative expenses | 15,036 | 17,946 | 41,647 | 48,622 |
Gains on dispositions of plant, equipment and timberlands, net | (119) | (179) | ||
Operating income (loss) | 17,235 | 21,991 | 54,638 | 68,916 |
Other non-operating income (expense) | ||||
Interest expense | (23,201) | (90,098) | (35,965) | (95,643) |
Interest income | 11 | 145 | 52 | 193 |
Other, net | 718 | 202 | 2,367 | 1,673 |
Total non-operating expense | (22,472) | (89,751) | (33,546) | (93,777) |
Income (loss) before income taxes | (5,237) | (67,760) | 21,092 | (24,861) |
Income tax provision (benefit) | 4,185 | 6,306 | 9,325 | 13,368 |
Net income (loss) | (9,422) | (74,066) | 11,767 | (38,229) |
Other comprehensive income (loss) | (7,752) | 16,924 | 21,156 | 18,907 |
Comprehensive income (loss) | $ (17,174) | $ (57,142) | $ 32,923 | $ (19,322) |
Condensed Consolidating Finan76
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 73,665 | $ 99,837 | $ 53,655 | $ 122,882 |
Other current assets | 485,779 | 474,785 | ||
Plant, equipment and timberlands, net | 697,324 | 697,608 | ||
Other assets | 280,979 | 289,274 | ||
Total assets | 1,537,747 | 1,561,504 | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | 292,350 | 279,731 | ||
Long-term debt | 381,535 | 398,878 | ||
Deferred income taxes | 101,207 | 104,016 | ||
Other long-term liabilities | 116,539 | 129,770 | ||
Total liabilities | 891,631 | 912,395 | ||
Shareholders' equity | 646,116 | 649,109 | ||
Total liabilities and shareholders' equity | 1,537,747 | 1,561,504 | ||
Adjustments/ Eliminations [Member] | ||||
Assets | ||||
Other current assets | (268,192) | (436,976) | ||
Investments in subsidiaries | (1,239,086) | (1,227,624) | ||
Other assets | (485) | (17,979) | ||
Total assets | (1,507,763) | (1,682,579) | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | (271,574) | (444,258) | ||
Long-term debt | (572,579) | |||
Deferred income taxes | 3,376 | (12,289) | ||
Other long-term liabilities | 5,780 | |||
Total liabilities | (268,198) | (1,023,346) | ||
Shareholders' equity | (1,239,565) | (659,233) | ||
Total liabilities and shareholders' equity | (1,507,763) | (1,682,579) | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 28,626 | 42,208 | 20,308 | 56,216 |
Other current assets | 232,486 | 216,940 | ||
Plant, equipment and timberlands, net | 283,712 | 255,255 | ||
Investments in subsidiaries | 734,303 | 826,084 | ||
Other assets | 132,732 | 121,125 | ||
Total assets | 1,411,859 | 1,461,612 | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | 368,220 | 403,662 | ||
Long-term debt | 250,000 | 250,000 | ||
Deferred income taxes | 48,226 | 46,483 | ||
Other long-term liabilities | 99,297 | 112,358 | ||
Total liabilities | 765,743 | 812,503 | ||
Shareholders' equity | 646,116 | 649,109 | ||
Total liabilities and shareholders' equity | 1,411,859 | 1,461,612 | ||
Guarantors [Member] | ||||
Assets | ||||
Cash and cash equivalents | 297 | 509 | 90 | 495 |
Other current assets | 260,054 | 439,910 | ||
Plant, equipment and timberlands, net | 1,005 | 996 | ||
Investments in subsidiaries | 504,783 | 401,540 | ||
Total assets | 766,139 | 842,955 | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | 31,720 | 13,143 | ||
Deferred income taxes | (505) | (506) | ||
Other long-term liabilities | 33 | 24 | ||
Total liabilities | 31,248 | 12,661 | ||
Shareholders' equity | 734,891 | 830,294 | ||
Total liabilities and shareholders' equity | 766,139 | 842,955 | ||
Non Guarantors [Member] | ||||
Assets | ||||
Cash and cash equivalents | 44,742 | 57,120 | $ 33,257 | $ 66,171 |
Other current assets | 261,431 | 254,911 | ||
Plant, equipment and timberlands, net | 412,607 | 441,357 | ||
Other assets | 148,732 | 186,128 | ||
Total assets | 867,512 | 939,516 | ||
Liabilities and Shareholders' Equity | ||||
Current liabilities | 163,984 | 307,184 | ||
Long-term debt | 131,535 | 721,457 | ||
Deferred income taxes | 50,110 | 70,328 | ||
Other long-term liabilities | 17,209 | 11,608 | ||
Total liabilities | 362,838 | 1,110,577 | ||
Shareholders' equity | 504,674 | (171,061) | ||
Total liabilities and shareholders' equity | $ 867,512 | $ 939,516 |
Condensed Consolidating Finan77
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided (used) by Operating activities | $ 70,523 | $ 21,380 |
Investing activities | ||
Expenditures for purchases of plant, equipment and timberlands | (74,280) | (47,036) |
Proceeds from disposal plant, equipment and timberlands, net | 3,181 | 4,051 |
Acquisitions, net of cash acquired | (224) | |
Other | (1,600) | (600) |
Net cash used by investing activities | (72,923) | (43,585) |
Financing activities | ||
Net proceeds from (repayments of) indebtedness | (3,387) | (18,128) |
Payments of borrowing costs | (1,329) | |
Payment of dividends to shareholders | (15,215) | (13,935) |
Repurchases of common stock | (12,180) | |
Payments related to share-based compensation awards and other | (2,015) | (1,764) |
Net cash used by financing activities | (21,946) | (46,007) |
Effect of exchange rate on cash | (1,826) | (1,015) |
Net (decrease) increase in cash | (26,172) | (69,227) |
Cash and cash equivalents at the beginning of period | 99,837 | 122,882 |
Cash and cash equivalents at the end of period | 73,665 | 53,655 |
Adjustments/ Eliminations [Member] | ||
Investing activities | ||
Repayments from intercompany loans | (55,320) | (10,409) |
Advances of intercompany loans | 44,590 | 15,540 |
Intercompany capital (contributed) returned | (10,200) | |
Net cash used by investing activities | (20,930) | 5,131 |
Financing activities | ||
Repayments of intercompany loans | 55,320 | 10,409 |
Borrowings of intercompany loans | (44,590) | (15,540) |
Intercompany capital received (returned) | 10,200 | |
Net cash used by financing activities | 20,930 | (5,131) |
Parent Company [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided (used) by Operating activities | 9,927 | 712 |
Investing activities | ||
Expenditures for purchases of plant, equipment and timberlands | (52,331) | (26,368) |
Proceeds from disposal plant, equipment and timberlands, net | 1,584 | 2,687 |
Repayments from intercompany loans | 1,465 | |
Intercompany capital (contributed) returned | 10,500 | |
Other | (1,600) | (600) |
Net cash used by investing activities | (40,382) | (24,281) |
Financing activities | ||
Payments of borrowing costs | (1,329) | |
Payment of dividends to shareholders | (15,215) | (13,935) |
Repayments of intercompany loans | (9,158) | |
Repurchases of common stock | (12,180) | |
Borrowings of intercompany loans | 44,590 | 15,540 |
Payments related to share-based compensation awards and other | (2,015) | (1,764) |
Net cash used by financing activities | 16,873 | (12,339) |
Net (decrease) increase in cash | (13,582) | (35,908) |
Cash and cash equivalents at the beginning of period | 42,208 | 56,216 |
Cash and cash equivalents at the end of period | 28,626 | 20,308 |
Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided (used) by Operating activities | 152 | 3,371 |
Investing activities | ||
Expenditures for purchases of plant, equipment and timberlands | (42) | |
Proceeds from disposal plant, equipment and timberlands, net | 1,213 | 1,355 |
Repayments from intercompany loans | 53,855 | 10,409 |
Advances of intercompany loans | (44,590) | (15,540) |
Intercompany capital (contributed) returned | (300) | |
Net cash used by investing activities | 10,136 | (3,776) |
Financing activities | ||
Intercompany capital received (returned) | (10,500) | |
Net cash used by financing activities | (10,500) | |
Net (decrease) increase in cash | (212) | (405) |
Cash and cash equivalents at the beginning of period | 509 | 495 |
Cash and cash equivalents at the end of period | 297 | 90 |
Non Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided (used) by Operating activities | 60,444 | 17,297 |
Investing activities | ||
Expenditures for purchases of plant, equipment and timberlands | (21,907) | (20,668) |
Proceeds from disposal plant, equipment and timberlands, net | 384 | 9 |
Acquisitions, net of cash acquired | (224) | |
Net cash used by investing activities | (21,747) | (20,659) |
Financing activities | ||
Net proceeds from (repayments of) indebtedness | (3,387) | (18,128) |
Repayments of intercompany loans | (46,162) | (10,409) |
Intercompany capital received (returned) | 300 | |
Net cash used by financing activities | (49,249) | (28,537) |
Effect of exchange rate on cash | (1,826) | (1,015) |
Net (decrease) increase in cash | (12,378) | (32,914) |
Cash and cash equivalents at the beginning of period | 57,120 | 66,171 |
Cash and cash equivalents at the end of period | $ 44,742 | $ 33,257 |