POTLATCHDELTIC CORP, 10-K filed on 2/16/2018
Annual Report
v3.8.0.1
Document And Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Jan. 31, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2017    
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
Trading Symbol PCH    
Entity Registrant Name POTLATCH CORP    
Entity Central Index Key 0001338749    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Common Stock, Shares Outstanding   40,611,991  
Entity Public Float     $ 1,855.9
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Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]      
Revenues $ 678,595 $ 599,099 $ 575,336
Costs and expenses:      
Cost of goods sold 470,365 462,304 470,037
Selling, general and administrative expenses 55,408 51,697 46,392
Environmental charges for Avery Landing 4,978 1,022  
Deltic merger-related costs 3,409    
Gain on lumber price swap (1,088)    
Loss on sale of central Idaho timber and timberlands   48,522  
Total costs and expenses 533,072 563,545 516,429
Operating income 145,523 35,554 58,907
Interest expense, net (27,049) (28,941) (32,761)
Income before income taxes 118,474 6,613 26,146
Income tax (provision) benefit (32,021) 4,325 5,568
Net income $ 86,453 $ 10,938 $ 31,714
Net income per share:      
Basic (in dollars per share) $ 2.12 $ 0.27 $ 0.78
Diluted (in dollars per share) 2.10 0.27 0.77
Dividends per share (in dollars per share) $ 1.525 $ 1.50 $ 1.50
Weighted-average shares outstanding (in thousands)      
Basic (in shares) 40,824,420 40,797,806 40,842,126
Diluted (in shares) 41,227,388 41,033,440 40,987,819
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]      
Net income $ 86,453 $ 10,938 $ 31,714
Other comprehensive income, net of tax:      
Net gain (loss) arising during the period, net of tax expense (benefit) of $3,990, $(1,826) and $(1,913) 11,355 (2,857) (2,990)
Amortization of actuarial loss included in net periodic cost, net of tax expense of $6,248, $7,042 and $7,794 9,773 11,014 12,190
Amortization of prior service credit included in net periodic cost, net of tax benefit of $(3,350), $(3,260) and $(3,396) (5,239) (5,099) (5,311)
Cash flow hedge, net of tax of $3, $448, and $- 4 701 0
Other comprehensive income, net of tax 15,893 3,759 3,889
Comprehensive income $ 102,346 $ 14,697 $ 35,603
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Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]      
Net gain (loss) arising during the period, tax expense (benefit) $ 3,990 $ (1,826) $ (1,913)
Amortization of actuarial loss included in net periodic cost, tax expense 6,248 7,042 7,794
Amortization of prior service credit included in net periodic cost, tax benefit (3,350) (3,260) (3,396)
Cash flow hedge, tax effect $ 3 $ 448 $ 0
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Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 120,457 $ 82,584
Customer receivables, net of allowance for doubtful accounts of $260 and $510 11,240 14,842
Inventories 50,132 52,622
Other current assets 11,478 13,597
Total current assets 193,307 163,645
Property, plant and equipment, net 77,229 72,820
Timber and timberlands, net 654,476 641,856
Deferred tax assets, net 19,796 42,051
Other long-term assets 8,271 7,309
Total assets 953,079 927,681
Current liabilities:    
Current portion of long-term debt 14,263 11,032
Accounts payable and accrued liabilities 55,201 43,710
Current portion of pension and other postretirement employee benefits 5,334 5,839
Total current liabilities 74,798 60,581
Long-term debt 559,056 572,956
Pension and other postretirement employee benefits 103,524 123,284
Other long-term obligations 15,159 14,586
Total liabilities 752,537 771,407
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, authorized 4,000,000 shares, no shares issued 0 0
Common stock, $1 par value, authorized 100,000,000 shares, issued 40,611,991 and 40,519,351 shares 40,612 40,519
Additional paid-in capital 359,144 355,274
Accumulated deficit (104,363) (128,775)
Accumulated other comprehensive loss (94,851) (110,744)
Total stockholders’ equity 200,542 156,274
Total liabilities and stockholders' equity $ 953,079 $ 927,681
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Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Statement Of Financial Position [Abstract]    
Allowance for doubtful accounts $ 260 $ 510
Preferred stock, authorized 4,000,000 4,000,000
Preferred stock, issued 0 0
Common stock, par value $ 1 $ 1
Common stock, authorized 100,000,000 100,000,000
Common stock, issued 40,611,991 40,519,351
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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 86,453 $ 10,938 $ 31,714
Adjustments to reconcile net income to net cash from operating activities:      
Depreciation, depletion and amortization 29,912 34,190 38,105
Basis of real estate sold 6,827 8,011 7,012
Change in deferred taxes 15,364 1,853 (5,696)
Pension and other postretirement employee benefits 13,151 15,661 15,122
Equity-based compensation expense 4,722 4,390 4,758
Loss on sale of central Idaho timber and timberlands   48,522  
Other, net (1,872) (1,198) (2,046)
Change in:      
Receivables 3,602 (3,712) (3,864)
Inventories 2,490 (17,460) (3,672)
Other assets (15) (473) 898
Accounts payable and accrued liabilities 11,591 7,232 267
Other liabilities (4,291) (4,537) (8,584)
Funding of qualified pension plans (5,275) (1,300)  
Net cash from operating activities 162,659 102,117 74,014
CASH FLOWS FROM INVESTING ACTIVITIES      
Change in short-term investments     6,995
Transfer from company owned life insurance (COLI) 1,278 6,384 1,492
Transfer to COLI (1,324) (3,967)  
Purchase of property, plant and equipment (12,855) (5,866) (18,987)
Timberlands reforestation and roads (15,207) (13,422) (13,745)
Acquisition of timber and timberlands (22,043) (1,244) (10,230)
Net proceeds from sale of central Idaho timber and timberlands   111,460  
Other, net 131 6 886
Net cash from investing activities (50,020) 93,351 (33,589)
CASH FLOWS FROM FINANCING ACTIVITIES      
Dividends to common stockholders (61,931) (60,842) (61,017)
Repurchase of common stock   (5,956)  
Revolving line of credit (repayment) borrowings   (30,000) 30,000
Repayment of long-term debt (11,000) (113,335) (22,500)
Proceeds from issuance of long-term debt   93,235  
Other, net (1,835) (3,911) (3,000)
Net cash from financing activities (74,766) (120,809) (56,517)
Change in cash and cash equivalents 37,873 74,659 (16,092)
Cash and cash equivalents at beginning of year 82,584 7,925 24,017
Cash and cash equivalents at end of year 120,457 82,584 7,925
Cash paid (received) during the year for:      
Interest, net of amounts capitalized 26,125 28,051 29,676
Income taxes, net $ 15,845 $ (8,081) $ 1,576
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Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Balance, beginning of period at Dec. 31, 2014 $ 225,066 $ 40,605 $ 346,441 $ (43,588) $ (118,392)
Balance, beginning of period (shares) at Dec. 31, 2014   40,605,179      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Performance shares and restricted stock units 3,390 $ 76 3,406 (92)  
Performance share and restricted stock unit (shares)   75,534      
Net income 31,714     31,714  
Director deferred stock awards 701   701    
Pension plans and OPEB obligations 3,889       3,889
Transfer of assets from REIT to subsidiary (7)   (7)    
Cash flow hedge, net of tax of $3, $448, and $- 0        
Common distributions, $1.50 per share 2015, $1.50 per share 2016, $1.525 per share 2017 (61,017)     (61,017)  
Balance, end of period at Dec. 31, 2015 203,736 $ 40,681 350,541 (72,983) (114,503)
Balance, end of period (shares) at Dec. 31, 2015   40,680,713      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Performance shares and restricted stock units 3,971 $ 8 4,065 (102)  
Performance share and restricted stock unit (shares)   8,263      
Net income 10,938     10,938  
Director deferred stock awards 668   668    
Pension plans and OPEB obligations 3,058       3,058
Repurchase of common stock (5,956) $ (170)   (5,786)  
Repurchase of common stock (shares)   (169,625)      
Cash flow hedge, net of tax of $3, $448, and $- 701       701
Common distributions, $1.50 per share 2015, $1.50 per share 2016, $1.525 per share 2017 (60,842)     (60,842)  
Balance, end of period at Dec. 31, 2016 156,274 $ 40,519 355,274 (128,775) (110,744)
Balance, end of period (shares) at Dec. 31, 2016   40,519,351      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Performance shares and restricted stock units 3,435 $ 93 3,452 (110)  
Performance share and restricted stock unit (shares)   92,640      
Net income 86,453     86,453  
Director deferred stock awards 418   418    
Pension plans and OPEB obligations 15,889       15,889
Repurchase of common stock (shares)   0      
Cash flow hedge, net of tax of $3, $448, and $- 4       4
Common distributions, $1.50 per share 2015, $1.50 per share 2016, $1.525 per share 2017 (61,931)     (61,931)  
Balance, end of period at Dec. 31, 2017 $ 200,542 $ 40,612 $ 359,144 $ (104,363) $ (94,851)
Balance, end of period (shares) at Dec. 31, 2017   40,611,991      
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Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Stockholders Equity [Abstract]      
Common dividends, per share $ 1.525 $ 1.50 $ 1.50
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

We are primarily engaged in activities associated with timberland management, including the sale of timber, the management of approximately 1.4 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacture and sale of wood products. Our timberlands and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a Real Estate Investment Trust (REIT) effective January 1, 2006.

CONSOLIDATION

The Consolidated Financial Statements include the accounts of Potlatch Corporation and its subsidiaries after the elimination of intercompany transactions and accounts. There are no unconsolidated subsidiaries.

SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, which we refer to in this report as U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.

Significant estimates include timber volumes, pension and postretirement obligation assumptions, contingent liabilities and the fair value of derivative instruments. These significant estimates are described in further detail below.

Cash and Cash Equivalents

Cash equivalents are investments that are highly liquid with maturities of three months or less when purchased.

INVENTORIES

For most of our operations, the last-in, first-out method is used to determine the cost of logs, lumber and plywood. The average cost method is used to determine the cost of all other inventories. Inventories are stated at the lower of cost or net realizable value. Expenses associated with idle capacity or other curtailments of production are reflected in cost of goods sold in the periods incurred.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are valued at cost less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method of depreciation.

Major improvements and replacements of property are capitalized. Maintenance, repairs and minor improvements and replacements are expensed. Upon retirement or other disposition of property, applicable cost and accumulated depreciation are removed from the accounts. Any gains or losses are included in earnings.

TIMBER AND TIMBERLANDS

Timber and timberlands are valued at cost less accumulated depletion and amortization. We capitalize costs related to stand establishment, which include the preparation of the land for planting, seeds or seedlings and tree planting costs, which include third-party labor costs, materials and other contract services. Upon completion of planting activities and field inspection to confirm the planting operation was successful, a plantation will be considered “established.”

Subsequent expenditures to maintain the integrity or enhance the growth of an established plantation or stand are expensed. Post-establishment expenses include vegetation control, fertilization, thinning operations and the replanting of seedlings lost through mortality. Forest management costs are considered current operating expenses and include property taxes and insurance, silviculture costs incurred subsequent to stand establishment, cruising (physical inventory), property maintenance, salaries, supplies, travel, record-keeping, fire protection and other normal recurring administrative personnel costs.

Timberland acquisitions are capitalized based on the relative appraised values of timberland, merchantable sawlogs, merchantable pulpwood, pre-production timber (young growth that is not yet merchantable timber), logging roads and other land improvements.

The estimated volume of current standing merchantable timber inventory, which is a component of calculating our depletion rates, is updated at least annually to reflect increases due to the reclassification of pre-production timber to merchantable timber when it meets defined diameter specifications, the annual growth of merchantable timber and the acquisition of additional merchantable timber, decreases due to timber harvests and land sales and changes resulting from other factors, such as environmental or casualty losses. Timber volumes are estimated from cruises of the timber tracts, which are completed on our timberlands on approximately a five to ten year cycle.

Depletion represents the amount charged to expense as timber is harvested. Rates at which timber is depleted are calculated annually for each of our depletion pools by dividing the beginning of year balance of the merchantable timber accounts by the forest inventory volume, after inventory updates.

The base cost of logging roads, such as clearing, grading and ditching, is not amortized and remains a capitalized item until disposition. Other portions of the initial logging road cost, such as bridges, culverts and gravel surfacing are amortized over their useful lives, which range from 5 to 20 years. Costs associated with temporary logging road spurs, which are typically used for one harvest season, are expensed as incurred.

REAL ESTATE SALES

Sales of non-core timberland are considered to be part of our normal operations. We therefore classify revenue and costs associated with real estate sold in revenues and cost of goods sold, respectively, in our Consolidated Statements of Income. Cash generated from real estate sales is included as an operating activity in our Consolidated Statements of Cash Flows.

Sales of large parcels of property, such as our sale of central Idaho timberlands in 2016, which do not represent our core operations and are of such a size as to not be indicative of our ongoing operations, are presented as a net gain or loss in our Consolidated Statements of Income. Cash generated from these sales is included as an investing activity in our Consolidated Statements of Cash Flows.

LONG-LIVED ASSETS

Our long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as measured by its undiscounted estimated future cash flows. We use our operational budgets to estimate future cash flows. The estimates are adjusted periodically to reflect changing business conditions. Impaired assets are written down to fair value. Assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

We recognize a liability and an asset equal to the fair value of our legal obligations to perform asset retirement activities if the amount can be reasonably estimated. We review these obligations annually and do not expect them to have a material effect on our financial position, results of operations or cash flows.

INCOME TAXES

We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. We recognize the effect of a change in income tax rates on deferred tax assets and liabilities in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income in the period that includes the enactment date of the rate change. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such deferred tax assets will not be realized.

REVENUE RECOGNITION

We recognize revenue from the sale of timber when risk of loss transfers to the buyer and the quantity sold is determinable. These sales usually take the form of delivered logs, pay-as-cut stumpage contracts, lump sum stumpage contracts or timber deeds. On delivered log sales, revenue includes amounts billed for logging and hauling and is recognized at the point the logs are delivered and scaled. Revenue is recognized on timber deeds and lump sum stumpage contracts generally upon closing or when the contracts are effective, which is the point at which the buyer assumes risk of loss associated with the standing timber.

We recognize revenue from the sale of manufactured wood products and residual by-products when there is persuasive evidence of a sales agreement, the price to the customer is fixed and determinable, collection is reasonably assured and title and the risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment when shipping terms are FOB (free on board) shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer.

We receive cash consideration in full and recognize revenue at closing on substantially all of our real estate sales.

While sales taxes are not typical, in the event sales taxes are collected, revenue is recognized net of any sales tax and sales taxes are recorded as a current liability and remitted to the appropriate governmental entities.

Costs for shipping and handling are included in cost of goods sold in our Consolidated Statements of Income.

EQUITY-BASED COMPENSATION

Equity-based awards are measured at fair value on the dates they are granted or modified. These measurements establish the cost of the equity-based awards for accounting purposes. The cost of the equity-based award is then recognized in the Consolidated Statements of Income over each employee’s required service period. See Note 14: Equity-Based Compensation Plans for more information about our equity-based compensation.

NEW ACCOUNTING PRONOUNCEMENTS

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which changes several aspects of the accounting for share-based payment award transactions, including accounting for income taxes, diluted shares outstanding, classification of excess tax benefits on the statement of cash flows, forfeitures and minimum statutory tax withholding requirements. We prospectively adopted the provisions of this ASU on January 1, 2017, which include recording the tax effects related to share-based payments through the income statement. As a Real Estate Investment Trust (REIT), we are generally not subject to federal and state corporate income taxes, except through our taxable REIT subsidiaries. Therefore, the adoption of this guidance was not material to our consolidated financial statements. We will continue to estimate forfeitures each period. We consider many factors when estimating expected forfeitures, including types of awards, employee class and historical experience.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU No. 2014-09), which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 also included other guidance, including the presentation of a gain or loss recognized on the sale of a long-lived asset or a nonfinancial asset. Subsequent ASUs have been issued that provide clarity, technical corrections and improvements to ASU No. 2014-09. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, which deferred the effective date of ASU No. 2014-09 by one year. ASU No. 2014-09 is effective for us on January 1, 2018. For most of our sales, which consist of logs, manufactured wood products, residual by-products and real estate, we have identified no change to the timing or amount of revenue recognized because our contracts are legally enforceable, the transaction price is fixed and performance obligations are satisfied at a point in time, typically with control transferring to the buyer when risk of loss and title pass. For our other sales, which include stumpage contracts, timber deeds, land use permits and royalties, we have also identified no change to the timing or amount of revenue recognized. We will have minor refinements to our controls over financial reporting as a result of this ASU. Our expanded disclosures will disaggregate revenues along the lines of the sales categories mentioned above. The guidance permits a retrospective application of the new standard with certain practical expedients (contracts completed within the same annual reporting period need not be restated and other allowances for contracts with variable consideration) or retrospective application with a cumulative effect adjustment to the beginning balance of retained earnings. Upon adoption of this ASU on January 1, 2018, if there is a difference in the amount of revenue recorded for any of the prior reporting periods presented, we will record a cumulative adjustment to retained earnings in the first quarter of 2018. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an entity to present service cost within compensation expense and the other components of net benefit cost outside of income from operations. This ASU is effective for us on January 1, 2018. The amendments in this update require retrospective presentation in the income statement. Changes to the capitalized portion of both service cost and the other components of net benefit cost within inventory will be applied prospectively. In 2017, net periodic pension and other postretirement employee benefit cost reported within operating income totaled $13.2 million of which $6.8 million represented service cost.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, the income tax consequence of an intra-entity asset transfer was not recognized until the asset was sold to an outside party. This amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. This ASU is effective for us on January 1, 2018. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business. The standard provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or a business. This ASU is effective for us on January 1, 2018 on a prospective basis.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities, which simplifies and expands the application of hedge accounting. ASU 2017-12 requires that when a hedge is deemed effective, hedge accounting must be applied to the entire change in fair value of the hedging instrument eliminating the notion of ineffective portions of the hedge relationship.  The entire change in the fair value of the hedging instrument will be recorded in the same income statement line item as the hedged item and the ineffective portion will no longer be separately recognized in earnings. This ASU is effective for us on January 1, 2019, with early application permitted in any interim period. The presentation and disclosure guidance are required prospectively upon adoption. Our cash flow hedges currently have no ineffectiveness, but in the event they did, as of the beginning of the fiscal year that we adopt this ASU, a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness would be recorded to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which, among other things, requires lessees to recognize most leases on the balance sheet. We have operating leases covering office space, equipment and vehicles expiring at various dates through 2033, which would require a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, to be recognized in the statement of financial position. Lease costs would generally continue to be recognized on a straight-line basis. We expect our right-of-use asset and lease liability will approximate our current future minimum lease payments required under our operating leases, which were $14.4 million at December 31, 2017. The ASU is effective for us on January 1, 2019.

In February 2018, the FASB issued ASU No. 2018-2, Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, H.R. 1, Tax Cuts and Jobs Act (the Act). See Note 15: Income Taxes for additional information regarding the Act. This ASU is effective for us on January 1, 2019, with early adoption permitted. We expect to adopt this ASU on January 1, 2018 and elect to reclassify the income tax effects of the Act on pension and other postretirement employee benefits and a cash flow hedge within accumulated other comprehensive loss to accumulated deficit. Accordingly, at March 31, 2018, accumulated other comprehensive loss will increase by approximately $20 million and the change will be recorded as a decrease to accumulated deficit.

RECLASSIFICATIONS

Prior year environmental charges for Avery Landing within the Consolidated Statements of Income have been reclassified to conform to the 2017 presentation. There was no change to revenues, cost of goods sold, operating income or net income.

Prior year receivables not due from customers within the Consolidated Balance Sheets have been reclassified to other current assets to conform to the 2017 presentation. There was no change to previously reported total current assets. See Note 7: Other Current Assets for additional information.

Certain 2016 and 2015 amounts within cash flows from operations on the Consolidated Statements of Cash Flows have been reclassified to conform to the 2017 presentation. There was no change to previously reported net cash from operating, investing or financing activities.
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Pending Merger With Deltic
 12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Pending Merger With Deltic

NOTE 2. Pending Merger with Deltic

On October 22, 2017, Potlatch, Portland Merger, LLC (Merger Sub), a wholly-owned subsidiary of Potlatch, and Deltic Timber Corporation (Deltic) entered into an Agreement and Plan of Merger (Merger Agreement) pursuant to which Deltic will merge with and into Merger Sub. Following the merger, Potlatch will be renamed PotlatchDeltic Corporation. Under the terms of the Merger Agreement, Deltic shareholders will receive 1.80 shares of Potlatch common stock for each share of Deltic common stock at the closing date. Deltic owns approximately 530,000 acres of timberland, operates two sawmills and a medium density fiberboard plant and is engaged in real estate development primarily in Arkansas.

 

Because the exchange ratio was fixed at the time of the Merger Agreement and the market value of our common stock will continue to fluctuate, the total value of the consideration exchanged will not be determinable until the closing date. The number of shares to be issued with respect to Deltic stock awards will not be determinable until the closing of the transaction.

 

We estimated that approximately 22 million shares of our common stock will be issued to Deltic shareholders in the merger based on the 1.80 exchange ratio and the number of shares of Deltic common stock issued and outstanding as of January 31, 2018.

 

The Merger Agreement provides that, upon termination of the Merger Agreement by a party under certain circumstances, such party may be obligated to pay the other party a termination fee equal to $66 million with respect to the fee payable by Potlatch and $33 million with respect to the fee payable by Deltic.

 

Subsequent to the completion of the transaction, as part of the REIT conversion process, Deltic’s earnings and profits are expected to be distributed to shareholders of the combined company through a dividend or special distribution consisting of 80% stock and 20% cash.

 

The closing of the merger is subject to approval by the shareholders of Deltic and Potlatch and other conditions specified in the Merger Agreement. The respective shareholder meetings are scheduled for February 20, 2018, as published in the joint proxy statement/prospectus dated January 18, 2018. If approved by the shareholders, the merger is expected to close the same day.
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Earnings per Share
 12 Months Ended
Dec. 31, 2017
Earnings Per Share Basic Other Disclosures [Abstract]  
Earnings per Share

NOTE 3.  EARNINGS PER SHARE

The following table reconciles the number of shares used in calculating the basic and diluted earnings per share for the years ended December 31:

 

(Dollars in thousands, except per share amounts)

 

2017

 

 

2016

 

 

2015

 

Net income

 

$

86,453

 

 

$

10,938

 

 

$

31,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding

 

 

40,824,420

 

 

 

40,797,806

 

 

 

40,842,126

 

Incremental shares due to:

 

 

 

 

 

 

 

 

 

 

 

 

Performance shares

 

 

362,509

 

 

 

200,164

 

 

 

122,334

 

Restricted stock units

 

 

40,459

 

 

 

35,470

 

 

 

23,359

 

Diluted weighted-average shares outstanding

 

 

41,227,388

 

 

 

41,033,440

 

 

 

40,987,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

2.12

 

 

$

0.27

 

 

$

0.78

 

Diluted net income per share

 

$

2.10

 

 

$

0.27

 

 

$

0.77

 

 

For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award.

At December 31, 2017 and 2016, there were 250 and 503 stock-based awards, respectively, which were excluded from the calculation of earnings per share because they were anti-dilutive. At December 31, 2015, there were no anti-dilutive stock-based awards.

On April 26, 2016, we announced that our board of directors had authorized management to repurchase up to $60 million of common stock over a period of 24 months (the “Repurchase Plan”). We repurchased 169,625 shares of common stock during the second quarter of 2016 at an average price of $35.08 per share. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit. No shares were repurchased during 2017 and $54 million remains available on the authorization.

v3.8.0.1
Inventories
 12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventories

NOTE 4.  INVENTORIES

 

(Dollars in thousands)

 

2017

 

 

2016

 

Logs

 

$

20,133

 

 

$

23,342

 

Lumber, plywood and veneer

 

 

20,889

 

 

 

20,500

 

Materials and supplies

 

 

9,110

 

 

 

8,780

 

 

 

$

50,132

 

 

$

52,622

 

Valued at lower of cost or net realizable value:

 

 

 

 

 

 

 

 

Last-in, first-out basis

 

$

25,127

 

 

$

29,769

 

Average cost basis

 

 

25,005

 

 

 

22,853

 

Total inventories

 

$

50,132

 

 

$

52,622

 

 

If the last-in, first-out inventory had been carried at average cost, the values would have been higher by approximately $10.9 million, $11.1 million and $10.6 million at December 31, 2017, 2016 and 2015, respectively.
v3.8.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2017
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

NOTE 5.  PROPERTY, PLANT AND EQUIPMENT

 

(Dollars in thousands)

Range of useful lives

 

2017

 

 

2016

 

Land

 

 

$

4,707

 

 

$

4,712

 

Buildings and improvements

10-40 years

 

 

55,734

 

 

 

54,448

 

Machinery and equipment

2-25 years

 

 

197,648

 

 

 

190,316

 

Construction in progress

 

 

 

1,348

 

 

 

1,437

 

 

 

 

 

259,437

 

 

 

250,913

 

Less: accumulated depreciation

 

 

 

(182,208

)

 

 

(178,093

)

Total property, plant and equipment, net

 

 

$

77,229

 

 

$

72,820

 

 

Depreciation charged against operating income totaled $8.1 million, $8.3 million and $8.2 million in 2017, 2016 and 2015, respectively.

Interest expense capitalized was inconsequential in 2017 and 2016, and $0.2 million 2015.
v3.8.0.1
Timber and Timberlands
 12 Months Ended
Dec. 31, 2017
Timber And Timberlands [Abstract]  
Timber and Timberlands

NOTE 6.  TIMBER AND TIMBERLANDS

 

(Dollars in thousands)

 

2017

 

 

2016

 

Timber and timberlands

 

$

581,648

 

 

$

572,273

 

Logging roads

 

 

72,828

 

 

 

69,583

 

Total timber and timberlands, net

 

$

654,476

 

 

$

641,856

 

 

Depletion from company-owned lands totaled $17.0 million, $20.8 million and $25.3 million in 2017, 2016 and 2015, respectively. Amortization of road costs, such as bridges, culverts and gravel surfacing, totaled $3.2 million, $3.1 million and $3.1 million in 2017, 2016 and 2015, respectively.

Future payments due under timber cutting contracts as of December 31, 2017 are as follows:

 

(Dollars in thousands)

 

 

 

 

2018

 

$

11,280

 

2019

 

 

2,730

 

2020

 

 

1,085

 

2021

 

 

5,370

 

2022

 

 

281

 

Total

 

$

20,746

 

 
v3.8.0.1
Other Current Assets
 12 Months Ended
Dec. 31, 2017
Other Assets [Abstract]  
Other Current Assets

NOTE 7. OTHER CURRENT ASSETS

 

(Dollars in thousands)

 

2017

 

 

2016

 

Real estate held for sale

 

$

7,721

 

 

$

9,184

 

Prepaid expenses

 

 

2,862

 

 

 

1,939

 

Other receivables

 

 

882

 

 

 

2,442

 

Interest rate swaps

 

 

13

 

 

 

32

 

Total other current assets

 

$

11,478

 

 

$

13,597

 

 
v3.8.0.1
Accounts Payable and Accrued Liabilities
 12 Months Ended
Dec. 31, 2017
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract]  
Accounts Payable and Accrued Liabilities

NOTE 8.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

(Dollars in thousands)

 

2017

 

 

2016

 

Accrued payroll and benefits

 

$

18,110

 

 

$

13,634

 

Accounts payable

 

 

9,361

 

 

 

8,382

 

Accrued interest

 

 

6,385

 

 

 

6,237

 

Avery Landing accrual

 

 

6,000

 

 

 

1,022

 

Accrued taxes

 

 

5,103

 

 

 

4,956

 

Other current liabilities

 

 

10,242

 

 

 

9,479

 

Total accounts payable and accrued liabilities

 

$

55,201

 

 

$

43,710

 

 
v3.8.0.1
Debt
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Debt

NOTE 9.  DEBT

 

(Dollars in thousands)

 

2017

 

 

2016

 

Term loans

 

$

343,500

 

 

$

349,500

 

Senior notes

 

 

150,000

 

 

 

150,000

 

Revenue bonds

 

 

65,735

 

 

 

65,735

 

Medium-term notes

 

 

17,250

 

 

 

22,250

 

Long-term principal

 

 

576,485

 

 

 

587,485

 

Interest rate swaps

 

 

(373

)

 

 

247

 

Debt issuance costs

 

 

(2,321

)

 

 

(3,015

)

Unamortized discounts

 

 

(472

)

 

 

(729

)

Total long-term debt (includes current portion)

 

 

573,319

 

 

 

583,988

 

Less current portion of long-term debt

 

 

(14,263

)

 

 

(11,032

)

Long-term debt

 

$

559,056

 

 

$

572,956

 

 

TERM LOANS

We repaid $6 million of our term loans in 2017. The remaining term loans include eight tranches consisting of the following:

 

 

•

one $6 million tranche with a rate of 3.70% maturing in 2020;

 

•

three $40 million tranches maturing each year from 2019 through 2021 at variable rates based on three-month LIBOR plus a spread between 1.65% and 1.90% (term loan variable rates are based on three-month LIBOR of 1.34%, which is the rate incurred during the fourth quarter of 2017);

 

•

two $40 million tranches with rates of 4.29% maturing in 2022 and 4.49% maturing in 2023;

 

•

one tranche of $110 million with a rate of 4.64% maturing in 2024; and

 

•

one tranche of $27.5 million with a rate of 2.15% plus three-month LIBOR maturing in 2026.

SENIOR NOTES

In 2009, we sold $150 million aggregate principal amount of 7.50% senior notes due in 2019. The terms of these notes limit our ability, and the ability of any subsidiary guarantors, to borrow money, pay dividends, redeem or repurchase capital stock, enter into sale and leaseback transactions and create liens.

MEDIUM-TERM NOTES AND REVENUE BONDS

The medium-term notes were originally issued during 1991 and 1992 with fixed rates of 8.75% to 8.89% due 2018 through 2022. Repayment of $5 million of our medium-term notes occurred in 2017.

In 2016, we repaid $42.6 million of revenue bonds. The bonds carried a rate of 5.90% and matured in 2026. In 2016, we also refinanced $65.7 million of revenue bonds at a rate of 2.75%. The original bonds, which carried a rate of 6.00%, were extinguished and a new debt obligation was simultaneously issued. The principal balance and maturity date in 2024 remain unchanged.

DEBT ISSUANCE COSTS

Debt issuance costs represent the capitalized direct costs incurred related to the issuance of debt. These costs are amortized to interest expense over the terms of the respective borrowings.

DEBT MATURITIES

Scheduled principal payments due on long-term debt as of December 31, 2017 are as follows:

 

(Dollars in thousands)

 

 

 

 

2018

 

$

14,250

 

2019

 

 

190,000

 

2020

 

 

46,000

 

2021

 

 

40,000

 

2022

 

 

43,000

 

Thereafter

 

 

243,235

 

Total

 

$

576,485

 

 

Principal repayments on long-term debt occur at maturity. Our debt obligations are of equal priority.

CREDIT AGREEMENT

In 2014, we entered into an amended and restated credit agreement with an expiration date of February 12, 2020. The credit agreement provides for a revolving line of credit with an initial aggregate principal amount not to exceed $250 million, which may be increased by up to an additional $250 million. It also includes a sublimit of $40 million for the issuance of standby letters of credit and a sublimit of $25 million for swing line loans. Usage under either or both subfacilities reduces availability under the revolving line of credit. As of December 31, 2017, there were no borrowings outstanding under the revolving line of credit, and approximately $0.9 million of the letter of credit subfacility was being used to support several outstanding letters of credit. Available borrowing capacity at December 31, 2017 was $249.1 million.

Pricing is set according to the type of borrowing. LIBOR Loans are issued at a rate equal to the British Bankers Association LIBOR Rate, while Base Rate Loans are issued at a rate equal to the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1.00%, (b) the rate of interest in effect for such day as publicly announced from time to time by KeyBank as its “prime rate” and (c) the sum of the LIBOR that would apply to a one month Interest Period plus 1.00%. The interest rates we pay for borrowings under either type of loan include an additional Applicable Rate, which can range from 0.875% to 1.70% for LIBOR loans and from 0% to 0.70% for Base Rate loans, depending on our current credit rating. As of December 31, 2017, we were able to borrow under the bank credit facility with the additional applicable rate of 1.50% for LIBOR Loans and 0.50% for Base Rate Loans, with facility fees of 0.25% on the $250 million of the bank credit facility.

On February 14, 2018, we entered into a second amended and restated credit agreement (the Amended Credit Agreement) with an expiration date of April 14, 2023. The Amended Credit Agreement increases our revolving line of credit to $380 million, which may be increased by up to an additional $420 million. It also includes a sublimit of $75 million for the issuance of standby letters of credit and a sublimit of $25 million for swing line loans. Usage under either or both subfacilities reduces availability under the revolving line of credit. Pricing is consistent with the 2014 amended and restated credit agreement. The interest coverage ratio and leverage ratio financial covenants are unchanged. The limitation on timberland acre sales was eliminated.
v3.8.0.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2017
Derivative Instrument Detail [Abstract]  
Derivative Instruments

NOTE 10.  DERIVATIVE INSTRUMENTS

From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks.

Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset or liability to a particular risk, such as interest rate risk, are considered fair value hedges. We have three fair value interest rate swaps with notional amounts totaling $14.3 million associated with our medium-term notes. The fair value swaps convert interest payments with fixed rates ranging between 8.88% and 8.89% to a variable rate of 3-month LIBOR plus a spread of 6.17%. Our fair value swaps terminate at various dates in the first quarter of 2018. A $50 million notional fair value swap associated with our senior notes was terminated in December 2017 at a cost of $0.4 million. The termination cost has been recorded as a reduction to the carrying value of our long-term debt and will be amortized to earnings through the original maturity date of November 2019. Approximately $0.2 million will be recorded as interest expense over the next twelve months.

Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. We have one interest rate swap with a notional amount of $27.5 million associated with $27.5 million of term loan debt. The cash flow hedge converts a variable rate of 2.15% plus 3-month LIBOR to a fixed rate of 3.88% and terminates in February 2026. Our cash flow hedge is expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedge. Therefore, changes in the fair value of the interest rate swap are recorded as a component of other comprehensive income and will be recognized in earnings when the hedged interest rate affects earnings. Changes in the fair value of the ineffective portion are recognized immediately in earnings. There has been no impact on earnings due to ineffectiveness to date. As of December 31, 2017, the amount of net losses expected to be reclassified into earnings in the next 12 months is inconsequential.

Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, commodity price movements or other identified risks, but do not meet the strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly into income. In April 2017, we entered into a lumber price swap to fix the price on a total of 36 million board feet (MMBF) of southern yellow pine. The lumber price swap expired on December 31, 2017, resulting in a realized gain of $1.1 million for the period then ended.

The fair values of our cash flow and fair value derivative instruments on our Consolidated Balance Sheets as of December 31 are as follows: 

 

 

 

 

 

Asset Derivatives

 

 

 

 

Liability Derivatives

 

(Dollars in thousands)

 

Location

 

2017

 

 

2016

 

 

Location

 

2017

 

 

2016

 

Derivatives designated in fair value hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

Other assets, current

 

$

13

 

 

$

32

 

 

 

 

$

—

 

 

$

—

 

Interest rate contracts

 

Other assets,

non-current

 

 

 

 

 

 

215

 

 

Other long-term obligations

 

 

 

 

 

 

91

 

 

 

 

 

$

13

 

 

$

247

 

 

 

 

$

—

 

 

$

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated in cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

Other assets,

non-current

 

$

1,156

 

 

$

1,148

 

 

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table details the effect of derivatives on our Consolidated Statements of Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Location

 

2017

 

 

2016

 

 

2015

 

Derivatives designated in fair value hedging relationships:

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on interest rate contracts1

 

Interest expense

 

$

413

 

 

$

805

 

 

$

1,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated in cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) recognized in other comprehensive income, net of tax (effective portion)

 

 

 

$

(145

)

 

$

916

 

 

$

—

 

Loss reclassified from accumulated other comprehensive income (effective portion)1

 

Interest expense

 

$

(149

)

 

$

(215

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Lumber price contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on lumber price swap

 

Gain on lumber price swap

 

$

1,088

 

 

$

—

 

 

$

—

 

 

1

Realized gains and losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Consolidated Statements of Cash Flows.
v3.8.0.1
Financial Instruments
 12 Months Ended
Dec. 31, 2017
Derivative Instrument Detail [Abstract]  
Financial Instruments

NOTE 11.  FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Estimated fair values of our financial instruments as of December 31 are as follows: 

 

 

 

2017

 

 

2016

 

(Dollars in thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Cash and cash equivalents (Level 1)

 

$

120,457

 

 

$

120,457

 

 

$

82,584

 

 

$

82,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets related to interest rate

   swaps (Level 2)

 

$

1,169

 

 

$

1,169

 

 

$

1,395

 

 

$

1,395

 

Derivative liabilities related to interest rate

   swaps (Level 2)

 

$

—

 

 

$

—

 

 

$

(91

)

 

$

(91

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, including current portion (Level 2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loans

 

$

(343,500

)

 

$

(345,222

)

 

$

(349,500

)

 

$

(350,909

)

Senior notes

 

 

(149,528

)

 

 

(161,063

)

 

 

(149,271

)

 

 

(164,250

)

Revenue bonds

 

 

(65,735

)

 

 

(63,967

)

 

 

(65,735

)

 

 

(62,205

)

Medium-term notes

 

 

(17,250

)

 

 

(18,227

)

 

 

(22,250

)

 

 

(23,926

)

Total long-term debt1

 

$

(576,013

)

 

$

(588,479

)

 

$

(586,756

)

 

$

(601,290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company owned life insurance (COLI) (Level 3)

 

$

1,996

 

 

$

1,996

 

 

$

70

 

 

$

70

 

 

1

The carrying amount of long-term debt includes principal and unamortized discounts.

A framework has been established for measuring fair value, which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below.

Level 1 inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in   active markets.

Level 2 inputs to the valuation methodology include:

 

•

quoted prices for similar assets or liabilities in active markets;

 

•

quoted prices for identical or similar assets or liabilities in inactive markets;

 

•

inputs other than quoted prices that are observable for the asset or liability; and

 

•

inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

If the asset or liability has a specified (contractual) term, the Level 2 input must correspond to substantially the full term of the asset or liability.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 

•

For cash and cash-equivalents, the carrying amount approximates fair value due to the short-term nature of these financial instruments.

 

•

The fair value of the interest rate swaps was determined using discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate forward curves.

 

•

The fair value of our long-term debt is estimated based upon the quoted market prices for the same or similar debt issues, or estimated based on average market prices for comparable debt when there is no quoted market price.

 

•

The contract value of our COLI, the amount at which it could be redeemed, is used to estimate fair value because market prices are not readily available.

COMPANY OWNED LIFE INSURANCE

We are the beneficiary of insurance policies on the lives of certain current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our Consolidated Balance Sheets. COLI expense and income are included in selling, general and administrative expenses and interest expense, respectively, in the Consolidated Statements of Income. The net effect of these amounts on income was not significant for the years ended December 31, 2017, 2016 and 2015. Cash receipts and disbursements are recorded as investing activities in the Consolidated Statements of Cash Flows.
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits
 12 Months Ended
Dec. 31, 2017
General Discussion Of Pension And Other Postretirement Benefits [Abstract]  
Savings Plans, Pension Plans and Other Postretirement Employee Benefits

NOTE 12.  SAVINGS PLANS, PENSION PLANS AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

SAVINGS PLANS

Substantially all of our employees are eligible to participate in 401(k) savings plans. In 2017, 2016 and 2015, we made matching 401(k) contributions on behalf of our employees of $2.4 million, $2.1 million and $2.1 million, respectively.

Certain eligible employees who earn awards under our annual incentive plan are permitted to defer receipt of those awards. These employees may defer receipt of a minimum of 50% and a maximum of 100% of the award pursuant to rules established under our Management Deferred Compensation Plan. Eligible employees may also defer up to 50% of their base salary under the Management Deferred Compensation Plan. At the employee's election, deferrals may be deemed invested in a company stock unit account, a directed investment account with certain deemed investments available under the 401(k) Plan or a combination of these investment vehicles. If company stock units are elected, dividend equivalents are credited to the units.

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

On January 1, 2011, we froze our pension plans to any new salaried and hourly non-represented employees hired after that date.

Effective January 1, 2010, we restructured our other postretirement benefit plans (OPEB). The level of health care subsidy was frozen for retirees so that all future increments in health care costs will be borne by the retirees. In addition, for retirees under age 65, a high deductible medical plan was created and all other existing health care plans were terminated. For retirees age 65 or over, the medical plan is divided into two components, with the company continuing to self-insure prescription drugs and providing a fully-insured medical supplemental plan through AARP/United Healthcare. Both health care plans require the retiree to contribute amounts in excess of the company subsidy in order to continue coverage. Finally, vision, dental and life insurance coverage for these retirees were terminated. The effect of these retiree plan changes was a reduction in the accumulated postretirement benefit obligation of $76.7 million, which was recognized in Accumulated Other Comprehensive Loss as of December 31, 2009 and will be amortized through 2019.

We use a December 31 measurement date for our benefit plans and obligations. We recognize the underfunded status of our defined benefit pension plans and OPEB obligations on our Consolidated Balance Sheets. We recognize changes in the funded status in the year in which changes occur through accumulated other comprehensive income and amortize actuarial gains and losses through the Consolidated Statements of Income as net periodic cost (benefit).

The change in benefit obligation, change in plan assets and funded status for company-sponsored benefit plans and obligations are as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Benefit obligation at beginning of year

 

$

(385,461

)

 

$

(382,071

)

 

$

(33,337

)

 

$

(35,471

)

Service cost

 

 

(6,753

)

 

 

(6,508

)

 

 

(14

)

 

 

(14

)

Interest cost

 

 

(16,096

)

 

 

(17,020

)

 

 

(1,262

)

 

 

(1,421

)

Actuarial (loss) gain

 

 

(15,876

)

 

 

(13,997

)

 

 

471

 

 

 

(313

)

Benefits paid

 

 

31,815

 

 

 

34,135

 

 

 

3,793

 

 

 

3,882

 

Benefit obligation at end of year

 

$

(392,371

)

 

$

(385,461

)

 

$

(30,349

)

 

$

(33,337

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

289,675

 

 

$

292,200

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

49,158

 

 

 

28,626

 

 

 

—

 

 

 

—

 

Employer contributions and benefit payments

 

 

6,844

 

 

 

2,984

 

 

 

3,794

 

 

 

3,882

 

Benefits paid

 

 

(31,815

)

 

 

(34,135

)

 

 

(3,794

)

 

 

(3,882

)

Fair value of plan assets at end of year

 

$

313,862

 

 

$

289,675

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

(1,629

)

 

$

(1,824

)

 

$

(3,705

)

 

$

(4,015

)

Noncurrent liabilities

 

 

(76,880

)

 

 

(93,962

)

 

 

(26,644

)

 

 

(29,322

)

Funded status

 

$

(78,509

)

 

$

(95,786

)

 

$

(30,349

)

 

$

(33,337

)

 

The accumulated benefit obligation for all defined benefit pension plans is determined using the actuarial present value of the vested benefits to which the employee is currently entitled and the employee’s expected date of separation for retirement and was $389.6 million and $379.5 million at December 31, 2017 and 2016, respectively.

PENSION ASSETS

We utilize formal investment policy guidelines for our company-sponsored pension plan assets. Management’s responsibility is that the investment policy and guidelines are adhered to and the investment objectives are met.

The general policy states that plan assets will be invested to seek the greatest return consistent with the fiduciary character of the pension funds and to allow the plans to meet the need for timely pension benefit payments. The specific investment guidelines stipulate that management will maintain adequate liquidity for meeting expected benefit payments by reviewing, on a timely basis, contribution and benefit payment levels and appropriately revise long-term and short-term asset allocations. Management takes reasonable and prudent steps to preserve the value of pension fund assets and to avoid the risk of large losses. Major steps taken to provide this protection include the following:

 

•

Assets are diversified among various asset classes, such as domestic equities, global equities, fixed income, convertible securities and liquid reserves. The long-term asset allocation ranges are as follows:

 

Domestic and international equities

24%

-

48%

Fixed income securities

38%

-

58%

Alternatives, which may include equities and fixed income securities

12%

-

18%

Cash and cash equivalents

0%

-

5%

 

 

•

Periodic reviews of allocations within these ranges are made to determine what adjustments should be made based on changing economic and market conditions and specific liquidity requirements.

 

•

Assets are managed by professional investment managers and may be invested in separately managed accounts or commingled funds. Assets are diversified by selecting different investment managers for each asset class and by limiting assets under each manager to no more than 25% of the total pension fund.

 

•

Assets are not invested in Potlatch stock.

The investment guidelines also provide that the individual investment managers are expected to achieve a reasonable rate of return over a market cycle. Emphasis will be placed on long-term performance versus short-term market aberrations. Factors to be considered in determining reasonable rates of return include performance achieved by a diverse cross section of other investment managers, performance of commonly used benchmarks (e.g., Russell 2500 Index, Barclays Long Credit Index, Morgan Stanley Capital International Index), actuarial assumptions for return on plan investments and specific performance guidelines given to individual investment managers.

The asset allocations of the pension benefit plans’ assets at December 31 by asset category are as follows:

 

 

 

Pension Plans

 

Asset Category

 

 

2017

 

 

 

2016

 

Domestic and international equities

 

 

37

%

 

 

36

%

Fixed income securities

 

 

47

 

 

 

48

 

Other (includes cash and cash equivalents and alternatives)

 

 

16

 

 

 

16

 

Total

 

 

100

%

 

 

100

%

 

The pension assets are stated at fair value. Refer to Note 11: Financial Instruments for a discussion of the framework used to measure fair value.

Following is a description of the valuation methodologies used for assets measured at fair value:

 

•

Level 1 assets include cash and cash equivalents, corporate common and preferred stocks with quoted market prices on major securities markets, and investments in registered investment company funds for which market quotations are generally readily available on the primary market or exchange on which they are traded.

 

•

Level 2 assets consist primarily of collective investment trust funds, which are valued at their respective net asset value (NAV) and fully redeemable in the near-term.

 

•

Investments in funds that may not be fully redeemed in the near-term are generally classified in Level 3. We had no Level 3 investments at December 31, 2017 or 2016.

Fair value measurements are as follows:

 

(Dollars in thousands)

 

December 31, 2017

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

3,004

 

 

$

—

 

 

$

3,004

 

Domestic equity securities1

 

 

29,178

 

 

 

28,382

 

 

 

57,560

 

International equity securities2

 

 

—

 

 

 

28,413

 

 

 

28,413

 

Emerging markets3

 

 

12

 

 

 

29,245

 

 

 

29,257

 

Fixed income securities4

 

 

148,833

 

 

 

—

 

 

 

148,833

 

Alternatives5

 

 

—

 

 

 

46,795

 

 

 

46,795

 

Total

 

$

181,027

 

 

$

132,835

 

 

$

313,862

 

 

(Dollars in thousands)

 

December 31, 2016

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

2,845

 

 

$

—

 

 

$

2,845

 

Domestic equity securities1

 

 

25,409

 

 

 

26,279

 

 

 

51,688

 

International equity securities2

 

 

—

 

 

 

26,555

 

 

 

26,555

 

Emerging markets3

 

 

12

 

 

 

26,391

 

 

 

26,403

 

Fixed income securities4

 

 

138,897

 

 

 

—

 

 

 

138,897

 

Alternatives5

 

 

—

 

 

 

43,287

 

 

 

43,287

 

Total

 

$

167,163

 

 

$

122,512

 

 

$

289,675

 

 

1

Level 1 assets are managed investments in U.S. small/mid-cap equities that track the Russell 2500 Growth index or Russell 2500 Value index. Level 2 assets are collective investments, which are invested in U.S. large-cap equities that track the S&P 500.

2

Level 2 assets are collective investments in equity funds of developed markets outside of the United States and Canada that track the MSCI EAFE Value index or MSCI EAFE Growth index.

3

Level 1 assets are mutual funds which are invested in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index. Level 2 assets are collective investments in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index.

4

Level 1 assets are mutual funds and investments in a diversified portfolio of fixed income instruments of varying maturities representing corporates, sovereign debt, U.S. treasuries and municipals that track the Barclay's Long-term Credit index.

5

Level 2 assets are collective investments in inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed income securities, foreign currencies, securities of natural resource companies, master limited partnerships, publicly listed infrastructure companies, floating-rate debt, securities of global agriculture companies and securities of global timber companies.

PLAN ACTIVITY

Pre-tax components of net periodic cost (benefit) recognized in our Consolidated Statements of Income were as follows:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Service cost

 

$

6,753

 

 

$

6,508

 

 

$

6,159

 

 

$

14

 

 

$

14

 

 

$

22

 

Interest cost

 

 

16,096

 

 

 

17,020

 

 

 

17,012

 

 

 

1,262

 

 

 

1,421

 

 

 

1,456

 

Expected return on plan assets

 

 

(18,406

)

 

 

(18,999

)

 

 

(20,804

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

288

 

 

 

518

 

 

 

605

 

 

 

(8,877

)

 

 

(8,877

)

 

 

(9,312

)

Amortization of actuarial loss

 

 

14,484

 

 

 

16,339

 

 

 

17,937

 

 

 

1,537

 

 

 

1,717

 

 

 

2,047

 

Net periodic cost (benefit)

 

$

19,215

 

 

$

21,386

 

 

$

20,909

 

 

$

(6,064

)

 

$

(5,725

)

 

$

(5,787

)

 

Other amounts recognized in our Consolidated Statements of Comprehensive Income were as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Net amount at beginning of year

 

$

120,627

 

 

$

128,244

 

 

$

134,261

 

 

$

(9,182

)

 

$

(13,741

)

 

$

(15,869

)

Amounts arising during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (gain) loss

 

 

(14,874

)

 

 

4,370

 

 

 

8,680

 

 

 

(471

)

 

 

313

 

 

 

(3,777

)

Taxes

 

 

3,869

 

 

 

(1,704

)

 

 

(3,386

)

 

 

121

 

 

 

(122

)

 

 

1,473

 

Net amount arising during the period

 

 

(11,005

)

 

 

2,666

 

 

 

5,294

 

 

 

(350

)

 

 

191

 

 

 

(2,304

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service (cost) credit

 

 

(288

)

 

 

(518

)

 

 

(605

)

 

 

8,877

 

 

 

8,877

 

 

 

9,312

 

Amortization of actuarial loss

 

 

(14,484

)

 

 

(16,339

)

 

 

(17,937

)

 

 

(1,537

)

 

 

(1,717

)

 

 

(2,047

)

Taxes

 

 

5,761

 

 

 

6,574

 

 

 

7,231

 

 

 

(2,863

)

 

 

(2,792

)

 

 

(2,833

)

Net reclassifications during the period

 

 

(9,011

)

 

 

(10,283

)

 

 

(11,311

)

 

 

4,477

 

 

 

4,368

 

 

 

4,432

 

Net amount at end of year

 

$

100,611

 

 

$

120,627

 

 

$

128,244

 

 

$

(5,055

)

 

$

(9,182

)

 

$

(13,741

)

 

Amounts recognized in accumulated other comprehensive loss on our Consolidated Balance Sheets, net of tax, consist of:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

 

2017

 

 

 

2016

 

Net loss

 

$

100,070

 

 

$

120,006

 

 

$

10,165

 

 

$

8,778

 

Prior service cost (credit)

 

 

541

 

 

 

621

 

 

 

(15,220

)

 

 

(17,960

)

Net amount recognized

 

$

100,611

 

 

$

120,627

 

 

$

(5,055

)

 

$

(9,182

)

 

The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year are $16.6 million and $0.2 million, respectively. The estimated net loss and prior service credit for OPEB obligations that will be amortized from accumulated other comprehensive loss into net periodic benefit over the next year are $1.4 million and $8.9 million, respectively.

EXPECTED FUNDING AND BENEFIT PAYMENTS

We are required to make contributions of $10.1 million to our qualified pension plans in 2018. Our non-qualified pension plan and other postretirement employee benefit plans are unfunded and benefit payments are paid from our general assets. We estimate that we will make non-qualified pension plan and other postretirement employee benefit payments of $5.3 million in 2018, which are included below.

Estimated future benefit payments, which reflect expected future service are as follows for the years indicated:

 

(Dollars in thousands)

 

Pension Plans

 

 

OPEB

 

2018

 

$

28,536

 

 

$

3,704

 

2019

 

$

28,264

 

 

$

3,454

 

2020

 

$

27,951

 

 

$

3,231

 

2021

 

$

27,588

 

 

$

2,944

 

2022

 

$

27,255

 

 

$

2,760

 

2022–2026

 

$

128,115

 

 

$

10,557

 

 

ACTUARIAL ASSUMPTIONS

The weighted average assumptions used to determine the benefit obligation as of December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Discount rate

 

 

3.85

%

 

 

4.40

%

 

 

4.65

%

 

 

3.65

%

 

 

4.10

%

 

 

4.25

%

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 

 

 

—

 

 

The weighted average assumptions used to determine the net periodic cost (benefit) for the years ended December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Discount rate

 

 

4.40

%

 

 

4.65

%

 

 

4.25

%

 

 

4.10

%

 

 

4.25

%

 

 

3.90

%

Expected return on plan assets

 

 

6.50

%

 

 

6.50

%

 

 

6.75

%

 

 

—

 

 

 

—

 

 

 

—

 

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 

 

 

—

 

 

The discount rate used in the determination of pension and other postretirement employee benefit obligations was calculated using hypothetical bond portfolios to match the expected benefit payments under each of our pension plans and other postretirement employee benefit obligations based on bonds available at each year-end with a rating of "AA" or better. The portfolios were well-diversified over corporate industrial, corporate financial, municipal, federal and foreign government issuers.

The expected return on plan assets assumption is based upon an analysis of historical long-term returns for various investment categories, as measured by appropriate indices. These indices are weighted based upon the extent to which plan assets are invested in the particular categories in arriving at our determination of a composite expected return. The expected rate of return assumption that will be used to determine net periodic cost for 2018 is 6.25%.

A decrease in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would increase net periodic cost. A 25 basis point decrease in the pension discount rate would increase net periodic cost by approximately $0.7 million in 2018 and increase the projected benefit obligation by approximately $10.3 million as of December 31, 2018. A 25 basis point decrease in the assumption for the expected return on plan assets would increase net periodic cost by approximately $0.7 million in 2018. The actual rates of return on plan assets may, and do, vary significantly from the assumption used. A 25 basis point decrease in the OPEB discount rate would be de minimis to the annual net periodic cost.

The assumed health care cost trend rate used to calculate other postretirement employee benefit obligations as of December 31, 2017 was 8.38% for a certain group of participants under age 65 in our hourly plan and our Arkansas participants covered by a collective bargaining agreement, grading ratably to an assumption of 4.50% in 2038. The actual rates of health care cost increases may vary significantly from the assumption used because of unanticipated changes in health care costs.

A one percentage point change in the health care cost trend rates would have the following effects on our December 31, 2017 Consolidated Financial Statements:

 

(Dollars in thousands)

 

1% Increase

 

 

1% Decrease

 

Effect on total service cost plus interest cost

 

$

28

 

 

$

(24

)

Effect on accumulated postretirement benefit obligation

 

$

443

 

 

$

(373

)

 
v3.8.0.1
Components of Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2017
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss

NOTE 13. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables detail the changes in our accumulated other comprehensive loss (AOCL) on our Condensed Consolidated Balance Sheets for the years ended December 31, 2017 and 2016, net of tax.

(Dollars in thousands)

 

Gains and losses on cash flow hedge

 

 

Pension Plans

 

 

OPEB

 

 

Total

 

Balance at January 1, 2017

 

$

(701

)

 

$

120,627

 

 

$

(9,182

)

 

$

110,744

 

Amounts arising during the period

 

 

145

 

 

 

(11,005

)

 

 

(350

)

 

 

(11,210

)

Amounts reclassified from AOCL

 

 

(149

)

 

 

(9,011

)

 

 

4,477

 

 

 

(4,683

)

Net change

 

 

(4

)

 

 

(20,016

)

 

 

4,127

 

 

 

(15,893

)

Balance at December 31, 2017

 

$

(705

)

 

$

100,611

 

 

$

(5,055

)

 

$

94,851

 

 

(Dollars in thousands)

 

Gains and losses on cash flow hedge

 

 

Pension Plans

 

 

OPEB

 

 

Total

 

Balance at January 1, 2016

 

$

—

 

 

$

128,244

 

 

$

(13,741

)

 

$

114,503

 

Amounts arising during the period

 

 

(916

)

 

 

2,666

 

 

 

191

 

 

 

1,941

 

Amounts reclassified from AOCL

 

 

215

 

 

 

(10,283

)

 

 

4,368

 

 

 

(5,700

)

Net change

 

 

(701

)

 

 

(7,617

)

 

 

4,559

 

 

 

(3,759

)

Balance at December 31, 2016

 

$

(701

)

 

$

120,627

 

 

$

(9,182

)

 

$

110,744

 

Amounts in parenthesis indicate credits.

See Note 10: Derivative Instruments and Note 12: Pension and Other Postretirement Employee Benefits for additional information.
v3.8.0.1
Equity-Based Compensation Plans
 12 Months Ended
Dec. 31, 2017
Share Based Compensation [Abstract]  
Equity-Based Compensation Plans

NOTE 14.  EQUITY-BASED COMPENSATION PLANS

As of December 31, 2017, we had two stock incentive plans under which performance stock awards (PSAs), restricted stock units (RSUs) and deferred compensation stock equivalent units were outstanding. All of these plans have received shareholder approval. We were originally authorized to issue up to 1.6 million shares and 1.0 million shares under our 2005 Stock Incentive Plan and 2014 Stock Incentive Plan, respectively. At December 31, 2017, approximately 0.4 million shares were authorized for future awards. We issue new shares of common stock to settle PSAs, RSUs and deferred compensation stock equivalent units. We estimate forfeitures each period.

The following table details our compensation expense and the related income tax benefit as of December 31:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Employee equity-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Performance stock awards

 

$

3,582

 

 

$

3,437

 

 

$

3,877

 

Restricted stock units

 

 

1,140

 

 

 

953

 

 

 

881

 

Total employee equity-based compensation expense

 

$

4,722

 

 

$

4,390

 

 

$

4,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation stock equivalent units expense

 

$

657

 

 

$

732

 

 

$

376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total tax benefit recognized for shared-based payment awards

 

$

379

 

 

$

317

 

 

$

319

 

 

PERFORMANCE STOCK AWARDS

PSAs granted under the stock incentive plans have a three-year performance period and shares are issued at the end of the period if the performance measures are met. The performance measures are based on the percentile ranking of our total shareholder return relative to the total shareholder return performance of both a selected peer group of companies and a larger group of indexed companies over the three-year performance period. The number of shares actually issued, as a percentage of the amount subject to the PSA, could range from 0% to 200%. PSAs granted under our stock incentive plans do not have voting rights unless and until shares are issued upon settlement. If shares are issued at the end of the three-year performance measurement period, the recipients will receive dividend equivalents in the form of additional shares at the time of payment equal to the dividends that would have been paid on the shares earned had the recipients owned the shares during the three-year period. Therefore, the shares are not considered participating securities.

A Monte Carlo simulation method is used to estimate the stock prices of Potlatch and the selected peer companies at the end of the three-year performance period. The expected volatility of each company’s stock price and covariance of returns among the peer companies are key assumptions within the Monte Carlo simulation. Historical volatility over a term similar to the performance period is considered a reasonable proxy for forecasted volatility. Likewise, because the returns of Potlatch and the peer group companies are correlated, the covariance, a measure of how two variables tend to move together, is calculated over a historical term similar to the performance period and applied in the simulations. The simulations use the stock prices of Potlatch and the peer group of companies as of the award date as a starting point. Multiple simulations are generated, resulting in share prices and total shareholder return values for Potlatch and the peer group of companies. For each simulation, the total shareholder return of Potlatch is ranked against that of the peer group of companies. The future value of the performance share unit is calculated based on a multiplier for the percentile ranking and then discounted to present value. The discount rate is the risk-free rate as of the award date for a term consistent with the performance period. Awards are also credited with dividend equivalents at the end of the performance period, and as a result, award values are not adjusted for dividends.

The following table presents the key inputs used in calculating the fair value of the PSAs in 2017, 2016 and 2015, and the resulting fair values:

 

 

 

2017

 

 

2016

 

 

2015

 

Stock price as of valuation date

 

$

43.60

 

 

$

25.92

 

 

$

40.00

 

Risk-free rate

 

 

1.61

%

 

 

0.88

%

 

 

1.07

%

Expected volatility

 

 

24.22

%

 

 

23.82

%

 

 

21.09

%

Expected dividends

 

 

3.44

%

 

 

5.79

%

 

 

3.75

%

Expected term (years)

 

 

3.00

 

 

 

3.00

 

 

 

3.00

 

Fair value of a performance share

 

$

53.85

 

 

$

30.02

 

 

$

36.71

 

 

The following table summarizes outstanding PSAs as of December 31, 2017, 2016 and 2015, and the changes during those years:

 

 

 

2017

 

 

2016

 

 

2015

 

(Dollars in thousands, except per share amounts)

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested shares outstanding at January 1

 

 

203,788

 

 

$

32.59

 

 

 

161,049

 

 

$

41.26

 

 

 

160,233

 

 

$

53.86

 

Granted

 

 

78,033

 

 

$

53.85

 

 

 

125,469

 

 

$

30.02

 

 

 

78,974

 

 

$

36.71

 

Vested

 

 

(78,129

)

 

$

36.71

 

 

 

(82,730

)

 

$

45.57

 

 

 

(77,078

)

 

$

62.78

 

Forfeited

 

 

(3,061

)

 

$

34.68

 

 

 

—

 

 

$

—

 

 

 

(1,080

)

 

$

41.29

 

Unvested shares outstanding at December 31

 

 

200,631

 

 

$

39.19

 

 

 

203,788

 

 

$

32.59

 

 

 

161,049

 

 

$

41.26

 

Total grant date fair value of share awards

   vested during the year

 

$

2,868

 

 

 

 

 

 

$

3,770

 

 

 

 

 

 

$

4,839

 

 

 

 

 

Aggregate intrinsic value of unvested share

   awards at December 31

 

$

10,011

 

 

 

 

 

 

$

8,488

 

 

 

 

 

 

$

4,697

 

 

 

 

 

 

As of December 31, 2017, there was $4.0 million of unrecognized compensation cost related to unvested PSAs, which is expected to be recognized over a weighted average period of 1.4 years.

RESTRICTED STOCK UNITS

Our 2005 Stock Incentive Plan and 2014 Stock Incentive Plan also allow for awards to be issued in the form of RSU grants. During 2017, 2016 and 2015, certain officers and other employees of the company were granted RSU awards that will accrue dividend equivalents based on dividends paid during the RSU vesting period. The dividend equivalents will be converted into additional RSUs that will vest in the same manner as the underlying RSUs to which they relate. Therefore, the shares are not considered participating securities. The terms of the awards state that the RSUs will vest in a given time period of one to three years, and the terms of certain awards follow a vesting schedule within the given time period.

The following table summarizes outstanding RSU awards as of December 31, 2017, 2016 and 2015, and the changes during those years:

 

 

 

2017

 

 

2016

 

 

2015

 

(Dollars in thousands, except per share amounts)

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested shares outstanding at January 1

 

 

71,420

 

 

$

31.61

 

 

 

44,531

 

 

$

40.95

 

 

 

32,455

 

 

$

42.24

 

Granted

 

 

26,507

 

 

$

43.64

 

 

 

43,320

 

 

$

26.08

 

 

 

27,820

 

 

$

39.99

 

Vested

 

 

(29,039

)

 

$

39.65

 

 

 

(16,431

)

 

$

39.92

 

 

 

(15,385

)

 

$

44.50

 

Forfeited

 

 

(1,017

)

 

$

31.63

 

 

 

—

 

 

$

—

 

 

 

(359

)

 

$

40.27

 

Unvested shares outstanding at December 31

 

 

67,871

 

 

$

32.87

 

 

 

71,420

 

 

$

31.61

 

 

 

44,531

 

 

$

40.95

 

Total grant date fair value of RSU awards

   vested during the year

 

$

1,151

 

 

 

 

 

 

$

656

 

 

 

 

 

 

$

289

 

 

 

 

 

Aggregate intrinsic value of unvested RSU

   awards at December 31

 

$

3,387

 

 

 

 

 

 

$

2,975

 

 

 

 

 

 

$

1,347

 

 

 

 

 

 

As of December 31, 2017, there was $1.1 million of total unrecognized compensation cost related to outstanding RSU awards, which is expected to be recognized over a weighted average period of 1.4 years.

DEFERRED COMPENSATION STOCK EQUIVALENT UNITS

A long-term incentive award is granted annually to our directors, and payable upon a director's separation from service. Directors may also elect to defer their annual retainers, payable in the form of stock. All stock unit equivalent accounts are credited with dividend equivalents. As of December 31, 2017, there were 141,938 shares outstanding that will be distributed in the future to directors as common stock.

Issuance of restricted stock units awarded to certain officers and employees may also be deferred. All stock unit equivalent accounts are credited with dividend equivalents. As of December 31, 2017, there were 74,067 RSUs which had vested, but issuance of the related stock had been deferred.
v3.8.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 15.  INCOME TAXES

As a REIT, we generally are not subject to federal and state corporate income taxes on income from investments in real estate that we distribute to our shareholders. We are required to pay federal and state corporate income taxes on income from our non-real estate investments which are held in taxable REIT subsidiaries (TRS). These activities are principally comprised of our wood products manufacturing operations and certain real estate investments held for sale.

As of January 1, 2016, we are no longer subject to corporate income taxes on built-in gains, the excess of fair market value over tax basis, on sales of real property held at the time of our REIT conversion.

On December 22, 2017, H.R. 1, Tax Cuts and Jobs Act (the Act) was enacted and included broad tax reforms. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21% effective January 1, 2018, which required a remeasurement of our deferred tax assets and liabilities as of the date of enactment. Accordingly, net deferred tax assets, including the related valuation allowance, were reduced by $10.7 million and the change was recorded as an increase to the 2017 tax provision.

Income tax expense consists of the following for the years ended December 31:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Current

 

$

16,657

 

 

$

(6,178

)

 

$

128

 

Deferred

 

 

14,325

 

 

 

2,143

 

 

 

1,097

 

Net operating loss carryforwards

 

 

1,039

 

 

 

(290

)

 

 

(6,793

)

Income tax provision (benefit)

 

$

32,021

 

 

$

(4,325

)

 

$

(5,568

)

 

Income tax expense differs from the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes due to the following for the years ended December 31:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

U.S. federal statutory income tax

 

$

41,466

 

 

$

2,314

 

 

$

9,151

 

REIT income not subject to federal income tax

 

 

(20,651

)

 

 

(7,199

)

 

 

(14,110

)

U.S. tax rate change on deferred tax assets and liabilities

 

 

10,528

 

 

 

—

 

 

 

—

 

Intercompany profit-in-inventory elimination adjustment

 

 

—

 

 

 

1,465

 

 

 

—

 

Change in valuation allowance

 

 

140

 

 

 

162

 

 

 

488

 

State income taxes, net of federal income tax

 

 

2,608

 

 

 

(740

)

 

 

(838

)

Domestic production activities deduction

 

 

(1,511

)

 

 

(2

)

 

 

—

 

Permanent book-tax differences

 

 

(252

)

 

 

(218

)

 

 

(70

)

Research and development credits

 

 

(294

)

 

 

(689

)

 

 

—

 

All other items

 

 

(13

)

 

 

582

 

 

 

(189

)

Income tax provision (benefit)

 

$

32,021

 

 

$

(4,325

)

 

$

(5,568

)

Effective tax rate

 

 

27.0

%

 

 

(65.4

%)

 

 

(21.3

%)

 

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:

 

(Dollars in thousands)

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Pensions

 

$

19,439

 

 

$

37,423

 

Other postretirement employee benefits

 

 

7,891

 

 

 

13,002

 

Net operating loss carryforwards

 

 

54

 

 

 

983

 

Inventories

 

 

353

 

 

 

443

 

Tax credits

 

 

2,443

 

 

 

2,207

 

Nondeductible accruals

 

 

2,566

 

 

 

2,067

 

Incentive compensation

 

 

1,131

 

 

 

1,643

 

Employee benefits

 

 

1,037

 

 

 

1,444

 

Other

 

 

88

 

 

 

120

 

Total deferred tax assets

 

 

35,002

 

 

 

59,332

 

Valuation allowance

 

 

(790

)

 

 

(650

)

Deferred tax assets, net of valuation allowance

 

 

34,212

 

 

 

58,682

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Timber and timberlands, net

 

 

(1,432

)

 

 

(2,165

)

Property, plant and equipment, net

 

 

(12,683

)

 

 

(14,018

)

Other

 

 

(301

)

 

 

(448

)

Total deferred tax liabilities

 

 

(14,416

)

 

 

(16,631

)

Deferred tax assets, net

 

$

19,796

 

 

$

42,051

 

 

As of December 31, 2017, we had no federal net operating loss carryforwards; state net operating loss and capital loss carryforwards were $1.2 million that expire from 2021 through 2030; and Idaho Investment Tax Credits were $3.1 million that expire from 2019 through 2031. We use the flow-through method of accounting for investment tax credits.

With the exception of the valuation allowance discussed below, we believe it is more likely than not that we will have sufficient future taxable income to realize our deferred tax assets.

Due to the impact of the change in federal rate under the Act, the valuation allowance on our deferred tax assets increased during 2017 by $0.1 million, and was $0.8 million as of December 31, 2017. The valuation allowance is related to certain Idaho Investment Tax Credit carryforwards we expect will expire prior to realization. During 2016, the valuation allowance increased from $0.5 to $0.7 million due to the actual use and expected future use of certain Idaho Investment Tax Credits.

The following table summarizes the tax years subject to examination by major taxing jurisdictions: 

 

Jurisdiction

 

Years

Federal

 

2013 — 2017

Arkansas

 

2014 — 2017

Michigan

 

2013 — 2017

Minnesota

 

2013 — 2017

Idaho

 

2014 — 2017

 

As of December 31, 2017, we had $0.6 million of unrecognized tax benefits which, if recognized, would impact the effective tax rate. There was $0.9 unrecognized tax benefits at December 31, 2016 and no unrecognized tax benefits at December 31, 2015. We currently believe there is a reasonable possibility that the amounts of unrecognized tax benefits will significantly decrease in the next 12 months based on the closing of certain ongoing state tax examinations.

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:

 

(Dollars in thousands)

 

2017

 

 

2016

 

Balance at January 1

 

$

850

 

 

$

—

 

Additions for tax positions of prior years

 

 

8

 

 

 

850

 

Reduction for tax positions of prior years

 

 

(294

)

 

 

—

 

Balance at December 31

 

$

564

 

 

$

850

 

We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For the years ended December 31, 2017, 2016 and 2015, we recognized insignificant amounts related to interest and penalties in our tax provision. At December 31, 2017 and 2016, we had insignificant amounts of accrued interest related to tax obligations and no accrued interest receivable with respect to open tax refunds.
v3.8.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 16.  COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

We have operating leases primarily for office space, machinery and equipment expiring at various dates through 2033. We expect that most leases will be renewed or replaced in the normal course of business as they expire.

As of December 31, 2017, the future minimum rental payments required under our operating leases are as follows: 

 

(Dollars in thousands)

 

 

 

 

2018

 

$

4,570

 

2019

 

 

3,518

 

2020

 

 

2,662

 

2021

 

 

1,771

 

2022

 

 

874

 

2023 and thereafter

 

 

992

 

Total

 

$

14,387

 

 

Operating lease expense was $4.5 million, $4.2 million and $4.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

LEGAL MATTERS

In January 2007, the Environmental Protection Agency (EPA) notified us that we are a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Clean Water Act for cleanup of a site known as Avery Landing in northern Idaho. At the time we owned a portion of the land at the Avery Landing site, which we acquired in 1980 from the Milwaukee Railroad. The land we owned at the site and adjacent properties were contaminated with petroleum as a result of the Milwaukee Railroad's operations at the site prior to 1980. On July 5, 2011, the EPA issued an Action Memorandum for the Avery Landing site selecting contaminant extraction and off-site disposal as the remedial alternative. On May 23, 2012, we signed a consent order with the EPA pursuant to which we agreed to provide $1.75 million in funding for EPA cleanup on a portion of our property (including the adjacent riverbank owned by the Idaho Department of Lands). The EPA cleanup was completed in October 2012. On April 4, 2013, the EPA issued a unilateral administrative order requiring us to remediate the portion of the Avery Landing site that we owned. Our remediation was completed in October 2013. On September 25, 2015, the EPA sent us a letter asserting that the EPA and the Department of Transportation (the current owner of a portion of the adjacent property remediated by the EPA) (DOT) had incurred $9.8 million in unreimbursed response costs associated with the site and that we were liable for such costs. We have executed six tolling agreements with the EPA and DOT suspending the statute of limitations on the claim until March 31, 2018 in order to facilitate negotiations of a final settlement and release. We accrued $0.2 million for this matter in the first quarter of 2016, an additional $0.8 million in the second quarter of 2016 and an additional $5.0 million in the third quarter of 2017. On February 9, 2018, we executed a Consent Decree with the United States, acting on behalf of the Environmental Protection Agency and Department of Transportation, settling the United States’ claims against us for $6 million. On February 12, 2018 the United States filed a lawsuit against us in the United States District Court for the District of Idaho and lodged the Consent Decree with the Court. The United States will publish a Notice of Lodging of the Consent Decree in the Federal Register and after the expiration of a required 30-day public comment period, will advise the Court whether the Consent Decree may be entered. If the Consent Decree is not approved by the Court following the 30-day public comment period, we reserve all defenses to liability and the right to pursue all potentially responsible parties.
v3.8.0.1
Segment Information
 12 Months Ended
Dec. 31, 2017
Segment Reporting Information Additional Information [Abstract]  
Segment Information

NOTE 17.  SEGMENT INFORMATION

Our businesses are organized into three reportable operating segments: Resource, Wood Products and Real Estate. Management activities include planting and harvesting trees and building and maintaining roads. The Resource segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights leases, biomass production and carbon sequestration. The Wood Products segment manufactures and markets lumber and plywood. The business of our Real Estate segment consists primarily of the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives. The Real Estate segment engages in limited real estate subdivision activities through Potlatch TRS.

The reporting segments follow the same accounting policies used for our Consolidated Financial Statements, as described in the summary of significant accounting policies, with the exception of the valuation of inventories. All segment inventories are reported using the average cost method, and the LIFO reserve is recorded at the corporate level. Management evaluates a segment’s performance based upon profit or loss from operations before income taxes. Intersegment revenues are recorded based on prevailing market prices.

The following table presents business segment information for each of the past three years. Corporate information is included to reconcile segment data to the Consolidated Financial Statements.

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

278,199

 

 

$

256,163

 

 

$

263,875

 

Wood Products

 

 

441,157

 

 

 

367,426

 

 

 

336,214

 

Real Estate

 

 

30,655

 

 

 

32,604

 

 

 

28,989

 

 

 

 

750,011

 

 

 

656,193

 

 

 

629,078

 

Intersegment Resource revenues1

 

 

(71,416

)

 

 

(57,094

)

 

 

(53,742

)

Total consolidated revenues

 

$

678,595

 

 

$

599,099

 

 

$

575,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

106,105

 

 

$

81,918

 

 

$

76,350

 

Wood Products

 

 

72,166

 

 

 

24,587

 

 

 

(5,235

)

Real Estate2

 

 

18,576

 

 

 

(29,495

)

 

 

16,849

 

Eliminations and adjustments

 

 

(2,705

)

 

 

(3,001

)

 

 

3,283

 

 

 

 

194,142

 

 

 

74,009

 

 

 

91,247

 

Corporate

 

 

(48,619

)

 

 

(38,455

)

 

 

(32,340

)

Operating income

 

 

145,523

 

 

 

35,554

 

 

 

58,907

 

Interest expense, net

 

 

(27,049

)

 

 

(28,941

)

 

 

(32,761

)

Income before income taxes

 

$

118,474

 

 

$

6,613

 

 

$

26,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

20,476

 

 

$

24,090

 

 

$

28,807

 

Wood Products

 

 

7,347

 

 

 

7,357

 

 

 

6,810

 

Real Estate

 

 

2

 

 

 

4

 

 

 

56

 

 

 

 

27,825

 

 

 

31,451

 

 

 

35,673

 

Corporate

 

 

607

 

 

 

760

 

 

 

951

 

Bond discount and deferred loan fees

 

 

1,480

 

 

 

1,979

 

 

 

1,481

 

Total depreciation, depletion and amortization

 

$

29,912

 

 

$

34,190

 

 

$

38,105

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

7,114

 

 

$

8,518

 

 

$

7,394

 

Elimination and adjustments

 

 

(287

)

 

 

(507

)

 

 

(382

)

Total basis of real estate sold

 

$

6,827

 

 

$

8,011

 

 

$

7,012

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Resource and Real Estate3

 

$

670,240

 

 

$

662,852

 

 

$

837,630

 

Wood Products

 

 

154,479

 

 

 

150,855

 

 

 

131,103

 

 

 

 

824,719

 

 

 

813,707

 

 

 

968,733

 

Corporate

 

 

128,360

 

 

 

113,974

 

 

 

47,879

 

Total consolidated assets

 

$

953,079

 

 

$

927,681

 

 

$

1,016,612

 

Capital Expenditures:4

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

15,120

 

 

$

13,311

 

 

$

13,497

 

Wood Products

 

 

10,723

 

 

 

5,491

 

 

 

18,482

 

Real Estate

 

 

87

 

 

 

111

 

 

 

184

 

 

 

 

25,930

 

 

 

18,913

 

 

 

32,163

 

Corporate

 

 

2,132

 

 

 

375

 

 

 

569

 

Total capital expenditures

 

$

28,062

 

 

$

19,288

 

 

$

32,732

 

 

1

Intersegment revenues are based on prevailing market prices of logs sold by our Resource segment to the Wood Products segment.

2

In the second quarter of 2016, we sold approximately 172,000 acres of timberlands located in central Idaho for $114 million at a loss of $48.5 million before taxes.

3

Assets are shown on a combined basis for the Resource and Real Estate segments, as we do not report assets separately to management for these segments.

4

Excludes the acquisition of timber and timberlands.

All of our wood products facilities and all other assets are located within the continental United States. Geographic information regarding our revenues is as follows:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

United States

 

$

676,956

 

 

$

597,899

 

 

$

573,398

 

Canada

 

 

481

 

 

 

173

 

 

 

851

 

Mexico

 

 

1,158

 

 

 

1,027

 

 

 

919

 

Other

 

 

—

 

 

 

—

 

 

 

168

 

Total consolidated revenues

 

$

678,595

 

 

$

599,099

 

 

$

575,336

 

 

One customer within our Resource segment accounted for slightly more than 10% of our total consolidated revenues in the years ended December 31, 2017, 2016 and 2015.
v3.8.0.1
Financial Results by Quarter (Unaudited)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Data [Abstract]  
Financial Results by Quarter (Unaudited)

NOTE 18.  FINANCIAL RESULTS BY QUARTER (UNAUDITED)

 

 

 

Three Months Ended

 

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

(Dollars in thousands, except per share amounts)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

$

149,681

 

 

$

127,896

 

 

$

163,229

 

 

$

141,495

 

 

$

190,441

 

 

$

174,027

 

 

$

175,244

 

 

$

155,681

 

Operating income (loss)

 

$

23,909

 

 

$

5,072

 

 

$

40,773

 

 

$

(34,228

)

 

$

43,793

 

 

$

38,994

 

 

$

37,048

 

 

$

25,716

 

Net income (loss)

 

$

16,921

 

 

$

157

 

 

$

24,244

 

 

$

(31,238

)

 

$

33,700

 

 

$

27,646

 

 

$

11,588

 

 

$

14,373

 

Net income (loss) per share1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.41

 

 

$

—

 

 

$

0.59

 

 

$

(0.77

)

 

$

0.83

 

 

$

0.68

 

 

$

0.28

 

 

$

0.35

 

Diluted

 

$

0.41

 

 

$

—

 

 

$

0.59

 

 

$

(0.77

)

 

$

0.82

 

 

$

0.68

 

 

$

0.28

 

 

$

0.35

 

 

1

Per share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the total computed for the year.

 

Our Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission, include the quarterly results for the first nine months of each respective year. During the fourth quarter of 2017, we incurred $3.4 million in merger-related costs associated with the pending merger with Deltic. See Note 2: Pending Merger with Deltic for additional information.

v3.8.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
General

GENERAL

We are primarily engaged in activities associated with timberland management, including the sale of timber, the management of approximately 1.4 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacture and sale of wood products. Our timberlands and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a Real Estate Investment Trust (REIT) effective January 1, 2006.
Consolidation

CONSOLIDATION

The Consolidated Financial Statements include the accounts of Potlatch Corporation and its subsidiaries after the elimination of intercompany transactions and accounts. There are no unconsolidated subsidiaries.
Significant Estimates

SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, which we refer to in this report as U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.

Significant estimates include timber volumes, pension and postretirement obligation assumptions, contingent liabilities and the fair value of derivative instruments. These significant estimates are described in further detail below.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents are investments that are highly liquid with maturities of three months or less when purchased.

Inventories

INVENTORIES

For most of our operations, the last-in, first-out method is used to determine the cost of logs, lumber and plywood. The average cost method is used to determine the cost of all other inventories. Inventories are stated at the lower of cost or net realizable value. Expenses associated with idle capacity or other curtailments of production are reflected in cost of goods sold in the periods incurred.
Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are valued at cost less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method of depreciation.

Major improvements and replacements of property are capitalized. Maintenance, repairs and minor improvements and replacements are expensed. Upon retirement or other disposition of property, applicable cost and accumulated depreciation are removed from the accounts. Any gains or losses are included in earnings.
Timber and Timberlands

TIMBER AND TIMBERLANDS

Timber and timberlands are valued at cost less accumulated depletion and amortization. We capitalize costs related to stand establishment, which include the preparation of the land for planting, seeds or seedlings and tree planting costs, which include third-party labor costs, materials and other contract services. Upon completion of planting activities and field inspection to confirm the planting operation was successful, a plantation will be considered “established.”

Subsequent expenditures to maintain the integrity or enhance the growth of an established plantation or stand are expensed. Post-establishment expenses include vegetation control, fertilization, thinning operations and the replanting of seedlings lost through mortality. Forest management costs are considered current operating expenses and include property taxes and insurance, silviculture costs incurred subsequent to stand establishment, cruising (physical inventory), property maintenance, salaries, supplies, travel, record-keeping, fire protection and other normal recurring administrative personnel costs.

Timberland acquisitions are capitalized based on the relative appraised values of timberland, merchantable sawlogs, merchantable pulpwood, pre-production timber (young growth that is not yet merchantable timber), logging roads and other land improvements.

The estimated volume of current standing merchantable timber inventory, which is a component of calculating our depletion rates, is updated at least annually to reflect increases due to the reclassification of pre-production timber to merchantable timber when it meets defined diameter specifications, the annual growth of merchantable timber and the acquisition of additional merchantable timber, decreases due to timber harvests and land sales and changes resulting from other factors, such as environmental or casualty losses. Timber volumes are estimated from cruises of the timber tracts, which are completed on our timberlands on approximately a five to ten year cycle.

Depletion represents the amount charged to expense as timber is harvested. Rates at which timber is depleted are calculated annually for each of our depletion pools by dividing the beginning of year balance of the merchantable timber accounts by the forest inventory volume, after inventory updates.

The base cost of logging roads, such as clearing, grading and ditching, is not amortized and remains a capitalized item until disposition. Other portions of the initial logging road cost, such as bridges, culverts and gravel surfacing are amortized over their useful lives, which range from 5 to 20 years. Costs associated with temporary logging road spurs, which are typically used for one harvest season, are expensed as incurred.
Real Estate Sales

REAL ESTATE SALES

Sales of non-core timberland are considered to be part of our normal operations. We therefore classify revenue and costs associated with real estate sold in revenues and cost of goods sold, respectively, in our Consolidated Statements of Income. Cash generated from real estate sales is included as an operating activity in our Consolidated Statements of Cash Flows.

Sales of large parcels of property, such as our sale of central Idaho timberlands in 2016, which do not represent our core operations and are of such a size as to not be indicative of our ongoing operations, are presented as a net gain or loss in our Consolidated Statements of Income. Cash generated from these sales is included as an investing activity in our Consolidated Statements of Cash Flows.
Long-Lived Assets

LONG-LIVED ASSETS

Our long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as measured by its undiscounted estimated future cash flows. We use our operational budgets to estimate future cash flows. The estimates are adjusted periodically to reflect changing business conditions. Impaired assets are written down to fair value. Assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

We recognize a liability and an asset equal to the fair value of our legal obligations to perform asset retirement activities if the amount can be reasonably estimated. We review these obligations annually and do not expect them to have a material effect on our financial position, results of operations or cash flows.
Income Taxes

INCOME TAXES

We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. We recognize the effect of a change in income tax rates on deferred tax assets and liabilities in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income in the period that includes the enactment date of the rate change. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such deferred tax assets will not be realized.
Revenue Recognition

REVENUE RECOGNITION

We recognize revenue from the sale of timber when risk of loss transfers to the buyer and the quantity sold is determinable. These sales usually take the form of delivered logs, pay-as-cut stumpage contracts, lump sum stumpage contracts or timber deeds. On delivered log sales, revenue includes amounts billed for logging and hauling and is recognized at the point the logs are delivered and scaled. Revenue is recognized on timber deeds and lump sum stumpage contracts generally upon closing or when the contracts are effective, which is the point at which the buyer assumes risk of loss associated with the standing timber.

We recognize revenue from the sale of manufactured wood products and residual by-products when there is persuasive evidence of a sales agreement, the price to the customer is fixed and determinable, collection is reasonably assured and title and the risk of loss passes to the customer. Shipping terms generally indicate when title and the risk of loss have passed. Revenue is recognized at shipment when shipping terms are FOB (free on board) shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer.

We receive cash consideration in full and recognize revenue at closing on substantially all of our real estate sales.

While sales taxes are not typical, in the event sales taxes are collected, revenue is recognized net of any sales tax and sales taxes are recorded as a current liability and remitted to the appropriate governmental entities.

Costs for shipping and handling are included in cost of goods sold in our Consolidated Statements of Income.
Equity-Based Compensation

EQUITY-BASED COMPENSATION

Equity-based awards are measured at fair value on the dates they are granted or modified. These measurements establish the cost of the equity-based awards for accounting purposes. The cost of the equity-based award is then recognized in the Consolidated Statements of Income over each employee’s required service period. See Note 14: Equity-Based Compensation Plans for more information about our equity-based compensation.
New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which changes several aspects of the accounting for share-based payment award transactions, including accounting for income taxes, diluted shares outstanding, classification of excess tax benefits on the statement of cash flows, forfeitures and minimum statutory tax withholding requirements. We prospectively adopted the provisions of this ASU on January 1, 2017, which include recording the tax effects related to share-based payments through the income statement. As a Real Estate Investment Trust (REIT), we are generally not subject to federal and state corporate income taxes, except through our taxable REIT subsidiaries. Therefore, the adoption of this guidance was not material to our consolidated financial statements. We will continue to estimate forfeitures each period. We consider many factors when estimating expected forfeitures, including types of awards, employee class and historical experience.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU No. 2014-09), which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 also included other guidance, including the presentation of a gain or loss recognized on the sale of a long-lived asset or a nonfinancial asset. Subsequent ASUs have been issued that provide clarity, technical corrections and improvements to ASU No. 2014-09. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, which deferred the effective date of ASU No. 2014-09 by one year. ASU No. 2014-09 is effective for us on January 1, 2018. For most of our sales, which consist of logs, manufactured wood products, residual by-products and real estate, we have identified no change to the timing or amount of revenue recognized because our contracts are legally enforceable, the transaction price is fixed and performance obligations are satisfied at a point in time, typically with control transferring to the buyer when risk of loss and title pass. For our other sales, which include stumpage contracts, timber deeds, land use permits and royalties, we have also identified no change to the timing or amount of revenue recognized. We will have minor refinements to our controls over financial reporting as a result of this ASU. Our expanded disclosures will disaggregate revenues along the lines of the sales categories mentioned above. The guidance permits a retrospective application of the new standard with certain practical expedients (contracts completed within the same annual reporting period need not be restated and other allowances for contracts with variable consideration) or retrospective application with a cumulative effect adjustment to the beginning balance of retained earnings. Upon adoption of this ASU on January 1, 2018, if there is a difference in the amount of revenue recorded for any of the prior reporting periods presented, we will record a cumulative adjustment to retained earnings in the first quarter of 2018. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an entity to present service cost within compensation expense and the other components of net benefit cost outside of income from operations. This ASU is effective for us on January 1, 2018. The amendments in this update require retrospective presentation in the income statement. Changes to the capitalized portion of both service cost and the other components of net benefit cost within inventory will be applied prospectively. In 2017, net periodic pension and other postretirement employee benefit cost reported within operating income totaled $13.2 million of which $6.8 million represented service cost.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, the income tax consequence of an intra-entity asset transfer was not recognized until the asset was sold to an outside party. This amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. This ASU is effective for us on January 1, 2018. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business. The standard provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or a business. This ASU is effective for us on January 1, 2018 on a prospective basis.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities, which simplifies and expands the application of hedge accounting. ASU 2017-12 requires that when a hedge is deemed effective, hedge accounting must be applied to the entire change in fair value of the hedging instrument eliminating the notion of ineffective portions of the hedge relationship.  The entire change in the fair value of the hedging instrument will be recorded in the same income statement line item as the hedged item and the ineffective portion will no longer be separately recognized in earnings. This ASU is effective for us on January 1, 2019, with early application permitted in any interim period. The presentation and disclosure guidance are required prospectively upon adoption. Our cash flow hedges currently have no ineffectiveness, but in the event they did, as of the beginning of the fiscal year that we adopt this ASU, a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness would be recorded to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which, among other things, requires lessees to recognize most leases on the balance sheet. We have operating leases covering office space, equipment and vehicles expiring at various dates through 2033, which would require a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, to be recognized in the statement of financial position. Lease costs would generally continue to be recognized on a straight-line basis. We expect our right-of-use asset and lease liability will approximate our current future minimum lease payments required under our operating leases, which were $14.4 million at December 31, 2017. The ASU is effective for us on January 1, 2019.

In February 2018, the FASB issued ASU No. 2018-2, Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the December 22, 2017, H.R. 1, Tax Cuts and Jobs Act (the Act). See Note 15: Income Taxes for additional information regarding the Act. This ASU is effective for us on January 1, 2019, with early adoption permitted. We expect to adopt this ASU on January 1, 2018 and elect to reclassify the income tax effects of the Act on pension and other postretirement employee benefits and a cash flow hedge within accumulated other comprehensive loss to accumulated deficit. Accordingly, at March 31, 2018, accumulated other comprehensive loss will increase by approximately $20 million and the change will be recorded as a decrease to accumulated deficit.
Reclassification

RECLASSIFICATIONS

Prior year environmental charges for Avery Landing within the Consolidated Statements of Income have been reclassified to conform to the 2017 presentation. There was no change to revenues, cost of goods sold, operating income or net income.

Prior year receivables not due from customers within the Consolidated Balance Sheets have been reclassified to other current assets to conform to the 2017 presentation. There was no change to previously reported total current assets. See Note 7: Other Current Assets for additional information.

Certain 2016 and 2015 amounts within cash flows from operations on the Consolidated Statements of Cash Flows have been reclassified to conform to the 2017 presentation. There was no change to previously reported net cash from operating, investing or financing activities.
v3.8.0.1
Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2017
Earnings Per Share Basic Other Disclosures [Abstract]  
Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted EPS

The following table reconciles the number of shares used in calculating the basic and diluted earnings per share for the years ended December 31:

 

(Dollars in thousands, except per share amounts)

 

2017

 

 

2016

 

 

2015

 

Net income

 

$

86,453

 

 

$

10,938

 

 

$

31,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding

 

 

40,824,420

 

 

 

40,797,806

 

 

 

40,842,126

 

Incremental shares due to:

 

 

 

 

 

 

 

 

 

 

 

 

Performance shares

 

 

362,509

 

 

 

200,164

 

 

 

122,334

 

Restricted stock units

 

 

40,459

 

 

 

35,470

 

 

 

23,359

 

Diluted weighted-average shares outstanding

 

 

41,227,388

 

 

 

41,033,440

 

 

 

40,987,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

2.12

 

 

$

0.27

 

 

$

0.78

 

Diluted net income per share

 

$

2.10

 

 

$

0.27

 

 

$

0.77

 

 
v3.8.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Schedule of Inventories

(Dollars in thousands)

 

2017

 

 

2016

 

Logs

 

$

20,133

 

 

$

23,342

 

Lumber, plywood and veneer

 

 

20,889

 

 

 

20,500

 

Materials and supplies

 

 

9,110

 

 

 

8,780

 

 

 

$

50,132

 

 

$

52,622

 

Valued at lower of cost or net realizable value:

 

 

 

 

 

 

 

 

Last-in, first-out basis

 

$

25,127

 

 

$

29,769

 

Average cost basis

 

 

25,005

 

 

 

22,853

 

Total inventories

 

$

50,132

 

 

$

52,622

 

 
v3.8.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2017
Property Plant And Equipment [Abstract]  
Schedule of Property, Plant and Equipment

(Dollars in thousands)

Range of useful lives

 

2017

 

 

2016

 

Land

 

 

$

4,707

 

 

$

4,712

 

Buildings and improvements

10-40 years

 

 

55,734

 

 

 

54,448

 

Machinery and equipment

2-25 years

 

 

197,648

 

 

 

190,316

 

Construction in progress

 

 

 

1,348

 

 

 

1,437

 

 

 

 

 

259,437

 

 

 

250,913

 

Less: accumulated depreciation

 

 

 

(182,208

)

 

 

(178,093

)

Total property, plant and equipment, net

 

 

$

77,229

 

 

$

72,820

 

 
v3.8.0.1
Timber and Timberlands(Tables)
 12 Months Ended
Dec. 31, 2017
Timber And Timberlands [Abstract]  
Schedule of Timber and Timberlands

(Dollars in thousands)

 

2017

 

 

2016

 

Timber and timberlands

 

$

581,648

 

 

$

572,273

 

Logging roads

 

 

72,828

 

 

 

69,583

 

Total timber and timberlands, net

 

$

654,476

 

 

$

641,856

 

 
Schedule of Future Payments Due Under Timber Cutting Contracts

Future payments due under timber cutting contracts as of December 31, 2017 are as follows:

 

(Dollars in thousands)

 

 

 

 

2018

 

$

11,280

 

2019

 

 

2,730

 

2020

 

 

1,085

 

2021

 

 

5,370

 

2022

 

 

281

 

Total

 

$

20,746

 

 
v3.8.0.1
Other Current Assets (Tables)
 12 Months Ended
Dec. 31, 2017
Other Assets [Abstract]  
Schedule of Other Current Assets

 

(Dollars in thousands)

 

2017

 

 

2016

 

Real estate held for sale

 

$

7,721

 

 

$

9,184

 

Prepaid expenses

 

 

2,862

 

 

 

1,939

 

Other receivables

 

 

882

 

 

 

2,442

 

Interest rate swaps

 

 

13

 

 

 

32

 

Total other current assets

 

$

11,478

 

 

$

13,597

 

 
v3.8.0.1
Accounts Payable and Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2017
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities

(Dollars in thousands)

 

2017

 

 

2016

 

Accrued payroll and benefits

 

$

18,110

 

 

$

13,634

 

Accounts payable

 

 

9,361

 

 

 

8,382

 

Accrued interest

 

 

6,385

 

 

 

6,237

 

Avery Landing accrual

 

 

6,000

 

 

 

1,022

 

Accrued taxes

 

 

5,103

 

 

 

4,956

 

Other current liabilities

 

 

10,242

 

 

 

9,479

 

Total accounts payable and accrued liabilities

 

$

55,201

 

 

$

43,710

 

 
v3.8.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments

(Dollars in thousands)

 

2017

 

 

2016

 

Term loans

 

$

343,500

 

 

$

349,500

 

Senior notes

 

 

150,000

 

 

 

150,000

 

Revenue bonds

 

 

65,735

 

 

 

65,735

 

Medium-term notes

 

 

17,250

 

 

 

22,250

 

Long-term principal

 

 

576,485

 

 

 

587,485

 

Interest rate swaps

 

 

(373

)

 

 

247

 

Debt issuance costs

 

 

(2,321

)

 

 

(3,015

)

Unamortized discounts

 

 

(472

)

 

 

(729

)

Total long-term debt (includes current portion)

 

 

573,319

 

 

 

583,988

 

Less current portion of long-term debt

 

 

(14,263

)

 

 

(11,032

)

Long-term debt

 

$

559,056

 

 

$

572,956

 

 
Schedule of Maturities of Long-term Debt

Scheduled principal payments due on long-term debt as of December 31, 2017 are as follows:

 

(Dollars in thousands)

 

 

 

 

2018

 

$

14,250

 

2019

 

 

190,000

 

2020

 

 

46,000

 

2021

 

 

40,000

 

2022

 

 

43,000

 

Thereafter

 

 

243,235

 

Total

 

$

576,485

 

 
v3.8.0.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instrument Detail [Abstract]  
Fair Value of Cash Flow and Fair Value Derivative Instruments

The fair values of our cash flow and fair value derivative instruments on our Consolidated Balance Sheets as of December 31 are as follows: 

 

 

 

 

 

Asset Derivatives

 

 

 

 

Liability Derivatives

 

(Dollars in thousands)

 

Location

 

2017

 

 

2016

 

 

Location

 

2017

 

 

2016

 

Derivatives designated in fair value hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

Other assets, current

 

$

13

 

 

$

32

 

 

 

 

$

—

 

 

$

—

 

Interest rate contracts

 

Other assets,

non-current

 

 

 

 

 

 

215

 

 

Other long-term obligations

 

 

 

 

 

 

91

 

 

 

 

 

$

13

 

 

$

247

 

 

 

 

$

—

 

 

$

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated in cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

Other assets,

non-current

 

$

1,156

 

 

$

1,148

 

 

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Effect of Derivatives on Consolidated Statements of Income

The following table details the effect of derivatives on our Consolidated Statements of Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Location

 

2017

 

 

2016

 

 

2015

 

Derivatives designated in fair value hedging relationships:

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on interest rate contracts1

 

Interest expense

 

$

413

 

 

$

805

 

 

$

1,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated in cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) recognized in other comprehensive income, net of tax (effective portion)

 

 

 

$

(145

)

 

$

916

 

 

$

—

 

Loss reclassified from accumulated other comprehensive income (effective portion)1

 

Interest expense

 

$

(149

)

 

$

(215

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

Lumber price contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on lumber price swap

 

Gain on lumber price swap

 

$

1,088

 

 

$

—

 

 

$

—

 

 

1

Realized gains and losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Consolidated Statements of Cash Flows.
v3.8.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instrument Detail [Abstract]  
Estimated Fair Value of Financial Instruments

Estimated fair values of our financial instruments as of December 31 are as follows: 

 

 

 

2017

 

 

2016

 

(Dollars in thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Cash and cash equivalents (Level 1)

 

$

120,457

 

 

$

120,457

 

 

$

82,584

 

 

$

82,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets related to interest rate

   swaps (Level 2)

 

$

1,169

 

 

$

1,169

 

 

$

1,395

 

 

$

1,395

 

Derivative liabilities related to interest rate

   swaps (Level 2)

 

$

—

 

 

$

—

 

 

$

(91

)

 

$

(91

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, including current portion (Level 2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loans

 

$

(343,500

)

 

$

(345,222

)

 

$

(349,500

)

 

$

(350,909

)

Senior notes

 

 

(149,528

)

 

 

(161,063

)

 

 

(149,271

)

 

 

(164,250

)

Revenue bonds

 

 

(65,735

)

 

 

(63,967

)

 

 

(65,735

)

 

 

(62,205

)

Medium-term notes

 

 

(17,250

)

 

 

(18,227

)

 

 

(22,250

)

 

 

(23,926

)

Total long-term debt1

 

$

(576,013

)

 

$

(588,479

)

 

$

(586,756

)

 

$

(601,290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company owned life insurance (COLI) (Level 3)

 

$

1,996

 

 

$

1,996

 

 

$

70

 

 

$

70

 

 

1

The carrying amount of long-term debt includes principal and unamortized discounts.
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2017
General Discussion Of Pension And Other Postretirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations

The change in benefit obligation, change in plan assets and funded status for company-sponsored benefit plans and obligations are as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Benefit obligation at beginning of year

 

$

(385,461

)

 

$

(382,071

)

 

$

(33,337

)

 

$

(35,471

)

Service cost

 

 

(6,753

)

 

 

(6,508

)

 

 

(14

)

 

 

(14

)

Interest cost

 

 

(16,096

)

 

 

(17,020

)

 

 

(1,262

)

 

 

(1,421

)

Actuarial (loss) gain

 

 

(15,876

)

 

 

(13,997

)

 

 

471

 

 

 

(313

)

Benefits paid

 

 

31,815

 

 

 

34,135

 

 

 

3,793

 

 

 

3,882

 

Benefit obligation at end of year

 

$

(392,371

)

 

$

(385,461

)

 

$

(30,349

)

 

$

(33,337

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

289,675

 

 

$

292,200

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

49,158

 

 

 

28,626

 

 

 

—

 

 

 

—

 

Employer contributions and benefit payments

 

 

6,844

 

 

 

2,984

 

 

 

3,794

 

 

 

3,882

 

Benefits paid

 

 

(31,815

)

 

 

(34,135

)

 

 

(3,794

)

 

 

(3,882

)

Fair value of plan assets at end of year

 

$

313,862

 

 

$

289,675

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

(1,629

)

 

$

(1,824

)

 

$

(3,705

)

 

$

(4,015

)

Noncurrent liabilities

 

 

(76,880

)

 

 

(93,962

)

 

 

(26,644

)

 

 

(29,322

)

Funded status

 

$

(78,509

)

 

$

(95,786

)

 

$

(30,349

)

 

$

(33,337

)

 
Schedule of Actual Asset Allocations of the Pension Benefit Plans' Assets

The asset allocations of the pension benefit plans’ assets at December 31 by asset category are as follows:

 

 

 

Pension Plans

 

Asset Category

 

 

2017

 

 

 

2016

 

Domestic and international equities

 

 

37

%

 

 

36

%

Fixed income securities

 

 

47

 

 

 

48

 

Other (includes cash and cash equivalents and alternatives)

 

 

16

 

 

 

16

 

Total

 

 

100

%

 

 

100

%

 
Schedule of Allocation of Plan Assets

Fair value measurements are as follows:

 

(Dollars in thousands)

 

December 31, 2017

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

3,004

 

 

$

—

 

 

$

3,004

 

Domestic equity securities1

 

 

29,178

 

 

 

28,382

 

 

 

57,560

 

International equity securities2

 

 

—

 

 

 

28,413

 

 

 

28,413

 

Emerging markets3

 

 

12

 

 

 

29,245

 

 

 

29,257

 

Fixed income securities4

 

 

148,833

 

 

 

—

 

 

 

148,833

 

Alternatives5

 

 

—

 

 

 

46,795

 

 

 

46,795

 

Total

 

$

181,027

 

 

$

132,835

 

 

$

313,862

 

 

(Dollars in thousands)

 

December 31, 2016

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

2,845

 

 

$

—

 

 

$

2,845

 

Domestic equity securities1

 

 

25,409

 

 

 

26,279

 

 

 

51,688

 

International equity securities2

 

 

—

 

 

 

26,555

 

 

 

26,555

 

Emerging markets3

 

 

12

 

 

 

26,391

 

 

 

26,403

 

Fixed income securities4

 

 

138,897

 

 

 

—

 

 

 

138,897

 

Alternatives5

 

 

—

 

 

 

43,287

 

 

 

43,287

 

Total

 

$

167,163

 

 

$

122,512

 

 

$

289,675

 

 

1

Level 1 assets are managed investments in U.S. small/mid-cap equities that track the Russell 2500 Growth index or Russell 2500 Value index. Level 2 assets are collective investments, which are invested in U.S. large-cap equities that track the S&P 500.

2

Level 2 assets are collective investments in equity funds of developed markets outside of the United States and Canada that track the MSCI EAFE Value index or MSCI EAFE Growth index.

3

Level 1 assets are mutual funds which are invested in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index. Level 2 assets are collective investments in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index.

4

Level 1 assets are mutual funds and investments in a diversified portfolio of fixed income instruments of varying maturities representing corporates, sovereign debt, U.S. treasuries and municipals that track the Barclay's Long-term Credit index.

5

Level 2 assets are collective investments in inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed income securities, foreign currencies, securities of natural resource companies, master limited partnerships, publicly listed infrastructure companies, floating-rate debt, securities of global agriculture companies and securities of global timber companies.

Pre-tax Components of Net Periodic Cost (Benefit)

Pre-tax components of net periodic cost (benefit) recognized in our Consolidated Statements of Income were as follows:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Service cost

 

$

6,753

 

 

$

6,508

 

 

$

6,159

 

 

$

14

 

 

$

14

 

 

$

22

 

Interest cost

 

 

16,096

 

 

 

17,020

 

 

 

17,012

 

 

 

1,262

 

 

 

1,421

 

 

 

1,456

 

Expected return on plan assets

 

 

(18,406

)

 

 

(18,999

)

 

 

(20,804

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

288

 

 

 

518

 

 

 

605

 

 

 

(8,877

)

 

 

(8,877

)

 

 

(9,312

)

Amortization of actuarial loss

 

 

14,484

 

 

 

16,339

 

 

 

17,937

 

 

 

1,537

 

 

 

1,717

 

 

 

2,047

 

Net periodic cost (benefit)

 

$

19,215

 

 

$

21,386

 

 

$

20,909

 

 

$

(6,064

)

 

$

(5,725

)

 

$

(5,787

)

 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Other amounts recognized in our Consolidated Statements of Comprehensive Income were as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Net amount at beginning of year

 

$

120,627

 

 

$

128,244

 

 

$

134,261

 

 

$

(9,182

)

 

$

(13,741

)

 

$

(15,869

)

Amounts arising during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (gain) loss

 

 

(14,874

)

 

 

4,370

 

 

 

8,680

 

 

 

(471

)

 

 

313

 

 

 

(3,777

)

Taxes

 

 

3,869

 

 

 

(1,704

)

 

 

(3,386

)

 

 

121

 

 

 

(122

)

 

 

1,473

 

Net amount arising during the period

 

 

(11,005

)

 

 

2,666

 

 

 

5,294

 

 

 

(350

)

 

 

191

 

 

 

(2,304

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service (cost) credit

 

 

(288

)

 

 

(518

)

 

 

(605

)

 

 

8,877

 

 

 

8,877

 

 

 

9,312

 

Amortization of actuarial loss

 

 

(14,484

)

 

 

(16,339

)

 

 

(17,937

)

 

 

(1,537

)

 

 

(1,717

)

 

 

(2,047

)

Taxes

 

 

5,761

 

 

 

6,574

 

 

 

7,231

 

 

 

(2,863

)

 

 

(2,792

)

 

 

(2,833

)

Net reclassifications during the period

 

 

(9,011

)

 

 

(10,283

)

 

 

(11,311

)

 

 

4,477

 

 

 

4,368

 

 

 

4,432

 

Net amount at end of year

 

$

100,611

 

 

$

120,627

 

 

$

128,244

 

 

$

(5,055

)

 

$

(9,182

)

 

$

(13,741

)

 
Schedule of Accumulated Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive loss on our Consolidated Balance Sheets, net of tax, consist of:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

 

2017

 

 

 

2016

 

Net loss

 

$

100,070

 

 

$

120,006

 

 

$

10,165

 

 

$

8,778

 

Prior service cost (credit)

 

 

541

 

 

 

621

 

 

 

(15,220

)

 

 

(17,960

)

Net amount recognized

 

$

100,611

 

 

$

120,627

 

 

$

(5,055

)

 

$

(9,182

)

 
Schedule of Expected Future Benefit Payments

Estimated future benefit payments, which reflect expected future service are as follows for the years indicated:

 

(Dollars in thousands)

 

Pension Plans

 

 

OPEB

 

2018

 

$

28,536

 

 

$

3,704

 

2019

 

$

28,264

 

 

$

3,454

 

2020

 

$

27,951

 

 

$

3,231

 

2021

 

$

27,588

 

 

$

2,944

 

2022

 

$

27,255

 

 

$

2,760

 

2022–2026

 

$

128,115

 

 

$

10,557

 

 
Weighted Average Assumptions Used to Determine the Benefit Obligation

The weighted average assumptions used to determine the benefit obligation as of December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Discount rate

 

 

3.85

%

 

 

4.40

%

 

 

4.65

%

 

 

3.65

%

 

 

4.10

%

 

 

4.25

%

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 

 

 

—

 

 
Schedule of Weighted Average Assumptions Used to Determine the Net Periodic Cost (Benefit)

The weighted average assumptions used to determine the net periodic cost (benefit) for the years ended December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

 

 

2017

 

 

 

2016

 

 

 

2015

 

Discount rate

 

 

4.40

%

 

 

4.65

%

 

 

4.25

%

 

 

4.10

%

 

 

4.25

%

 

 

3.90

%

Expected return on plan assets

 

 

6.50

%

 

 

6.50

%

 

 

6.75

%

 

 

—

 

 

 

—

 

 

 

—

 

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 

 

 

—

 

 
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the health care cost trend rates would have the following effects on our December 31, 2017 Consolidated Financial Statements:

 

(Dollars in thousands)

 

1% Increase

 

 

1% Decrease

 

Effect on total service cost plus interest cost

 

$

28

 

 

$

(24

)

Effect on accumulated postretirement benefit obligation

 

$

443

 

 

$

(373

)

 
v3.8.0.1
Components of Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2017
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Loss

The following tables detail the changes in our accumulated other comprehensive loss (AOCL) on our Condensed Consolidated Balance Sheets for the years ended December 31, 2017 and 2016, net of tax.

(Dollars in thousands)

 

Gains and losses on cash flow hedge

 

 

Pension Plans

 

 

OPEB

 

 

Total

 

Balance at January 1, 2017

 

$

(701

)

 

$

120,627

 

 

$

(9,182

)

 

$

110,744

 

Amounts arising during the period

 

 

145

 

 

 

(11,005

)

 

 

(350

)

 

 

(11,210

)

Amounts reclassified from AOCL

 

 

(149

)

 

 

(9,011

)

 

 

4,477

 

 

 

(4,683

)

Net change

 

 

(4

)

 

 

(20,016

)

 

 

4,127

 

 

 

(15,893

)

Balance at December 31, 2017

 

$

(705

)

 

$

100,611

 

 

$

(5,055

)

 

$

94,851

 

 

(Dollars in thousands)

 

Gains and losses on cash flow hedge

 

 

Pension Plans

 

 

OPEB

 

 

Total

 

Balance at January 1, 2016

 

$

—

 

 

$

128,244

 

 

$

(13,741

)

 

$

114,503

 

Amounts arising during the period

 

 

(916

)

 

 

2,666

 

 

 

191

 

 

 

1,941

 

Amounts reclassified from AOCL

 

 

215

 

 

 

(10,283

)

 

 

4,368

 

 

 

(5,700

)

Net change

 

 

(701

)

 

 

(7,617

)

 

 

4,559

 

 

 

(3,759

)

Balance at December 31, 2016

 

$

(701

)

 

$

120,627

 

 

$

(9,182

)

 

$

110,744

 

 
v3.8.0.1
Equity-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Share Based Compensation [Abstract]  
Details of Equity-Based Compensation Expense

The following table details our compensation expense and the related income tax benefit as of December 31:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Employee equity-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Performance stock awards

 

$

3,582

 

 

$

3,437

 

 

$

3,877

 

Restricted stock units

 

 

1,140

 

 

 

953

 

 

 

881

 

Total employee equity-based compensation expense

 

$

4,722

 

 

$

4,390

 

 

$

4,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation stock equivalent units expense

 

$

657

 

 

$

732

 

 

$

376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total tax benefit recognized for shared-based payment awards

 

$

379

 

 

$

317

 

 

$

319

 

 
Fair Value of Performance Share Awards

The following table presents the key inputs used in calculating the fair value of the PSAs in 2017, 2016 and 2015, and the resulting fair values:

 

 

 

2017

 

 

2016

 

 

2015

 

Stock price as of valuation date

 

$

43.60

 

 

$

25.92

 

 

$

40.00

 

Risk-free rate

 

 

1.61

%

 

 

0.88

%

 

 

1.07

%

Expected volatility

 

 

24.22

%

 

 

23.82

%

 

 

21.09

%

Expected dividends

 

 

3.44

%

 

 

5.79

%

 

 

3.75

%

Expected term (years)

 

 

3.00

 

 

 

3.00

 

 

 

3.00

 

Fair value of a performance share

 

$

53.85

 

 

$

30.02

 

 

$

36.71

 

 
Summary of Outstanding Performance Share Awards

The following table summarizes outstanding PSAs as of December 31, 2017, 2016 and 2015, and the changes during those years:

 

 

 

2017

 

 

2016

 

 

2015

 

(Dollars in thousands, except per share amounts)

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested shares outstanding at January 1

 

 

203,788

 

 

$

32.59

 

 

 

161,049

 

 

$

41.26

 

 

 

160,233

 

 

$

53.86

 

Granted

 

 

78,033

 

 

$

53.85

 

 

 

125,469

 

 

$

30.02

 

 

 

78,974

 

 

$

36.71

 

Vested

 

 

(78,129

)

 

$

36.71

 

 

 

(82,730

)

 

$

45.57

 

 

 

(77,078

)

 

$

62.78

 

Forfeited

 

 

(3,061

)

 

$

34.68

 

 

 

—

 

 

$

—

 

 

 

(1,080

)

 

$

41.29

 

Unvested shares outstanding at December 31

 

 

200,631

 

 

$

39.19

 

 

 

203,788

 

 

$

32.59

 

 

 

161,049

 

 

$

41.26

 

Total grant date fair value of share awards

   vested during the year

 

$

2,868

 

 

 

 

 

 

$

3,770

 

 

 

 

 

 

$

4,839

 

 

 

 

 

Aggregate intrinsic value of unvested share

   awards at December 31

 

$

10,011

 

 

 

 

 

 

$

8,488

 

 

 

 

 

 

$

4,697

 

 

 

 

 

 
Summary of Outstanding RSU Awards

The following table summarizes outstanding RSU awards as of December 31, 2017, 2016 and 2015, and the changes during those years:

 

 

 

2017

 

 

2016

 

 

2015

 

(Dollars in thousands, except per share amounts)

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted

Average

Grant Date

Fair Value

 

Unvested shares outstanding at January 1

 

 

71,420

 

 

$

31.61

 

 

 

44,531

 

 

$

40.95

 

 

 

32,455

 

 

$

42.24

 

Granted

 

 

26,507

 

 

$

43.64

 

 

 

43,320

 

 

$

26.08

 

 

 

27,820

 

 

$

39.99

 

Vested

 

 

(29,039

)

 

$

39.65

 

 

 

(16,431

)

 

$

39.92

 

 

 

(15,385

)

 

$

44.50

 

Forfeited

 

 

(1,017

)

 

$

31.63

 

 

 

—

 

 

$

—

 

 

 

(359

)

 

$

40.27

 

Unvested shares outstanding at December 31

 

 

67,871

 

 

$

32.87

 

 

 

71,420

 

 

$

31.61

 

 

 

44,531

 

 

$

40.95

 

Total grant date fair value of RSU awards

   vested during the year

 

$

1,151

 

 

 

 

 

 

$

656

 

 

 

 

 

 

$

289

 

 

 

 

 

Aggregate intrinsic value of unvested RSU

   awards at December 31

 

$

3,387

 

 

 

 

 

 

$

2,975

 

 

 

 

 

 

$

1,347

 

 

 

 

 

 
v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of the Income Tax Provision Allocated to Continuing Operations

Income tax expense consists of the following for the years ended December 31:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Current

 

$

16,657

 

 

$

(6,178

)

 

$

128

 

Deferred

 

 

14,325

 

 

 

2,143

 

 

 

1,097

 

Net operating loss carryforwards

 

 

1,039

 

 

 

(290

)

 

 

(6,793

)

Income tax provision (benefit)

 

$

32,021

 

 

$

(4,325

)

 

$

(5,568

)

 
Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes due to the following for the years ended December 31:

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

U.S. federal statutory income tax

 

$

41,466

 

 

$

2,314

 

 

$

9,151

 

REIT income not subject to federal income tax

 

 

(20,651

)

 

 

(7,199

)

 

 

(14,110

)

U.S. tax rate change on deferred tax assets and liabilities

 

 

10,528

 

 

 

—

 

 

 

—

 

Intercompany profit-in-inventory elimination adjustment

 

 

—

 

 

 

1,465

 

 

 

—

 

Change in valuation allowance

 

 

140

 

 

 

162

 

 

 

488

 

State income taxes, net of federal income tax

 

 

2,608

 

 

 

(740

)

 

 

(838

)

Domestic production activities deduction

 

 

(1,511

)

 

 

(2

)

 

 

—

 

Permanent book-tax differences

 

 

(252

)

 

 

(218

)

 

 

(70

)

Research and development credits

 

 

(294

)

 

 

(689

)

 

 

—

 

All other items

 

 

(13

)

 

 

582

 

 

 

(189

)

Income tax provision (benefit)

 

$

32,021

 

 

$

(4,325

)

 

$

(5,568

)

Effective tax rate

 

 

27.0

%

 

 

(65.4

%)

 

 

(21.3

%)

 
Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:

 

(Dollars in thousands)

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Pensions

 

$

19,439

 

 

$

37,423

 

Other postretirement employee benefits

 

 

7,891

 

 

 

13,002

 

Net operating loss carryforwards

 

 

54

 

 

 

983

 

Inventories

 

 

353

 

 

 

443

 

Tax credits

 

 

2,443

 

 

 

2,207

 

Nondeductible accruals

 

 

2,566

 

 

 

2,067

 

Incentive compensation

 

 

1,131

 

 

 

1,643

 

Employee benefits

 

 

1,037

 

 

 

1,444

 

Other

 

 

88

 

 

 

120

 

Total deferred tax assets

 

 

35,002

 

 

 

59,332

 

Valuation allowance

 

 

(790

)

 

 

(650

)

Deferred tax assets, net of valuation allowance

 

 

34,212

 

 

 

58,682

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Timber and timberlands, net

 

 

(1,432

)

 

 

(2,165

)

Property, plant and equipment, net

 

 

(12,683

)

 

 

(14,018

)

Other

 

 

(301

)

 

 

(448

)

Total deferred tax liabilities

 

 

(14,416

)

 

 

(16,631

)

Deferred tax assets, net

 

$

19,796

 

 

$

42,051

 

 
Summary of Tax Years Subject to Examination by Major Taxing Jurisdictions

The following table summarizes the tax years subject to examination by major taxing jurisdictions: 

 

Jurisdiction

 

Years

Federal

 

2013 — 2017

Arkansas

 

2014 — 2017

Michigan

 

2013 — 2017

Minnesota

 

2013 — 2017

Idaho

 

2014 — 2017

 
Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:

 

(Dollars in thousands)

 

2017

 

 

2016

 

Balance at January 1

 

$

850

 

 

$

—

 

Additions for tax positions of prior years

 

 

8

 

 

 

850

 

Reduction for tax positions of prior years

 

 

(294

)

 

 

—

 

Balance at December 31

 

$

564

 

 

$

850

 

 
v3.8.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases

As of December 31, 2017, the future minimum rental payments required under our operating leases are as follows: 

 

(Dollars in thousands)

 

 

 

 

2018

 

$

4,570

 

2019

 

 

3,518

 

2020

 

 

2,662

 

2021

 

 

1,771

 

2022

 

 

874

 

2023 and thereafter

 

 

992

 

Total

 

$

14,387

 

 
v3.8.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting Information Additional Information [Abstract]  
Summary of Information by Business Segment

The following table presents business segment information for each of the past three years. Corporate information is included to reconcile segment data to the Consolidated Financial Statements.

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

278,199

 

 

$

256,163

 

 

$

263,875

 

Wood Products

 

 

441,157

 

 

 

367,426

 

 

 

336,214

 

Real Estate

 

 

30,655

 

 

 

32,604

 

 

 

28,989

 

 

 

 

750,011

 

 

 

656,193

 

 

 

629,078

 

Intersegment Resource revenues1

 

 

(71,416

)

 

 

(57,094

)

 

 

(53,742

)

Total consolidated revenues

 

$

678,595

 

 

$

599,099

 

 

$

575,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

106,105

 

 

$

81,918

 

 

$

76,350

 

Wood Products

 

 

72,166

 

 

 

24,587

 

 

 

(5,235

)

Real Estate2

 

 

18,576

 

 

 

(29,495

)

 

 

16,849

 

Eliminations and adjustments

 

 

(2,705

)

 

 

(3,001

)

 

 

3,283

 

 

 

 

194,142

 

 

 

74,009

 

 

 

91,247

 

Corporate

 

 

(48,619

)

 

 

(38,455

)

 

 

(32,340

)

Operating income

 

 

145,523

 

 

 

35,554

 

 

 

58,907

 

Interest expense, net

 

 

(27,049

)

 

 

(28,941

)

 

 

(32,761

)

Income before income taxes

 

$

118,474

 

 

$

6,613

 

 

$

26,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

20,476

 

 

$

24,090

 

 

$

28,807

 

Wood Products

 

 

7,347

 

 

 

7,357

 

 

 

6,810

 

Real Estate

 

 

2

 

 

 

4

 

 

 

56

 

 

 

 

27,825

 

 

 

31,451

 

 

 

35,673

 

Corporate

 

 

607

 

 

 

760

 

 

 

951

 

Bond discount and deferred loan fees

 

 

1,480

 

 

 

1,979

 

 

 

1,481

 

Total depreciation, depletion and amortization

 

$

29,912

 

 

$

34,190

 

 

$

38,105

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

7,114

 

 

$

8,518

 

 

$

7,394

 

Elimination and adjustments

 

 

(287

)

 

 

(507

)

 

 

(382

)

Total basis of real estate sold

 

$

6,827

 

 

$

8,011

 

 

$

7,012

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Resource and Real Estate3

 

$

670,240

 

 

$

662,852

 

 

$

837,630

 

Wood Products

 

 

154,479

 

 

 

150,855

 

 

 

131,103

 

 

 

 

824,719

 

 

 

813,707

 

 

 

968,733

 

Corporate

 

 

128,360

 

 

 

113,974

 

 

 

47,879

 

Total consolidated assets

 

$

953,079

 

 

$

927,681

 

 

$

1,016,612

 

Capital Expenditures:4

 

 

 

 

 

 

 

 

 

 

 

 

Resource

 

$

15,120

 

 

$

13,311

 

 

$

13,497

 

Wood Products

 

 

10,723

 

 

 

5,491

 

 

 

18,482

 

Real Estate

 

 

87

 

 

 

111

 

 

 

184

 

 

 

 

25,930

 

 

 

18,913

 

 

 

32,163

 

Corporate

 

 

2,132

 

 

 

375

 

 

 

569

 

Total capital expenditures

 

$

28,062

 

 

$

19,288

 

 

$

32,732

 

 

1

Intersegment revenues are based on prevailing market prices of logs sold by our Resource segment to the Wood Products segment.

2

In the second quarter of 2016, we sold approximately 172,000 acres of timberlands located in central Idaho for $114 million at a loss of $48.5 million before taxes.

3

Assets are shown on a combined basis for the Resource and Real Estate segments, as we do not report assets separately to management for these segments.

4

Excludes the acquisition of timber and timberlands.
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

All of our wood products facilities and all other assets are located within the continental United States. Geographic information regarding our revenues is as follows:

 

(Dollars in thousands)

 

2017

 

 

2016

 

 

2015

 

United States

 

$

676,956

 

 

$

597,899

 

 

$

573,398

 

Canada

 

 

481

 

 

 

173

 

 

 

851

 

Mexico

 

 

1,158

 

 

 

1,027

 

 

 

919

 

Other

 

 

—

 

 

 

—

 

 

 

168

 

Total consolidated revenues

 

$

678,595

 

 

$

599,099

 

 

$

575,336

 

 
v3.8.0.1
Financial Results by Quarter (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Financial Information

 

 

Three Months Ended

 

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

(Dollars in thousands, except per share amounts)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

$

149,681

 

 

$

127,896

 

 

$

163,229

 

 

$

141,495

 

 

$

190,441

 

 

$

174,027

 

 

$

175,244

 

 

$

155,681

 

Operating income (loss)

 

$

23,909

 

 

$

5,072

 

 

$

40,773

 

 

$

(34,228

)

 

$

43,793

 

 

$

38,994

 

 

$

37,048

 

 

$

25,716

 

Net income (loss)

 

$

16,921

 

 

$

157

 

 

$

24,244

 

 

$

(31,238

)

 

$

33,700

 

 

$

27,646

 

 

$

11,588

 

 

$

14,373

 

Net income (loss) per share1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.41

 

 

$

—

 

 

$

0.59

 

 

$

(0.77

)

 

$

0.83

 

 

$

0.68

 

 

$

0.28

 

 

$

0.35

 

Diluted

 

$

0.41

 

 

$

—

 

 

$

0.59

 

 

$

(0.77

)

 

$

0.82

 

 

$

0.68

 

 

$

0.28

 

 

$

0.35

 

 

1

Per share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the total computed for the year.

 
v3.8.0.1
Summary of Significant Accounting Policies (Narrative) (Details)
$ in Thousands, a in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
a
Principle Accounting Policies [Line Items]    
Timber And Timberlands Acres Owned | a   1.4
Operating Leases, Future Minimum Payments Due   $ 14,387
Scenario, Forecast [Member]    
Principle Accounting Policies [Line Items]    
Increase in accumulated other comprehensive loss due to change in comprehensive income reporting $ 20,000  
Pension and Other Postretirement Employee Benefit [Member]    
Principle Accounting Policies [Line Items]    
Net periodic pension and other postretirement employee benefit cost   13,200
Service cost   $ 6,800
Timber and Timberlands [Member] | Minimum [Member]    
Principle Accounting Policies [Line Items]    
Timber Volume Estimate, Review Period   5 years
Property, Plant and Equipment, Useful Life   5 years
Timber and Timberlands [Member] | Maximum [Member]    
Principle Accounting Policies [Line Items]    
Timber Volume Estimate, Review Period   10 years
Property, Plant and Equipment, Useful Life   20 years
v3.8.0.1
Pending Merger With Deltic (Narrative) (Details)
shares in Millions, $ in Millions
 12 Months Ended
Oct. 22, 2017
USD ($)
a
shares
Dec. 31, 2017
Business Acquisition [Line Items]    
Date of merger agreement   Oct. 22, 2017
Deltic [Member]    
Business Acquisition [Line Items]    
Business acquisition, share price 180.00%  
Acres of timberland | a 530,000  
Estimated total consideration expected to be issued | shares 22  
Merger termination fee, obligation payable $ 66  
Merger termination fee, obligation receivable $ 33  
Earnings and profits dividend rate or special distribution percentage of stock 80.00%  
Earnings and profits dividend rate or special distribution percentage of cash 20.00%  
v3.8.0.1
Earnings per Share (Reconciliation Of Number Of Common Shares Used In Calculating Basic And Diluted EPS) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings per Share [Line Items]                      
Net income $ 11,588 $ 33,700 $ 24,244 $ 16,921 $ 14,373 $ 27,646 $ (31,238) $ 157 $ 86,453 $ 10,938 $ 31,714
Basic weighted-average shares outstanding                 40,824,420 40,797,806 40,842,126
Diluted weighted-average shares outstanding                 41,227,388 41,033,440 40,987,819
Basic net income per share $ 0.28 [1] $ 0.83 [1] $ 0.59 [1] $ 0.41 [1] $ 0.35 [1] $ 0.68 [1] $ (0.77) [1] $ 0 [1] $ 2.12 $ 0.27 $ 0.78
Diluted net income per share $ 0.28 [1] $ 0.82 [1] $ 0.59 [1] $ 0.41 [1] $ 0.35 [1] $ 0.68 [1] $ (0.77) [1] $ 0 [1] $ 2.10 $ 0.27 $ 0.77
Performance shares [Member]                      
Earnings per Share [Line Items]                      
Incremental shares                 362,509 200,164 122,334
Restricted stock units [Member]                      
Earnings per Share [Line Items]                      
Incremental shares                 40,459 35,470 23,359
[1] Per share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the total computed for the year.
v3.8.0.1
Earnings per Share (Narrative) (Details) - USD ($)
 3 Months Ended 12 Months Ended
Apr. 26, 2016
Jun. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings per Share [Line Items]          
Total anti-dilutive shares excluded from the calculation (in shares)     250 503 0
Stock repurchase program, period 24 months        
Stock repurchase program, remaining authorized amount     $ 54,000,000    
Maximum [Member]          
Earnings per Share [Line Items]          
Stock repurchase program, authorized amount $ 60,000,000        
Common Stock [Member]          
Earnings per Share [Line Items]          
Common stock repurchased and retired, shares   169,625      
Common stock repurchased and retired, average price per share   $ 35.08      
Common stock repurchased, shares     0 169,625  
v3.8.0.1
Inventories (Schedule of Inventories) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]    
Logs $ 20,133 $ 23,342
Lumber, plywood and veneer 20,889 20,500
Materials and supplies 9,110 8,780
Total inventories 50,132 52,622
Last-in, first-out basis 25,127 29,769
Average cost basis $ 25,005 $ 22,853
v3.8.0.1
Inventories (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]      
Last-In, First-Out Reserve $ 10.9 $ 11.1 $ 10.6
v3.8.0.1
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Property Plant And Equipment [Line Items]    
Land $ 4,707 $ 4,712
Buildings and improvements 55,734 54,448
Machinery and equipment 197,648 190,316
Construction in progress 1,348 1,437
Property, Plant and Equipment, Gross 259,437 250,913
Less: accumulated depreciation (182,208) (178,093)
Total property, plant and equipment, net $ 77,229 $ 72,820
Building and Improvements [Member] | Minimum [Member]    
Property Plant And Equipment [Line Items]    
Property, Plant and Equipment, Useful Life 10 years  
Building and Improvements [Member] | Maximum [Member]    
Property Plant And Equipment [Line Items]    
Property, Plant and Equipment, Useful Life 40 years  
Machinery and Equipment [Member] | Minimum [Member]    
Property Plant And Equipment [Line Items]    
Property, Plant and Equipment, Useful Life 2 years  
Machinery and Equipment [Member] | Maximum [Member]    
Property Plant And Equipment [Line Items]    
Property, Plant and Equipment, Useful Life 25 years  
v3.8.0.1
Property, Plant and Equipment (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Property Plant And Equipment [Abstract]      
Depreciation $ 8.1 $ 8.3 $ 8.2
Interest expense capitalized     $ 0.2
v3.8.0.1
Timber and Timberlands (Schedule of Timber and Timberlands) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Timber And Timberlands [Abstract]    
Timber and timberlands $ 581,648 $ 572,273
Logging roads 72,828 69,583
Total timber and timberlands, net $ 654,476 $ 641,856
v3.8.0.1
Timber and Timberlands (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Timber And Timberlands [Abstract]      
Depletion from Company Owned Lands $ 17.0 $ 20.8 $ 25.3
Amortization of Logging Roads $ 3.2 $ 3.1 $ 3.1
v3.8.0.1
Timber and Timberlands (Schedule of Future Payments Due Under Timber Cutting Contracts) (Details)
$ in Thousands
Dec. 31, 2017
USD ($)
Timber And Timberlands [Abstract]  
2018 $ 11,280
2019 2,730
2020 1,085
2021 5,370
2022 281
Total $ 20,746
v3.8.0.1
Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Other Assets [Abstract]    
Real estate held for sale $ 7,721 $ 9,184
Prepaid expenses 2,862 1,939
Other receivables 882 2,442
Interest rate swaps 13 32
Total other current assets $ 11,478 $ 13,597
v3.8.0.1
Accounts Payable and Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Accounts Payable And Accrued Liabilities Current [Abstract]    
Accrued payroll and benefits $ 18,110 $ 13,634
Accounts payable 9,361 8,382
Accrued interest 6,385 6,237
Avery Landing accrual 6,000 1,022
Accrued taxes 5,103 4,956
Other current liabilities 10,242 9,479
Total accounts payable and accrued liabilities $ 55,201 $ 43,710
v3.8.0.1
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Long-term principal $ 576,485 $ 587,485
Debt issuance costs (2,321) (3,015)
Unamortized discounts (472) (729)
Total long-term debt (includes current portion) 573,319 583,988
Less current portion of long-term debt (14,263) (11,032)
Long-term debt 559,056 572,956
Interest Rate Swaps [Member]    
Debt Instrument [Line Items]    
Debt instrument (373) 247
Term Loans [Member]    
Debt Instrument [Line Items]    
Long-term principal 343,500 349,500
Senior Notes [Member]    
Debt Instrument [Line Items]    
Long-term principal 150,000 150,000
Revenue Bonds [Member]    
Debt Instrument [Line Items]    
Long-term principal 65,735 65,735
Medium Term Notes [Member]    
Debt Instrument [Line Items]    
Long-term principal $ 17,250 $ 22,250
v3.8.0.1
Debt (Narrative) (Details)
 12 Months Ended
Dec. 31, 2017
USD ($)
Tranche
Dec. 31, 2016
USD ($)
Dec. 31, 2009
USD ($)
Feb. 14, 2018
USD ($)
Dec. 31, 2014
USD ($)
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 8        
Long-term Debt, Maturities, Repayments of Principal in Year Three $ 46,000,000        
Long-term Debt, Maturities, Repayments of Principal in Year Two 190,000,000        
Long-term Debt, Maturities, Repayment of Principal in Year Four 40,000,000        
Long-term Debt, Maturities, Repayment of Principal in Year Five $ 43,000,000        
Debt instrument maturity date, description due 2018 through 2022        
Amount Available to Increase Borrowing Capacity         $ 250,000,000
Revolving line of credit borrowings $ 0        
Remaining Borrowing Capacity $ 249,100,000        
Scenario, Forecast [Member]          
Debt Instrument [Line Items]          
Amount Available to Increase Borrowing Capacity       $ 420,000,000  
Line of Credit [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity         250,000,000
Additional Applicable Rate Added to Base Rate, Minimum   1.50%      
Additional Applicable Rate Added to Base Rate, At End of Period   0.50%      
Unused Capacity, Commitment Fee Percentage 0.25%        
Line of Credit [Member] | Scenario, Forecast [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity       380,000,000  
Letter of Credit [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity         40,000,000
Line of Credit Facility, Amount Outstanding $ 900,000        
Letter of Credit [Member] | Scenario, Forecast [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity       75,000,000  
Swing Line Loan [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity         $ 25,000,000
Swing Line Loan [Member] | Scenario, Forecast [Member]          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity       $ 25,000,000  
Revenue Bonds [Member]          
Debt Instrument [Line Items]          
Interest Rate   2.75%      
Long-term Debt, refinancing amount   $ 65,700      
Term Loans [Member]          
Debt Instrument [Line Items]          
Repayments of debt 6,000,000        
Senior Notes [Member]          
Debt Instrument [Line Items]          
Interest Rate     7.50%    
Proceeds from Issuance of Debt     $ 150,000,000    
Medium Term Notes [Member]          
Debt Instrument [Line Items]          
Repayments of debt $ 5,000,000        
Minimum [Member] | Medium Term Notes [Member]          
Debt Instrument [Line Items]          
Interest Rate 8.75%        
Maximum [Member] | Medium Term Notes [Member]          
Debt Instrument [Line Items]          
Interest Rate 8.89%        
London Interbank Offered Rate (LIBOR) [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 1.00%        
Federal Fund Rate [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 0.50%        
Eurodollar [Member] | Minimum [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 0.875%        
Eurodollar [Member] | Maximum [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 1.70%        
Base Rate [Member] | Minimum [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 0.00%        
Base Rate [Member] | Maximum [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 0.70%        
Term Loan, Tranche One [Member]          
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 1        
Term Loan, Tranche One [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Long-term Debt, Maturities, Repayments of Principal in Year Three $ 6,000,000        
Term Loan, Tranche One [Member] | Debt Instrument, Redemption, Period Two [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Interest Rate 3.70%        
Term Loan, Tranche Two [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 3        
Long-term Debt, Maturities, Repayments of Principal in Year Three $ 40,000,000        
Long-term Debt, Maturities, Repayments of Principal in Year Two 40,000,000        
Long-term Debt, Maturities, Repayment of Principal in Year Four $ 40,000,000        
Term Loan, Tranche Two [Member] | LIBOR [Member] | Minimum [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 1.65%        
Term Loan, Tranche Two [Member] | LIBOR [Member] | Maximum [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate 1.90%        
Term Loan, Tranche Three [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 2        
Long-term Debt, Maturities, Repayment of Principal in Year Five $ 40,000,000        
Long-term Debt, Maturities, Repayment of Principal in Year Six $ 40,000,000        
Term Loan, Tranche Three [Member] | Debt Instrument, Redemption, Period Two [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Interest Rate 4.49%        
Term Loan, Tranche Three [Member] | Debt Instrument, Redemption, Period One | Term Loans [Member]          
Debt Instrument [Line Items]          
Interest Rate 4.29%        
Term Loan, Tranche Four [Member] | Term Loans [Member]          
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 1        
Long-term Debt, Maturities, Repayment of Principal in Year Seven $ 110,000,000        
Term Loan, Tranche Four [Member] | Debt Instrument, Redemption, Period One | Term Loans [Member]          
Debt Instrument [Line Items]          
Interest Rate 4.64%        
Term Loan, Tranche Five [Member]          
Debt Instrument [Line Items]          
Number of Tranches Included in Term Loan | Tranche 1        
Long-term Debt, Maturities, Repayment of Principal in Year Nine $ 27,500,000        
Term Loan, Tranche Five [Member] | LIBOR [Member]          
Debt Instrument [Line Items]          
Interest Rate 2.15%        
2026 Maturity [Member] | Revenue Bonds [Member]          
Debt Instrument [Line Items]          
Repayments of debt   $ 42,600,000      
Interest Rate   5.90%      
Debt instrument maturity date   2026      
2024 Maturity [Member] | Revenue Bonds [Member]          
Debt Instrument [Line Items]          
Interest Rate   6.00%      
Debt instrument maturity date   2024      
v3.8.0.1
Debt (Scheduled Payments Due on Long-Term Debt) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Long Term Debt By Maturity [Abstract]    
2018 $ 14,250  
2019 190,000  
2020 46,000  
2021 40,000  
2022 43,000  
Thereafter 243,235  
Debt Instrument, Face Amount $ 576,485 $ 587,485
v3.8.0.1
Derivative Instruments (Narrative) (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Dec. 31, 2017
USD ($)
Derivative
Apr. 30, 2017
USD ($)
MMcf
Dec. 31, 2017
USD ($)
Derivative
Interest Rate Swaps [Member]      
Derivatives, Fair Value [Line Items]      
Number of interest rate swap agreements | Derivative 3   3
Notional amounts $ 14.3   $ 14.3
LIBOR variable interest rate 6.17%   6.17%
Derivative, termination term     Fair value swaps terminate at various dates in the first quarter of 2018
Senior Notes $ 50.0   $ 50.0
Derivative original maturity date     Nov. 30, 2019
Interest expense over the next twelve months     $ 0.2
Interest Rate Swaps [Member] | Cash Flow Hedging [Member]      
Derivatives, Fair Value [Line Items]      
Number of interest rate swap agreements | Derivative 1   1
Notional amounts $ 27.5   $ 27.5
Swaps fixed interest rate 3.88%   3.88%
LIBOR variable interest rate 2.15%   2.15%
Interest Rate Swaps [Member] | Senior notes [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, termination year     2017-12
Termination cost $ 0.4    
Interest Rate Swaps [Member] | Term Loans [Member] | Cash Flow Hedging [Member]      
Derivatives, Fair Value [Line Items]      
Derivative, termination year     2026-02
Term loan debt $ 27.5   $ 27.5
Interest Rate Swaps [Member] | Minimum [Member]      
Derivatives, Fair Value [Line Items]      
Swaps fixed interest rate 8.88%   8.88%
Interest Rate Swaps [Member] | Maximum [Member]      
Derivatives, Fair Value [Line Items]      
Swaps fixed interest rate 8.89%   8.89%
Commodity Contract [Member] | Swap [Member] | Derivatives not designated as Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Volume of southern yellow pine in lumber price swap | MMcf   3  
Lumber price swap expiration date   Dec. 31, 2017  
Realized gain on lumber price swap   $ 1.1  
v3.8.0.1
Derivative Instruments (Fair Value of Cash Flow and Fair Value Derivative Instruments) (Details) - Designated as Hedging Instrument [Member] - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Fair Value Hedging [Member]    
Derivatives, Fair Value [Line Items]    
Asset Derivatives, Fair Value $ 13 $ 247
Liability Derivatives, Fair Value   91
Fair Value Hedging [Member] | Interest rate contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Asset Derivatives, Fair Value 13 32
Fair Value Hedging [Member] | Interest rate contracts [Member] | Other Noncurrent Assets [Member]    
Derivatives, Fair Value [Line Items]    
Asset Derivatives, Fair Value   215
Liability Derivatives, Fair Value   91
Cash Flow Hedging [Member] | Interest rate contracts [Member] | Other Noncurrent Assets [Member]    
Derivatives, Fair Value [Line Items]    
Asset Derivatives, Fair Value $ 1,156 $ 1,148
v3.8.0.1
Derivative Instruments (Effect of Derivatives on Consolidated Statements of Income) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Interest Expense [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Realized gain on interest rate contracts [1] $ 413 $ 805 $ 1,534
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) recognized in other comprehensive income, net of tax (effective portion) (145) 916  
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Interest Expense [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Loss reclassified from accumulated other comprehensive income (effective portion) [1] (149) $ (215)  
Derivatives not designated as Hedging Instrument [Member] | Lumber price contracts [Member] | Gain on Lumber Hedge [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Realized gain on lumber price swap $ 1,088    
[1] Realized gains and losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Consolidated Statements of Cash Flows
v3.8.0.1
Financial Instruments (Estimated Fair Values of Financial Instruments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Carrying Amount [Member] | Level 1 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Cash and cash equivalents $ 120,457 $ 82,584
Carrying Amount [Member] | Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion [1] (576,013) (586,756)
Carrying Amount [Member] | Level 2 [Member] | Interest rate contracts [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Derivative assets 1,169 1,395
Derivative liabilities related to interest rate swaps   (91)
Carrying Amount [Member] | Level 2 [Member] | Term Loans [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (343,500) (349,500)
Carrying Amount [Member] | Level 2 [Member] | Senior notes [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (149,528) (149,271)
Carrying Amount [Member] | Level 2 [Member] | Revenue bonds [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (65,735) (65,735)
Carrying Amount [Member] | Level 2 [Member] | Medium-term notes [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (17,250) (22,250)
Carrying Amount [Member] | Level 3 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Company owned life insurance (COLI) 1,996 70
Fair Value [Member] | Level 1 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Cash and cash equivalents 120,457 82,584
Fair Value [Member] | Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion [1] (588,479) (601,290)
Fair Value [Member] | Level 2 [Member] | Interest rate contracts [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Derivative assets 1,169 1,395
Derivative liabilities related to interest rate swaps   (91)
Fair Value [Member] | Level 2 [Member] | Term Loans [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (345,222) (350,909)
Fair Value [Member] | Level 2 [Member] | Senior notes [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (161,063) (164,250)
Fair Value [Member] | Level 2 [Member] | Revenue bonds [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (63,967) (62,205)
Fair Value [Member] | Level 2 [Member] | Medium-term notes [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term debt, including current portion (18,227) (23,926)
Fair Value [Member] | Level 3 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Company owned life insurance (COLI) $ 1,996 $ 70
[1] The carrying amount of long-term debt includes principal and unamortized discounts.
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2009
Defined Benefit Plan Disclosure [Line Items]        
401(K) contributions by employer $ 2,400,000 $ 2,100,000 $ 2,100,000  
Accumulated benefit obligation $ 389,600,000 379,500,000    
Expected return on plan assets 6.25%      
Expected increase in net periodic cost due to 25 basis point decrease in pension discount rate $ 700,000      
Expected increase in projected benefit obligation due to 25 basis point decrease in pension discount rate 10,300,000      
Expected increase in net periodic cost due to 25 basis point decrease in the assumption for expected return on plan assets $ 700,000      
Health care cost trend rate assumed for next fiscal year 8.38%      
Defined Benefit Plan, Assumption Health Care Cost Trend Rate for Next Fiscal Year 4.50%      
Level 3 [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Investments in Level 3 $ 0 $ 0    
Accumulated Other Comprehensive Loss [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Decrease in accumulated postretirement benefit obligations       $ 76,700,000
Management Deferred Compensation Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Annual incentive plan, employee permitted minimum defer percentage 50.00%      
Annual incentive plan, employee permitted maximum defer percentage 100.00%      
Management Deferred Compensation Plan [Member] | Minimum [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Basic salary defer percentage 50.00%      
Pension Plans [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Estimated net loss to be amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost $ 16,600,000      
Estimated prior service cost to be amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost 200,000      
Non-qualified pension plan and other postretirement employee benefit, estimated payments in next fiscal year $ 28,536,000      
Expected return on plan assets 6.50% 6.50% 6.75%  
Pension Plans [Member] | Qualified Plan [member]        
Defined Benefit Plan Disclosure [Line Items]        
Estimated contributions in next fiscal year $ 10,100,000      
Pension Plans [Member] | Nonqualified Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Non-qualified pension plan and other postretirement employee benefit, estimated payments in next fiscal year 5,300,000      
Other Postretirement Benefit Plans [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Estimated net loss to be amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost 1,400,000      
Estimated prior service cost to be amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost 8,900,000      
Non-qualified pension plan and other postretirement employee benefit, estimated payments in next fiscal year 3,704,000      
Other Postretirement Benefit Plans [Member] | Nonqualified Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Non-qualified pension plan and other postretirement employee benefit, estimated payments in next fiscal year $ 5,300,000      
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Change in Benefit Obligation, Plan Assets and Funded Status for Company-Sponsored Benefit Plans and Obligations) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year $ 289,675    
Fair value of plan assets at end of year 313,862 $ 289,675  
Amounts recognized in the consolidated balance sheets [Abstract]      
Noncurrent liabilities (103,524) (123,284)  
Pension Plans [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year (385,461) (382,071)  
Service cost (6,753) (6,508) $ (6,159)
Interest cost (16,096) (17,020) (17,012)
Actuarial (loss) gain (15,876) (13,997)  
Benefits paid 31,815 34,135  
Benefit obligation at end of year (392,371) (385,461) (382,071)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year 289,675 292,200  
Actual return on plan assets 49,158 28,626  
Employer contributions and benefit payments 6,844 2,984  
Benefits paid (31,815) (34,135)  
Fair value of plan assets at end of year 313,862 289,675 292,200
Amounts recognized in the consolidated balance sheets [Abstract]      
Current liabilities (1,629) (1,824)  
Noncurrent liabilities (76,880) (93,962)  
Funded status (78,509) (95,786)  
OPEB [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year (33,337) (35,471)  
Service cost (14) (14) (22)
Interest cost (1,262) (1,421) (1,456)
Actuarial (loss) gain 471 (313)  
Benefits paid 3,793 3,882  
Benefit obligation at end of year (30,349) (33,337) $ (35,471)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Employer contributions and benefit payments 3,794 3,882  
Benefits paid (3,794) (3,882)  
Amounts recognized in the consolidated balance sheets [Abstract]      
Current liabilities (3,705) (4,015)  
Noncurrent liabilities (26,644) (29,322)  
Funded status $ (30,349) $ (33,337)  
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Long-Term Asset Allocation Ranges) (Details)
 12 Months Ended
Dec. 31, 2017
Minimum [Member]  
Domestic and international equities 24.00%
Fixed income securities 38.00%
Alternatives, which may include equities and fixed income securities 12.00%
Cash and cash equivalents 0.00%
Maximum [Member]  
Domestic and international equities 48.00%
Fixed income securities 58.00%
Alternatives, which may include equities and fixed income securities 18.00%
Cash and cash equivalents 5.00%
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Actual Plan Asset Allocations of the Pension Benefit Plans' Assets) (Details) - Pension Plans [Member]
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan, Actual Plan Asset Allocations 100.00% 100.00%
Domestic Equity Securities [Member]    
Defined Benefit Plan, Actual Plan Asset Allocations 37.00% 36.00%
Fixed income [Member]    
Defined Benefit Plan, Actual Plan Asset Allocations 47.00% 48.00%
Other notes [Member]    
Defined Benefit Plan, Actual Plan Asset Allocations 16.00% 16.00%
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Fair Value Measurements) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Fair Value of Plan Assets $ 313,862 $ 289,675
Cash and Cash Equivalents [Member]    
Fair Value of Plan Assets 3,004 2,845
Domestic Equity Securities [Member]    
Fair Value of Plan Assets [1] 57,560 51,688
International Equity Securities [Member]    
Fair Value of Plan Assets [2] 28,413 26,555
Emerging Markets [Member]    
Fair Value of Plan Assets [3] 29,257 26,403
Fixed Income Securities [Member]    
Fair Value of Plan Assets [4] 148,833 138,897
Alternative Securities [Member]    
Fair Value of Plan Assets [5] 46,795 43,287
Level 1 [Member]    
Fair Value of Plan Assets 181,027 167,163
Level 1 [Member] | Cash and Cash Equivalents [Member]    
Fair Value of Plan Assets 3,004 2,845
Level 1 [Member] | Domestic Equity Securities [Member]    
Fair Value of Plan Assets [1] 29,178 25,409
Level 1 [Member] | Emerging Markets [Member]    
Fair Value of Plan Assets [3] 12 12
Level 1 [Member] | Fixed Income Securities [Member]    
Fair Value of Plan Assets [4] 148,833 138,897
Level 2 [Member]    
Fair Value of Plan Assets 132,835 122,512
Level 2 [Member] | Domestic Equity Securities [Member]    
Fair Value of Plan Assets [1] 28,382 26,279
Level 2 [Member] | International Equity Securities [Member]    
Fair Value of Plan Assets [2] 28,413 26,555
Level 2 [Member] | Emerging Markets [Member]    
Fair Value of Plan Assets [3] 29,245 26,391
Level 2 [Member] | Alternative Securities [Member]    
Fair Value of Plan Assets [5] $ 46,795 $ 43,287
[1] Level 1 assets are managed investments in U.S. small/mid-cap equities that track the Russell 2500 Growth index or Russell 2500 Value index. Level 2 assets are collective investments, which are invested in U.S. large-cap equities that track the S&P 500.
[2] Level 2 assets are collective investments in equity funds of developed markets outside of the United States and Canada that track the MSCI EAFE Value index or MSCI EAFE Growth index
[3] Level 1 assets are mutual funds which are invested in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index. Level 2 assets are collective investments in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index.
[4] Level 1 assets are mutual funds and investments in a diversified portfolio of fixed income instruments of varying maturities representing corporates, sovereign debt, U.S. treasuries and municipals that track the Barclay's Long-term Credit index.
[5] Level 2 assets are collective investments in inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed income securities, foreign currencies, securities of natural resource companies, master limited partnerships, publicly listed infrastructure companies, floating-rate debt, securities of global agriculture companies and securities of global timber companies.
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Pre-Tax Components Of Net Periodic Cost (Benefit)) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 6,753 $ 6,508 $ 6,159
Interest cost 16,096 17,020 17,012
Expected return on plan assets (18,406) (18,999) (20,804)
Amortization of prior service cost (credit) 288 518 605
Amortization of actuarial loss 14,484 16,339 17,937
Net periodic cost (benefit) 19,215 21,386 20,909
OPEB [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 14 14 22
Interest cost 1,262 1,421 1,456
Amortization of prior service cost (credit) (8,877) (8,877) (9,312)
Amortization of actuarial loss 1,537 1,717 2,047
Net periodic cost (benefit) $ (6,064) $ (5,725) $ (5,787)
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Other Amounts Recognized in Consolidated Statements of Comprehensive Income) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Net amount at beginning of year $ (110,744)    
Taxes (3,990) $ 1,826 $ 1,913
Net amount arising during the period 11,355 (2,857) (2,990)
Net reclassifications during the period (15,889) (3,058) (3,889)
Net amount at end of year (94,851) (110,744)  
Pension Plans [Member]      
Net amount at beginning of year 120,627 128,244 134,261
Net (gain) loss (14,874) 4,370 8,680
Taxes 3,869 (1,704) (3,386)
Net amount arising during the period (11,005) 2,666 5,294
Amortization of prior service (cost) credit (288) (518) (605)
Amortization of actuarial loss (14,484) (16,339) (17,937)
Taxes 5,761 6,574 7,231
Net reclassifications during the period (9,011) (10,283) (11,311)
Net amount at end of year 100,611 120,627 128,244
OPEB [Member]      
Net amount at beginning of year (9,182) (13,741) (15,869)
Net (gain) loss (471) 313 (3,777)
Taxes 121 (122) 1,473
Net amount arising during the period (350) 191 (2,304)
Amortization of prior service (cost) credit 8,877 8,877 9,312
Amortization of actuarial loss (1,537) (1,717) (2,047)
Taxes (2,863) (2,792) (2,833)
Net reclassifications during the period 4,477 4,368 4,432
Net amount at end of year $ (5,055) $ (9,182) $ (13,741)
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Amounts Recognized in AOCI on Consolidated Balance Sheet) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Pension Plans [Member]    
Net loss $ 100,070 $ 120,006
Prior service cost (credit) 541 621
Net amount recognized 100,611 120,627
OPEB [Member]    
Net loss 10,165 8,778
Prior service cost (credit) (15,220) (17,960)
Net amount recognized $ (5,055) $ (9,182)
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Schedule of Estimated Future Benefit Payments) (Details)
$ in Thousands
Dec. 31, 2017
USD ($)
Pension Plans [Member]  
2018 $ 28,536
2019 28,264
2020 27,951
2021 27,588
2022 27,255
2022–2026 128,115
OPEB [Member]  
2018 3,704
2019 3,454
2020 3,231
2021 2,944
2022 2,760
2022–2026 $ 10,557
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Weighted Average Assumptions Used to Determine the Benefit Obligation) (Details)
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans [Member]      
Discount rate 3.85% 4.40% 4.65%
Rate of salaried compensation increase 3.00% 3.00% 3.00%
OPEB [Member]      
Discount rate 3.65% 4.10% 4.25%
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Weighted Average Assumptions used to Determine the Net Periodic Cost (Benefit)) (Details)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Expected return on plan assets 6.25%    
Pension Plans [Member]      
Discount rate 4.40% 4.65% 4.25%
Expected return on plan assets 6.50% 6.50% 6.75%
Rate of salaried compensation increase 3.00% 3.00% 3.00%
OPEB [Member]      
Discount rate 4.10% 4.25% 3.90%
v3.8.0.1
Savings Plans, Pension Plans and Other Postretirement Employee Benefits (One Percent Point Change in Health Care Cost Trend Rate Effect) (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
USD ($)
Savings Plans Pension Plans And Other Postretirement Employee Benefits [Abstract]  
Effect on total service and interest cost components, 1% increase $ 28
Effect on total service and interest cost components, 1% decrease (24)
Effect on accumulated postretirement benefit obligation, 1% increase 443
Effect on accumulated postretirement benefit obligation, 1% decrease $ (373)
v3.8.0.1
Components of Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income Loss [Line Items]      
Balance at beginning of period $ (156,274) $ (203,736) $ (225,066)
Amounts arising during the period (11,210) 1,941  
Amounts reclassified from AOCL (4,683) (5,700)  
Net change (15,893) (3,759) (3,889)
Balance at end of period (200,542) (156,274) (203,736)
Gains and losses on cash flow hedge [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Balance at beginning of period (701)    
Amounts arising during the period 145 (916)  
Amounts reclassified from AOCL (149) 215  
Net change (4) (701)  
Balance at end of period (705) (701)  
Pension and other postretirement employee benefits [Member] | Pension Plans [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Balance at beginning of period 120,627 128,244  
Amounts arising during the period (11,005) 2,666  
Amounts reclassified from AOCL (9,011) (10,283)  
Net change (20,016) (7,617)  
Balance at end of period 100,611 120,627 128,244
Pension and other postretirement employee benefits [Member] | OPEB [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Balance at beginning of period (9,182) (13,741)  
Amounts arising during the period (350) 191  
Amounts reclassified from AOCL 4,477 4,368  
Net change 4,127 4,559  
Balance at end of period (5,055) (9,182) (13,741)
Accumulated Other Comprehensive Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Balance at beginning of period 110,744 114,503 118,392
Balance at end of period $ 94,851 $ 110,744 $ 114,503
v3.8.0.1
Equity-Based Compensation Plans (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Restricted Stock Unit, Vested, Issuance Deferred 74,067
Director [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Common stock, shares reserved for future issuance 141,938
Performance shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Performance share award granted under stock incentive plan, performance period 3 years
Unrecognized compensation cost | $ $ 4.0
Weighted average period (in years) 1 year 4 months 24 days
Restricted stock units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost | $ $ 1.1
Weighted average period (in years) 1 year 4 months 24 days
Minimum [Member] | Performance shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award 0.00%
Minimum [Member] | Restricted stock units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting Period 1 year
Maximum [Member] | Performance shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award 200.00%
Maximum [Member] | Restricted stock units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting Period 3 years
2005 Stock Incentive Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares authorized 1,600,000
2014 Stock Incentive Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares authorized 1,000,000
2005 and 2014 Stock Incentive Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares authorized 400,000
v3.8.0.1
Equity-Based Compensation Plans (Details Of Equity-Based Compensation Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee equity-based compensation expense $ 4,722 $ 4,390 $ 4,758
Deferred compensation stock equivalent units expense 657 732 376
Total tax benefit recognized for shared-based payment awards 379 317 319
Performance stock awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee equity-based compensation expense 3,582 3,437 3,877
Restricted stock units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee equity-based compensation expense $ 1,140 $ 953 $ 881
v3.8.0.1
Equity-Based Compensation Plans (Fair Value of Performance Share Awards) (Details) - Performance shares [Member] - $ / shares
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock price as of valuation date (in dollars per share) $ 43.60 $ 25.92 $ 40.00
Risk-free rate 1.61% 0.88% 1.07%
Expected volatility 24.22% 23.82% 21.09%
Expected dividends 3.44% 5.79% 3.75%
Expected term (years) 3 years 3 years 3 years
Fair value of a performance share $ 53.85 $ 30.02 $ 36.71
v3.8.0.1
Equity-Based Compensation Plans (Summary Of Outstanding Performance Shares/Restricted Stock Units) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Performance shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested shares outstanding at January 1, Shares 203,788 161,049 160,233
Granted (in shares) 78,033 125,469 78,974
Vested (in shares) (78,129) (82,730) (77,078)
Forfeited (in shares) (3,061)   (1,080)
Unvested shares outstanding at December 31, Shares 200,631 203,788 161,049
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value $ 2,868 $ 3,770 $ 4,839
Aggregate Intrinsic Value $ 10,011 $ 8,488 $ 4,697
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Unvested shares outstanding at January 1, Weighted Average Grant Date Fair Value (in dollars per share) $ 32.59 $ 41.26 $ 53.86
Granted, Weighted Average Exercise Price (in dollars per share) 53.85 30.02 36.71
Vested, Weighted Average Grant Date Fair Value (in dollars per share) 36.71 45.57 62.78
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) 34.68   41.29
Unvested shares outstanding at December 31, Weighted Average Grant Date Fair Value (in dollars per share) $ 39.19 $ 32.59 $ 41.26
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested shares outstanding at January 1, Shares 71,420 44,531 32,455
Granted (in shares) 26,507 43,320 27,820
Vested (in shares) (29,039) (16,431) (15,385)
Forfeited (in shares) (1,017)   (359)
Unvested shares outstanding at December 31, Shares 67,871 71,420 44,531
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value $ 1,151 $ 656 $ 289
Aggregate Intrinsic Value $ 3,387 $ 2,975 $ 1,347
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Unvested shares outstanding at January 1, Weighted Average Grant Date Fair Value (in dollars per share) $ 31.61 $ 40.95 $ 42.24
Granted, Weighted Average Exercise Price (in dollars per share) 43.64 26.08 39.99
Vested, Weighted Average Grant Date Fair Value (in dollars per share) 39.65 39.92 44.50
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) 31.63   40.27
Unvested shares outstanding at December 31, Weighted Average Grant Date Fair Value (in dollars per share) $ 32.87 $ 31.61 $ 40.95
v3.8.0.1
Income Taxes (Narrative) (Details) - USD ($)
 12 Months Ended
Jan. 01, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Taxes [Line Items]        
Statutory Federal Income Tax Rate   35.00%    
Reduction in net deferred tax assets including valuation allowance   $ 10,700,000    
Valuation allowance   790,000 $ 650,000 $ 500,000
Change in Valuation Allowance   100,000    
Unrecognized tax benefits   564,000 $ 850,000 $ 0
Idaho [Member]        
Income Taxes [Line Items]        
Investment Tax Credits   $ 3,100,000    
Earliest Tax Year [Member] | Idaho [Member]        
Income Taxes [Line Items]        
Idaho Investment Tax Credits expiration year   2019    
Latest Tax Year [Member] | Idaho [Member]        
Income Taxes [Line Items]        
Idaho Investment Tax Credits expiration year   2031    
Federal [Member]        
Income Taxes [Line Items]        
Operating Loss Carryforwards   $ 0    
State and Local [Member]        
Income Taxes [Line Items]        
Operating Loss and Capital Loss Carryforwards   $ 1,200,000    
State and Local [Member] | Earliest Tax Year [Member]        
Income Taxes [Line Items]        
Operating Loss and Capital Loss expiration year   2021    
State and Local [Member] | Latest Tax Year [Member]        
Income Taxes [Line Items]        
Operating Loss and Capital Loss expiration year   2030    
Subsequent Event [Member]        
Income Taxes [Line Items]        
Statutory Federal Income Tax Rate 21.00%      
v3.8.0.1
Income Taxes (Schedule of Income Tax Provision (Benefit)) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]      
Current $ 16,657 $ (6,178) $ 128
Deferred 14,325 2,143 1,097
Net operating loss carryforwards 1,039 (290) (6,793)
Income tax provision (benefit) $ 32,021 $ (4,325) $ (5,568)
v3.8.0.1
Income Taxes (Schedule of Reconciliation of Income Tax Provision (Benefit)) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]      
U.S. federal statutory income tax $ 41,466 $ 2,314 $ 9,151
REIT income not subject to federal income tax (20,651) (7,199) (14,110)
U.S. tax rate change on deferred tax assets and liabilities 10,528    
Intercompany profit-in-inventory elimination adjustment   1,465  
Change in valuation allowance 140 162 488
State income taxes, net of federal income tax 2,608 (740) (838)
Domestic production activities deduction (1,511) (2)  
Permanent book-tax differences (252) (218) (70)
Research and development credits (294) (689)  
All other items (13) 582 (189)
Income tax provision (benefit) $ 32,021 $ (4,325) $ (5,568)
Effective tax rate 27.00% (65.40%) (21.30%)
v3.8.0.1
Income Taxes (Schedule of Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]      
Pensions $ 19,439 $ 37,423  
Other postretirement employee benefits 7,891 13,002  
Net operating loss carryforwards 54 983  
Inventories 353 443  
Tax credits 2,443 2,207  
Nondeductible accruals 2,566 2,067  
Incentive compensation 1,131 1,643  
Employee benefits 1,037 1,444  
Other 88 120  
Total deferred tax assets 35,002 59,332  
Valuation allowance (790) (650) $ (500)
Deferred tax assets, net of valuation allowance 34,212 58,682  
Timber and timberlands, net (1,432) (2,165)  
Property, plant and equipment, net (12,683) (14,018)  
Other (301) (448)  
Total deferred tax liabilities (14,416) (16,631)  
Deferred tax assets, net $ 19,796 $ 42,051  
v3.8.0.1
Income Taxes (Summary of Tax Years Subject to Examination by Major Taxing Jurisdictions) (Details)
 12 Months Ended
Dec. 31, 2017
Federal [Member] | Earliest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2013
Federal [Member] | Latest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2017
State and Local [Member] | Arkansas [Member] | Earliest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2014
State and Local [Member] | Arkansas [Member] | Latest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2017
State and Local [Member] | Michigan [Member] | Earliest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2013
State and Local [Member] | Michigan [Member] | Latest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2017
State and Local [Member] | Minnesota [Member] | Earliest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2013
State and Local [Member] | Minnesota [Member] | Latest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2017
State and Local [Member] | Idaho [Member] | Earliest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2014
State and Local [Member] | Idaho [Member] | Latest Tax Year [Member]  
Income Tax Examination [Line Items]  
Tax years subject to examination 2017
v3.8.0.1
Income Taxes (Summary of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]    
Balance at January 1 $ 850,000 $ 0
Additions for tax positions of prior years 8,000 850,000
Reduction for tax positions of prior years (294,000)  
Balance at December 31 $ 564,000 $ 850,000
v3.8.0.1
Commitments and Contingencies (Narrative) (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Feb. 28, 2018
USD ($)
Sep. 25, 2015
USD ($)
May 23, 2012
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2017
USD ($)
Agreement
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Site Contingency [Line Items]                  
Operating leases expiration, year             2033    
Rent expense             $ 4,500 $ 4,200 $ 4,600
Loss contingency accrual, payments     $ 1,750            
Loss contingency, damages sought, value   $ 9,800              
Litigation settlement, expense       $ 5,000 $ 800 $ 200      
Number of tolling agreement with EPA and DOT | Agreement             6    
Litigation settlement date             February 9, 2018    
Litigation filed date             February 12, 2018    
Subsequent Event [Member]                  
Site Contingency [Line Items]                  
Litigation settlement amount $ 6,000                
v3.8.0.1
Commitments and Contingencies (Future Minimum Rental Payments) (Details)
$ in Thousands
Dec. 31, 2017
USD ($)
Commitments And Contingencies Disclosure [Abstract]  
2018 $ 4,570
2019 3,518
2020 2,662
2021 1,771
2022 874
2023 and thereafter 992
Total $ 14,387
v3.8.0.1
Segment Information (Narrative) (Details)
 12 Months Ended
Dec. 31, 2017
Segment
Customer
Dec. 31, 2016
Customer
Dec. 31, 2015
Customer
Segment Reporting [Abstract]      
Number of reportable segments | Segment 3    
Concentration Risk, Customer | Customer 1 1 1
Concentration Risk, Percentage 10.00% 10.00% 10.00%
v3.8.0.1
Segment Information (Summary Of Information By Business Segment) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]                      
Segment Revenues $ 175,244 $ 190,441 $ 163,229 $ 149,681 $ 155,681 $ 174,027 $ 141,495 $ 127,896 $ 678,595 $ 599,099 $ 575,336
Operating income 37,048 $ 43,793 $ 40,773 $ 23,909 25,716 $ 38,994 $ (34,228) $ 5,072 145,523 35,554 58,907
Interest expense, net                 (27,049) (28,941) (32,761)
Income before income taxes                 118,474 6,613 26,146
Depreciation, depletion and amortization                 29,912 34,190 38,105
Bond discount and deferred loan fees                 1,480 1,979 1,481
Basis of real estate sold                 6,827 8,011 7,012
Assets 953,079       927,681       953,079 927,681 1,016,612
Capital Expenditures [1]                 28,062 19,288 32,732
Operating Segments [Member]                      
Segment Reporting Information [Line Items]                      
Segment Revenues                 750,011 656,193 629,078
Operating income                 194,142 74,009 91,247
Depreciation, depletion and amortization                 27,825 31,451 35,673
Assets 824,719       813,707       824,719 813,707 968,733
Capital Expenditures [1]                 25,930 18,913 32,163
Operating Segments [Member] | Resource [Member]                      
Segment Reporting Information [Line Items]                      
Segment Revenues                 278,199 256,163 263,875
Operating income                 106,105 81,918 76,350
Depreciation, depletion and amortization                 20,476 24,090 28,807
Capital Expenditures [1]                 15,120 13,311 13,497
Operating Segments [Member] | Wood Products [Member]                      
Segment Reporting Information [Line Items]                      
Segment Revenues                 441,157 367,426 336,214
Operating income                 72,166 24,587 (5,235)
Depreciation, depletion and amortization                 7,347 7,357 6,810
Assets 154,479       150,855       154,479 150,855 131,103
Capital Expenditures [1]                 10,723 5,491 18,482
Operating Segments [Member] | Real Estate [Member]                      
Segment Reporting Information [Line Items]                      
Segment Revenues                 30,655 32,604 28,989
Operating income [2]                 18,576 (29,495) 16,849
Depreciation, depletion and amortization                 2 4 56
Basis of real estate sold                 7,114 8,518 7,394
Capital Expenditures [1]                 87 111 184
Operating Segments [Member] | Resource and Real Estate [Member]                      
Segment Reporting Information [Line Items]                      
Assets [3] 670,240       662,852       670,240 662,852 837,630
Intersegment Eliminations [Member]                      
Segment Reporting Information [Line Items]                      
Segment Revenues [4]                 (71,416) (57,094) (53,742)
Operating income                 (2,705) (3,001) 3,283
Basis of real estate sold                 (287) (507) (382)
Corporate [Member]                      
Segment Reporting Information [Line Items]                      
Operating income                 (48,619) (38,455) (32,340)
Depreciation, depletion and amortization                 607 760 951
Assets $ 128,360       $ 113,974       128,360 113,974 47,879
Capital Expenditures [1]                 $ 2,132 $ 375 $ 569
[1] Excludes the acquisition of timber and timberlands.
[2] In the second quarter of 2016, we sold approximately 172,000 acres of timberlands located in central Idaho for $114 million at a loss of $48.5 million before taxes.
[3] Assets are shown on a combined basis for the Resource and Real Estate segments, as we do not report assets separately to management for these segments.
[4] Intersegment revenues are based on prevailing market prices of logs sold by our Resource segment to the Wood Products segment.
v3.8.0.1
Segment Information (Summary Of Information By Business Segment) (Parenthetical) (Details)
$ in Millions
 3 Months Ended
Jun. 30, 2016
USD ($)
a
Segment Reporting Information [Line Items]  
Acres sold through timberland sale | a 172,000
Land Sales $ 114.0
Operating Segments [Member] | Real Estate [Member]  
Segment Reporting Information [Line Items]  
Net loss $ 48.5
v3.8.0.1
Segment Information (Schedule of Revenue by Geographic Area) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues $ 175,244 $ 190,441 $ 163,229 $ 149,681 $ 155,681 $ 174,027 $ 141,495 $ 127,896 $ 678,595 $ 599,099 $ 575,336
United States                      
Revenues                 676,956 597,899 573,398
Canada                      
Revenues                 481 173 851
Mexico                      
Revenues                 $ 1,158 $ 1,027 919
Other                      
Revenues                     $ 168
v3.8.0.1
Financial Results by Quarter (Unaudited) Financial Results by Quarter (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Data [Abstract]                      
Revenues $ 175,244 $ 190,441 $ 163,229 $ 149,681 $ 155,681 $ 174,027 $ 141,495 $ 127,896 $ 678,595 $ 599,099 $ 575,336
Operating income (loss) 37,048 43,793 40,773 23,909 25,716 38,994 (34,228) 5,072 145,523 35,554 58,907
Net income (loss) $ 11,588 $ 33,700 $ 24,244 $ 16,921 $ 14,373 $ 27,646 $ (31,238) $ 157 $ 86,453 $ 10,938 $ 31,714
Net income (loss) per share                      
Basic (in dollars per share) $ 0.28 [1] $ 0.83 [1] $ 0.59 [1] $ 0.41 [1] $ 0.35 [1] $ 0.68 [1] $ (0.77) [1] $ 0 [1] $ 2.12 $ 0.27 $ 0.78
Diluted (in dollars per share) $ 0.28 [1] $ 0.82 [1] $ 0.59 [1] $ 0.41 [1] $ 0.35 [1] $ 0.68 [1] $ (0.77) [1] $ 0 [1] $ 2.10 $ 0.27 $ 0.77
[1] Per share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the total computed for the year.
v3.8.0.1
Financial Results by Quarter (Unaudited) - (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Effect Of Fourth Quarter Events [Line Items]    
Deltic merger-related costs   $ 3,409
Deltic [Member]    
Effect Of Fourth Quarter Events [Line Items]    
Deltic merger-related costs $ 3,400