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Condensed Consolidating Financial Statements | 3 Months Ended
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Mar. 31, 2018
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] |
Condensed Consolidating Financial Statements |
17. | 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 Advance 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; or (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 our condensed consolidating statements of income, including comprehensive income, for the three months ended March 31, 2018 and 2017, our condensed consolidating balance sheets as of March 31, 2018 and December 31, 2017, and our condensed consolidating cash flows for the three months ended March 31, 2018 and 2017. Condensed Consolidating Statement of Income for the three months ended March 31, 2018
In thousands | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |  |
Net sales | $ | 199,439 |  |  | $ | 20,013 |  |  | $ | 216,135 |  |  | $ | (24,940 | ) |  | $ | 410,647 |  |
Energy and related sales, net |  | 1,428 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,428 |  |
Total revenues |  | 200,867 |  |  |  | 20,013 |  |  |  | 216,135 |  |  |  | (24,940 | ) |  |  | 412,075 |  |
Costs of products sold |  | 191,165 |  |  |  | 18,265 |  |  |  | 178,679 |  |  |  | (24,940 | ) |  |  | 363,169 |  |
Gross profit |  | 9,702 |  |  |  | 1,748 |  |  |  | 37,456 |  |  |  | — |  |  |  | 48,906 |  |
Selling, general and administrative |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
expenses |  | 20,437 |  |  |  | 2,005 |  |  |  | 14,621 |  |  |  | — |  |  |  | 37,063 |  |
Gain on dispositions of plant |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
equipment and timberlands, net |  | (438 | ) |  |  | (1,115 | ) |  |  | (1 | ) |  |  | — |  |  |  | (1,554 | ) |
Operating income (loss) |  | (10,297 | ) |  |  | 858 |  |  |  | 22,836 |  |  |  | — |  |  |  | 13,397 |  |
Other non-operating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (5,682 | ) |  |  | (455 | ) |  |  | (428 | ) |  |  | 1,370 |  |  |  | (5,195 | ) |
Interest income |  | 146 |  |  |  | 1,244 |  |  |  | 34 |  |  |  | (1,370 | ) |  |  | 54 |  |
Equity in earnings of subsidiaries |  | 21,233 |  |  |  | 22,255 |  |  |  | — |  |  |  | (43,488 | ) |  |  | — |  |
Other, net |  | (2,413 | ) |  |  | (3,263 | ) |  |  | 5,905 |  |  |  | — |  |  |  | 229 |  |
Total other non-operating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income (expense) |  | 13,284 |  |  |  | 19,781 |  |  |  | 5,511 |  |  |  | (43,488 | ) |  |  | (4,912 | ) |
Income before income taxes |  | 2,987 |  |  |  | 20,639 |  |  |  | 28,347 |  |  |  | (43,488 | ) |  |  | 8,485 |  |
Income tax provision (benefit) |  | (2,729 | ) |  |  | (594 | ) |  |  | 6,092 |  |  |  | — |  |  |  | 2,769 |  |
Net income |  | 5,716 |  |  |  | 21,233 |  |  |  | 22,255 |  |  |  | (43,488 | ) |  |  | 5,716 |  |
Other comprehensive income |  | 14,020 |  |  |  | 11,036 |  |  |  | 12,035 |  |  |  | (23,071 | ) |  |  | 14,020 |  |
Comprehensive income | $ | 19,736 |  |  | $ | 32,269 |  |  | $ | 34,290 |  |  | $ | (66,559 | ) |  | $ | 19,736 |  |
Condensed Consolidating Statement of Income for the three months ended March 31, 2017
In thousands | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |  |
Net sales | $ | 205,771 |  |  | $ | 19,533 |  |  | $ | 185,887 |  |  | $ | (20,478 | ) |  | $ | 390,713 |  |
Energy and related sales, net |  | 1,129 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,129 |  |
Total revenues |  | 206,900 |  |  |  | 19,533 |  |  |  | 185,887 |  |  |  | (20,478 | ) |  |  | 391,842 |  |
Costs of products sold |  | 185,246 |  |  |  | 18,586 |  |  |  | 152,859 |  |  |  | (20,478 | ) |  |  | 336,213 |  |
Gross profit |  | 21,654 |  |  |  | 947 |  |  |  | 33,028 |  |  |  | — |  |  |  | 55,629 |  |
Selling, general and administrative |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
expenses |  | 20,162 |  |  |  | 74 |  |  |  | 14,641 |  |  |  | — |  |  |  | 34,877 |  |
Loss on dispositions of plant |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
equipment and timberlands, net |  | 32 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32 |  |
Operating income |  | 1,460 |  |  |  | 873 |  |  |  | 18,387 |  |  |  | — |  |  |  | 20,720 |  |
Other non-operating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (4,661 | ) |  |  | (113 | ) |  |  | (504 | ) |  |  | 1,270 |  |  |  | (4,008 | ) |
Interest income |  | 149 |  |  |  | 1,161 |  |  |  | 73 |  |  |  | (1,270 | ) |  |  | 113 |  |
Equity in earnings of subsidiaries |  | 13,617 |  |  |  | 13,852 |  |  |  | — |  |  |  | (27,469 | ) |  |  | — |  |
Other, net |  | 1,584 |  |  |  | (2,206 | ) |  |  | 1,434 |  |  |  | — |  |  |  | 812 |  |
Total other non-operating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income (expense) |  | 10,689 |  |  |  | 12,694 |  |  |  | 1,003 |  |  |  | (27,469 | ) |  |  | (3,083 | ) |
Income before income taxes |  | 12,149 |  |  |  | 13,567 |  |  |  | 19,390 |  |  |  | (27,469 | ) |  |  | 17,637 |  |
Income tax provision (benefit) |  | 546 |  |  |  | (50 | ) |  |  | 5,538 |  |  |  | — |  |  |  | 6,034 |  |
Net income |  | 11,603 |  |  |  | 13,617 |  |  |  | 13,852 |  |  |  | (27,469 | ) |  |  | 11,603 |  |
Other comprehensive income |  | 7,193 |  |  |  | 5,102 |  |  |  | 5,014 |  |  |  | (10,116 | ) |  |  | 7,193 |  |
Comprehensive income | $ | 18,796 |  |  | $ | 18,719 |  |  | $ | 18,866 |  |  | $ | (37,585 | ) |  | $ | 18,796 |  |
Condensed Consolidating Balance Sheet as of March 31, 2018
In thousands |  | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,022 |  |  | $ | 1,266 |  |  | $ | 114,989 |  |  | $ | - |  |  | $ | 117,277 |
Other current assets |  |  | 250,524 |  |  |  | 237,841 |  |  |  | 296,093 |  |  |  | (293,035 | ) |  |  | 491,423 |
Plant, equipment and timberlands, net |  |  | 370,669 |  |  |  | 87,000 |  |  |  | 413,065 |  |  |  | — |  |  |  | 870,734 |
Investments in subsidiaries |  |  | 842,154 |  |  |  | 667,419 |  |  |  | — |  |  |  | (1,509,573 | ) |  |  | — |
Other assets |  |  | 142,088 |  |  |  | — |  |  |  | 143,090 |  |  |  | — |  |  |  | 285,178 |
Total assets |  | $ | 1,606,457 |  |  | $ | 993,526 |  |  | $ | 967,237 |  |  | $ | (1,802,608 | ) |  | $ | 1,764,612 |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  | $ | 398,152 |  |  | $ | 67,660 |  |  | $ | 165,919 |  |  | $ | (293,035 | ) |  | $ | 338,696 |
Long-term debt |  |  | 371,036 |  |  |  | 65,000 |  |  |  | 58,095 |  |  |  | — |  |  |  | 494,131 |
Deferred income taxes |  |  | 12,049 |  |  |  | 18,209 |  |  |  | 54,767 |  |  |  | — |  |  |  | 85,025 |
Other long-term liabilities |  |  | 101,228 |  |  |  | 503 |  |  |  | 21,037 |  |  |  | — |  |  |  | 122,768 |
Total liabilities |  |  | 882,465 |  |  |  | 151,372 |  |  |  | 299,818 |  |  |  | (293,035 | ) |  |  | 1,040,620 |
Shareholders’ equity |  |  | 723,992 |  |  |  | 842,154 |  |  |  | 667,419 |  |  |  | (1,509,573 | ) |  |  | 723,992 |
Total liabilities and shareholders’ equity |  | $ | 1,606,457 |  |  | $ | 993,526 |  |  | $ | 967,237 |  |  | $ | (1,802,608 | ) |  | $ | 1,764,612 |
Condensed Consolidating Balance Sheet as of December 31, 2017
In thousands |  | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,292 |  |  | $ | 720 |  |  | $ | 114,207 |  |  | $ | - |  |  | $ | 116,219 |
Other current assets |  |  | 249,293 |  |  |  | 217,822 |  |  |  | 279,626 |  |  |  | (277,989 | ) |  |  | 468,752 |
Plant, equipment and timberlands, net |  |  | 375,231 |  |  |  | 80,992 |  |  |  | 409,520 |  |  |  | — |  |  |  | 865,743 |
Investments in subsidiaries |  |  | 829,895 |  |  |  | 653,128 |  |  |  | — |  |  |  | (1,483,023 | ) |  |  | — |
Other assets |  |  | 139,552 |  |  |  | — |  |  |  | 140,529 |  |  |  | — |  |  |  | 280,081 |
Total assets |  | $ | 1,595,263 |  |  | $ | 952,662 |  |  | $ | 943,882 |  |  | $ | (1,761,012 | ) |  | $ | 1,730,795 |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  | $ | 402,787 |  |  | $ | 54,640 |  |  | $ | 167,738 |  |  | $ | (277,989 | ) |  | $ | 347,176 |
Long-term debt |  |  | 368,496 |  |  |  | 51,000 |  |  |  | 50,602 |  |  |  | — |  |  |  | 470,098 |
Deferred income taxes |  |  | 14,081 |  |  |  | 16,814 |  |  |  | 52,676 |  |  |  | — |  |  |  | 83,571 |
Other long-term liabilities |  |  | 100,971 |  |  |  | 313 |  |  |  | 19,738 |  |  |  | — |  |  |  | 121,022 |
Total liabilities |  |  | 886,335 |  |  |  | 122,767 |  |  |  | 290,754 |  |  |  | (277,989 | ) |  |  | 1,021,867 |
Shareholders’ equity |  |  | 708,928 |  |  |  | 829,895 |  |  |  | 653,128 |  |  |  | (1,483,023 | ) |  |  | 708,928 |
Total liabilities and shareholders’ equity |  | $ | 1,595,263 |  |  | $ | 952,662 |  |  | $ | 943,882 |  |  | $ | (1,761,012 | ) |  | $ | 1,730,795 |
Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2018
In thousands |  | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |  |
Net cash provided (used) by |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating activities |  | $ | (10,584 | ) |  | $ | (980 | ) |  | $ | 19,223 |  |  | $ | - |  |  | $ | 7,659 |  |
Investing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenditures for purchases of plant, equipment and timberlands |  |  | (8,251 | ) |  |  | (11,320 | ) |  |  | (6,997 | ) |  |  | — |  |  |  | (26,568 | ) |
Proceeds from disposals of plant, equipment and timberlands, net |  |  | 539 |  |  |  | 1,156 |  |  |  | — |  |  |  | — |  |  |  | 1,695 |  |
Advances of intercompany loans |  |  | — |  |  |  | (2,310 | ) |  |  | — |  |  |  | 2,310 |  |  |  | — |  |
Intercompany capital contributed |  |  | — |  |  |  | 20,000 |  |  |  | (20,000 | ) |  |  | — |  |  |  | — |  |
Other |  |  | (28 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (28 | ) |
Total investing activities |  |  | (7,740 | ) |  |  | 7,526 |  |  |  | (26,997 | ) |  |  | 2,310 |  |  |  | (24,901 | ) |
Financing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (repayments) borrowings of long-term debt |  |  | 2,388 |  |  |  | 14,000 |  |  |  | 6,098 |  |  |  | — |  |  |  | 22,486 |  |
Payment of dividends to shareholders |  |  | (5,679 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,679 | ) |
Borrowings of intercompany loans |  |  | 2,310 |  |  |  | — |  |  |  | — |  |  |  | (2,310 | ) |  |  | — |  |
Payment of intercompany dividend |  |  | 20,000 |  |  |  | (20,000 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
Payments related to share-based compensation awards and other |  |  | (965 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (965 | ) |
Total financing activities |  |  | 18,054 |  |  |  | (6,000 | ) |  |  | 6,098 |  |  |  | (2,310 | ) |  |  | 15,842 |  |
Effect of exchange rate on cash |  |  | — |  |  |  | — |  |  |  | 2,458 |  |  |  | — |  |  |  | 2,458 |  |
Net increase (decrease) in cash |  |  | (270 | ) |  |  | 546 |  |  |  | 782 |  |  |  | — |  |  |  | 1,058 |  |
Cash at the beginning of period |  |  | 1,292 |  |  |  | 720 |  |  |  | 114,207 |  |  |  | — |  |  |  | 116,219 |  |
Cash at the end of period |  | $ | 1,022 |  |  | $ | 1,266 |  |  | $ | 114,989 |  |  | $ | — |  |  | $ | 117,277 |  |
Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2017
In thousands |  | Parent Company |  |  | Guarantors |  |  | Non Guarantors |  |  | Adjustments/ Eliminations |  |  | Consolidated |  |
Net cash provided (used) by |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating activities |  | $ | (19,330 | ) |  | $ | (307 | ) |  | $ | 27,839 |  |  | $ | (641 | ) |  | $ | 7,561 |  |
Investing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenditures for purchases of plant, equipment and timberlands |  |  | (21,515 | ) |  |  | (9,551 | ) |  |  | (5,717 | ) |  |  | — |  |  |  | (36,783 | ) |
Repayments from intercompany loans |  |  | — |  |  |  | 8,000 |  |  |  | — |  |  |  | (8,000 | ) |  |  | — |  |
Advances of intercompany loans |  |  | — |  |  |  | (8,550 | ) |  |  | — |  |  |  | 8,550 |  |  |  | — |  |
Intercompany capital contributed |  |  | — |  |  |  | (400 | ) |  |  | — |  |  |  | 400 |  |  |  | — |  |
Total investing activities |  |  | (21,515 | ) |  |  | (10,501 | ) |  |  | (5,717 | ) |  |  | 950 |  |  |  | (36,783 | ) |
Financing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (repayments) borrowings of long-term debt |  |  | 38,000 |  |  |  | 12,000 |  |  |  | (13,954 | ) |  |  | — |  |  |  | 36,046 |  |
Payment of dividends to shareholders |  |  | (5,455 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,455 | ) |
Repayments of intercompany loans |  |  | — |  |  |  | — |  |  |  | (8,000 | ) |  |  | 8,000 |  |  |  | — |  |
Borrowings of intercompany loans |  |  | 8,550 |  |  |  | — |  |  |  | — |  |  |  | (8,550 | ) |  |  | — |  |
Intercompany capital received |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | (400 | ) |  |  | — |  |
Payment of intercompany dividend |  |  | — |  |  |  | — |  |  |  | (641 | ) |  |  | 641 |  |  |  | — |  |
Payments related to share-based compensation awards and other |  |  | (112 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (112 | ) |
Total financing activities |  |  | 40,983 |  |  |  | 12,000 |  |  |  | (22,195 | ) |  |  | (309 | ) |  |  | 30,479 |  |
Effect of exchange rate on cash |  |  | — |  |  |  | — |  |  |  | 526 |  |  |  | — |  |  |  | 526 |  |
Net increase in cash |  |  | 138 |  |  |  | 1,192 |  |  |  | 453 |  |  |  | — |  |  |  | 1,783 |  |
Cash at the beginning of period |  |  | 5,082 |  |  |  | 1,461 |  |  |  | 48,901 |  |  |  | — |  |  |  | 55,444 |  |
Cash at the end of period |  | $ | 5,220 |  |  | $ | 2,653 |  |  | $ | 49,354 |  |  | $ | — |  |  | $ | 57,227 |  |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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