glt-10q_20170630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2017

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from           to

 

 

96 South George Street, Suite 520

York, Pennsylvania 17401

(Address of principal executive offices)

(717) 225-4711

(Registrant's telephone number, including area code)

 

 

Commission file

number

 

Exact name of registrant as

specified in its charter

 

IRS Employer

Identification No.

 

State or other jurisdiction of

incorporation or organization

 

 

1-03560

 

P. H. Glatfelter Company

 

23-0628360

 

Pennsylvania

 

 

N/A

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at the past 90 days.    Yes      No  .

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  .

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes      No  .

Common Stock outstanding on July 25, 2017 totaled 43,583,926 shares.

 

 

 


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

REPORT ON FORM 10-Q

For the QUARTERLY PERIOD ENDED

June 30, 2017

Table of Contents

 

 

Page

 

Page

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1

Financial Statements

 

 

 

Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2017 and 2016 (unaudited)

 

2

 

Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended June 30, 2017 and 2016 (unaudited)

 

3

 

Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 (unaudited)

 

4

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited)

 

5

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

6

 

1.

Organization

 

6

 

2.

Accounting Policies

 

6

 

3.

Earnings Per Share

 

7

 

4.

Accumulated Other Comprehensive Income

 

8

 

5.

Income Taxes

 

10

 

6.

Stock-based Compensation

 

10

 

7.

Retirement Plans and Other Post- Retirement Benefits

 

11

 

8.

Inventories

 

12

 

9.

Long-term Debt

 

12

 

10.

Fair Value of Financial Instruments

 

13

 

11.

Financial Derivatives and Hedging Activities

 

13

 

12.

Commitments, Contingencies and Legal Proceedings

 

15

 

13.

Segment Information

 

18

 

14.

Condensed Consolidating Financial Statements

 

19

 

15.

Subsequent Event

 

23

 

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

24

Item 3

Quantitative and Qualitative Disclosures About Market Risks

 

34

Item 4

Controls and Procedures

 

34

 

 

 

PART II – OTHER INFORMATION

 

35

 

 

 

 

Item 6

Exhibits

 

35

 

 

 

 

 

SIGNATURES

 

35

 

 

 

 


 

PART I

Item 1 – Financial Statements

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

In thousands, except per share

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net sales

 

$

387,342

 

 

$

406,413

 

 

$

778,055

 

 

$

808,631

 

Energy and related sales, net

 

 

981

 

 

 

2,001

 

 

 

2,110

 

 

 

2,667

 

Total revenues

 

 

388,323

 

 

 

408,414

 

 

 

780,165

 

 

 

811,298

 

Costs of products sold

 

 

357,887

 

 

 

365,691

 

 

 

692,800

 

 

 

710,732

 

Gross profit

 

 

30,436

 

 

 

42,723

 

 

 

87,365

 

 

 

100,566

 

Selling, general and administrative expenses

 

 

31,999

 

 

 

37,191

 

 

 

67,085

 

 

 

69,049

 

(Gains) losses on dispositions of plant, equipment and timberlands, net

 

 

(58

)

 

 

2

 

 

 

(26

)

 

 

26

 

Operating income (loss)

 

 

(1,505

)

 

 

5,530

 

 

 

20,306

 

 

 

31,491

 

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,476

)

 

 

(3,953

)

 

 

(8,484

)

 

 

(8,069

)

Interest income

 

 

45

 

 

 

61

 

 

 

158

 

 

 

152

 

Other, net

 

 

(149

)

 

 

317

 

 

 

(428

)

 

 

(383

)

Total non-operating expense

 

 

(4,580

)

 

 

(3,575

)

 

 

(8,754

)

 

 

(8,300

)

(Loss) income before income taxes

 

 

(6,085

)

 

 

1,955

 

 

 

11,552

 

 

 

23,191

 

Income tax provision (benefit)

 

 

(371

)

 

 

(10

)

 

 

5,663

 

 

 

5,058

 

Net income (loss)

 

$

(5,714

)

 

$

1,965

 

 

$

5,889

 

 

$

18,133

 

(Loss) earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.13

)

 

$

0.05

 

 

$

0.14

 

 

$

0.42

 

Diluted

 

 

(0.13

)

 

 

0.04

 

 

 

0.13

 

 

 

0.41

 

Cash dividends declared per common share

 

$

0.13

 

 

$

0.125

 

 

$

0.26

 

 

$

0.25

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,604

 

 

 

43,558

 

 

 

43,593

 

 

 

43,539

 

Diluted

 

 

43,604

 

 

 

44,062

 

 

 

44,449

 

 

 

43,963

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

- 2 -

GLATFELTER

06.30.17 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

In thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income (loss)

 

$

(5,714

)

 

$

1,965

 

 

$

5,889

 

 

$

18,133

 

Foreign currency translation adjustments

 

 

27,504

 

 

 

(14,864

)

 

 

33,569

 

 

 

(1,445

)

Net change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred (gains) losses on cash flow hedges, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of $1,632, $(258), $1,920 and $(201), respectively

 

 

(3,651

)

 

 

944

 

 

 

(4,597

)

 

 

1,010

 

Unrecognized retirement obligations, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of $(1,430), $(1,442), $(2,678) and $(2,809), respectively

 

 

2,479

 

 

 

2,381

 

 

 

4,553

 

 

 

4,638

 

Other comprehensive income (loss)

 

 

26,332

 

 

 

(11,539

)

 

 

33,525

 

 

 

4,203

 

Comprehensive income (loss)

 

$

20,618

 

 

$

(9,574

)

 

$

39,414

 

 

$

22,336

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

- 3 -

GLATFELTER

06.30.17 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

June 30

 

 

December 31

 

In thousands

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

69,442

 

 

$

55,444

 

Accounts receivable, net

 

172,014

 

 

 

152,989

 

Inventories

 

261,721

 

 

 

249,669

 

Prepaid expenses and other current assets

 

37,032

 

 

 

36,157

 

Total current assets

 

540,209

 

 

 

494,259

 

Plant, equipment and timberlands, net

 

838,007

 

 

 

775,898

 

Goodwill

 

78,855

 

 

 

73,094

 

Intangible assets, net

 

58,439

 

 

 

56,259

 

Other assets

 

126,271

 

 

 

121,749

 

Total assets

$

1,641,781

 

 

$

1,521,259

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

Current portion of long-term debt

$

10,400

 

 

$

8,961

 

Accounts payable

 

178,793

 

 

 

164,345

 

Dividends payable

 

5,681

 

 

 

5,455

 

Environmental liabilities

 

29,500

 

 

 

25,000

 

Other current liabilities

 

115,390

 

 

 

119,250

 

Total current liabilities

 

339,764

 

 

 

323,011

 

Long-term debt

 

431,494

 

 

 

363,647

 

Deferred income taxes

 

60,715

 

 

 

54,995

 

Other long-term liabilities

 

124,776

 

 

 

125,780

 

Total liabilities

 

956,749

 

 

 

867,433

 

Commitments and contingencies

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock

 

544

 

 

 

544

 

Capital in excess of par value

 

60,570

 

 

 

57,917

 

Retained earnings

 

957,418

 

 

 

962,884

 

Accumulated other comprehensive loss

 

(171,081

)

 

 

(204,606

)

 

 

847,451

 

 

 

816,739

 

Less cost of common stock in treasury

 

(162,419

)

 

 

(162,913

)

Total shareholders’ equity

 

685,032

 

 

 

653,826

 

Total liabilities and shareholders’ equity

$

1,641,781

 

 

$

1,521,259

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 4 -

GLATFELTER

06.30.17 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

Six months ended

June 30

 

In thousands

2017

 

 

2016

 

Operating activities

 

 

 

 

 

 

 

Net income

$

5,889

 

 

$

18,133

 

Adjustments to reconcile to net cash provided by operations:

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

34,967

 

 

 

33,411

 

Amortization of debt issue costs

 

578

 

 

 

574

 

Pension expense, net of unfunded benefits paid

 

2,512

 

 

 

1,964

 

Deferred income tax benefit

 

1,824

 

 

 

(2,672

)

(Gains) losses on dispositions of plant, equipment and timberlands, net

 

(26

)

 

 

26

 

Share-based compensation

 

2,956

 

 

 

2,803

 

Change in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

(12,511

)

 

 

(8,471

)

Inventories

 

(4,750

)

 

 

(12,295

)

Prepaid and other current assets

 

(1,711

)

 

 

(163

)

Accounts payable

 

7,044

 

 

 

(3,027

)

Accruals and other current liabilities

 

(6,399

)

 

 

5,252

 

Other

 

(1,609

)

 

 

1,105

 

Net cash provided by operating activities

 

28,764

 

 

 

36,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Expenditures for purchases of plant, equipment and timberlands

 

(71,047

)

 

 

(80,391

)

Proceeds from disposals of plant, equipment and timberlands, net

 

83

 

 

 

53

 

Other

 

 

 

 

(300

)

Net cash used by investing activities

 

(70,964

)

 

 

(80,638

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Net borrowings (repayments) under revolving credit facility

 

68,236

 

 

 

(11,403

)

Payments of borrowing costs

 

 

 

 

(136

)

Proceeds from term loans

 

 

 

 

19,428

 

Repayment of term loans

 

(4,528

)

 

 

(3,803

)

Payments of dividends

 

(11,130

)

 

 

(10,679

)

Proceeds from government grants

 

 

 

 

4,443

 

Payments related to share-based compensation awards and other

 

(112

)

 

 

(976

)

Net cash provided (used) by financing activities

 

52,466

 

 

 

(3,126

)

Effect of exchange rate changes on cash

 

3,732

 

 

 

352

 

Net increase (decrease) in cash and cash equivalents

 

13,998

 

 

 

(46,772

)

Cash and cash equivalents at the beginning of period

 

55,444

 

 

 

105,304

 

Cash and cash equivalents at the end of period

$

69,442

 

 

$

58,532

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

Interest, net of amounts capitalized

$

7,810

 

 

$

7,509

 

Income taxes, net

 

4,193

 

 

 

8,486

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

- 5 -

GLATFELTER

06.30.17 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

 

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. The terms “we,” “us,” “our,” “the Company,” or “Glatfelter,” refer to P. H. Glatfelter Company and subsidiaries unless the context indicates otherwise. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

 

 

2.

ACCOUNTING POLICIES

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

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 2016 Annual Report on Form 10-K.

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements  In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). The update requires entities to present the service cost component of the net periodic benefit cost in the same income statement

line item as other employee compensation costs arising from services rendered during the period. All other components are to be presented below the determination of operating income. Entities will be required to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. ASU 2017-07 is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. We do not expect the adoption of ASU 2017-07 will have a material impact on our consolidated financial statements.

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting designed to simplify certain aspects of accounting for share-based awards. The new ASU requires entities to recognize as a component of income tax expense all excess tax benefits or deficiencies arising from the difference between compensation costs recognized and the intrinsic value at the time an option is exercised or, in the case of restricted stock and similar awards, the fair value upon vesting of an award. Previously such differences were recognized in additional paid in capital as part of an “APIC pool.” The ASU also requires entities to exclude excess tax benefits and tax deficiencies from the calculation of common share equivalents for purposes of calculating earnings per share. In addition, as permitted by the ASU, we have elected to account for the impact of forfeitures as they occur rather to estimate forfeitures for purposes of recognizing compensation expense. We adopted this standard effective January 1, 2017, on a prospective basis; however, the adoption of the new standard did not have a material impact on our reported results of operations or financial position.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require organizations such as us that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will be effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are in the process of assessing the impact this standard will have on us and expect to follow a modified retrospective method provided for under the standard.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments that changes the impairment model for most financial instruments, including trade receivables from an incurred loss method to a new forward-looking approach, based on expected losses.

- 6 -

GLATFELTER

06.30.17 Form 10-Q


 

Under the new guidance, an allowance is recognized based on an estimate of expected credit losses. This standard is effective for us in the first quarter of 2020 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact this standard may have on our results of operations and financial position.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted retrospectively for fiscal years beginning after December 15, 2017. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The guidance allows for both retrospective and modified retrospective methods of adoption. We will apply the modified retrospective method of adoption. We continue to perform our assessment of the impact of the ASU on our policies, processes, systems and controls and are developing processes to obtain the information necessary for the new disclosures. This assessment requires, among others, a review of a substantial amount of the contracts we have with our customers.

Substantially all of our revenue is earned pursuant to contracts under which we have one performance obligation that is satisfied at a point-in-time. Based on our analysis completed to date, we do not expect this ASU will have a significant impact on the timing or amount of revenue recognition, our results of operations or our financial position.

 

 

3.

EARNINGS PER SHARE

The following table sets forth the details of basic and diluted earnings per share (“EPS”):

 

 

Three months ended

June 30

 

In thousands, except per share

2017

 

 

 

2016

 

Net income (loss)

$

(5,714

)

 

 

$

1,965

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding used in basic EPS

 

43,604

 

 

 

 

43,558

 

Common shares issuable upon

 

 

 

 

 

 

 

 

exercise of dilutive stock options

 

 

 

 

 

 

 

 

and PSAs / RSUs

 

 

 

 

 

504

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding and common share

 

 

 

 

 

 

 

 

equivalents used in diluted EPS

 

43,604

 

 

 

 

44,062

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

Basic

$

(0.13

)

 

 

$

0.05

 

Diluted

 

(0.13

)

 

 

 

0.04

 

 

 

 

Six months ended

June 30

 

In thousands, except per share

2017

 

 

 

2016

 

Net income

$

5,889

 

 

 

$

18,133

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding used in basic EPS

 

43,593

 

 

 

 

43,539

 

Common shares issuable upon

 

 

 

 

 

 

 

 

exercise of dilutive stock options

 

 

 

 

 

 

 

 

and PSAs / RSUs

 

856

 

 

 

 

424

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding and common share

 

 

 

 

 

 

 

 

equivalents used in diluted EPS

 

44,449

 

 

 

 

43,963

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

$

0.14

 

 

 

$

0.42

 

Diluted

 

0.13

 

 

 

 

0.41

 

 

The following table sets forth potential common shares outstanding that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive:

 

 

June 30

 

In thousands

2017

 

 

 

2016

 

Three months ended

 

1,327

 

 

 

 

1,368

 

Six months ended

 

591

 

 

 

 

1,451

 

 

 

 

 

 

 

 

- 7 -

GLATFELTER

06.30.17 Form 10-Q


 

4.

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and six months ended June 30, 2017 and 2016.

In thousands

Currency translation adjustments

 

 

Unrealized gain (loss) on cash flow hedges

 

 

Change in pensions

 

 

Change in other postretirement defined benefit plans

 

 

Total

 

Balance at April 1, 2017

$

(94,383

)

 

$

554

 

 

$

(108,466

)

 

$

4,882

 

 

$

(197,413

)

Other comprehensive income

   before reclassifications  (net of tax)

 

27,504

 

 

 

(3,080

)

 

 

 

 

 

(106

)

 

 

24,318

 

Amounts reclassified from accumulated

   other comprehensive income  (net of tax)

 

 

 

 

(571

)

 

 

2,642

 

 

 

(57

)

 

 

2,014

 

Net current period other comprehensive

   income (loss)

 

27,504

 

 

 

(3,651

)

 

 

2,642

 

 

 

(163

)

 

 

26,332

 

Balance at June 30, 2017

$

(66,879

)

 

$

(3,097

)

 

$

(105,824

)

 

$

4,719

 

 

$

(171,081

)

Balance at April 1, 2016

$

(59,622

)

 

$

(159

)

 

$

(118,399

)

 

$

3,436

 

 

$

(174,744

)

Other comprehensive income

   before reclassifications  (net of tax)

 

(14,864

)

 

 

837

 

 

 

 

 

 

 

 

 

(14,027

)

Amounts reclassified from accumulated

   other comprehensive income  (net of tax)

 

 

 

 

107

 

 

 

2,613

 

 

 

(232

)

 

 

2,488

 

Net current period other comprehensive

   income (loss)

 

(14,864

)

 

 

944

 

 

 

2,613

 

 

 

(232

)

 

 

(11,539

)

Balance at June 30, 2016

$

(74,486

)

 

$

785

 

 

$

(115,786

)

 

$

3,204

 

 

$

(186,283

)

 

 

In thousands

Currency translation adjustments

 

 

Unrealized gain (loss) on cash flow hedges

 

 

Change in pensions

 

 

Change in other postretirement defined benefit plans

 

 

Total

 

Balance at January 1, 2017

$

(100,448

)

 

$

1,500

 

 

$

(110,656

)

 

$

4,998

 

 

$

(204,606

)

Other comprehensive income

   before reclassifications  (net of tax)

 

33,569

 

 

 

(3,335

)

 

 

 

 

 

(106

)

 

 

30,128

 

Amounts reclassified from accumulated

   other comprehensive income  (net of tax)

 

 

 

 

(1,262

)

 

 

4,832

 

 

 

(173

)

 

 

3,397

 

Net current period other comprehensive

   income (loss)

 

33,569

 

 

 

(4,597

)

 

 

4,832

 

 

 

(279

)

 

 

33,525

 

Balance at June 30, 2017

$

(66,879

)

 

$

(3,097

)

 

$

(105,824

)

 

$

4,719

 

 

$

(171,081

)

Balance at January 1, 2016

$

(73,041

)

 

$

(225

)

 

$

(120,714

)

 

$

3,494

 

 

$

(190,486

)

Other comprehensive income

   before reclassifications  (net of tax)

 

(1,445

)

 

 

1,089

 

 

 

 

 

 

 

 

 

(356

)

Amounts reclassified from accumulated

   other comprehensive income  (net of tax)

 

 

 

 

(79

)

 

 

4,928

 

 

 

(290

)

 

 

4,559

 

Net current period other comprehensive

   income (loss)

 

(1,445

)

 

 

1,010

 

 

 

4,928

 

 

 

(290

)

 

 

4,203

 

Balance at June 30, 2016

$

(74,486

)

 

$

785

 

 

$

(115,786

)

 

$

3,204

 

 

$

(186,283

)

- 8 -

GLATFELTER

06.30.17 Form 10-Q


 

Reclassifications out of accumulated other comprehensive income were as follows:

 

 

 

Three months ended June 30

 

 

Six months ended

June 30

 

 

 

In thousands

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

Description

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line Item in Statements of Income

Cash flow hedges (Note 11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on cash flow hedges

 

$

(785

)

 

$

215

 

 

$

(1,716

)

 

$

(83

)

 

Costs of products sold

Tax expense (benefit)

 

 

214

 

 

 

(108

)

 

 

454

 

 

 

4

 

 

Income tax provision (benefit)

Net of tax

 

 

(571

)

 

 

107

 

 

 

(1,262

)

 

 

(79

)

 

 

Retirement plan obligations (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred benefit pension plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service costs

 

 

532

 

 

 

509

 

 

 

1,060

 

 

 

1,013

 

 

Costs of products sold

 

 

 

176

 

 

 

166

 

 

 

352

 

 

 

336

 

 

Selling, general and administrative

Actuarial losses

 

 

2,463

 

 

 

2,618

 

 

 

4,562

 

 

 

4,900

 

 

Costs of products sold

 

 

 

848

 

 

 

915

 

 

 

1,571

 

 

 

1,687

 

 

Selling, general and administrative

 

 

 

4,019

 

 

 

4,208

 

 

 

7,545

 

 

 

7,936

 

 

 

Tax benefit

 

 

(1,377

)

 

 

(1,595

)

 

 

(2,713

)

 

 

(3,008

)

 

Income tax provision (benefit)

Net of tax

 

 

2,642

 

 

 

2,613

 

 

 

4,832

 

 

 

4,928

 

 

 

Amortization of deferred benefit other plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service costs

 

 

(38

)

 

 

(38

)

 

 

(75

)

 

 

(75

)

 

Costs of products sold

 

 

 

(8

)

 

 

(8

)

 

 

(16

)

 

 

(16

)

 

Selling, general and administrative

Actuarial losses

 

 

(38

)

 

 

(269

)

 

 

(156

)

 

 

(311

)

 

Costs of products sold

 

 

 

(8

)

 

 

(58

)

 

 

(33

)

 

 

(67

)

 

Selling, general and administrative

 

 

 

(92

)

 

 

(373

)

 

 

(280

)

 

 

(469

)

 

 

Tax expense

 

 

35

 

 

 

141

 

 

 

107

 

 

 

179

 

 

Income tax provision (benefit)

Net of tax

 

 

(57

)

 

 

(232

)

 

 

(173

)

 

 

(290

)