<SEC-DOCUMENT>0001193125-14-014114.txt : 20140226
<SEC-HEADER>0001193125-14-014114.hdr.sgml : 20140226
<ACCEPTANCE-DATETIME>20140117110958
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-14-014114
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140117

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GLATFELTER P H CO
		CENTRAL INDEX KEY:			0000041719
		STANDARD INDUSTRIAL CLASSIFICATION:	PAPER MILLS [2621]
		IRS NUMBER:				230628360
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		96 S GEORGE ST
		STREET 2:		STE 500
		CITY:			YORK
		STATE:			PA
		ZIP:			17401
		BUSINESS PHONE:		7172252709

	MAIL ADDRESS:	
		STREET 1:		96 S GEORGE ST
		STREET 2:		STE 500
		CITY:			YORK
		STATE:			PA
		ZIP:			17401
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">January&nbsp;17, 2014 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Anne Nguyen Parker </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Branch Chief </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of
Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">P. H. Glatfelter Company </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Form 10-K for Fiscal Year Ended December&nbsp;31, 2012 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Filed March&nbsp;8, 2013 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Definitive Proxy Statement on Schedule 14A </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Filed April&nbsp;3, 2013 <U> </U></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>File
No.&nbsp;1-03560&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Parker:
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On behalf of P. H. Glatfelter Company (hereafter &#147;Glatfelter&#148; or the &#147;Company&#148;), I write to respond to the Staff&#146;s comment
letter dated December&nbsp;31, 2013 regarding the above-captioned Form 10-K (the &#147;Form 10-K&#148;) for the fiscal year ended December&nbsp;31, 2012, filed on March&nbsp;8, 2013 and Proxy Statement on Schedule 14A (the &#147;Proxy
Statement&#148;) filed on April&nbsp;3, 2013. For your convenience, each of the Staff&#146;s comments has been reproduced, followed by the Company&#146;s response to such comment. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K for Fiscal Year Ended December&nbsp;31, 2012 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Management&#146;s Discussion and Analysis of Financial Condition and </U></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Results of Operations, page 14 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Liquidity and Capital
Resources, page 22 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">In Note 7 of the financial statements you disclose that unremitted earnings of foreign subsidiaries deemed permanently reinvested totaled $236.3 million as of year-end. Please tell us and disclose if material the amount
of any cash held by these foreign subsidiaries that would not be available for use domestically because the related earnings are deemed permanently reinvested. </TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>RESPONSE: </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In our 2012
Form 10-K, Item&nbsp;7 under the caption &#147;<I>Liquidity and Capital Resources</I>&#148; we disclosed &#147;(a)t the end of the 2012, we had $97.7 million in cash and cash equivalents&#148;. Of the total cash and cash equivalents $49.6 million
was held by foreign subsidiaries, all of which would be available for use domestically, notwithstanding the fact that unremitted earnings are deemed to be permanently reinvested. This is due to the existence of intercompany financing arrangements
</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Anne Nguyen Parker </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January 17,
2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 2
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
under which the foreign subsidiaries have outstanding borrowings owed to a domestic subsidiary of P. H. Glatfelter, the amount of which is significantly in excess of the cash held by foreign
subsidiaries. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In our 2013 Form 10-K, we will modify our Liquidity and Capital Resource disclosure to include appropriate discussion as to
whether or not such cash and cash equivalents would be available for use domestically, and if the amount not available is material, we will disclose such amount. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top">We note disclosure under this heading and in Note 15 of the financial statements indicating that (i)&nbsp;your credit facility contains a number of covenants, (ii)&nbsp;your 5.375% Notes contain cross default
provisions, and (iii)&nbsp;a breach of the covenants could result in acceleration of amounts owed. Although we understand that you were in compliance with debt covenants as of December&nbsp;31, 2012, it is not clear whether it is reasonably possible
that you will not meet covenant requirements in the future. For instance, on slide 28 of your November 2013 Investor Meetings presentation on your website, you indicate that your leverage ratio increased from 0.9x to 2.2x during 2013, but do not
indicate whether this increase is significant to your compliance. Please disclose information that would give financial statement users insight into, and an understanding of, your compliance with debt covenants. Please refer to Item&nbsp;303(a) of
Regulation S-K, the Instructions to Paragraph 303(a) and FR-72 for guidance. If non-compliance with covenants is reasonably possible, please revise your disclosure consistent with the guidance in FR-72, Section IV (C): Debt Instruments, Guarantees
and Related Covenants. </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>RESPONSE: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Our Amended Credit Agreement, dated November&nbsp;21, 2011 requires us to maintain a maximum ratio of consolidated total net debt to
consolidated adjusted EBITDA (&#147;leverage ratio&#148;), a minimum ratio of consolidated EBITDA to consolidated interest expense, and beginning December&nbsp;31, 2015, a minimum liquidity ratio. We believe the leverage ratio to be the debt
covenant which is most material to users of our financial statements as it is the covenant which is most likely to impact our ability to undertake future financings. As of December&nbsp;31, 2012 and throughout 2013, we remained in full compliance
with the required ratios. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In our 2013 <FONT STYLE="white-space:nowrap">Form&nbsp;10-K,</FONT> we will modify our Liquidity and Capital
Resource disclosure to provide additional information that would give financial statement users insight into, and an understanding of, our compliance with debt covenants. Specifically, this modified disclosure will set forth the specific maximum
leverage ratio together with the actual ratio as of the reporting date. Further, where any of these debt covenants are reasonably likely to impact our operations or limit our ability to undertake necessary financing to a material extent, we will
provide additional relevant information to provide the reader with an understanding of the consequences of the covenants&#146; limitations and our compliance therewith. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Anne Nguyen Parker </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">January&nbsp;17, 2014 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 3
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Definitive Proxy Statement on Schedule 14A </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Executive Compensation, page 27 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Long-Term Incentives, page 33 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top">You disclose that your long-term incentive program is based on pre-established performance criteria measured by EBITDA and Return on Capital Employed. However, you have not disclosed what your targeted EBITDA and Return
on Capital Employed performance levels were for 2012, nor your actual achievement relative to this performance measure. Corporate performance targets should be disclosed. See Item&nbsp;402(b)(2)(v) of Regulation S-K. We remind you of comment three
from our letter dated June&nbsp;22, 2010 and your response dated July&nbsp;7, 2010. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>RESPONSE:</B> Beginning in 2011, the
Company has made annual long-term incentive awards, each with a separate cumulative three-year performance period. The performance targets are established at the time of the award based on the strategic financial plan adopted by the Company at that
time. The performance period for the awards made in 2011 ended on December&nbsp;31, 2013. Accordingly, the Company did not provide disclosure in its 2013 Proxy Statement of the targets for EBITDA and return on capital employed because the targets
represent confidential financial information, the performance period had not yet ended and we did not believe disclosure of targets for future payouts would affect a fair understanding of the named executive officers&#146; compensation for 2012.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As we did in our 2011 Proxy Statement with respect to the performance period that ended December&nbsp;31, 2010, in our 2014 Proxy
Statement and all thereafter, we will provide quantitative disclosure of the specific targeted financial metrics and actual performance for any long-term incentive award for which the performance period has ended. We anticipate our disclosure will
be consistent with the disclosure in our 2011 Proxy Statement for the LTIP payouts for the 2010 period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company hereby acknowledges that: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">it is responsible for the adequacy and accuracy of the disclosure in the filings; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filings; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please direct any questions or comments to either me at (717)&nbsp;225-2794 or Kent Matsumoto, Vice President, General Counsel&nbsp;&amp; Corporate Secretary
at (717)&nbsp;225-2071. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="93%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">Sincerely,</TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">/s/ John P. Jacunski</TD></TR>
<TR>
<TD HEIGHT="8" COLSPAN="3"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">John P. Jacunski</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">Senior Vice President and Chief Financial Officer</TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">cc:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top">Dante C. Parrini</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top">Kent K. Matsumoto</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="top">Glenn Davies</TD></TR>
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