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Supplemental Guarantor Financial Information | 6 Months Ended
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Jun. 30, 2019
Condensed Financial Information Disclosure [Abstract] |
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information All of our subsidiaries that are 100% directly or indirectly owned by Clearwater Paper, guarantee our $275 million aggregate principal amount of 4.5% senior notes issued in January 2013 and due 2023, which we refer to as the 2013 Notes, on a full and unconditional, and joint and several basis. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor subsidiaries, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis. Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2019
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
Net sales | $ | 421,457 |  |  | $ | 67,685 |  |  | $ | (37,149 | ) |  | $ | 451,993 |
Costs and expenses: |  |  |  |  |  |  |
Cost of sales | (385,788 | ) |  | (61,325 | ) |  | 37,288 |  |  | (409,825 | )
Selling, general and administrative expenses | (21,078 | ) |  | (5,749 | ) |  | — |  |  | (26,827 | )
Total operating costs and expenses | (406,866 | ) |  | (67,074 | ) |  | 37,288 |  |  | (436,652 | )
Income from operations | 14,591 |  |  | 611 |  |  | 139 |  |  | 15,341 |
Interest expense, net | (10,877 | ) |  | (37 | ) |  | — |  |  | (10,914 | )
Non-operating pension and other postretirement benefit costs | (1,531 | ) |  | — |  |  | — |  |  | (1,531 | )
Earnings before income taxes | 2,183 |  |  | 574 |  |  | 139 |  |  | 2,896 |
Income tax (provision) benefit | (1,969 | ) |  | 428 |  |  | (1,779 | ) |  | (3,320 | )
Equity in income of subsidiary | 1,002 |  |  | — |  |  | (1,002 | ) |  | — |
Net earnings (loss) | $ | 1,216 |  |  | $ | 1,002 |  |  | $ | (2,642 | ) |  | $ | (424 | )
Other comprehensive income, net of tax | 1,334 |  |  | — |  |  | — |  |  | 1,334 |
Comprehensive income | $ | 2,550 |  |  | $ | 1,002 |  |  | $ | (2,642 | ) |  | $ | 910 |
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2019
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
Net sales | $ | 833,852 |  |  | $ | 135,225 |  |  | $ | (88,305 | ) |  | $ | 880,772 |
Costs and expenses: |  |  |  |  |  |  |
Cost of sales | (758,040 | ) |  | (121,501 | ) |  | 85,470 |  |  | (794,071 | )
Selling, general and administrative expenses | (47,323 | ) |  | (9,675 | ) |  | — |  |  | (56,998 | )
Total operating costs and expenses | (805,363 | ) |  | (131,176 | ) |  | 85,470 |  |  | (851,069 | )
Income from operations | 28,489 |  |  | 4,049 |  |  | (2,835 | ) |  | 29,703 |
Interest expense, net | (19,262 | ) |  | (138 | ) |  | — |  |  | (19,400 | )
Non-operating pension and other postretirement benefit costs | (2,845 | ) |  | — |  |  | — |  |  | (2,845 | )
Earnings before income taxes | 6,382 |  |  | 3,911 |  |  | (2,835 | ) |  | 7,458 |
Income tax (provision) benefit | (3,775 | ) |  | (424 | ) |  | 154 |  |  | (4,045 | )
Equity in income of subsidiary | 3,487 |  |  | — |  |  | (3,487 | ) |  | — |
Net earnings | $ | 6,094 |  |  | $ | 3,487 |  |  | $ | (6,168 | ) |  | $ | 3,413 |
Other comprehensive income, net of tax | 2,573 |  |  | — |  |  | — |  |  | 2,573 |
Comprehensive income | $ | 8,667 |  |  | $ | 3,487 |  |  | $ | (6,168 | ) |  | $ | 5,986 |
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Three Months Ended June 30, 2018
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
Net sales | $ | 433,826 |  |  | $ | 54,313 |  |  | $ | (56,040 | ) |  | $ | 432,099 |
Costs and expenses: |  |  |  |  |  |  |
Cost of sales | (394,260 | ) |  | (47,918 | ) |  | 55,024 |  |  | (387,154 | )
Selling, general and administrative expenses | (21,226 | ) |  | (5,338 | ) |  | — |  |  | (26,564 | )
Total operating costs and expenses | (415,486 | ) |  | (53,256 | ) |  | 55,024 |  |  | (413,718 | )
Income from operations | 18,340 |  |  | 1,057 |  |  | (1,016 | ) |  | 18,381 |
Interest expense, net | (7,627 | ) |  | (96 | ) |  | — |  |  | (7,723 | )
Non-operating pension and other postretirement benefit costs | (1,187 | ) |  | — |  |  | — |  |  | (1,187 | )
Earnings before income taxes | 9,526 |  |  | 961 |  |  | (1,016 | ) |  | 9,471 |
Income tax provision | (2,574 | ) |  | (186 | ) |  | 250 |  |  | (2,510 | )
Equity in income of subsidiary | 775 |  |  | — |  |  | (775 | ) |  | — |
Net earnings | $ | 7,727 |  |  | $ | 775 |  |  | $ | (1,541 | ) |  | $ | 6,961 |
Other comprehensive income, net of tax | 1,336 |  |  | — |  |  | — |  |  | 1,336 |
Comprehensive income | $ | 9,063 |  |  | $ | 775 |  |  | $ | (1,541 | ) |  | $ | 8,297 |
Clearwater Paper Corporation Consolidating Statement of Operations and Comprehensive Income Six Months Ended June 30, 2018
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
Net sales | $ | 889,003 |  |  | $ | 100,526 |  |  | $ | (120,478 | ) |  | $ | 869,051 |
Costs and expenses: |  |  |  |  |  |  |
Cost of sales | (807,217 | ) |  | (88,278 | ) |  | 115,908 |  |  | (779,587 | )
Selling, general and administrative expenses | (48,858 | ) |  | (10,686 | ) |  | — |  |  | (59,544 | )
Total operating costs and expenses | (856,075 | ) |  | (98,964 | ) |  | 115,908 |  |  | (839,131 | )
Income from operations | 32,928 |  |  | 1,562 |  |  | (4,570 | ) |  | 29,920 |
Interest expense, net | (15,556 | ) |  | (187 | ) |  | — |  |  | (15,743 | )
Non-operating pension and other postretirement benefit costs | (2,466 | ) |  | — |  |  | — |  |  | (2,466 | )
Earnings before income taxes | 14,906 |  |  | 1,375 |  |  | (4,570 | ) |  | 11,711 |
Income tax provision | (2,956 | ) |  | (199 | ) |  | 1,005 |  |  | (2,150 | )
Equity in income of subsidiary | 1,176 |  |  | — |  |  | (1,176 | ) |  | — |
Net earnings | $ | 13,126 |  |  | $ | 1,176 |  |  | $ | (4,741 | ) |  | $ | 9,561 |
Other comprehensive income, net of tax | 2,755 |  |  | — |  |  | — |  |  | 2,755 |
Comprehensive income | $ | 15,881 |  |  | $ | 1,176 |  |  | $ | (4,741 | ) |  | $ | 12,316 |
Clearwater Paper Corporation Consolidating Balance Sheet At June 30, 2019
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
ASSETS |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 41,800 |  |  | $ | — |  |  | $ | — |  |  | $ | 41,800 |
Restricted cash | 1,440 |  |  | — |  |  | — |  |  | 1,440 |
Receivables, net | 151,072 |  |  | 18,900 |  |  | — |  |  | 169,972 |
Taxes receivable | 7,995 |  |  | 295 |  |  | (347 | ) |  | 7,943 |
Inventories | 248,236 |  |  | 42,462 |  |  | (2,835 | ) |  | 287,863 |
Other current assets | 9,832 |  |  | 286 |  |  | — |  |  | 10,118 |
Total current assets | 460,375 |  |  | 61,943 |  |  | (3,182 | ) |  | 519,136 |
Property, plant and equipment, net | 1,220,503 |  |  | 73,191 |  |  | — |  |  | 1,293,694 |
Operating lease right-of-use assets | 69,656 |  |  | 5,682 |  |  | — |  |  | 75,338 |
Goodwill | 35,074 |  |  | — |  |  | — |  |  | 35,074 |
Intangible assets, net | 522 |  |  | 19,988 |  |  | — |  |  | 20,510 |
Intercompany (payable) receivable | (65,731 | ) |  | 62,896 |  |  | 2,835 |  |  | — |
Investment in subsidiary | 178,788 |  |  | — |  |  | (178,788 | ) |  | — |
Other assets, net | 11,365 |  |  | 2,818 |  |  | (2,088 | ) |  | 12,095 |
TOTAL ASSETS | $ | 1,910,552 |  |  | $ | 226,518 |  |  | $ | (181,223 | ) |  | $ | 1,955,847 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Short-term debt | $ | 235,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 235,000 |
Accounts payable and accrued liabilities | 278,415 |  |  | 23,226 |  |  | (347 | ) |  | 301,294 |
Current liability for pensions and other postretirement employee benefits | 7,430 |  |  | — |  |  | — |  |  | 7,430 |
Total current liabilities | 520,845 |  |  | 23,226 |  |  | (347 | ) |  | 543,724 |
Long-term debt | 671,676 |  |  | — |  |  | — |  |  | 671,676 |
Operating lease liabilities | 65,966 |  |  | 4,228 |  |  | — |  |  | 70,194 |
Liability for pensions and other postretirement employee benefits | 74,903 |  |  | — |  |  | — |  |  | 74,903 |
Other long-term obligations | 33,498 |  |  | — |  |  | — |  |  | 33,498 |
Accrued taxes | 1,378 |  |  | 879 |  |  | — |  |  | 2,257 |
Deferred tax liabilities | 107,921 |  |  | 19,397 |  |  | (2,088 | ) |  | 125,230 |
TOTAL LIABILITIES | 1,476,187 |  |  | 47,730 |  |  | (2,435 | ) |  | 1,521,482 |
Stockholders’ equity excluding accumulated other comprehensive loss | 499,140 |  |  | 178,788 |  |  | (178,788 | ) |  | 499,140 |
Accumulated other comprehensive loss, net of tax | (64,775 | ) |  | — |  |  | — |  |  | (64,775 | )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,910,552 |  |  | $ | 226,518 |  |  | $ | (181,223 | ) |  | $ | 1,955,847 |
Clearwater Paper Corporation Consolidating Balance Sheet At December 31, 2018
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
ASSETS |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 22,484 |  |  | $ | — |  |  | $ | — |  |  | $ | 22,484 |
Receivables, net | 127,952 |  |  | 17,567 |  |  | — |  |  | 145,519 |
Taxes receivable | 16,634 |  |  | 41 |  |  | (10,374 | ) |  | 6,301 |
Inventories | 222,960 |  |  | 48,361 |  |  | (5,077 | ) |  | 266,244 |
Other current assets | 3,346 |  |  | 53 |  |  | — |  |  | 3,399 |
Total current assets | 393,376 |  |  | 66,022 |  |  | (15,451 | ) |  | 443,947 |
Property, plant and equipment, net | 1,192,716 |  |  | 76,555 |  |  | — |  |  | 1,269,271 |
Goodwill | 35,074 |  |  | — |  |  | — |  |  | 35,074 |
Intangible assets, net | 1,045 |  |  | 23,035 |  |  | — |  |  | 24,080 |
Intercompany (payable) receivable | (62,846 | ) |  | 57,769 |  |  | 5,077 |  |  | — |
Investment in subsidiary | 175,301 |  |  | — |  |  | (175,301 | ) |  | — |
Other assets, net | 14,839 |  |  | 2,618 |  |  | (1,711 | ) |  | 15,746 |
TOTAL ASSETS | $ | 1,749,505 |  |  | $ | 225,999 |  |  | $ | (187,386 | ) |  | $ | 1,788,118 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |
Short-term debt | $ | 120,833 |  |  | $ | — |  |  | $ | — |  |  | $ | 120,833 |
Accounts payable and accrued liabilities | 299,715 |  |  | 31,691 |  |  | (10,374 | ) |  | 321,032 |
Current liability for pensions and other postretirement employee benefits | 7,430 |  |  | — |  |  | — |  |  | 7,430 |
Total current liabilities | 427,978 |  |  | 31,691 |  |  | (10,374 | ) |  | 449,295 |
Long-term debt | 671,292 |  |  | — |  |  | — |  |  | 671,292 |
Liability for pensions and other postretirement employee benefits | 78,191 |  |  | — |  |  | — |  |  | 78,191 |
Other long-term obligations | 38,977 |  |  | — |  |  | — |  |  | 38,977 |
Accrued taxes | 1,918 |  |  | 867 |  |  | — |  |  | 2,785 |
Deferred tax liabilities | 104,753 |  |  | 18,140 |  |  | (1,711 | ) |  | 121,182 |
TOTAL LIABILITIES | 1,323,109 |  |  | 50,698 |  |  | (12,085 | ) |  | 1,361,722 |
Stockholders’ equity excluding accumulated other comprehensive loss | 493,744 |  |  | 175,301 |  |  | (175,301 | ) |  | 493,744 |
Accumulated other comprehensive loss, net of tax | (67,348 | ) |  | — |  |  | — |  |  | (67,348 | )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,749,505 |  |  | $ | 225,999 |  |  | $ | (187,386 | ) |  | $ | 1,788,118 |
Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2019
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  |  |  |
Net earnings | $ | 6,094 |  |  | $ | 3,487 |  |  | $ | (6,168 | ) |  | $ | 3,413 |
Adjustments to reconcile net earnings to net cash flows from operating activities: |  |  |  |  |  |  |
Depreciation and amortization | 46,457 |  |  | 7,896 |  |  | — |  |  | 54,353 |
Equity-based compensation expense | 2,070 |  |  | — |  |  | — |  |  | 2,070 |
Deferred taxes | 3,880 |  |  | 1,300 |  |  | — |  |  | 5,180 |
Deferred issuance costs on debt | 938 |  |  | — |  |  | — |  |  | 938 |
Other non-cash activity, net | (792 | ) |  | — |  |  |  |  |  | (792 | )
Changes in working capital, net | (64,846 | ) |  | 4,811 |  |  | 9,889 |  |  | (50,146 | )
Changes in taxes receivable | 8,639 |  |  | (254 | ) |  | (10,027 | ) |  | (1,642 | )
Changes in non-current accrued taxes | (540 | ) |  | 12 |  |  | — |  |  | (528 | )
Other, net | 1,942 |  |  | (66 | ) |  | — |  |  | 1,876 |
Net cash flows from operating activities | 3,842 |  |  | 17,186 |  |  | (6,306 | ) |  | 14,722 |
CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |  |  |
Additions to property, plant and equipment | (107,155 | ) |  | (1,264 | ) |  | — |  |  | (108,419 | )
Other, net | 4 |  |  | — |  |  | — |  |  | 4 |
Net cash flows from investing activities | (107,151 | ) |  | (1,264 | ) |  | — |  |  | (108,415 | )
CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  |  |  |
Borrowings on short-term debt | 436,927 |  |  | — |  |  | — |  |  | 436,927 |
Repayments of borrowings on short-term debt | (322,760 | ) |  | — |  |  | — |  |  | (322,760 | )
Investment from (to) parent | 9,616 |  |  | (15,922 | ) |  | 6,306 |  |  | — |
Other, net | (1,147 | ) |  | — |  |  | — |  |  | (1,147 | )
Net cash flows from financing activities | 122,636 |  |  | (15,922 | ) |  | 6,306 |  |  | 113,020 |
Increase in cash, cash equivalents and restricted cash | 19,327 |  |  | — |  |  | — |  |  | 19,327 |
Cash, cash equivalents and restricted cash at beginning of period | 24,947 |  |  | — |  |  | — |  |  | 24,947 |
Cash, cash equivalents and restricted cash at end of period | $ | 44,274 |  |  | $ | — |  |  | $ | — |  |  | $ | 44,274 |
Clearwater Paper Corporation Consolidating Statement of Cash Flows Six Months Ended June 30, 2018
(In thousands) | Issuer |  | Guarantor Subsidiaries |  | Eliminations |  | Total
CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  |  |  |
Net earnings | $ | 13,126 |  |  | $ | 1,176 |  |  | $ | (4,741 | ) |  | $ | 9,561 |
Adjustments to reconcile net earnings to net cash flows from operating activities: |  |  |  |  |  |  |
Depreciation and amortization | 39,905 |  |  | 10,439 |  |  | — |  |  | 50,344 |
Equity-based compensation expense | 343 |  |  | — |  |  | — |  |  | 343 |
Deferred taxes | 2,979 |  |  | (330 | ) |  | — |  |  | 2,649 |
Deferred issuance costs on long term debt | 716 |  |  | — |  |  | — |  |  | 716 |
Other non-cash activity, net | 414 |  |  | (4 | ) |  | — |  |  | 410 |
Changes in working capital, net | 41,660 |  |  | (6,051 | ) |  | 708 |  |  | 36,317 |
Changes in taxes receivable | 11,502 |  |  | (4 | ) |  | — |  |  | 11,498 |
Changes in non-current accrued taxes, net | 346 |  |  | — |  |  | — |  |  | 346 |
Other, net | (770 | ) |  | (526 | ) |  | — |  |  | (1,296 | )
Net cash flows from operating activities | 110,221 |  |  | 4,700 |  |  | (4,033 | ) |  | 110,888 |
CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |  |  |
Additions to property, plant and equipment | (77,257 | ) |  | (1,343 | ) |  | — |  |  | (78,600 | )
Other, net | 793 |  |  | 14 |  |  | — |  |  | 807 |
Net cash flows from investing activities | (76,464 | ) |  | (1,329 | ) |  | — |  |  | (77,793 | )
CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  |  |  |
Borrowings on short-term debt | 124,063 |  |  | — |  |  | — |  |  | 124,063 |
Repayments of borrowings on short-term debt | (119,063 | ) |  | — |  |  | — |  |  | (119,063 | )
Investment (to) from parent | (662 | ) |  | (3,371 | ) |  | 4,033 |  |  | — |
Other, net | (543 | ) |  | — |  |  | — |  |  | (543 | )
Net cash flows from financing activities | 3,795 |  |  | (3,371 | ) |  | 4,033 |  |  | 4,457 |
Increase in cash, cash equivalents and restricted cash | 37,552 |  |  | — |  |  | — |  |  | 37,552 |
Cash, cash equivalents and restricted cash at beginning of period | 16,738 |  |  | — |  |  | — |  |  | 16,738 |
Cash, cash equivalents and restricted cash at end of period | $ | 54,290 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,290 |

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