Glatfelter Corp [GLT] Filings

10-Q 1 glt-20230630.htm 10-Q glt-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

4350 Congress Street, Suite 600

Charlotte, North Carolina 28209

(Address of principal executive offices)

(704) 885-2555

(Registrant's telephone number, including area code)

Commission file

number

Exact name of registrant as

specified in its charter

IRS Employer

Identification No.

State or other jurisdiction of

incorporation or organization

1-03560

Glatfelter Corporation

23-0628360

Pennsylvania

(N/A)

Former name or former address, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

GLT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒.

Common Stock outstanding on July 28, 2023 totaled 45,045,910 shares.

GLATFELTER CORPORATION AND SUBSIDIARIES

REPORT ON FORM 10-Q

For the Quarterly Period Ended

June 30, 2023

Table of Contents


PART I - FINANCIAL INFORMATION			Page
Item 1	Financial Statements		2
	Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2023 and 2022 (unaudited)		2
	Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended June 30, 2023 and 2022 (unaudited)		3
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)		5
	Statements of Shareholders’ Equity for the three months and six months ended June 30, 2023 and 2022 (unaudited)		6
	Notes to Condensed Consolidated Financial Statements (unaudited)		7
	1	Organization	7
	2	Accounting Policies	7
	3	Revenue	7
	4	Closure of Ober-Schmitten, Germany Facility	8
	5	Gains on Disposition of Plant, Equipment and Timberlands	9
	6	Goodwill and Other Asset Impairment	9
	7	Discontinued Operations	10
	8	Earnings Per Share	10
	9	Accumulated Other Comprehensive Income	12
	10	Share-based Compensation	14
	11	Retirement Plans and Other Post-Retirement Benefits	15
	12	Income Taxes	15
	13	Inventories	16
	14	Goodwill and Other Intangible Assets	17
	15	Leases	17
	16	Long-term Debt	19
	17	Fair Value of Financial Instruments	22
	18	Financial Derivatives and Hedging Activities	22
	19	Commitments, Contingencies and Legal Proceedings	25
	20	Segment Information	27

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3	Quantitative and Qualitative Disclosures About Market Risks		47
Item 4	Controls and Procedures		48
PART II – OTHER INFORMATION			49

Item 1B	Legal Proceedings		49
Item 6	Exhibits		49
	SIGNATURES		50

PART I

Item 1 – Financial Statements

GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2023		2022		2023		2022

Net sales	$	357,005	$	363,963	$	735,213	$	745,643
Costs of products sold	338,872		326,566		680,866		676,581
Gross profit	18,133		37,397		54,347		69,062
Selling, general and administrative expenses	28,639		28,400		59,384		61,566
Goodwill and other asset impairment charges	—		—		—		117,349
Gains (losses) on dispositions of plant, equipment and timberlands, net	(21)		73		(665)		(2,888)
Operating income (loss)	(10,485)		8,924		(4,372)		(106,965)
Non-operating income (expense)
Interest expense	(17,261)		(7,672)		(29,855)		(15,534)
Interest income	559		38		830		55
Other, net	(3,045)		(455)		(6,323)		(1,795)
Total non-operating expense	(19,747)		(8,089)		(35,348)		(17,274)
Income (loss) from continuing operations before income taxes	(30,232)		835		(39,720)		(124,239)
Income tax provision (benefit)	6,399		3,295		10,093		(13,489)
Loss from continuing operations	(36,631)		(2,460)		(49,813)		(110,750)

Discontinued operations:
Income (loss) before income taxes	(309)		408		(711)		371
Income tax provision	—		—		—		—
Income (loss) from discontinued operations	(309)		408		(711)		371
Net loss	$	(36,940)	$	(2,052)	$	(50,524)	$	(110,379)

Basic earnings per share
Loss from continuing operations	$	(0.82)	$	(0.05)	$	(1.11)	$	(2.47)
Income (loss) from discontinued operations	(0.01)		0.01		(0.02)		0.01
Basic loss per share	$	(0.83)	$	(0.04)	$	(1.13)	$	(2.46)

Diluted earnings per share
Loss from continuing operations	$	(0.82)	$	(0.05)	$	(1.11)	$	(2.47)
Income (loss) from discontinued operations	(0.01)		0.01		(0.02)		0.01
Diluted loss per share	$	(0.83)	$	(0.04)	$	(1.13)	$	(2.46)

Weighted average shares outstanding
Basic	45,041		44,841		44,999		44,775
Diluted	45,041		44,841		44,999		44,775

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 2 -

GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	Three months ended June 30,				Six months ended June 30,
In thousands	2023		2022		2023		2022
Net loss	$	(36,940)	$	(2,052)	$	(50,524)	$	(110,379)

Foreign currency translation adjustments	2,820		(28,675)		9,483		(39,590)
Net change in:
Deferred gains (losses) on derivatives, net of taxes of $96, $(2,029), $149 and $(2,629), respectively	(11)		8,534		146		8,177
Unrecognized retirement obligations, net of taxes of $(3), $(49), $(4) and $(101), respectively	18		152		670		304
Other comprehensive income (loss)	2,827		(19,989)		10,299		(31,109)
Comprehensive loss	$	(34,113)	$	(22,041)	$	(40,225)	$	(141,488)

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 3 -

GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


In thousands	June 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	53,864	$	110,660
Accounts receivable, net	189,628		195,665
Inventories	314,673		309,436
Prepaid expenses and other current assets	56,329		63,723
Total current assets	614,494		679,484

Plant, equipment and timberlands, net	670,347		675,811
Goodwill	106,495		105,195
Intangible assets, net	106,043		108,670
Other assets	79,184		78,193
Total assets	$	1,576,563	$	1,647,353

Liabilities and Shareholders' Equity
Current portion of long-term debt	$	2,963	$	40,435
Short-term debt	7,238		11,422
Accounts payable	161,148		217,625

Environmental liabilities	2,000		2,200
Other current liabilities	89,539		88,724
Total current liabilities	262,888		360,406

Long-term debt	853,025		793,252
Deferred income taxes	56,621		54,388
Other long-term liabilities	125,191		121,303
Total liabilities	1,297,725		1,329,349

Commitments and contingencies

Shareholders’ equity
Common stock	544		544
Capital in excess of par value	57,945		60,663
Retained earnings	448,339		498,863
Accumulated other comprehensive loss	(87,596)		(97,895)
	419,232		462,175
Less cost of common stock in treasury	(140,394)		(144,171)
Total shareholders’ equity	278,838		318,004
Total liabilities and shareholders’ equity	$	1,576,563	$	1,647,353

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 4 -

GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six months ended June 30,
In thousands	2023		2022
Operating activities
Net loss	$	(50,524)	$	(110,379)
Loss (income) from discontinued operations, net of taxes	711		(371)
Adjustments to reconcile to net cash used by continuing operations:
Depreciation, depletion and amortization	31,701		34,936
Amortization of debt issue costs and original issue discount	3,281		963
Pension settlement charge	633		—
Goodwill and other asset impairment charges	—		117,349
Russia/Ukraine conflict charges	—		3,948
Deferred income tax expense (benefit)	959		(22,186)
Gains on dispositions of plant, equipment and timberlands, net	(665)		(2,888)
Share-based compensation	1,307		2,419
Change in operating assets and liabilities:
Accounts receivable	4,180		(52,936)
Inventories	(1,656)		(45,148)
Prepaid and other current assets	7,418		3,472
Accounts payable	(58,129)		9,516
Accruals and other current liabilities	3,633		(16,910)
Other	4,130		(1,320)
Net cash used by operating activities from continuing operations	(53,021)		(79,535)
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(17,458)		(22,697)
Proceeds from disposals of plant, equipment and timberlands, net	735		3,173
Acquisition, net of cash acquired	—		1,413
Other	—		(25)
Net cash used by investing activities from continuing operations	(16,723)		(18,136)
Financing activities

Proceeds from term loan	262,273		—
Repayment of term loans	(226,451)		(23,793)

Net borrowings (repayments) under revolving credit facility	(14,988)		72,176
Payments of borrowing costs	(10,071)		(1,102)
Payments of dividends	—		(12,498)

Payments related to share-based compensation awards and other	(248)		(1,237)
Net cash provided by financing activities from continuing operations	10,515		33,546
Effect of exchange rate changes on cash	1,096		(3,587)
Net decrease in cash, cash equivalents and restricted cash	(58,133)		(67,712)
Decrease in cash, cash equivalents and restricted cash from discontinued operations	(428)		(231)
Cash, cash equivalents and restricted cash at the beginning of period	119,162		148,814
Cash, cash equivalents and restricted cash at the end of period	60,601		80,871
Less: restricted cash in Prepaid expenses and other current assets	(3,600)		(2,000)
Less: restricted cash in Other assets	(3,137)		(7,395)
Cash and cash equivalents at the end of period	$	53,864	$	71,476

Supplemental cash flow information
Cash paid for:
Interest	$	27,001	$	15,879
Income taxes, net	4,109		14,699

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 5 -

GLATFELTER CORPORATION AND SUBSIDIARIES

STATEMENTS OF SHAREHOLDERS’ EQUITY

(unaudited)


In thousands	Common stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
Balance at April 1, 2023	$	544	$	59,256	$	485,279	$	(90,423)	$	(142,069)	$	312,587
Net loss					(36,940)						(36,940)
Other comprehensive income							2,827				2,827
Comprehensive loss											(34,113)

Share-based compensation expense			376								376
Delivery of treasury shares:
RSUs and PSAs			(1,687)						1,675		(12)
Balance at June 30, 2023	$	544	$	57,945	$	448,339	$	(87,596)	$	(140,394)	$	278,838

Balance at April 1, 2022	$	544	$	61,873	$	591,012	$	(91,424)	$	(145,272)	$	416,733
Net loss					(2,052)						(2,052)
Other comprehensive loss							(19,989)				(19,989)
Comprehensive loss											(22,041)
Cash dividends declared ($0.14 per share)					(6,273)						(6,273)
Share-based compensation expense			1,510								1,510
Delivery of treasury shares:
RSUs and PSAs			(828)						821		(7)
Balance at June 30, 2022	$	544	$	62,555	$	582,687	$	(111,413)	$	(144,451)	$	389,922

Balance at January 1, 2023	$	544	$	60,663	$	498,863	$	(97,895)	$	(144,171)	$	318,004
Net loss					(50,524)						(50,524)
Other comprehensive income							10,299				10,299
Comprehensive loss											(40,225)

Share-based compensation expense			1,307								1,307
Delivery of treasury shares:
RSUs and PSAs			(4,025)						3,777		(248)
Balance at June 30, 2023	$	544	$	57,945	$	448,339	$	(87,596)	$	(140,394)	$	278,838

Balance at January 1, 2022	$	544	$	64,779	$	705,600	$	(80,304)	$	(147,857)	$	542,762
Net loss					(110,379)						(110,379)
Other comprehensive loss							(31,109)				(31,109)
Comprehensive loss											(141,488)
Cash dividends declared (0.14 per share)					(12,534)						(12,534)
Share-based compensation expense			2,419								2,419
Delivery of treasury shares:
RSUs and PSAs			(4,643)						3,406		(1,237)
Balance at June 30, 2022	$	544	$	62,555	$	582,687	$	(111,413)	$	(144,451)	$	389,922

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 6 -

GLATFELTER CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.ORGANIZATION

Glatfelter Corporation and subsidiaries ("Glatfelter") is a leading global supplier of engineered materials with a strong focus on innovation and sustainability. Glatfelter's high quality, technology-driven, innovative, and customizable nonwovens solutions can be found in products that are Enhancing Everyday Life®. These include personal care and hygiene products, food and beverage filtration, critical cleaning products, medical and personal protection, packaging products, as well as home improvement and industrial applications. Headquartered in Charlotte, NC, our 2022 net sales were $1.5 billion. At December 31, 2022, we employed approximately 3,250 employees worldwide. Glatfelter’s operations utilize a variety of manufacturing technologies including airlaid, wetlaid, and spunlace with sixteen manufacturing sites located in the United States, Canada, Germany, the United Kingdom, France, Spain, and the Philippines. The Company has sales offices in all major geographies serving customers under the Glatfelter and Sontara brands. Additional information about Glatfelter may be found at www.glatfelter.com. The terms “we,” “us,” “our,” “the Company,” or “Glatfelter,” refer to Glatfelter Corporation and subsidiaries unless the context indicates otherwise.

2. ACCOUNTING POLICIES

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed you have read the audited consolidated financial statements included in our 2022 Annual Report on Form 10-K.

Discontinued Operations The results of operations and cash flows of our former Specialty Papers business have been classified as discontinued operations for all periods presented in the condensed consolidated statements of income.

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes actual results may differ from those estimates and assumptions.

3.REVENUE

The following tables set forth disaggregated information pertaining to our net sales:


	Three months ended June 30,				Six months ended June 30,
In thousands	2023		2022		2023		2022
Revenue by product category

Airlaid Materials
Feminine hygiene	$	51,882	$	56,943	$	110,127	$	116,255
Specialty wipes	45,535		37,908		90,329		75,003
Tabletop	31,778		26,771		62,193		57,518
Food pads	3,361		3,475		6,901		6,951
Home care	6,781		5,513		14,140		11,798
Adult incontinence	7,063		6,260		14,422		12,989

- 7 -


Other	6,111		6,838		13,840		12,658
	152,511		143,708		311,952		293,172
Composite Fibers
Food & beverage	70,755		74,465		149,699		149,688
Wallcovering	19,570		9,902		35,727		25,733
Technical specialties	20,542		18,603		41,995		41,739
Composite laminates	8,818		11,570		17,801		22,867
Metallized	6,040		8,798		13,094		19,140

	125,725		123,338		258,316		259,167
Spunlace
Consumer wipes	34,759		39,549		72,868		85,706
Critical cleaning	17,584		27,783		46,733		52,061
Health care	16,808		15,434		27,183		29,039
Hygiene	5,034		6,233		10,694		12,146
High performance	4,608		4,018		7,817		8,130
Beauty care	627		3,900		848		6,222

	79,420		96,917		166,143		193,304

Inter-segment sales elimination	(651)		—		(1,198)		—
Total	$	357,005	$	363,963	$	735,213	$	745,643

Revenue by geography

Airlaid Materials
Americas	$	85,492	$	77,608	$	175,329	$	158,521
Europe, Middle East and Africa	63,519		63,355		129,510		126,491
Asia Pacific	3,500		2,745		7,113		8,160
	152,511		143,708		311,952		293,172
Composite Fibers
Americas	32,416		42,077		66,628		80,053
Europe, Middle East and Africa	72,680		59,868		146,530		133,472
Asia Pacific	20,629		21,393		45,158		45,642
	125,725		123,338		258,316		259,167
Spunlace
Americas	50,001		54,985		103,153		110,469
Europe, Middle East and Africa	23,289		30,245		48,352		60,070
Asia Pacific	6,130		11,687		14,638		22,765
	79,420		96,917		166,143		193,304

Inter-segment sales elimination	(651)		—		(1,198)		—
Total	$	357,005	$	363,963	$	735,213	$	745,643

- 8 -

4.CLOSURE OF OBER-SCHMITTEN, GERMANY FACILITY

In the second quarter of 2023, we announced our plans to close Composite Fibers’ Ober-Schmitten, Germany facility as part of the Company’s turnaround strategy that aimed at improving financial performance of the Company’s overall business. Pending the completion of negotiations with the Ober-Schmitten Economic Committee and Works Council (“Works Council”), we expect to cease operations at the site during the third quarter of 2023 with some final finishing, shipping wind-down and decommissioning to follow. In connection with the planned closure, we recognized the following costs which are included in our condensed consolidated statements of income:


	Three months ended June 30,		Six months ended June 30,
In thousands	2023		2023
Severance and benefit continuation	10,368		10,368
Other costs	424		373

Total	$	10,792	$	10,741

The Company now estimates that it will incur approximately $10.4 million of cash expenses in connection with employee severance and benefit costs associated with the termination of the employees at the Facility and has recognized an expense for this amount included in “Cost of Goods Sold” in its condensed consolidated financial statements for the three and six months ended June 30, 2023. This estimate is based on the Company’s estimate of the cost of the current proposed compromise of interest and social plan made to the Works Council. As negotiations between the Company and the Works Council have not been finalized, the total amount of severance and benefit continuation costs that will ultimately be recognized is subject to change until such time as negotiations with the local works council are concluded. The accrued and unpaid severance and benefit continuation totaled approximately $10.4 million as of June 30, 2023.

The Company has also recognized other shutdown related costs at the Facility, related to potential contract termination costs, site closure costs, and other associated costs, and the Company expects that it will continue to incur other shutdown related costs. The Company has recognized such other costs of approximately $0.4 million, which are predominately non-cash expenses and included in “Selling, general & administrative expenses” in its condensed consolidated financial statements for the three and six months ended June 30, 2023. The Company is currently unable to make a good faith determination of an estimate of the amount or range of the amounts of the charges expected to be recorded in connection with other major types of cost associated with the closure (such as contract termination costs and other associated costs) or the amount or range of amounts of such charges that will result in future cash expenditures.

5.GAINS ON DISPOSITION OF PLANT, EQUIPMENT AND TIMBERLANDS

The following table sets forth sales of timberlands and other assets completed during the first six months of 2023 and 2022:


Dollars in thousands	Acres	Proceeds		Gain (loss)
2023
Timberlands	216	$	630	$	617
Other	n/a	105		48
Total		$	735	$	665

2022
Timberlands	790	$	3,130	$	2,962
Other	n/a	43		(74)
Total		$	3,173	$	2,888

6.GOODWILL AND OTHER ASSET IMPAIRMENT

No impairment charges were recognized during the first six months of 2023.

- 9 -

During the first quarter of 2022, in connection with an assessment of potential impairment of long-lived and indefinite lived intangible assets stemming from the compounding impacts resulting from the Russia/Ukraine military conflict and related sanctions, we recorded a $117.3 million non-cash asset impairment charge related to Composite Fibers' Dresden facility and an impairment of Composite Fibers' goodwill. Dresden is a single-line facility that produces wallcover base paper, the majority of which is sold into the Russian and Ukrainian markets. As a direct result of the economic impacts from the conflict, and the disruptions in the underlying financial systems and restrictions on our ability to export wallcover base paper to Russia due to related sanctions, management expected a significant reduction in wallcover revenues and associated cash flows for the foreseeable future. In addition, the conflict also impacted other Composite Fibers products that are also subject to export sanctions into this region, and continued to significantly impact energy prices. Accordingly, a charge was recorded to reduce the carrying value of the Dresden fixed assets and intangible assets (technological know-how, customer relationships, and an indefinite-lived trade name), along with Composite Fibers’ goodwill to fair value.

The following table summarizes the impairment charges recorded during the six months ended June 30, 2023 and 2022, respectively, in the accompanying condensed consolidated statements of income under the caption “Goodwill and other asset impairment charges:”


In thousands	2023		2022
Plant, property and equipment	$	—	$	27,619
Technological know-how	—		18,443
Customer relationships	—		11,695
Tradename	—		3,530
Goodwill	—		56,062
Total	$	—	$	117,349

The fair value of the underlying assets was estimated using discounted cash flow models, independent appraisals and similar methods, all of which are Level 3 fair value classification.

7.DISCONTINUED OPERATIONS

For the three and six months ended June 30, 2023, we recognized a loss in discontinued operations of $0.3 million and $0.7 million, respectively, primarily related to an insurance claim and legal costs. For both the three and six months ended June 30 2022, we recognized income of $0.4 million which primarily represents the successful appeal of a sales and use tax audit partially offset by legal costs.

The following table sets forth a summary of cash flows from discontinued operations which is included in the condensed consolidated statements of cash flows:


	Six months ended June 30,
In thousands	2023		2022
Net cash used by operating activities	$	(428)	$	(231)
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(428)	$	(231)

8.EARNINGS PER SHARE

The following table sets forth the details of basic and diluted earnings per share (“EPS”) from continuing operations:

- 10 -


	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2023		2022		2023		2022
Loss from continuing operations	$	(36,631)	$	(2,460)	$	(49,813)	$	(110,750)

Weighted average common shares outstanding used in basic EPS	45,041		44,841		44,999		44,775
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs	—		—		—		—
Weighted average common shares outstanding and common share equivalents used in diluted EPS	45,041		44,841		44,999		44,775

Loss per share from continuing operations
Basic	$	(0.82)	$	(0.05)	$	(1.11)	$	(2.47)
Diluted	(0.82)		(0.05)		(1.11)		(2.47)

The following table sets forth potential common shares outstanding that were not included in the computation of diluted EPS for the periods indicated, because their effect would be anti-dilutive:


	Three months ended June 30,		Six months ended June 30,
In thousands	2023	2022	2023	2022
Potential common shares	618	934	618	934

- 11 -

9.ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and six months ended June 30, 2023 and 2022.


In thousands	Currency translation adjustments		Unrealized gain (loss) on derivatives		Change in pensions		Change in other postretirement defined benefit plans		Total

Balance at April 1, 2023	$	(99,579)	$	11,333	$	(2,587)	$	410	$	(90,423)
Other comprehensive income before reclassifications (net of tax)	2,820		57		—		—		2,877
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(68)		25		(7)		(50)
Net current period other comprehensive income (loss)	2,820		(11)		25		(7)		2,827
Balance at June 30, 2023	$	(96,759)	$	11,322	$	(2,562)	$	403	$	(87,596)

Balance at April 1, 2022	$	(80,672)	$	1,631	$	(11,356)	$	(1,027)	$	(91,424)
Other comprehensive income (loss) before reclassifications (net of tax)	(28,675)		9,760		—		—		(18,915)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,226)		126		26		(1,074)
Net current period other comprehensive income (loss)	(28,675)		8,534		126		26		(19,989)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)

Balance at January 1, 2023	$	(106,242)	$	11,176	$	(3,247)	$	418	$	(97,895)
Other comprehensive income before reclassifications (net of tax)	9,483		1,613		—		—		11,096
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,467)		685		(15)		(797)
Net current period other comprehensive income (loss)	9,483		146		685		(15)		10,299
Balance at June 30, 2023	$	(96,759)	$	11,322	$	(2,562)	$	403	$	(87,596)

Balance at January 1, 2022	$	(69,757)	$	1,988	$	(11,482)	$	(1,053)	$	(80,304)
Other comprehensive income (loss) before reclassifications (net of tax)	(39,590)		10,143		—		—		(29,447)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,966)		252		52		(1,662)
Net current period other comprehensive income (loss)	(39,590)		8,177		252		52		(31,109)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)

- 12 -

Reclassifications out of accumulated other comprehensive income and into the condensed consolidated statements of income were as follows:


	Three months ended June 30,				Six months ended June 30,
In thousands	2023		2022		2023		2022
Description									Line Item in Statements of Income
Cash flow hedges (Note 18)
Gains on cash flow hedges	$	(400)	$	(1,697)	$	(1,318)	$	(2,769)	Costs of products sold
Tax expense (benefit)	332		480		(149)		792		Income tax provision
Net of tax	(68)		(1,217)		(1,467)		(1,977)

Loss (gain) on interest rate swaps	—		(9)		—		11		Interest expense
Tax expense	—		—		—