Supplemental Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Statement of Operations

Clearwater Paper Corporation

Condensed Consolidating Statement of Operations

Twelve Months Ended December 31, 2011


(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net sales	$	1,403,865		$	460,689		$	63,419		$	—		$	1,927,973
Cost of sales		(1,198,955	)		(444,232	)		(59,343	)		—			(1,702,530	)
Selling, general and administrative expenses		(89,019	)		(17,913	)		(3,066	)		—			(109,998	)

Total operating costs and expenses		(1,287,974	)		(462,145	)		(62,409	)		—			(1,812,528	)

Income (loss) from operations		115,891			(1,456	)		1,010			—			115,445
Interest expense, net		(44,187	)		(92	)		(530	)		—			(44,809	)
Other, net		—			—			284			—			284

Earnings (loss) before income taxes		71,704			(1,548	)		764			—			70,920
Income tax (provision) benefit		(34,018	)		3,525			1,297			(2,050	)		(31,246	)
Equity in income (loss) of subsidiary		4,038			2,061			—			(6,099	)		—

Net earnings (loss)	$	41,724		$	4,038		$	2,061		$	(8,149	)	$	39,674

Condensed Consolidating Balance Sheet

Clearwater Paper Corporation

Condensed Consolidating Balance Sheet

At December 31, 2011


(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash	$	2,146		$	901 $		$	5,392	$	—		$	8,439
Restricted cash		769			—			—		—			769
Short-term investments		55,001			—			—		—			55,001
Receivables, net		100,600			66,580			9,009		—			176,189
Taxes receivable		8,957			709			334		—			10,000
Inventories		175,446			62,234			6,391		—			244,071
Deferred tax assets		27,801			2,950			194		8,521			39,466
Prepaid expenses		9,756			1,437			203		—			11,396

Total current assets		380,476			134,811			21,523		8,521			545,331
Property, plant and equipment, net		468,372			217,235			49,959		—			735,566
Goodwill		229,533			—			—		—			229,533
Intangible assets, net		—			42,873			6,875		—			49,748
Intercompany receivable (payable)		120,061			(155,395	)		35,334		—			—
Investment in subsidiary		249,142			89,718			—		(338,860	)		—
Other assets, net		10,815			325			—		—			11,140

TOTAL ASSETS	$	1,458,399		$	329,567		$	113,691	$	(330,339	)	$	1,571,318

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	109,549		$	28,838		$	6,244	$	$			144,631
Current liability for pensions and other postretirement employee benefits		9,861			—			—		—			9,861

Total current liabilities		119,410			28,838			6,244		—			154,492
Long-term debt		523,694			—			—		—			523,694
Liability for pensions and other postretirement employee benefits		215,932			—			—		—			215,932
Other long-term obligations		48,009			465			—		—			48,474
Accrued taxes		73,594			—			870		—			74,464
Deferred tax liabilities		(7,144	)		51,122			16,859		8,521			69,358
Accumulated other comprehensive loss, net of tax		(115,265	)		—			—		—			(115,265	)
Stockholders’ equity excluding accumulated other comprehensive loss		600,169			249,142			89,718		(338,860	)		600,169

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,458,399		$	329,567		$	113,691	$	(330,339	)	$	1,571,318

In the Condensed Consolidating Balance Sheet at December 31, 2011, all goodwill has been included in the Issuer column as such goodwill is carried at the Consumer Products segment level.

Clearwater Paper Corporation

Condensed Consolidating Balance Sheet

At December 31, 2010


(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash	$	15,719		$	1,728		$	1,481	$	—		$	18,928
Restricted cash		—			3,637			—		—			3,637
Short-term investments		126,095			—			—		—			126,095
Receivables, net		104,342			42,114			7,597		(718	)		153,335
Taxes receivable		7,589			2,648			117		—			10,354
Inventories		172,098			46,631			9,592		—			228,321
Deferred tax assets		33,764			3,118			492		—			37,374
Prepaid expenses		8,773			2,191			451		—			11,415

Total current assets		468,380			102,067			19,730		(718	)		589,459
Property, plant and equipment, net		377,957			222,446			54,053		—			654,456
Goodwill		—			181,197			48,336		—			229,533
Intangible assets, net		—			48,523			7,877		—			56,400
Intercompany receivable (payable)		306,262			(306,262	)		—		—			—
Investment in subsidiary		242,948			87,657			—		(330,605	)		—
Other assets, net		13,987			440			1,061		—			15,488

TOTAL ASSETS	$	1,409,534		$	336,068		$	131,057	$	(331,323	)	$	1,545,336

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	126,062		$	46,572		$	12,688	$	(718	)	$	184,604
Current portion of long-term debt		—			—			760		—			760
Current liability for pensions and other postretirement employee benefits		9,749			—			—		—			9,749

Total current liabilities		135,811			46,572			13,448		(718	)		195,113
Long-term debt, net of current portion		523,479			—			14,835		—			538,314
Liability for pensions and other postretirement employee benefits		187,116			—			—		—			187,116
Other long-term obligations		22,638			731			—		—			23,369
Accrued taxes		72,011			—			—		—			72,011
Deferred tax liabilities		130			45,817			15,117		—			61,064
Accumulated other comprehensive loss, net of tax		(98,352	)		—			—		—			(98,352	)
Stockholders’ equity excluding accumulated other comprehensive loss		566,701			242,948			87,657		(330,605	)		566,701

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,409,534		$	336,068		$	131,057	$	(331,323	)	$	1,545,336

Condensed Consolidating Statement of Cash Flows

Clearwater Paper Corporation

Condensed Consolidating Statement of Cash Flows

Twelve months Ended December 31, 2011


(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	$	41,724		$	4,038		$	2,061		$	(8,149	)	$	39,674
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		45,439			25,956			5,538			—			76,933
Deferred tax expense		7,264			5,473			2,040			—			14,777
Equity-based compensation expense		8,134			—			—			—			8,134
Employee benefit plans		16,897			—			—			—			16,897
Change in working capital, net		(133,142	)		23,959			23,171			—			(86,012	)
Change in taxes receivable, net		(1,368	)		1,939			(217	)		—			354
Excess tax benefits from equity-based payment arrangements		(885	)		—			—			—			(885	)
Change in non-current accrued taxes		2,453			—			—			—			2,453
Funding of qualified pension plans		(12,498	)		—			—			—			(12,498	)
Change in restricted cash, net		4,160			—			—			—			4,160
Other, net		3,734			672			2			—			4,408

Net cash (used in) provided by operating activities		(18,088	)		62,037			32,595			(8,149	)		68,395

CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net		71,094			—			—			—			71,094
Additions to plant and equipment		(117,525	)		(15,654	)		(890	)		—			(134,069	)
Proceeds from sale of assets		12,826			—			—			—			12,826

Net cash used for investing activities		(33,605	)		(15,654	)		(890	)		—			(50,149	)

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Cellu Tissue debt		—			—			(15,595	)		—			(15,595	)
Deferred loan fees		(638	)		—			—			—			(638	)
Purchase of treasury stock		(11,350	)		—			—			—			(11,350	)
Excess tax benefits from equity-based payment arrangements		885			—			—			—			885
Payment of employee restricted stock tax withholdings		(2,400	)		—			—			—			(2,400	)
Investment from (to) Parent		51,621			(47,210	)		(12,560	)		8,149			—
Other, net		2			—			—			—			2

Net cash provided by (used for) financing activities		38,120			(47,210	)		(28,155	)		8,149			(29,096	)

Effect of exchange rate changes		—			—			361			—			361

(Decrease) increase in cash		(13,573	)		(827	)		3,911			—			(10,489	)
Cash at beginning of period		15,719			1,728			1,481			—			18,928

Cash at end of period	$	2,146		$	901		$	5,392		$	—		$	8,439