10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-K

(Mark One)

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34146

CLEARWATER PAPER CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	20-3594554
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
601 W. Riverside Avenue, Suite 1100
Spokane, Washington	99201
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (509) 344-5900

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

TITLE OF EACH CLASS	NAME OF EACH EXCHANGE ON WHICH REGISTERED
Common Stock ($0.0001 par value per share)	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ý Yes    ¨ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ¨ Yes    ý No

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 the past 90 days.    ý Yes    ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    ý Yes    ¨ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ý

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

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

As of June 30, 2013 (the last business day of the registrant’s most recently completed second quarter), the aggregate market value of the common stock held by non-affiliates of the registrant was $1.02 billion. Shares of common stock beneficially held by each officer and director and by each person who owns 5% or more of the outstanding common stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

As of February 14, 2014, 20,912,248 shares of the registrant’s common stock were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive proxy statement to be filed on or about March 24, 2014, with the Securities and Exchange Commission in connection with the registrant’s 2014 annual meeting of stockholders are incorporated by reference in Part III hereof.

CLEARWATER PAPER CORPORATION

Index to 2013 Form 10-K

		PAGE NUMBER
	PART I
ITEM 1.	Business	2-8
ITEM 1A.	Risk Factors	9-16
ITEM 1B.	Unresolved Staff Comments	16
ITEM 2.	Properties	17
ITEM 3.	Legal Proceedings	18
ITEM 4.	Mine Safety Disclosures	18
	PART II
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19-20
ITEM 6.	Selected Financial Data	20
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21-38
ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risks	39
ITEM 8.	Financial Statements and Supplementary Data	40-80
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	81
ITEM 9A.	Controls and Procedures	81
ITEM 9B.	Other Information	81
	PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance	82
ITEM 11.	Executive Compensation	82
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	83
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	83
ITEM 14.	Principal Accounting Fees and Services	83
	PART IV
ITEM 15.	Exhibits, Financial Statement Schedules	84
SIGNATURES		85
EXHIBIT INDEX		86-90

Part I

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Our disclosure and analysis in this report contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the costs and benefits associated with the closure of our Thomaston, Georgia facility, cash flows, capital expenditures, tax rates, operating costs, including energy costs, selling, general and administrative expenses, timing of major maintenance and repairs, liquidity, benefit plan funding levels, capitalized interest, interest expenses, and the tax treatment of the alternative fuels and cellulosic biofuels tax credits. Words such as “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “believe,” “schedule,” “estimate,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this report. Important factors that could cause or contribute to such differences in operating results include those risks discussed in Item 1A of this report, as well as the following:

▪ customer acceptance and timing of purchases of our new through-air-dried, or TAD, products and quantity;

▪ competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by our competitors;

▪ difficulties with the optimization and realization of the benefits expected from our new TAD paper machine and converting lines in Shelby, North Carolina;

▪ the loss of business from a significant customer;

▪ manufacturing or operating disruptions, including equipment malfunction and damage to our manufacturing facilities caused by fire or weather-related events and IT system failures;

▪ changes in the cost and availability of wood fiber and wood pulp;

▪ changes in transportation costs and disruptions in transportation services;

▪ labor disruptions;

▪ changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs;

▪ changes in customer product preferences and competitors' product offerings;

▪ changes in expenses and required contributions associated with our pension plans;

▪ environmental liabilities or expenditures;

▪ changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate;

▪ increased supply and pricing pressures resulting from increasing Asian paper production capabilities;

▪ cyclical industry conditions;

▪ reliance on a limited number of third-party suppliers for raw materials;

▪ inability to successfully implement our expansion strategies;

▪ inability to fund our debt obligations;

▪ restrictions on our business from debt covenants and terms;

▪ changes in laws, regulations or industry standards affecting our business; and

▪ our qualification to retain, or ability to utilize, tax credits associated with alternative fuels or cellulosic biofuels and the tax treatment associated with receipt of such credits.

Forward-looking statements contained in this report present management’s views only as of the date of this report. Except as required under applicable law, we do not intend to issue updates concerning any future revisions of management’s views to reflect events or circumstances occurring after the date of this report. You are advised, however, to consult any further disclosures we make on related subjects in our quarterly reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission, or SEC.

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ITEM 1.

Business

GENERAL

Clearwater Paper Corporation is a leading North American producer of private label tissue and paperboard products. We manufacture quality consumer tissue, away-from-home tissue, or AFH, parent rolls (non-converted tissue product), machine-glazed tissue, bleached paperboard and pulp at 14 manufacturing locations in the U.S. and Canada. Our private label consumer tissue products - facial and bath tissue, paper towels and napkins - are used primarily at-home and are principally sold to major retailers and wholesale distributors, which include grocery, drug, mass-merchant and discount stores. Our paperboard is sold primarily in the high-end segment of the packaging industry, which demands high-quality construction and print surfaces for graphics. Our products are made primarily from wood fiber pulp.

On December 27, 2010, we acquired Cellu Tissue Holdings, Inc., or Cellu Tissue, a tissue manufacturing and converting company whose customers included consumer retailers and AFH distributors of tissue products, vertically integrated manufacturers and third-party converters serving the tissue and machine-glazed tissue sectors. Cellu Tissue sold product as finished cases and parent rolls.

In the fourth quarter of 2012, we completed construction of our through-air-dried, or TAD, paper machine and converting facility in Shelby, North Carolina.

Company Strengths

Leading private label tissue manufacturer with a broad footprint in North America. Our consumer products business is a premier private label tissue manufacturer. We have production facilities strategically located throughout North America as a result of the expansion of our manufacturing footprint through significant capital investments and the acquisition of Cellu Tissue. We have TAD tissue manufacturing facilities in North Carolina, Las Vegas, Nevada and Ontario, Canada and converting operations across the United States. We believe we were the sixth largest manufacturer in the North American tissue market as of December 31, 2013, based on tissue parent roll capacity. Our broad manufacturing footprint allows us to better and more cost effectively service a diverse customer base, including major grocery store chains and value retailers across the entire U.S.

High quality brand-equivalent tissue and other products to meet retailers' private label strategies.    Our consumer products business produces high-quality products that match the quality of the leading national brands. We focus on high value tissue products across a wide variety of categories and retail channels. We also manufacture a broad range of cost-competitive consumer products, including recycled tissue, tissue parent rolls and machine-glazed paper. In addition to our conventional paper-making capabilities, we produce TAD tissue that we convert into national brand-equivalent, ultra-quality paper towels and bath tissue. Our expanded TAD tissue offerings are expected to create new opportunities to increase our private label consumer tissue business around our broad manufacturing footprint by allowing us to supply these key products to customers across the U.S.

High quality premium bleached paperboard products. Our pulp and paperboard business produces premium paperboard products with ultra-smooth print surfaces, superior cleanliness, and excellent forming and sealing ability. Products are available in several thicknesses to provide the rigidity and strength needed for a wide range of applications. The high quality of our paperboard allows buyers to use our products for packaging where branding and quality are critical, such as health and beauty packaging, pharmaceutical packaging, and point of purchase displays.

Complementary, long-standing customer relationships.Our consumer products business supplies private label tissue products to several of the largest national grocery chains. Our top 10 consumer products customers in 2013 accounted for approximately 58% of our total consumer products net sales. Our largest customer in 2013 was the Kroger Company, which accounted for 10.8% of our total company net sales. The average tenure of these customers was approximately 12 years. In addition to these long-standing customer relationships, we have a diverse base of over 110 customers across a broad geographic area. We also have long-standing customer relationships with our paperboard customers. Our top 10 paperboard customers in 2013 accounted for approximately 42% of our total paperboard net sales. The average tenure of these customers was approximately 31 years.

Strategically positioned pulp and paperboard facilities. Our pulp and paperboard mill in Lewiston, Idaho is one of only two solid bleach sulfate, or SBS, paperboard mills, and the only coated SBS paperboard mill, in the Western U.S. to offer a full range of specialized products to meet the needs of customers for traditional folding carton, plates, cup and liquid packaging. This facility's geographic location reduces transportation costs to customers for the western U.S. as well as Asia, which allows us to compete on a cost-advantaged basis relative to East Coast competitors. Our Cypress Bend, Arkansas mill is centrally located, which reduces transportation costs to the Midwestern and Eastern U.S. and complements the Lewiston mill in shipping to customers nationwide.

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Strategy

Our long-term strategy is to grow the size and scope of our consumer products business and optimize the profitability of that business as well as that of our paperboard business. In the near-term, our focus remains on maximizing the strategic and financial benefits from the integration of our existing facilities and our TAD paper machine and converting lines in North Carolina. We also continue to work on optimizing the operating efficiencies and cost effectiveness of our premium bleached paperboard production.

▪ Grow Our Consumer Products Business.Our long-term strategy has been to grow within the private label tissue market. As part of this strategy, we expanded our tissue manufacturing footprint through the acquisition of Cellu Tissue in 2010 and the construction of additional converting and TAD paper making capacity. Most notably, our North Carolina facility has been the cornerstone of our strategy to expand our TAD tissue operations in the Eastern U.S. With our broad manufacturing footprint now in place, we plan to continue to capitalize on our position as one of the largest premium private label tissue producers in North America by taking advantage of the attractive tissue market and the increasing adoption of store brand products by retailers and their customers.

▪ Optimize Our Consumer Products Business. We intend to continue optimizing the strategic and financial benefits of our broad-based manufacturing operations by improving our operational integration and enhancing our manufacturing facilities. Improving our operational integration allows us to better serve existing private label grocery customers by providing them the full spectrum of consumer tissue products across the U.S., and provides us with the capability to continue to expand further into grocery stores as well as other private label distribution channels, including drug stores, mass merchants and discount stores. Optimizing our manufacturing facilities includes the implementation of cost savings programs as well as consolidating converting such as our recent closure of the Thomaston, Georgia facility and strategic redeployment of its converting lines to other of our facilities.

▪ Optimize Our Pulp and Paperboard Business.We intend to continue improving our operational efficiency, and product quality and mix of customers to which we sell our paperboard products, as well as controlling our raw material and energy costs. We have implemented cost saving programs that are based primarily on lean manufacturing and cost optimization initiatives. Our cost saving programs include the implementation of 18 to 24 month (versus the previous 12 to 18 month) major maintenance cycles at our Lewiston and Cypress Bend facilities, as well as the strengthening of our wood fiber supply chain through the acquisition of a wood chipping facility near our Lewiston facility.

ORGANIZATION

Our businesses are organized into two operating segments: Consumer Products and Pulp and Paperboard. Additional information relating to the amounts of net sales, operating income, depreciation and amortization, identifiable assets and capital expenditures attributable to each of our operating segments for 2011-2013, as well as geographic information regarding our net sales, is set forth in Note 17 to our consolidated financial statements included under Part II, Item 8 of this report.

Consumer Products Segment

Our Consumer Products segment manufactures and sells a complete line of at-home tissue products as well as AFH products. Our integrated manufacturing and converting operations and geographic footprint enable us to deliver a broad range of cost-competitive products with brand equivalent quality to our consumer products customers. In 2013, our Consumer Products segment had net sales of $1.1 billion. A listing of our Consumer Products segment facilities is included under Part I, Item 2 of this report.

Tissue Industry Overview

Consumer Tissue Products. The U.S. tissue market can be divided into two market segments: the at-home or consumer retail purchase segment, which represents approximately two-thirds of U.S. tissue sales; and the AFH segment, which represents the remaining one-third of U.S. tissue market sales and includes locations such as airports, restaurants, hotels and office buildings.

The U.S. at-home tissue segment consists of bath, paper towels, facial and napkin products categories. Each category is further distinguished according to quality segments: ultra, premium, value and economy. As a result of process improvements and consumer preferences, the majority of at-home tissue sold in the U.S. is ultra and premium quality.

At-home tissue producers are comprised of companies that manufacture branded tissue products, private label tissue products, or both. Branded tissue suppliers manufacture, market and sell tissue products under their own nationally branded labels. Private label tissue producers sell tissue products to retailers to sell as their store brand.

In the U.S., at-home tissue is primarily sold through grocery stores, mass merchants, warehouse clubs, drug stores and discount dollar stores. Tissue has historically been one of the strongest segments of the paper industry due to its steady demand growth and the absence of severe supply imbalances that occur in a number of other paper segments. In addition to economic and demographic drivers, tissue demand is affected by product innovations and shifts in distribution channels.

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Machine-Glazed Tissue. Machine-glazed tissue has a glazed coating and, in some cases, other moisture and grease-resistant coatings. Machine-glazed tissue is converted into products such as fast food and commercial food wrappers, gum wrappers, coffee filters, cigarette pack liner paper, wax paper and butter wraps.

Our Consumer Products Business

In bathroom tissue, the majority of our sales are high quality two-ply ultra and premium products, including TAD tissue products. In paper towels, we produce and sell ultra quality TAD towels as well as premium and value towels. In the facial category, we sell ultra-lotion three-ply and a complete line of two-ply premium products as well as value facial tissue. In napkins, we manufacture ultra two- and three-ply dinner napkins, as well as premium and value one-ply luncheon napkins. Recycled fiber value grade products are also available to customers who wish to further diversify their product portfolio. We compete primarily in the at-home portion of the U.S. tissue market, which made up approximately 89% of our Consumer Products segment sales in 2013.

We manufacture and sell a line of AFH products to customers with commercial and industrial tissue needs. Products include conventional one- and two-ply bath tissue, two-ply paper towels, hard wound towels and dispenser napkins.

Tissue parent rolls that we manufacture to requested specifications but do not convert are sold to third-party converters or brokers for conversion into various end products, including at-home tissue products and absorbent products used to produce liners for diapers, feminine care products, surgical waddings and other medical and sanitary disposable products.

We also manufacture and sell machine-glazed tissue products, including wax paper products for retail food wrappers and machine-glazed tissue parent rolls for third-party converters.

Our consumer products are manufactured on 21 paper machines in our facilities located throughout the U.S. and in Ontario, Canada. Parent rolls from these paper machines are then converted and packaged at our converting facilities located across the U.S. Three of our paper machines, located in Nevada, North Carolina and Ontario produce TAD tissue that we convert into national brand comparable, ultra quality towels and/or bath tissue.

In 2013 and 2012, through multi-outlet channels, which include grocery, drug, dollar, super and club stores, as well as military purchasing, we sold approximately 34% of the total private label tissue products in the U.S. When only considering private label tissue products sold in grocery stores, we sold approximately 65% of the total private label tissue products sold in the U.S. for 2013 and 2012.

We believe that we are the only U.S. consumer tissue manufacturer that solely produces a full line of quality private label tissue products for large retail trade channels. Most U.S. tissue producers manufacture only branded products, or both branded and private label products, or in the case of certain smaller or midsize manufacturers, only produce a limited range of tissue products or quality segments. Branded producers generally manufacture their private label products at a quality grade or two below their branded products so as not to impair sales of the branded products. Because we do not produce and market branded tissue products, we believe we are able to offer products that match the quality of leading national brands, but generally at lower prices. We are committed to maintaining a high level of quality for our products that matches the quality of the leading national brands, and we utilize independent companies to routinely test our product quality.

We sell private label tissue products through our own sales force based on product quality, customer service and price. We deliver customer-focused business solutions by assisting in managing product assortment, category management, and pricing and promotion optimization.

Pulp and Paperboard Segment

Our Pulp and Paperboard segment manufactures and markets bleached paperboard for the high-end segment of the packaging industry and is a leading producer of SBS paperboard. This segment also produces hardwood and softwood pulp, which is primarily used as the basis for our paperboard products, and slush pulp, which it supplies to our Consumer Products segment. In 2013, our Pulp and Paperboard segment had net sales of $740.1 million. A listing of our pulp and paperboard facilities is included under Part I, Item 2 of this report.

Pulp and Paperboard Industry Overview

SBS paperboard is a premium paperboard grade that is most frequently used to produce folding cartons, liquid packaging, cups and plates as well as commercial printing items. SBS paperboard is used to make these products because it is manufactured using virgin fiber combined with the kraft bleaching process, which results in superior cleanliness, brightness and consistency. SBS paperboard is often manufactured with a clay coating to provide superior surface printing qualities. SBS paperboard can also be extrusion coated with a plastic film to provide a moisture barrier for some uses.

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In general, the process of making paperboard begins by chemically cooking wood fibers to make pulp. The pulp is bleached to provide a white, bright pulp, which is formed into paperboard. Bleached pulp that is to be used as market pulp is dried and baled on a pulp drying machine, bypassing the paperboard machines. The various grades of paperboard are wound into rolls for shipment to customers for converting to final end uses. Liquid packaging and cup stock grades are often coated with polyethylene, a plastic coating, in a separate operation to create a resistant and durable liquid barrier.

Folding Carton Segment. Folding carton is the largest portion of the SBS category of the U.S. paperboard industry comprising approximately 41% of the category in 2013. Within the folding carton segment there are varying qualities of SBS paperboard. The high end of the folding carton category in general requires a premium print surface and includes uses such as packaging for pharmaceuticals, cosmetics and other premium retail goods. SBS paperboard is also used in the packaging of frozen foods, beverages and baked goods.

Liquid Packaging and Cup Segment. SBS liquid packaging paperboard is primarily used in the U.S. for the packaging of juices. In Japan and other Asian countries, SBS liquid packaging paperboard is primarily used for the packaging of milk and other liquid items. The cup segment of the market consists primarily of hot and cold drink cups and food packaging. The hot and cold cups are primarily used to serve beverages in quick-service restaurants, while round food containers are often used for packaging premium ice-cream and dry food products.

Commercial Printing Segment. Commercial printing applications use bleached bristols, which are heavyweight paper grades, to produce postcards, signage and sales literature. Bristols can be clay coated on one side or both sides for applications such as brochures, presentation folders and paperback book covers. The customers in this segment are accustomed to high-quality paper grades, which possess superior printability and brightness compared to most paperboard packaging grades. Suppliers to this segment must be able to deliver small volumes, often within 24 hours.

Market Pulp. The majority of the pulp manufactured worldwide is integrated with paper and paperboard production, usually at the same mill. In those cases where a paper mill does not produce its own pulp, it must purchase it on the open market. Market pulp is defined as pulp produced for sale to these customers and it excludes tonnage consumed by the producing mill or shipped to any of its affiliated mills within the same company.

Our Pulp and Paperboard Business

Our Pulp and Paperboard segment operates facilities in Idaho, which has two paperboard machines, and Arkansas, which has one paperboard machine. As of December 31, 2013, we were one of the five largest producers of bleached paperboard in North America with approximately 11% of the available production capacity.

Our overall pulp and paperboard production consists primarily of folding carton, liquid packaging, cup, plate, commercial printing grades and hardwood and softwood pulp.

Folding carton board used in pharmaceuticals, cosmetics and other premium packaging, such as those that incorporate foil and holographic lamination, accounts for the largest portion of our total paperboard sales. We focus on high-end folding carton applications where the heightened focus on product quality provides for differentiation among suppliers, resulting in margins that are more attractive than less critical packaging applications.

Our liquid packaging paperboard is known for its cleanliness and printability, and is engineered for long-lived performance due to its three-ply, softwood construction. Our reputation for producing liquid packaging meeting the most demanding standards for paperboard quality and cleanliness has resulted in meaningful sales in Japan, where consumers have a particular tendency to associate blemish-free, vibrant packaging with the cleanliness, quality and freshness of the liquids contained inside.

We also sell cup stock and plate stock grades for use in food service products. A majority of our sales in this area consist of premium clay coated cup stock grades used for high-end food packaging, such as premium ice cream.

We do not produce converted paperboard end-products, so we are not simultaneously a supplier of and a competitor to our customers. Of the five largest SBS paperboard producers in the U.S., we are the only producer that does not also convert SBS paperboard into end products. We believe our position as a non-integrated supplier has resulted in a diverse group of loyal customers because when there is decreased market supply of paperboard, we do not divert our production to internal uses.

At our Idaho facility we produce bleached softwood pulp primarily for internal use. As a result of the acquisition of Cellu Tissue, which relied entirely on purchased pulp, we have significantly decreased external sales of pulp produced by our Pulp and Paperboard segment and instead utilize that pulp in our Consumer Products segment. Depending on market factors, we may sell some pulp externally going forward.

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Our pulp mills are currently capable of producing approximately 856,000 tons of pulp on an annual basis. In 2013, we utilized 80% of our pulp production, or approximately 650,000 tons, to produce approximately 766,000 tons of paperboard. The increase in tonnage from pulp to paperboard production is due to the addition of coatings and other manufacturing processes. We also used 19% of our pulp production, or approximately 158,000 tons, in our Consumer Products segment to produce tissue products. The remaining 1% of our pulp production, or approximately 9,000 tons, was sold externally.

We utilize various methods for the sale and distribution of our paperboard and softwood pulp. The majority of our paperboard is sold to packaging converters domestically through sales offices located throughout the U.S., with a smaller percentage channeled through distribution to commercial printers. The majority of our international paperboard sales are conducted through sales agents and are primarily denominated in U.S. dollars. Our principal methods of competing are product quality, customer service and price.

RAW MATERIALS AND INPUT COSTS

For our manufacturing operations, the principal raw material used is wood fiber, which consists of purchased pulp and chips, sawdust and logs. During 2013, our purchased pulp costs were 17.6% of our cost of sales, while chips, sawdust and logs accounted for 8.3%. In 2013, our Consumer Products segment sourced approximately 30% of its total pulp supply from our Pulp and Paperboard segment, with the remainder purchased from external suppliers. We operate a wood chipping facility located in Clarkston, Washington, near our Lewiston, Idaho, facility in an effort to bolster our wood fiber position and obtain short-term and long-term cost savings.

We utilize a significant amount of chemicals in the production of pulp and paper, including caustic, polyethylene, starch, sodium chlorate, latex and specialty process paper chemicals. Many of the chemicals used in our manufacturing processes, particularly in the pulp-making process, are petroleum-based or are impacted by petroleum prices. During 2013, chemical costs accounted for 11.5% of our cost of sales.

Transportation is a significant cost input for our business. Fuel prices impact our transportation costs for delivery of raw materials to our manufacturing facilities and delivery of our finished products to customers. Our total transportation costs were 10.8% of our cost of sales in 2013.

We consume substantial amounts of energy, such as electricity, hog fuel, steam and natural gas. During 2013, energy costs accounted for 7.6% of our cost of sales. We purchase a significant portion of our natural gas and electricity under supply contracts, most of which are between a specific facility and a specific local provider. Under most of these contracts, the providers have agreed to provide us with our requirements for a particular type of energy at a specific facility. Most of these contracts have pricing mechanisms that adjust or set prices based on current market prices. In addition, we use firm-price contracts to mitigate price risk for certain of our energy requirements.

As a significant producer of private label consumer tissue products, we also incur expenses related to packaging supplies used for retail chains, wholesalers and cooperative buying organizations. Our total packaging costs for 2013 were 6.2% of our cost of sales.

Our maintenance and repairs, including major maintenance and repairs, represented 5.8% of our cost of sales for 2013 and are expensed as incurred. We perform routine maintenance on our machines and equipment and periodically replace a variety of parts such as motors, pumps, pipes and electrical parts.

We also record depreciation expense associated with our plant and equipment. Depreciation expense was 4.8% of our cost of sales for 2013.

SEASONALITY

Our Consumer Products segment experiences some drop in shipments during the fourth quarter generally as a result of decreased consumer demand, retail brand holiday promotions, and end of year inventory management by non-retail customers.  In addition, customer buying patterns for our paperboard generally result in lower sales for our Pulp and Paperboard segment during the first and fourth quarters, when compared to second and third quarters of a given year.

ENVIRONMENTAL

Information regarding environmental matters is included under Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this report, and is incorporated herein by reference.

WEBSITE

Interested parties may access our periodic and current reports filed with the SEC, at no charge, by visiting our website, www.clearwaterpaper.com. In the menu select “Investor Relations,” then select “Financial Information & SEC Filings.” Information on our website is not part of this report.

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EMPLOYEES

As of December 31, 2013, we had approximately 3,860 employees, of which approximately 2,610 were employed by our Consumer Products segment, approximately 1,110 were employed by our Pulp and Paperboard segment and approximately 140 were corporate administration employees. This workforce consisted of approximately 760 salaried employees and approximately 3,100 hourly and fixed rate employees. As of December 31, 2013, approximately 53% of our workforce was covered under collective bargaining agreements.

Unions represent hourly employees at eight of our manufacturing sites. There was one hourly union labor contract that expired in 2013, which was renegotiated during the year. Four collective bargaining agreements expire in 2014 and will need to be renegotiated:

CONTRACT EXPIRATION DATE	DIVISION AND LOCATION	UNION	APPROXIMATE NUMBER OF HOURLY EMPLOYEES
August 31, 2014	Consumer Products Division and Pulp & Paperboard Division-Lewiston, Idaho	United Steel Workers (USW)	1,000
August 31, 2014	Consumer Products Division and Pulp & Paperboard Division-Lewiston, Idaho	International Brotherhood of Electrical Workers (IBEW)	55
October 31, 2014	Consumer Products Division- Natural Dam, New York	United Steel Workers (USW)	75
December 13, 2014	Consumer Products Division- Menominee, Michigan	United Steel Workers (USW)	95

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EXECUTIVE OFFICERS OF THE REGISTRANT

The following individuals are deemed our “executive officers” under the Securities Exchange Act of 1934 as of December 31, 2013. Executive officers of the company are generally appointed as such at the annual meeting of our board, and each officer holds office until the officer’s successor is duly elected and qualified or until the earlier of the officer’s death, resignation, retirement, removal by the board or as otherwise provided in our bylaws. There are no arrangements or understandings between any of our executive officers and any other persons pursuant to which they were selected as officers. No family relationships exist among any of our executive officers.

Linda K. Massman (age 47), has served as Chief Executive Officer and as a director since January 2013. Ms. Massman served as President and Chief Operating Officer from November 2011 until December 31, 2012, and as Chief Financial Officer from December 2008 to April 2012. From May 2011 to November 2011, Ms. Massman served as Senior Vice President, Finance, and as Vice President, Finance from December 2008 to May 2011. From September 2008 to December 2008, Ms. Massman served as a Vice President of Potlatch Corporation, pending completion of the spin-off of Clearwater Paper Corporation. From May 2002 to August 2008, Ms. Massman served as the Group Vice President, Finance and Corporate Planning for SUPERVALU Inc., a grocery retail company.

John D. Hertz (age 47) joined the company in June 2012 as Senior Vice President, and has served as Senior Vice President, Finance and Chief Financial Officer since August 2012. Before joining our company, Mr. Hertz was the Vice President and Chief Financial Officer, of Novellus Systems, Inc., a position he held from June 2010 to June 2012. From October 2007 to June 2010, he served as Novellus' Vice President of Corporate Finance and Principal Accounting Officer and as Vice President and Corporate Controller from June 2007 to October 2007. From 2000 to 2007, Mr. Hertz worked for Intel Corporation where he held a number of positions, including Central Finance Controller of the Digital Enterprise Group, Finance Controller of the Enterprise Platform Services Division and Accounting Policy Controller. Prior to that Mr. Hertz was a Senior Manager with KPMG.

Michael S. Gadd (age 49) has served as Senior Vice President since May 2011 and General Counsel and Corporate Secretary since December 2008. In addition, he served as Vice President from December 2008 to May 2011. From March 2006 to December 2008, Mr. Gadd served as Associate General Counsel of Potlatch Corporation, and served as Corporate Secretary of Potlatch from July 2007 to December 2008. From 2000 to January 2006, Mr. Gadd was an attorney with Perkins Coie, LLP in Portland, Oregon.

Thomas A. Colgrove (age 62), has served as Senior Vice President and President of Consumer Products since January 2013, and served as Senior Vice President and President of Pulp and Paperboard from May 2011 until December 31, 2012. Mr. Colgrove served as Vice President of Pulp and Paperboard from May 2009 to May 2011. He was employed by Kimberly-Clark Corporation from 1984 to 2009, in various manufacturing management positions, including as Senior Director-North America Product Supply with responsibility for seven North American tissue facilities from September 2006 to April 2009.

Danny G. Johansen (age 63) has served as Senior Vice President and President of Pulp and Paperboard since January 2013. From December 2008 through December 2012, he served as Vice President, Sales and Marketing, for Pulp and Paperboard. Prior to December 2008, Mr. Johansen was employed by Potlatch Corporation for nearly 36 years. From 2002 to December 2008, he served as the Director of Sales, Idaho Pulp and Paperboard division, for Potlatch.

Jackson O. Lynch (age 45) has served as Senior Vice President of Human Resources since April 2013. Before joining our company, Mr. Lynch served as Vice President of Human Resources for Nestlé USA’s Direct Store Delivery division from March 2010 to February 2013. From June 2007 to March 2010, he served as National Director of Human Resources for Nestlé USA's Dreyer's Ice Cream division. Prior to June 2007, Mr. Lynch held various senior human resources roles with PepsiCo, Inc.

8

ITEM 1A.

Risk Factors

Our business, financial condition, results of operations and liquidity are subject to various risks and uncertainties, including those described below, and as a result, the trading price of our common stock could decline.

The expansion of our TAD tissue offerings may not proceed as anticipated.

In connection with our long-term growth strategy, we built a new TAD paper machine and installed five converting lines at our facility in Shelby, North Carolina and upgraded our TAD manufacturing capabilities at our Las Vegas, Nevada facility. As these are recently completed projects, we are still in the process of optimizing the mix and the quality of the TAD products being produced at these facilities, the converting and distribution of our TAD and existing tissue products and the sales mix of our new TAD product offerings with existing product lines. We also continue to work with existing customers as well as new customers to develop marketing and sales programs in connection with the new TAD products. These ongoing efforts entail numerous risks, including difficulties in integrating the new TAD products with existing products, difficulties in integrating the new operations and personnel with our other tissue operations and market acceptance of and demand for the new TAD products. Any of these risks, if realized, could have a material adverse effect on our business, financial condition, results of operations and liquidity. In addition, such events could also divert management's attention from other business concerns.

Additionally, over the past few years, several new or refurbished TAD paper machines have been completed or announced by our competitors, including private label competitors, that will result in a substantial increase in the supply of TAD tissue in the North American market. This increase in supply of TAD products, as well as the effects of that increased supply in displacing existing conventional tissue product sales, could have a material adverse effect on the price of TAD tissue products and on the market demand for conventional tissue products, which will continue to represent a majority of our total production for the foreseeable future.

The loss of, or a significant reduction in, orders from, or changes in prices in regards to, any of our large customers could adversely affect our operating results and financial condition.

In 2013, our Consumer Products segment derived approximately 33% of its net sales and we derived approximately 20% of our total net sales from three customers. If we lose any of these customers or a substantial portion of their business or if the terms of our relationship with any of them becomes less favorable to us, our net sales would decline, which would harm our business, results of operations and financial condition. We have experienced increased price and promotion competition for our consumer products customers, particularly in regards to TAD products, which can decrease our gross margins and adversely affect our financial condition. Some of our customers have the capability to produce the parent rolls or products themselves that they purchase from us. Our Pulp and Paperboard segment sells its products to a large number of customers, although certain customers have historically purchased a significant amount of our pulp or paperboard products.

We do not have long-term contracts with any of our customers, including our largest customers, that ensure a continuing level of business from them. In addition, our agreements with our customers are not exclusive and generally do not contain minimum volume purchase commitments. Our relationship with our large customers will depend on our ability to continue to meet their needs for quality products and services at competitive prices. If we lose one or more of these customers or if we experience a significant decline in the level of purchases by any of them, we may not be able to quickly replace the lost business volume and our operating results and business could be harmed. In addition, our focus on these large accounts could affect our ability to serve our smaller accounts, particularly when product supply is tight and we are not able to fully satisfy orders for these smaller accounts.

We depend on external sources of wood pulp, which subjects our business and results of operations to potentially significant fluctuations in the price of market pulp.

Our Consumer Products segment sources a significant portion of its wood pulp requirements from external suppliers. In 2013, it sourced approximately 70% of its pulp requirements externally. Approximately 17.6% of our cost of sales in 2013 consisted of purchased pulp costs. Our dependence on external sources of wood pulp increases our exposure to fluctuations in prices for wood pulp, which in turn could have a material adverse effect on our financial results, operations and cash flows.

Pulp prices can, and have, changed significantly from one period to the next. The volatility of pulp prices can adversely affect our earnings if we are unable to pass cost increases on to our customers or if the timing of any price increases for our products significantly trails the increases in pulp prices. We have not hedged these risks.

9

Changes in the cost and availability of wood fiber used in production of our products may adversely affect our results of operations and cash flow.

Wood fiber is the principal raw material used to create wood pulp, which in turn is used to manufacture our pulp and paperboard products and consumer products. In 2013, our wood fiber costs were 8.3% of our cost of sales. Much of the wood fiber we use in our pulp manufacturing process in Lewiston, Idaho, is the by-product of sawmill operations. As a result, the price of these residual wood fibers is affected by operating levels in the lumber industry. The significant reduction in home building over the past five years resulted in the closure or curtailment of operations at many sawmills. The price of wood fiber is expected to remain volatile until the housing market recovers and sawmill operations increase. Additionally, the supply and price of wood fiber can be negatively affected by weather and other events.

The effects on market prices for wood fiber resulting from various governmental programs involving tax credits or payments related to biomass and other renewable energy projects are uncertain and could result in a reduction in the supply of wood fiber available for our pulp and paperboard manufacturing operations. If we and our pulp suppliers are unable to obtain wood fiber at favorable prices or at all, our costs will increase and financial results, operations and cash flows may be materially adversely affected.

We incur significant expenses to maintain our manufacturing equipment and any interruption in the operations of our facilities may harm our operating performance.

We regularly incur significant expenses to maintain our manufacturing equipment and facilities. The machines and equipment that we use to produce our products are complex, have many parts and some are run on a continuous basis. We must perform routine maintenance on our equipment and will have to periodically replace a variety of parts such as motors, pumps, pipes and electrical parts. In addition, our pulp and paperboard facilities require periodic shutdowns to perform major maintenance. These scheduled shutdowns of facilities result in decreased sales and increased costs in the periods in which a shutdown occurs and could result in unexpected operational issues in future periods as a result of changes to equipment and operational and mechanical processes made during the shutdown period.

Unexpected production disruptions could cause us to shut down or curtail operations at any of our facilities. For example, we have had to curtail operations at certain of our facilities as the result of an electrical malfunction and a fire in previous years. Disruptions could occur due to any number of circumstances, including prolonged power outages, mechanical or process failures, shortages of raw materials, natural catastrophes, disruptions in the availability of transportation, labor disputes, terrorism, changes in or non-compliance with environmental or safety laws and the lack of availability of services from any of our facilities' key suppliers. Any facility shutdowns may be followed by prolonged startup periods, regardless of the reason for the shutdown. Those startup periods could range from several days to several weeks, depending on the reason for the shutdown and other factors. Any prolonged disruption in operations at any of our facilities could cause significant lost production, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

Increases in our transportation costs or disruptions in our transportation services could have a material adverse effect on our business.

Our business, particularly our Consumer Products business, is dependent on transportation services to deliver our products to our customers and to deliver raw materials to us. In 2013, our transportation costs were 10.8% of our cost of sales. The costs of these transportation services are primarily determined by fuel prices, which have steadily increased since 2008 and are affected by geopolitical and economic events. We have not been in the past, and may not be in the future, able to pass along part or all of any fuel price increases to customers. If we are unable to increase our prices as a result of increased fuel costs charged to us by transportation providers, our gross margins may be materially adversely affected.

If any transportation providers fail to deliver raw materials to us in a timely manner, we may be unable to manufacture products on a timely basis. Shipments of products and raw materials may be delayed or disrupted due to weather conditions, labor strikes, regulatory actions or other events. Any failure of a third-party transportation provider to deliver raw materials or products in a timely manner could harm our reputation, negatively affect our customer relationships and have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our business and financial performance may be harmed by future labor disruptions.

As of December 31, 2013, 53% of our full-time employees are represented by unions under collective bargaining agreements. As these agreements expire, we may not be able to negotiate extensions or replacement agreements on terms acceptable to us. Four collective bargaining agreements have a 2014 expiration date and will need to be renegotiated. Any failure to reach an agreement with one of the unions may result in strikes, lockouts or other labor actions. Any such labor actions, including work slowdowns in the future or stoppages, could have a material adverse effect on our operations and financial results.

10

The cost of chemicals and energy needed for our manufacturing processes significantly affects our business.

We use a variety of chemicals in our manufacturing processes, including latex and polyethylene, many of which are petroleum-based chemicals. In 2013, our chemical costs were 11.5% of our cost of sales. Prices for these chemicals have been and are expected to remain volatile. In addition, chemical suppliers that use petroleum-based products in the manufacture of their chemicals may, due to supply shortages and cost increases, ration the amount of chemicals available to us, and therefore we may not be able to obtain at favorable prices the chemicals we need to operate our business, if we are able to obtain them at all.

Our manufacturing operations utilize large amounts of electricity and natural gas and our energy requirements, particularly natural gas, have increased significantly as a result of operations at our North Carolina facility. In 2013, our energy costs were 7.6% of our cost of sales. Energy prices have fluctuated widely over the past decade, which in turn affects our cost of sales. We purchase on the open market a substantial portion of the natural gas necessary to produce our products, and, as a result, the price and other terms of those purchases are subject to change based on factors such as worldwide supply and demand, geopolitical events, government regulation, and natural disasters. Our energy costs in future periods will depend principally on our ability to produce a substantial portion of our electricity needs internally, on changes in market prices for natural gas and on reducing energy usage.

Any significant energy shortage or significant increase in our energy costs in circumstances where we cannot raise the price of our products could have a material adverse effect on our business, financial condition, results of operations and cash flows. Any disruption in the supply of energy could also affect our ability to meet customer demand in a timely manner and could harm our reputation.

Larger competitors have operational and other advantages over our operations.

The markets for our products are highly competitive, and companies that have substantially greater financial resources compete with us in each market. Some of our competitors have advantages over us, including lower raw material and labor costs and better access to the inputs of our products.

Our Consumer Products business faces competition from companies that produce the same type of products that we produce or that produce alternative products that customers may use instead of our products. Our Consumer Products business competes with the branded tissue products producers, such as Procter & Gamble, and branded label producers who manufacture branded and private label products, such as Georgia-Pacific and Kimberly-Clark. These companies are far larger than us, have much greater sales, marketing and research and development resources than we do, and enjoy significant cost advantages due to economies of scale. In addition, because of their size and resources, these companies may foresee market trends more accurately than we do and develop new technologies that render our products less attractive or obsolete.

Our ability to successfully compete in the pulp and paperboard industry is influenced by a number of factors, including manufacturing capacity, general economic conditions and the availability and demand for paperboard substitutes. Our Pulp and Paperboard business competes with International Paper, MeadWestvaco, Georgia-Pacific, RockTenn and international producers, most of whom are much larger than us. Any increase in manufacturing capacity by any of these or other producers could result in overcapacity in the pulp and paperboard industry, which could cause downward pressure on pricing. For example, several new, large paperboard manufacturing facilities in China have recently been, or soon will be, completed, the output of which is expected to increase paperboard supplies on the international market. In addition, customers could choose to use types of paperboard that we do not produce or could rely on alternative materials, such as plastic, for their products. An increased supply of any of these products could cause us to lower our prices or lose sales to competitors, either of which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

The consolidation of paperboard converting businesses, including through the acquisition and integration of such converting business by larger competitors of ours, could result in a loss of customers and sales on the part of our Pulp and Paperboard business, which does not include paperboard converting facilities or capabilities. A loss of paperboard customers or sales as a result of consolidations and integrations could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Changes in demand for certain products could adversely affect our financial results.

Our ability to compete successfully depends on our ability to adjust to increases and decreases in demand. If we are unable to respond to increases in demand, we may need to limit deliveries of some orders for existing customers, which could harm our reputation and our long-term relationships with these customers. Alternatively, if we experience a decrease in demand for certain products, we may incur significant costs in revising our manufacturing plan. If we are not able to respond to changes in demand for our products in a timely manner, our financial position, results of operations and cash flows may be adversely affected.

11

Competitors' branded products and private label products could have an adverse effect on our financial results.

Our consumer products compete with well-known, branded products, as well as other private label products. Inherent risks in our competitive strategy include whether our products will receive direct and retail customer acceptance, new product offerings by competitors, the effects of consolidation within retailer and distribution channels, and price competition from companies that may have greater financial resources than we do. If we are unable to offer our existing customers, or new customers, tissue products comparable to branded products or private label TAD products in terms of quality and/or price, we may lose business or we may not be able to grow our existing business and be forced to sell lower-margin products, all of which could negatively affect our financial condition and results of operations.

Increased competition and supply from foreign manufacturers could have adverse effects on the demand for our products and financial results.

Foreign manufacturers, particularly in Asia, are currently increasing, and are expected to continue to increase, their paper production capabilities, particularly of paperboard. This, in turn, may result in increased competition in the North American paper markets from direct sales by foreign competitors into these markets and/or increased competition in the U.S. as domestic manufacturers seek increased U.S. sales to offset displaced overseas sales caused by increased sales by Asian suppliers into those markets. An increased supply of Asian paper products could cause us to lower our prices or lose sales to competitors, either of which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our company-sponsored pension plans are currently underfunded, and we are required to make cash payments to the plans, reducing cash available for our business.

We have company-sponsored pension plans covering certain of our salaried and hourly employees. The significant decline in the securities markets beginning in 2008 and resulting substantial decline in the value of equity and fixed income investments held by these plans, coupled with a low interest rate environment resulting in higher liability valuations, caused these plans to be underfunded so that the projected benefit obligation exceeded the aggregate fair value of plan assets. At December 31, 2013, and 2012, our company sponsored pension plans were underfunded in the aggregate by approximately $6.8 million and $78.7 million, respectively. As a result of underfunding, we are required to make contributions to our qualified pension plans. In 2013, we contributed $15.1 million to these pension plans. We may be required to make increased annual contributions to our pension plans in future years, which would reduce the cash available for business and other needs.

We may be required to pay material amounts under multiemployer pension plans.

We contribute to two multiemployer pension plans. The amount of our annual contributions to each of these plans is negotiated with the plan and the bargaining unit representing our employees covered by the plan. In 2013, we contributed approximately $6 million to these plans, and in future years we may be required to make increased annual contributions, which would reduce the cash available for business and other needs. In addition, in the event of a partial or complete withdrawal by us from any multiemployer plan that is underfunded, we would be liable for a proportionate share of such multiemployer plan's unfunded vested benefits, referred to as a withdrawal liability. A withdrawal liability is considered a contingent liability. In the event that any other contributing employer withdraws from any multiemployer plan that is underfunded, and such employer cannot satisfy its obligations under the multiemployer plan at the time of withdrawal, then the proportionate share of the plan’s unfunded vested benefits that would be allocable to us and to the other remaining contributing employers, would increase and there could be an increase to our required annual contributions. In renegotiations of collective bargaining agreements with labor unions that participate in these multiemployer plans, we may decide to discontinue participation in these plans.

One of the multiemployer pension plans to which we contribute, the PACE Industry Union-Management Pension Fund, or PIUMPF, was certified to be in “critical status” for the plan year beginning January 1, 2010, and continued to be in critical status for the plan year beginning January 1, 2013. In 2013, two large employers withdrew from PIUMPF. Further withdrawals by other contributing employers could cause a “mass withdrawal” from, or effectively a termination of, PIUMPF or alternatively we could elect to withdraw. Although we have no current intention to withdraw from PIUMPF, if we were to withdraw, either completely or partially, we would incur a withdrawal liability based on our share of PIUMPF’s unfunded vested benefits. Based on information as of December 31, 2012 provided by PIUMPF and reviewed by our actuarial consultant, we estimate that, as of December 31, 2013, the payments that we would be required to make to PIUMPF in the event of our complete withdrawal would be approximately $5.7 million per year on a pre-tax basis. These payments would continue for 20 years, unless we were deemed to be included in a “mass withdrawal” from PIUMPF, in which case these payments would continue in perpetuity. However, we are not able to determine the exact amount of our withdrawal liability because the amount could be higher or lower depending on the nature and timing of any triggering event, the funded status of the plan and our level of contributions to the plan prior to the triggering event. These withdrawal liability payments would be in addition to pension contributions to any new pension plan adopted or contributed to by us to replace PIUMPF, all of which would reduce the cash available for business and other needs. Adverse changes to pension laws and regulations could increase the likelihood and amount of our liabilities arising under PIUMPF.

12

Our pension and health care costs are subject to numerous factors which could cause these costs to change.

In addition to our pension plans, we provide health care benefits to certain of our current and former U.S. salaried and hourly employees. There is a risk of higher enrollment and claims in our health care plans and likely increased costs due to the Affordable Care Act’s individual mandate and required coverage. Our health care costs vary with changes in health care costs generally, which have significantly exceeded general economic inflation rates for many years. Our pension costs are dependent upon numerous factors resulting from actual plan experience and assumptions about future investment returns. Pension plan assets are primarily made up of equity and fixed income investments. Fluctuations in actual equity market returns as well as changes in general interest rates may result in increased pension costs in future periods. Likewise, changes in assumptions regarding current discount rates and expected rates of return on plan assets could also increase pension costs. Significant changes in any of these factors may adversely impact our cash flows, financial condition and results of operations.

We are subject to significant environmental regulation and environmental compliance expenditures, which could increase our costs and subject us to liabilities.

We are subject to various federal, state and foreign environmental laws and regulations concerning, among other things, water discharges, air emissions, hazardous material and waste management and environmental cleanup. Environmental laws and regulations continue to evolve and we may become subject to increasingly stringent environmental standards in the future, particularly under air quality and water quality laws and standards related to climate change issues, such as reporting of greenhouse gas emissions. Increased regulatory activity at the state, federal and international level is possible regarding climate change as well as other emerging environmental issues associated with our manufacturing sites, such as water quality standards based on elevated fish consumption rates. Compliance with regulations that implement new public policy in these areas might require significant expenditures on our part or even the curtailment of certain of our manufacturing operations.

We are required to comply with environmental laws and the terms and conditions of multiple environmental permits. In particular, the pulp and paper industry in the United States is subject to several performance based rules associated with effluent and air emissions as a result of certain of its manufacturing processes. Federal, state and local laws and regulations require us to routinely obtain authorizations from and comply with the evolving standards of the appropriate governmental authorities, which have considerable discretion over the terms of permits. Failure to comply with environmental laws and permit requirements could result in civil or criminal fines or penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing our operations or requiring us to take corrective measures, install pollution control equipment, or take other remedial actions, such as product recalls or labeling changes. We also may be required to make additional expenditures, which could be significant, relating to environmental matters on an ongoing basis.

In 2012, we were notified that the U.S. Environmental Protection Agency, or EPA, submitted a civil referral to the U.S. Department of Justice, or DOJ, alleging violations of the Clean Air Act stemming from an EPA investigation at our Lewiston, Idaho pulp facility. Prior to the filing of any formal action, we and the DOJ agreed to discuss the resolution of the allegations, and the parties entered into an agreement to toll the statute of limitations. The tolling agreement expires on July 31, 2014, unless further extended by the parties. Discussions with the DOJ and EPA are ongoing. However, this matter could result in civil penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing our operations or requiring us to take corrective measures, install pollution control equipment, or take other remedial actions.

We own properties, conduct or have conducted operations at properties, and have assumed indemnity obligations in connection with our spin-off in 2008 from Potlatch Corporation, for properties or operations where hazardous materials have been or were used for many years, including during periods before careful management of these materials was required or generally believed to be necessary. Consequently, we will continue to be subject to risks under environmental laws that impose liability for historical releases of hazardous substances. There can be no assurance that future environmental permits will be granted or that we will be able to maintain and renew existing permits, and the failure to do so could have a material adverse effect on our results of operations, financial condition and cash flows.

We rely on information technology in critical areas of our operations, and a disruption relating to such technology could harm our financial condition.

We use information technology, or IT, systems in various aspects of our operations, including enterprise resource planning, or ERP, management of inventories and customer sales. Some of these systems have been in place for long periods of time. Additionally, with the acquisition of Cellu Tissue, we have different legacy IT systems which we are continuing to integrate, including the implementation of a single company-wide ERP system. If one of these systems or the ERP implementation was to fail or cause operational or reporting interruptions, or if we decide to change these systems or hire outside parties to provide these systems, we may suffer disruptions, which could have a material adverse effect on our results of operations and financial condition. In addition, we may underestimate the costs and expenses of developing and implementing new systems.

13

We face cyber-security risks.

Our business operations rely upon secure information technology systems for data capture, processing, storage and reporting. Despite careful security and controls design, implementation and updating, our information technology systems could become subject to cyber attacks. Network, system, application and data breaches could result in operational disruptions or information misappropriation, which could result in lost sales, business delays, negative publicity and could have a material adverse effect on our business, results of operations and financial condition.

United States and global economic conditions could have adverse effects on the demand for our products and financial results.

U.S. and global economic conditions have negatively affected and may continue to negatively affect our business and financial results. For example, the away-from-home consumer paper products market has experienced a decline because of the slowdown in the travel and restaurant industries as a result of the ongoing economic downturn. Recessed economic conditions affect our business in a number of ways, including causing: (i) increased pressure for price concessions from customers; (ii) declines in domestic and global demand for paperboard; (iii) shifts in customer purchases that affect the mix of our product sales; (iv) decreased or low housing starts, which increase production costs due to lower wood fiber supplies; and (v) financial distress or insolvency for certain customers which could affect our sales volumes or our ability to collect accounts receivable on a timely basis from those customers.

Cyclical industry conditions have in the past affected and may continue to adversely affect the operating results and cash flow of our Pulp and Paperboard business.

Our Pulp and Paperboard business is particularly affected by cyclical market conditions. We may be unable to sustain pricing in the face of weaker demand, and weaker demand may in turn cause us to take production downtime. In addition to lost revenue from lower shipment volumes, production downtime causes unabsorbed fixed manufacturing costs due to lower production levels. Our results of operations and cash flows may be materially adversely affected in a period of prolonged and significant market weakness. We are not able to predict market conditions or our ability to sustain pricing and production levels during periods of weak demand.

We rely on a limited number of third-party suppliers for certain raw materials required for the production of our products.

Our dependence on a limited number of third-party suppliers, and the challenges we may face in obtaining adequate supplies of raw materials, involve several risks, including limited control over pricing, availability, quality, and delivery schedules. We cannot be certain that our current suppliers will continue to provide us with the quantities of these raw materials that we require or will continue to satisfy our anticipated specifications and quality requirements. Any supply interruption in limited raw materials could materially harm our ability to manufacture our products until a new source of supply, if any, could be identified and qualified. Although we believe there are other suppliers of these raw materials, we may be unable to find a sufficient alternative supply channel in a reasonable time or on commercially reasonable terms. Any performance failure on the part of our suppliers could interrupt production of our products, which would have a material adverse effect on our business.

Additional expansion of our business through construction of new facilities or acquisitions may not proceed as anticipated.

In addition to the acquisition of Cellu Tissue and construction of our North Carolina facility, in the future we may build other converting and papermaking facilities, pursue acquisitions of existing facilities, or both. We may be unable to identify future suitable building locations or acquisition targets. In addition, we may be unable to achieve anticipated benefits or cost savings from construction projects or acquisitions in the timeframe we anticipate, or at all. Any inability by us to integrate and manage any new or acquired facilities or businesses in a timely and efficient manner, any inability to achieve anticipated cost savings or other anticipated benefits from these projects or acquisitions in the time frame we anticipate or any unanticipated required increases in promotional or capital spending could adversely affect our business, financial condition, results of operations or liquidity. Large construction projects or acquisitions can result in a decrease in our cash and short-term investments, an increase in our indebtedness, or both, and also may limit our ability to access additional capital when needed and divert management's attention from other business concerns.

14

The indentures for our outstanding notes that we issued in 2010 and 2013, and the credit agreement governing our senior secured revolving credit facility, contain various covenants that limit our discretion in the operation of our business.

The indentures governing our outstanding notes that we issued in 2010 and 2013, and the credit agreement governing our senior secured revolving credit facility, contain various provisions that limit our discretion in the operation of our business by restricting our ability to:

▪ undergo a change in control;

▪ sell assets;

▪ pay dividends and make other distributions;

▪ make investments and other restricted payments;

▪ redeem or repurchase our capital stock;

▪ incur additional debt and issue preferred stock;

▪ create liens;

▪ consolidate, merge, or sell substantially all of our assets;

▪ enter into certain transactions with our affiliates;

▪ engage in new lines of business; and

▪ enter into sale and lease-back transactions.

These restrictions on our ability to operate our business at our discretion could seriously harm our business by, among other things, limiting our ability to take advantage of financing, merger and acquisition and other corporate opportunities. In addition, our senior secured revolving credit facility requires, among other things, that we maintain a minimum fixed charge coverage ratio of at least 1.0-to-1.0 when availability falls below $50 million or an event of default exists. Events beyond our control could affect our ability to meet this financial test, and we cannot assure you that we will meet it.

Our failure to comply with the covenants contained in our senior secured revolving credit facility or the indentures governing our outstanding notes, including as a result of events beyond our control, could result in an event of default that could cause repayment of the debt to be accelerated.

If we are not able to comply with the covenants and other requirements contained in the indentures governing our outstanding notes, our senior secured revolving credit facility or our other debt instruments, an event of default under the relevant debt instrument could occur. If an event of default does occur, it could trigger a default under our other debt instruments, prohibit us from accessing additional borrowings, and permit the holders of the defaulted debt to declare amounts outstanding with respect to that debt to be immediately due and payable. Our assets and cash flow may not be sufficient to fully repay borrowings under our outstanding debt instruments. In addition, we may not be able to refinance or restructure the payments on the applicable debt. Even if we were able to secure additional financing, it may not be available on favorable terms.

To service our indebtedness, we must generate significant cash flows. Our ability to generate cash depends on many factors beyond our control.

Our ability to make payments on and to refinance our indebtedness, including our outstanding notes, and to fund planned capital expenditures, will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

We cannot assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available to us under our senior secured revolving credit facility in an amount sufficient to enable us to pay our indebtedness, including the notes, or to fund our other liquidity needs. We cannot assure you that we will be able to refinance any of our indebtedness, including our senior secured revolving credit facility and our existing notes, on commercially reasonable terms or at all.

15

Certain provisions of our certificate of incorporation and bylaws and Delaware law may make it difficult for stockholders to change the composition of our Board of Directors and may discourage hostile takeover attempts that some of our stockholders may consider to be beneficial.

Certain provisions of our certificate of incorporation and bylaws and Delaware law may have the effect of delaying or preventing changes in control if our Board of Directors determines that such changes in control are not in the best interests of the company and our stockholders. The provisions in our certificate of incorporation and bylaws include, among other things, the following:

▪ a classified Board of Directors with three-year staggered terms;

▪ the ability of our Board of Directors to issue shares of preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval;

▪ stockholder action can only be taken at a special or regular meeting and not by written consent;

▪ advance notice procedures for nominating candidates to our Board of Directors or presenting matters at stockholder meetings;

▪ removal of directors only for cause;

▪ allowing only our Board of Directors to fill vacancies on our Board of Directors; and

▪ supermajority voting requirements to amend our bylaws and certain provisions of our certificate of incorporation.

While these provisions have the effect of encouraging persons seeking to acquire control of the company to negotiate with our Board of Directors, they could enable the Board of Directors to hinder or frustrate a transaction that some, or a majority, of the stockholders might believe to be in their best interests and, in that case, may prevent or discourage attempts to remove and replace incumbent directors. We are also subject to Delaware laws that could have similar effects. One of these laws prohibits us from engaging in a business combination with a significant stockholder unless specific conditions are met.

ITEM 1B.

Unresolved Staff Comments

None.

16

ITEM 2.

Properties

FACILITIES

We own and operate facilities located throughout the United States and one in Canada. The following table lists each of our facilities and its location, use, and 2013 capacity and production: 

	USE	LEASED OR OWNED	CAPACITY		PRODUCTION1
CONSUMER PRODUCTS
Tissue manufacturing facilities:
East Hartford, Connecticut	Tissue	Owned	36,000	tons	32,000	tons
Gouverneur, New York	Tissue	Owned	39,000	tons	39,000	tons
Ladysmith, Wisconsin	Tissue	Owned	56,000	tons	52,000	tons
Las Vegas, Nevada	TAD tissue	Owned	38,000	tons	35,000	tons
Lewiston, Idaho	Tissue	Owned	190,000	tons	185,000	tons
Menominee, Michigan	Machine-glazed tissue	Owned	36,000	tons	34,000	tons
Neenah, Wisconsin	Tissue	Owned	84,000	tons	80,000	tons
Shelby, North Carolina3	TAD tissue	Owned/Leased	70,000	tons	54,000	tons
St. Catharines, Ontario	TAD tissue	Owned	20,000	tons	22,000	tons
	Machine-glazed tissue		23,000	tons	23,000	tons
Wiggins, Mississippi	Tissue	Owned	29,000	tons	29,000	tons
	Machine-glazed tissue		33,000	tons	33,000	tons
			654,000	tons	618,000	tons
Tissue converting facilities:
Central Islip, New York2	Tissue converting	Leased	38,000	tons	29,000	tons
Elwood, Illinois2	Tissue converting	Leased	68,000	tons	58,000	tons
Las Vegas, Nevada	Tissue converting	Owned	61,000	tons	52,000	tons
Lewiston, Idaho	Tissue converting	Owned	95,000	tons	72,000	tons
Menominee, Michigan	Machine-glazed tissue converting	Owned	27,000	tons	6,000	tons
Neenah, Wisconsin	Tissue converting	Owned	99,000	tons	63,000	tons
Oklahoma City, Oklahoma2	Tissue converting	Leased	29,000	tons	15,000	tons
Shelby, North Carolina3	Tissue converting	Owned/Leased	62,000	tons	37,000	tons
Thomaston, Georgia2, 4	Tissue converting	Leased	—	tons	12,000	tons
			479,000	tons	344,000	tons
PULP AND PAPERBOARD
Pulp Mills:
Cypress Bend, Arkansas	Pulp	Owned	316,000	tons	291,000	tons
Lewiston, Idaho	Pulp	Owned	540,000	tons	526,000	tons
			856,000	tons	817,000	tons
Bleached Paperboard Mills:
Cypress Bend, Arkansas	Paperboard	Owned	343,000	tons	325,000	tons
Lewiston, Idaho	Paperboard	Owned	445,000	tons	441,000	tons
			788,000	tons	766,000	tons
CORPORATE
Alpharetta, Georgia	Operations and administration	Owned/Leased		N/A		N/A
Spokane, Washington	Corporate headquarters	Leased		N/A		N/A

¹ Production amounts are approximations for full year 2013.

²  The buildings located at these facilities are leased by Clearwater Paper or a subsidiary, and the operating equipment located within the building is owned by Clearwater Paper or a subsidiary.

³ In December 2012, our new TAD tissue machine in North Carolina began producing tissue. In addition to two converting lines installed in 2011, and two more converting lines installed in 2012, at our North Carolina location, two more tissue converting lines at that site became operational during 2013.

⁴  On March 6, 2013, we announced the planned permanent closure of our Thomaston, Georgia converting and distribution facility. As of December 31, 2013, all converting lines have been relocated and installed at our other facilities. As a result, the capacity from our Thomaston facility has been reallocated accordingly.

In addition to the manufacturing facilities listed in this table, we own a chip shipment facility in Columbia City, Oregon and a chipping producing facility in Clarkston, Washington.

17

ITEM 3.

Legal Proceedings

On August 13, 2012, we were notified that the U.S. Environmental Protection Agency, or EPA, submitted a civil referral to the U.S. Department of Justice, or DOJ, alleging violations of the Clean Air Act stemming from an EPA investigation that included an inspection of our Lewiston, Idaho pulp facility in July 2009 and a subsequent information request dated February 24, 2011. On July 19, 2013, the EPA issued to us an additional information request. Prior to the filing of any formal action, we and the DOJ agreed to discuss the resolution of the allegations. On October 21, 2013, the parties entered into a new agreement to toll the statute of limitations. The tolling period commenced as of September 14, 2012 and expires on July 31, 2014, unless further extended by the parties. Discussions with the DOJ and EPA are ongoing.

In addition to the matters discussed above, we may from time to time be involved in claims, proceedings and litigation arising from our business and property ownership. We believe, based on currently available information, that the results of such proceedings, in the aggregate, will not have a material adverse effect on our financial condition.

ITEM 4.

Mine Safety Disclosures

Not applicable.

18

Part II

ITEM 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

MARKET FOR OUR COMMON STOCK

Our common stock is traded on the New York Stock Exchange. The following table sets forth, for each period indicated, the high and low sales prices of our common stock during our two most recent years.

	Common Stock Price
	High		Low
Year Ended December 31, 2013:
Fourth Quarter	$	53.91	$	47.15
Third Quarter	50.40		45.13
Second Quarter	52.47		44.64
First Quarter	53.01		38.94
Year Ended December 31, 2012:
Fourth Quarter	$	42.79	$	37.33
Third Quarter	41.98		33.37
Second Quarter	34.79		29.84
First Quarter	40.19		32.51

HOLDERS

On February 14, 2014, the last reported sale price for our common stock on the New York Stock Exchange was $65.88 per share. As of February 14, 2014, there were approximately 1,000 registered holders of our common stock.

DIVIDENDS

We have not paid any cash dividends and do not anticipate paying a cash dividend in 2014. We will continue to review whether payment of a cash dividend on our common stock in the future best serves the company and our stockholders. The declaration and amount of any dividends, however, will be determined by our Board of Directors and will depend on our earnings, our compliance with the terms of our notes and revolving credit facility that contain certain restrictions on our ability to pay dividends, and any other factors that our Board of Directors believes are relevant.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

Please see Part III, Item 12 of this report for information relating to our equity compensation plans.

ISSUER PURCHASES OF EQUITY SECURITIES

On February 5, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

On January 17, 2013, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock, which was completed in 2013. The repurchases were authorized to be carried out by the utilization of a number of different methods, including but not limited to, open market purchases, accelerated buybacks and negotiated block purchases. On March 1, 2013, we entered into an accelerated stock buyback, or ASB, agreement with a major financial institution to repurchase an aggregate of $50.0 million of our outstanding common stock. In total, 1,039,513 shares of our outstanding common stock were delivered under the ASB agreement at an average repurchase price of $48.10 per share. In addition to the ASB agreement, we also made repurchases of 1,030,657 shares of our outstanding common stock on the open market at a total cost of $50.0 million, representing an average price of $48.51 per share.

19

On July 28, 2011, we announced that our Board of Directors had authorized the repurchase of up to $30.0 million of our common stock. Under the stock repurchase program, we were authorized to repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. We completed this repurchase program in the fourth quarter of 2012. The total number of shares repurchased under this program was 853,470 at an aggregate cost of $30.0 million and an average price of $35.15 per share.

The following table provides information about share repurchases that we made during the three months ended December 31, 2013:

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
October 1, 2013 to October 31, 2013	494,760	$	48.95	494,760	$	—
November 1, 2013 to November 30, 2013	—	$	—	—	$	—
December 1, 2013 to December 31, 2013	—	$	—	—	$	—
Total	494,760	$	48.95	494,760

ITEM 6.

Selected Financial Data

All of the data listed below has been derived from our audited financial statements. Our historical financial and other data is not necessarily indicative of our future performance. In addition, all amounts below for 2010 reflect the acquisition of Cellu Tissue on December 27, 2010, including four days of Cellu Tissue’s operating results and incurrence of acquisition related expenses. Amounts for 2011 forward, are reflective of the sale of our Lewiston, Idaho sawmill in November 2011.

Earnings per share and common shares outstanding data have been retroactively adjusted to reflect our two-for-one stock split that was effected in the form of a stock dividend distributed on August 26, 2011 to shareholders of record on August 12, 2011.

(In thousands, except earnings per share amounts)	2013		2012		2011		2010		2009
Net sales	$	1,889,830	$	1,874,304	$	1,927,973	$	1,372,965	$	1,250,069
Income from operations1	99,328		145,387		115,445		98,767		297,440
Net earnings	106,955		64,131		39,674		73,800		182,464
Working capital2	375,975		293,733		390,839		394,346		452,583
Long-term debt, net of current portion	650,000		523,933		523,694		538,314		148,285
Stockholders’ equity	605,094		540,894		484,904		468,349		363,736
Capital expenditures3	86,508		207,115		137,743		47,033		19,328
Property, plant and equipment, net	884,698		877,377		735,566		654,456		364,024
Total assets	1,744,825		1,633,456		1,571,318		1,545,336		947,463
Basic net earnings per common share	$	4.84	$	2.75	$	1.73	$	3.22	$	8.03
Basic average common shares outstanding	22,081		23,299		22,914		22,947		22,721
Diluted net earnings per common share	$	4.80	$	2.72	$	1.66	$	3.12	$	7.75
Diluted average common shares outstanding	22,264		23,614		23,952		23,670		23,540

¹  Income from operations for the year ended December 31, 2009, included $170.6 million associated with the Alternative Fuel Mixture Tax Credit.

²  Working capital is defined as our current assets less our current liabilities as presented on our Consolidated Balance Sheets.

³  Capital expenditures in 2012, 2011 and 2010 primarily include expenditures related to our through-air-dried tissue expansion project at our Shelby, North Carolina, and Las Vegas, Nevada, manufacturing and converting facilities.

20

ITEM 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto that appear elsewhere in this report. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results may differ materially from those discussed in these forward-looking statements due to a number of factors, including those set forth in the section entitled “Risk Factors” and elsewhere in this report.

Unless the context otherwise requires or unless otherwise indicates, references in this report to “Clearwater Paper Corporation,” “we,” “our,” “the company” and “us” refer to Clearwater Paper Corporation and its subsidiaries.

OVERVIEW

2013 Highlights

Consumer Products Expansion

In December 2012, we announced the start-up of our new through-air-dried, or TAD, paper machine and the completion of two additional converting lines that became operational in Shelby, North Carolina during the fourth quarter of 2012. With the completion of two additional converting lines at that facility in 2013, bringing the total to six, and upgrades to our TAD tissue manufacturing facility in Las Vegas, Nevada, we expect to increase our ultra and premium offerings to existing and new customers.

Overall, our TAD tissue expansion project, or TAD project, will allow us to supply a full range of TAD products, including paper towels and bath tissue, to customers across the U.S., while reducing transportation costs. We believe this project, along with our existing manufacturing capabilities, establishes us as the only private label tissue products company in the U.S. to offer a full line of tissue products to customers.

Capital Allocation

On February 5, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

On January 23, 2013, we issued $275 million aggregate principal amount of 4.5% senior notes, which we refer to as the 2013 Notes. Approximately $166 million of the net proceeds from the issuance was used to redeem all of our $150 million aggregate principal amount of 10.625% senior notes due 2016, which we refer to as the 2009 Notes.

On January 17, 2013, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock, which was completed in fourth quarter. The repurchases were authorized to be carried out by the utilization of a number of different methods, including but not limited to, open market purchases, accelerated buybacks and negotiated block purchases. On March 1, 2013, we entered into an accelerated stock buyback, or ASB, agreement with a major financial institution to repurchase an aggregate of $50.0 million of our outstanding common stock. In total, 1,039,513 shares of our outstanding common stock were delivered under the ASB agreement at an average repurchase price of $48.10 per share. In addition to the ASB agreement, we also made repurchases of 1,030,657 shares of our outstanding common stock on the open market at a total cost of $50.0 million, representing an an average price of $48.51 per share.

Facility Closures

On March 6, 2013, we announced the planned permanent closure of our Thomaston, Georgia converting and distribution facility. The shutdown occurred gradually as converting lines were relocated and installed at our other facilities, with all operations at Thomaston having ceased at the end of 2013. We incurred $6.0 million of costs associated with the closure in 2013.

On February 17, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced the permanent and immediate closure of our Long Island, New York, tissue converting and distribution facility. We expect the total impact of non-recurring exit related costs to be approximately $12 million to $15 million, of which approximately $10 million is expected to be incurred in 2014 and the remainder in 2015.

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Business

We are a leading producer of private label tissue and premium bleached paperboard products. Our products are primarily wood pulp-based and predominately manufactured in the U.S.

Our business is organized into two reporting segments:

• Our Consumer Products segment manufactures and sells a complete line of at-home tissue products in each tissue category, including bathroom tissue, paper towels, napkins and facial tissue. We also manufacture away-from-home tissue, or AFH, machine-glazed tissue and parent rolls for external sales. Our integrated manufacturing and converting operations and geographic footprint enable us to deliver a broad range of cost-competitive products with brand equivalent quality to our consumer products customers. In 2013, our Consumer Products segment had net sales of $1.1 billion, representing approximately 61% of our total net sales.

• Our Pulp and Paperboard segment manufactures and markets bleached paperboard for the high-end segment of the packaging industry and is a leading producer of solid bleach sulfate paperboard. This segment also produces hardwood and softwood pulp, which is primarily used as the basis for our paperboard products, and slush pulp, which it supplies to our Consumer Products segment. In 2013, our Pulp and Paperboard segment had net sales of $740.1 million, representing approximately 39% of our total net sales.

Developments and Trends in our Business

Net Sales

Prices for our consumer tissue products are affected by competitive conditions and the prices of branded tissue products. Tissue has historically been one of the strongest segments of the paper and forest products industry due to its steady demand growth and the absence of severe supply imbalances that occur in a number of other paper segments. In recent years the industry has seen an increase in TAD tissue products as industry participants have added or improved TAD production facilities. Our Consumer Products segment competes based on product quality, customer service and price. We deliver customer-focused business solutions by assisting in managing product assortment, category management, and pricing and promotion optimization.

Our pulp and paperboard business experiences cyclical market conditions and is affected by macro-economic conditions around the world. As a result, historical prices for our products and sales volumes have been volatile. Product pricing is significantly affected by the relationship between supply and demand for our products. Product supply in the industry is influenced primarily by fluctuations in available manufacturing production, which tends to increase during periods when prices remain strong. In addition, currency exchange rates affect U.S. supplies of paperboard, as non-U.S. manufacturers are attracted to the U.S. market when the dollar is relatively strong. Our paperboard business, through exports denominated in U.S. dollars, has benefited significantly from general weakness in the U.S. dollar over the past few years. Paperboard pricing was relatively flat when comparing 2013 to 2012.

The markets for our products are highly competitive and companies that have substantially greater financial resources than we do compete with us in each of our markets. In addition, our businesses are capital intensive, which leads to high fixed costs, large capital outlays and generally results in continued production as long as prices are sufficient to cover variable costs. These conditions have contributed to substantial price competition, particularly during periods of reduced demand. Some of our competitors have lower production costs and greater buying power and, as a result, may be less adversely affected than we are by price decreases.

Net sales consist of sales of consumer tissue and pulp and paperboard, net of discounts, returns and allowances and any sales taxes collected.

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Operating Costs

Prices for our principal operating cost items are variable and directly affect our results of operations. For example, as economic conditions improve, we normally would expect at least some upward pressure on these operating costs. Competitive market conditions can limit our ability to pass cost increases through to our customers.

	Years Ended December 31,
	2013				2012				2011
(Dollars in thousands)	Cost		Percentage of Cost of Sales		Cost		Percentage of Cost of Sales		Cost		Percentage of Cost of Sales
Purchased pulp	$	294,911	17.6	%	$	242,921	15.1	%	$	291,595	17.1	%
Chemicals	191,473		11.5		183,606		11.5		174,660		10.3
Transportation1	180,188		10.8		171,114		10.6		185,329		10.9
Chips, sawdust and logs	139,456		8.3		162,904		10.1		196,017		11.5
Energy	126,687		7.6		109,592		6.8		130,179		7.6
Packaging supplies	103,286		6.2		86,282		5.4		94,926		5.6
Maintenance and repairs2	97,006		5.8		98,217		6.1		99,775		5.9
Depreciation	80,758		4.8		69,880		4.3		70,564		4.1
	$	1,213,765	72.6	%	$	1,124,516	69.9	%	$	1,243,045	73.0	%

¹ Includes internal and external transportation costs.

²  Excluding related labor costs.

Purchased pulp. We purchase a significant amount of the pulp needed to manufacture our consumer products, and to a lesser extent our paperboard, from external suppliers. For 2013, total purchased pulp costs were 17.6% of our cost of sales, representing a 2.5 percentage point increase compared to 2012. The higher purchased pulp costs were due primarily to increased usage associated with the ramp up of our North Carolina TAD paper machine. In addition, higher purchased pulp costs were driven by increased pricing, as well as the need to purchase additional pulp from external suppliers to offset the reduction from internal sources resulting from the planned major maintenance at our Idaho pulp and paperboard facility during the third quarter of 2013 and the machine downtime taken at our Arkansas pulp and paperboard facility in the first quarter of 2013.

Chemicals. We consume a substantial amount of chemicals in the production of pulp and paperboard, as well as in the production of our tissue products. The chemicals we generally use include polyethylene, caustic, starch, sodium chlorate, latex and specialty paper process chemicals. A large portion of the chemicals used in our manufacturing processes, particularly in the pulp-making process, are petroleum-based and are impacted by petroleum prices.

Our chemical costs increased $7.9 million compared to 2012, due to increased pricing for polyethylene and other processing chemicals, as well as higher chemical consumption resulting from the first year of production on our North Carolina TAD paper machine. In addition, chemical consumption increased in 2013 at our Arkansas pulp and paperboard facility due to recovery boiler operational issues in the second quarter.

Transportation. Fuel prices impact transportation costs related to delivery of raw materials to our manufacturing facilities, internal inventory transfers and delivery of our finished products to customers. Changing fuel prices particularly affect our margins for consumer products because we supply customers throughout the U.S. and transport unconverted parent rolls from our tissue mills to our tissue converting facilities. Our transportation costs for 2013, compared to 2012, were $9.1 million higher as a result of increased shipping costs related to an increase in average miles shipped and increased shipments of converted TAD products, as well as lower first quarter inventory levels for our Consumer Products segment related to our TAD transition. The reduced inventory levels required multiple shifts in regional distributions for our tissue product lines, and as a result we incurred an overall increase of internal tons shipped.

Chips, sawdust and logs. We purchase chips, sawdust and logs used to manufacture pulp. We source residual wood fibers under both long-term and short-term supply agreements, as well as in the spot market. Overall costs decreased by $23.4 million for chips, sawdust and logs for 2013, compared to 2012. The overall decline in the 2013 period was primarily attributable to lower overall pricing at our Idaho pulp and paperboard facility and decreased usage due to our planned major maintenance during the third quarter of 2013 at the same facility. In addition, we experienced decreased usage at our Arkansas pulp and paperboard facility due to recovery boiler operational issues, which were partially offset by higher overall pricing at our Arkansas facility due primarily to supply limitations caused by wet weather conditions in the region for part of 2013.

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Energy. We use energy in the form of electricity, hog fuel, steam and natural gas to operate our mills. Energy prices have fluctuated widely over the past decade. We have taken steps, and intend to continue to take steps, to reduce our exposure to volatile energy prices through conservation. In addition, cogeneration facilities that produce steam and electricity at our East Hartford, Connecticut, Lewiston, Idaho and Menominee, Michigan manufacturing sites help to lower our energy costs. TAD tissue production, however, involves increased natural gas usage as compared to conventional tissue manufacturing and, as a result, our natural gas requirements have increased with the ramp up our North Carolina TAD paper machine. Energy costs for 2013 were 15.6% higher than 2012 due to the first full year of production on our North Carolina TAD paper machine, as well as an increase in average market pricing for natural gas. To help mitigate our exposure to changes in natural gas prices, from time to time we have used firm-price contracts to supply a portion of our natural gas requirements. As of December 31, 2013, these contracts covered approximately 55% of the expected average monthly requirements for the first quarter of 2014. Our energy costs in future periods will depend principally on our ability to produce a substantial portion of our electricity needs internally, on changes in market prices for natural gas and on our ability to reduce our energy usage through conservation.

Packaging supplies. As a significant producer of private label consumer tissue products, we package to order for retail chains, wholesalers and cooperative buying organizations. Under our agreements with those customers, we are responsible for the expenses related to the unique packaging of our products for direct retail sale to consumers. For 2013, packaging costs were $17.0 million higher than 2012 primarily due to higher retail case shipments of facial and bathroom tissue and an increase in prices for poly wrapping and corrugated cardboard.

Maintenance and repairs. We regularly incur significant costs to maintain our manufacturing equipment. We perform routine maintenance on our machines and periodically replace a variety of parts such as motors, pumps, pipes and electrical parts.

Major equipment maintenance and repairs in our Pulp and Paperboard segment also require maintenance shutdowns approximately every 18 to 24 months, which increase costs and may reduce net sales in the quarters in which the major maintenance shutdowns occur. Our next planned major maintenance outage is scheduled for the spring of 2015. During the first quarter of 2013, we had four days of machine downtime costing $5.0 million, excluding labor, at our Arkansas facility. During the third quarter of 2013, we incurred 11 days of paper machine downtime, costing $17.5 million, for the planned major maintenance at our Idaho facility. There was no major maintenance in the second and fourth quarters of 2013.

In addition to ongoing maintenance and repair costs, we make capital expenditures to increase our operating capacity and efficiency, to improve safety at our facilities and to comply with environmental laws. Excluding $11.9 million of expenditures for our TAD project, we spent $74.5 million on capital expenditures during 2013.

Depreciation. We record substantially all of our depreciation expense associated with our plant and equipment in "Cost of sales" on our Consolidated Statements of Operations. Depreciation expense for 2013 was $10.9 million higher than 2012 due primarily to $10.7 million of additional depreciation expense associated with our North Carolina TAD paper machine, which started up in December 2012.

Other. Other costs not included in the above table primarily consist of wage and benefit expenses and miscellaneous operating costs. Although period cut-offs and inventory levels can impact cost of sales amounts, we would expect this impact to be relatively steady as a percentage of costs on a period-over-period basis. We experienced an increase in wage and benefit expenses in 2013, compared to 2012, due largely to the incremental costs associated with the startup of our North Carolina TAD facility, as well as higher overall employee costs.

Selling, general and administrative expenses

Selling, general and administrative expenses primarily consist of compensation and associated costs for sales and administrative personnel, as well as commission expenses related to sales of our products. Our total selling, general and administrative costs were $119.1 million in 2013 compared to $121.0 million in 2012. The lower expense for 2013 was due primarily to a decrease in profit-dependent compensation accruals and lower legal expenses during 2013, partially offset by a $2.7 million increase in mark-to-market expense related to our directors' common stock units in 2013 compared to 2012.

Interest expense

Interest expense is mostly comprised of interest on the 2013 Notes and our $375 million aggregate principal amount of 7.125% senior notes due 2018 issued in October 2010, which we refer to as the 2010 Notes. Interest expense also includes amortization of deferred issuance costs associated with all of our notes and our revolving credit facility. As a result of the issuance of the 2013 Notes at an interest rate significantly lower than that of our former 2009 Notes, which were redeemed in the first quarter of 2013 using a portion of the proceeds from the 2013 Notes, our interest expense decreased by approximately $3.6 million on an annual basis. However, this favorable change in interest expense associated with our notes was more than offset by a decrease in capitalized interest, as no interest was capitalized in 2013 compared to total capitalized interest of $12.6 million in 2012.

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Income taxes

Income taxes are based on reported earnings and tax rates in jurisdictions in which our operations occur and offices are located, adjusted for available credits, changes in valuation allowances and differences in reported earnings and taxable income using current law and enacted tax rates. The annual rate, including discrete items, for the year ended December 31, 2013, was a benefit of 179.7%, compared to expense of 42.5% and 44.1% for 2012 and 2011, respectively. The reasons for the change in the tax rate from 2013 compared to 2012 and 2011 were primarily due to three items. The first was a decrease in the rate attributable to the release of uncertain tax positions, resulting in a benefit to the rate of 180.9%. The second was a decrease due to the additional Cellulosic Biofuel Producer Credits, or CBPC, identified as part of an Internal Revenue Service audit that were previously unclaimed, as well as a conversion from the Alternative Fuel Mixture Tax Credit, or AFMTC, to CBPC, which resulted in benefits to the rate of 26.7%. Finally, a decrease in the rate due to state tax credits resulted in a benefit to the rate of 5.9%.

The estimated annual effective tax rate for 2014 is expected to be approximately 38%.

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RESULTS OF OPERATIONS

Our business is organized into two reporting segments: Consumer Products and Pulp and Paperboard. Intersegment costs for pulp transferred from our Pulp and Paperboard segment to our Consumer Products segment are recorded at cost, and thus no intersegment sales or cost of sales for these transfers are included in our segments' results. Our financial and other data are not necessarily indicative of our future performance.

YEAR ENDED DECEMBER 31, 2013 COMPARED TO YEAR ENDED DECEMBER 31, 2012

The following table sets forth data included in our Consolidated Statements of Operations as a percentage of net sales.

	Years Ended December 31,
(Dollars in thousands)	2013					2012
Net sales	$	1,889,830		100.0	%	$	1,874,304		100.0	%
Costs and expenses:
Cost of sales	(1,671,371		)	88.4		(1,607,872		)	85.8
Selling, general and administrative expenses	(119,131		)	6.3		(121,045		)	6.5
Total operating costs and expenses	(1,790,502		)	94.7		(1,728,917		)	92.2
Income from operations	99,328			5.3		145,387			7.8
Interest expense, net	(44,036		)	2.3		(33,796		)	1.8
Debt retirement costs	(17,058		)	0.9		—			—
Earnings before income taxes	38,234			2.0		111,591			6.0
Income tax benefit (provision)	68,721			3.6		(47,460		)	2.5
Net earnings	$	106,955		5.7	%	$	64,131		3.4	%

Net sales—Net sales for 2013 increased by $15.5 million, or 0.8%, compared to 2012, due to increased shipments of paperboard and higher net selling prices for retail tissue, which were favorably affected by a larger proportion of higher-priced TAD product sales. These favorable comparisons were partially offset by lower non-retail shipments, as well as lower external pulp shipments as we continue to increase our consumption of our internally produced pulp within our Consumer Products segment. These items are discussed further below under “Discussion of Business Segments.”

Cost of sales—Cost of sales increased 2.6 percentage points in 2013 to 88.4% of net sales, compared to 85.8% of net sales in 2012. The increase was primarily a result of $15.7 million in TAD transition costs incurred during the 2013 period, an increase in depreciation expense of $10.7 million related to our North Carolina TAD machine, $6.0 million of costs related to the Thomaston, Georgia facility closure, $2.9 million of incremental costs associated with an electrical disruption and operational issues with maintenance and repairs on the recovery boiler at our Arkansas pulp and paperboard facility, and higher energy, employee and packaging costs.

Selling, general and administrative expenses—Selling, general and administrative expenses decreased $1.9 million, or 1.6%, during 2013 when compared to 2012, due to a decrease in profit-dependent compensation accruals and lower legal expense, which was higher in 2012 due to the First Quality/Metso Paper litigation. These decreases were partially offset by a $4.1 million mark-to-market expense adjustment related to our directors' common stock units compared to $1.4 million of such expense in 2012.

Interest expense—Interest expense increased $10.2 million during 2013, compared to the same period of 2012. The increase was attributable to the absence of capitalized interest during the current year, compared to $12.6 million of capitalized interest associated with our TAD tissue expansion project in 2012. The increase in interest expense was partially offset by the benefit of refinancing the 2009 Notes with proceeds from the issuance of the 2013 Notes, which carry a significantly lower interest rate.

Debt retirement costs—Debt retirement costs include a one-time charge in connection with the complete redemption of the 2009 Notes on February 22, 2013. Total costs of $17.1 million include cash charges of approximately $14 million related to a “make whole” premium plus accrued and unpaid interest and a non-cash charge of approximately $3 million related to the write off of deferred issuance costs and unamortized discounts.

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Income tax provision—During 2013 and 2012, there were a number of items that were included in the calculation of our income tax provision that we do not believe were indicative of our core operating performance. Excluding these items, the adjusted tax rate for 2013 would have been 33.3%, compared to an adjusted 36.8% in 2012. The following table details these items:

	Years Ended December 31,
(In thousands)	2013			2012
Income tax benefit (provision)	$	68,721		$	(47,460	)
Special items, tax impact:
Discrete tax items related to settlement of uncertain tax positions	(67,457		)	—
Discrete tax items related to tax credit conversions	(9,832		)	6,398
Debt retirement costs	(6,277		)	—
Discrete tax items related to additional CBPC	(3,495		)	—
Costs associated with Thomaston facility closure	(2,033		)	—
Directors' equity-based compensation expense	(1,399		)	(609		)
Loss on sale of foam assets	—			(356		)
Expense associated with Metso litigation	—			(709		)
Adjusted income tax provision	$	(21,772	)	$	(42,736	)

We recorded an income tax benefit of $68.7 million in 2013, compared to a provision of $47.5 million in 2012. The generally accepted accounting principles, or GAAP, rate for 2013 was a benefit of 179.7%, compared to a provision of 42.5% for 2012. The lower rate was the result of the net impact of reporting discrete items, primarily relating to an additional benefit realized from a release of uncertain tax positions.

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DISCUSSION OF BUSINESS SEGMENTS

Consumer Products

	Years Ended December 31,
(Dollars in thousands - except per ton amounts)	2013			2012
Net sales	$	1,149,692		$	1,134,556
Operating income	52,799			93,347
Percent of net sales	4.6		%	8.2		%
Shipments (short tons)
Non-retail	231,243			237,655
Retail	295,529			293,672
Total tissue tons	526,772			531,327
Converted products cases (in thousands)	55,135			53,675
Sales price (per short ton)
Non-retail	$	1,470		$	1,466
Retail	2,740			2,674
Total tissue	$	2,183		$	2,134

Our Consumer Products segment reported an increase in net sales of $15.1 million, or 1.3%, for 2013, compared to 2012. The higher net sales were due primarily to a 2.5% increase in retail tissue net selling prices, largely attributable to a higher proportion of higher-priced TAD product sales, and a 2.7% increase in converted retail tissue case shipments, softened by a 2.7% decrease in non-retail shipments.

Segment operating income for 2013 decreased by $40.5 million compared to the same period in 2012, primarily driven by TAD transition costs of $15.7 million, an increase in depreciation expense of $10.7 million related to our North Carolina TAD machine, and higher energy and employee costs also largely related to the ramp up of the North Carolina facility. In addition, operating income was unfavorably affected by $6.0 million of costs associated with the closure of our Thomaston, Georgia facility, as well as increased packaging costs due to increased pricing for poly wrapping and corrugated cardboard. The TAD transition costs were incurred in the first three quarters of 2013 and consisted primarily of increased transportation, manufacturing and outside purchased paper costs associated with the increased conventional tissue sales we took on to help offset the displacement of conventional tissue sales expected by the ramp up of our new Ultra TAD bathroom tissue product in 2013.

Pulp and Paperboard

	Years Ended December 31,
(Dollars in thousands - except per ton amounts)	2013			2012
Net sales	$	740,138		$	739,748
Operating income	95,781			103,910
Percent of net sales	12.9		%	14.0		%
Paperboard shipments (short tons)	765,052			760,919
Paperboard sales price (per short ton)	$	958		$	956

Net sales for our Pulp and Paperboard segment in 2013 were relatively flat when compared to 2012. While both shipments and net selling pricing for our paperboard increased slightly, these gains were partially offset by a continued decrease in net sales of external pulp, which is a direct result of our continued utilization of internally produced pulp in our Consumer Products segment.

Operating income for the segment decreased $8.1 million during 2013, compared to 2012. The lower operating income was primarily due to incremental costs of $2.9 million associated with an electrical disruption and operational issues with maintenance and repairs on the recovery boiler at our Arkansas pulp and paperboard facility, an increase of approximately 25% in average market pricing for natural gas, and higher employee, transportation and chemical costs.

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YEAR ENDED DECEMBER 31, 2012 COMPARED TO YEAR ENDED DECEMBER 31, 2011

The following table sets forth data included in our Consolidated Statements of Operations as a percentage of net sales.

	Years Ended December 31,
(Dollars in thousands)	2012					2011
Net sales	$	1,874,304		100.0	%	$	1,927,973		100.0	%
Costs and expenses:
Cost of sales	(1,607,872		)	85.8		(1,702,530		)	88.3
Selling, general and administrative expenses	(121,045		)	6.5		(109,998		)	5.7
Total operating costs and expenses	(1,728,917		)	92.2		(1,812,528		)	94.0
Income from operations	145,387			7.8		115,445			6.0
Interest expense, net	(33,796		)	1.8		(44,809		)	2.3
Other, net	—			—		284			—
Earnings before income taxes	111,591			6.0		70,920			3.7
Income tax provision	(47,460		)	2.5		(31,246		)	1.6
Net earnings	$	64,131		3.4		$	39,674		2.1

Net sales—Net sales for 2012 decreased by $53.7 million, or 2.8%, compared to 2011, due to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $80.3 million of net sales in 2011. Excluding the impact of net sales from the sawmill in 2011, overall net sales were higher in 2012 due to increased shipments and higher net selling prices for our consumer products as well as increased paperboard shipments. These favorable comparisons were partially offset by lower external pulp shipments, due to increased internal usage of pulp we produce, and lower pulp and paperboard net selling prices. These items are discussed further below under “Discussion of Business Segments.”

Cost of sales—Cost of sales decreased 2.5 percentage points in 2012 to 85.8% of net sales, compared to 88.3% of net sales in 2011. The favorable change in cost of sales was due primarily to lower costs for purchased pulp, chips, sawdust and logs, energy, and transportation, partially offset by higher chemical costs.

Selling, general and administrative expenses—Selling, general and administrative expenses increased $11.0 million, or 10.0%, during 2012 compared to 2011. The increase was primarily a result of higher wage and benefits expense, increased incentive compensation expense, expense related to the First Quality/Metso Paper litigation and additional expenses associated with the integration of Cellu Tissue Holdings, or Cellu Tissue, and incremental expenses associated with achieving net cost saving synergies from the integration.

Interest expense—Interest expense in 2012 was mostly comprised of interest on the 2010 Notes and the 2009 Notes, as well as the amortization of deferred finance costs associated with these notes and our revolving credit facility. Interest expense in 2012 was partially offset by our capitalization of interest for our TAD project. Interest expense before reductions for capitalized interest in 2012 decreased slightly compared to 2011 primarily as a result of the third quarter 2011 redemption of our industrial revenue bonds.

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Income tax provision—During 2012 and 2011, there were a number of items that were included in the calculation of our income tax provision that we do not believe were indicative of our core operating performance. Excluding these items, the adjusted tax rate for 2012 would have been 36.8%, compared to an adjusted 40.5% in 2011. The following table details these items:

	Years Ended December 31,
(In thousands)	2012			2011
Income tax provision	$	(47,460	)	$	(31,246	)
Special items, tax impact:
Discrete tax items related to tax credit conversions	6,398			96
Expense associated with Metso litigation	(709		)	—
Directors' equity-based compensation expense	(609		)	(651		)
Loss on sale of foam assets	(356		)	—
Discrete tax items related to settlement of uncertain tax positions	—			2,610
Lewiston, Idaho sawmill sale related adjustments	—			(1,271		)
Adjusted income tax provision	$	(42,736	)	$	(30,462	)

We recorded an income tax provision of $47.5 million in 2012, compared to a provision of $31.2 million in 2011. The GAAP rate for 2012 was a provision of 42.5%, compared to a provision of 44.1% for 2011. The reasons for the change in the tax rate from 2012 compared to 2011 was primarily due to four items. The first was a decrease in the rate attributable to state tax credits. The second was a decrease due to a remeasurement of state deferred tax assets and liabilities using anticipated future tax rates that will be in effect when the underlying assets and liabilities reverse. The third was a reduction of the valuation allowance relating to foreign tax credits. Lastly, the decision in the first quarter of 2012 to convert certain gallons of alternative fuel originally claimed in 2009 under the AFMTC which had been converted by us in 2010 to the CBPC, back to gallons under the AFMTC and associated uncertain tax position.

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DISCUSSION OF BUSINESS SEGMENTS

Consumer Products

	Years Ended December 31,
(Dollars in thousands - except per ton amounts)	2012			2011
Net sales	$	1,134,556		$	1,092,133
Operating income	93,347			42,806
Percent of net sales	8.2		%	3.9		%
Shipments (short tons)
Non-retail	237,655			216,109
Retail	293,672			299,410
Total tissue tons	531,327			515,519
Converted products cases (in thousands)	53,675			49,865
Sales price (per short ton)
Non-retail	$	1,466		$	1,484
Retail	2,674			2,577
Total tissue	$	2,134		$	2,119

Net sales for our Consumer Products segment in 2012 increased $42.4 million, or 3.9%, compared to 2011 due to increased shipments and higher average net selling prices. Overall shipments increased 3.1% due to increased case sales of retail tissue products, which were largely attributable to increased shipments of lighter weight TAD tissue from our North Carolina converting facility, and higher non-retail shipments in 2012. The increase in net selling prices was primarily due to a price increase for our retail tissue products implemented in the fourth quarter of 2011 and the first quarter of 2012, partially offset by lower non-retail pricing.

Operating income, which more than doubled during 2012 with an increase of $50.5 million, outpaced the growth of net sales due to lower purchased pulp and energy costs, as well as lower overall transportation and packaging costs primarily attributable to net cost saving synergies from the integration of Cellu Tissue. These improvements were partially offset by increased staffing, training and startup costs associated with our North Carolina paper making and converting facilities, higher incentive compensation expense, increased commission expense and a loss on the sale of legacy Cellu Tissue foam manufacturing assets.

Pulp and Paperboard

	Years Ended December 31,
(Dollars in thousands - except per ton amounts)	2012			2011
Net sales	$	739,748		$	835,840
Operating income	103,910			92,827
Percent of net sales	14.0		%	11.1		%
Paperboard shipments (short tons)	760,919			743,845
Paperboard sales price (per short ton)	$	956		$	976

Net sales for our Pulp and Paperboard segment were down $96.1 million, or 11.5%, during 2012 compared to 2011. The decrease was primarily attributable to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $80.3 million of the segment's net sales in 2011. Paperboard net sales increased slightly in 2012 due to a 2.3% increase in shipments that was partially offset by a 2.0% decrease in net selling prices resulting primarily from market pressure. The higher overall paperboard net sales in 2012 were more than offset by a decrease in net sales of external pulp, which was largely the result of increased internal usage by our Consumer Products segment of pulp that we produced.

Operating income in 2012 increased by 11.9% compared to 2011, primarily due to lower costs of energy and purchased pulp, as well as benefits from the sale of our Lewiston, Idaho sawmill. These favorable comparisons were partially offset by higher chemical, wage and benefit and transportation costs compared to 2011.

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EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION (EBITDA) AND ADJUSTED EBITDA

We use earnings before interest (including debt retirement costs), tax, depreciation and amortization, or EBITDA, and EBITDA adjusted for certain items, or Adjusted EBITDA, as supplemental performance measures that are not required by, or presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered as alternatives to net earnings, operating income or any other performance measure derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity or profitability. In addition, our calculation of EBITDA and Adjusted EBITDA may or may not be comparable to similarly titled measures of other companies.

EBITDA and Adjusted EBITDA have important limitations as analytical tools, and should not be considered in isolation, or as a substitute for any of our results as reported under GAAP. Some of these limitations are:

▪ EBITDA and Adjusted EBITDA do not reflect our cash expenditures for capital assets;

▪ EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital requirements;

▪ EBITDA and Adjusted EBITDA do not include cash pension payments;

▪ EBITDA and Adjusted EBITDA exclude certain tax payments that may represent a reduction in cash available to us;

▪ EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;

▪ although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and

▪ other companies, including other companies in our industry, may calculate these measures differently than we do, limiting their usefulness as a comparative measure.

We present EBITDA, Adjusted EBITDA and Adjusted income tax provisions because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use EBITDA and Adjusted EBITDA: (i) as factors in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of our business strategies and (iii) because our credit agreement and the indentures governing the 2010 Notes and 2013 Notes use measures similar to EBITDA to measure our compliance with certain covenants.

The following table provides our EBITDA and Adjusted EBITDA for the periods presented, as well as a reconciliation to net earnings:

	Years Ended December 31,
(In thousands)	2013			2012		2011
Net earnings	$	106,955		$	64,131	$	39,674
Interest expense, net 1	61,094			33,796		44,809
Income tax (benefit) provision	(68,721		)	47,460		31,246
Depreciation and amortization expense	90,272			79,333		76,933
EBITDA	$	189,600		$	224,720	$	192,662
Directors' equity-based compensation expense	4,084			1,369		1,476
Costs associated with Thomaston facility closure	5,977			—		—
Expense associated with Metso litigation	—			2,019		—
Loss on sale of foam assets	—			1,014		—
Lewiston, Idaho sawmill sale related adjustments2	—			—		2,883
Adjusted EBITDA	$	199,661		$	229,122	$	197,021

¹  Interest expense, net for the year ended December 31, 2013 includes debt retirement costs of $17.1 million.

2 The total impact of the sawmill sale and related adjustments on the Pulp and Paperboard segment was $15.4 million of expense. The net impact to the company was $2.9 million of net expense in 2011 primarily due to offsetting LIFO inventory liquidation and other adjustments recorded at the corporate level.  

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LIQUIDITY AND CAPITAL RESOURCES

The following table presents information regarding our cash flows for the years ended December 31, 2013, 2012 and 2011.

Cash Flows Summary

	Years Ended December 31,
(In thousands)	2013			2012			2011
Net cash flows from operating activities	$	136,357		$	198,693		$	68,395
Net cash flows from investing activities	(140,593		)	(177,004		)	(50,149		)
Net cash flows from financing activities	15,332			(17,549		)	(29,096		)

Operating Activities—Net cash flows from operating activities for 2013 decreased $62.3 million compared to 2012 due primarily to $15.0 million of cash used in working capital during the year, compared to $61.3 million of cash flows generated from working capital in 2012. The decrease in working capital was primarily attributable to a build-up in inventory to support our TAD tissue program, partially offset by higher accounts payable and accrued liabilities and increased accrued interest due to the timing of interest payments on our 2013 Notes. In addition, operating cash flows decreased due to lower net earnings, after adjusting for noncash related items. Included in our noncash adjustments to net earnings was a $75.3 million reduction of tax reserves largely related to our decision to release certain tax reserves based on the Internal Revenue Service's ruling on the taxability of the AFMTC. These decreases were partially offset by a $21.2 million favorable change in cash flows from taxes receivable, an absence of excess tax benefits used in 2013 compared to $15.8 million for 2012, which was a result of performance shares for the 2011-2013 performance period not being paid or issued because the requisite market condition performance measure was not met, and a $5.6 million decrease in contributions to our qualified pension plans in 2013 compared to 2012.

For 2012, net cash flows from operating activities significantly increased compared to 2011 due primarily to cash generated from working capital, compared to cash used for working capital in 2011, as well as higher earnings, after adjusting for noncash items. These increases were partially offset by a $15.8 million excess tax benefit from equity-based compensation arrangements in 2012, a $10.8 million increase in taxes receivable in 2012 compared to a slight decrease in 2011, and an $8.1 million increase in contributions to our qualified pension plans in 2012 compared to 2011.

Investing Activities—Net cash flows from investing activities decreased $36.4 million in 2013, compared to 2012. The decrease in cash used for investing activities was largely due to a $113.2 million decrease in capital spending for plant and equipment in 2013 compared to 2012. The lower capital spending was due to the substantial completion in 2012 of our North Carolina TAD tissue facility associated with our TAD project. The decrease in cash used for investing activities was partially offset by $50.0 million of cash converted into short-term investments in 2013, compared to $35.0 million provided by the conversion of short-term investments into cash during 2012.

Net cash flows from investing activities increased $126.9 million in 2012, compared to 2011. The increase was largely due to increased capital spending for plant and equipment in 2012, primarily associated with our TAD project, as well as a $36.1 million reduction in the amount of cash provided from the conversion of short-term investments into cash in 2012 compared to 2011.

Financing Activities—Net cash flows from financing activities were $15.3 million in 2013, compared to $17.5 million of cash flows used in financing activities in 2012. Cash flows from financing activities during 2013 were the result of the issuance of the 2013 Notes, partially offset by the retirement of the 2009 Notes and $100.0 million associated with repurchases of our outstanding common stock pursuant to our $100.0 million stock repurchase program, which was completed in October 2013.

Net cash flows from financing activities was $17.5 million in 2012, compared with $29.1 million in 2011. Cash used for financing activities in 2012 consisted of payments totaling $13.2 million for minimum tax withholdings associated with settlement and distribution of equity-based awards and $18.7 million for treasury stock purchases, partially offset by an excess tax benefit of $15.8 million associated with the equity-based awards settled and distributed in 2012.

Capital Resources

Due to the competitive and cyclical nature of the markets in which we operate, as well as an uncertain economic environment, there is uncertainty regarding the amount of cash flows we will generate during the next twelve months. However, we believe that our cash flows from operations, cash on hand, short-term investments and available borrowing capacity under our credit facility will be adequate to fund debt service requirements and provide cash required to support our ongoing operations, capital expenditures, and working capital needs for the next twelve months.

We may choose to refinance all or a portion of our indebtedness on or before maturity. We cannot be certain that we will be able to refinance any of our indebtedness on commercially reasonable terms or at all. As of December 31, 2013, our short-term investments were not restricted and were largely invested in demand deposits.

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At December 31, 2013, our financial position included debt of $650.0 million, compared to the balance of $523.9 million at December 31, 2012. Stockholders’ equity at December 31, 2013 was $605.1 million, compared to the December 31, 2012 balance of $540.9 million. Our total debt to total capitalization, excluding accumulated other comprehensive loss, was 49.5% at December 31, 2013, compared to 44.4% at December 31, 2012.

In 2013, we issued the 2013 Notes, of which we received net proceeds of approximately $271 million, after deducting discounts and estimated offering expenses. We used approximately $166 million of the net proceeds to redeem all of our outstanding 2009 Notes, and used approximately $100 million of the remaining net proceeds to purchase shares of the company's common stock pursuant to our $100.0 million stock repurchase program authorized in January 2013.

Debt Arrangements

2010 Notes

Our 2010 Notes mature on November 1, 2018, have an interest rate of 7.125% and were issued at their face value. The issuance of these notes generated net proceeds of $367.5 million after deducting offering expenses. The net proceeds from the issuance of the 2010 Notes were used to finance in part our acquisition of Cellu Tissue, to refinance certain existing indebtedness of Cellu Tissue, and to pay fees and expenses incurred as part of the 2010 Note offering, acquisition of Cellu Tissue and related transactions.

The 2010 Notes are guaranteed by certain of our existing and future direct and indirect domestic subsidiaries. The 2010 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2010 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2010 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

We have the option to redeem all or a portion of the 2010 Notes at any time before November 1, 2014 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after November 1, 2014, we may redeem all or a portion of the 2010 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2010 Notes upon the sale of certain assets and upon a change of control.

Our 2014 expected debt service obligation related to the 2010 Notes, consisting of cash payments for interest, is $26.7 million.

Redemption of $150 million senior notes due 2016 and issuance of $275 million senior notes due 2023

In June 2009, we issued senior unsecured notes, which we refer to as the 2009 Notes, in the aggregate principal amount of $150 million. The 2009 Notes, which were due on June 15, 2016 and had an interest rate of 10.625%, were issued at a price equal to 98.792% of their face value.

On February 22, 2013, we exercised our option to redeem all of the 2009 Notes at a redemption price equal to approximately $166 million, which consisted of 100% of the principal amount, plus an approximate $13 million “make whole” premium and accrued and unpaid interest of approximately $3 million. Proceeds to fund the redemption of our 2009 Notes were made available through the sale of $275 million aggregate principal amount senior notes on January 23, 2013, which we refer to as the 2013 Notes. The 2013 Notes mature on February 1, 2023, have an interest rate of 4.5% and were issued at their face value.

The 2013 Notes are guaranteed by our existing and future direct and indirect domestic subsidiaries, are equal in right of payment with all other existing and future unsecured senior indebtedness, and are senior in right of payment to any future subordinated indebtedness. The 2013 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2013 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

Prior to February 1, 2016, we may redeem up to 35% of the 2013 Notes at a redemption price equal to 104.5% of the principal amount plus accrued and unpaid interest with the proceeds from one or more qualified equity offerings. We have the option to redeem all or a portion of the 2013 Notes at any time before February 1, 2018 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after February 1, 2018 we may redeem all or a portion of the 2013 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2013 Notes upon the sale of certain assets and upon a change of control.

Our 2014 expected debt service obligation related to the 2013 Notes, consisting of cash payments for interest, is $12.4 million.

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Revolving Credit Facility

In November 2008, we entered into a $125 million senior secured revolving credit facility with certain financial institutions. The amount available to us under the revolving credit facility is based on the lesser of 85% of our eligible accounts receivable plus approximately 65% of our eligible inventory, or $125 million. The revolving credit facility has been subsequently amended and expires on September 30, 2016.

As of December 31, 2013, there were no borrowings outstanding under the credit facility, but approximately $6.6 million of the credit facility was being used to support outstanding standby letters of credit. Loans under the credit facility bear interest (i) for LIBOR loans, LIBOR plus between 1.75% and 2.25% and (ii) for base rate loans, a per annum rate equal to the greater of (a) the prime rate for such day; (b) the federal funds effective rate for such day, plus 0.50%; or (c) LIBOR for a 30-day interest period as determined on such day, plus between 1.25% and 1.75%. The percentage margin on all loans is based on our fixed charge coverage ratio for the most recent four quarters. As of December 31, 2013, we would have been permitted to draw approximately $118.4 million under the credit facility at LIBOR plus 1.75%, or base rate plus 1.25%.

A minimum fixed charge coverage ratio is the only financial covenant requirement under our credit facility and is triggered when there are any commitments or obligations outstanding and availability falls below 12.5% or an event of default exists, at which time the minimum fixed charge coverage ratio must be at least 1.0-to-1.0. As of December 31, 2013, the fixed charge coverage ratio for the most recent four quarters was 2.5-to-1.0.

Our obligations under the revolving credit facility are secured by certain of our accounts receivable, inventory and cash. The terms of the credit facility contain various provisions that limit our discretion in the operations of our business by restricting our ability to, among other things, pay dividends; redeem or repurchase capital stock; create, incur or guarantee certain debt; incur liens on certain properties; make capital expenditures; enter into certain affiliate transactions; enter into certain hedging arrangements; and consolidate with or merge with another entity. The revolving credit facility contains usual and customary affirmative and negative covenants and usual and customary events of default.

CONTRACTUAL OBLIGATIONS

The following table summarizes our contractual obligations as of December 31, 2013. Portions of the amounts shown are reflected in our financial statements and accompanying notes, as required by GAAP. See the footnotes following the table for information regarding the amounts presented and for references to relevant financial statement notes that include a detailed discussion of the item.

	Payments Due by Period
(In thousands)	Total		Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
Long-term debt1	$	650,000	$	—	$	—	$	375,000	$	275,000
Interest on long-term debt1	251,158		39,094		78,188		78,188		55,688
Capital leases2	47,136		2,375		4,886		5,073		34,802
Operating leases2	65,258		17,335		22,749		14,696		10,478
Purchase obligations3	433,962		369,309		61,667		2,986		—
Other obligations4,5	251,904		116,386		39,448		23,969		72,101
Total	$	1,699,418	$	544,499	$	206,938	$	499,912	$	448,069

¹ Included above are the principal and interest payments that were due on our 2010 and 2013 Notes, which were outstanding as of December 31, 2013. For more information regarding specific terms of our long-term debt, see the discussion under the heading “Debt Arrangements,” and Note 9, “Debt,” in the notes to the consolidated financial statements.

² These amounts represent our minimum capital lease payments, including amounts representing interest, and our minimum operating lease payments. See Note 16, “Commitments and Contingencies,” in the notes to the consolidated financial statements.

³ Purchase obligations consist primarily of contracts for the purchase of raw materials (primarily pulp) from third parties, trade accounts payable as of December 31, 2013, and contracts with natural gas and electricity providers.

⁴ Included in other obligations are accrued liabilities and accounts payable (other than trade accounts payable) as of December 31, 2013, liabilities associated with supplemental pension and deferred compensation arrangements, and estimated payments on qualified pension and postretirement employee benefit plans. Since pension contributions are determined by factors that are subject to change each year, estimated payments on qualified pension plans included above are only for years 1-5 and are based on current estimates of minimum required contributions.

⁵ Total excludes $2.7 million of unrecognized tax benefits due to the uncertainty of timing of payment. See Note 7, “Income Taxes,” in the notes to the consolidated financial statements.

35

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements that have had, or are reasonably likely to have, a material current or future effect on our financial conditions or consolidated financial statements.

ENVIRONMENTAL

Our operating facilities are subject to rigorous federal and state environmental regulation governing air emissions, wastewater discharges, and solid and hazardous waste management. Our goal is continuous compliance with all environmental regulations and we regularly monitor our activities to ensure compliance with all pertinent rules and requirements. Compliance with environmental regulations is a significant factor in our business and requires periodic capital expenditures as well as additional operating costs as rules change.

The new federal standard for hazardous air pollutants from boiler and process heaters were finalized by the U.S. Environmental Protection Agency, or EPA, and became effective in early 2013. We anticipate that our sites at Lewiston, Idaho, Menominee, Michigan, and Cypress Bend, Arkansas, will be affected by this new rule. We expect any capital projects instituted by us in response to this rule will be executed between 2014 and 2017. Preliminary total cost estimates for all required projects are expected to be between $5 and $7 million, with $2 million of that expected amount to be incurred in 2015 and the remainder split between 2016 and 2017. We expect no technical issues with meeting the new rule.

Concern over climate change, including the impact of global warming, may lead to future regulations. We believe there are no U.S. or Canadian currently proposed rules that would have a material impact on our operations.

In 2012 we received notification of alleged Clean Air Act violations at our Lewiston facility. We have entered into a tolling agreement and are negotiating with the U.S. Department of Justice and EPA to resolve these alleged violations. We expect these negotiations to continue through 2014.

Our facilities are currently in substantial compliance with applicable environmental laws and regulations. We cannot be certain, however, that situations that may give rise to material environmental liabilities will not be discovered or that the enactment of new environmental laws or regulations or changes in existing laws or regulations will not require significant expenditures by us.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with GAAP requires our management to select and apply accounting policies that best provide the framework to report the results of operations and financial position. The selection and application of those policies requires management to make difficult, subjective and complex judgments concerning reported amounts of revenue and expenses during the reporting period and the reported amounts of assets and liabilities at the date of the financial statements. As a result, it is possible that materially different amounts would be reported under different conditions or using different assumptions.

See Note 3, “Recently Adopted and Prospective Accounting Standards” to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for additional information regarding recently adopted and new accounting pronouncements.

Goodwill and intangibles. Our acquisitions are accounted for using the purchase method of accounting as prescribed by applicable accounting guidance. In accordance with the accounting guidance, we revalued the assets and liabilities acquired at their respective fair values on the acquisition date. Changes in assumptions and estimates during the allocation period affecting the acquisition date fair value of acquired assets and liabilities would result in changes to the recorded values, resulting in an offsetting change to the goodwill balance associated with the business acquired. Significant changes in assumptions and estimates subsequent to completing the allocation of purchase price to the assets and liabilities acquired, as well as differences in actual results versus estimates, could have a material impact on our earnings.

Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. As a result of our Cellu Tissue acquisition, we recorded $229.5 million of goodwill on our Consolidated Balance Sheet as of December 31, 2010, which has not been subsequently adjusted through December 31, 2013. Goodwill is not amortized but tested for impairment annually and at any time when events suggest impairment may have occurred. When required, our goodwill impairment test will be performed by comparing the fair value of the Consumer Products reporting unit to its carrying value. We incorporate assumptions involving future growth rates, discount rates and tax rates in projecting the future cash flows. In the event the carrying value exceeds the fair value of the reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeds its implied fair value.

36

Long-lived assets. A significant portion of our total assets are invested in our manufacturing facilities. Also, the cyclical patterns of our businesses cause cash flows to fluctuate by varying degrees from period to period. As a result, long-lived assets are a material component of our financial position with the potential for material change in valuation if assets are determined to be impaired. Accounting guidance requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable, as measured by its undiscounted estimated future cash flows.

We use our operational budgets to estimate future cash flows. Budgets are inherently uncertain estimates of future performance due to the fact that all inputs, including net sales, costs and capital spending, are subject to frequent change for many different reasons. Because of the number of variables involved, the interrelationship between the variables and the long-term nature of the impairment measurement, sensitivity analysis of individual variables is not practical. Budget estimates are adjusted periodically to reflect changing business conditions, and operations are reviewed, as appropriate, for impairment using the most current data available.

We believe we have adequate support for the carrying value of all of our long-lived assets based on anticipated cash flows that will result from our estimates of future demand, pricing, and production costs, assuming certain levels of capital expenditures.

Pension and postretirement employee benefits. The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Two critical assumptions are the discount rate applied to pension plan obligations and the rate of return on plan assets. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, critical assumptions in determining OPEB expense are the discount rate applied to benefit obligations and the assumed health care cost trend rates used in the calculation of benefit obligations.

Note 12, "Savings, Pension and Other Postretirement Employee Benefit Plans," to our consolidated financial statements includes information for the three years ended December 31, 2013, 2012 and 2011, on the components of pension and OPEB expense and the underlying actuarial assumptions used to calculate periodic expense, as well as the funded status for our pension and OPEB plans as of December 31, 2013 and 2012.

The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management’s expectations. At December 31, 2013, we calculated obligations using a 5.20% discount rate. The discount rates used at December 31, 2012 and 2011 were 4.15% and 4.90%, respectively. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes 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 long-term rates of return used for the years ended December 31, 2013, 2012 and 2011 were 7.50%, 8.00% and 8.00%, respectively.

Total periodic pension plan expense in 2013 was $12.7 million. An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. As an indication of the sensitivity that pension expense has to the discount rate assumption, a 25 basis point change in the discount rate would affect annual plan expense by approximately $0.5 million. A 25 basis point change in the assumption for expected return on plan assets would affect annual plan expense by approximately $0.7 million. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets.

Our company-sponsored pension plans were underfunded by a net $6.8 million at December 31, 2013 and $78.7 million at December 31, 2012. As a result of being underfunded, we are required to make contributions to our qualified pension plans. In 2013, we contributed $15.1 million to these pension plans. We also contributed $0.3 million to our non-qualified pension plan in 2013. Our cash contributions in 2014 are estimated to be approximately $15 million.

For our OPEB plans, expense for 2013 was $4.8 million. We do not anticipate funding our OPEB plans in 2013 except to pay benefit costs as incurred during the year by plan participants. The discount rate used to calculate OPEB obligations, which was determined using the same methodology we used for our pension plans, was 5.05%, 4.05% and 4.95% at December 31, 2013, 2012 and 2011, respectively. The assumed health care cost trend rate used to calculate OPEB obligations and expense was 7.7% in 2013, grading to a range of 4.30% to 4.64% over approximately 70 years.

As an indication of the sensitivity that OPEB expense has to the discount rate assumption, a 25 basis point change in the discount rate would affect plan expense by approximately $0.1 million. A 1% change in the assumption for health care cost trend rates would have affected 2013 plan expense by approximately $0.4 million to $0.5 million and the total postretirement employee obligation by approximately $8.0 million to $9.3 million. The actual rates of health care cost increases may vary significantly from the assumption used because of unanticipated changes in health care costs.

37

Periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2013 and 2012, long-term assets are recorded for overfunded plans and liabilities are recorded for underfunded plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability.

Effective December 15, 2010, the salaried pension plan was closed to new entrants and after December 31, 2011, it was frozen and ceased accruing further benefits.

Income taxes. The conclusion that deferred tax assets are realizable is subject to certain assessments, projections and judgments made by management. In assessing whether deferred tax assets are realizable, the standard we use is whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. We consider the scheduled reversal of deferred tax liabilities (including the impact of available carry forward periods), projected taxable income, and amounts of taxable income we would have generated historically if we had been a stand-alone company in making this assessment. In order to fully realize the deferred tax asset, we will need to generate future taxable income before the expiration of the deferred tax assets governed by the tax code.

Based on existing deferred tax liabilities and projected taxable income over the periods for which the deferred tax assets are deductible, we believe that it is more likely than not that we will realize the benefits of these future deductible differences, excluding items for which we have already recorded a valuation allowance. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

We have tax jurisdictions located in many areas of the United States and Canada and are subject to audit in these jurisdictions. Tax audits by their nature are often complex and can require several years to resolve. In the preparation of our consolidated financial statements, management exercises judgment in estimating the potential exposure to unresolved tax matters and applies the guidance pursuant to uncertain tax positions which employs a more likely than not criteria approach for recording tax benefits related to uncertain tax positions. While actual results could vary, in management's judgment, we have adequate tax accruals with respect to the ultimate outcome of such unresolved tax matters.

38

ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risks

Interest Rate Risk

Our exposure to market risks on financial instruments includes interest rate risk on our secured revolving credit facility. As of December 31, 2013, there were no borrowings outstanding under our revolving credit facility. The interest rates applied to borrowings under the credit facility are adjusted often and therefore react quickly to any movement in the general trend of market interest rates. For example, a one percentage point increase or decrease in interest rates, based on assumed outstanding credit facility borrowings of $10.0 million, would have a $0.1 million annual effect on interest expense. We currently do not attempt to mitigate the effects of short-term interest rate fluctuations on our credit facility borrowings through the use of derivative financial instruments.

Commodity Risk

We are exposed to market risk for changes in natural gas commodity pricing, which we have, from time-to-time, partially mitigated through the use of firm price contracts for a portion of our natural gas requirements for our manufacturing facilities. As of December 31, 2013, we had firm-price contracts for natural gas covering approximately 55% of the expected average monthly requirements for the first quarter of 2014.

Foreign Currency Risk

We have minimal foreign currency exchange risk. Virtually all of our international sales are denominated in U.S. dollars.

Quantitative Information about Market Risks

	Expected Maturity Date
(Dollars in thousands)	2014			2015			2016			2017			2018			Thereafter			Total
Long-term debt:
Fixed rate	$	—		$	—		$	—		$	—		$	375,000		$	275,000		$	650,000
Average interest rate	—		%	—		%	—		%	—		%	7.125		%	4.500		%	6.014		%
Fair value at December 31, 2013																			$	651,313

39

ITEM 8.

Financial Statements and Supplementary Data

Index to Consolidated Financial Statements

	PAGE NUMBER
Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011	41
Consolidated Statements of Comprehensive Income for the years ended December 31, 2013, 2012 and 2011	42
Consolidated Balance Sheets at December 31, 2013 and 2012	43
Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011	44
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2013, 2012 and 2011	45
Notes to Consolidated Financial Statements	46-78
Reports of Independent Registered Public Accounting Firm	79-80
Financial Statement Schedules:
All schedules have been omitted because the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements, including the notes thereto.

40

CLEARWATER PAPER CORPORATION

Consolidated Statements of Operations

(Dollars in thousands – except per-share amounts)

	For The Years Ended December 31,
	2013			2012			2011
Net sales	$	1,889,830		$	1,874,304		$	1,927,973
Costs and expenses:
Cost of sales	(1,671,371		)	(1,607,872		)	(1,702,530		)
Selling, general and administrative expenses	(119,131		)	(121,045		)	(109,998		)
Total operating costs and expenses	(1,790,502		)	(1,728,917		)	(1,812,528		)
Income from operations	99,328			145,387			115,445
Interest expense, net	(44,036		)	(33,796		)	(44,809		)
Debt retirement costs	(17,058		)	—			—
Other, net	—			—			284
Earnings before income taxes	38,234			111,591			70,920
Income tax benefit (provision)	68,721			(47,460		)	(31,246		)
Net earnings	$	106,955		$	64,131		$	39,674
Net earnings per common share:
Basic	$	4.84		$	2.75		$	1.73
Diluted	4.80			2.72			1.66

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

41

CLEARWATER PAPER CORPORATION

Consolidated Statements of Comprehensive Income

(In thousands)

	For The Years Ended December 31,
	2013			2012			2011
Net earnings	$	106,955		$	64,131		$	39,674
Other comprehensive income (loss), net of tax:
Defined benefit pension and other postretirement employee benefits:
Net gain (loss) arising during the period, net of tax of $32,346, $(6,359), and $(15,830)	51,262			(9,780		)	(21,942		)
Curtailments, net of tax of $298, $188 and $1,163	471			289			1,613
Prior service (cost) credit arising during the period, net of tax of $(1,976), $2,079 and $ -	(3,130		)	3,199			—
Amortization of actuarial loss included in net periodic cost,   net of tax of $5,742, $4,761, and $3,513	9,098			7,324			4,869
Amortization of prior service credit included in net   periodic cost, net of tax of $(64), $(806), and $(252)	(101		)	(1,240		)	(350		)
Amortization of deferred taxes related to actuarial gain on other   postretirement employee benefit obligations	—			(220		)	(229		)
Foreign currency translation adjustment	—			—			(874		)
Other comprehensive income (loss), net of tax	57,600			(428		)	(16,913		)
Comprehensive income	$	164,555		$	63,703		$	22,761

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

42

CLEARWATER PAPER CORPORATION

Consolidated Balance Sheets

(Dollars in thousands – except share data)

	At December 31,
	2013			2012
ASSETS
Current assets:
Cash	$	23,675		$	12,579
Restricted cash	1,500			—
Short-term investments	70,000			20,000
Receivables, net	158,874			154,143
Taxes receivable	10,503			20,828
Inventories	267,788			231,466
Deferred tax assets	37,538			17,136
Prepaid expenses	5,523			12,314
Total current assets	575,401			468,466
Property, plant and equipment, net	884,698			877,377
Goodwill	229,533			229,533
Intangible assets, net	40,778			47,753
Pension assets	4,488			—
Other assets, net	9,927			10,327
TOTAL ASSETS	$	1,744,825		$	1,633,456
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	190,648		$	165,596
Current liability for pensions and other postretirement employee benefits	8,778			9,137
Total current liabilities	199,426			174,733
Long-term debt	650,000			523,933
Liability for pensions and other postretirement employee benefits	109,807			204,163
Other long-term obligations	52,942			50,910
Accrued taxes	2,658			78,699
Deferred tax liabilities	124,898			60,124
Stockholders’ equity:
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no   shares issued	—			—
Common stock, par value $0.0001 per share, 100,000,000 authorized   shares-24,007,581 and 23,840,683 shares issued	2			2
Additional paid-in capital	326,546			326,901
Retained earnings	466,639			359,684
Treasury stock, at cost, common shares–2,923,640 and 853,470 shares repurchased	(130,000		)	(30,000		)
Accumulated other comprehensive loss, net of tax	(58,093		)	(115,693		)
Total stockholders’ equity	605,094			540,894
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,744,825		$	1,633,456

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

43

CLEARWATER PAPER CORPORATION

Consolidated Statements of Cash Flows

(In thousands)

	For The Years Ended December 31,
	2013			2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	106,955		$	64,131		$	39,674
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	90,272			79,333			76,933
Non-cash adjustments to unrecognized taxes	(75,308		)	3,275			—
Deferred tax provision	5,629			12,870			14,777
Equity-based compensation expense	10,960			9,703			8,134
Employee benefit plans	10,131			9,366			16,897
Deferred issuance costs and discounts on long-term debt	4,964			2,010			215
Disposal of plant and equipment, net	1,493			2,003			998
Changes in working capital, net	(15,022		)	61,281			(86,012		)
Change in taxes receivable, net	10,325			(10,828		)	354
Excess tax benefits from equity-based payment arrangements	—			(15,837		)	(885		)
Change in non-current accrued taxes, net	569			960			2,453
Funding of qualified pension plans	(15,050		)	(20,627		)	(12,498		)
Change in restricted cash	(32		)	769			4,160
Other, net	471			284			3,195
Net cash flows from operating activities	136,357			198,693			68,395
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	(50,000		)	35,001			71,094
Additions to plant and equipment	(90,593		)	(203,776		)	(134,069		)
Cash paid for acquisitions, net of cash acquired	—			(9,264		)	—
Proceeds from sale of assets	—			1,035			12,826
Net cash flows from investing activities	(140,593		)	(177,004		)	(50,149		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	275,000			—			—
Repayment of long-term debt	(150,000		)	—			(15,595		)
Purchase of treasury stock	(100,000		)	(18,650		)	(11,350		)
Payments for long-term debt issuance costs	(4,837		)	(2		)	(638		)
Payment of tax withholdings on equity-based payment arrangements	(4,831		)	(13,234		)	(2,400		)
Excess tax benefits from equity-based payment arrangements	—			15,837			885
Other, net	—			(1,500		)	2
Net cash flows from financing activities	15,332			(17,549		)	(29,096		)
Effect of exchange rate changes	—			—			361
Increase (decrease) in cash	11,096			4,140			(10,489		)
Cash at beginning of period	12,579			8,439			18,928
Cash at end of period	$	23,675		$	12,579		$	8,439
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	$	36,147		$	30,086		$	43,595
Cash paid for income taxes	3,256			18,719			43,085
Cash received from income tax refunds	1,577			2,220			33,808
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES:
Changes in accrued plant and equipment	$	(4,085	)	$	3,339		$	3,674
Property acquired under capital lease	—			—			12,687

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

44

CLEARWATER PAPER CORPORATION

Consolidated Statements of Stockholders’ Equity

(In thousands)

	Common Stock			Additional Paid-In Capital			Retained Earnings		Treasury Stock					Accumulated Other Comprehensive (Loss) Income			Total Stockholders' Equity
	Shares	Amount							Shares		Amount
Balance, December 31, 2010	22,958	$	2	$	310,820		$	255,879	—		$	—		$	(98,352	)	$	468,349
Net earnings	—	—		—			39,674		—		—			—			39,674
Performance share and   restricted stock unit   awards	144	—		5,144			—		—		—			—			5,144
Pension and OPEB, net   of tax of $(11,406)	—	—		—			—		—		—			(15,810		)	(15,810		)
Amortization of   deferred taxes related   to actuarial gain on   other postretirement   employee benefit   obligations	—	—		—			—		—		—			(229		)	(229		)
Foreign currency   translation adjustment	—	—		—			—		—		—			(874		)	(874		)
Purchase of treasury   stock	—	—		—			—		(333	)	(11,350		)	—			(11,350		)
Balance, December 31, 2011	23,102	$	2	$	315,964		$	295,553	(333	)	$	(11,350	)	$	(115,265	)	$	484,904
Net earnings	—	—		—			64,131		—		—			—			64,131
Performance share and   restricted stock unit   awards	739	—		10,937			—		—		—			—			10,937
Pension and OPEB, net   of tax of $(137)	—	—		—			—		—		—			(208		)	(208		)
Amortization of   deferred taxes related   to actuarial gain on   other postretirement   employee benefit   obligations	—	—		—			—		—		—			(220		)	(220		)
Purchase of treasury   stock	—	$	—	$	—		$	—	(520	)	$	(18,650	)	$	—		$	(18,650	)
Balance, December 31, 2012	23,841	$	2	$	326,901		$	359,684	(853	)	$	(30,000	)	$	(115,693	)	$	540,894
Net earnings	—	—		—			106,955		—		—			—			106,955
Performance share and   restricted stock unit   awards	167	—		(355		)	—		—		—			—			(355		)
Pension and OPEB, net   of tax of $36,346	—	—		—			—		—		—			57,600			57,600
Purchase of treasury   stock	—	—		—			—		(2,071	)	(100,000		)	—			(100,000		)
Balance, December 31, 2013	24,008	2		326,546			466,639		(2,924	)	(130,000		)	(58,093		)	605,094

All common stock share numbers have been adjusted for the two-for-one stock split effected in the form of a stock dividend distributed on August 26, 2011.

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

45

CLEARWATER PAPER CORPORATION

Notes to Consolidated Financial Statements

NOTE 1 Nature of Operations and Basis of Presentation

Clearwater Paper Corporation is a leading North American producer of private label tissue and paperboard products. We manufacture quality consumer tissue, away-from-home tissue, parent rolls (non-converted tissue product), machine-glazed tissue, bleached paperboard and pulp at 14 manufacturing locations in the U.S. and Canada. Our private label consumer tissue products - facial and bath tissue, paper towels and napkins - are used primarily at-home and are principally sold to major retailers and wholesale distributors, which include grocery, drug, mass-merchant and discount stores. Our paperboard is sold primarily in the high-end segment of the packaging industry, which demands high-quality construction and print surfaces for graphics. Our products are made primarily from wood fiber pulp.

Unless the context otherwise requires or unless otherwise indicated, references in this report to “Clearwater Paper Corporation,” “we,” “our,” “the company” and “us” refer to Clearwater Paper Corporation and its subsidiaries.

On November 28, 2011, we sold our Lewiston, Idaho, sawmill to Idaho Forest Group of Coeur d’Alene, Idaho. The transaction included the sale of our sawmill, planer mill, dry kilns and related assets along with log and finished goods inventories and timber under contract, in the aggregate amount of approximately $30 million. This sawmill was our only wood products facility.

On December 28, 2012, we acquired the assets of a wood chipping facility located in Clarkston, Washington, near our Lewiston, Idaho facility, in an effort to bolster our wood fiber position and obtain short-term and long-term cost savings. The total consideration associated with the acquisition was approximately $11 million, which includes contingent consideration over an 18 month period of up to $1.5 million in cash to be paid by the company, based on certain performance and indemnity guarantees. At December 31, 2013, this $1.5 million is considered restricted cash. We allocated the purchase price to the tangible and amortizable intangible assets acquired based on their estimated fair values at the date of acquisition, resulting in the recognition of approximately $6 million in equipment, $4 million in intangible assets for customer relationships and a $1 million intangible asset for a non-compete agreement with the former owners. No goodwill was recorded.

On March 6, 2013, we announced the planned permanent closure of our Thomaston, Georgia converting and distribution facility. The shutdown occurred gradually as converting lines were relocated and installed at our other facilities, with all operations at Thomaston having ceased as of the end of 2013. We incurred $6.0 million of costs associated with the closure in 2013.

On February 17, 2004, in an event subsequent to the close of our 2013 fiscal year, we announced the permanent and immediate closure of our Long Island, New York, tissue converting and distribution facility.

These consolidated financial statements include the financial condition and results of operations of Clearwater Paper Corporation and its wholly-owned subsidiaries. All intercompany transactions and balances between operations within the company have been eliminated.

NOTE 2 Summary of Significant Accounting Policies

SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., which we refer to in this report as 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 net sales and expenses during the reporting period. Significant areas requiring the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, allocation of purchase price and fair value estimates for business combinations, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions.

SHORT-TERM INVESTMENTS AND RESTRICTED CASH

Our short-term investments, which are classified as available for sale, are invested primarily in demand deposits, which have very short maturity periods, and therefore earn an interest rate commensurate with low-risk instruments. Due to our investments' short-term maturity periods there is no significant difference between the investments' cost and fair value. We do not attempt to hedge our exposure to interest rate risk for our short-term investments. Our restricted cash in which the underlying instrument has a term of greater than twelve months from the balance sheet date is classified as non-current and is included in “Other assets” on our Consolidated Balance Sheet. As of December 31, 2013, substantially all restricted cash balances were classified as current and

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included in "Restricted cash" on our Consolidated Balance Sheet, compared to approximately $1.5 million of restricted cash classified as non-current and included in "Other assets, net" as of December 31, 2012.

TRADE ACCOUNTS RECEIVABLE

Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of December 31, 2013 and 2012, we had allowances for doubtful accounts of $1.9 million and $1.6 million, respectively. Bad debt expense, net, charged to selling, general and administrative expenses during 2013, 2012 and 2011 was $1.5 million, $0.2 million and $1.0 million, respectively. All other activity impacting the allowance for doubtful accounts was immaterial for all periods.

INVENTORIES

At December 31, 2013, our inventories are stated at the lower of market or current average cost using the average cost method. Prior to the November 2011 sale of our Lewiston, Idaho, sawmill, we used the last-in, first-out, or LIFO, method to determine cost for our logs, wood fiber and the majority of our lumber.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost, including assets acquired under capital lease obligations and any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Estimated useful lives generally range from 10 to 40 years for land improvements; 10 to 40 years for buildings and improvements; 5 to 25 years for machinery and equipment; and 2 to 15 years for office and other equipment. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new.

LONG-LIVED ASSETS

Our long-lived assets include property, plant and equipment and amortizable intangible assets. We review the carrying value of long-lived assets for impairment annually and when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment of long-lived assets exists when the carrying value is not considered to be recoverable through future undiscounted cash flows from operations and the carrying value of the asset or asset group exceeds the estimated fair value.

GOODWILL AND INTANGIBLE ASSETS

Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill and intangible assets resulted from our acquisition of Cellu Tissue Holdings, or Cellu Tissue, on December 27, 2010. Intangible assets also resulted from our December 2012 acquisition of a wood chipping facility. We used estimates in determining and assigning the fair value of goodwill and intangible assets, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows and fair values of the related operations. Our intangible assets have definite lives and are amortized over their estimated useful lives. We assess our intangibles for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

As a result of our acquisition of Cellu Tissue in December 2010, we recorded $229.5 million of goodwill as included on our Consolidated Balance Sheets as of December 31, 2013 and 2012. All of the recorded goodwill was assigned to our Consumer Products segment and reporting unit. Goodwill is not amortized but is tested for impairment annually as of November 1, as well as any time when events suggest impairment may have occurred. In the event the carrying value of our consumer products reporting unit, including goodwill, exceeds the estimated fair value of the reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeds its implied fair value.

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Two critical assumptions are the discount rate applied to pension plan obligations and the rate of return on plan assets. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, critical assumptions in determining OPEB expense are the discount rate applied to benefit obligations and the assumed health care cost trend rates used in the calculation of benefit obligations. We also participate in multiemployer defined benefit pension plans. We make contributions to these multiemployer plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees.

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The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management's expectations. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes 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.

An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets.

The estimated net loss and prior service cost (credit) for the defined benefit pension and OPEB plans is amortized from accumulated other comprehensive loss into net periodic cost (benefit) in accordance with current accounting guidance.

Periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2013 and 2012, long-term assets are recorded for overfunded single-employer plans and liabilities are recorded for underfunded single-employer plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded single-employer plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability.

INCOME TAXES

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate.

REVENUE RECOGNITION

We recognize revenue 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 for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer.

In 2013 we had one customer in the Consumer Products segment, the Kroger Company, that accounted for approximately $204 million, or 10.8%, of our total company net sales. In 2012 and 2011, we did not have any single customer that accounted for 10% or more of our total net sales.

We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales in the same period as the related revenues are recognized. Provisions for these items are determined based on historical experience or specific customer arrangements.

Revenue is recognized net of any sales taxes collected. Sales taxes, when collected, are recorded as a current liability and remitted to the appropriate governmental entities.

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ENVIRONMENTAL

As part of our corporate policy, we have an ongoing process to monitor, report on and comply with environmental requirements. Based on this ongoing process, accruals for environmental liabilities that are not within the scope of specific authoritative guidance related to accounting for asset retirement obligations or conditional asset retirement obligations are established in accordance with guidance related to accounting for contingencies. We estimate our environmental liabilities based on various assumptions and judgments, the specific nature of which varies in light of the particular facts and circumstances surrounding each environmental liability. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude and timing of required investigation, remediation and monitoring activities and the probable cost of these activities. Currently, we are not aware of any material environmental liabilities and have accrued for only specific environmental remediation costs that we have determined are probable and for which an amount can be reasonably estimated. Fees for professional services associated with environmental and legal issues are expensed as incurred.

STOCKHOLDERS’ EQUITY

On February 5, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

On January 17, 2013, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock, which was completed in 2013. The repurchases were authorized to be carried out by the utilization of a number of different methods, including but not limited to, open market purchases, accelerated buybacks and negotiated block purchases. On March 1, 2013, we entered into an accelerated stock buyback, or ASB, agreement with a major financial institution to repurchase an aggregate of $50.0 million of our outstanding common stock. In total, 1,039,513 shares of our outstanding common stock were delivered under the ASB agreement at an average repurchase price of $48.10 per share. In addition to the ASB agreement, we also made repurchases of 1,030,657 shares of our outstanding common stock on the open market at a total cost of $50.0 million, representing an an average price of $48.51 per share.

On July 28, 2011, we announced that our Board of Directors had authorized the repurchase of up to $30.0 million of our common stock. Under the stock repurchase program, we were authorized to repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. We completed this repurchase program in the fourth quarter of 2012. The total number of shares repurchased under this program was 853,470 at an aggregate cost of $30.0 million and an average price of $35.15 per share.

In addition, on July 28, 2011, we announced that our Board of Directors had declared a two-for-one stock split of our outstanding shares of common stock, which was effected in the form of a stock dividend distributed on August 26, 2011 to shareholders of record on August 12, 2011. On the August 26, 2011 distribution date, there were 11,373,460 shares of common stock outstanding. Immediately following the distribution date, there were 22,746,920 outstanding shares of common stock. All common share and per share amounts have been adjusted for the stock split effected in the form of a stock dividend.

DERIVATIVES

We had no activity during the years ended December 31, 2013, 2012 and 2011 that required hedge or derivative accounting treatment. However, to partially mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of December 31, 2013, these contracts covered approximately 55% of the expected average monthly requirements for the first quarter of 2014. For the years ended December 31, 2013, 2012 and 2011, approximately 16%, 29% and 2%, respectively, of our natural gas volumes were supplied through firm price contracts. These contracts qualify for treatment as “normal purchases or normal sales” under authoritative guidance and thus require no mark-to-market adjustment.

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NOTE 3 Recently Adopted and Prospective Accounting Standards

In February 2013, the Financial Accounting Standards Board issued Accounting Standard Update, or ASU, 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which expands the disclosure requirements for amounts reclassified out of accumulated other comprehensive income. This ASU requires an entity to present, either parenthetically on the face of the financial statements where net income is presented or in the notes to the financial statements, the effect of significant items reclassified in their entirety from accumulated other comprehensive income and identification of the respective line items effecting net income for instances when reclassification is required under GAAP. For items that are not required by GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures as required by GAAP. This ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements and is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We have adopted this ASU, which did not affect our Consolidated Financial Statements.

NOTE 4 Inventories

(In thousands)	2013		2012
Pulp, paperboard and tissue products	$	182,715	$	147,627
Materials and supplies	69,836		67,889
Logs, pulpwood, chips and sawdust	15,237		15,950
	$	267,788	$	231,466

During the three months ended March 31, 2012, the remaining lumber inventory from the sawmill was sold. The sale of this inventory, which was valued at costs prevailing in prior years under the LIFO method, had the effect of increasing earnings before income taxes in the period ended March 31, 2012 by an immaterial amount. The fluctuations of LIFO inventories increased earnings before income taxes by approximately $10.6 million in 2011.

NOTE 5 Property, Plant and Equipment

(In thousands)	2013			2012
Machinery and equipment	$	1,937,914		$	1,866,263
Buildings and improvements	304,971			299,642
Land improvements	54,277			52,929
Office and other equipment	11,951			10,946
Land	11,827			11,827
Construction in progress	40,204			37,160
	$	2,361,144		$	2,278,767
Less accumulated depreciation and amortization	(1,476,446		)	(1,401,390		)
	$	884,698		$	877,377

The December 31, 2013 and 2012 buildings and improvements and machinery and equipment combined balances each include $23.1 million associated with capital leases.

Depreciation expense, including amounts associated with capital leases, totaled $83.3 million, $74.6 million and $70.6 million in 2013, 2012 and 2011, respectively. We did not capitalize any interest during 2013. For 2012 and 2011, we capitalized $12.6 million and $3.7 million of interest expense, respectively, associated with our TAD tissue expansion project, which includes the construction of our new tissue manufacturing and converting facilities in Shelby, North Carolina, and upgrades to our tissue manufacturing facility in Las Vegas, Nevada.

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NOTE 6 Goodwill and Intangible Assets

The carrying amount of goodwill is reviewed at least annually for impairment as of November 1. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its estimated fair value exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. For the purpose of goodwill impairment testing we identify two reporting units, Consumer Products and Pulp and Paperboard, the same as our two reportable operating segments (see Note 17, "Segment Information"). All of the recorded goodwill is assigned to our Consumer Products reporting unit.

As of November 1, 2013 and 2012, we performed calculations of both a discounted cash flow and market-based valuation model for our Consumer Products reporting unit. The assumptions used in these models allowed us to evaluate the estimated fair value of our reporting unit. The determination of these assumptions required significant estimates on our part. Due to the inherent uncertainty involved in making such estimates, actual results could differ from those assumptions. However, we evaluated the merits of each significant assumption, both individually and in the aggregate, used to determine the estimated fair value of our reporting unit for reasonableness. Upon completion of this exercise, we concluded that the estimated fair value of the Consumer Products reporting unit exceeded its carrying amount. We determined that no further testing was necessary and did not record any impairment loss on our goodwill for the years ended December 31, 2013 and 2012.

Intangible asset amounts represent the acquisition date fair values of identifiable intangible assets acquired. The fair values of the intangible assets were determined by using the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflected a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. Definite-lived intangible assets are amortized over their useful lives, which range from 2.5 to 10 years. Authoritative guidance requires that the carrying amount of a long-lived asset with a definite life that is held-for-use be evaluated for recoverability whenever events or changes in circumstances indicate that the entity may be unable to recover the asset’s carrying amount. During 2013, we permanently closed our Thomaston converting and distribution facility. This closure did not require an assessment of recoverability on our assets as all converting lines were relocated and installed at our other facilities. There were no other such events or changes in circumstances that required us to assess whether our definite-lived intangible assets were impaired for the years ended December 31, 2013 and 2012. We do not have any indefinite-lived intangible assets recorded from acquisitions.

Intangible assets at the balance sheet dates are comprised of the following:

	December 31, 2013
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(17,234	)	$	36,723
Trade names and trademarks	10.0	5,300		(1,590		)	3,710
Non-compete agreements	2.5 - 5.0	1,674		(1,329		)	345
Total intangible assets		$	60,931	$	(20,153	)	$	40,778

	December 31, 2012
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(11,237	)	$	42,720
Trade names and trademarks	10.0	5,300		(1,060		)	4,240
Non-compete agreements	2.5 - 5.0	1,674		(881		)	793
Total intangible assets		$	60,931	$	(13,178	)	$	47,753

As of December 31, 2013, estimated future amortization expense related to intangible assets is as follows (in thousands):

Years ending December 31,	Amount
2014	$	6,663
2015	6,608
2016	6,587
2017	6,587
2018	6,524
Thereafter	7,809
Total	$	40,778

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NOTE 7 Income Taxes

Earnings (loss) before income taxes is comprised of the following amounts in each tax jurisdiction:

(In thousands)	2013			2012		2011
United States	$	38,900		$	111,278	$	72,156
Canada	(666		)	313		(1,236		)
Earnings before income taxes	$	38,234		$	111,591	$	70,920

The income tax (benefit) provision is comprised of the following:

(In thousands)	2013			2012			2011
Current
Federal	$	(75,119	)	$	27,724		$	9,619
State	506			6,637			6,880
Foreign	263			229			(30		)
	(74,350		)	34,590			16,469
Deferred
Federal	10,177			16,243			12,865
State	(4,423		)	(3,180		)	1,931
Foreign	(125		)	(193		)	(19		)
	5,629			12,870			14,777
Income tax (benefit) provision	$	(68,721	)	$	47,460		$	31,246

The income tax benefit or provisions differ from the amounts computed by applying the statutory federal income tax rate of 35.0% to earnings before income taxes due to the following:

(In thousands)	2013			2012			2011
Computed expected tax provision	$	13,381		$	39,063		$	24,822
State and local taxes, net of federal income tax impact	1,279			4,398			1,482
Adjustment for state deferred tax rate	(762		)	(742		)	2,916
State investment tax credits	(2,263		)	(9,077		)	—
Federal credits and net operating losses	(10,234		)	4,121			(412		)
Federal manufacturing deduction	—			(3,288		)	(2,443		)
Uncertain tax positions	(69,144		)	4,801			2,610
Non-deductible acquisition costs	—			—			(1,215		)
Change in valuation allowances	(1,334		)	6,932			2,796
U.S. tax provision on foreign operations	67			(33		)	365
Other	289			1,285			325
Income tax provision	$	(68,721	)	$	47,460		$	31,246
Effective tax rate	(179.7		)%	42.5		%	44.1		%

We have tax benefits relating to equity-based compensation that are being utilized to reduce our U.S. taxable income. Our Consolidated Balance Sheets reflect net operating losses and tax credit carryforwards excluding amounts resulting from equity-based compensation. We have made an accounting policy election to follow the “with-and-without” or “incremental” method for ordering tax benefits derived from employee equity-based compensation awards. As a result of this method, net operating loss carryforwards not generated from equity-based compensation and which were in excess of equity-based compensation expense are utilized before the current period's equity-based tax deduction (excess tax benefits from equity-based compensation awards are recognized last). Excess tax benefits from equity-based compensation awards that are determined to reduce U.S. taxable income following this method are recognized when realized as increases to additional paid-in capital as a component of stockholders' equity. As of December 31, 2012, we had a total amount of excess tax benefits that were not recognized on our Consolidated Balance Sheet of approximately $1.4 million. During the year ended December 31, 2013, we generated excess tax benefits relating to the payout or issuance of performance shares for the 2010-2012 performance period and certain restricted stock units for the

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2009-2011 and 2011-2013 periods. Based on the incremental method, our excess tax benefits associated with equity-based compensation plans were not allocated to additional paid-in capital as a component of stockholders’ equity, as there was no cash tax benefit to be realized in the current year. The tax effect of this transaction was $2.3 million and it has been recorded as a reduction to our federal net operating loss deferred tax asset. Additionally, we had a tax affected $2.4 million reduction to additional paid-in capital relating to performance shares for the 2011-2013 performance period that will not be paid or issued because the requisite market condition performance measure was not met.

Based on the incremental method, our excess tax benefits associated with equity-based compensation plans, which have been allocated directly to additional paid-in capital as a component of stockholders’ equity, reducing income taxes payable was in the amount of $15.8 million and $0.9 million, in the years ended December 31, 2012, and 2011, respectively, while no reduction was incurred in the current year. As of December 31, 2013, we have a total amount of excess tax benefits that are not allocated directly to additional paid-in capital on our Consolidated Balance Sheet until such time as they affect a cash tax benefit of approximately $2.3 million.

(In thousands)	2013			2012
Deferred tax assets:
Employee benefits	$	8,612		$	8,630
Postretirement employee benefits	41,515			52,751
Incentive compensation	8,937			9,130
Inventories	5,898			—
Pensions	152			31,140
Federal and state credit carryforwards	27,597			20,447
Net operating losses	13,930			7,649
Federal benefit from state taxes resulting from uncertain tax positions	—			5,595
Other	7,390			5,757
Total deferred tax assets	$	114,031		$	141,099
Valuation allowance	(13,622		)	(14,957		)
Deferred tax assets, net of valuation allowance	$	100,409		$	126,142
Deferred tax liabilities:
Plant and equipment	$	(178,227	)	$	(157,973	)
Intangible assets	(9,542		)	(10,843		)
Inventories	—			(314		)
Total deferred tax liabilities	(187,769		)	(169,130		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

Net deferred tax assets (liabilities) consist of:

(In thousands)	2013			2012
Current deferred tax assets	$	37,538		$	20,473
Current deferred tax liabilities	—			(3,337		)
Net current deferred tax assets	37,538			17,136
Non-current deferred tax assets	62,871			110,762
Non-current deferred tax liabilities	(187,769		)	(170,886		)
Net non-current deferred tax liabilities	(124,898		)	(60,124		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

In each of the years ended December 31, 2013 and 2012, we recorded a $0.7 million tax benefit reflecting a remeasurement of state deferred tax assets and liabilities using anticipated tax rates that will be in effect when the underlying assets and liabilities will reverse.

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As of December 31, 2013, we had deferred tax assets arising from deductible temporary differences, tax losses and tax credits of approximately $114 million before the offset of certain deferred tax liabilities. With the exception of certain deferred tax assets related to federal foreign tax credits, state tax losses and state tax credits totaling $13.6 million, management believes it is more likely than not that forecasted income, together with the tax effect of the deferred tax liabilities, will be sufficient to fully recover the remaining deferred tax assets.

During 2013, the valuation allowance for deferred tax assets decreased by a net $1.3 million. We decreased the valuation allowances for state tax losses incurred by $1.2 million and decreased the valuation allowances for state tax credits by $0.4 million. Both of these items were recorded as current period deferred tax benefit. We also increased the valuation allowance relating to foreign tax credits by $0.3 million, which was recorded as a deferred tax expense to the income tax provision.

During 2012, the valuation allowance for deferred tax assets increased by a net $6.9 million. We decreased the valuation allowances for state tax losses incurred by $0.5 million and increased the valuation allowance for state tax credits by $8.2 million. Both of these items were recorded as current period deferred tax benefit and expense, respectively. We also reduced the valuation allowance relating to foreign tax credits by $0.8 million, which was recorded as a deferred tax benefit to the income tax provision. During 2011, the valuation allowance for deferred tax assets increased by a net $2.8 million. We increased the valuation allowances for state tax losses incurred by certain subsidiaries and state tax credits by $2.5 million and $2.2 million, respectively. Both of these items were recorded as current period deferred tax expense. We also reduced the valuation allowance relating to foreign tax credits by $1.9 million, which was recorded as a deferred tax benefit to the income tax provision. The reduction is based upon tax planning strategies that we believe will more likely than not allow us to utilize a portion of the foreign tax credits before they expire.

During the fourth quarter of 2012, the IRS commenced an audit of our tax returns for the tax years ending December 31, 2008 through December 31, 2011. During 2013, the IRS commenced an audit of our wholly owned subsidiary Cellu Tissue Holdings, Inc, and its subsidiaries for the year ended December 27, 2010; the period immediately before our acquisition of Cellu Tissue Holdings, Inc. These audits are in advanced stages as of the filing of this document. During the year, the company settled audits with the Canada Revenue Agency (CRA) for tax years 2009-2011, as well as numerous state income tax audits, including the State of Idaho. As part of the IRS audit, we identified additional gallons that qualify for the Cellulosic Biofuel Producer Credit that were previously unclaimed. During the third quarter of 2013, we recognized $3.5 million of additional benefit related to these gallons, resulting in a favorable adjustment.

Tax years subject to examination by major taxing jurisdictions are as follows:

Jurisdiction	Years
United States	2008 - 2013
Canada	2011 - 2013
Arkansas	2010 - 2013
California	2009 - 2013
Georgia	2010 - 2013
Idaho	2011 - 2013
Illinois	2008 - 2013
Wisconsin	2009 - 2013

Tax credits and losses subject to expiration by major taxing jurisdictions are as follows (dollars in thousands):

Jurisdiction	Gross Values		Years
United States
Net operating losses	$	27,428	2030 - 2033
Foreign tax credits	3,832		2016 - 2019
Cellulosic biofuel credits	3,495		2015
Other federal tax credits	4,264		2026 - 2033
Connecticut tax losses	20,385		2018 - 2033
Georgia tax losses	7,267		2027 - 2033
Idaho tax credits	4,851		2013 - 2027
North Carolina tax credits	15,966		2015 - 2017
Oklahoma tax losses	35,122		2030 - 2033

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As of December 31, 2013, there were no undistributed earnings relating to our Canadian subsidiary, Interlake Acquisition Corporation, as all historical earnings were repatriated under Cellu Tissue ownership. Management’s intent is to reinvest future earnings indefinitely.

A review of our uncertain income tax positions at December 31, 2013 and 2012 indicates that liabilities are required to be recorded for gross unrecognized tax benefits following authoritative accounting guidance. The following presents a roll forward of our unrecognized tax benefits and associated interest and penalties, as included in the Accrued Taxes line item in non-current liabilities in our Consolidated Balance Sheets.

(In thousands)	Gross Unrecognized Tax Benefits, Excluding Interest and Penalties			Interest and Penalties			Total Gross Unrecognized Tax Benefits
Balance at January 1, 2012	$	69,651		$	4,813		$	74,464
Increase in prior year tax positions	2,544			1,882			4,426
Increase in current year tax positions	154			—			154
Reductions as a result of a lapse of the applicable statute of limitations	(345		)	—			(345		)
Balance at December 31, 2012	$	72,004		$	6,695		$	78,699
Decrease in prior year tax positions	(69,816		)	(5,397		)	(75,213		)
Decrease due to settlements	(525		)	(777		)	(1,302		)
Increase in current year tax positions	469			5			474
Balance at December 31, 2013	$	2,132		$	526		$	2,658

The company has operations in many states within the U.S., as well as in Ontario, Canada, and is subject, at times, to tax audits in these jurisdictions. These tax audits by their nature are complex and can require multiple years to resolve. The final resolution of any such tax audits could result in either a reduction in the company’s accruals or an increase in its income tax provision, both of which could have an impact on the results of operations in any given period. With a few exceptions, the company is no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2009. The company regularly evaluates, assesses and adjusts these accruals in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period.

In November 2013, the Internal Revenue Service released a memorandum from the Office of Chief Counsel relating to the tax treatment of the Alternative Fuel Mixture Tax Credit, or AFMTC. The memorandum concluded that excise tax credits and the corresponding payments were not items of gross income under the Internal Revenue Code. Based upon this memorandum, there was sufficient evidence for the company to reassess the uncertain tax position relating to the taxability of the AFMTC as more likely than not that the income from the 2009 year is not taxable and therefore a reduction to the reserve for uncertain tax positions in the amount of $62.6 million was recorded during the fourth quarter, net of the associated deferred tax asset. A total reduction to the reserve for uncertain tax positions, net of deferred tax assets associated with such positions, during the year totaled $69.1 million and was recorded as a benefit to income tax expense.

Unrecognized tax benefits net of related deferred tax assets at December 31, 2013, if recognized, would favorably impact our effective tax rate by decreasing our tax provision by $2.7 million. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For the years ended December 31, 2013, 2012 and 2011, we accrued interest and no penalties of $2.0 million, $1.9 million and $2.4 million, respectively, in our income tax provision.

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NOTE 8 Accounts Payable and Accrued Liabilities

(In thousands)	2013		2012
Trade accounts payable	$	108,192	$	75,949
Accrued wages, salaries and employee benefits	38,563		42,491
Accrued interest	9,691		5,242
Accrued utilities	8,309		8,205
Accrued discounts and allowances	6,410		4,785
Accrued taxes other than income taxes payable	6,322		6,993
Other	13,161		21,931
	$	190,648	$	165,596

NOTE 9 Debt

$375 MILLION SENIOR NOTES DUE 2018

On October 22, 2010, we sold $375 million aggregate principal amount of senior notes, which we refer to as the 2010 Notes. The 2010 Notes mature on November 1, 2018, have an interest rate of 7.125% and were issued at their face value. The issuance of these notes generated net proceeds of $367.5 million after deducting offering expenses.

The 2010 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2010 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that we do not designate as an unrestricted subsidiary under the indenture governing the 2010 Notes. The 2010 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2010 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2010 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

We have the option to redeem all or a portion of the 2010 Notes at any time before November 1, 2014 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after November 1, 2014, we may redeem all or a portion of the 2010 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2010 Notes upon the sale of certain assets and upon a change of control.

REDEMPTION OF $150 MILLION SENIOR NOTES DUE 2016 AND ISSUANCE OF $275 MILLION SENIOR NOTES DUE 2023

In June 2009, we issued senior unsecured notes, which we refer to as the 2009 Notes, in the aggregate principal amount of $150 million. The 2009 Notes were due on June 15, 2016 and had an interest rate of 10.625%. The 2009 Notes were issued at a price equal to 98.792% of their face value.

We had the option to redeem all or a portion of the 2009 Notes at any time prior to June 15, 2013 at a redemption price equal to 100% of the principal amount thereof plus a “make whole” premium and accrued and unpaid interest. On February 22, 2013, we exercised our option to redeem all of the 2009 Notes at a redemption price equal to approximately $166 million, which consisted of 100% of the principal amount, plus a $12.6 million “make whole” premium and accrued and unpaid interest of approximately $3.0 million. The make whole premium and a portion of the unpaid interest, as well as an unamortized discount and deferred issuance costs associated with the 2009 Notes, were recorded as components of the debt retirement costs totaling $17.1 million in the first quarter of 2013, as included in the accompanying Consolidated Statement of Operations. Proceeds to fund the redemption of the 2009 Notes were made available through the sale of $275 million aggregate principal amount of senior notes on January 23, 2013, which we refer to as the 2013 Notes. The 2013 Notes mature on February 1, 2023, have an interest rate of 4.5% and were issued at their face value. The issuance of these notes generated net proceeds of approximately $271 million after deducting offering expenses.

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The 2013 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2013 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that we do not designate as an unrestricted subsidiary under the indenture governing the 2013 Notes. The 2013 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2013 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2013 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

Prior to February 1, 2016, we may redeem up to 35% of the 2013 Notes at a redemption price equal to 104.5% of the principal amount plus accrued and unpaid interest with the proceeds from one or more qualified equity offerings. We have the option to redeem all or a portion of the 2013 Notes at any time before February 1, 2018 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after February 1, 2018, we may redeem all or a portion of the 2013 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2013 Notes upon the sale of certain assets and upon a change of control.

REVOLVING CREDIT FACILITY

On November 26, 2008, we entered into a $125 million senior secured revolving credit facility with certain financial institutions. The amount available to us under the revolving credit facility is based on the lesser of 85% of our eligible accounts receivable plus approximately 65% of our eligible inventory, or $125 million. The revolving credit facility has been subsequently amended and expires on September 30, 2016.

As of December 31, 2013, there were no borrowings outstanding under the credit facility, but approximately $6.6 million of the credit facility was being used to support outstanding standby letters of credit. Loans under the credit facility bear interest (i) for LIBOR loans, LIBOR plus between 1.75% and 2.25% and (ii) for base rate loans, a per annum rate equal to the greater of (a) the prime rate for such day; (b) the federal funds effective rate for such day, plus 0.50%; or (c) LIBOR for a 30-day interest period as determined on such day, plus between 1.25% and 1.75%. The percentage margin on all loans is based on our fixed charge coverage ratio for the most recent four quarters. As of December 31, 2013, we would have been permitted to draw approximately $118.4 million under the credit facility at LIBOR plus 1.75%, or base rate plus 1.25%.

A minimum fixed charge coverage ratio is the only financial covenant requirement under our credit facility and is triggered when there are any commitments or obligations outstanding and availability falls below 12.5% or an event of default exists, at which time the minimum fixed charge coverage ratio must be at least 1.0-to-1.0. As of December 31, 2013, the fixed charge coverage ratio for the most recent four quarters was 2.5-to-1.0.

Our obligations under the revolving credit facility are secured by certain of our accounts receivable, inventory and cash. The terms of the credit facility contain various provisions that limit our discretion in the operations of our business by restricting our ability to, among other things, pay dividends; redeem or repurchase capital stock; create, incur or guarantee certain debt; incur liens on certain properties; make capital expenditures; enter into certain affiliate transactions; enter into certain hedging arrangements; and consolidate with or merge with another entity. The revolving credit facility contains usual and customary affirmative and negative covenants and usual and customary events of default.

NOTE 10 Other Long-Term Obligations

(In thousands)	2013		2012
Long-term lease obligations, net of current portion	$	24,815	$	25,240
Deferred compensation	14,149		9,939
Deferred proceeds	11,205		11,668
Other	2,773		4,063
	$	52,942	$	50,910

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NOTE 11 Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss at the balance sheet dates is comprised of the following:

(In thousands)	Foreign Currency Translation Adjustments1			Pension and Other Post Retirement Employee Benefit Plans Adjustments			Total
Balance at December 31, 2012	$	(874	)	$	(114,819	)	$	(115,693	)
Other comprehensive income before reclassifications	—			9,468			9,468
Amounts reclassified from accumulated other comprehensive loss	—			48,132			48,132
Other comprehensive income, net of tax2	—			57,600			57,600
Balance at December 31, 2013	$	(874	)	$	(57,219	)	$	(58,093	)

¹ This balance consists of unrealized foreign currency translation adjustments related to the operations of our Canadian subsidiary before its functional currency was changed from Canadian dollars to U.S. dollars in 2012.

² Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

NOTE 12 Savings, Pension and Other Postretirement Employee Benefit Plans

Certain of our employees are eligible to participate in defined contribution savings and defined benefit postretirement plans. These include 401(k) savings plans, defined benefit pension plans including company-sponsored and multiemployer plans, and Other Postretirement Employee Benefit, or OPEB, plans, each of which is discussed below.

401(k) Savings Plans

Substantially all of our employees are eligible to participate in 401(k) savings plans, which include a company match component. In 2013, 2012 and 2011, we made matching 401(k) contributions on behalf of employees of $16.8 million, $14.9 million and $8.1 million, respectively.

Company-Sponsored Defined Benefit Pension Plans

A majority of our salaried employees and a portion of our hourly employees are covered by company-sponsored noncontributory defined benefit pension plans.

During the second quarter of 2013, we recorded a curtailment loss of $0.8 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, due to the freezing of pension benefits for certain employees at our Lewiston, Idaho pulp and paperboard facility, effective June 30, 2013. In the fourth quarter of 2012, we recorded a curtailment loss of $0.5 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, as a result of certain hourly employees at our Cypress Bend, Arkansas pulp and paperboard facility electing to cease accruing further pension benefits effective December 31, 2012. In exchange, beginning January 1, 2013 and lasting for a certain number of years, these employees began receiving an enhanced employer contribution to one of our existing 401(k) savings plan in which they participate. In the fourth quarter of 2011, we recorded a curtailment loss of $2.8 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, as a result of the sale of our sawmill. In addition, we recorded a $0.4 million decrease in our pension liability with a corresponding decrease in Accumulated Other Comprehensive Loss.

Company-Sponsored OPEB Plans

We also provide benefits under company-sponsored defined benefit retiree health care and life insurance plans, which cover certain salaried and hourly employees. Most of the retiree health care plans require retiree contributions and contain other cost-sharing features. The retiree life insurance plans are primarily noncontributory.

Funded Status of Company-Sponsored Plans

As required by current standards governing the accounting for defined benefit pension and other postretirement plans, we recognized the funded status of our company-sponsored plans on our Consolidated Balance Sheets at December 31, 2013 and 2012. The funded status is measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation.

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For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement employee benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement employee benefit obligation.

We use a December 31 measurement date for our benefit plans.

The changes in benefit obligation, plan assets and funded status for company-sponsored benefit plans as of December 31 are as follows:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Benefit obligation at beginning of year	$	333,257		$	307,658		$	134,618		$	136,710
Service cost	1,738			2,485			552			693
Interest cost	13,375			14,693			4,730			5,815
Plan changes	—			—			5,106			(5,278		)
Actuarial (gains) losses	(36,859		)	30,612			(30,322		)	3,151
Medicare Part D subsidies received	—			—			308			569
Benefits paid	(18,123		)	(22,191		)	(7,665		)	(7,042		)
Benefit obligation at end of year	293,388			333,257			107,327			134,618
Fair value of plan assets at beginning of year	254,556			218,557			19			18
Actual return on plan assets	34,779			37,308			1			1
Employer contribution	15,386			20,882			—			—
Benefits paid	(18,123		)	(22,191		)	—			—
Fair value of plan assets at end of year	286,598			254,556			20			19
Funded status at end of year	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Amounts recognized in the Consolidated Balance Sheets:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Noncurrent asset	4,488			—			—			—
Current liabilities	$	(364	)	$	(281	)	$	(8,414	)	$	(8,856	)
Noncurrent liabilities	(10,914		)	(78,420		)	(98,893		)	(125,743		)
Net amount recognized	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Amounts recognized (pre-tax) in Accumulated Other Comprehensive Loss as of December 31 consist of:

	Pension Benefit Plans				Other Postretirement Employee Benefit Plans
(In thousands)	2013		2012		2013			2012
Net loss (gain)	$	109,218	$	177,343	$	(5,915	)	$	24,408
Prior service cost (credit)	308		1,414		(896		)	(6,504		)
Net amount recognized	$	109,526	$	178,757	$	(6,811	)	$	17,904

Information as of December 31 for certain pension plans included above with accumulated benefit obligations in excess of plan assets were as follows:

(In thousands)	2013		2012
Projected benefit obligation	$	293,388	$	333,257
Accumulated benefit obligation	293,388		333,257
Fair value of plan assets	286,598		254,556

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Pre-tax components of Net Periodic Cost and other amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31 were as follows:

Net Periodic Cost (Benefit):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Service cost	$	1,738		$	2,485		$	7,725		$	552		$	693		$	702
Interest cost	13,375			14,693			15,092			4,730			5,815			6,857
Expected return on plan assets	(18,352		)	(19,685		)	(19,532		)	—			—			—
Amortization of prior service cost (credit)	337			634			1,193			(502		)	(2,680		)	(1,795		)
Amortization of actuarial loss	14,840			12,085			8,382			—			—			—
Curtailments	769			477			2,776			—			—			—
Net periodic cost	$	12,707		$	10,689		$	15,636		$	4,780		$	3,828		$	5,764

Other amounts recognized in Other Comprehensive Income (Loss):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Net (gain) loss	$	(53,285	)	$	12,989		$	43,207		$	(30,323	)	$	3,150		$	(5,435	)
Curtailments	(769		)	(477		)	(2,776		)	—			—			—
Prior service cost (credit)	—			—			—			5,106			(5,278		)	—
Amortization of prior service (cost) credit	(337		)	(634		)	(1,193		)	502			2,680			1,795
Amortization of actuarial loss	(14,840		)	(12,085		)	(8,382		)	—			—			—
Total recognized in other comprehensive (income) loss	$	(69,231	)	$	(207	)	$	30,856		$	(24,715	)	$	552		$	(3,640	)
Total recognized in net periodic cost and   other comprehensive (income) loss	$	(56,524	)	$	10,482		$	46,492		$	(19,935	)	$	4,380		$	2,124

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 cost (benefit) over the next fiscal year are $10.0 million and $0.2 million, respectively. The estimated prior service credit for the OPEB plans that will be amortized from accumulated other comprehensive loss into net periodic cost (benefit) over the next fiscal year is $0.5 million.

During 2013, $14.2 million of net periodic pension and OPEB costs were charged to cost of sales, and $3.3 million was charged to selling, general and administrative expenses in the accompanying Consolidated Statements of Operations.

The Medicare Prescription Drug Improvement and Modernization Act of 2003 introduced a drug benefit under Medicare Part D and a federal subsidy to sponsors of retiree health care benefit plans that provide an equivalent benefit. Our actuaries determined that certain benefits provided under our plans are actuarially equivalent to the Medicare Part D standard plan and are eligible for the employer subsidy. During 2013 and 2012, we received subsidy payments totaling $0.3 million and $0.6 million for each respective year.

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	5.20	%	4.15	%	4.90	%	5.05	%	4.05	%	4.95	%

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	4.15	%	4.90	%	5.70	%	4.05	%	4.95	%	5.60	%
Expected return on plan assets	7.50		8.00		8.00		—		—		—
Rate of salaried compensation increase	—		—		4.00		—		—		—

The discount rate used in the determination of pension benefit obligations and pension expense was determined based on a review of long-term high-grade bonds as well as management’s expectations. The discount rate used to calculate OPEB obligations was determined using the same methodology we used for our pension plans.

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 assumed health care cost trend rate used to calculate OPEB obligations and expense was 7.7% in 2013, grading to a range of 4.30% to 4.64% over approximately 70 years. This assumption has a significant effect on the amounts reported. A one percentage point change in the health care cost trend rates would have the following effects:

(In thousands)	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	521	$	(438	)
Effect on postretirement employee benefit obligation	9,304		(7,997		)

The investments of our defined benefit pension plans are held in a Master Trust. The assets of our OPEB plans are held within an Internal Revenue Code section 401(h) account for the payment of retiree medical benefits within the Master Trust.

The Master Trust has a securities lending agreement. The agreement authorizes the lending agent to loan securities owned by the Master Trust to an approved list of borrowers. Under the agreement, the lending agent is responsible for negotiating each loan for an unspecified term while retaining the power to terminate the loan at any time. At the time each loan is made, the lending agent requires collateral equal to, but not less than, 102% of the market value of the loaned securities and accrued interest. The Master Trust directs the agent as to the type of investment pool in which to invest the borrower’s collateral based on established policy with specific limits; accordingly, the right to receive the collateral and obligation to return it are disclosed as a component of Master Trust investments. While the securities are loaned, the Master Trust retains all rights of ownership, except it waives its right to vote such securities. Securities loaned subject to this securities lending agreement totaled $0.3 million at December 31, 2013. These securities are principally corporate common stocks.

Current accounting rules governing fair value measurement establish a framework for measuring fair value, which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). 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 that the plans have the ability to access.
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
	If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3	Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

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The asset’s or liability’s 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.

Securities in the Master Trust are stated at fair value. Fair value is based upon quotations obtained from national securities exchanges, if available. Where securities do not have a quoted market price, the recorded amount represents estimated fair value. Many factors are considered in arriving at that fair market value. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used during 2013.

▪ Corporate common stock and mutual funds: Investments are valued at quoted market prices.

▪ Common and collective trusts: The investment in common and collective trusts is based on the fair value of the underlying assets and is expressed in units.

▪ Corporate debt securities: In general, corporate bonds are valued based on yields currently available on comparable securities of issuers with similar credit ratings.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following tables set forth by level, within the fair value hierarchy, the investments at fair value for our company-sponsored pension benefit plans:

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	4,314	$	—	$	—	$	4,314
Common and collective trusts:
International small cap	—		15,845		—		15,845
Global/International equity	—		21,198		—		21,198
International equity emerging markets	—		17,809		—		17,809
Common stocks:
Industrials	9,307		—		—		9,307
Energy	2,663		—		—		2,663
Consumer	8,002		—		—		8,002
Healthcare	6,013		—		—		6,013
Finance	11,566		—		—		11,566
Utilities	1,711		—		—		1,711
Information technology	8,785		—		—		8,785
Foreign	6,175		—		—		6,175
Mutual funds:
Foreign large blend	18,492		—		—		18,492
Long-term bond fund	137,031		—		—		137,031
Mid-cap growth fund	18,009		—		—		18,009
Subtotal	$	232,068	$	54,852	$	—	$	286,920
Payable held under securities lending agreement							(322		)
Total investments at fair value							$	286,598

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	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,786	$	—	$	—	$	3,786
Common and collective trusts:
International small cap	—		12,725		—		12,725
Global/International equity	—		16,656		—		16,656
Domestic equity – small/mid cap	—		17,339		—		17,339
International equity emerging markets	—		17,672		—		17,672
Common stocks:
Industrials	9,475		—		—		9,475
Energy	1,966		—		—		1,966
Consumer	8,270		—		—		8,270
Healthcare	7,386		—		—		7,386
Finance	13,000		—		—		13,000
Utilities	2,305		—		—		2,305
Information technology	6,828		—		—		6,828
Foreign	6,078		—		—		6,078
Mutual funds:
Foreign large blend	18,907		—		—		18,907
Long-term bond fund	114,557		—		—		114,557
Corporate debt securities	—		1,073		—		1,073
Subtotal	$	192,558	$	65,465	$	—	$	258,023
Payable held under securities lending agreement							(3,467		)
Total investments at fair value							$	254,556

Our OPEB plan had approximately $20,000 held in cash and equivalents at December 31, 2013, which were categorized as level 1.

We have formal investment policy guidelines for our company-sponsored plans. These guidelines were set by our benefits committee, which is comprised of members of our management and has been assigned its fiduciary authority over management of the plan assets by our Board of Directors. The committee’s duties include periodically reviewing and modifying those investment policy guidelines as necessary and insuring that the policy is adhered to and the investment objectives are met.

The investment policy includes specific guidelines for specific categories of fixed income and convertible securities. Assets are managed by professional investment managers who are expected to achieve a reasonable rate of return over a market cycle. Long-term performance is a fundamental tenet of the policy.

The general policy states that plan assets would 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 is to maintain adequate liquidity for meeting expected benefit payments by reviewing, on a timely basis, contribution and benefit payment levels and appropriately revising 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 included:

▪ Assets are diversified among various asset classes, such as domestic equities, international equities, fixed income and cash. The long-term asset allocation ranges are as follows:

Domestic equities	19%-31%
International equities, including emerging markets	16%-34%
Corporate bonds	40%-60%
Liquid reserves	0%-1%

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Periodically, 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 were managed by professional investment managers and could be invested in separately managed accounts or commingled funds.

▪ Assets were not invested in securities rated below BBB- by S&P or Baa3 by Moody’s.

The investment guidelines also required that the individual investment managers were expected to achieve a reasonable rate of return over a market cycle. Emphasis was placed on long-term performance versus short-term market aberrations. Factors considered in determining reasonable rates of return included performance achieved by a diverse cross section of other investment managers, performance of commonly used benchmarks (e.g., Russell 3000 Index, MSCI World ex-U.S. Index, Barclays Capital Long Credit Index), actuarial assumptions for return on plan investments and specific performance guidelines given to individual investment managers.

At December 31, 2013, ten active investment managers managed substantially all of the pension funds, each of whom had responsibility for managing a specific portion of these assets. Plan assets were diversified among the various asset classes within the allocation ranges approved by the benefits committee.

We are required to make contributions to our qualified pension plans. In 2013 we contributed $15.1 million to these pension plans. We also contributed $0.3 million to our non-qualified pension plan in 2013. Our cash contributions in 2014 are estimated to be approximately $15 million. These contributions are comprised of $8 million in actuarially determined minimum contributions and $7 million of payments required to be made under a previous agreement with the Pension Benefit Guarantee Corporation stemming from the 2011 sale of the Lewiston, Idaho Sawmill. We do not anticipate funding our OPEB plans in 2013 except to pay benefit costs as incurred during the year by plan participants.

Estimated future benefit payments, which reflect expected future service and expected Medicare prescription subsidy receipts, are as follows for the years indicated:

(In thousands)	Pension Benefit Plans		Other Postretirement Employee Benefit Plans		Expected Medicare Subsidy
2014	$	17,837	$	8,744	$	310
2015	18,361		8,947		313
2016	18,942		9,268		315
2017	19,486		9,190		313
2018	19,932		9,229		309
2019-2023	103,091		39,664		1,436

Multiemployer Defined Benefit Pension Plans

Hourly employees at two of our manufacturing facilities participate in multiemployer defined benefit pension plans: the PACE Industry Union Management Pension Fund, or PIUMPF, which is managed by United Steelworkers, or USW, Benefits; and the International Association of Machinist & Aerospace Workers National Pension Fund, or IAM. We make contributions to these plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees, which is also managed by USW Benefits. The risks of participating in these multiemployer plans are different from single-employer plans in the following respects:

▪ Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

▪ If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

▪ Under applicable federal law, any employer contributing to a multiemployer pension plan that completely ceases participating in the plan while it is underfunded is subject to an assessment of such employer's allocable share of the aggregate unfunded vested benefits of the plan. In certain circumstances, an employer can also be assessed a withdrawal liability for a partial withdrawal from a multiemployer pension plan. Based on information as of December 31, 2012 provided by PIUMPF and reviewed by our actuarial consultant, we estimate the aggregate pre-tax liability that we would have incurred if we had completely withdrawn from PIUMPF in 2013 would have been in excess of $72 million. However, the exact amount of potential exposure could be higher or lower than the estimate, depending on, among other things, the nature and timing of any triggering events and the funded status of PIUMPF at that time. A withdrawal liability is recorded for accounting purposes when withdrawal is probable and the amount of the withdrawal obligation is reasonably estimable.

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Our participation in these plans for the annual period ended December 31, 2013, is outlined in the table below. The “EIN" and "Plan Number” columns provide the Employee Identification Number, or EIN, and the three-digit plan number. The most recent Pension Protection Act, or PPA, zone status available in 2013 and 2012 is for a plan’s year-end as of December 31, 2012, and December 31, 2011, respectively. The zone status is based on information we received from the plans and is certified by each plans’ actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent but more than 65 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan, or FIP, or a rehabilitation plan, or RP, is either pending or has been implemented as required by the PPA as a measure to correct its underfunded status. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.

In 2013, the contribution rates for the IAM plan increased to $4.00 an hour, up from $3.25 an hour in 2012 and $3.00 an hour in 2011, affecting the comparability of the contributions year over year. Similarly, in November of 2011, the USW plan’s contribution rates increased from $2.4285 an hour to $2.6714 an hour. The USW plan's rate increase was implemented as part of the RP in lieu of the legally required surcharge, paid by the employers, to assist the fund’s financial status. As such, the USW contribution rate changes affect comparability of the contributions year over year. We were listed in the USW Plan’s Form 5500 report as providing more than five percent of the total contributions for the years 2012 and 2011. At the date of issuance of our consolidated financial statements, Form 5500 reports for these plans were not available for the 2013 plan year.

Pension Fund	EIN	Plan Number	PPA Zone Status			FIP/RP Status Pending/ Implemented	Contributions (in thousands)						Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
			2013	2012			2013		2012		2011
IAM	51-6031295	002	Green	Green		N/A	$	343	$	288	$	269	No	5/31/2016
USW	11-6166763	001	Red	Red		Implemented	5,718		5,673		5,648		No	8/31/2014
					Total Contributions:		$	6,061	$	5,961	$	5,917

NOTE 13 Earnings Per Share

Basic and diluted earnings per common share are computed by dividing net earnings by the weighted average number of common shares outstanding and by the weighted average number of dilutive potential common shares, in accordance with accounting guidance related to earnings per share. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share:

	2013		2012		2011
Basic average common shares outstanding1	22,081,026		23,298,663		22,913,881
Incremental shares due to:
Restricted stock units	53,803		24,086		220,457
Performance shares	129,003		291,036		817,946
Diluted average common shares outstanding	22,263,832		23,613,785		23,952,284
Basic net earnings per common share	$	4.84	$	2.75	$	1.73
Diluted net earnings per common share	4.80		2.72		1.66
Anti-dilutive shares excluded from calculation	41,337		9,992		88,674

¹  Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. See Note 14, "Equity-Based Compensation Plans" for further discussion.

NOTE 14 Equity-Based Compensation Plans

The Clearwater Paper Corporation 2008 Stock Incentive Plan, or Stock Plan, which has been approved by our stockholders, provides for equity-based awards in the form of restricted shares, restricted stock units, or RSUs, performance shares, stock options, or stock appreciation rights to selected employees, outside directors, and consultants of the company. The Stock Plan became effective on December 16, 2008. Under the Stock Plan, as amended, we are authorized to issue up to approximately 4.1 million shares, which includes approximately 0.7 million additional shares authorized in connection with our acquisition of Cellu Tissue that are available for issuance as equity-based awards only to any employees, outside directors, or consultants who were not employed on December 26, 2010 by Clearwater Paper Corporation or any of its subsidiaries. At December 31, 2013, approximately 1.9 million shares were available for future issuance under the Stock Plan.

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We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including RSUs and performance shares, based on estimated fair values and net of estimates of future forfeitures. Expense is classified in selling, general and administrative expense in our Consolidated Statements of Operations and is recognized on a straight-line basis over the requisite service periods of each award. Based on the terms of the Stock Plan, retirement-eligible employees become fully vested in outstanding awards on the later of that date they reach retirement eligibility or at the end of the first calendar year of each respective grant. We account for this feature when determining the service period over which to recognize expense for each grant of RSUs and performance shares.

Employee equity-based compensation expense was recognized as follows:

(In thousands)	2013		2012		2011
Restricted stock units	$	1,801	$	970	$	1,212
Performance shares	5,075		7,364		5,446
Total employee equity-based compensation	$	6,876	$	8,334	$	6,658
Related tax benefit	$	2,049	$	2,886	$	2,290

RESTRICTED STOCK UNITS

RSUs granted under our Stock Plan are generally subject to a vesting period of one to three years. RSU awards will accrue dividend equivalents based on dividends paid, if any, 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. RSUs granted under our Stock Plan do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement.

A summary of the status of outstanding unvested RSU awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	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	63,727		$	35.57	169,344		$	11.33	437,272		$	6.96
Granted	72,702		43.44		52,294		34.59		23,138		38.42
Vested	(30,190	)	39.21		(155,177	)	8.82		(286,486	)	6.88
Forfeited	(3,581	)	42.03		(2,734	)	34.07		(4,580	)	8.64
Unvested shares outstanding at   December 31	102,658		39.85		63,727		35.57		169,344		11.33
Aggregate intrinsic value (in   thousands)			$	5,390			$	2,496			$	6,030

During 2013, 126,726 shares of RSUs were distributed. Of these shares, 22,370 were RSU shares that were settled and distributed in the fourth quarter of 2013. The remaining 104,356 shares were RSU shares that were settled in prior years but distribution had been deferred to preserve tax deductibility for the company in the respective years because distribution of these shares would have resulted in certain executive compensation being above the Internal Revenue Code section 162(m) threshold for those years. After adjusting for minimum tax withholdings a net 73,154 shares were issued during 2013. The minimum tax withholdings payment made in 2013 in connection with issued shares was $2.6 million.

During 2012, 288,336 shares of RSUs were settled, of which 112,682 shares were settled and distributed. The remaining 175,654 shares were deferred under Internal Revenue Code section 162(m). Included in the total shares settled during 2012 were RSUs of which a portion vested each year over a three year period ending in January 2012. After adjusting for minimum tax withholdings and deferred shares, a net 78,029 shares were issued during 2012. The minimum tax withholdings payment made in 2012 in connection with issued shares was $1.3 million.

As of December 31, 2013 a total of 84,602 shares remain deferred under Internal Revenue Code section 162(m).

The fair value of each RSU share award granted during 2013 was estimated on the date of grant using the grant date market price of our common stock. The total fair value of share awards that vested during 2013 was $1.2 million.

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As of December 31, 2013, there was $2.6 million of total unrecognized compensation cost related to outstanding RSU awards. The cost is expected to be recognized over a weighted average period of 2.0 years.

PERFORMANCE SHARES

Performance share awards granted under our Stock Plan have a three-year performance period, with generally the same service period, and shares are issued after the end of the period if the employee provides the requisite service and the performance measure is met. The performance measure is a comparison of the percentile ranking of our total stockholder return compared to the total stockholder return performance of a selected peer group. The performance measure is considered to represent a “market condition” under authoritative accounting guidance, and thus, the market condition is considered when determining the estimate of the fair value of the performance share awards. The number of shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0%-200%.

Performance share awards granted under our Stock Plan do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement. During the performance period, dividend equivalents accrue based on dividends paid, if any, and are converted into additional performance shares, which vest or are forfeited in the same manner as the underlying performance shares to which they relate. Generally, if an employee terminates prior to completing the requisite service period, all or a portion of their awards are forfeited and the previously recognized compensation cost is reversed. If an employee provides the requisite service through the end of the performance period, but the performance measure is not met, following authoritative guidance for awards with a market condition, previously recognized compensation cost is not reversed.

The fair value of performance share awards is estimated using a Monte Carlo simulation model. For performance shares granted in 2013, the following assumptions were used in our Monte Carlo model:

Closing price of stock on date of grant	$	47.30
Risk free rate	0.35		%
Measurement period	3 years
Volatility	30		%

In addition to the above assumptions, the dividend yields for all companies were assumed to be zero since dividends are included in the definition of total shareholder return.

A summary of the status of outstanding performance share awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding share awards at   January 1	392,655		$	44.67	749,538		$	19.52	638,870	$	13.00
Granted	124,513		63.46		150,865		40.24		110,668	57.18
Settled	(246,592	)	47.19		(499,680	)	5.65		—	—
Forfeited	(10,735	)	54.87		(8,068	)	42.15		—	—
Outstanding share awards at   December 31	259,841		50.87		392,655		44.67		749,538	19.52
Aggregate intrinsic value (in   thousands)			$	13,642			$	15,376		$	26,691

On December 31, 2013, the three-year performance period for 108,366 performance shares granted in 2011 ended. The requisite market condition performance measure was not met, and as such no shares will be paid or issued under these awards.

The service and performance period for 138,226 outstanding performance shares granted in 2010 ended on December 31, 2012. Those performance shares were settled and distributed during the first quarter of 2013. The number of shares actually distributed, as a percentage of the performance shares granted, was 101.4%. After adjusting for the related minimum tax withholdings, a net 93,744 shares were issued in the first quarter of 2013. The related minimum tax withholdings payment made in the first quarter of 2013 in connection with issued shares was $2.2 million.

As of December 31, 2013, there was $5.6 million of unrecognized compensation cost related to outstanding performance share awards. The cost is expected to be recognized over a weighted average period of 1.5 years.

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DIRECTOR AWARDS

In connection with joining our Board of Directors, in January 2009 our outside directors at that time were granted an award of phantom common stock units, which were credited to an account established on behalf of each director and vested ratably over a three-year period with the final vesting in January 2012. Subsequent equity awards have been granted annually in May, or on a pro-rata basis as applicable, to our outside directors in the form of phantom common stock units as part of their annual compensation, which are credited to their accounts. These awards vest ratably over a one-year period. These accounts will be credited with additional phantom common stock units equal in value to dividends paid, if any, on the same amount of common stock. Upon separation from service as a director, the vested portion of the phantom common stock units held by the director in a stock unit account are converted to cash based upon the then market price of the common stock and paid to the director. Due to its cash-settlement feature, we account for these awards as liabilities rather than equity and recognize the equity-based compensation expense or income at the end of each reporting period based on the portion of the award that is vested and the increase or decrease in the value of our common stock. We recorded director equity-based compensation expense totaling $4.1 million, $1.4 million and $1.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, the liability amounts associated with director equity-based compensation included in "Other long-term obligations" on our Consolidated Balance Sheets were $13.2 million and $9.1 million, respectively.

NOTE 15 Fair Value Measurements

The estimated fair values of our financial instruments as of our balance sheet dates are presented below:

	2013				2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash, short-term investments and restricted cash (Level 1)	$	95,206	$	95,206	$	34,079	$	34,079
Long-term debt (Level 1)	650,000		651,313		523,933		572,625

Accounting guidance establishes a framework for measuring the fair value of financial instruments, providing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities, or “Level 1” measurements, followed by quoted prices of similar assets or observable market data, or “Level 2” measurements, and the lowest priority to unobservable inputs, or “Level 3” measurements.

The asset’s or liability’s 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 should seek to maximize the use of observable inputs and minimize the use of unobservable inputs.

Cash, short-term investments, restricted cash and long-term debt are the only items measured at fair value on a recurring basis. The carrying amount of our short-term investments approximates fair value due to their very short maturity periods, and such investments are at or near market yields.

We do not have any financial assets measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets held and used that are measured at fair value resulting from impairment, if deemed necessary.

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NOTE 16 Commitments and Contingencies

LEASE COMMITMENTS

Our operating leases cover manufacturing, office, warehouse and distribution space, equipment and vehicles, which expire at various dates through 2028. Additionally, we have capital leases related to our North Carolina converting and manufacturing facilities. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced.

As of December 31, 2013, under current operating and capital lease contracts, we had future minimum lease payments as follows:

(In thousands)	Capital			Operating
2014	$	2,375		$	17,335
2015	2,420			12,926
2016	2,466			9,823
2017	2,513			8,555
2018	2,560			6,141
Thereafter	34,802			10,478
Total future minimum lease payments	$	47,136		$	65,258
Less interest portion	(23,141		)
Present value of future minimum lease payments	$	23,995

Rent expense for operating leases was $19.4 million, $16.6 million and $16.1 million for the years ended December 31, 2013, 2012 and 2011, respectively.

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NOTE 17 Segment Information

We are organized in two reportable operating segments: Consumer Products and Pulp and Paperboard. Intersegment pulp transfers from our Pulp and Paperboard segment to our Consumer Products segment are transferred at cost. As a result, there are no eliminations required to reconcile our total consolidated net sales to the segments' total net sales.

Following is a tabular presentation of business segment information for each of the past three years. Corporate information is included to reconcile segment data to the financial statements.

(In thousands)	2013			2012			2011
Segment net sales:
Consumer Products	$	1,149,692		$	1,134,556		$	1,092,133
Pulp and Paperboard	740,138			739,748			835,840
Total segment net sales	$	1,889,830		$	1,874,304		$	1,927,973
Operating income:
Consumer Products	$	52,799		$	93,347		$	42,806
Pulp and Paperboard1	95,781			103,910			92,827
	148,580			197,257			135,633
Corporate and eliminations1	(49,252		)	(51,870		)	(20,188		)
Income from operations	$	99,328		$	145,387		$	115,445
Depreciation and amortization:
Consumer Products	$	65,197		$	54,547		$	50,391
Pulp and Paperboard	23,266			23,113			26,073
Corporate	1,809			1,673			469
Total depreciation and amortization	$	90,272		$	79,333		$	76,933
Assets:
Consumer Products	$	1,215,919		$	1,178,438		$	1,081,988
Pulp and Paperboard	359,735			344,614			355,886
	1,575,654			1,523,052			1,437,874
Corporate	169,171			110,404			133,444
Total assets	$	1,744,825		$	1,633,456		$	1,571,318
Capital expenditures:
Consumer Products	$	46,647		$	183,330		$	117,059
Pulp and Paperboard	30,846			19,954			15,355
	77,493			203,284			132,414
Corporate	9,015			3,831			5,329
Total capital expenditures	$	86,508		$	207,115		$	137,743

¹  Results for Pulp and Paperboard for 2011 included additional expenses associated with the sale of the Lewiston, Idaho sawmill, which were partially offset by LIFO inventory liquidation and other adjustments recorded at the corporate level.

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Our manufacturing facilities and all other assets are located within the continental United States, except for one production facility in St. Catharines, Ontario, Canada. We sell and ship our products to customers in many foreign countries. Geographic information regarding our net sales is summarized as follows:

(In thousands)	2013		2012		2011
United States	$	1,751,001	$	1,726,561	$	1,751,482
Japan	67,728		63,368		63,584
Canada	26,161		29,557		31,256
Korea	10,899		9,655		5,426
Australia	7,924		7,786		6,246
China	5,404		3,488		15,081
Mexico	2,964		6,102		13,619
Taiwan	1,755		11,061		16,205
Other foreign countries	15,994		16,726		25,074
Total net sales	$	1,889,830	$	1,874,304	$	1,927,973

NOTE 18 Financial Results by Quarter (Unaudited)

	Three Months Ended
	March 31						June 30						September 30						December 31
(In thousands— except per-share amounts)	2013			2012			2013			2012			2013			2012			2013			2012
Net sales	$	460,824		$	457,798		$	471,002		$	473,572		$	487,845		$	480,233		$	470,159		$	462,701
Costs and expenses:
Cost of sales	(414,209		)	(403,076		)	(414,521		)	(398,546		)	(441,237		)	(409,822		)	(401,404		)	(396,428		)
Selling, general and   administrative   expenses	(34,132		)	(29,074		)	(26,767		)	(30,529		)	(27,766		)	(30,649		)	(30,466		)	(30,793		)
Total operating   costs and expenses	(448,341		)	(432,150		)	(441,288		)	(429,075		)	(469,003		)	(440,471		)	(431,870		)	(427,221		)
Income from   operations	12,483			25,648			29,714			44,497			18,842			39,762			38,289			35,480
Net (loss) earnings	$	(882	)	$	3,726		$	11,658		$	21,489		$	13,317		$	19,064		$	82,862		$	19,852
Net (loss) earnings   per common share
Basic	$	(0.04	)	$	0.16		$	0.52		$	0.92		$	0.60		$	0.82		$	3.91		$	0.86
Diluted	(0.04		)	0.16			0.52			0.91			0.60			0.80			3.87			0.84

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NOTE 19 Supplemental Guarantor Financial Information

All of our directly and indirectly owned, domestic subsidiaries guarantee the 2013 Notes and the 2010 Notes on a joint and several basis. As of December 31, 2013, the 2013 Notes and 2010 Notes were not guaranteed by Interlake Acquisition Corporation Limited, a foreign subsidiary. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes and 2010 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor and non-guarantor entities, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis.

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2013

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,408,941		$	480,599		$	29,494		$	(29,204	)	$	1,889,830
Cost and expenses:
Cost of sales	(1,203,945		)	(467,822		)	(28,808		)	29,204			(1,671,371		)
Selling, general and administrative expenses	(94,861		)	(22,918		)	(1,352		)	—			(119,131		)
Total operating costs and expenses	(1,298,806		)	(490,740		)	(30,160		)	29,204			(1,790,502		)
Income (loss) from operations	110,135			(10,141		)	(666		)	—			99,328
Interest expense, net	(44,031		)	(5		)	—			—			(44,036		)
Debt retirement costs	(17,058		)	—			—			—			(17,058		)
Earnings (loss) before income taxes	49,046			(10,146		)	(666		)	—			38,234
Income tax benefit (provision)	61,778			(4,420		)	(138		)	11,501			68,721
Equity in income of subsidiary	(15,370		)	(804		)	—			16,174			—
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Other comprehensive income, net of tax	57,600			—			—			—			57,600
Comprehensive income (loss)	$	153,054		$	(15,370	)	$	(804	)	$	27,675		$	164,555

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2012

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,375,732		$	492,074		$	26,478		$	(19,980	)	$	1,874,304
Cost and expenses:
Cost of sales	(1,149,413		)	(454,383		)	(24,056		)	19,980			(1,607,872		)
Selling, general and administrative expenses	(96,668		)	(22,268		)	(2,109		)	—			(121,045		)
Total operating costs and expenses	(1,246,081		)	(476,651		)	(26,165		)	19,980			(1,728,917		)
Income from operations	129,651			15,423			313			—			145,387
Interest expense, net	(33,796		)	—			—			—			(33,796		)
Earnings before income taxes	95,855			15,423			313			—			111,591
Income tax provision	(42,440		)	(14,362		)	(35		)	9,377			(47,460		)
Equity in income of subsidiary	1,339			278			—			(1,617		)	—
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Other comprehensive loss, net of tax	(428		)	—			—			—			(428		)
Comprehensive income	$	54,326		$	1,339		$	278		$	7,760		$	63,703

72

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2011

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,464,570		$	508,341		$	32,977		$	(77,915	)	$	1,927,973
Cost and expenses:
Cost of sales	(1,256,507		)	(493,338		)	(30,600		)	77,915			(1,702,530		)
Selling, general and administrative expenses	(61,794		)	(44,481		)	(3,723		)	—			(109,998		)
Total operating costs and expenses	(1,318,301		)	(537,819		)	(34,323		)	77,915			(1,812,528		)
Income (loss) from operations	146,269			(29,478		)	(1,346		)	—			115,445
Interest expense, net	(44,187		)	(622		)	—			—			(44,809		)
Other, net	(215		)	388			111			—			284
Earnings (loss) before income taxes	101,867			(29,712		)	(1,235		)	—			70,920
Income tax (provision) benefit	(34,018		)	1,857			(2,452		)	3,367			(31,246		)
Equity in income of subsidiary	(31,542		)	(3,687		)	—			35,229			—
Net earnings	$	36,307		$	(31,542	)	$	(3,687	)	$	38,596		$	39,674
Other comprehensive loss, net of tax	(16,913		)	—			—			—			(16,913		)
Comprehensive income	$	19,394		$	(31,542	)	$	(3,687	)	$	38,596		$	22,761

73

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	18,273		$	—		$	5,402		$	—		$	23,675
Restricted cash	1,500			—			—			—			1,500
Short-term investments	70,000			—			—			—			70,000
Receivables, net	119,278			38,063			2,700			(1,167		)	158,874
Taxes receivable	3,709			(15,882		)	324			22,352			10,503
Inventories	198,476			65,017			4,295			—			267,788
Deferred tax assets	42,289			6,094			5			(10,850		)	37,538
Prepaid expenses	4,704			695			124			—			5,523
Total current assets	458,229			93,987			12,850			10,335			575,401
Property, plant and equipment, net	636,662			231,225			16,811			—			884,698
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			39,619			1,159			—			40,778
Intercompany receivable (payable)	91,865			(63,932		)	(16,431		)	(11,502		)	—
Investment in subsidiary	196,763			5,575			—			(202,338		)	—
Pension assets	4,488			—			—			—			4,488
Other assets, net	8,772			1,155			—			—			9,927
TOTAL ASSETS	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	140,125		$	45,736		$	5,954		$	(1,167	)	$	190,648
Current liability for pensions and   other postretirement employee   benefits	8,778			—			—						8,778
Total current liabilities	148,903			45,736			5,954			(1,167		)	199,426
Long-term debt	650,000			—			—			—			650,000
Liability for pensions and other   postretirement employee benefits	109,807			—			—			—			109,807
Other long-term obligations	51,740			1,202			—			—			52,942
Accrued taxes	1,430			911			317			—			2,658
Deferred tax liabilities	59,338			63,017			2,543			—			124,898
Accumulated other comprehensive loss,   net of tax	(58,093		)	—			—			—			(58,093		)
Stockholders’ equity excluding   accumulated other comprehensive loss	663,187			196,763			5,575			(202,338		)	663,187
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825

74

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	11,105		$	5		$	1,469		$	—		$	12,579
Short-term investments	20,000			—			—			—			20,000
Receivables, net	109,129			41,431			5,612			(2,029		)	154,143
Taxes receivable	20,712			116			—			—			20,828
Inventories	163,422			63,476			4,568			—			231,466
Deferred tax assets	11,750			4,595			—			791			17,136
Prepaid expenses	11,441			708			165			—			12,314
Total current assets	347,559			110,331			11,814			(1,238		)	468,466
Property, plant and equipment, net	618,076			242,818			16,483			—			877,377
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			46,379			1,374			—			47,753
Intercompany receivable (payable)	108,530			(91,881		)	(15,858		)	(791		)	—
Investment in subsidiary	209,431			6,204			—			(215,635		)	—
Other assets, net	9,948			379			—			—			10,327
TOTAL ASSETS	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	132,360		$	30,630		$	4,635		$	(2,029	)	$	165,596
Current liability for pensions and   other postretirement employee   benefits	9,137			—			—			—			9,137
Total current liabilities	141,497			30,630			4,635			(2,029		)	174,733
Long-term debt	523,933			—			—			—			523,933
Liability for pensions and other   postretirement employee benefits	204,163			—			—			—			204,163
Other long-term obligations	49,102			1,808			—			—			50,910
Accrued taxes	76,617			1,771			311			—			78,699
Deferred tax liabilities (assets)	(13,129		)	70,590			2,663			—			60,124
Accumulated other comprehensive loss,   net of tax	(115,693		)	—			—			—			(115,693		)
Stockholders’ equity excluding   accumulated other comprehensive loss	656,587			209,431			6,204			(215,635		)	656,587
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456

75

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Adjustments to reconcile net earnings (loss)   to net cash flows from operating activities:
Depreciation and amortization	54,291			33,712			2,269			—			90,272
Non-cash adjustments to unrecognized taxes	(75,308		)	—			—			—			(75,308		)
Deferred tax provision (benefit)	3,185			(9,072		)	(125		)	11,641			5,629
Equity-based compensation expense	10,960									—			10,960
Employee benefit plans	10,131			—			—			—			10,131
Deferred issuance costs and discounts on long-term debt	4,964			—			—			—			4,964
Disposal of plant and equipment, net	201			1,291			1			—			1,493
Changes in working capital, net	(31,256		)	11,747			4,487			—			(15,022		)
Change in taxes receivable, net	17,003			15,998			(324		)	(22,352		)	10,325
Change in non-current accrued taxes, net	1,423			(860		)	6			—			569
Funding of qualified pension plans	(15,050		)	—			—			—			(15,050		)
Change in restricted cash	—			(32		)	—			—			(32		)
Other, net	(452		)	923			—			—			471
Net cash flows from operating activities	75,546			38,337			5,510			16,964			136,357
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	(50,000		)	—			—			—			(50,000		)
Additions to plant and equipment	(65,708		)	(22,562		)	(2,323		)	—			(90,593		)
Net cash flows from investing activities	(115,708		)	(22,562		)	(2,323		)	—			(140,593		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Proceeds from long-term debt	275,000			—			—			—			275,000
Repayment of long-term debt	(150,000		)	—			—			—			(150,000		)
Purchase of treasury stock	(100,000		)	—			—			—			(100,000		)
Investment from (to) parent	31,998			(15,780		)	746			(16,964		)	—
Payment for long-term debt issuance costs	(4,837		)	—			—			—			(4,837		)
Payment of tax withholdings on equity-   based payment arrangements	(4,831		)	—			—			—			(4,831		)
Net cash flows from financing activities	47,330			(15,780		)	746			(16,964		)	15,332
Increase (decrease) in cash	7,168			(5		)	3,933			—			11,096
Cash at beginning of period	11,105			5			1,469			—			12,579
Cash at end of period	$	18,273		$	—		$	5,402		$	—		$	23,675

76

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Adjustments to reconcile net earnings to net   cash flows from operating activities:
Depreciation and amortization	48,191			29,030			2,112			—			79,333
Non-cash adjustments to unrecognized taxes	3,275			—			—			—			3,275
Deferred tax provision (benefit)	9,840			4,009			(188		)	(791		)	12,870
Equity-based compensation expense	9,703			—			—			—			9,703
Employee benefit plans	9,366			—			—			—			9,366
Deferred issuance costs and discounts on   long-term debt	2,010			—			—			—			2,010
Disposal of plant and equipment, net	622			1,381			—			—			2,003
Changes in working capital, net	25,252			36,596			(567		)	—			61,281
Change in taxes receivable, net	(11,755		)	593			334			—			(10,828		)
Excess tax benefits from equity-based payment   arrangements	(15,837		)	—			—			—			(15,837		)
Change in non-current accrued taxes, net	(242		)	22			1,180			—			960
Funding of qualified pension plans	(20,627		)	—			—			—			(20,627		)
Change in restricted cash	769			—			—			—			769
Other, net	548			(264		)	—			—			284
Net cash flows from operating activities	115,869			72,706			3,149			6,969			198,693
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	35,001			—			—			—			35,001
Additions to plant and equipment	(190,296		)	(11,632		)	(1,848		)	—			(203,776		)
Cash paid for acquisitions, net of cash acquired	(9,264		)	—			—			—			(9,264		)
Proceeds from the sale of assets	—			1,035			—			—			1,035
Net cash flows from investing activities	(164,559		)	(10,597		)	(1,848		)	—			(177,004		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Purchase of treasury stock	(18,650		)	—			—			—			(18,650		)
Investment from (to) parent	75,198			(66,463		)	(1,766		)	(6,969		)	—
Payment for long-term debt issuance costs	(2		)	—			—			—			(2		)
Payment of tax withholdings on equity-based   payment arrangements	(13,234		)	—			—			—			(13,234		)
Excess tax benefits from equity-based payment   arrangements	15,837			—			—			—			15,837
Other, net	(1,500		)	—			—			—			(1,500		)
Net cash flows from financing activities	57,649			(66,463		)	(1,766		)	(6,969		)	(17,549		)
Increase (decrease) in cash	8,959			(4,354		)	(465		)	—			4,140
Cash at beginning of period	2,146			4,359			1,934			—			8,439
Cash at end of period	$	11,105		$	5		$	1,469		$	—		$	12,579

77

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2011

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings	$	36,307		$	(31,542	)	$	(3,687	)	$	38,596		$	39,674
Adjustments to reconcile net earnings to net   cash flows from operating activities:
Depreciation and amortization	45,439			29,364			2,130			—			76,933
Deferred tax provision (benefit)	(2,394		)	24,466			(2,815		)	(4,480		)	14,777
Equity-based compensation expense	8,134			—			—			—			8,134
Employee benefit plans	16,897			—			—			—			16,897
Deferred issuance costs and discounts on   long-term debt	215			—			—			—			215
Disposal of plant and equipment, net	324			672			2			—			998
Changes in working capital, net	(133,142		)	45,400			1,730			—			(86,012		)
Change in taxes receivable, net	(4,685		)	1,939			(217		)	3,317			354
Excess tax benefits from equity-based payment   arrangements	(885		)	—			—			—			(885		)
Change in non-current accrued taxes, net	2,453			—			—			—			2,453
Funding of qualified pension plans	(12,498		)	—			—			—			(12,498		)
Change in restricted cash	4,160			—			—			—			4,160
Other, net	3,195			—			—			—			3,195
Net cash flows from operating activities	(36,480		)	70,299			(2,857		)	37,433			68,395
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	71,094			—			—			—			71,094
Additions to plant and equipment	(117,525		)	(16,088		)	(456		)	—			(134,069		)
Proceeds from the sale of assets	12,826			—			—			—			12,826
Net cash flows from investing activities	(33,605		)	(16,088		)	(456		)	—			(50,149		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Repayment of long-term debt	—			(15,595		)	—			—			(15,595		)
Purchase of treasury stock	(11,350		)	—			—			—			(11,350		)
Investment from (to) parent	70,013			(36,432		)	3,852			(37,433		)	—
Payment for long-term debt issuance costs	(638		)	—			—			—			(638		)
Payment of tax withholdings on equity-based   payment arrangements	(2,400		)	—			—			—			(2,400		)
Excess tax benefits from equity-based payment   arrangements	885			—			—			—			885
Other, net	2			—			—			—			2
Net cash flows from financing activities	56,512			(52,027		)	3,852			(37,433		)	(29,096		)
Effect of exchange rate changes	—			—			361			—			361
Increase (decrease) in cash	(13,573		)	2,184			900			—			(10,489		)
Cash at beginning of period	15,719			2,175			1,034			—			18,928
Cash at end of period	$	2,146		$	4,359		$	1,934		$	—		$	8,439

78

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

Clearwater Paper Corporation:

We have audited the accompanying consolidated balance sheets of Clearwater Paper Corporation and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, cash flows, and stockholders’ equity for each of the years in the three-year period ended December 31, 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Clearwater Paper Corporation and subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Clearwater Paper Corporation’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control-Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 19, 2014 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ KPMG LLP

Seattle, Washington

February 19, 2014

79

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

Clearwater Paper Corporation:

We have audited Clearwater Paper Corporation’s internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control-Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Clearwater Paper Corporation’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Internal Control Over Financial Reporting in Item 9A. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Clearwater Paper Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control-Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Clearwater Paper Corporation and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, cash flows, and stockholders’ equity for each of the years in the three-year period ended December 31, 2013, and our report dated February 19, 2014 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG LLP

Seattle, Washington

February 19, 2014

80

ITEM 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

ITEM 9A.

Controls and Procedures

Evaluation of Controls and Procedures

We maintain "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, or the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, or CEO, and Chief Financial Officer, or CFO, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of disclosure controls and procedures is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Subject to the limitations noted above, our management, with the participation of our CEO and CFO, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the fiscal year covered by this annual report on Form 10-K. Based on that evaluation, the CEO and CFO have concluded that, as of such date, our disclosure controls and procedures are effective to meet the objective for which they were designed and operate at the reasonable assurance level.

Changes in Internal Controls

There was no change in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) of the Exchange Act).

Under the supervision of and with the participation of our CEO and our CFO, our management conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework and criteria established in the Internal Control — Integrated Framework (1992), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management has concluded that as of December 31, 2013 our internal control over financial reporting was effective. The effectiveness of our internal control over financial reporting as of December 31, 2013 has been audited by KPMG LLP, our independent registered public accounting firm, as stated in its report which is included in this Annual Report on Form 10-K.

ITEM 9B.

Other Information

None.

81

Part III

ITEM 10.

Directors, Executive Officers and Corporate Governance

Information regarding our directors is set forth under the heading “Board of Directors” in our definitive proxy statement, to be filed on or about March 24, 2014, for the 2014 annual meeting of stockholders, referred to in this report as the 2014 Proxy Statement, which information is incorporated herein by reference. Information concerning Executive Officers is included in Part I of this report in Item 1. Information regarding reporting compliance with Section 16(a) for directors, officers or other parties is set forth under the heading “Section 16(a) Beneficial Ownership Reporting Compliance” in the 2014 Proxy Statement and is incorporated herein by reference.

We have adopted a Code of Business Conduct and Ethics that applies to all directors and employees and a Code of Ethics for Senior Financial Officers that applies to our CEO, CFO, the President, the Controller and other Senior Financial Officers identified by our Board of Directors. You can find each code on our website by going to the following address: www.clearwaterpaper.com, selecting “Investor Relations” and “Corporate Governance,” then selecting the link for “Code of Business Conduct and Ethics" or "Code of Ethics for Senior Financial Officers.” We will post any amendments, as well as any waivers that are required to be disclosed by the rules of either the SEC or the New York Stock Exchange, on our website. To date, no waivers of the Code of Business Conduct and Ethics or the Code of Ethics for Senior Financial Officers have been considered or granted.

Our Board of Directors has adopted corporate governance guidelines and charters for the Board of Directors’ Audit Committee, Compensation Committee, and Nominating and Governance Committee. You can find these documents on our website by going to the following address: www.clearwaterpaper.com, selecting “Investor Relations” and “Corporate Governance,” then selecting the appropriate link.

The Audit Committee of our Board of Directors is an “audit committee” for purposes of Section 3(a)(58) of the Exchange Act. As of December 31, 2013, the members of that committee were Boh A. Dickey (Chair), Beth E. Ford, William D. Larsson and William T. Weyerhaeuser. The Board of Directors has determined that Messrs. Dickey and Larsson are each an “audit committee financial expert” and that all of the members of the Audit Committee are “independent” as defined under the applicable rules and regulations of the SEC and the listing standards of the New York Stock Exchange.

ITEM 11.

Executive Compensation

Information required by Item 11 of Part III is included under the heading “Executive Compensation Discussion and Analysis” in our 2014 Proxy Statement, to be filed on or about March 24, 2014, relating to our 2014 Annual Meeting of Shareholders and is incorporated herein by reference.

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ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information required by Item 12 of Part III is included in our 2014 Proxy Statement, to be filed on or about March 24, 2014, relating to our 2014 Annual Meeting of Shareholders and is incorporated herein by reference.

The following table provides certain information as of December 31, 2013, with respect to our equity compensation plans:

Plan Category	Number Of Securities To Be Issued Upon Exercise Of Outstanding Options, Warrants And Rights1	Weighted Average Exercise Price Of Outstanding Options, Warrants And Rights2	Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans
Equity compensation plans approved by   security holders	809,597	—	1,883,730
Equity compensation plans not   approved by security holders	—	—	—
Total	809,597	—	1,883,730

¹ Includes 736,414 performance shares and 73,183 restricted stock units, or RSUs, which are the maximum number of shares that could be awarded under the performance share and RSU programs, not including future dividend equivalents, if any are paid.

² Performance shares and RSUs do not have exercise prices and therefore are not included in the weighted average exercise price calculation.

ITEM 13.

Certain Relationships and Related Transactions, and Director Independence

Information required by Item 13 of Part III is included under the heading “Transactions with Related Persons” in our 2014 Proxy Statement, to be filed on or about March 24, 2014, relating to our 2014 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 14.

Principal Accounting Fees and Services

Information required by Item 14 of Part III is included under the heading “Fees Paid to Independent Registered Public Accounting Firm” in our 2014 Proxy Statement, to be filed on or about March 24, 2014, relating to our 2014 Annual Meeting of Shareholders and is incorporated herein by reference.

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PART IV

ITEM 15.

Exhibits, Financial Statement Schedules

FINANCIAL STATEMENTS

Our consolidated financial statements are listed in the Index to Consolidated Financial Statements on page 40 of this report.

FINANCIAL STATEMENT SCHEDULES

All schedules have been omitted because the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements, including the notes thereto.

EXHIBITS

Exhibits are listed in the Exhibit Index on pages 86-90 of this report.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CLEARWATER PAPER CORPORATION
	(Registrant)
By	/S/    Linda K. Massman
	Linda K. Massman President, Chief Executive Officer and Director (Principal Executive Officer)

Date: February 19, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

			Date
By	/S/    Linda K. Massman	President, Chief Executive Officer and Director (Principal Executive Officer)	February 19, 2014
	Linda K. Massman
By	/S/    John D. Hertz	Senior Vice President, Finance and Chief Financial Officer (Duly Authorized Officer; Principal Financial Officer)	February 19, 2014
	John D. Hertz
By	/S/    Johnathan D. Hunter	Vice President, Corporate Controller (Duly Authorized Officer; Principal Accounting Officer)	February 19, 2014
	Johnathan D. Hunter
	* Boh A. Dickey	Director and Chair of the Board	February 19, 2014
	* Frederic W. Corrigan	Director	February 19, 2014
	* Beth E. Ford	Director	February 19, 2014
	* Kevin J. Hunt	Director	February 19, 2014
	* William D. Larsson	Director	February 19, 2014
	* Michael T. Riordan	Director	February 19, 2014
	* William T. Weyerhaeuser	Director	February 19, 2014

*By	/S/    Michael S. Gadd
	Michael S. Gadd (Attorney-in-fact)

Exhibit Index

EXHIBIT NUMBER	DESCRIPTION
2.1*	Separation and Distribution Agreement, dated December 15, 2008, between Clearwater Paper Corporation (the “Company”) and Potlatch Corporation (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) on December 18, 2008).
2.2*	Agreement and Plan of Merger, dated as of September 15, 2010, by and among the Company, Cellu Tissue Holdings, Inc., and Sand Dollar Acquisition Corporation (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Commission on September 21, 2010).
3.1*	Restated Certificate of Incorporation of the Company, effective as of December 16, 2008, as filed with the Secretary of State of the State of Delaware (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission on December 18, 2008).
3.2*	Amended and Restated Bylaws of the Company, effective as of December 16, 2008 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed with the Commission on December 18, 2008).
4.1*	Indenture, dated as of October 22, 2010, between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Company with the Commission on October 27, 2010).
4.2*	Form of 7 1/8% Senior Notes due 2018 (incorporated by reference to Exhibit A to the Indenture filed as Exhibit 4.1 to the Current Report on Form 8-K filed by the Company with the Commission on October 27, 2010).
4.3*	Indenture, dated as of January 23, 2013, by and among Clearwater Paper Corporation (the “Registrant”), the Guarantors (as defined therein) and U.S. Bank National Association, as trustee, (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the Commission on January 24, 2013).
4.4*	Form of 4.500% Senior Notes due 2023 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the Commission on January 24, 2013).
4.5*	Registration Rights Agreement, dated as of January 23, 2013, by and among the Registrant, the Guarantors (as defined therein), Goldman Sachs & Co. and Merrill Lynch, Pierce Fenner & Smith Incorporated, as the initial purchasers, (incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed with the Commission on January 24, 2013).
10.1*	Employee Matters Agreement, dated December 15, 2008, between the Company and Potlatch Corporation (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2010).
10.2*	Tax Sharing Agreement, dated December 15, 2008, among the Company, Potlatch Corporation, Potlatch Forest Holdings, Inc. and Potlatch Land & Lumber, LLC (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Commission on December 18, 2008).

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10.3*	Loan and Security Agreement, dated as of November 26, 2008, by and among the Company and Bank of America, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on December 3, 2008).
10.3(i)*	First Amendment to Loan and Security Agreement, dated as of September 15, 2010, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on September 21, 2010).
10.3(ii)*	Second Amendment to Loan and Security Agreement, dated as of October 22, 2010, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on October 27, 2010).
10.3(iii)*	Third Amendment to Loan and Security Agreement, dated as of February 7, 2011, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.3(iii) to the Company’s Annual Report on Form 10-K filed with the Commission on March 11, 2011).
10.3(iv)*	Fourth Amendment to Loan and Security Agreement, dated as of March 2, 2011, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.3(iv) to the Company’s Annual Report on Form 10-K filed with the Commission on March 11, 2011).
10.3(v)*	Fifth Amendment to Loan and Security Agreement, dated as of August 17, 2011, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2011).
10.3(vi)*	Sixth Amendment to Loan and Security Agreement, dated as of September 28, 2011, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on September 30, 2011).
10.3(vii)*	Seventh Amendment to Loan and Security Agreement, dated as of September 27, 2012, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.3(vii) to the Company's Annual Report on Form 10-K filed with the Commission on February 25, 2013).
10.3(viii)*	Eighth Amendment to Loan and Security Agreement, dated as of January 17, 2013, by and among the financial institutions signatory thereto, Bank of America, N.A. and the Company (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on January 24, 2013).
10.4*1	Form of Indemnification Agreement entered into between the Company and each of its directors and executive officers (incorporated by reference to Exhibit 10.15 to Amendment No. 4 to the Company’s Registration Statement on Form 10 filed with the Commission on November 19, 2008).
10.5*1	Employment Agreement between Linda K. Massman and the Company, dated effective January 1, 2013 (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K filed with the Commission on February 25, 2013).
10.5(i)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan-Restricted Stock Unit Agreement, dated as of January 1, 2013, with Linda K. Massman (incorporated by reference to Exhibit 10.7(i) to the Company's Annual Report on Form 10-K filed with the Commission on February 25, 2013).

87

10.6*1	Clearwater Paper Corporation 2008 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on December 19, 2008).
10.6(i)*1	Amendment No. 1 to Clearwater Paper Corporation 2008 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on December 28, 2010).
10.6(ii)*1	Amendment No. 2 to Clearwater Paper Corporation 2008 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2011).
10.7*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Performance Share Agreement, as amended and restated December 1, 2009, to be used for annual performance share awards approved subsequent to December 31, 2009 (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2010).
10.7(i)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Performance Share Agreement, to be used for annual performance share awards approved subsequent to December 31, 2011 (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed with the Commission December 14, 2011).
10.8*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on December 19, 2008).
10.8(i)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Restricted Stock Unit Agreement, as amended and restated May 12, 2009, to be used for restricted stock unit awards approved subsequent to May 12, 2009 (incorporated by reference to Exhibit 10.12(i) to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended June 30, 2009).
10.8(ii)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Restricted Stock Unit Agreement, as amended and restated December 1, 2009, to be used for annual restricted stock unit awards approved subsequent to December 31, 2009, (incorporated by reference to Exhibit 10.12(ii) to the Company's Current Report on Form 8-K filed with the Commission on December 4, 2009).
10.8(iii)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of RSU Deferral Agreement for Annual LTIP and Founders Grant RSUs (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on December 14, 2011).
10.8(iv)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of RSU Deferral Agreement for Founders Grant RSUs (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Commission on December 14, 2011).
10.8(v)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Restricted Stock Unit Award, to be used for annual restricted stock unit awards approved subsequent to December 31, 2011 (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the Commission on December 14, 2011).
10.8(vi)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan-Form of Restricted Stock Unit Award, to be used for special restricted stock unit awards (incorporated by reference to Exhibit 10.10(vii) to the Company's Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2012).
10.8(vii)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan-Form of RSU Deferral Agreement for Annual LTIP RSUs (incorporated by reference to Exhibit 10.10(viii) to the Company's Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2012).

88

10.9*1	Clearwater Paper Corporation 2008 Stock Incentive Plan—Form of Stock Option Agreement (incorporated by reference to Exhibit 10.13(i) to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended June 30, 2009).
10.10*1	Clearwater Paper Corporation Annual Incentive Plan (incorporated by reference to Exhibit 10.14(i) to the Company’s Current Report on Form 8-K filed with the Commission on May 14, 2010).
10.11*1	Amended and Restated Clearwater Paper Corporation Management Deferred Compensation Plan (incorporated by reference to Exhibit 10.15(i) to the Company’s Quarterly Report on Form 10-Q filed with the Commission for the quarter ended March 31, 2010).
10.11(i)1	Amendment to Clearwater Paper Corporation Management Deferred Compensation Plan, dated December 17, 2013.
10.121	Clearwater Paper Executive Severance Plan.
10.13*1	Amended and Restated Clearwater Paper Corporation Salaried Supplemental Benefit Plan (incorporated by reference to Exhibit 10.15 to the Company's Annual Report on Form 10-K filed with the Commission for the year ended December 31, 2011).
10.13(i)1	Amendment to Clearwater Paper Corporation Salaried Supplemental Benefit Plan, dated December 17, 2013.
10.14*1	Clearwater Paper Corporation Benefits Protection Trust Agreement (incorporated by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K filed with the Commission for the year ended December 31, 2008).
10.14(i)*1	Amendment to the Clearwater Paper Corporation Benefits Protection Agreement, dated August 8, 2013 (incorporated by reference to Exhibit 10.16(i) to the Company's Quarterly Report on Form 10-Q filed with the Commission for the quarter ended September 30, 2013).
10.15*1	Clearwater Paper Corporation Deferred Compensation Plan for Directors (incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K filed with the Commission on December 19, 2008).
10.161	Clearwater Paper Change of Control Plan.
10.17*1	Offer Letter, dated June 25, 2012, with John D. Hertz, (incorporated by reference to Exhibit 10.10(vi) to the Company's Quarterly Report on Form 10-Q filed with the Commission for the quarter ended June 30, 2012).
10.17(i)*1	Clearwater Paper Corporation 2008 Stock Incentive Plan-Restricted Stock Unit Award, dated July 3, 2012, with John D. Hertz (incorporated by reference to Exhibit 10.18 to the Company's Quarterly Report on Form 10-Q filed with the Commission for the quarter ended June 30, 2012).
(12)	Computation of Ratio of Earnings to Fixed Charges.
(21)	Clearwater Paper Corporation Subsidiaries.
(23)	Consent of Independent Registered Public Accounting Firm.
(24)	Powers of Attorney.

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(31)	Rule 13a-14(a)/15d-14(a) Certifications.
(32)	Furnished statements of the Chief Executive Officer and Chief Financial Officer under 18 U.S.C. Section 1350.
101	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, is formatted in XBRL interactive data files: (i) Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011; (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2013, 2012 and 2011; (iii) Consolidated Balance Sheets at December 31, 2013 and 2012, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011, (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2013, 2012 and 2011 and (vi) Notes to Consolidated Financial Statements.

* Incorporated by reference.

1 Management contract or compensatory plan, contract or arrangement.

90

EX-10.11(I)

Exhibit 10.11(i)

AMENDMENT TO THE
CLEARWATER PAPER CORPORATION
MANAGEMENT DEFERRED COMPENSATION PLAN

The Clearwater Paper Corporation Management Deferred Compensation Plan, as amended and restated as of January 1, 2010 (the “Plan”) is hereby further amended by revising Sections 5(b), (c) and (d) of the Plan to read as follows, effective as of December 1, 2013:

“(b) At the time of an Employee’s initial election to defer base salary or an award under the AIP, the Employee shall file an election which shall indicate whether the deferred Compensation shall be paid in a lump sum or paid in annual installments over a period of fifteen (15) or fewer years. Installment payments under the Plan shall be treated as a single distribution for purposes of Section 409A of the Code. An Employee who elects to participate in the Plan for Plan Years beginning prior to January 1, 2014 shall have only one form of payment election in effect for all amounts deferred under the Plan in such Plan Years. Prior to each Plan Year beginning on or after January 1, 2014, an Employee who elects to participate in the Plan for such Plan Year shall be permitted to make a separate form of payment election for amounts to be deferred in such Plan Year, provided that an Employee’s form of payment election in effect for any Plan Year shall remain in effect for amounts deferred in each subsequent Plan Year unless and until the Employee makes a new form of payment election in the manner prescribed by the Committee. Deferred Compensation shall be distributed in a single lump sum payment unless the Employee elects otherwise.

(c) Each Employee election as to the form of payment of deferred Compensation shall be irrevocable and binding on all Compensation deferred under the Plan while the election is in effect, as adjusted for any earnings or losses pursuant to the Plan.

(d) If an Employee has a payment election in effect in connection with amounts previously deferred under this Plan or under the MPAP, MPAP II or the Potlatch Corporation Management Deferred Compensation Plan (provided the obligations related to such deferred amounts were assumed by this Plan), such existing payment election shall remain in effect for all existing and future deferrals under the Plan unless modified (with respect to future deferrals) in accordance with Section 5(b) above.”

Date: 12/17/13                CLEARWATER PAPER CORPORATION

By: /s/ Jackson Lynch

Name: Jackson O. Lynch III

Title:    Senior Vice President, Human Resources

EX-10.12

Exhibit 10.12

Clearwater Paper

Executive Severance Plan

And

Summary Plan Description

The information contained in this Executive Severance Plan and Summary Plan Description (SPD) is effective as of the date at the bottom of this page. To ensure that you have the most up-to-date benefit plan information, be sure to review this Plan and SPD in combination with more recent communications to eligible employees.

January 1, 2014

1

TABLE OF CONTENTS

Section 1.Eligibility to Participate    4

Section 2.Eligibility for Severance Payments and Benefits    4

Section 3.Severance Payments and Benefits    7

Section 4.Amendment and Plan Termination    12

Section 5.Miscellaneous    12

Section 6.Administrative Information About Your Plan    17

Section 7.Your Rights and Privileges Under ERISA    18

Section 8.Other Administrative Facts    20

2

PURPOSE

The Compensation Committee of the Board of Directors of Clearwater Paper (“Clearwater Paper”) has adopted this Clearwater Paper Executive Severance Plan (the “Plan”) for eligible executives of Clearwater Paper and its participating subsidiaries and affiliates (Clearwater Paper and its participating subsidiaries and affiliates are sometimes referred to in this Plan as “Participating Companies”). This Plan, together with the Clearwater Paper Change of Control Plan (the “Change of Control Plan”), amends and supersedes the Clearwater Paper Corporation Severance Program for Executive Employees, which program shall have no further force or effect on and after December 13, 2012.

The purpose of the Plan is to provide equitable treatment for terminated executives consistent with the values and culture of Clearwater Paper, provide financial support for executives seeking new employment, recognize executives’ contributions to the Participating Companies, and avoid or mitigate the Participating Companies’ potential exposure to litigation. Clearwater Paper further believes that the Plan will aid all of the Participating Companies in attracting and retaining highly qualified executives who are essential to their success.

Upon the occurrence of a “Change of Control” as defined in the Change of Control Plan, the Change of Control Plan (and not this Plan) shall govern with respect to terminations of employment with the Participating Companies occurring during the two (2) year period commencing of the date of such Change of Control.

3

Section 1. Eligibility to Participate

Except as provided in the following paragraph, you are eligible to participate in the Plan if you are either (1) Clearwater Paper’s president, chief executive officer, chief financial officer, corporate secretary, treasurer or controller, (2) an officer of a Participating Company appointed to that position by Clearwater Paper’s Board of Directors, or (3) an executive of Clearwater Paper or another Participating Company who has been designated by the Compensation Committee of Clearwater Paper’s Board of Directors (the “Compensation Committee”) as eligible to participate in this Plan.

Notwithstanding anything contained herein, you are not eligible to participate in the Plan and are excluded from coverage under the Plan if you are:

• a party to an individual arrangement or a written employment agreement with Clearwater Paper or another Participating Company containing a severance provision other than pursuant to the Plan or the Change of Control Plan; or

• covered by a local practice outside the United States that provides for severance payments and/or benefits in connection with a voluntary or involuntary termination of employment that are greater than the severance payments and/or benefits set forth herein.

Section 2. Eligibility for Severance Payments and Benefits

Right to Severance Payments and Benefits

You will be eligible to receive the severance payments and benefits provided by this Plan if your employment by Clearwater Paper or another Participating Company is terminated for any one or more of the following reasons:

(a) Involuntary termination by your Participating Company other than for Cause (as defined below).

(b) You voluntarily terminate your employment after the occurrence of any event constituting Good Reason (as defined below).

To qualify for severance payments and benefits under the Plan upon voluntary termination for Good Reason, you must notify your Participating Company in writing of termination for Good Reason specifying the event constituting Good Reason within ninety (90) calendar days after the event. Failure for any reason to give written notice of termination of employment for Good Reason shall be deemed a waiver of the right to voluntarily terminate employment and claim Good Reason under this Plan in relation to such event. The Participating Company shall have a period of thirty (30) calendar days in which to cure the Good Reason (the “Cure Period”). If the Good Reason is cured within the Cure Period, you will not be entitled to severance payments and benefits hereunder. If the Participating Company waives its right to cure or does not, within the Cure Period, cure the Good Reason, you shall be entitled to severance payments and benefits and your actual termination date shall be determined in the sole discretion of the Participating Company but in no event later

4

than thirty (30) calendar days from the date the Participating Company waives its right to cure or the end of the Cure Period, whichever is earlier.

Ineligibility for Severance Payments and Benefits

Notwithstanding any provision of the Plan, you shall not be eligible for severance payments and benefits under this Plan if your termination of employment occurs by reason of any of the following:

• voluntary termination other than for Good Reason, including early retirement;

• mandatory retirement from employment in accordance with your Participating Company’s policy or statutory requirements;

• death;

• Disability;

• for Cause;

• refusal, rejecting or declining to accept a transfer to a position with Clearwater Paper or another Participating Company, as applicable (for which you are qualified as determined by the Participating Company by reason of knowledge, training, and experience), provided the transfer would not constitute Good Reason for a voluntary termination;

• the sale of part of Clearwater Paper’s or another Participating Company’s business assets, or a spin-off of a division (or other operating assets) of Clearwater Paper or another Participating Company, if you are offered employment by the acquirer of such assets or such other spun-off entity prior to or within four (4) weeks after the date your employment with the Participating Company terminates, regardless of whether you accept the offer, provided that the terms and conditions of employment offered to you would not constitute Good Reason for a voluntary termination if the acquirer or spun-off entity were a Participating Company in this Plan;

• upon the formation of a joint venture or other business entity in which Clearwater Paper or another Participating Company directly or indirectly will own some outstanding voting or other ownership interest if you are offered employment by the joint venture entity or other business entity prior to or within four (4) weeks of the date your employment with the Participating Company terminates, regardless of whether you accept the offer, provided that the terms and conditions of employment offered to you would not constitute Good Reason for a voluntary termination if the joint venture entity or other business entity were a Participating Company in this Plan; or

• you are reporting to a different person.

5

Cause

“Cause” shall mean the occurrence of any one or more of the following:

(i) your conviction of any felony or any crime involving fraud, dishonesty or moral turpitude;

(ii) your participation in a fraud or act of dishonesty against Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper that results in material harm to the business of Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper;

(iii) your intentional, material violation of any contract between you and Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper, or any statutory duty you owe Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper, in either case that you do not correct within thirty (30) days after written notice thereof has been provided to you;

(iv) the commission by you of an act that could (either alone or with other acts) be considered harassment or discrimination on the basis of gender, race, age, religion, sexual orientation or other protected category; or

(v) the commission by you of an alcohol or drug offense in violation of Clearwater Paper’s or a subsidiary’s or affiliate’s Substance Abuse Policy for salaried employees.

“Cause” shall be interpreted by the Plan Administrator in its sole discretion and such interpretation shall be conclusive and binding on all parties.

Disability

“Disability” shall mean a condition pursuant to which you are

(i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or

(ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of Clearwater Paper, its subsidiaries or affiliates.

Good Reason

“Good Reason” shall mean that one or more of the following are undertaken by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper without your written consent:

(i) the assignment to you of any duties or responsibilities that results in a material diminution in your position or function; provided, however, that a change in your title or reporting relationships shall not provide the basis for a voluntary termination with Good Reason;

6

(ii) a 10% or greater reduction by your Participating Company, other than in connection with an across-the-board reduction applicable to other senior executives of the Participating Company, in your base salary and/or target bonus, and/or target long-term incentive opportunity, all as in effect immediately prior to such reduction;

(iii) a relocation of your business office to a location more than 50 miles from the location at which you perform duties, except for required travel by you on Clearwater Paper’s, its subsidiaries’ or affiliates’ or any successor to Clearwater Paper’s business; or

(iv) a material breach by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper concerning the terms and conditions of your employment.

Section 3. Severance Payments and Benefits

You are eligible to receive the Severance Payments and benefits described in this Section 3, provided you meet the eligibility criteria in Section 2.

Severance Payment

You shall receive cash Severance Payments, payable in installments, equal to three (3) weeks of your Base Pay (as defined below) for each full Year of Service (as defined below). However, your cash Severance Payments shall not be less than an amount equal to six (6) months of your Base Pay, nor more than one (1) year of your Base Pay.

The term “Severance Pay Period” used in this Plan means the number of weeks of Base Pay used to determine the amount of your Severance Payments. For example, if you would be eligible for Severance Payments equal to 52 weeks of your Base Pay, your Severance Pay Period would be 52 weeks.

“Base Pay” means your base rate of pay as in effect at the time of your termination of employment or, if greater, the rate in effect at the time your Base Pay was materially reduced giving rise to your termination for Good Reason. Your Base Pay shall be determined without reduction for salary reductions under sections 125, 132(f), 137 or 401(k) of the Internal Revenue Code. Your Base Pay shall not include overtime, bonuses, income from awards under Clearwater Paper’s 2008 Stock Incentive Plan or any successor plan, dividend equivalents, benefits-in-kind, expense reimbursements, allowances (including, but not limited to moving or car allowances) or other incentives, and any other forms of extra compensation.

Your “Years of Service” are determined based on your period of service for the Participating Companies, beginning on the first date you perform duties for which you receive compensation and ending on the date your employment terminates. The total number of days of service during this period (including holidays, vacations, weekends and certain approved leaves of absence) is divided by 365 to determine your Years of Service. Only whole Years of Service are counted; partial years are disregarded. If you previously terminated employment with the Participating Companies and were later rehired, your Years of Service will not include your prior period of employment or the

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period between your earlier termination date and your rehire date—in other words, only your most recent period of continuous employment will be counted.

Payment of the Severance Payments is contingent upon your signing a Separation Agreement containing a general release and allowing the general release to become effective (see “Separation Agreement, Including General Release and Restrictive Covenants,” below).

Nothing in this Section 3, the Plan, the Change of Control Plan, an offer letter from a Participating Company, a prevailing practice of a Participating Company, or any oral statement made by or on behalf of a Participating Company shall entitle you to receive duplicate benefits in connection with a voluntary or involuntary termination of employment. For example, you are not eligible for payments and benefits under both this Plan and the Change of Control Plan. The obligation of the Participating Companies to make payments under this Plan shall be expressly conditioned upon you not receiving duplicate payments.

Pay in Lieu of Notice Periods

The Severance Payments under the Plan shall be reduced by any cash payments to which you may be entitled under any federal, state or local plant-closing or mass layoff law (or similar or analogous) law, including, without limitation, pursuant to the U.S. Worker Adjustment and Retraining Notification Act or any state or local “pay in lieu of notice” law or regulation.

No Mitigation

You shall not be required to mitigate the amount of any payment provided for in the Plan by seeking other employment and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to you in any subsequent employment. Notwithstanding the preceding sentence, any subsidized COBRA coverage that you are entitled to receive under this Plan following your termination of employment will terminate no later than the date you begin new employment (see “Continuation of Employee Benefits” below).

Debt Owed to a Participating Company

If you owe Clearwater Paper or another Participating Company money for any reason, the Participating Company shall have the right, at its sole discretion, to offset the amount of the debt from your Severance Payments to the fullest extent permitted by law.

Separation Agreement, Including General Release and Restrictive Covenants

The obligation of the Participating Companies to pay the Severance Payments and provide you benefits continuation (see “Continuation of Employee Benefits” below), shall be and is expressly conditioned upon you timely executing a separation agreement in a form that is satisfactory to Clearwater Paper (the “Separation Agreement”) during the requisite time period and allowing such Separation Agreement to become effective.

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As to the Separation Agreement:

• It shall include but not be limited to a general release of claims against Clearwater Paper, its subsidiaries and affiliates and their respective officers, directors, employees and agents, and shall contain certain restrictive covenants and obligations on your part including, but not limited to, non-competition and non-solicitation covenants for a period following your separation date equal to the Severance Pay Period, an agreement by you not to make use of confidential or proprietary information of Clearwater Paper or its subsidiaries of affiliates, an agreement not to disparage or encourage or induce others to disparage Clearwater Paper, its subsidiaries or affiliates or their respective products for a specified period, an agreement to return Company property, and an agreement to cooperate with legal matters of Clearwater Paper and its subsidiaries and affiliates in which you might have knowledge.

• Clearwater Paper or your Participating Company will provide a form of such Separation Agreement not later than the date of your Separation from Service.

• You must sign and return the Separation Agreement within the minimum time period required by law and not revoke it during any permitted revocation period, in order for the Separation Agreement to become effective. Otherwise, you will not be eligible for, and neither Clearwater Paper nor any other Participating Company shall have any obligation to pay you, any Severance Payment.

How and When Your Benefit Is Paid

The Severance Payments will be paid in installments over your Severance Pay Period at regular intervals no less frequent than monthly.

In general, the Severance Payments, if payable, will not begin until at least eight days after you return a signed Separation Agreement (containing the general release) to Clearwater Paper or your Participating Company, but in no event later than 60 days after your effective date of termination.

If you have terminated employment and completed all of the requirements to receive Severance Payments (including signing and delivering the Separation Agreement within the minimum time period required by law and not revoking it during any permitted revocation period), but you die prior to the date such payments begin or are completed, the unpaid balance of your Severance Payments will be paid in a lump sum to your estate.

It is possible that the Severance Payments will constitute payments of deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). In that event, payments may be subject to the six-month delay rule and other limitations required to comply with Code Section 409A requirements. See “Section 409A” below.

Continuation of Employee Benefits

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During the Severance Pay Period, you are not considered an employee of Clearwater Paper or any other Participating Company for any purpose – including eligibility under any employee benefit plan. The following benefits, however, will continue to be available:

Health Care Plans

If you and your dependents are enrolled in Clearwater Paper’s or another Participating Company’s group health plan on the date your employment terminates, this coverage will terminate on that date. However, you and your enrolled eligible dependents will be offered the opportunity to elect COBRA continuation coverage and have the opportunity to receive reimbursements for a portion of the cost of that coverage:

Subsidized COBRA: If you elect COBRA continuation coverage, you will be responsible for the timely payment of all premiums charged for the COBRA coverage. However, if you sign and return the Separation Agreement in the requisite time period and allow it to become effective, Clearwater Paper or your Participating Company will reimburse you an amount equal to the amount it pays toward the cost of the same group health plan coverage for its active senior executives (this benefit will cease to be provided if you fail to timely pay the entire cost of the COBRA coverage). Clearwater Paper or your Participating Company will provide these reimbursements until the earlier of (i) the end of your Severance Pay Period or (ii) the date you begin new employment (the “Subsidized Benefits Period”).

This means that during the Subsidized Benefits Period, after receiving the reimbursements, you will in effect be paying the same amount as active employees for the same coverage rather than the standard COBRA rate. However, if under applicable law you are eligible to (and choose to) continue your COBRA coverage beyond the end of the Subsidized Benefits Period, you will then cease to receive any reimbursements and will have to bear the full cost of the standard COBRA rate.

Please note that if you do not sign and return the Separation Agreement in the requisite time period and allow it to become effective, neither you nor your eligible dependents will receive subsidized COBRA. In addition, the Participating Companies reserve the right to cease providing subsidized COBRA at any time if continuing to provide that benefit would subject the Participating Companies to excise taxes, penalties or similar charges under applicable law. Of course, in either event you and your eligible dependents would still be entitled to standard COBRA.

Standard COBRA: Standard COBRA is unsubsidized COBRA, meaning you (and your eligible dependents if they elect separately) would owe the standard COBRA rate for COBRA coverage and will not receive any reimbursements for the cost of that coverage. Standard COBRA will be offered only for the maximum period required by law, which may be shorter or longer than your Subsidized Benefits Period.

Detailed information about COBRA coverage will be mailed to your home at the time of termination.

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Life Insurance

Your current level of basic life insurance coverage will continue until the end of your Subsidized Benefits Period.

When you are terminated, if you are participating in a supplemental or dependent life insurance plan, coverage will end on your termination date. When your employment terminates, you may have the opportunity to elect to convert all or part of any terminating life insurance coverage to an individual policy with the insurer.

Employee Assistance Program (EAP)

You may continue to participate in Clearwater Paper’s or your Participating Company’s Employee Assistance Program during the Subsidized Benefits Period, as long as you remain eligible for benefits under Clearwater Paper’s or your Participating Company’s group health plan. If you elect COBRA continuation coverage, you may continue to participate in the EAP. You will receive additional information regarding participation at the time of your termination.

Outplacement

You will be eligible for outplacement services in accordance with Clearwater Paper’s or your Participating Company’s outplacement services that are in effect for executives at your level as of the date your employment ends, provided you timely sign and return the Separation Agreement (as set forth above).

Prorated AIP Award

If you participated in Clearwater Paper’s Annual Incentive Plan or any successor plan (the “AIP”) as of the date of your termination and you satisfy the requirements to receive Severance Payments under this Plan, you will be eligible to receive a prorated AIP award for the calendar year of your termination. Such AIP award will be determined under the terms of the AIP applicable to you for such year, including the performance criteria and performance targets set for such year and actual corporate and division performance for such year, provided that your AIP award will not be adjusted downward for individual performance. Your AIP award determined under the preceding sentence will be multiplied by a fraction, the numerator of which is the number of days you were employed by a Participating Company during the calendar year of your termination and the denominator of which is 365. Any AIP award to which you are entitled for your year of termination will be payable at the same time as AIP awards for such year are paid to similarly situated active employees.

Accrued Obligations

Regardless of whether the Severance Payments are payable, you will be entitled to receive payment of all of your earned but unpaid base salary through the date of your termination, any bonus earned under the terms of the AIP or other governing plan but remaining unpaid for any previously completed performance cycle, any earned but unused vacation, and any employee benefits earned but not yet provided under the terms of any applicable plan or program.

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Other Benefits

Accrued and unused vacation days, annual and long-term incentive awards, vesting and exercising of awards under the 2008 Stock Incentive Plan or any successor plan, and any other bonus or incentive payments will be determined in accordance with the applicable Participating Company plans, programs and/or policies, except as specifically provided above under “Prorated AIP Award.”

Except as specifically provided above under “Continuation of Employee Benefits,” all benefit coverage, and eligibility to participate in Clearwater Paper’s and other Participating Companies’ plans, will end as of your termination date. These benefits include, but are not limited to:

• contributions to a Dependent Care Reimbursement Account;

• contributions to and earning service for vesting under Clearwater Paper’s 401(k) Plan;

• earning additional service for vesting under Clearwater Paper’s Salaried Retirement Plan (if applicable); and

• participation in Clearwater Paper’s or your Participating Company’s disability plans.

Section 4. Amendment and Plan Termination

Clearwater Paper reserves the right to terminate or amend, in whole or in part, the Plan at any time in its sole discretion by resolution adopted by the Compensation Committee. Clearwater Paper reserves the right to implement changes even if they have not been reprinted or substituted in this document.

The Senior Vice President, Human Resources or Senior Vice President, General Counsel of Clearwater Paper (or, in the event of a title change in such position, the most senior person in Clearwater Paper’s legal or human resources department, respectively) shall have the power and authority to amend the Plan with respect to any amendment that (i) does not increase the benefits under the Plan or (ii) is required to comply with new or changed legal requirements applicable to the Plan, including but not limited to Code Section 409A.

Section 5. Miscellaneous

Employment Status

The Plan does not constitute a contract of employment and nothing in the Plan provides or may be construed to provide that participation in the Plan is a guarantee of continued employment with Clearwater Paper, any other Participating Company or any of their respective subsidiaries or affiliates.

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Withholding of Taxes

Clearwater Paper or your Participating Company shall withhold from any amounts payable under the Plan all federal, state, local or other taxes that are legally required to be withheld.

No Effect on Other Benefits

Neither the provisions of this Plan nor the Severance Payments and benefits provided for hereunder shall reduce any amounts otherwise payable to you under any incentive, retirement, stock incentive, group insurance or other benefit plan.

Validity and Severability

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Unfunded Obligation

All severance payments and benefits under the Plan shall constitute unfunded obligations of the Participating Companies. Severance payments shall be made, as due, from the general funds of the Participating Companies. The Plan shall constitute solely an unsecured promise by the Participating Companies to provide such benefits to you to the extent provided herein. For avoidance of doubt, any health benefits to which you may be entitled under the Plan shall be provided under other applicable employee benefit plans of Clearwater Paper or your Participating Company.

Type of Plan and Governing Law

This Plan is designed to qualify as a severance pay arrangement within the meaning of Section 3(2)(B)(i) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and is intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan” in ERISA pursuant to U.S. Department of Labor Regulation Section 2510.3-2(b). The Plan and all rights thereunder shall be governed and construed in accordance with ERISA and, to the extent not preempted by Federal law, with the laws of the State of Washington.

Section 409A

Notwithstanding any other provision of the Plan:

Statement of Intent

To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be exempt from the definition of “nonqualified deferred compensation” under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) in accordance with one or more exemptions available under the final Treasury regulations promulgated under Code

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Section 409A. To the extent that any such amount or benefit is or becomes subject to Code Section 409A, this Plan is intended to comply with the applicable requirements of Code Section 409A with respect to such amounts or benefits. This Plan shall be interpreted and administered to the extent possible in a manner consistent with the foregoing statement of intent.

Exemptions

To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be exempt from the definition of “nonqualified deferred compensation” under Code Section 409A including, but not limited to, being exempt from Section 409A:

• as short-term deferrals under Treasury Regulation Section 1.409A-1(b)(4) (in general, a short-term deferral is an amount that is payable no later than March 15 of the year following the year in which the amount becomes due and payable); and

• as payments not qualifying as short-term deferrals, to the extent that the payments do not exceed two times the lesser of (1) your annualized rate of pay for the prior calendar year or (2) the limitation under Code Section 401(a)(17) for the year of your Separation from Service (as defined below) ($250,000 in 2012) and such payments are made no later than December 31 of the second calendar year following the year of your Separation from Service (the “409A Severance Limit”).

Separation from Service

To the extent any payment under the Plan is or may become subject to Code Section 409A, such payment shall be made only if you in fact experience a “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i) and final Treasury Regulation Section 1.409A-1(h) (“Separation from Service”).

The transfer of your employment among Clearwater Paper and its subsidiaries and affiliates generally will not be deemed a Separation from Service for purposes of Code Section 409A. Continuing to perform services for Clearwater Paper or any of its subsidiaries or affiliates after your termination (for example, as a consultant) may cause you to be treated as not having a Separation from Service, depending on the level of services you continue to perform. In general, you will not be viewed as having a Separation from Service unless your work level has decreased to 20% or less of the level you were working prior to your termination.

Separate Payments

Each installment of your Severance Payments shall be deemed a separate payment for purposes of Code Section 409A.

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Specified Employees

A “Specified Employee” is an employee of Clearwater Paper or one of its subsidiaries or affiliates who is one of the top 50 highest paid employees as determined by Clearwater Paper. Code Section 409A provides for a six-month delay with respect to certain payments made to Specified Employees if the payments are subject to Code Section 409A. Under the Plan, Specified Employees may receive up to the 409A Severance Limit without regard to the six-month delay; however, payments in excess of the 409A Severance Limit that would have been paid within six months following the Specified Employee’s separation date will be paid the first business day of the seventh month following the separation date, or, if earlier, the date of the Specified Employee’s death.

No Participating Company Liability Under Code Section 409A

In no event whatsoever shall any Participating Company be liable for any taxes, penalties or interest that may be imposed on you pursuant to Section 409A or under any other similar provision of state tax law, including but not limited to, damages for failing to comply with Section 409A and/or any other similar provision of state tax law.

Limitation on Offsets

No payment under the Plan that constitutes a deferral of compensation under Code Section 409A may be offset against any of your indebtedness or as a result of any other payment or benefit to you, if and to the extent that such offset would constitute a change in the time of payment (including as a result of deemed substitution of the indebtedness or other payment or benefit for the deferred compensation) not compliant with Code Section 409A.

Timing of Certain Payments

If any amount payable during a fixed period (such as 60 days) following your Separation from Service is subject to Code Section 409A and the fixed period over which such amount is payable begins in one year and ends in a subsequent year, payment shall commence in the subsequent year regardless of when you return the Separation Agreement.

Possible Cap on Payments

If at any time, it shall be determined that any payment or benefit payable to you pursuant to this Plan together with payments or benefits provided under any other plan or agreement maintained by Clearwater Paper, any person whose actions result in a “Change of Control” (as defined in the Change of Control Plan) or any person affiliated with Clearwater Paper or such person (collectively, the “Payments”) is or will become subject to the excise tax imposed by Section 4999 of the Code or any similar or successor tax on payments made in connection with a change of control under any United States federal, state, local, foreign or other law (“Excise Taxes”), then you will be paid either (i) the full amount of the Payments or (ii) an amount equal to the Payments reduced by the minimum amount necessary to prevent any portion of the Payments from being subject to the Excise Taxes (the “Capped Payments”), whichever of the foregoing amounts results in the receipt by you, on an

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after-tax basis, of the greatest amount of Payments notwithstanding that all or some portion of the Payments may be subject to the Excise Taxes.

For purposes of determining whether you would receive a greater after-tax benefit from the Capped Payments than from receipt of the full amount of the Payments, you shall be deemed to pay federal, state and local taxes at the highest marginal rate of taxation for the applicable calendar year. If you are determined to receive a greater after-tax benefit from the Capped Payments, the Payments shall be reduced in a manner and order of priority that provides you with the largest net after-tax value. Any such reduction shall be structured in a manner intended to comply with Section 409A of the Code, to the extent applicable.

All computations and determinations called for by the preceding two paragraphs shall be made and reported in writing to Clearwater Paper and you by a third-party service provider selected by Clearwater Paper (the “Tax Advisor”), and all such computations and determinations shall be conclusive and binding on Clearwater Paper, all other Participating Companies and you. For purposes of such calculations and determinations, the Tax Advisor may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. Clearwater Paper and you shall furnish to the Tax Advisor such information and documents as the Tax Advisor may reasonably request in order to make its required calculations and determinations. Clearwater Paper shall bear all fees and expenses charged by the Tax Advisor in connection with its services.

Assignment

The Plan shall inure to the benefit of and shall be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount is still payable to you under the Plan had you continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of the Plan to your estate in a single lump-sum within 90 days of your death. Your rights under the Plan shall not otherwise be transferable or subject to lien or attachment.

Other Benefits

Nothing in this document is intended to guarantee that benefit levels or costs will remain unchanged in the future in any other plan, program or arrangement of Clearwater Paper or its subsidiaries or affiliates. Clearwater Paper and its subsidiaries and affiliates reserve the right to terminate, amend, modify, suspend, or discontinue any such other plan, program or arrangement in accordance with such plan, program and arrangement and applicable law.

Oral Statements

The payments and benefits hereunder shall supersede any oral statements made by any employee, officer or director of Clearwater Paper or any of its subsidiaries or affiliates regarding severance payments and benefits.

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Successors and Assigns

This Plan shall be binding upon and inure to the benefit of Clearwater Paper, the other Participating Companies and their respective successors and assigns, and shall be binding upon and inure to the benefit of you and your legal representatives, heirs and legatees.

Section 6. Administrative Information About Your Plan

Plan Administrator

The administration of the Plan is the responsibility of the Plan Administrator. The Plan Administrator has the discretionary authority and responsibility for, among other things, determining eligibility for benefits and construing and interpreting the terms of the Plan. In addition, the Plan Administrator has the authority, in its discretion, to delegate its responsibility to others. The chart in Section 8 (“Other Administrative Facts”) contains the name and address of the Plan Administrator.

Claim for Benefits

If you believe you are entitled to payments and benefits under the Plan, contact the Plan Administrator in writing. A claim must be made within six (6) months of your termination date. Any claim made beyond six (6) months after your termination date shall be time barred and you will be expressly precluded from receiving any severance payments and/or benefits under the Plan.

Claims Review Procedures

Only the Plan Administrator or its delegate (identified in “Other Administrative Facts”) has the authority to decide claims. This means that if someone other than the Plan Administrator, for example, your HR Generalist, says that you are not eligible for severance, that statement is not a decision on a claim for benefits – you would still have the right to make a claim and get an official decision from the Plan Administrator or its delegate. You will be provided written or electronic notification by the Plan Administrator or its delegate if you are denied payments and benefits under the Plan or of any other adverse benefit determination. The notice shall provide the specific reason(s) for the determination and reference to the specific Plan provisions on which the determination is based, a description of any additional material or information necessary to perfect the claim and an explanation why such material or information is necessary (if applicable), a description of the Plan’s appeal procedures, including the time limits and a statement of your right to bring a civil action following an appeal.

If a claim for benefits under the Plan is denied in full or in part or you receive some other adverse benefit determination, you may appeal the decision to the Plan Administrator. To appeal a decision, you must submit a written document through the U.S. Postal Service or other courier service appealing the denial of the claim within 60 days after the date of the claim denial. If you do not submit an appeal within this 60 day period, you will not be entitled to appeal the denial or adverse benefit determination. You may also include information or other documentation in support of your claim. Upon request, you will be provided reasonable access to and copies of, all documents, records and other information relevant (as defined by ERISA) to your claim. You may have a qualified

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person represent you during the appeal process. You will be notified of a decision within 60 days (which may be extended to 120 days, if required) of the date your appeal is received. If an extension of time is required by the plan, you will receive notice of the reason for the extension within the initial 60-day period and a date by which you can expect a decision.

Any decision on appeal shall be final, conclusive and binding upon all parties. If the appeal is denied, however, you will be advised of your right to file a claim in court.

Legal Action

You may not bring a lawsuit to recover benefits under the Plan until you have exhausted the internal administrative process described above. No legal action may be commenced at all unless commenced no later than one (1) year following the issuance of a final decision on the claim for benefits, or the expiration of the appeal decision period if no decision is issued pursuant to the Claims Review Procedures described above. This one-year statute of limitations on suits for all benefits shall apply in any forum where you may initiate such a suit.

Participating Companies

A complete list of the Participating Companies may be obtained from the Plan Administrator by written request. (See the chart at the end of this section for the name and address of the Plan Administrator.)

Section 7. Your Rights and Privileges Under ERISA

As a participant in the Plan, you are entitled to certain rights and protection under ERISA. ERISA provides that you shall be entitled to:

Receive Information About Your Plan and Benefits

Examine, without charge, at the Plan Administrator’s office and at other specified locations all documents governing the Plan.

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and an updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.

Prudent Actions by Plan Fiduciaries

In addition to creating certain rights for you, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

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Enforce Your Rights

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator.

If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the plan’s decision or lack thereof concerning the qualified status of a medical child support order, you may file suit in a Federal court.

If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance With Your Questions

If you have any questions about your plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 1-866-444-EBSA (3272) or accessing their website at http://www.dol.gov/ebsa.

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Section 8. Other Administrative Facts

Name of Plan	Clearwater Paper Executive Severance Plan
Type of Plan	Severance plan
Plan Records	Kept on a calendar-year basis
Plan Year	January 1 – December 31
Plan Funding	Clearwater Paper and other Participating Companies provide severance benefits from general revenues
Plan Sponsor	Clearwater Paper Corporation 601 West Riverside Avenue, Suite 1100 Spokane, WA 99201 Employer identification number: 20-3594554
Plan Administrator and Named Fiduciary	Clearwater Paper Benefits Committee c/o Associate General Counsel Clearwater Paper Corporation 601 West Riverside Avenue, Suite 1100 Spokane, WA 99201 Telephone: (509) 344-5900
Agent for Service of Legal Process on the Plan	Legal process may be served on the Plan Administrator (c/o the Associate General Counsel) at the address shown above.

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EX-10.13(I)

Exhibit 10.13(i)

AMENDMENT TO THE
CLEARWATER PAPER CORPORATION
SALARIED SUPPLEMENTAL BENEFIT PLAN

The Clearwater Paper Corporation Salaried Supplemental Benefit Plan, as amended and restated as of January 1, 2012 (the “Plan”), is hereby further amended by revising the first paragraph of Section 5(b) of the Plan to read as follows, effective as of December 1, 2013 (the subsequent paragraphs of Section 5(b) shall remain unchanged):

“(b) 401(k) Plan Supplemental Benefit. By the later of (i) January 31st of the calendar year immediately following the first calendar year in which the Participant first accrues a benefit under this Plan (or if earlier, thirty (30) days after first becoming eligible to participate in the Clearwater Paper Corporation Management Deferred Compensation Plan or any successor plan), or (ii) December 31, 2008, each Participant shall elect to receive distribution of the Participant’s vested 401(k) Plan Supplemental Benefit in fifteen or fewer annual installments or in a lump sum beginning in the Plan Year (but no later than March 15th of such Plan Year) following the Plan Year in which the Participant Separates from Service by filing the prescribed form with the Corporation. A Participant shall have only one form of payment election in effect for the entire 401(k) Plan Supplemental Benefit accrued during all Plan Years beginning prior to January 1, 2014. Prior to each Plan Year beginning on or after January 1, 2014, a Participant shall be permitted to make a separate form of payment election for the 401(k) Plan Supplemental Benefit to be accrued in such Plan Year, provided that a Participant’s form of payment election in effect for any Plan Year shall remain in effect for the 401(k) Plan Supplemental Benefit accrued in each subsequent Plan Year unless and until the Participant makes a new form of payment election in the manner prescribed by the Committee. Each form of payment election made pursuant to this Section 5(b) shall be irrevocable. Distribution will be made in accordance with the Participant’s election except as provided below. The amount of any annual installment shall be determined by dividing the amount credited to the Participant’s bookkeeping account as of the last day of the Plan Year preceding the date of distribution of such installment by the total number of installments elected by the participant less the number of installments already paid. For purposes of the Plan, installment payments shall be treated as a single distribution under section 409A of the Code. All annual installment payments shall be payable no later than March 15th of the payment year.”

Date: 12/17/13                CLEARWATER PAPER CORPORATION

By: /s/ Jackson Lynch

Name: Jackson O. Lynch III

Title:    Senior Vice President, Human Resources

EX-10.16

Exhibit 10.16

Clearwater Paper

Change of Control Plan

And

Summary Plan Description

The information contained in this Change of Control Plan and Summary Plan Description (SPD) is effective as of the date at the bottom of this page. To ensure that you have the most up-to-date benefit plan information, be sure to review this Plan and SPD in combination with more recent communications to eligible employees.

January 1, 2014

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TABLE OF CONTENTS

Section 1.Eligibility to Participate    4

Section 2.Eligibility for Severance Payments and Benefits    4

Section 3.Severance Payments and Benefits    9

Section 4.Amendment and Plan Termination    15

Section 5.Miscellaneous    15

Section 6.Administrative Information About Your Plan    20

Section 7.Your Rights and Privileges Under ERISA    21

Section 8.Other Administrative Facts    23

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PURPOSE

The Compensation Committee of the Board of Directors of Clearwater Paper (“Clearwater Paper”) has adopted this Clearwater Paper Change of Control Plan (the “Plan”) for eligible executives of Clearwater Paper and its participating subsidiaries and affiliates (Clearwater Paper and its participating subsidiaries and affiliates are sometimes referred to in this Plan as “Participating Companies”). This Plan, together with the Clearwater Paper Executive Severance Plan (the “Executive Severance Plan”), amends and supersedes the Clearwater Paper Corporation Severance Program for Executive Employees, which program shall have no further force or effect on and after December 13, 2012 (the “Effective Date”).

The purpose of the Plan is to provide equitable treatment for executives whose employment terminates following a Change of Control (as defined below) consistent with the values and culture of Clearwater Paper, provide financial support for such executives seeking new employment, recognize such executives’ contributions to the Participating Companies, and avoid or mitigate the Participating Companies’ potential exposure to litigation. Clearwater Paper further believes that the Plan will aid all of the Participating Companies in attracting and retaining highly qualified executives who are essential to their success.

Upon the occurrence of a Change of Control (as defined below), this Plan, and not the Executive Severance Plan, shall govern with respect to terminations of employment with the Participating Companies occurring during the two (2) year period commencing on the date of such Change of Control.

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Section 1. Eligibility to Participate

Except as provided in the following paragraph, you are eligible to participate in the Plan if you are either (1) Clearwater Paper’s president, chief executive officer, chief financial officer, corporate secretary, treasurer or controller, (2) an officer of a Participating Company appointed to that position by Clearwater Paper’s Board of Directors, or (3) an executive of Clearwater Paper or another Participating Company who has been designated by the Compensation Committee of Clearwater Paper’s Board of Directors (the “Compensation Committee”) as eligible to participate in this Plan.

Notwithstanding anything contained herein, you are not eligible to participate in the Plan and are excluded from coverage under the Plan if you are:

• a party to an individual arrangement or a written employment agreement with Clearwater Paper or another Participating Company containing a severance provision other than pursuant to this Plan or the Executive Severance Plan;

• covered by a local practice outside the United States that provides for severance payments and/or benefits in connection with a voluntary or involuntary termination of employment that are greater than the severance payments and/or benefits set forth herein.

Section 2. Eligibility for Severance Payments and Benefits

Right to Severance Payments and Benefits

You will be eligible to receive the severance payments and benefits provided by this Plan if, during the two (2) year period commencing on the date of a Change of Control (as defined below), your employment by Clearwater Paper or another Participating Company is terminated for any one or more of the following reasons:

(a) Involuntary termination by your Participating Company other than for Cause (as defined below).

(b) You voluntarily terminate your employment after the occurrence of any event constituting Good Reason (as defined below).

To qualify for severance payments and benefits under the Plan upon voluntary termination for Good Reason, you must notify your Participating Company in writing of termination for Good Reason specifying the event constituting Good Reason within ninety (90) calendar days after the event. Failure for any reason to give written notice of termination of employment for Good Reason shall be deemed a waiver of the right to voluntarily terminate employment and claim Good Reason under this Plan in relation to such event. The Participating Company shall have a period of thirty (30) calendar days in which to cure the Good Reason (the “Cure Period”). If the Good Reason is cured within the Cure Period, you will not be entitled to severance payments and benefits hereunder. If the Participating Company waives its right to cure or does not, within the Cure Period, cure the Good Reason, you shall be entitled to severance payments and benefits and your actual termination date shall be determined in the sole discretion of the Participating Company but in no event later

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than thirty (30) calendar days from the date the Participating Company waives its right to cure or the end of the Cure Period, whichever is earlier.

Change of Control

For purposes of this Plan, “Change of Control” shall mean the occurrence of any of the following events:

1. Upon consummation of a Business Combination unless, following such Business Combination,

a.all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock (or common equity) and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation or other entity resulting from such Business Combination (including a corporation or other entity which as a result of such transaction owns Clearwater Paper either directly or through one or more subsidiaries),

b.no Person (excluding any corporation or other entity resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained by Clearwater Paper or a Clearwater Paper subsidiary or such other corporation or other entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock (or common equity) of the corporation or other entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation or other entity except to the extent that such ownership is based on the beneficial ownership, directly or indirectly, of Outstanding Common Stock or Outstanding Voting Securities immediately prior to the Business Combination, and

c.at least a majority of the members of the board of directors (or similar governing body) of the corporation or other entity resulting from such Business Combination were members of the Board of Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; or

2. Upon the consummation of the sale, lease or exchange of all or substantially all of the assets of Clearwater Paper; or

3. On the date that individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual who becomes a member of the Board of Directors on or subsequent

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to the day immediately following the Effective Date whose election, or nomination for election by Clearwater Paper’s stockholders, was approved by a vote of at least a majority of the members of the Board of Directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for purposes of this proviso, any such individual whose appointment to the Board of Directors occurs as a result of an actual or threatened election contest with respect to the election or removal of a member or members of the Board of Directors, an actual or threatened solicitation of proxies or consents or any other actual or threatened action by, or on behalf of any Person other than the Incumbent Board; or

4. Upon the acquisition on or after the Effective Date by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either:

a.the then Outstanding Common Stock, or

b.the combined voting power of the Outstanding Voting Securities; provided, however, that the following acquisitions shall not be deemed to be covered by this part 4:

(x)    any acquisition of Outstanding Common Stock or Outstanding Voting Securities by or at the direction of Clearwater Paper or any Subsidiary,

(y)    any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by Clearwater Paper or any Subsidiary, or

(z)    any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any Person pursuant to a transaction which complies with clauses a., b. and c. of part 1 of this definition of “Change of Control,” related to Business Combinations; or

5. Upon the approval by the stockholders of Clearwater Paper of a complete liquidation or dissolution of Clearwater Paper.

The following terms are used in the above definition of “Change of Control”:

“Board of Directors” means the Board of Directors of Clearwater Paper, as constituted from time to time.

“Business Combination” means a merger or consolidation of Clearwater Paper.

“Incumbent Board” means the individuals who constituted the Board of Directors as of the Effective Date.

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“Outstanding Common Stock” means the outstanding shares of common stock of Clearwater Paper, par value $0.0001 per share.

“Outstanding Voting Securities” means the outstanding voting securities of Clearwater Paper entitled to vote generally in the election of members of Clearwater Paper’s Board of Directors.

“Person” means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended).

Ineligibility for Severance Payments and Benefits

Notwithstanding any provision of the Plan, you shall not be eligible for severance payments and benefits under this Plan if a Change of Control has not occurred during the two (2) year period preceding the date of your termination of employment, or if your termination of employment occurs by reason of any of the following:

• voluntary termination other than for Good Reason, including early retirement;

• mandatory retirement from employment in accordance with your Participating Company’s policy or statutory requirements;

• death;

• Disability;

• for Cause;

• refusal, rejecting or declining to accept a transfer to a position with Clearwater Paper or another Participating Company, as applicable (for which you are qualified as determined by the Participating Company by reason of knowledge, training, and experience), provided the transfer would not constitute Good Reason for a voluntary termination;

• the sale of all or part of Clearwater Paper’s or another Participating Company’s business assets (including but not limited to a Change of Control), or a spin-off of a division (or other operating assets) of Clearwater Paper or another Participating Company, if you are offered employment by the acquirer of such assets or such other spun-off entity prior to or within four (4) weeks after the date your employment with the Participating Company terminates, regardless of whether you accept the offer, provided that the terms and conditions of employment offered to you would not constitute Good Reason for a voluntary termination if the acquirer or spun-off entity were a Participating Company in this Plan;

• upon the formation of a joint venture or other business entity in which Clearwater Paper or another Participating Company directly or indirectly will own some outstanding voting or other ownership interest (including but not limited to a Change of Control) if

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you are offered employment by the joint venture entity or other business entity prior to or within four (4) weeks of the date your employment with the Participating Company terminates, regardless of whether you accept the offer, provided that the terms and conditions of employment offered to you would not constitute Good Reason for a voluntary termination if the joint venture entity or other business entity were a Participating Company in this Plan; or

• you are reporting to a different person.

Cause

“Cause” shall mean the occurrence of any one or more of the following:

(i) your conviction of any felony or any crime involving fraud, dishonesty or moral turpitude;

(ii) your participation in a fraud or act of dishonesty against Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper that results in material harm to the business of Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper;

(iii) your intentional, material violation of any contract between you and Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper, or any statutory duty you owe Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper, in either case that you do not correct within thirty (30) days after written notice thereof has been provided to you;

(iv) the commission by you of an act that could (either alone or with other acts) be considered harassment or discrimination on the basis of gender, race, age, religion, sexual orientation or other protected category; or

(v) the commission by you of an alcohol or drug offense in violation of Clearwater Paper’s or a subsidiary’s or affiliate’s Substance Abuse Policy for salaried employees.

“Cause” shall be interpreted by the Plan Administrator in its sole discretion and such interpretation shall be conclusive and binding on all parties.

Disability

“Disability” shall mean a condition pursuant to which you are

(i)    unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or

(ii)    by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of Clearwater Paper, its subsidiaries or affiliates.

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Good Reason

“Good Reason” shall mean that one or more of the following are undertaken by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper without your written consent:

(i) the assignment to you of any duties or responsibilities that results in a material diminution in your position or function; provided, however, that a change in your title or reporting relationships shall not provide the basis for a voluntary termination with Good Reason;

(ii) a 10% or greater reduction by your Participating Company, other than in connection with an across-the-board reduction applicable to other senior executives of the Participating Company, in your base salary and/or target bonus, and/or target long-term incentive opportunity, all as in effect immediately prior to such reduction;

(iii) any failure by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper to continue in effect (or substantially replace in the aggregate) any material benefit plan or program in which you are participating (hereinafter referred to as “Benefit Plans”), or the taking of any action by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper that would adversely affect your participation in or reduce your benefits under the Benefit Plan; provided, however, that no voluntary termination of service with Good Reason shall be deemed to have occurred if Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper provide for your participation in benefit plans and programs that, taken as a whole, are comparable to the Benefit Plans;

(iv) a relocation of your business office to a location more than 50 miles from the location at which you perform duties, except for required travel by you on Clearwater Paper’s, its subsidiaries’ or affiliates’ or any successor to Clearwater Paper’s business; or

(v) a material breach by Clearwater Paper, its subsidiaries or affiliates or any successor to Clearwater Paper concerning the terms and conditions of your employment.

Section 3. Severance Payment and Benefits

You are eligible to receive the Severance Payment and benefits described in this Section 3, provided you meet the eligibility criteria in Section 2.

Severance Payment

You shall receive a cash Severance Payment, payable in one (1) lump sum, equal to the sum of the following:

• 2.50 times the sum of (A) your annual Base Pay (as defined below) plus (B) your annual Base Pay multiplied by your target bonus percentage for the calendar year of your termination as determined pursuant to Clearwater Paper’s Annual Incentive Plan or a successor plan (the “AIP”). If your termination of employment occurs within the thirty (30) months

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preceding the date you will attain age 65, the “2.50” multiplier in the preceding sentence shall be replaced by a fraction, the numerator of which is the number of full months between your termination date and the date you will attain age 65 and the denominator of which is twelve (12).

• A prorated AIP award for the calendar year of your termination. Such AIP award will be determined under the terms of the AIP applicable to you for such year, but shall be based upon your target bonus percentage under the AIP for the calendar year of your termination. Your AIP award determined under the preceding sentence will be multiplied by a fraction, the numerator of which is the number of days you were employed by a Participating Company during the calendar year of your termination and the denominator of which is 365. Notwithstanding the foregoing, you will not be entitled to an AIP award under this paragraph if you are entitled to an AIP award for the calendar year of your termination pursuant to the change of control provisions of the AIP.

• The unvested portion, if any, of your account balance under Clearwater Paper’s 401(k) Plan and your “401(k) Plan Supplemental Benefit” account balance under Clearwater Paper’s Salaried Supplemental Benefit Plan (the “Supplemental Plan”) or any successor plans.

• If you participate in Clearwater Paper’s Salaried Retirement Plan (the “Retirement Plan”) and are not vested in your accrued benefit under such plan as of the date of your termination of employment, an amount equal to the present value of your “Normal Retirement Benefit” under the Retirement Plan and your “Retirement Plan Supplemental Benefit” under the Supplemental Plan. Such present value shall be determined as of the date of your termination of employment using the assumed discount rate applied in projecting Clearwater Paper’s pension benefit obligations for financial reporting purposes and the RP 2000 mortality table.

The term “Severance Pay Period” used in this Plan means the thirty (30)-month period commencing on the date of your termination of employment. However, if your termination of employment occurs during the thirty (30)- month period preceding your attainment of age 65, your Severance Pay Period will be the period between your termination date and the date you will attain age 65.

“Base Pay” means your base rate of pay as in effect at the time of your termination of employment or, if greater, the rate in effect at the time your Base Pay was materially reduced giving rise to your termination for Good Reason. Your Base Pay shall be determined without reduction for salary reductions under sections 125, 132(f), 137 or 401(k) of the Internal Revenue Code. Your Base Pay shall not include overtime, bonuses, income from awards under Clearwater Paper’s 2008 Stock Incentive Plan or any successor plan, dividend equivalents, benefits-in-kind, expense reimbursements, allowances (including, but not limited to moving or car allowances) or other incentives, and any other forms of extra compensation.

Payment of the Severance Payment is contingent upon your signing a Separation Agreement containing a general release and allowing the general release to become effective (see “Separation Agreement, Including General Release and Restrictive Covenants,” below).

Nothing in this Section 3, this Plan, the Executive Severance Plan, an offer letter from a Participating Company, a prevailing practice of a Participating Company, or any oral statement made by or on behalf of a Participating Company shall entitle you to receive duplicate benefits in connection with a voluntary or involuntary termination of employment. For example, you are not eligible for

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payments and benefits under both this Plan and the Executive Severance Plan. The obligation of the Participating Companies to make payments under this Plan shall be expressly conditioned upon you not receiving duplicate payments.

Pay in Lieu of Notice Periods

The Severance Payment under the Plan shall be reduced by any cash payments to which you may be entitled under any federal, state or local plant-closing or mass layoff law (or similar or analogous) law, including, without limitation, pursuant to the U.S. Worker Adjustment and Retraining Notification Act or any state or local “pay in lieu of notice” law or regulation.

No Mitigation

You shall not be required to mitigate the amount of any payment provided for in the Plan by seeking other employment and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to you in any subsequent employment. Notwithstanding the preceding sentence, any subsidized COBRA coverage that you are entitled to receive under this Plan following your termination of employment will terminate no later than the date you begin new employment (see “Continuation of Employee Benefits” below).

Debt Owed to a Participating Company

If you owe Clearwater Paper or another Participating Company money for any reason, the Participating Company shall have the right, at its sole discretion, to offset the amount of the debt from your Severance Payments to the fullest extent permitted by law.

Separation Agreement, Including General Release and Restrictive Covenants

The obligation of the Participating Companies to pay the Severance Payment and provide you benefits continuation (see “Continuation of Employee Benefits” below), shall be and is expressly conditioned upon you timely executing a separation agreement in a form that is satisfactory to Clearwater Paper (the “Separation Agreement”) during the requisite time period and allowing such Separation Agreement to become effective.

As to the Separation Agreement:

• It shall include but not be limited to a general release of claims against Clearwater Paper, its subsidiaries and affiliates and their respective officers, directors, employees and agents, and shall contain certain restrictive covenants and obligations on your part including, but not limited to, non-competition and non-solicitation covenants for the twenty-four (24) month period commencing on your separation date, an agreement by you not to make use of confidential or proprietary information of Clearwater Paper or its subsidiaries of affiliates, an agreement not to disparage or encourage or induce others to disparage Clearwater Paper, its subsidiaries or affiliates or their respective products for a specified period, an agreement to return Company property, and an agreement to

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cooperate with legal matters of Clearwater Paper and its subsidiaries and affiliates in which you might have knowledge.

• Clearwater Paper or your Participating Company will provide a form of such Separation Agreement not later than the date of your Separation from Service.

• You must sign and return the Separation Agreement within the minimum time period required by law and not revoke it during any permitted revocation period, in order for the Separation Agreement to become effective. Otherwise, you will not be eligible for, and neither Clearwater Paper nor any other Participating Company shall have any obligation to pay you, any Severance Payment.

How and When Your Benefit Is Paid

The Severance Payment will be paid in one (1) lump sum.

In general, the Severance Payment, if payable, will not be made until at least eight days after you return a signed Separation Agreement (containing the general release) to Clearwater Paper or your Participating Company, but in no event later than 60 days after your effective date of termination.

If you have terminated employment and completed all of the requirements to receive a Severance Payment (including signing and delivering the Separation Agreement within the minimum time period required by law and not revoking it during any permitted revocation period), but you die prior to the date such payment is made, your Severance Payment will be paid in a lump sum to your estate.

It is possible that the Severance Payment will constitute payment of deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). In that event, payment may be subject to the six-month delay rule and other limitations required to comply with Code Section 409A requirements. See “Section 409A” below.

Continuation of Employee Benefits

During the Severance Pay Period, you are not considered an employee of Clearwater Paper or any other Participating Company for any purpose – including eligibility under any employee benefit plan. The following benefits, however, will continue to be available:

Health Care Plans

If you and your dependents are enrolled in Clearwater Paper’s or another Participating Company’s group health plan on the date your employment terminates, this coverage will terminate on that date. However, you and your enrolled eligible dependents will be offered the opportunity to elect COBRA continuation coverage and have the opportunity to receive reimbursements for a portion of the cost of that coverage:

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Subsidized COBRA: If you elect COBRA continuation coverage, you will be responsible for the timely payment of all premiums charged for the COBRA coverage. However, if you sign and return the Separation Agreement in the requisite time period and allow it to become effective, Clearwater Paper or your Participating Company will reimburse you an amount equal to the amount it pays toward the cost of the same group health plan coverage for its active senior executives (this benefit will cease to be provided if you fail to timely pay the entire cost of the COBRA coverage). Clearwater Paper or your Participating Company will provide these reimbursements until the earlier of (i) the end of your Severance Pay Period or (ii) the date you begin new employment (the “Subsidized Benefits Period”).

This means that during the Subsidized Benefits Period, after receiving the reimbursements, you will in effect be paying the same amount as active employees for the same coverage rather than the standard COBRA rate. However, if under applicable law you are eligible to (and choose to) continue your COBRA coverage beyond the end of the Subsidized Benefits Period, you will then cease to receive any reimbursements and will have to bear the full cost of the standard COBRA rate.

Please note that if you do not sign and return the Separation Agreement in the requisite time period and allow it to become effective, neither you nor your eligible dependents will receive subsidized COBRA. In addition, the Participating Companies reserve the right to cease providing subsidized COBRA at any time if continuing to provide that benefit would subject the Participating Companies to excise taxes, penalties or similar charges under applicable law. Of course, in either event you and your eligible dependents would still be entitled to standard COBRA.

Standard COBRA: Standard COBRA is unsubsidized COBRA, meaning you (and your eligible dependents if they elect separately) would owe the standard COBRA rate for COBRA coverage and will not receive any reimbursements for the cost of that coverage. Standard COBRA will be offered only for the maximum period required by law, which may be shorter or longer than your Subsidized Benefits Period.

Detailed information about COBRA coverage will be mailed to your home at the time of termination.

Life Insurance

Your current level of basic life insurance coverage will continue until the end of your Subsidized Benefits Period.

When you are terminated, if you are participating in a supplemental or dependent life insurance plan, coverage will end on your termination date. When your employment terminates, you may have the opportunity to elect to convert all or part of any terminating life insurance coverage to an individual policy with the insurer.

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Employee Assistance Program (EAP)

You may continue to participate in Clearwater Paper’s or your Participating Company’s Employee Assistance Program during the Subsidized Benefits Period, as long as you remain eligible for benefits under Clearwater Paper’s or your Participating Company’s group health plan. If you elect COBRA continuation coverage, you may continue to participate in the EAP. You will receive additional information regarding participation at the time of your termination.

Outplacement

You will be eligible for outplacement services in accordance with Clearwater Paper’s or your Participating Company’s outplacement services that are in effect for executives at your level as of the date your employment ends, provided you timely sign and return the Separation Agreement (as set forth above).

Accrued Obligations

Regardless of whether the Severance Payment is payable, you will be entitled to receive payment of all of your earned but unpaid base salary through the date of your termination, any bonus earned under the terms of the AIP or other governing plan but remaining unpaid for any previously completed performance cycle, any earned but unused vacation, and any employee benefits earned but not yet provided under the terms of any applicable plan or program.

Other Benefits

Accrued and unused vacation days, annual and long-term incentive awards, vesting and exercising of awards under the 2008 Stock Incentive Plan or any successor plan, and any other bonus or incentive payments will be determined in accordance with the applicable Participating Company plans, programs and/or policies, except as specifically provided above under “Severance Payment” with respect to AIP awards.

Except as specifically provided above under “Continuation of Employee Benefits,” all benefit coverage, and eligibility to participate in Clearwater Paper’s and other Participating Companies’ plans, will end as of your termination date. These benefits include, but are not limited to:

• contributions to a Dependent Care Reimbursement Account;

• contributions to and earning service for vesting under Clearwater Paper’s 401(k) Plan;

• earning additional service for vesting under Clearwater Paper’s Salaried Retirement Plan (if applicable); and

• participation in Clearwater Paper’s or your Participating Company’s disability plans.

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If You Are Rehired After Termination

If you are rehired by Clearwater Paper or another Participating Company during the Severance Pay Period, you will be required to repay a prorated portion of your Severance Payment based on the number of weeks of your Severance Pay Period during which you are employed by Clearwater Paper or another Participating Company.

If you are a terminated employee who is subsequently reinstated to employee status back to the date you were terminated (including reinstatement as the result of an appeal of a claim for disability benefits), you will have to repay your entire Severance Payment.

Section 4. Amendment and Plan Termination

Clearwater Paper reserves the right to terminate or amend, in whole or in part, the Plan at any time in its sole discretion by resolution adopted by the Compensation Committee. Clearwater Paper reserves the right to implement changes even if they have not been reprinted or substituted in this document.

The Senior Vice President, Human Resources or Senior Vice President, General Counsel of Clearwater Paper (or, in the event of a title change in such position, the most senior person in Clearwater Paper’s legal or human resources department, respectively) shall have the power and authority to amend the Plan with respect to any amendment that (i) does not increase the benefits under the Plan or (ii) is required to comply with new or changed legal requirements applicable to the Plan, including but not limited to Code Section 409A.

Notwithstanding the foregoing, following a Change of Control no amendment or termination of this Plan shall reduce any Severance Payment or any other benefit that has become payable under this Plan or make more restrictive the eligibility requirements for Severance Payments or benefits under this Plan.

Section 5. Miscellaneous

Employment Status

The Plan does not constitute a contract of employment and nothing in the Plan provides or may be construed to provide that participation in the Plan is a guarantee of continued employment with Clearwater Paper, any other Participating Company or any of their respective subsidiaries or affiliates.

Withholding of Taxes

Clearwater Paper or your Participating Company shall withhold from any amounts payable under the Plan all federal, state, local or other taxes that are legally required to be withheld.

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No Effect on Other Benefits

Neither the provisions of this Plan nor the Severance Payment and benefits provided for hereunder shall reduce any amounts otherwise payable to you under any incentive, retirement, stock incentive, group insurance or other benefit plan.

Validity and Severability

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Unfunded Obligation

All severance payments and benefits under the Plan shall constitute unfunded obligations of the Participating Companies. Severance payments shall be made, as due, from the general funds of the Participating Companies. The Plan shall constitute solely an unsecured promise by the Participating Companies to provide such benefits to you to the extent provided herein. For avoidance of doubt, any health benefits to which you may be entitled under the Plan shall be provided under other applicable employee benefit plans of Clearwater Paper or your Participating Company.

Type of Plan and Governing Law

This Plan is designed to qualify as a severance pay arrangement within the meaning of Section 3(2)(B)(i) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and is intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan” in ERISA pursuant to U.S. Department of Labor Regulation Section 2510.3-2(b). The Plan and all rights thereunder shall be governed and construed in accordance with ERISA and, to the extent not preempted by Federal law, with the laws of the State of Washington.

Section 409A

Notwithstanding any other provision of the Plan:

Statement of Intent

To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be exempt from the definition of “nonqualified deferred compensation” under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) in accordance with one or more exemptions available under the final Treasury regulations promulgated under Code Section 409A. To the extent that any such amount or benefit is or becomes subject to Code Section 409A, this Plan is intended to comply with the applicable requirements of Code Section 409A with respect to such amounts or benefits. This Plan shall be interpreted and administered to the extent possible in a manner consistent with the foregoing statement of intent.

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Exemptions

To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be exempt from the definition of “nonqualified deferred compensation” under Code Section 409A including, but not limited to, being exempt from Section 409A:

• as short-term deferrals under Treasury Regulation Section 1.409A-1(b)(4) (in general, a short-term deferral is an amount that is payable no later than March 15 of the year following the year in which the amount becomes due and payable); and

• as payments not qualifying as short-term deferrals, to the extent that the payments do not exceed two times the lesser of (1) your annualized rate of pay for the prior calendar year or (2) the limitation under Code Section 401(a)(17) for the year of your Separation from Service (as defined below) ($250,000 in 2012) and such payments are made no later than December 31 of the second calendar year following the year of your Separation from Service (the “409A Severance Limit”).

Separation from Service

To the extent any payment under the Plan is or may become subject to Code Section 409A, such payment shall be made only if you in fact experience a “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i) and final Treasury Regulation Section 1.409A-1(h) (“Separation from Service”).

The transfer of your employment among Clearwater Paper and its subsidiaries and affiliates generally will not be deemed a Separation from Service for purposes of Code Section 409A. Continuing to perform services for Clearwater Paper or any of its subsidiaries or affiliates after your termination (for example, as a consultant) may cause you to be treated as not having a Separation from Service, depending on the level of services you continue to perform. In general, you will not be viewed as having a Separation from Service unless your work level has decreased to 20% or less of the level you were working prior to your termination.

Separate Payments

If your Severance Payment becomes payable in more than one payment, each such payment shall be deemed a separate payment for purposes of Code Section 409A.

Specified Employees

A “Specified Employee” is an employee of Clearwater Paper or one of its subsidiaries or affiliates who is one of the top 50 highest paid employees as determined by Clearwater Paper. Code Section 409A provides for a six-month delay with respect to certain payments made to Specified Employees if the payments are subject to Code Section 409A. Under the Plan, Specified Employees may receive up to the 409A Severance Limit without regard to the six-month delay; however, payments in excess of the 409A Severance Limit that would have been paid within six months following the Specified Employee’s separation date will be paid the

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first business day of the seventh month following the separation date, or, if earlier, the date of the Specified Employee’s death.

No Participating Company Liability Under Code Section 409A

In no event whatsoever shall any Participating Company be liable for any taxes, penalties or interest that may be imposed on you pursuant to Section 409A or under any other similar provision of state tax law, including but not limited to, damages for failing to comply with Section 409A and/or any other similar provision of state tax law.

Limitation on Offsets

No payment under the Plan that constitutes a deferral of compensation under Code Section 409A may be offset against any of your indebtedness or as a result of any other payment or benefit to you, if and to the extent that such offset would constitute a change in the time of payment (including as a result of deemed substitution of the indebtedness or other payment or benefit for the deferred compensation) not compliant with Code Section 409A.

Timing of Certain Payments

If any amount payable during a fixed period (such as 60 days) following your Separation from Service is subject to Code Section 409A and the fixed period over which such amount is payable begins in one year and ends in a subsequent year, payment shall commence in the subsequent year regardless of when you return the Separation Agreement.

Possible Cap on Payments

If at any time, it shall be determined that any payment or benefit payable to you pursuant to this Plan together with payments or benefits provided under any other plan or agreement maintained by Clearwater Paper, any person whose actions result in a “Change of Control” (as defined in the Change of Control Plan) or any person affiliated with Clearwater Paper or such person (collectively, the “Payments”) is or will become subject to the excise tax imposed by Section 4999 of the Code or any similar or successor tax on payments made in connection with a change of control under any United States federal, state, local, foreign or other law (“Excise Taxes”), then you will be paid either (i) the full amount of the Payments or (ii) an amount equal to the Payments reduced by the minimum amount necessary to prevent any portion of the Payments from being subject to the Excise Taxes (the “Capped Payments”), whichever of the foregoing amounts results in the receipt by you, on an after-tax basis, of the greatest amount of Payments notwithstanding that all or some portion of the Payments may be subject to the Excise Taxes.

For purposes of determining whether you would receive a greater after-tax benefit from the Capped Payments than from receipt of the full amount of the Payments, you shall be deemed to pay federal, state and local taxes at the highest marginal rate of taxation for the applicable calendar year. If you are determined to receive a greater after-tax benefit from the Capped Payments, the Payments shall be reduced in a manner and order of priority that provides you with the largest net after-tax value.

18

Any such reduction shall be structured in a manner intended to comply with Section 409A of the Code, to the extent applicable.

All computations and determinations called for by the preceding two paragraphs shall be made and reported in writing to Clearwater Paper and you by a third-party service provider selected by Clearwater Paper (the “Tax Advisor”), and all such computations and determinations shall be conclusive and binding on Clearwater Paper, all other Participating Companies and you. For purposes of such calculations and determinations, the Tax Advisor may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. Clearwater Paper and you shall furnish to the Tax Advisor such information and documents as the Tax Advisor may reasonably request in order to make its required calculations and determinations. Clearwater Paper shall bear all fees and expenses charged by the Tax Advisor in connection with its services.

Assignment

The Plan shall inure to the benefit of and shall be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount is still payable to you under the Plan had you continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of the Plan to your estate in a single lump-sum within 90 days of your death. Your rights under the Plan shall not otherwise be transferable or subject to lien or attachment.

Other Benefits

Nothing in this document is intended to guarantee that benefit levels or costs will remain unchanged in the future in any other plan, program or arrangement of Clearwater Paper or its subsidiaries or affiliates. Clearwater Paper and its subsidiaries and affiliates reserve the right to terminate, amend, modify, suspend, or discontinue any such other plan, program or arrangement in accordance with such plan, program and arrangement and applicable law.

Oral Statements

The payments and benefits hereunder shall supersede any oral statements made by any employee, officer or director of Clearwater Paper or any of its subsidiaries or affiliates regarding severance payments and benefits.

Successors and Assigns

This Plan shall be binding upon and inure to the benefit of Clearwater Paper, the other Participating Companies and their respective successors and assigns, and shall be binding upon and inure to the benefit of you and your legal representatives, heirs and legatees.

19

Section 6. Administrative Information About Your Plan

Plan Administrator

The administration of the Plan is the responsibility of the Plan Administrator. The Plan Administrator has the discretionary authority and responsibility for, among other things, determining eligibility for benefits and construing and interpreting the terms of the Plan. In addition, the Plan Administrator has the authority, in its discretion, to delegate its responsibility to others. The chart in Section 8 (“Other Administrative Facts”) contains the name and address of the Plan Administrator.

Claim for Benefits

If you believe you are entitled to payments and benefits under the Plan, contact the Plan Administrator in writing. A claim must be made within six (6) months of your termination date. Any claim made beyond six (6) months after your termination date shall be time barred and you will be expressly precluded from receiving any severance payments and/or benefits under the Plan.

Claims Review Procedures

Only the Plan Administrator or its delegate (identified in “Other Administrative Facts”) has the authority to decide claims. This means that if someone other than the Plan Administrator, for example, your HR Generalist, says that you are not eligible for severance, that statement is not a decision on a claim for benefits – you would still have the right to make a claim and get an official decision from the Plan Administrator or its delegate. You will be provided written or electronic notification by the Plan Administrator or its delegate if you are denied payments and benefits under the Plan or of any other adverse benefit determination. The notice shall provide the specific reason(s) for the determination and reference to the specific Plan provisions on which the determination is based, a description of any additional material or information necessary to perfect the claim and an explanation why such material or information is necessary (if applicable), a description of the Plan’s appeal procedures, including the time limits and a statement of your right to bring a civil action following an appeal.

If a claim for benefits under the Plan is denied in full or in part or you receive some other adverse benefit determination, you may appeal the decision to the Plan Administrator or, following a Change of Control, to an “Appeals Committee” appointed by Clearwater Paper and consisting of at least three (3) current (as of the date of the Change of Control) or former Clearwater Paper officers and directors. To appeal a decision, you must submit a written document through the U.S. Postal Service or other courier service appealing the denial of the claim within 60 days after the date of the claim denial. If you do not submit an appeal within this 60 day period, you will not be entitled to appeal the denial or adverse benefit determination. You may also include information or other documentation in support of your claim. Upon request, you will be provided reasonable access to and copies of, all documents, records and other information relevant (as defined by ERISA) to your claim. You may have a qualified person represent you during the appeal process. You will be notified of a decision within 60 days (which may be extended to 120 days, if required) of the date your appeal is received. If an extension of time is required by the plan, you will receive notice of the

20

reason for the extension within the initial 60-day period and a date by which you can expect a decision.

Any decision on appeal shall be final, conclusive and binding upon all parties. If the appeal is denied, however, you will be advised of your right to file a claim in court.

Legal Action

You may not bring a lawsuit to recover benefits under the Plan until you have exhausted the internal administrative process described above. No legal action may be commenced at all unless commenced no later than one (1) year following the issuance of a final decision on the claim for benefits, or the expiration of the appeal decision period if no decision is issued pursuant to the Claims Review Procedures described above. This one-year statute of limitations on suits for all benefits shall apply in any forum where you may initiate such a suit.

Participating Companies

A complete list of the Participating Companies may be obtained from the Plan Administrator by written request. (See the chart at the end of this section for the name and address of the Plan Administrator.)

Section 7. Your Rights and Privileges Under ERISA

As a participant in the Plan, you are entitled to certain rights and protection under ERISA. ERISA provides that you shall be entitled to:

Receive Information About Your Plan and Benefits

Examine, without charge, at the Plan Administrator’s office and at other specified locations all documents governing the Plan.

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and an updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.

Prudent Actions by Plan Fiduciaries

In addition to creating certain rights for you, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

21

Enforce Your Rights

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator.

If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the plan’s decision or lack thereof concerning the qualified status of a medical child support order, you may file suit in a Federal court.

If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance With Your Questions

If you have any questions about your plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 1-866-444-EBSA (3272) or accessing their website at http://www.dol.gov/ebsa.

22

Section 8. Other Administrative Facts

Name of Plan	Clearwater Paper Change of Control Plan
Type of Plan	Severance plan
Plan Records	Kept on a calendar-year basis
Plan Year	January 1 – December 31
Plan Funding	Clearwater Paper and other Participating Companies provide severance benefits from general revenues
Plan Sponsor	Clearwater Paper Corporation 601 West Riverside Avenue, Suite 1100 Spokane, WA 99201 Employer identification number: 20-3594554
Plan Administrator and Named Fiduciary	Clearwater Paper Benefits Committee c/o Associate General Counsel Clearwater Paper Corporation 601 West Riverside Avenue, Suite 1100 Spokane, WA 99201 Telephone: (509) 344-5900
Agent for Service of Legal Process on the Plan	Legal process may be served on the Plan Administrator (c/o the Associate General Counsel) at the address shown above.

23

EX-12

Exhibit (12)

CLEARWATER PAPER CORPORATION

Computation of Ratio of Earnings to Fixed Charges

(Dollars in thousands)

	Years Ended December 31,
	2013		2012			2011			2010			2009
Earnings before income taxes	$	38,234	$	111,591		$	70,920		$	76,196		$	275,685
Add: Fixed charges	69,390		53,974			55,706			27,382			20,248
Subtract: Capitalized interest	—		(12,570		)	(3,705		)	(480		)	—
Earnings available for fixed charges	$	107,624	$	152,995		$	122,921		$	103,098		$	295,933
Fixed charges:
Interest expense1	$	61,094	$	33,796		$	44,809		$	22,571		$	15,505
Rental expense factor 2	8,296		7,608			7,192			4,331			4,743
Capitalized interest	—		12,570			3,705			480			—
Total fixed charges	$	69,390	$	53,974		$	55,706		$	27,382		$	20,248
Ratio of earnings to fixed charges	1.6		2.8			2.2			3.8			14.6

¹  Interest expense, net for the year ended December 31, 2013 includes debt retirement costs of $17.1 million.

²  “Rental expense factor” is the portion of rental expense estimated to be representative of the interest factor within rental expense.

The ratio of earnings to fixed charges is computed by dividing earnings available for fixed charges by fixed charges. Earnings available for fixed charges represent earnings before income taxes and fixed charges excluding capitalized interest. Fixed charges consist of interest expense, capitalized interest and the rental expense factor discussed above.

EX-21

Exhibit (21)

Clearwater Paper Corporation

Subsidiaries

Entity	Jurisdiction of Incorporation or formation	Name Under Which Entity Conducts Business
Cellu Tissue Holdings, Inc.	Delaware	Clearwater Paper Group
Cellu Tissue Corporation – Natural Dam	Delaware	Clearwater Paper – Natural Dam
Cellu Tissue Corporation – Neenah	Delaware	Clearwater Paper – Neenah
Cellu Tissue, LLC	Delaware	Clearwater Paper – East Hartford
Clearwater Paper – Wiggins, LLC	Delaware	None
Menominee Acquisition Corporation	Delaware	Clearwater Paper – Menominee
Cellu Tissue – Long Island, LLC	Delaware	Clearwater Paper – Long Island
Cellu Tissue Corporation – Oklahoma City	Delaware	Clearwater Paper – Oklahoma City
Interlake Acquisition Corporation Limited	Nova Scotia	Clearwater Paper – St. Catharines
Cellu Tissue – CityForest, LLC	Minnesota	Clearwater Paper – Ladysmith
Clearwater Fiber, LLC	Delaware	None

EX-23

Exhibit (23)

Consent of Independent Registered Public Accounting Firm

The Board of Directors
Clearwater Paper Corporation:

We consent to the incorporation by reference in the registration statements (Nos. 333‑156131, 333‑156133, 333‑156136, and 333‑172077) on Form S-8, and registration statements (No. 333‑173820 and 333-189092) on Form S‑4, of Clearwater Paper Corporation of our reports dated February 19, 2014, with respect to the consolidated balance sheets of Clearwater Paper Corporation and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, cash flows, and stockholders’ equity for each of the years in the three-year period ended December 31, 2013, and the effectiveness of internal control over financial reporting as of December 31, 2013, which reports appear in the December 31, 2013 annual report on Form 10‑K of Clearwater Paper Corporation.

/s/ KPMG LLP

Seattle, Washington
February 19, 2014

EX-24

Exhibit (24)

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

    /S/ FREDERIC W. CORRIGAN    

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

    /S/ BOH A. DICKEY    

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

     /S/ BETH E. FORD          

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

     /S/ KEVIN J. HUNT     

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

    /S/ WILLIAM D. LARSSON    

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

    /S/ MICHAEL T. RIORDAN    

DIRECTOR

Power of Attorney

I, the undersigned, appoint Michael S. Gadd or, in his absence or inability to act John D. Hertz or Johnathan D. Hunter, my attorney-in-fact for me and in my name, place and stead to execute for me on my behalf in my capacity as a Director of Clearwater Paper Corporation, the Annual Report on Form 10-K of Clearwater Paper Corporation for the fiscal year ended December 31, 2013, to be filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and any and all amendments thereto, hereby ratifying, approving and confirming all that any such attorney-in-fact may do by virtue of this Power of Attorney.

IN WITNESS WHEREOF, I have executed this Power of Attorney effective as of February 10, 2014.

    /S/ WILLIAM T. WEYERHAEUSER    

DIRECTOR

EX-31

Exhibit (31)

CERTIFICATION

I, Linda K. Massman, certify that:

1. I have reviewed this report on Form 10-K of Clearwater Paper Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 19, 2014	/S/    LINDA K. MASSMAN
	Linda K. Massman
	President and Chief Executive Officer

CERTIFICATION

I, John D. Hertz, certify that:

1. I have reviewed this report on Form 10-K of Clearwater Paper Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 19, 2014	/S/     JOHN D. HERTZ
	John D. Hertz
	Senior Vice President, Finance and Chief Financial Officer

EX-32

Exhibit (32)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Linda K. Massman, President and Chief Executive Officer of Clearwater Paper Corporation (the “Company”), certify, pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Annual Report of the Company on Form 10-K for the period ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    LINDA K. MASSMAN

Linda K. Massman

President and Chief Executive Officer

February 19, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, John D. Hertz, Senior Vice President, Finance and Chief Financial Officer of Clearwater Paper Corporation (the “Company”), certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Annual Report of the Company on Form 10-K for the period ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    JOHN D. HERTZ        

John D. Hertz

Senior Vice President, Finance and Chief Financial Officer

February 19, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings per Share

The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share:

	2013		2012		2011
Basic average common shares outstanding1	22,081,026		23,298,663		22,913,881
Incremental shares due to:
Restricted stock units	53,803		24,086		220,457
Performance shares	129,003		291,036		817,946
Diluted average common shares outstanding	22,263,832		23,613,785		23,952,284
Basic net earnings per common share	$	4.84	$	2.75	$	1.73
Diluted net earnings per common share	4.80		2.72		1.66
Anti-dilutive shares excluded from calculation	41,337		9,992		88,674

XML

Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction [Abstract]
United States	$ 38,900	$ 111,278	$ 72,156
Canada	(666)	313	(1,236)
Earnings before income taxes	$ 38,234	$ 111,591	$ 70,920

XML

Inventories (Detail) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Pulp, paperboard and tissue products		$ 182,715,000	$ 147,627,000
Materials and supplies		69,836,000	67,889,000
Logs, pulpwood, chips and sawdust		15,237,000	15,950,000
Inventories		267,788,000	231,466,000
Effect of LIFO inventory liquidation on income	$ 10,600,000

XML

Pre-tax Components of Net Periodic Cost (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,738	$ 2,485	$ 7,725
Interest cost	13,375	14,693	15,092
Expected return on plan assets	(18,352)	(19,685)	(19,532)
Amortization of prior service cost (credit)	337	634	1,193
Amortization of actuarial loss	14,840	12,085	8,382
Curtailments	769	477	2,776
Net periodic cost	12,707	10,689	15,636
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	552	693	702
Interest cost	4,730	5,815	6,857
Expected return on plan assets	0	0	0
Amortization of prior service cost (credit)	(502)	(2,680)	(1,795)
Amortization of actuarial loss	0	0	0
Curtailments	0	0	0
Net periodic cost	$ 4,780	$ 3,828	$ 5,764

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Provision (Benefit) for Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current
Federal	$ (75,119)	$ 27,724	$ 9,619
State	506	6,637	6,880
Foreign	263	229	(30)
Current Income Tax Expense (Benefit)	(74,350)	34,590	16,469
Deferred
Federal	10,177	16,243	12,865
State	(4,423)	(3,180)	1,931
Foreign	(125)	(193)	(19)
Deferred tax expense	5,629	12,870	14,777
Income tax provision	$ (68,721)	$ 47,460	$ 31,246

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Savings, Pension and Other Postretirement Employee Benefit Plans Multiemployer Defined Benefit Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plans, Withdrawal Obligation		$ 72,000,000
Entity Tax Identification Number	516031295
Contributions (in thousands)	6,061,000	5,961,000	5,917,000
IAM
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan Number	002
Multiemployer Plans, Certified Zone Status	Green	Green
Contributions (in thousands)	343,000	288,000	269,000
Multiemployer Plans, Surcharge	No
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date	May 31, 2016
USW
Defined Benefit Plan Disclosure [Line Items]
Entity Tax Identification Number	116166763
Multiemployer Plan Number	001
Multiemployer Plans, Certified Zone Status	Red	Red
Contributions (in thousands)	$ 5,718,000	$ 5,673,000	$ 5,648,000
Multiemployer Plans, Surcharge	No
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date	Aug. 31, 2014

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Nature of Operations and Basis of Presentation - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended	0 Months Ended
	Nov. 28, 2011	Dec. 31, 2013 location	Dec. 31, 2012 Chipping Facility Acquisition [Member]	Dec. 28, 2012 Restricted Cash, Non-Current [Member] Chipping Facility Acquisition [Member]	Dec. 28, 2012 Equipment [Member] Chipping Facility Acquisition [Member]	Dec. 28, 2012 Customer relationships Chipping Facility Acquisition [Member]	Dec. 28, 2012 Non-compete agreements Chipping Facility Acquisition [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Number Of Manufacturing Plants		14
Aggregate proceed from sale of property	$ 30
Other Nonrecurring Expense, Planned Permaent Facility Closure		6.0
Business acquisition cash paid			11
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High				1.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					6
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles						$ 4	$ 1

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

(In thousands)	2013			2012
Machinery and equipment	$	1,937,914		$	1,866,263
Buildings and improvements	304,971			299,642
Land improvements	54,277			52,929
Office and other equipment	11,951			10,946
Land	11,827			11,827
Construction in progress	40,204			37,160
	$	2,361,144		$	2,278,767
Less accumulated depreciation and amortization	(1,476,446		)	(1,401,390		)
	$	884,698		$	877,377

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Share Reconciliation of Number of Common Shares Used in Calculating Basic and Diluted Net Earnings Per Share (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Earnings Per Share [Abstract]
Basic average common shares outstanding									22,081,026	[1]	23,298,663	[1]	22,913,881	[1]
Incremental shares due to:
Restricted stock units									53,803		24,086		220,457
Performance shares									129,003		291,036		817,946
Diluted average common shares outstanding									22,263,832		23,613,785		23,952,284
Basic net earnings per common share	$ 3.91	$ 0.60	$ 0.52	$ (0.04)	$ 0.86	$ 0.82	$ 0.92	$ 0.16	$ 4.84		$ 2.75		$ 1.73
Diluted net earnings per common share	$ 3.87	$ 0.60	$ 0.52	$ (0.04)	$ 0.84	$ 0.80	$ 0.91	$ 0.16	$ 4.80		$ 2.72		$ 1.66
Anti-dilutive shares excluded from calculation									41,337		9,992		88,674

[1] Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. See Note 14, "Equity-Based Compensation Plans" for further discussion.

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Weighted Average Assumptions Used to Determine Net Periodic Cost (Benefit) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.15%	4.90%	5.70%
Expected return on plan assets	7.50%	8.00%	8.00%
Rate of salaried compensation increase	0.00%	0.00%	4.00%
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.05%	4.95%	5.60%
Expected return on plan assets	0.00%	0.00%	0.00%
Rate of salaried compensation increase	0.00%	0.00%	0.00%

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Segment Information Segment Information Summary of Geographic Information Regarding Net Sales (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013 Facilities	Dec. 31, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of production facilities within the united states									1
Net sales	$ 470,159	$ 487,845	$ 471,002	$ 460,824	$ 462,701	$ 480,233	$ 473,572	$ 457,798	$ 1,889,830	$ 1,874,304	$ 1,927,973
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									1,751,001	1,726,561	1,751,482
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									67,728	63,368	63,584
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									26,161	29,557	31,256
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									1,755	11,061	16,205
Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									10,899	9,655	5,426
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									7,924	7,786	6,246
Mexico
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									2,964	6,102	13,619
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									5,404	3,488	15,081
Other foreign countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									$ 15,994	$ 16,726	$ 25,074

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Income Tax Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Computed expected tax provision	$ 13,381	$ 39,063	$ 24,822
State and local taxes, net of federal income tax impact	1,279	4,398	1,482
Adjustment for state deferred tax rate	(762)	(742)	2,916
State investment tax credits	(2,263)	(9,077)	0
Federal credits and net operating losses	(10,234)	4,121	(412)
Federal manufacturing deduction	0	(3,288)	(2,443)
Uncertain tax positions	(69,144)	4,801	2,610
Non-deductible acquisition costs	0	0	(1,215)
Change in valuation allowances	(1,334)	6,932	2,796
U.S. tax provision on foreign operations	67	(33)	365
Other	289	1,285	325
Income tax provision	$ (68,721)	$ 47,460	$ 31,246
Effective tax rate	(179.70%)	42.50%	44.10%

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Long Term Asset Allocation Ranges (Details)	12 Months Ended
	Dec. 31, 2013
Domestic equities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, long-term assets, minimum	10.00%
Defined benefit plan, long-term assets, maximum	32.00%
International equities, including emerging markets
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, long-term assets, minimum	10.00%
Defined benefit plan, long-term assets, maximum	32.00%
Corporate bonds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, long-term assets, minimum	38.00%
Defined benefit plan, long-term assets, maximum	80.00%
Liquid reserves
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, long-term assets, minimum	0.00%
Defined benefit plan, long-term assets, maximum	1.00%

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Commitments and Contingencies Commitments and Contingencies Additional Information (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Leases Disclosure [Line Items]
Rent expense	$ 19.4	$ 16.6	$ 16.1

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Equity-Based Compensation Plans Employee Plans Equity Based Compensation Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee equity-based compensation	$ 6,876	$ 8,334	$ 6,658
Related tax benefit	2,049	2,886	2,290
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee equity-based compensation	1,801	970	1,212
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee equity-based compensation	$ 5,075	$ 7,364	$ 5,446

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Commitments and Contingencies Commitments and Contingencies Future Minimum Lease Payments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2013	$ 2,375
2014	2,420
2015	2,466
2016	2,513
2017	2,560
Thereafter	34,802
Total future minimum lease payments	47,136
Less interest portion	(23,141)
Present value of future minimum lease payments	23,995
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2013	17,335
2014	12,926
2015	9,823
2016	8,555
2017	6,141
Thereafter	10,478
Total future minimum lease payments	$ 65,258

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Estimated Future Benefit Payments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
2013	$ 17,837
2014	18,361
2015	18,942
2016	19,486
2017	19,932
2018-2022	103,091
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
2013	8,744
2014	8,947
2015	9,268
2016	9,190
2017	9,229
2018-2022	39,664
Expected Medicare Subsidy
Defined Benefit Plan Disclosure [Line Items]
2013	310
2014	313
2015	315
2016	313
2017	309
2018-2022	$ 1,436

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Other Amounts Recognized in Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service (cost) credit	$ 200
Amortization of actuarial loss	83,600
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net (gain) loss	(53,285)	12,989	43,207
Curtailments	(769)	(477)	(2,776)
Prior service cost (credit)	0	0	0
Amortization of prior service (cost) credit	(337)	(634)	(1,193)
Amortization of actuarial loss	(14,840)	(12,085)	(8,382)
Total recognized in other comprehensive (income) loss	(69,231)	(207)	30,856
Defined Benefit Plan Total Recognized In Net Periodic Benefit Costs And Other Comprehensive Income Before Tax	(56,524)	10,482	46,492
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net (gain) loss	(30,323)	3,150	(5,435)
Curtailments	0	0	0
Prior service cost (credit)	5,106	(5,278)	0
Amortization of prior service (cost) credit	502	2,680	1,795
Amortization of actuarial loss	0	0	0
Total recognized in other comprehensive (income) loss	(24,715)	552	(3,640)
Defined Benefit Plan Total Recognized In Net Periodic Benefit Costs And Other Comprehensive Income Before Tax	$ (19,935)	$ 4,380	$ 2,124

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Equity-Based Compensation Plans

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation Plans

NOTE 14 Equity-Based Compensation Plans

The Clearwater Paper Corporation 2008 Stock Incentive Plan, or Stock Plan, which has been approved by our stockholders, provides for equity-based awards in the form of restricted shares, restricted stock units, or RSUs, performance shares, stock options, or stock appreciation rights to selected employees, outside directors, and consultants of the company. The Stock Plan became effective on December 16, 2008. Under the Stock Plan, as amended, we are authorized to issue up to approximately 4.1 million shares, which includes approximately 0.7 million additional shares authorized in connection with our acquisition of Cellu Tissue that are available for issuance as equity-based awards only to any employees, outside directors, or consultants who were not employed on December 26, 2010 by Clearwater Paper Corporation or any of its subsidiaries. At December 31, 2013, approximately 1.9 million shares were available for future issuance under the Stock Plan.

We recognize equity-based compensation expense for all equity-based payment awards made to employees and directors, including RSUs and performance shares, based on estimated fair values and net of estimates of future forfeitures. Expense is classified in selling, general and administrative expense in our Consolidated Statements of Operations and is recognized on a straight-line basis over the requisite service periods of each award. Based on the terms of the Stock Plan, retirement-eligible employees become fully vested in outstanding awards on the later of that date they reach retirement eligibility or at the end of the first calendar year of each respective grant. We account for this feature when determining the service period over which to recognize expense for each grant of RSUs and performance shares.

Employee equity-based compensation expense was recognized as follows:

(In thousands)	2013		2012		2011
Restricted stock units	$	1,801	$	970	$	1,212
Performance shares	5,075		7,364		5,446
Total employee equity-based compensation	$	6,876	$	8,334	$	6,658
Related tax benefit	$	2,049	$	2,886	$	2,290

RESTRICTED STOCK UNITS

RSUs granted under our Stock Plan are generally subject to a vesting period of one to three years. RSU awards will accrue dividend equivalents based on dividends paid, if any, 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. RSUs granted under our Stock Plan do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement.

A summary of the status of outstanding unvested RSU awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	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	63,727		$	35.57	169,344		$	11.33	437,272		$	6.96
Granted	72,702		43.44		52,294		34.59		23,138		38.42
Vested	(30,190	)	39.21		(155,177	)	8.82		(286,486	)	6.88
Forfeited	(3,581	)	42.03		(2,734	)	34.07		(4,580	)	8.64
Unvested shares outstanding at   December 31	102,658		39.85		63,727		35.57		169,344		11.33
Aggregate intrinsic value (in   thousands)			$	5,390			$	2,496			$	6,030

During 2013, 126,726 shares of RSUs were distributed. Of these shares, 22,370 were RSU shares that were settled and distributed in the fourth quarter of 2013. The remaining 104,356 shares were RSU shares that were settled in prior years but distribution had been deferred to preserve tax deductibility for the company in the respective years because distribution of these shares would have resulted in certain executive compensation being above the Internal Revenue Code section 162(m) threshold for those years. After adjusting for minimum tax withholdings a net 73,154 shares were issued during 2013. The minimum tax withholdings payment made in 2013 in connection with issued shares was $2.6 million.

During 2012, 288,336 shares of RSUs were settled, of which 112,682 shares were settled and distributed. The remaining 175,654 shares were deferred under Internal Revenue Code section 162(m). Included in the total shares settled during 2012 were RSUs of which a portion vested each year over a three year period ending in January 2012. After adjusting for minimum tax withholdings and deferred shares, a net 78,029 shares were issued during 2012. The minimum tax withholdings payment made in 2012 in connection with issued shares was $1.3 million.

As of December 31, 2013 a total of 84,602 shares remain deferred under Internal Revenue Code section 162(m).

The fair value of each RSU share award granted during 2013 was estimated on the date of grant using the grant date market price of our common stock. The total fair value of share awards that vested during 2013 was $1.2 million.

As of December 31, 2013, there was $2.6 million of total unrecognized compensation cost related to outstanding RSU awards. The cost is expected to be recognized over a weighted average period of 2.0 years.

PERFORMANCE SHARES

Performance share awards granted under our Stock Plan have a three-year performance period, with generally the same service period, and shares are issued after the end of the period if the employee provides the requisite service and the performance measure is met. The performance measure is a comparison of the percentile ranking of our total stockholder return compared to the total stockholder return performance of a selected peer group. The performance measure is considered to represent a “market condition” under authoritative accounting guidance, and thus, the market condition is considered when determining the estimate of the fair value of the performance share awards. The number of shares actually issued, as a percentage of the amount subject to the performance share award, could range from 0%-200%.

Performance share awards granted under our Stock Plan do not represent common stock, and therefore the holders do not have voting rights unless and until shares are issued upon settlement. During the performance period, dividend equivalents accrue based on dividends paid, if any, and are converted into additional performance shares, which vest or are forfeited in the same manner as the underlying performance shares to which they relate. Generally, if an employee terminates prior to completing the requisite service period, all or a portion of their awards are forfeited and the previously recognized compensation cost is reversed. If an employee provides the requisite service through the end of the performance period, but the performance measure is not met, following authoritative guidance for awards with a market condition, previously recognized compensation cost is not reversed.

The fair value of performance share awards is estimated using a Monte Carlo simulation model. For performance shares granted in 2013, the following assumptions were used in our Monte Carlo model:

Closing price of stock on date of grant	$	47.30
Risk free rate	0.35		%
Measurement period	3 years
Volatility	30		%

In addition to the above assumptions, the dividend yields for all companies were assumed to be zero since dividends are included in the definition of total shareholder return.

A summary of the status of outstanding performance share awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding share awards at   January 1	392,655		$	44.67	749,538		$	19.52	638,870	$	13.00
Granted	124,513		63.46		150,865		40.24		110,668	57.18
Settled	(246,592	)	47.19		(499,680	)	5.65		—	—
Forfeited	(10,735	)	54.87		(8,068	)	42.15		—	—
Outstanding share awards at   December 31	259,841		50.87		392,655		44.67		749,538	19.52
Aggregate intrinsic value (in   thousands)			$	13,642			$	15,376		$	26,691

On December 31, 2013, the three-year performance period for 108,366 performance shares granted in 2011 ended. The requisite market condition performance measure was not met, and as such no shares will be paid or issued under these awards.

The service and performance period for 138,226 outstanding performance shares granted in 2010 ended on December 31, 2012. Those performance shares were settled and distributed during the first quarter of 2013. The number of shares actually distributed, as a percentage of the performance shares granted, was 101.4%. After adjusting for the related minimum tax withholdings, a net 93,744 shares were issued in the first quarter of 2013. The related minimum tax withholdings payment made in the first quarter of 2013 in connection with issued shares was $2.2 million.

As of December 31, 2013, there was $5.6 million of unrecognized compensation cost related to outstanding performance share awards. The cost is expected to be recognized over a weighted average period of 1.5 years.

DIRECTOR AWARDS

In connection with joining our Board of Directors, in January 2009 our outside directors at that time were granted an award of phantom common stock units, which were credited to an account established on behalf of each director and vested ratably over a three-year period with the final vesting in January 2012. Subsequent equity awards have been granted annually in May, or on a pro-rata basis as applicable, to our outside directors in the form of phantom common stock units as part of their annual compensation, which are credited to their accounts. These awards vest ratably over a one-year period. These accounts will be credited with additional phantom common stock units equal in value to dividends paid, if any, on the same amount of common stock. Upon separation from service as a director, the vested portion of the phantom common stock units held by the director in a stock unit account are converted to cash based upon the then market price of the common stock and paid to the director. Due to its cash-settlement feature, we account for these awards as liabilities rather than equity and recognize the equity-based compensation expense or income at the end of each reporting period based on the portion of the award that is vested and the increase or decrease in the value of our common stock. We recorded director equity-based compensation expense totaling $4.1 million, $1.4 million and $1.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, the liability amounts associated with director equity-based compensation included in "Other long-term obligations" on our Consolidated Balance Sheets were $13.2 million and $9.1 million, respectively.

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Property, Plant and Equipment Additional Information (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Depreciation	$ 83.3	$ 74.6	$ 70.6
Interest expense, capitalized		12.6	3.7
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Capital leased assets, gross	$ 23.1	$ 23.1

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Additional information [Abstract]

Future Minimum Commitments For Capital And Operating Leases

As of December 31, 2013, under current operating and capital lease contracts, we had future minimum lease payments as follows:

(In thousands)	Capital			Operating
2014	$	2,375		$	17,335
2015	2,420			12,926
2016	2,466			9,823
2017	2,513			8,555
2018	2,560			6,141
Thereafter	34,802			10,478
Total future minimum lease payments	$	47,136		$	65,258
Less interest portion	(23,141		)
Present value of future minimum lease payments	$	23,995

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Investments at Fair Value for Company Sponsored Pension Benefit Plans Within Fair Value Hierarchy (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 286,598,000	$ 254,556,000
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4,314,000	3,786,000
Common and collective trusts | International small cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	15,845,000	12,725,000
Common and collective trusts | Global/International equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	21,198,000	16,656,000
Common and collective trusts | Domestic equity – small/mid cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		17,339,000
Common and collective trusts | International equity emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	17,809,000	17,672,000
Common stock | Industrials
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,307,000	9,475,000
Common stock | Energy
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,663,000	1,966,000
Common stock | Consumer
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,002,000	8,270,000
Common stock | Healthcare
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,013,000	7,386,000
Common stock | Finance
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11,566,000	13,000,000
Common stock | Utilities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,711,000	2,305,000
Common stock | Information technology
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,785,000	6,828,000
Common stock | Foreign
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,175,000	6,078,000
Mutual funds | Foreign large blend
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18,492,000	18,907,000
Mutual funds | Long-term bond fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	137,031,000	114,557,000
Mutual funds | Mid-cap Growth Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18,009,000
Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,073,000
Investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	286,920,000	258,023,000
Payable held under securities lending agreement
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	(322,000)	(3,467,000)
Fair Value, Inputs, Level 1 | Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4,314,000	3,786,000
Fair Value, Inputs, Level 1 | Common and collective trusts | International small cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 1 | Common and collective trusts | Global/International equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 1 | Common and collective trusts | Domestic equity – small/mid cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Fair Value, Inputs, Level 1 | Common and collective trusts | International equity emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 1 | Common stock | Industrials
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,307,000	9,475,000
Fair Value, Inputs, Level 1 | Common stock | Energy
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,663,000	1,966,000
Fair Value, Inputs, Level 1 | Common stock | Consumer
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,002,000	8,270,000
Fair Value, Inputs, Level 1 | Common stock | Healthcare
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,013,000	7,386,000
Fair Value, Inputs, Level 1 | Common stock | Finance
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11,566,000	13,000,000
Fair Value, Inputs, Level 1 | Common stock | Utilities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,711,000	2,305,000
Fair Value, Inputs, Level 1 | Common stock | Information technology
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	8,785,000	6,828,000
Fair Value, Inputs, Level 1 | Common stock | Foreign
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,175,000	6,078,000
Fair Value, Inputs, Level 1 | Mutual funds | Foreign large blend
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18,492,000	18,907,000
Fair Value, Inputs, Level 1 | Mutual funds | Long-term bond fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	137,031,000	114,557,000
Fair Value, Inputs, Level 1 | Mutual funds | Mid-cap Growth Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18,009,000
Fair Value, Inputs, Level 1 | Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Fair Value, Inputs, Level 1 | Investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	232,068,000	192,558,000
Fair Value, Inputs, Level 2 | Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common and collective trusts | International small cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	15,845,000	12,725,000
Fair Value, Inputs, Level 2 | Common and collective trusts | Global/International equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	21,198,000	16,656,000
Fair Value, Inputs, Level 2 | Common and collective trusts | Domestic equity – small/mid cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		17,339,000
Fair Value, Inputs, Level 2 | Common and collective trusts | International equity emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	17,809,000	17,672,000
Fair Value, Inputs, Level 2 | Common stock | Industrials
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Energy
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Consumer
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Healthcare
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Finance
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Utilities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Information technology
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Common stock | Foreign
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Mutual funds | Foreign large blend
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Mutual funds | Long-term bond fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 2 | Mutual funds | Mid-cap Growth Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
Fair Value, Inputs, Level 2 | Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		1,073,000
Fair Value, Inputs, Level 2 | Investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	54,852,000	65,465,000
Fair Value, Inputs, Level 3 | Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common and collective trusts | International small cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common and collective trusts | Global/International equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common and collective trusts | Domestic equity – small/mid cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Fair Value, Inputs, Level 3 | Common and collective trusts | International equity emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Industrials
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Energy
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Consumer
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Healthcare
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Finance
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Utilities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Information technology
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Common stock | Foreign
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Mutual funds | Foreign large blend
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Mutual funds | Long-term bond fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fair Value, Inputs, Level 3 | Mutual funds | Mid-cap Growth Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
Fair Value, Inputs, Level 3 | Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		0
Fair Value, Inputs, Level 3 | Investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

XML

Other Long-Term Obligations (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Other Long Term Obligations [Abstract]

Other Long-Term Obligations

(In thousands)	2013		2012
Long-term lease obligations, net of current portion	$	24,815	$	25,240
Deferred compensation	14,149		9,939
Deferred proceeds	11,205		11,668
Other	2,773		4,063
	$	52,942	$	50,910

XML

Goodwill and Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Historical Cost	$ 60,931	$ 60,931
Accumulated Amortization	(20,153)	(13,178)
Net Balance	40,778	47,753
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	9 years 0 months	9 years 0 months
Historical Cost	53,957	53,957
Accumulated Amortization	(17,234)	(11,237)
Net Balance	36,723	42,720
Trade names and trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	10 years 0 months	10 years 0 months
Historical Cost	5,300	5,300
Accumulated Amortization	(1,590)	(1,060)
Net Balance	3,710	4,240
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Historical Cost	1,674	1,674
Accumulated Amortization	(1,329)	(881)
Net Balance	$ 345	$ 793
Minimum | Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	2 years 6 months
Maximum | Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years

XML

Changes in Benefit Obligation, Plan Assets and Funded Status for Company-Sponsored Benefit Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at end of year	$ 286,598,000	$ 254,556,000
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Noncurrent assets	4,488,000	0
Pension Benefit Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	333,257,000	307,658,000
Service cost	1,738,000	2,485,000	7,725,000
Interest cost	13,375,000	14,693,000	15,092,000
Plan changes	0	0
Actuarial losses (gains)	(36,859,000)	30,612,000
Medicare Part D subsidies received	0	0
Benefits paid	(18,123,000)	(22,191,000)
Benefit obligation at end of year	293,388,000	333,257,000	307,658,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	254,556,000	218,557,000
Actual return on plan assets	34,779,000	37,308,000
Employer contribution	15,386,000	20,882,000
Fair value of plan assets at end of year	286,598,000	254,556,000	218,557,000
Funded status at end of year	(6,790,000)	(78,701,000)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Noncurrent assets	4,488,000	0
Current liabilities	(364,000)	(281,000)
Noncurrent liabilities	(10,914,000)	(78,420,000)
Net amount recognized	(6,790,000)	(78,701,000)
Other Postretirement Employee Benefit Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	134,618,000	136,710,000
Service cost	552,000	693,000	702,000
Interest cost	4,730,000	5,815,000	6,857,000
Plan changes	5,106,000	(5,278,000)
Actuarial losses (gains)	(30,322,000)	3,151,000
Medicare Part D subsidies received	308,000	569,000
Benefits paid	(7,665,000)	(7,042,000)
Benefit obligation at end of year	107,327,000	134,618,000	136,710,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	19,000	18,000
Actual return on plan assets	1,000	1,000
Employer contribution	0	0
Fair value of plan assets at end of year	20,000	19,000	18,000
Funded status at end of year	(107,307,000)	(134,599,000)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Noncurrent assets	0	0
Current liabilities	(8,414,000)	(8,856,000)
Noncurrent liabilities	(98,893,000)	(125,743,000)
Net amount recognized	$ (107,307,000)	$ (134,599,000)

XML

Tax Credits and Losses Subject to Expiration by Major Jurisdictions (Details) (USD $) In Thousands, unless otherwise specified				12 Months Ended		12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Internal Revenue Service (IRS)	Dec. 31, 2013 Internal Revenue Service (IRS) Maximum	Dec. 31, 2013 Connecticut tax losses	Dec. 31, 2013 Connecticut tax losses Maximum	Dec. 31, 2013 Connecticut tax losses Minimum	Dec. 31, 2013 Georgia tax losses	Dec. 31, 2013 Georgia tax losses Maximum	Dec. 31, 2013 Georgia tax losses Minimum	Dec. 31, 2013 Idaho tax credits	Dec. 31, 2013 Idaho tax credits Maximum	Dec. 31, 2013 Idaho tax credits Minimum	Dec. 31, 2013 North Carolina tax credits	Dec. 31, 2013 North Carolina tax credits Maximum	Dec. 31, 2013 North Carolina tax credits Minimum	Dec. 31, 2013 Oklahoma tax losses	Dec. 31, 2013 Oklahoma tax losses Maximum	Dec. 31, 2013 Oklahoma tax losses Minimum	Dec. 31, 2013 Cellulosic Biofuel Producer Credit [Member]	Sep. 30, 2013 Cellulosic Biofuel Producer Credit [Member]	Dec. 31, 2013 Cellulosic Biofuel Producer Credit [Member] Internal Revenue Service (IRS) Maximum	Dec. 31, 2013 Foreign Tax Credit [Member] Internal Revenue Service (IRS) Maximum	Dec. 31, 2013 Foreign Tax Credit [Member] Internal Revenue Service (IRS) Minimum	Dec. 31, 2013 General Business Tax Credit Carryforward [Member] Internal Revenue Service (IRS) Maximum	Dec. 31, 2013 General Business Tax Credit Carryforward [Member] Internal Revenue Service (IRS) Minimum
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards, Expiration Date				Dec. 31, 2030		Dec. 31, 2031	Dec. 31, 2018		Dec. 31, 2031	Dec. 31, 2028								Dec. 31, 2032	Dec. 31, 2030
Deferred Tax Assets, Operating Loss Carryforwards, Domestic			$ 27,428
Deferred Tax Assets, Tax Credit Carryforwards, Foreign			3,832
Deferred Tax Assets, Tax Credit Carryforwards, Other			4,264
Tax credit carryforward, expiration date												Dec. 31, 2026	Dec. 31, 2013		Dec. 31, 2016	Dec. 31, 2015						Dec. 31, 2015	Dec. 31, 2019	Dec. 31, 2016	Dec. 31, 2030	Dec. 31, 2026
Tax Credit Carryforward, Amount	27,597	20,447									4,851			15,966						3,495	3,500
Operating Loss Carryforwards					$ 20,385			$ 7,267									$ 35,122

XML

Summary of Significant Accouting Policies Additional Information (Details) (USD $)	1 Months Ended	3 Months Ended								12 Months Ended						12 Months Ended													0 Months Ended			6 Months Ended	12 Months Ended	18 Months Ended	12 Months Ended
	Jul. 28, 2011	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Aug. 27, 2011	Aug. 26, 2011	Jan. 21, 2013 Senior Notes	Dec. 31, 2013 Consumer Products	Dec. 31, 2012 Consumer Products	Dec. 31, 2011 Consumer Products	Dec. 31, 2013 Kroger Company Consumer Products	Dec. 31, 2013 Land Improvements Minimum	Dec. 31, 2013 Land Improvements Maximum	Dec. 31, 2013 Building and Building Improvements Minimum	Dec. 31, 2013 Building and Building Improvements Maximum	Dec. 31, 2013 Machinery and Equipment Minimum	Dec. 31, 2013 Machinery and Equipment Maximum	Dec. 31, 2013 Office And Other Equipment Minimum	Dec. 31, 2013 Office And Other Equipment Maximum	Dec. 31, 2012 Other Assets	Feb. 07, 2014 Common Stock	Jan. 21, 2013 Common Stock	Mar. 02, 2013 Common Stock Accelerated Share Buyback Agreement [Member]	Sep. 16, 2013 Common Stock Accelerated Share Buyback Agreement [Member]	Dec. 31, 2013 Common Stock Open Market Share Repurchase [Member]	Dec. 31, 2012 Common Stock Open Market Share Repurchase [Member]	Dec. 31, 2013 Sales Revenue, Net [Member] Kroger Company Consumer Products	Dec. 27, 2010 Cellu Tissue Holdings Inc
Property, Plant and Equipment [Line Items]
Restricted Cash and Cash Equivalents, Noncurrent																												$ 1,500,000
Restricted cash		1,500,000				0				1,500,000	0
Allowance for doubtful accounts		1,900,000				1,600,000				1,900,000	1,600,000
Provision for doubtful accounts										1,500,000	200,000	1,000,000
Estimated useful life																				10 years	40 years	10 years	40 years	5 years	25 years	2 years	15 years
Goodwill		229,533,000				229,533,000				229,533,000	229,533,000																									229,500,000
Net sales		470,159,000	487,845,000	471,002,000	460,824,000	462,701,000	480,233,000	473,572,000	457,798,000	1,889,830,000	1,874,304,000	1,927,973,000				1,149,692,000	1,134,556,000	1,092,133,000	203,900,000
Percentage of total revenue from single customer																																			10.80%
Stock split ratio	2
Common stock, shares, outstanding (in shares)													22,746,920	11,373,460
Number of shares repurchased (in shares)																																1,039,513	1,030,657	853,470
Repurchase of common stock																																		30,000,000
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)																																$ 48.10	$ 48.51	$ 35.15
Debt instrument, principal amount															275,000,000
Common stock authorized (in shares)																													$ 100,000,000	$ 100,000,000	$ 50,000,000		$ 50,000,000	$ 30,000,000
Percentage of expected natural gas requirement covered under contract		55.00%								55.00%
Percentage of natural gas requirement covered under contract										16.00%	29.00%	2.00%

XML

Consolidated Statements of Stockholders' Equity Consolidate Statements of Stockholders' Equity (Parenthetical) (Accumulated Other Comprehensive (Loss) Income, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive (Loss) Income
Pension and OPEB, Tax	$ 36,346	$ (137)	$ (11,406)

XML

Roll Forward of Unrecognized Tax Benefits and Associated Interest and Penalties Included in Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	$ (75,213)
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(1,302)
Balance	78,699	74,464
Increase in prior year tax positions		4,426
Increase in current year tax positions	474	154
Reductions as a result of a lapse of the applicable statute of limitations		(345)
Balance	2,658	78,699
Gross Unrecognized Tax Benefits, Excluding Interest and Penalties
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(69,816)
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(525)
Balance	72,004	69,651
Increase in prior year tax positions		2,544
Increase in current year tax positions	469	154
Reductions as a result of a lapse of the applicable statute of limitations		(345)
Balance	2,132	72,004
Interest and Penalties
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(5,397)
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(777)
Balance	6,695	4,813
Increase in prior year tax positions		1,882
Increase in current year tax positions	5	0
Reductions as a result of a lapse of the applicable statute of limitations		0
Balance	$ 526	$ 6,695

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Reportable Segments Information

Following is a tabular presentation of business segment information for each of the past three years. Corporate information is included to reconcile segment data to the financial statements.

(In thousands)	2013			2012			2011
Segment net sales:
Consumer Products	$	1,149,692		$	1,134,556		$	1,092,133
Pulp and Paperboard	740,138			739,748			835,840
Total segment net sales	$	1,889,830		$	1,874,304		$	1,927,973
Operating income:
Consumer Products	$	52,799		$	93,347		$	42,806
Pulp and Paperboard1	95,781			103,910			92,827
	148,580			197,257			135,633
Corporate and eliminations1	(49,252		)	(51,870		)	(20,188		)
Income from operations	$	99,328		$	145,387		$	115,445
Depreciation and amortization:
Consumer Products	$	65,197		$	54,547		$	50,391
Pulp and Paperboard	23,266			23,113			26,073
Corporate	1,809			1,673			469
Total depreciation and amortization	$	90,272		$	79,333		$	76,933
Assets:
Consumer Products	$	1,215,919		$	1,178,438		$	1,081,988
Pulp and Paperboard	359,735			344,614			355,886
	1,575,654			1,523,052			1,437,874
Corporate	169,171			110,404			133,444
Total assets	$	1,744,825		$	1,633,456		$	1,571,318
Capital expenditures:
Consumer Products	$	46,647		$	183,330		$	117,059
Pulp and Paperboard	30,846			19,954			15,355
	77,493			203,284			132,414
Corporate	9,015			3,831			5,329
Total capital expenditures	$	86,508		$	207,115		$	137,743

¹  Results for Pulp and Paperboard for 2011 included additional expenses associated with the sale of the Lewiston, Idaho sawmill, which were partially offset by LIFO inventory liquidation and other adjustments recorded at the corporate level.

Summary of Geographic Information Regarding Net Sales

Geographic information regarding our net sales is summarized as follows:

(In thousands)	2013		2012		2011
United States	$	1,751,001	$	1,726,561	$	1,751,482
Japan	67,728		63,368		63,584
Canada	26,161		29,557		31,256
Korea	10,899		9,655		5,426
Australia	7,924		7,786		6,246
China	5,404		3,488		15,081
Mexico	2,964		6,102		13,619
Taiwan	1,755		11,061		16,205
Other foreign countries	15,994		16,726		25,074
Total net sales	$	1,889,830	$	1,874,304	$	1,927,973

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Financial Results by Quarter

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Financial Results by Quarter

NOTE 18 Financial Results by Quarter (Unaudited)

	Three Months Ended
	March 31						June 30						September 30						December 31
(In thousands— except per-share amounts)	2013			2012			2013			2012			2013			2012			2013			2012
Net sales	$	460,824		$	457,798		$	471,002		$	473,572		$	487,845		$	480,233		$	470,159		$	462,701
Costs and expenses:
Cost of sales	(414,209		)	(403,076		)	(414,521		)	(398,546		)	(441,237		)	(409,822		)	(401,404		)	(396,428		)
Selling, general and   administrative   expenses	(34,132		)	(29,074		)	(26,767		)	(30,529		)	(27,766		)	(30,649		)	(30,466		)	(30,793		)
Total operating   costs and expenses	(448,341		)	(432,150		)	(441,288		)	(429,075		)	(469,003		)	(440,471		)	(431,870		)	(427,221		)
Income from   operations	12,483			25,648			29,714			44,497			18,842			39,762			38,289			35,480
Net (loss) earnings	$	(882	)	$	3,726		$	11,658		$	21,489		$	13,317		$	19,064		$	82,862		$	19,852
Net (loss) earnings   per common share
Basic	$	(0.04	)	$	0.16		$	0.52		$	0.92		$	0.60		$	0.82		$	3.91		$	0.86
Diluted	(0.04		)	0.16			0.52			0.91			0.60			0.80			3.87			0.84

XML

Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

NOTE 17 Segment Information

We are organized in two reportable operating segments: Consumer Products and Pulp and Paperboard. Intersegment pulp transfers from our Pulp and Paperboard segment to our Consumer Products segment are transferred at cost. As a result, there are no eliminations required to reconcile our total consolidated net sales to the segments' total net sales.

Following is a tabular presentation of business segment information for each of the past three years. Corporate information is included to reconcile segment data to the financial statements.

(In thousands)	2013			2012			2011
Segment net sales:
Consumer Products	$	1,149,692		$	1,134,556		$	1,092,133
Pulp and Paperboard	740,138			739,748			835,840
Total segment net sales	$	1,889,830		$	1,874,304		$	1,927,973
Operating income:
Consumer Products	$	52,799		$	93,347		$	42,806
Pulp and Paperboard1	95,781			103,910			92,827
	148,580			197,257			135,633
Corporate and eliminations1	(49,252		)	(51,870		)	(20,188		)
Income from operations	$	99,328		$	145,387		$	115,445
Depreciation and amortization:
Consumer Products	$	65,197		$	54,547		$	50,391
Pulp and Paperboard	23,266			23,113			26,073
Corporate	1,809			1,673			469
Total depreciation and amortization	$	90,272		$	79,333		$	76,933
Assets:
Consumer Products	$	1,215,919		$	1,178,438		$	1,081,988
Pulp and Paperboard	359,735			344,614			355,886
	1,575,654			1,523,052			1,437,874
Corporate	169,171			110,404			133,444
Total assets	$	1,744,825		$	1,633,456		$	1,571,318
Capital expenditures:
Consumer Products	$	46,647		$	183,330		$	117,059
Pulp and Paperboard	30,846			19,954			15,355
	77,493			203,284			132,414
Corporate	9,015			3,831			5,329
Total capital expenditures	$	86,508		$	207,115		$	137,743

¹  Results for Pulp and Paperboard for 2011 included additional expenses associated with the sale of the Lewiston, Idaho sawmill, which were partially offset by LIFO inventory liquidation and other adjustments recorded at the corporate level.

Our manufacturing facilities and all other assets are located within the continental United States, except for one production facility in St. Catharines, Ontario, Canada. We sell and ship our products to customers in many foreign countries. Geographic information regarding our net sales is summarized as follows:

(In thousands)	2013		2012		2011
United States	$	1,751,001	$	1,726,561	$	1,751,482
Japan	67,728		63,368		63,584
Canada	26,161		29,557		31,256
Korea	10,899		9,655		5,426
Australia	7,924		7,786		6,246
China	5,404		3,488		15,081
Mexico	2,964		6,102		13,619
Taiwan	1,755		11,061		16,205
Other foreign countries	15,994		16,726		25,074
Total net sales	$	1,889,830	$	1,874,304	$	1,927,973

XML

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended														12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 Valuation Allowances, State Tax Losses [Member]	Dec. 31, 2012 Valuation Allowances, State Tax Losses [Member]	Dec. 31, 2011 Valuation Allowances, State Tax Losses [Member]	Dec. 31, 2013 Valuation allowances, State Tax Credits [Member]	Dec. 31, 2012 Valuation allowances, State Tax Credits [Member]	Dec. 31, 2011 Valuation allowances, State Tax Credits [Member]	Dec. 31, 2013 Valuation Allowance Of Deferred Tax Foreign	Dec. 31, 2012 Valuation Allowance Of Deferred Tax Foreign	Dec. 31, 2011 Valuation Allowance Of Deferred Tax Foreign	Dec. 31, 2013 Cellulosic Biofuel Producer Credit [Member]	Sep. 30, 2013 Cellulosic Biofuel Producer Credit [Member]	Dec. 31, 2013 Alternative Fuel Mixture Tax Credit [Member]
Tax Credit Carryforward [Line Items]
Statutory federal income tax rate	35.00%
Unrecognized excess tax benefits		$ 1,400,000
Excess tax benefits allocated to deferred tax assets	2,300,000
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	2,400,000	(15,800,000)	(900,000)
Tax expense, reflecting remeasurement of state deferred tax assets and liabilities	700,000	700,000
Change for uncertain tax positions	69,100,000														62,600,000
Deferred tax assets, gross	114,031,000	141,099,000
Deferred Tax Assets, Valuation Allowance	13,622,000	14,957,000
Change in valuation allowance	(1,300,000)	(6,900,000)	(2,800,000)	1,200,000	500,000	(2,500,000)	400,000	(8,200,000)	(2,200,000)	(300,000)	800,000	1,900,000
Unrecognized tax benefits , if recognized, would favorably impact effective tax rate	2,700,000
Accrued interest related to tax obligations	2,000,000	1,900,000	2,400,000
Federal and state credit carryforwards	$ 27,597,000	$ 20,447,000											$ 3,495,000	$ 3,500,000

XML

Financial Results by Quarter Financial Results by Quarter (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Financial Results by Quarter

Financial Results by Quarter (Unaudited)

	Three Months Ended
	March 31						June 30						September 30						December 31
(In thousands— except per-share amounts)	2013			2012			2013			2012			2013			2012			2013			2012
Net sales	$	460,824		$	457,798		$	471,002		$	473,572		$	487,845		$	480,233		$	470,159		$	462,701
Costs and expenses:
Cost of sales	(414,209		)	(403,076		)	(414,521		)	(398,546		)	(441,237		)	(409,822		)	(401,404		)	(396,428		)
Selling, general and   administrative   expenses	(34,132		)	(29,074		)	(26,767		)	(30,529		)	(27,766		)	(30,649		)	(30,466		)	(30,793		)
Total operating   costs and expenses	(448,341		)	(432,150		)	(441,288		)	(429,075		)	(469,003		)	(440,471		)	(431,870		)	(427,221		)
Income from   operations	12,483			25,648			29,714			44,497			18,842			39,762			38,289			35,480
Net (loss) earnings	$	(882	)	$	3,726		$	11,658		$	21,489		$	13,317		$	19,064		$	82,862		$	19,852
Net (loss) earnings   per common share
Basic	$	(0.04	)	$	0.16		$	0.52		$	0.92		$	0.60		$	0.82		$	3.91		$	0.86
Diluted	(0.04		)	0.16			0.52			0.91			0.60			0.80			3.87			0.84

XML

Supplemental Guarantor Financial Information

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor Financial Information

NOTE 19 Supplemental Guarantor Financial Information

All of our directly and indirectly owned, domestic subsidiaries guarantee the 2013 Notes and the 2010 Notes on a joint and several basis. As of December 31, 2013, the 2013 Notes and 2010 Notes were not guaranteed by Interlake Acquisition Corporation Limited, a foreign subsidiary. There are no significant restrictions on the ability of the guarantor subsidiaries to make distributions to Clearwater Paper, the issuer of the 2013 Notes and 2010 Notes. The following tables present the results of operations, financial position and cash flows of Clearwater Paper and its subsidiaries, the guarantor and non-guarantor entities, and the eliminations necessary to arrive at the information for Clearwater Paper on a consolidated basis.

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2013

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,408,941		$	480,599		$	29,494		$	(29,204	)	$	1,889,830
Cost and expenses:
Cost of sales	(1,203,945		)	(467,822		)	(28,808		)	29,204			(1,671,371		)
Selling, general and administrative expenses	(94,861		)	(22,918		)	(1,352		)	—			(119,131		)
Total operating costs and expenses	(1,298,806		)	(490,740		)	(30,160		)	29,204			(1,790,502		)
Income (loss) from operations	110,135			(10,141		)	(666		)	—			99,328
Interest expense, net	(44,031		)	(5		)	—			—			(44,036		)
Debt retirement costs	(17,058		)	—			—			—			(17,058		)
Earnings (loss) before income taxes	49,046			(10,146		)	(666		)	—			38,234
Income tax benefit (provision)	61,778			(4,420		)	(138		)	11,501			68,721
Equity in income of subsidiary	(15,370		)	(804		)	—			16,174			—
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Other comprehensive income, net of tax	57,600			—			—			—			57,600
Comprehensive income (loss)	$	153,054		$	(15,370	)	$	(804	)	$	27,675		$	164,555

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2012

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,375,732		$	492,074		$	26,478		$	(19,980	)	$	1,874,304
Cost and expenses:
Cost of sales	(1,149,413		)	(454,383		)	(24,056		)	19,980			(1,607,872		)
Selling, general and administrative expenses	(96,668		)	(22,268		)	(2,109		)	—			(121,045		)
Total operating costs and expenses	(1,246,081		)	(476,651		)	(26,165		)	19,980			(1,728,917		)
Income from operations	129,651			15,423			313			—			145,387
Interest expense, net	(33,796		)	—			—			—			(33,796		)
Earnings before income taxes	95,855			15,423			313			—			111,591
Income tax provision	(42,440		)	(14,362		)	(35		)	9,377			(47,460		)
Equity in income of subsidiary	1,339			278			—			(1,617		)	—
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Other comprehensive loss, net of tax	(428		)	—			—			—			(428		)
Comprehensive income	$	54,326		$	1,339		$	278		$	7,760		$	63,703

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2011

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,464,570		$	508,341		$	32,977		$	(77,915	)	$	1,927,973
Cost and expenses:
Cost of sales	(1,256,507		)	(493,338		)	(30,600		)	77,915			(1,702,530		)
Selling, general and administrative expenses	(61,794		)	(44,481		)	(3,723		)	—			(109,998		)
Total operating costs and expenses	(1,318,301		)	(537,819		)	(34,323		)	77,915			(1,812,528		)
Income (loss) from operations	146,269			(29,478		)	(1,346		)	—			115,445
Interest expense, net	(44,187		)	(622		)	—			—			(44,809		)
Other, net	(215		)	388			111			—			284
Earnings (loss) before income taxes	101,867			(29,712		)	(1,235		)	—			70,920
Income tax (provision) benefit	(34,018		)	1,857			(2,452		)	3,367			(31,246		)
Equity in income of subsidiary	(31,542		)	(3,687		)	—			35,229			—
Net earnings	$	36,307		$	(31,542	)	$	(3,687	)	$	38,596		$	39,674
Other comprehensive loss, net of tax	(16,913		)	—			—			—			(16,913		)
Comprehensive income	$	19,394		$	(31,542	)	$	(3,687	)	$	38,596		$	22,761

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	18,273		$	—		$	5,402		$	—		$	23,675
Restricted cash	1,500			—			—			—			1,500
Short-term investments	70,000			—			—			—			70,000
Receivables, net	119,278			38,063			2,700			(1,167		)	158,874
Taxes receivable	3,709			(15,882		)	324			22,352			10,503
Inventories	198,476			65,017			4,295			—			267,788
Deferred tax assets	42,289			6,094			5			(10,850		)	37,538
Prepaid expenses	4,704			695			124			—			5,523
Total current assets	458,229			93,987			12,850			10,335			575,401
Property, plant and equipment, net	636,662			231,225			16,811			—			884,698
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			39,619			1,159			—			40,778
Intercompany receivable (payable)	91,865			(63,932		)	(16,431		)	(11,502		)	—
Investment in subsidiary	196,763			5,575			—			(202,338		)	—
Pension assets	4,488			—			—			—			4,488
Other assets, net	8,772			1,155			—			—			9,927
TOTAL ASSETS	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	140,125		$	45,736		$	5,954		$	(1,167	)	$	190,648
Current liability for pensions and   other postretirement employee   benefits	8,778			—			—						8,778
Total current liabilities	148,903			45,736			5,954			(1,167		)	199,426
Long-term debt	650,000			—			—			—			650,000
Liability for pensions and other   postretirement employee benefits	109,807			—			—			—			109,807
Other long-term obligations	51,740			1,202			—			—			52,942
Accrued taxes	1,430			911			317			—			2,658
Deferred tax liabilities	59,338			63,017			2,543			—			124,898
Accumulated other comprehensive loss,   net of tax	(58,093		)	—			—			—			(58,093		)
Stockholders’ equity excluding   accumulated other comprehensive loss	663,187			196,763			5,575			(202,338		)	663,187
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	11,105		$	5		$	1,469		$	—		$	12,579
Short-term investments	20,000			—			—			—			20,000
Receivables, net	109,129			41,431			5,612			(2,029		)	154,143
Taxes receivable	20,712			116			—			—			20,828
Inventories	163,422			63,476			4,568			—			231,466
Deferred tax assets	11,750			4,595			—			791			17,136
Prepaid expenses	11,441			708			165			—			12,314
Total current assets	347,559			110,331			11,814			(1,238		)	468,466
Property, plant and equipment, net	618,076			242,818			16,483			—			877,377
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			46,379			1,374			—			47,753
Intercompany receivable (payable)	108,530			(91,881		)	(15,858		)	(791		)	—
Investment in subsidiary	209,431			6,204			—			(215,635		)	—
Other assets, net	9,948			379			—			—			10,327
TOTAL ASSETS	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	132,360		$	30,630		$	4,635		$	(2,029	)	$	165,596
Current liability for pensions and   other postretirement employee   benefits	9,137			—			—			—			9,137
Total current liabilities	141,497			30,630			4,635			(2,029		)	174,733
Long-term debt	523,933			—			—			—			523,933
Liability for pensions and other   postretirement employee benefits	204,163			—			—			—			204,163
Other long-term obligations	49,102			1,808			—			—			50,910
Accrued taxes	76,617			1,771			311			—			78,699
Deferred tax liabilities (assets)	(13,129		)	70,590			2,663			—			60,124
Accumulated other comprehensive loss,   net of tax	(115,693		)	—			—			—			(115,693		)
Stockholders’ equity excluding   accumulated other comprehensive loss	656,587			209,431			6,204			(215,635		)	656,587
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Adjustments to reconcile net earnings (loss)   to net cash flows from operating activities:
Depreciation and amortization	54,291			33,712			2,269			—			90,272
Non-cash adjustments to unrecognized taxes	(75,308		)	—			—			—			(75,308		)
Deferred tax provision (benefit)	3,185			(9,072		)	(125		)	11,641			5,629
Equity-based compensation expense	10,960									—			10,960
Employee benefit plans	10,131			—			—			—			10,131
Deferred issuance costs and discounts on long-term debt	4,964			—			—			—			4,964
Disposal of plant and equipment, net	201			1,291			1			—			1,493
Changes in working capital, net	(31,256		)	11,747			4,487			—			(15,022		)
Change in taxes receivable, net	17,003			15,998			(324		)	(22,352		)	10,325
Change in non-current accrued taxes, net	1,423			(860		)	6			—			569
Funding of qualified pension plans	(15,050		)	—			—			—			(15,050		)
Change in restricted cash	—			(32		)	—			—			(32		)
Other, net	(452		)	923			—			—			471
Net cash flows from operating activities	75,546			38,337			5,510			16,964			136,357
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	(50,000		)	—			—			—			(50,000		)
Additions to plant and equipment	(65,708		)	(22,562		)	(2,323		)	—			(90,593		)
Net cash flows from investing activities	(115,708		)	(22,562		)	(2,323		)	—			(140,593		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Proceeds from long-term debt	275,000			—			—			—			275,000
Repayment of long-term debt	(150,000		)	—			—			—			(150,000		)
Purchase of treasury stock	(100,000		)	—			—			—			(100,000		)
Investment from (to) parent	31,998			(15,780		)	746			(16,964		)	—
Payment for long-term debt issuance costs	(4,837		)	—			—			—			(4,837		)
Payment of tax withholdings on equity-   based payment arrangements	(4,831		)	—			—			—			(4,831		)
Net cash flows from financing activities	47,330			(15,780		)	746			(16,964		)	15,332
Increase (decrease) in cash	7,168			(5		)	3,933			—			11,096
Cash at beginning of period	11,105			5			1,469			—			12,579
Cash at end of period	$	18,273		$	—		$	5,402		$	—		$	23,675

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Adjustments to reconcile net earnings to net   cash flows from operating activities:
Depreciation and amortization	48,191			29,030			2,112			—			79,333
Non-cash adjustments to unrecognized taxes	3,275			—			—			—			3,275
Deferred tax provision (benefit)	9,840			4,009			(188		)	(791		)	12,870
Equity-based compensation expense	9,703			—			—			—			9,703
Employee benefit plans	9,366			—			—			—			9,366
Deferred issuance costs and discounts on   long-term debt	2,010			—			—			—			2,010
Disposal of plant and equipment, net	622			1,381			—			—			2,003
Changes in working capital, net	25,252			36,596			(567		)	—			61,281
Change in taxes receivable, net	(11,755		)	593			334			—			(10,828		)
Excess tax benefits from equity-based payment   arrangements	(15,837		)	—			—			—			(15,837		)
Change in non-current accrued taxes, net	(242		)	22			1,180			—			960
Funding of qualified pension plans	(20,627		)	—			—			—			(20,627		)
Change in restricted cash	769			—			—			—			769
Other, net	548			(264		)	—			—			284
Net cash flows from operating activities	115,869			72,706			3,149			6,969			198,693
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	35,001			—			—			—			35,001
Additions to plant and equipment	(190,296		)	(11,632		)	(1,848		)	—			(203,776		)
Cash paid for acquisitions, net of cash acquired	(9,264		)	—			—			—			(9,264		)
Proceeds from the sale of assets	—			1,035			—			—			1,035
Net cash flows from investing activities	(164,559		)	(10,597		)	(1,848		)	—			(177,004		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Purchase of treasury stock	(18,650		)	—			—			—			(18,650		)
Investment from (to) parent	75,198			(66,463		)	(1,766		)	(6,969		)	—
Payment for long-term debt issuance costs	(2		)	—			—			—			(2		)
Payment of tax withholdings on equity-based   payment arrangements	(13,234		)	—			—			—			(13,234		)
Excess tax benefits from equity-based payment   arrangements	15,837			—			—			—			15,837
Other, net	(1,500		)	—			—			—			(1,500		)
Net cash flows from financing activities	57,649			(66,463		)	(1,766		)	(6,969		)	(17,549		)
Increase (decrease) in cash	8,959			(4,354		)	(465		)	—			4,140
Cash at beginning of period	2,146			4,359			1,934			—			8,439
Cash at end of period	$	11,105		$	5		$	1,469		$	—		$	12,579

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2011

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings	$	36,307		$	(31,542	)	$	(3,687	)	$	38,596		$	39,674
Adjustments to reconcile net earnings to net   cash flows from operating activities:
Depreciation and amortization	45,439			29,364			2,130			—			76,933
Deferred tax provision (benefit)	(2,394		)	24,466			(2,815		)	(4,480		)	14,777
Equity-based compensation expense	8,134			—			—			—			8,134
Employee benefit plans	16,897			—			—			—			16,897
Deferred issuance costs and discounts on   long-term debt	215			—			—			—			215
Disposal of plant and equipment, net	324			672			2			—			998
Changes in working capital, net	(133,142		)	45,400			1,730			—			(86,012		)
Change in taxes receivable, net	(4,685		)	1,939			(217		)	3,317			354
Excess tax benefits from equity-based payment   arrangements	(885		)	—			—			—			(885		)
Change in non-current accrued taxes, net	2,453			—			—			—			2,453
Funding of qualified pension plans	(12,498		)	—			—			—			(12,498		)
Change in restricted cash	4,160			—			—			—			4,160
Other, net	3,195			—			—			—			3,195
Net cash flows from operating activities	(36,480		)	70,299			(2,857		)	37,433			68,395
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	71,094			—			—			—			71,094
Additions to plant and equipment	(117,525		)	(16,088		)	(456		)	—			(134,069		)
Proceeds from the sale of assets	12,826			—			—			—			12,826
Net cash flows from investing activities	(33,605		)	(16,088		)	(456		)	—			(50,149		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Repayment of long-term debt	—			(15,595		)	—			—			(15,595		)
Purchase of treasury stock	(11,350		)	—			—			—			(11,350		)
Investment from (to) parent	70,013			(36,432		)	3,852			(37,433		)	—
Payment for long-term debt issuance costs	(638		)	—			—			—			(638		)
Payment of tax withholdings on equity-based   payment arrangements	(2,400		)	—			—			—			(2,400		)
Excess tax benefits from equity-based payment   arrangements	885			—			—			—			885
Other, net	2			—			—			—			2
Net cash flows from financing activities	56,512			(52,027		)	3,852			(37,433		)	(29,096		)
Effect of exchange rate changes	—			—			361			—			361
Increase (decrease) in cash	(13,573		)	2,184			900			—			(10,489		)
Cash at beginning of period	15,719			2,175			1,034			—			18,928
Cash at end of period	$	2,146		$	4,359		$	1,934		$	—		$	8,439

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Summary of Significant Accouting Policies Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

SIGNIFICANT ESTIMATES

SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., which we refer to in this report as 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 net sales and expenses during the reporting period. Significant areas requiring the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, allocation of purchase price and fair value estimates for business combinations, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions.

SHORT-TERM INVESTMENTS AND RESTRICTED CASH

SHORT-TERM INVESTMENTS AND RESTRICTED CASH

Our short-term investments, which are classified as available for sale, are invested primarily in demand deposits, which have very short maturity periods, and therefore earn an interest rate commensurate with low-risk instruments. Due to our investments' short-term maturity periods there is no significant difference between the investments' cost and fair value. We do not attempt to hedge our exposure to interest rate risk for our short-term investments. Our restricted cash in which the underlying instrument has a term of greater than twelve months from the balance sheet date is classified as non-current and is included in “Other assets” on our Consolidated Balance Sheet. As of December 31, 2013, substantially all restricted cash balances were classified as current and included in "Restricted cash" on our Consolidated Balance Sheet, compared to approximately $1.5 million of restricted cash classified as non-current and included in "Other assets, net" as of December 31, 2012.

TRADE ACCOUNTS RECEIVABLE

TRADE ACCOUNTS RECEIVABLE

Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of December 31, 2013 and 2012, we had allowances for doubtful accounts of $1.9 million and $1.6 million, respectively. Bad debt expense, net, charged to selling, general and administrative expenses during 2013, 2012 and 2011 was $1.5 million, $0.2 million and $1.0 million, respectively. All other activity impacting the allowance for doubtful accounts was immaterial for all periods.

INVENTORIES

INVENTORIES

At December 31, 2013, our inventories are stated at the lower of market or current average cost using the average cost method. Prior to the November 2011 sale of our Lewiston, Idaho, sawmill, we used the last-in, first-out, or LIFO, method to determine cost for our logs, wood fiber and the majority of our lumber.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost, including assets acquired under capital lease obligations and any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Estimated useful lives generally range from 10 to 40 years for land improvements; 10 to 40 years for buildings and improvements; 5 to 25 years for machinery and equipment; and 2 to 15 years for office and other equipment. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new.

LONG-LIVED ASSETS

Our long-lived assets include property, plant and equipment and amortizable intangible assets. We review the carrying value of long-lived assets for impairment annually and when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment of long-lived assets exists when the carrying value is not considered to be recoverable through future undiscounted cash flows from operations and the carrying value of the asset or asset group exceeds the estimated fair value.

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLE ASSETS

Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill and intangible assets resulted from our acquisition of Cellu Tissue Holdings, or Cellu Tissue, on December 27, 2010. Intangible assets also resulted from our December 2012 acquisition of a wood chipping facility. We used estimates in determining and assigning the fair value of goodwill and intangible assets, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows and fair values of the related operations. Our intangible assets have definite lives and are amortized over their estimated useful lives. We assess our intangibles for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

As a result of our acquisition of Cellu Tissue in December 2010, we recorded $229.5 million of goodwill as included on our Consolidated Balance Sheets as of December 31, 2013 and 2012. All of the recorded goodwill was assigned to our Consumer Products segment and reporting unit. Goodwill is not amortized but is tested for impairment annually as of November 1, as well as any time when events suggest impairment may have occurred. In the event the carrying value of our consumer products reporting unit, including goodwill, exceeds the estimated fair value of the reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeds its implied fair value.

PENSION AND OTHER POSTRETIREMENT PLANS, POLICY [Policy Text Block]

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Two critical assumptions are the discount rate applied to pension plan obligations and the rate of return on plan assets. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, critical assumptions in determining OPEB expense are the discount rate applied to benefit obligations and the assumed health care cost trend rates used in the calculation of benefit obligations. We also participate in multiemployer defined benefit pension plans. We make contributions to these multiemployer plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees.

The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management's expectations. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes 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.

An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets.

The estimated net loss and prior service cost (credit) for the defined benefit pension and OPEB plans is amortized from accumulated other comprehensive loss into net periodic cost (benefit) in accordance with current accounting guidance.

Periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2013 and 2012, long-term assets are recorded for overfunded single-employer plans and liabilities are recorded for underfunded single-employer plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded single-employer plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability.

INCOME TAXES

INCOME TAXES

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate.

REVENUE RECOGNITION

REVENUE RECOGNITION

We recognize revenue 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 for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer.

In 2013 we had one customer in the Consumer Products segment, the Kroger Company, that accounted for approximately $204 million, or 10.8%, of our total company net sales. In 2012 and 2011, we did not have any single customer that accounted for 10% or more of our total net sales.

We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales in the same period as the related revenues are recognized. Provisions for these items are determined based on historical experience or specific customer arrangements.

Revenue is recognized net of any sales taxes collected. Sales taxes, when collected, are recorded as a current liability and remitted to the appropriate governmental entities.

ENVIRONMENTAL

ENVIRONMENTAL

As part of our corporate policy, we have an ongoing process to monitor, report on and comply with environmental requirements. Based on this ongoing process, accruals for environmental liabilities that are not within the scope of specific authoritative guidance related to accounting for asset retirement obligations or conditional asset retirement obligations are established in accordance with guidance related to accounting for contingencies. We estimate our environmental liabilities based on various assumptions and judgments, the specific nature of which varies in light of the particular facts and circumstances surrounding each environmental liability. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude and timing of required investigation, remediation and monitoring activities and the probable cost of these activities. Currently, we are not aware of any material environmental liabilities and have accrued for only specific environmental remediation costs that we have determined are probable and for which an amount can be reasonably estimated. Fees for professional services associated with environmental and legal issues are expensed as incurred.

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

On February 5, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

On January 17, 2013, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock, which was completed in 2013. The repurchases were authorized to be carried out by the utilization of a number of different methods, including but not limited to, open market purchases, accelerated buybacks and negotiated block purchases. On March 1, 2013, we entered into an accelerated stock buyback, or ASB, agreement with a major financial institution to repurchase an aggregate of $50.0 million of our outstanding common stock. In total, 1,039,513 shares of our outstanding common stock were delivered under the ASB agreement at an average repurchase price of $48.10 per share. In addition to the ASB agreement, we also made repurchases of 1,030,657 shares of our outstanding common stock on the open market at a total cost of $50.0 million, representing an an average price of $48.51 per share.

On July 28, 2011, we announced that our Board of Directors had authorized the repurchase of up to $30.0 million of our common stock. Under the stock repurchase program, we were authorized to repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. We completed this repurchase program in the fourth quarter of 2012. The total number of shares repurchased under this program was 853,470 at an aggregate cost of $30.0 million and an average price of $35.15 per share.

In addition, on July 28, 2011, we announced that our Board of Directors had declared a two-for-one stock split of our outstanding shares of common stock, which was effected in the form of a stock dividend distributed on August 26, 2011 to shareholders of record on August 12, 2011. On the August 26, 2011 distribution date, there were 11,373,460 shares of common stock outstanding. Immediately following the distribution date, there were 22,746,920 outstanding shares of common stock. All common share and per share amounts have been adjusted for the stock split effected in the form of a stock dividend.

DERIVATIVES

DERIVATIVES

We had no activity during the years ended December 31, 2013, 2012 and 2011 that required hedge or derivative accounting treatment. However, to partially mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of December 31, 2013, these contracts covered approximately 55% of the expected average monthly requirements for the first quarter of 2014. For the years ended December 31, 2013, 2012 and 2011, approximately 16%, 29% and 2%, respectively, of our natural gas volumes were supplied through firm price contracts. These contracts qualify for treatment as “normal purchases or normal sales” under authoritative guidance and thus require no mark-to-market adjustment.

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss) Income
Beginning Balance at Dec. 31, 2010	$ 468,349	$ 2	$ 310,820	$ 255,879		$ (98,352)
Shares, Outstanding at Dec. 31, 2010		22,958
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	39,674			39,674
Performance share and restricted stock unit awards (in shares)		144
Performance share and restricted stock unit awards	5,144		5,144
Pension and OPEB, net of tax of $(137) in 2012, $(11,406) in 2011, and $15,223 in 2010	(15,810)					(15,810)
Amortization of deferred taxes related to actuarial gain on other postretirement employee benefit obligations	(229)					(229)
Foreign currency translation adjustment	(874)	0	0	0	0	(874)
Purchase of treasury stock (in shares)					(333)
Purchase of treasury stock	(11,350)				(11,350)
Ending Balance at Dec. 31, 2011	484,904	2	315,964	295,553	(11,350)	(115,265)
Shares, Outstanding at Dec. 31, 2011		23,102			(333)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	64,131			64,131
Performance share and restricted stock unit awards (in shares)		739
Performance share and restricted stock unit awards	10,937		10,937
Pension and OPEB, net of tax of $(137) in 2012, $(11,406) in 2011, and $15,223 in 2010	(208)					(208)
Amortization of deferred taxes related to actuarial gain on other postretirement employee benefit obligations	(220)					(220)
Foreign currency translation adjustment	0
Purchase of treasury stock (in shares)					(520)
Purchase of treasury stock	(18,650)				(18,650)
Ending Balance at Dec. 31, 2012	540,894	2	326,901	359,684	(30,000)	(115,693)
Shares, Outstanding at Dec. 31, 2012		23,841			(853)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	106,955			106,955
Performance share and restricted stock unit awards (in shares)		167
Performance share and restricted stock unit awards	(355)		(355)			0
Pension and OPEB, net of tax of $(137) in 2012, $(11,406) in 2011, and $15,223 in 2010	(57,600)	0			0	57,600
Amortization of deferred taxes related to actuarial gain on other postretirement employee benefit obligations	0
Foreign currency translation adjustment	0
Purchase of treasury stock (in shares)					(2,071)
Purchase of treasury stock	(100,000)	0			(100,000)
Ending Balance at Dec. 31, 2013	$ 605,094	$ 2	$ 326,546	$ 466,639	$ (130,000)	$ (58,093)
Shares, Outstanding at Dec. 31, 2013		24,008			(2,924)

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Inventories (Tables)

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

(In thousands)	2013		2012
Pulp, paperboard and tissue products	$	182,715	$	147,627
Materials and supplies	69,836		67,889
Logs, pulpwood, chips and sawdust	15,237		15,950
	$	267,788	$	231,466

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Equity-Based Compensation Plans Equity-Based Compensation Plans Assumption Used in Monte Carlo Model to Estimate Fair Value of Performance Shares Awards (Details) (Performance shares, USD $)	12 Months Ended
	Dec. 31, 2013
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price of stock on date of grant	$ 47.30
Risk free rate	0.35%
Measurement period	3 years
Volatility	30.00%

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Equity-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Equity-Based Compensation Expense

Employee equity-based compensation expense was recognized as follows:

(In thousands)	2013		2012		2011
Restricted stock units	$	1,801	$	970	$	1,212
Performance shares	5,075		7,364		5,446
Total employee equity-based compensation	$	6,876	$	8,334	$	6,658
Related tax benefit	$	2,049	$	2,886	$	2,290

Summary of Status of Outstanding RSU Awards

A summary of the status of outstanding unvested RSU awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	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	63,727		$	35.57	169,344		$	11.33	437,272		$	6.96
Granted	72,702		43.44		52,294		34.59		23,138		38.42
Vested	(30,190	)	39.21		(155,177	)	8.82		(286,486	)	6.88
Forfeited	(3,581	)	42.03		(2,734	)	34.07		(4,580	)	8.64
Unvested shares outstanding at   December 31	102,658		39.85		63,727		35.57		169,344		11.33
Aggregate intrinsic value (in   thousands)			$	5,390			$	2,496			$	6,030

Assumption Used in Monte Carlo Model to Estimate Fair Value of Performance Shares Awards

The fair value of performance share awards is estimated using a Monte Carlo simulation model. For performance shares granted in 2013, the following assumptions were used in our Monte Carlo model:

Closing price of stock on date of grant	$	47.30
Risk free rate	0.35		%
Measurement period	3 years
Volatility	30		%

Summary of Status of Outstanding Performance Share Awards

A summary of the status of outstanding performance share awards as of December 31, 2013, 2012 and 2011, and changes during those years, is presented below:

	2013				2012				2011
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding share awards at   January 1	392,655		$	44.67	749,538		$	19.52	638,870	$	13.00
Granted	124,513		63.46		150,865		40.24		110,668	57.18
Settled	(246,592	)	47.19		(499,680	)	5.65		—	—
Forfeited	(10,735	)	54.87		(8,068	)	42.15		—	—
Outstanding share awards at   December 31	259,841		50.87		392,655		44.67		749,538	19.52
Aggregate intrinsic value (in   thousands)			$	13,642			$	15,376		$	26,691

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Goodwill and Intangible Assets Estimated Future Amortization Expense Related to Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
2014	$ 6,663
2015	6,608
2016	6,587
2017	6,587
2018	6,524
Thereafter	7,809
Net Balance	$ 40,778	$ 47,753

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Weighted Average Assumptions Used to Determine Benefit Obligation (Details)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	5.20%	4.15%	4.90%
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	5.05%	4.05%	4.95%

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Net sales	$ 470,159	$ 487,845	$ 471,002	$ 460,824	$ 462,701	$ 480,233	$ 473,572	$ 457,798	$ 1,889,830	$ 1,874,304	$ 1,927,973
Costs and expenses:
Cost of sales	(401,404)	(441,237)	(414,521)	(414,209)	(396,428)	(409,822)	(398,546)	(403,076)	(1,671,371)	(1,607,872)	(1,702,530)
Selling, general and administrative expenses	(30,466)	(27,766)	(26,767)	(34,132)	(30,793)	(30,649)	(30,529)	(29,074)	(119,131)	(121,045)	(109,998)
Total operating costs and expenses	(431,870)	(469,003)	(441,288)	(448,341)	(427,221)	(440,471)	(429,075)	(432,150)	(1,790,502)	(1,728,917)	(1,812,528)
Income from operations	38,289	18,842	29,714	12,483	35,480	39,762	44,497	25,648	99,328	145,387	115,445
Interest expense, net									(44,036)	(33,796)	(44,809)
Gain (loss) on extinguishment of debt									(17,058)	0	0
Other, net									0	0	284
Earnings before income taxes									38,234	111,591	70,920
Income tax provision									68,721	(47,460)	(31,246)
Net earnings	$ 82,862	$ 13,317	$ 11,658	$ (882)	$ 19,852	$ 19,064	$ 21,489	$ 3,726	$ 106,955	$ 64,131	$ 39,674
Net earnings per common share:
Basic (in dollars per share)	$ 3.91	$ 0.60	$ 0.52	$ (0.04)	$ 0.86	$ 0.82	$ 0.92	$ 0.16	$ 4.84	$ 2.75	$ 1.73
Diluted (in dollars per share)	$ 3.87	$ 0.60	$ 0.52	$ (0.04)	$ 0.84	$ 0.80	$ 0.91	$ 0.16	$ 4.80	$ 2.72	$ 1.66

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Supplemental Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2013

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,408,941		$	480,599		$	29,494		$	(29,204	)	$	1,889,830
Cost and expenses:
Cost of sales	(1,203,945		)	(467,822		)	(28,808		)	29,204			(1,671,371		)
Selling, general and administrative expenses	(94,861		)	(22,918		)	(1,352		)	—			(119,131		)
Total operating costs and expenses	(1,298,806		)	(490,740		)	(30,160		)	29,204			(1,790,502		)
Income (loss) from operations	110,135			(10,141		)	(666		)	—			99,328
Interest expense, net	(44,031		)	(5		)	—			—			(44,036		)
Debt retirement costs	(17,058		)	—			—			—			(17,058		)
Earnings (loss) before income taxes	49,046			(10,146		)	(666		)	—			38,234
Income tax benefit (provision)	61,778			(4,420		)	(138		)	11,501			68,721
Equity in income of subsidiary	(15,370		)	(804		)	—			16,174			—
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Other comprehensive income, net of tax	57,600			—			—			—			57,600
Comprehensive income (loss)	$	153,054		$	(15,370	)	$	(804	)	$	27,675		$	164,555

Clearwater Paper Corporation

Consolidating Statement of Operations and Comprehensive Income (Loss)

Twelve Months Ended December 31, 2012

				Guarantor			Non-Guarantor
(In thousands)	Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	1,375,732		$	492,074		$	26,478		$	(19,980	)	$	1,874,304
Cost and expenses:
Cost of sales	(1,149,413		)	(454,383		)	(24,056		)	19,980			(1,607,872		)
Selling, general and administrative expenses	(96,668		)	(22,268		)	(2,109		)	—			(121,045		)
Total operating costs and expenses	(1,246,081		)	(476,651		)	(26,165		)	19,980			(1,728,917		)
Income from operations	129,651			15,423			313			—			145,387
Interest expense, net	(33,796		)	—			—			—			(33,796		)
Earnings before income taxes	95,855			15,423			313			—			111,591
Income tax provision	(42,440		)	(14,362		)	(35		)	9,377			(47,460		)
Equity in income of subsidiary	1,339			278			—			(1,617		)	—
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Other comprehensive loss, net of tax	(428		)	—			—			—			(428		)
Comprehensive income	$	54,326		$	1,339		$	278		$	7,760		$	63,703

Condensed Consolidating Balance Sheet

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	18,273		$	—		$	5,402		$	—		$	23,675
Restricted cash	1,500			—			—			—			1,500
Short-term investments	70,000			—			—			—			70,000
Receivables, net	119,278			38,063			2,700			(1,167		)	158,874
Taxes receivable	3,709			(15,882		)	324			22,352			10,503
Inventories	198,476			65,017			4,295			—			267,788
Deferred tax assets	42,289			6,094			5			(10,850		)	37,538
Prepaid expenses	4,704			695			124			—			5,523
Total current assets	458,229			93,987			12,850			10,335			575,401
Property, plant and equipment, net	636,662			231,225			16,811			—			884,698
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			39,619			1,159			—			40,778
Intercompany receivable (payable)	91,865			(63,932		)	(16,431		)	(11,502		)	—
Investment in subsidiary	196,763			5,575			—			(202,338		)	—
Pension assets	4,488			—			—			—			4,488
Other assets, net	8,772			1,155			—			—			9,927
TOTAL ASSETS	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	140,125		$	45,736		$	5,954		$	(1,167	)	$	190,648
Current liability for pensions and   other postretirement employee   benefits	8,778			—			—						8,778
Total current liabilities	148,903			45,736			5,954			(1,167		)	199,426
Long-term debt	650,000			—			—			—			650,000
Liability for pensions and other   postretirement employee benefits	109,807			—			—			—			109,807
Other long-term obligations	51,740			1,202			—			—			52,942
Accrued taxes	1,430			911			317			—			2,658
Deferred tax liabilities	59,338			63,017			2,543			—			124,898
Accumulated other comprehensive loss,   net of tax	(58,093		)	—			—			—			(58,093		)
Stockholders’ equity excluding   accumulated other comprehensive loss	663,187			196,763			5,575			(202,338		)	663,187
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,626,312		$	307,629		$	14,389		$	(203,505	)	$	1,744,825

Clearwater Paper Corporation

Consolidating Balance Sheet

At December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
ASSETS
Current assets:
Cash	$	11,105		$	5		$	1,469		$	—		$	12,579
Short-term investments	20,000			—			—			—			20,000
Receivables, net	109,129			41,431			5,612			(2,029		)	154,143
Taxes receivable	20,712			116			—			—			20,828
Inventories	163,422			63,476			4,568			—			231,466
Deferred tax assets	11,750			4,595			—			791			17,136
Prepaid expenses	11,441			708			165			—			12,314
Total current assets	347,559			110,331			11,814			(1,238		)	468,466
Property, plant and equipment, net	618,076			242,818			16,483			—			877,377
Goodwill	229,533			—			—			—			229,533
Intangible assets, net	—			46,379			1,374			—			47,753
Intercompany receivable (payable)	108,530			(91,881		)	(15,858		)	(791		)	—
Investment in subsidiary	209,431			6,204			—			(215,635		)	—
Other assets, net	9,948			379			—			—			10,327
TOTAL ASSETS	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456
LIABILITIES AND STOCKHOLDERS’   EQUITY
Current liabilities:
Accounts payable and accrued   liabilities	$	132,360		$	30,630		$	4,635		$	(2,029	)	$	165,596
Current liability for pensions and   other postretirement employee   benefits	9,137			—			—			—			9,137
Total current liabilities	141,497			30,630			4,635			(2,029		)	174,733
Long-term debt	523,933			—			—			—			523,933
Liability for pensions and other   postretirement employee benefits	204,163			—			—			—			204,163
Other long-term obligations	49,102			1,808			—			—			50,910
Accrued taxes	76,617			1,771			311			—			78,699
Deferred tax liabilities (assets)	(13,129		)	70,590			2,663			—			60,124
Accumulated other comprehensive loss,   net of tax	(115,693		)	—			—			—			(115,693		)
Stockholders’ equity excluding   accumulated other comprehensive loss	656,587			209,431			6,204			(215,635		)	656,587
TOTAL LIABILITIES AND   STOCKHOLDERS’ EQUITY	$	1,523,077		$	314,230		$	13,813		$	(217,664	)	$	1,633,456

Condensed Consolidating Statement of Cash Flows

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2013

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings (loss)	$	95,454		$	(15,370	)	$	(804	)	$	27,675		$	106,955
Adjustments to reconcile net earnings (loss)   to net cash flows from operating activities:
Depreciation and amortization	54,291			33,712			2,269			—			90,272
Non-cash adjustments to unrecognized taxes	(75,308		)	—			—			—			(75,308		)
Deferred tax provision (benefit)	3,185			(9,072		)	(125		)	11,641			5,629
Equity-based compensation expense	10,960									—			10,960
Employee benefit plans	10,131			—			—			—			10,131
Deferred issuance costs and discounts on long-term debt	4,964			—			—			—			4,964
Disposal of plant and equipment, net	201			1,291			1			—			1,493
Changes in working capital, net	(31,256		)	11,747			4,487			—			(15,022		)
Change in taxes receivable, net	17,003			15,998			(324		)	(22,352		)	10,325
Change in non-current accrued taxes, net	1,423			(860		)	6			—			569
Funding of qualified pension plans	(15,050		)	—			—			—			(15,050		)
Change in restricted cash	—			(32		)	—			—			(32		)
Other, net	(452		)	923			—			—			471
Net cash flows from operating activities	75,546			38,337			5,510			16,964			136,357
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	(50,000		)	—			—			—			(50,000		)
Additions to plant and equipment	(65,708		)	(22,562		)	(2,323		)	—			(90,593		)
Net cash flows from investing activities	(115,708		)	(22,562		)	(2,323		)	—			(140,593		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Proceeds from long-term debt	275,000			—			—			—			275,000
Repayment of long-term debt	(150,000		)	—			—			—			(150,000		)
Purchase of treasury stock	(100,000		)	—			—			—			(100,000		)
Investment from (to) parent	31,998			(15,780		)	746			(16,964		)	—
Payment for long-term debt issuance costs	(4,837		)	—			—			—			(4,837		)
Payment of tax withholdings on equity-   based payment arrangements	(4,831		)	—			—			—			(4,831		)
Net cash flows from financing activities	47,330			(15,780		)	746			(16,964		)	15,332
Increase (decrease) in cash	7,168			(5		)	3,933			—			11,096
Cash at beginning of period	11,105			5			1,469			—			12,579
Cash at end of period	$	18,273		$	—		$	5,402		$	—		$	23,675

Clearwater Paper Corporation

Consolidating Statement of Cash Flows

Twelve Months Ended December 31, 2012

(In thousands)	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING   ACTIVITIES
Net earnings	$	54,754		$	1,339		$	278		$	7,760		$	64,131
Adjustments to reconcile net earnings to net   cash flows from operating activities:
Depreciation and amortization	48,191			29,030			2,112			—			79,333
Non-cash adjustments to unrecognized taxes	3,275			—			—			—			3,275
Deferred tax provision (benefit)	9,840			4,009			(188		)	(791		)	12,870
Equity-based compensation expense	9,703			—			—			—			9,703
Employee benefit plans	9,366			—			—			—			9,366
Deferred issuance costs and discounts on   long-term debt	2,010			—			—			—			2,010
Disposal of plant and equipment, net	622			1,381			—			—			2,003
Changes in working capital, net	25,252			36,596			(567		)	—			61,281
Change in taxes receivable, net	(11,755		)	593			334			—			(10,828		)
Excess tax benefits from equity-based payment   arrangements	(15,837		)	—			—			—			(15,837		)
Change in non-current accrued taxes, net	(242		)	22			1,180			—			960
Funding of qualified pension plans	(20,627		)	—			—			—			(20,627		)
Change in restricted cash	769			—			—			—			769
Other, net	548			(264		)	—			—			284
Net cash flows from operating activities	115,869			72,706			3,149			6,969			198,693
CASH FLOWS FROM INVESTING   ACTIVITIES
Change in short-term investments, net	35,001			—			—			—			35,001
Additions to plant and equipment	(190,296		)	(11,632		)	(1,848		)	—			(203,776		)
Cash paid for acquisitions, net of cash acquired	(9,264		)	—			—			—			(9,264		)
Proceeds from the sale of assets	—			1,035			—			—			1,035
Net cash flows from investing activities	(164,559		)	(10,597		)	(1,848		)	—			(177,004		)
CASH FLOWS FROM FINANCING   ACTIVITIES
Purchase of treasury stock	(18,650		)	—			—			—			(18,650		)
Investment from (to) parent	75,198			(66,463		)	(1,766		)	(6,969		)	—
Payment for long-term debt issuance costs	(2		)	—			—			—			(2		)
Payment of tax withholdings on equity-based   payment arrangements	(13,234		)	—			—			—			(13,234		)
Excess tax benefits from equity-based payment   arrangements	15,837			—			—			—			15,837
Other, net	(1,500		)	—			—			—			(1,500		)
Net cash flows from financing activities	57,649			(66,463		)	(1,766		)	(6,969		)	(17,549		)
Increase (decrease) in cash	8,959			(4,354		)	(465		)	—			4,140
Cash at beginning of period	2,146			4,359			1,934			—			8,439
Cash at end of period	$	11,105		$	5		$	1,469		$	—		$	12,579

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common Stock, Par or Stated Value Per Share	$ 0.00010	$ 0.0001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	24,007,581	23,840,683
Treasury stock, shares (in shares)	2,923,640	853,470

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Net Deferred Tax Assets (Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Disclosure Net Deferred Tax Assets Liabilities [Abstract]
Current deferred tax assets	$ 37,538	$ 20,473
Current deferred tax liabilities	0	(3,337)
Net current deferred tax assets	37,538	17,136
Non-current deferred tax assets	62,871	110,762
Deferred Tax Liabilities, Gross, Noncurrent	187,769	170,886
Non-current deferred tax liabilities	(124,898)	(60,124)
Deferred Tax Liabilities, Net	$ (87,360)	$ (42,988)

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction

Earnings (loss) before income taxes is comprised of the following amounts in each tax jurisdiction:

(In thousands)	2013			2012		2011
United States	$	38,900		$	111,278	$	72,156
Canada	(666		)	313		(1,236		)
Earnings before income taxes	$	38,234		$	111,591	$	70,920

Provision (Benefit) for Income Taxes

The income tax (benefit) provision is comprised of the following:

(In thousands)	2013			2012			2011
Current
Federal	$	(75,119	)	$	27,724		$	9,619
State	506			6,637			6,880
Foreign	263			229			(30		)
	(74,350		)	34,590			16,469
Deferred
Federal	10,177			16,243			12,865
State	(4,423		)	(3,180		)	1,931
Foreign	(125		)	(193		)	(19		)
	5,629			12,870			14,777
Income tax (benefit) provision	$	(68,721	)	$	47,460		$	31,246

Income Tax Reconciliation

The income tax benefit or provisions differ from the amounts computed by applying the statutory federal income tax rate of 35.0% to earnings before income taxes due to the following:

(In thousands)	2013			2012			2011
Computed expected tax provision	$	13,381		$	39,063		$	24,822
State and local taxes, net of federal income tax impact	1,279			4,398			1,482
Adjustment for state deferred tax rate	(762		)	(742		)	2,916
State investment tax credits	(2,263		)	(9,077		)	—
Federal credits and net operating losses	(10,234		)	4,121			(412		)
Federal manufacturing deduction	—			(3,288		)	(2,443		)
Uncertain tax positions	(69,144		)	4,801			2,610
Non-deductible acquisition costs	—			—			(1,215		)
Change in valuation allowances	(1,334		)	6,932			2,796
U.S. tax provision on foreign operations	67			(33		)	365
Other	289			1,285			325
Income tax provision	$	(68,721	)	$	47,460		$	31,246
Effective tax rate	(179.7		)%	42.5		%	44.1		%

Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities

(In thousands)	2013			2012
Deferred tax assets:
Employee benefits	$	8,612		$	8,630
Postretirement employee benefits	41,515			52,751
Incentive compensation	8,937			9,130
Inventories	5,898			—
Pensions	152			31,140
Federal and state credit carryforwards	27,597			20,447
Net operating losses	13,930			7,649
Federal benefit from state taxes resulting from uncertain tax positions	—			5,595
Other	7,390			5,757
Total deferred tax assets	$	114,031		$	141,099
Valuation allowance	(13,622		)	(14,957		)
Deferred tax assets, net of valuation allowance	$	100,409		$	126,142
Deferred tax liabilities:
Plant and equipment	$	(178,227	)	$	(157,973	)
Intangible assets	(9,542		)	(10,843		)
Inventories	—			(314		)
Total deferred tax liabilities	(187,769		)	(169,130		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

Net deferred tax assets (liabilities) consist of:

(In thousands)	2013			2012
Current deferred tax assets	$	37,538		$	20,473
Current deferred tax liabilities	—			(3,337		)
Net current deferred tax assets	37,538			17,136
Non-current deferred tax assets	62,871			110,762
Non-current deferred tax liabilities	(187,769		)	(170,886		)
Net non-current deferred tax liabilities	(124,898		)	(60,124		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

Tax Years Subject to Examination by Major Taxing Jurisdictions

Tax years subject to examination by major taxing jurisdictions are as follows:

Jurisdiction	Years
United States	2008 - 2013
Canada	2011 - 2013
Arkansas	2010 - 2013
California	2009 - 2013
Georgia	2010 - 2013
Idaho	2011 - 2013
Illinois	2008 - 2013
Wisconsin	2009 - 2013

Tax Credits and Losses Subject to Expiration by Major Taxing Jurisdictions

Tax credits and losses subject to expiration by major taxing jurisdictions are as follows (dollars in thousands):

Jurisdiction	Gross Values		Years
United States
Net operating losses	$	27,428	2030 - 2033
Foreign tax credits	3,832		2016 - 2019
Cellulosic biofuel credits	3,495		2015
Other federal tax credits	4,264		2026 - 2033
Connecticut tax losses	20,385		2018 - 2033
Georgia tax losses	7,267		2027 - 2033
Idaho tax credits	4,851		2013 - 2027
North Carolina tax credits	15,966		2015 - 2017
Oklahoma tax losses	35,122		2030 - 2033

Roll Forward of Unrecognized Tax Benefits and Associated Interest and Penalties Included in the Accrued Taxes line item in non-current liabilities

The following presents a roll forward of our unrecognized tax benefits and associated interest and penalties, as included in the Accrued Taxes line item in non-current liabilities in our Consolidated Balance Sheets.

(In thousands)	Gross Unrecognized Tax Benefits, Excluding Interest and Penalties			Interest and Penalties			Total Gross Unrecognized Tax Benefits
Balance at January 1, 2012	$	69,651		$	4,813		$	74,464
Increase in prior year tax positions	2,544			1,882			4,426
Increase in current year tax positions	154			—			154
Reductions as a result of a lapse of the applicable statute of limitations	(345		)	—			(345		)
Balance at December 31, 2012	$	72,004		$	6,695		$	78,699
Decrease in prior year tax positions	(69,816		)	(5,397		)	(75,213		)
Decrease due to settlements	(525		)	(777		)	(1,302		)
Increase in current year tax positions	469			5			474
Balance at December 31, 2013	$	2,132		$	526		$	2,658

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Other Long-Term Obligations (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Disclosure Other Long Term Obligations [Abstract]
Long-term lease obligations, net of current portion	$ 24,815	$ 25,240
Deferred proceeds	11,205	11,668
Deferred compensation	14,149	9,939
Other	2,773	4,063
Other long-term obligations	$ 52,942	$ 50,910

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Other Long-Term Obligations

12 Months Ended

Dec. 31, 2013

Disclosure Other Long Term Obligations [Abstract]

Other Long-Term Obligations

NOTE 10 Other Long-Term Obligations

(In thousands)	2013		2012
Long-term lease obligations, net of current portion	$	24,815	$	25,240
Deferred compensation	14,149		9,939
Deferred proceeds	11,205		11,668
Other	2,773		4,063
	$	52,942	$	50,910

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Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities

(In thousands)	2013		2012
Trade accounts payable	$	108,192	$	75,949
Accrued wages, salaries and employee benefits	38,563		42,491
Accrued interest	9,691		5,242
Accrued utilities	8,309		8,205
Accrued discounts and allowances	6,410		4,785
Accrued taxes other than income taxes payable	6,322		6,993
Other	13,161		21,931
	$	190,648	$	165,596

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Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 13 Earnings Per Share

Basic and diluted earnings per common share are computed by dividing net earnings by the weighted average number of common shares outstanding and by the weighted average number of dilutive potential common shares, in accordance with accounting guidance related to earnings per share. The following table reconciles the number of common shares used in calculating the basic and diluted net earnings per share:

	2013		2012		2011
Basic average common shares outstanding1	22,081,026		23,298,663		22,913,881
Incremental shares due to:
Restricted stock units	53,803		24,086		220,457
Performance shares	129,003		291,036		817,946
Diluted average common shares outstanding	22,263,832		23,613,785		23,952,284
Basic net earnings per common share	$	4.84	$	2.75	$	1.73
Diluted net earnings per common share	4.80		2.72		1.66
Anti-dilutive shares excluded from calculation	41,337		9,992		88,674

¹  Basic average common shares outstanding include restricted stock awards that are fully vested, but are deferred for future issuance. See Note 14, "Equity-Based Compensation Plans" for further discussion.

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Amounts Recognized (Pre-tax) in Accumulated Other Comprehensive Loss (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Pension Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net loss	$ 109,218	$ 177,343
Prior service cost (credit)	308	1,414
Net amount recognized	109,526	178,757
Other Postretirement Employee Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net loss	(5,915)	24,408
Prior service cost (credit)	(896)	(6,504)
Net amount recognized	$ (6,811)	$ 17,904

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$ 106,955	$ 64,131	$ 39,674
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	90,272	79,333	76,933
Other Noncash Income Tax Expense	(75,308)	3,275	0
Deferred tax expense	5,629	12,870	14,777
Equity-based compensation expense	10,960	9,703	8,134
Employee benefit plans	10,131	9,366	16,897
Amortization of Financing Costs and Discounts	4,964	2,010	215
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	1,493	2,003	998
Changes in working capital, net	(15,022)	61,281	(86,012)
Change in taxes receivable, net	10,325	(10,828)	354
Excess tax benefits from equity-based payment arrangements	0	(15,837)	(885)
Change in non-current accrued taxes	569	960	2,453
Funding of qualified pension plans	(15,050)	(20,627)	(12,498)
Change in restricted cash	(32)	769	4,160
Other, net	471	284	3,195
Net cash provided by operating activities	136,357	198,693	68,395
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	(50,000)	35,001	71,094
Additions to plant and equipment	(90,593)	(203,776)	(134,069)
Cash paid for acquisitions, net of cash acquired	0	(9,264)	0
Proceeds from sale of assets	0	1,035	12,826
Net cash used for investing activities	(140,593)	(177,004)	(50,149)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	275,000	0	0
Repayment of Cellu Tissue debt	(150,000)	0	(15,595)
Purchase of treasury stock	(100,000)	(18,650)	(11,350)
Excess tax benefits from equity-based payment arrangements	0	15,837	885
Payments of Debt Issuance Costs	(4,837)	(2)	(638)
Payment of tax withholdings on equity-based payment arrangements	(4,831)	(13,234)	(2,400)
Other, net	0	(1,500)	2
Net cash (used for) provided by financing activities	15,332	(17,549)	(29,096)
Effect of exchange rate changes	0	0	361
Increase (decrease) in cash	11,096	4,140	(10,489)
Cash at beginning of period	12,579	8,439	18,928
Cash at end of period	23,675	12,579	8,439
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	36,147	30,086	43,595
Cash paid for income taxes	3,256	18,719	43,085
Cash received from income tax refunds	1,577	2,220	33,808
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES:
Increase in accrued plant and equipment	(4,085)	3,339	3,674
Property acquired under capital lease	$ 0	$ 0	$ 12,687

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2011
Net earnings	$ 106,955		$ 64,131	$ 39,674
Defined benefit pension and other postretirement employee benefits:
Net (loss) gain arising during the period, net of tax benefit (expense) of $6,359, $15,830, and $(11,188)	51,262		(9,780)	(21,942)
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax	471		289	1,613
Prior service credit arising during the period, net of tax expense of $(2,267), $(1,163) and $(71)	(3,130)		3,199	0
Amortization of actuarial loss included in net periodic cost, net of tax expense of $(4,761), $(3,513) and $(4,194)	9,098		7,324	4,869
Amortization of prior service credit included in net periodic cost, net of tax benefit of $806, $252 and $230	101		1,240	350
Foreign currency translation adjustment	0		0	(874)
(Amortization) recognition of deferred taxes related to actuarial gain on other postretirement employee benefit obligations	0		(220)	(229)
Other comprehensive (loss) income, net of tax	57,600	[1]	(428)	(16,913)
Comprehensive income	$ 164,555		$ 63,703	$ 22,761

[1] 2Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

NOTE 5 Property, Plant and Equipment

(In thousands)	2013			2012
Machinery and equipment	$	1,937,914		$	1,866,263
Buildings and improvements	304,971			299,642
Land improvements	54,277			52,929
Office and other equipment	11,951			10,946
Land	11,827			11,827
Construction in progress	40,204			37,160
	$	2,361,144		$	2,278,767
Less accumulated depreciation and amortization	(1,476,446		)	(1,401,390		)
	$	884,698		$	877,377

The December 31, 2013 and 2012 buildings and improvements and machinery and equipment combined balances each include $23.1 million associated with capital leases.

Depreciation expense, including amounts associated with capital leases, totaled $83.3 million, $74.6 million and $70.6 million in 2013, 2012 and 2011, respectively. We did not capitalize any interest during 2013. For 2012 and 2011, we capitalized $12.6 million and $3.7 million of interest expense, respectively, associated with our TAD tissue expansion project, which includes the construction of our new tissue manufacturing and converting facilities in Shelby, North Carolina, and upgrades to our tissue manufacturing facility in Las Vegas, Nevada.

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Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	$ 106,955	$ 64,131	$ 39,674
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	90,272	79,333	76,933
Other Noncash Income Tax Expense	(75,308)	3,275	0
Deferred tax expense (benefit)	5,629	12,870	14,777
Equity-based compensation expense	10,960	9,703	8,134
Employee benefit plans	10,131	9,366	16,897
Changes in working capital, net	(15,022)	61,281	(86,012)
Change in taxes receivable, net	10,325	(10,828)	354
Excess tax benefits from equity-based payment arrangements	0	(15,837)	(885)
Change in non-current accrued taxes	569	960	2,453
Funding of qualified pension plans	(15,050)	(20,627)	(12,498)
Change in restricted cash	(32)	769	4,160
Other, net	471	284	3,195
Net cash provided by operating activities	136,357	198,693	68,395
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	(50,000)	35,001	71,094
Additions to plant and equipment	(90,593)	(203,776)	(134,069)
Cash paid for acquisitions, net of cash acquired	0	(9,264)	0
Proceeds from sale of assets	0	1,035	12,826
Net cash used for investing activities	(140,593)	(177,004)	(50,149)
Proceeds from long-term debt	275,000	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	(100,000)	(18,650)	(11,350)
Repayment of Cellu Tissue debt	(150,000)	0	(15,595)
Investment (to) from Parent	0	0	0
Payments of Debt Issuance Costs	(4,837)	(2)	(638)
Excess tax benefits from equity-based payment arrangements	0	15,837	885
Payment of tax withholdings on equity-based payment arrangements	(4,831)	(13,234)	(2,400)
Other, net	0	(1,500)	2
Net cash (used for) provided by financing activities	15,332	(17,549)	(29,096)
Effect of exchange rate changes	0	0	361
Increase (decrease) in cash	11,096	4,140	(10,489)
Cash at beginning of period	12,579	8,439	18,928
Cash at end of period	23,675	12,579	8,439
Amortization of Financing Costs and Discounts	4,964	2,010	215
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	1,493	2,003	998
Issuer
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	95,454	54,754	36,307
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	54,291	48,191	45,439
Other Noncash Income Tax Expense	(75,308)	3,275
Deferred tax expense (benefit)	3,185	9,840	(2,394)
Equity-based compensation expense	10,960	9,703	8,134
Employee benefit plans	10,131	9,366	16,897
Changes in working capital, net	(31,256)	25,252	(133,142)
Change in taxes receivable, net	17,003	(11,755)	(4,685)
Excess tax benefits from equity-based payment arrangements		(15,837)	(885)
Change in non-current accrued taxes	1,423	(242)	2,453
Funding of qualified pension plans	(15,050)	(20,627)	(12,498)
Change in restricted cash	0	769	4,160
Other, net	(452)	548	3,195
Net cash provided by operating activities	75,546	115,869	(36,480)
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	(50,000)	35,001	71,094
Additions to plant and equipment	(65,708)	(190,296)	(117,525)
Cash paid for acquisitions, net of cash acquired		(9,264)
Proceeds from sale of assets		0	12,826
Net cash used for investing activities	(115,708)	(164,559)	(33,605)
Proceeds from long-term debt	275,000
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	(100,000)	(18,650)	(11,350)
Repayment of Cellu Tissue debt	(150,000)		0
Investment (to) from Parent	31,998	75,198	70,013
Payments of Debt Issuance Costs	(4,837)	(2)	(638)
Excess tax benefits from equity-based payment arrangements		15,837	885
Payment of tax withholdings on equity-based payment arrangements	(4,831)	(13,234)	(2,400)
Other, net		(1,500)	2
Net cash (used for) provided by financing activities	47,330	57,649	56,512
Effect of exchange rate changes			0
Increase (decrease) in cash	7,168	8,959	(13,573)
Cash at beginning of period	11,105	2,146	15,719
Cash at end of period	18,273	11,105	2,146
Amortization of Financing Costs and Discounts	4,964	2,010	215
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	201	622	324
Guarantor Subsidiaries
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	(15,370)	1,339	(31,542)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	33,712	29,030	29,364
Other Noncash Income Tax Expense	0	0
Deferred tax expense (benefit)	(9,072)	4,009	24,466
Equity-based compensation expense		0	0
Employee benefit plans	0	0	0
Changes in working capital, net	11,747	36,596	45,400
Change in taxes receivable, net	15,998	593	1,939
Excess tax benefits from equity-based payment arrangements		0	0
Change in non-current accrued taxes	(860)	22	0
Funding of qualified pension plans	0	0	0
Change in restricted cash	(32)	0	0
Other, net	923	(264)	0
Net cash provided by operating activities	38,337	72,706	70,299
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	0	0	0
Additions to plant and equipment	(22,562)	(11,632)	(16,088)
Cash paid for acquisitions, net of cash acquired		0
Proceeds from sale of assets		1,035	0
Net cash used for investing activities	(22,562)	(10,597)	(16,088)
Proceeds from long-term debt	0
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	0	0	0
Repayment of Cellu Tissue debt	0		(15,595)
Investment (to) from Parent	(15,780)	(66,463)	(36,432)
Payments of Debt Issuance Costs	0	0	0
Excess tax benefits from equity-based payment arrangements		0	0
Payment of tax withholdings on equity-based payment arrangements	0	0	0
Other, net		0	0
Net cash (used for) provided by financing activities	(15,780)	(66,463)	(52,027)
Effect of exchange rate changes			0
Increase (decrease) in cash	(5)	(4,354)	2,184
Cash at beginning of period	5	4,359	2,175
Cash at end of period	0	5	4,359
Amortization of Financing Costs and Discounts	0	0	0
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	1,291	1,381	672
Non-Guarantor Subsidiaries
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	(804)	278	(3,687)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	2,269	2,112	2,130
Other Noncash Income Tax Expense	0	0
Deferred tax expense (benefit)	(125)	(188)	(2,815)
Equity-based compensation expense		0	0
Employee benefit plans	0	0	0
Changes in working capital, net	4,487	(567)	1,730
Change in taxes receivable, net	(324)	334	(217)
Excess tax benefits from equity-based payment arrangements		0	0
Change in non-current accrued taxes	6	1,180	0
Funding of qualified pension plans	0	0	0
Change in restricted cash	0	0	0
Other, net	0	0	0
Net cash provided by operating activities	5,510	3,149	(2,857)
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	0	0	0
Additions to plant and equipment	(2,323)	(1,848)	(456)
Cash paid for acquisitions, net of cash acquired		0
Proceeds from sale of assets		0	0
Net cash used for investing activities	(2,323)	(1,848)	(456)
Proceeds from long-term debt	0
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	0	0	0
Repayment of Cellu Tissue debt	0		0
Investment (to) from Parent	746	(1,766)	3,852
Payments of Debt Issuance Costs	0	0	0
Excess tax benefits from equity-based payment arrangements		0	0
Payment of tax withholdings on equity-based payment arrangements	0	0	0
Other, net		0	0
Net cash (used for) provided by financing activities	746	(1,766)	3,852
Effect of exchange rate changes			361
Increase (decrease) in cash	3,933	(465)	900
Cash at beginning of period	1,469	1,934	1,034
Cash at end of period	5,402	1,469	1,934
Amortization of Financing Costs and Discounts	0	0	0
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	1	0	2
Eliminations
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss)	27,675	7,760	38,596
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	0	0	0
Other Noncash Income Tax Expense	0	0
Deferred tax expense (benefit)	11,641	(791)	(4,480)
Equity-based compensation expense	0	0	0
Employee benefit plans	0	0	0
Changes in working capital, net	0	0	0
Change in taxes receivable, net	(22,352)	0	3,317
Excess tax benefits from equity-based payment arrangements		0	0
Change in non-current accrued taxes	0	0	0
Funding of qualified pension plans	0	0	0
Change in restricted cash	0	0	0
Other, net	0	0	0
Net cash provided by operating activities	16,964	6,969	37,433
CASH FLOWS FROM INVESTING ACTIVITIES
Change in short-term investments, net	0	0	0
Additions to plant and equipment	0	0	0
Cash paid for acquisitions, net of cash acquired		0
Proceeds from sale of assets		0	0
Net cash used for investing activities	0	0	0
Proceeds from long-term debt	0
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	0	0	0
Repayment of Cellu Tissue debt	0		0
Investment (to) from Parent	(16,964)	(6,969)	(37,433)
Payments of Debt Issuance Costs	0	0	0
Excess tax benefits from equity-based payment arrangements		0	0
Payment of tax withholdings on equity-based payment arrangements	0	0	0
Other, net		0	0
Net cash (used for) provided by financing activities	(16,964)	(6,969)	(37,433)
Effect of exchange rate changes			0
Increase (decrease) in cash	0	0	0
Cash at beginning of period	0	0	0
Cash at end of period	0	0	0
Amortization of Financing Costs and Discounts	0	0	0
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	$ 0	$ 0	$ 0

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Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 470,159	$ 487,845	$ 471,002	$ 460,824	$ 462,701	$ 480,233	$ 473,572	$ 457,798	$ 1,889,830		$ 1,874,304	$ 1,927,973
Cost and expenses:
Cost of sales	(401,404)	(441,237)	(414,521)	(414,209)	(396,428)	(409,822)	(398,546)	(403,076)	(1,671,371)		(1,607,872)	(1,702,530)
Selling, general and administrative expenses	(30,466)	(27,766)	(26,767)	(34,132)	(30,793)	(30,649)	(30,529)	(29,074)	(119,131)		(121,045)	(109,998)
Total operating costs and expenses	(431,870)	(469,003)	(441,288)	(448,341)	(427,221)	(440,471)	(429,075)	(432,150)	(1,790,502)		(1,728,917)	(1,812,528)
Income from operations	38,289	18,842	29,714	12,483	35,480	39,762	44,497	25,648	99,328		145,387	115,445
Interest expense, net									(44,036)		(33,796)	(44,809)
Gain (loss) on extinguishment of debt									(17,058)		0	0
Other, net									0		0	284
Equity in income (loss) of subsidiary									0
Earnings before income taxes									38,234		111,591	70,920
Income tax (provision) benefit									68,721		(47,460)	(31,246)
Net earnings	82,862	13,317	11,658	(882)	19,852	19,064	21,489	3,726	106,955		64,131	39,674
Other comprehensive income, net of tax									57,600	[1]	(428)	(16,913)
Comprehensive income									164,555		63,703	22,761
Issuer
Condensed Financial Statements, Captions [Line Items]
Net sales									1,408,941		1,375,732	1,464,570
Cost and expenses:
Cost of sales									(1,203,945)		(1,149,413)	(1,256,507)
Selling, general and administrative expenses									(94,861)		(96,668)	(61,794)
Total operating costs and expenses									(1,298,806)		(1,246,081)	(1,318,301)
Income from operations									110,135		129,651	146,269
Interest expense, net									(44,031)		(33,796)	(44,187)
Gain (loss) on extinguishment of debt									(17,058)
Other, net												(215)
Equity in income (loss) of subsidiary									(15,370)		1,339	(31,542)
Earnings before income taxes									49,046		95,855	101,867
Income tax (provision) benefit									61,778		(42,440)	(34,018)
Net earnings									95,454		54,754	36,307
Other comprehensive income, net of tax									57,600		(428)	(16,913)
Comprehensive income									153,054		54,326	19,394
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									480,599		492,074	508,341
Cost and expenses:
Cost of sales									(467,822)		(454,383)	(493,338)
Selling, general and administrative expenses									(22,918)		(22,268)	(44,481)
Total operating costs and expenses									(490,740)		(476,651)	(537,819)
Income from operations									(10,141)		15,423	(29,478)
Interest expense, net									(5)		0	(622)
Gain (loss) on extinguishment of debt									0
Other, net												388
Equity in income (loss) of subsidiary									(804)		278	(3,687)
Earnings before income taxes									(10,146)		15,423	(29,712)
Income tax (provision) benefit									(4,420)		(14,362)	1,857
Net earnings									(15,370)		1,339	(31,542)
Comprehensive income									(15,370)		1,339	(31,542)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									29,494		26,478	32,977
Cost and expenses:
Cost of sales									(28,808)		(24,056)	(30,600)
Selling, general and administrative expenses									(1,352)		(2,109)	(3,723)
Total operating costs and expenses									(30,160)		(26,165)	(34,323)
Income from operations									(666)		313	(1,346)
Interest expense, net											0	0
Gain (loss) on extinguishment of debt									0
Other, net												111
Equity in income (loss) of subsidiary									0
Earnings before income taxes									(666)		313	(1,235)
Income tax (provision) benefit									(138)		(35)	(2,452)
Net earnings									(804)		278	(3,687)
Comprehensive income									(804)		278	(3,687)
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net sales									(29,204)		(19,980)	(77,915)
Cost and expenses:
Cost of sales									29,204			77,915
Total operating costs and expenses									29,204		19,980	77,915
Income from operations									0		0	0
Gain (loss) on extinguishment of debt									0
Other, net												0
Equity in income (loss) of subsidiary									16,174		(1,617)	35,229
Earnings before income taxes									0		0	0
Income tax (provision) benefit									11,501		9,377	3,367
Net earnings									27,675		7,760	38,596
Comprehensive income									$ 27,675		$ 7,760	$ 38,596

[1] 2Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 14, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	CLW
Entity Registrant Name	CLEARWATER PAPER CORP
Entity Central Index Key	0001441236
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		20,912,248
Entity Public Float			$ 1,021,645,305.0

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 6 Goodwill and Intangible Assets

The carrying amount of goodwill is reviewed at least annually for impairment as of November 1. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its estimated fair value exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. For the purpose of goodwill impairment testing we identify two reporting units, Consumer Products and Pulp and Paperboard, the same as our two reportable operating segments (see Note 17, "Segment Information"). All of the recorded goodwill is assigned to our Consumer Products reporting unit.

As of November 1, 2013 and 2012, we performed calculations of both a discounted cash flow and market-based valuation model for our Consumer Products reporting unit. The assumptions used in these models allowed us to evaluate the estimated fair value of our reporting unit. The determination of these assumptions required significant estimates on our part. Due to the inherent uncertainty involved in making such estimates, actual results could differ from those assumptions. However, we evaluated the merits of each significant assumption, both individually and in the aggregate, used to determine the estimated fair value of our reporting unit for reasonableness. Upon completion of this exercise, we concluded that the estimated fair value of the Consumer Products reporting unit exceeded its carrying amount. We determined that no further testing was necessary and did not record any impairment loss on our goodwill for the years ended December 31, 2013 and 2012.

Intangible asset amounts represent the acquisition date fair values of identifiable intangible assets acquired. The fair values of the intangible assets were determined by using the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflected a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. Definite-lived intangible assets are amortized over their useful lives, which range from 2.5 to 10 years. Authoritative guidance requires that the carrying amount of a long-lived asset with a definite life that is held-for-use be evaluated for recoverability whenever events or changes in circumstances indicate that the entity may be unable to recover the asset’s carrying amount. During 2013, we permanently closed our Thomaston converting and distribution facility. This closure did not require an assessment of recoverability on our assets as all converting lines were relocated and installed at our other facilities. There were no other such events or changes in circumstances that required us to assess whether our definite-lived intangible assets were impaired for the years ended December 31, 2013 and 2012. We do not have any indefinite-lived intangible assets recorded from acquisitions.

Intangible assets at the balance sheet dates are comprised of the following:

	December 31, 2013
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(17,234	)	$	36,723
Trade names and trademarks	10.0	5,300		(1,590		)	3,710
Non-compete agreements	2.5 - 5.0	1,674		(1,329		)	345
Total intangible assets		$	60,931	$	(20,153	)	$	40,778

	December 31, 2012
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(11,237	)	$	42,720
Trade names and trademarks	10.0	5,300		(1,060		)	4,240
Non-compete agreements	2.5 - 5.0	1,674		(881		)	793
Total intangible assets		$	60,931	$	(13,178	)	$	47,753

As of December 31, 2013, estimated future amortization expense related to intangible assets is as follows (in thousands):

Years ending December 31,	Amount
2014	$	6,663
2015	6,608
2016	6,587
2017	6,587
2018	6,524
Thereafter	7,809
Total	$	40,778

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Equity-Based Compensation Plans - Additional Information (Details) (USD $)	12 Months Ended			3 Months Ended	12 Months Ended					3 Months Ended		12 Months Ended								37 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Mar. 31, 2013 Performance Shares [Member]	Dec. 31, 2013 Performance Shares [Member]	Dec. 31, 2012 Performance Shares [Member]	Dec. 31, 2011 Performance Shares [Member]	Dec. 31, 2013 Performance Shares [Member] Minimum	Dec. 31, 2013 Performance Shares [Member] Maximum	Dec. 31, 2013 Restricted Stock Units (RSUs)	Mar. 31, 2012 Restricted Stock Units (RSUs)	Dec. 31, 2013 Restricted Stock Units (RSUs)	Dec. 31, 2012 Restricted Stock Units (RSUs)	Dec. 31, 2011 Restricted Stock Units (RSUs)	Dec. 31, 2013 Restricted Stock Units (RSUs) Minimum	Dec. 31, 2013 Restricted Stock Units (RSUs) Maximum	Dec. 31, 2013 Director	Dec. 31, 2012 Director	Dec. 31, 2011 Director	Jan. 31, 2012 Director	Dec. 31, 2013 Cellu Tissue Holdings Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Plan, effective date	Dec. 16, 2008
Stock Plan, shares authorized	4,100,000																				700,000
Shares Available For Grant	1,900,000
Total fair value of share awards vested												$ 1,200,000
Unrecognized compensation costs					5,600,000					2,600,000		2,600,000
Unrecognized compensation costs, expected weighted-average period to be recognized (in years)					1 year 6 months							2 years
Percentage of amount subject to performance share award of number of shares actually issued								0.00%	200.00%
Vested Shares Settled Without Payment					108,366
Settlement and distribution of shares issued (in shares)						138,226				22,370		126,726	112,682
Vested Shares Deferred In The Period													175,654
Distributed of Previously Deferred Shares												104,356
Number of shares settled as percentage of outstanding amount				101.40%
Shares vested (in shares)					246,592	499,680	0				288,336	30,190	155,177	286,486
Share based compensation awards vesting period					3 years										1 year	3 years	1 year			3 years
Shares issued (in shares)				93,744								73,154	78,029
Cash paid for minimum tax withholdings	4,831,000	13,234,000	2,400,000	2,200,000								2,600,000	1,300,000
Balance of Shares Vested and Deferred										84,602		84,602
Share based compensation expense	(6,876,000)	(8,334,000)	(6,658,000)		(5,075,000)	(7,364,000)	(5,446,000)					(1,801,000)	(970,000)	(1,212,000)			(4,100,000)	(1,400,000)	(1,500,000)
Deferred compensation share-based arrangements, liability, classified, noncurrent																	$ 13,200,000	$ 9,100,000

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Financial Results by Quarter Financial Results by Quarter (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 470,159	$ 487,845	$ 471,002	$ 460,824	$ 462,701	$ 480,233	$ 473,572	$ 457,798	$ 1,889,830	$ 1,874,304	$ 1,927,973
Costs and expenses:
Cost of sales	(401,404)	(441,237)	(414,521)	(414,209)	(396,428)	(409,822)	(398,546)	(403,076)	(1,671,371)	(1,607,872)	(1,702,530)
Selling, general and administrative expenses	(30,466)	(27,766)	(26,767)	(34,132)	(30,793)	(30,649)	(30,529)	(29,074)	(119,131)	(121,045)	(109,998)
Total operating costs and expenses	(431,870)	(469,003)	(441,288)	(448,341)	(427,221)	(440,471)	(429,075)	(432,150)	(1,790,502)	(1,728,917)	(1,812,528)
Income from operations	38,289	18,842	29,714	12,483	35,480	39,762	44,497	25,648	99,328	145,387	115,445
Net earnings	$ 82,862	$ 13,317	$ 11,658	$ (882)	$ 19,852	$ 19,064	$ 21,489	$ 3,726	$ 106,955	$ 64,131	$ 39,674
Net earnings per common share:
Basic (in dollars per share)	$ 3.91	$ 0.60	$ 0.52	$ (0.04)	$ 0.86	$ 0.82	$ 0.92	$ 0.16	$ 4.84	$ 2.75	$ 1.73
Diluted (in dollars per share)	$ 3.87	$ 0.60	$ 0.52	$ (0.04)	$ 0.84	$ 0.80	$ 0.91	$ 0.16	$ 4.80	$ 2.72	$ 1.66

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net (loss) gain arising during the period, tax benefit (provision)	$ (32,346)	$ (6,359)	$ (15,830)
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax	298	188	(1,163)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit), Tax	(1,976)	(2,079)	0
Amortization of actuarial loss included in net periodic cost, tax expense	(5,742)	4,761	3,513
Amortization of prior service credit included in net periodic cost, tax benefit	$ 64	$ 806	$ (252)

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Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive loss, net of tax	$ (58,093,000)		$ (115,693,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	9,468,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	48,132,000
Net current period other comprehensive income ending balance	57,600,000	[1]	(428,000)		(16,913,000)
Amortization of actuarial loss	(83,600,000)
Amortization of actuarial loss included in net periodic cost, before tax	14,800,000
Amortization of prior service credit included in net periodic cost, before tax	5,100,000
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax	800,000
Amortization of prior service (cost) credit	200,000
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax	36,300,000
Foreign Currency Translation Adjustments
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive loss, net of tax	(874,000)	[2]	(874,000)	[2]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	[2]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	[2]
Net current period other comprehensive income ending balance	0	[1],[2]
Defined Benefit Pension Plan Adjustments
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive loss, net of tax	(57,219,000)		(114,819,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	9,468,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	48,132,000
Net current period other comprehensive income ending balance	$ 57,600,000	[1]

[1] 2Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

[2] 1This balance consists of unrealized foreign currency translation adjustments related to the operations of our Canadian subsidiary before its functional currency was changed from Canadian dollars to U.S. dollars in 2012.

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Reclassification out of Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Accumulated other comprehensive loss at the balance sheet dates is comprised of the following:

(In thousands)	Foreign Currency Translation Adjustments1			Pension and Other Post Retirement Employee Benefit Plans Adjustments			Total
Balance at December 31, 2012	$	(874	)	$	(114,819	)	$	(115,693	)
Other comprehensive income before reclassifications	—			9,468			9,468
Amounts reclassified from accumulated other comprehensive loss	—			48,132			48,132
Other comprehensive income, net of tax2	—			57,600			57,600
Balance at December 31, 2013	$	(874	)	$	(57,219	)	$	(58,093	)

¹ This balance consists of unrealized foreign currency translation adjustments related to the operations of our Canadian subsidiary before its functional currency was changed from Canadian dollars to U.S. dollars in 2012.

² Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

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Savings, Pension and Other Postretirement Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Savings, Pension and Other Postretirement Employee Benefit Plans

NOTE 12 Savings, Pension and Other Postretirement Employee Benefit Plans

Certain of our employees are eligible to participate in defined contribution savings and defined benefit postretirement plans. These include 401(k) savings plans, defined benefit pension plans including company-sponsored and multiemployer plans, and Other Postretirement Employee Benefit, or OPEB, plans, each of which is discussed below.

401(k) Savings Plans

Substantially all of our employees are eligible to participate in 401(k) savings plans, which include a company match component. In 2013, 2012 and 2011, we made matching 401(k) contributions on behalf of employees of $16.8 million, $14.9 million and $8.1 million, respectively.

Company-Sponsored Defined Benefit Pension Plans

A majority of our salaried employees and a portion of our hourly employees are covered by company-sponsored noncontributory defined benefit pension plans.

During the second quarter of 2013, we recorded a curtailment loss of $0.8 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, due to the freezing of pension benefits for certain employees at our Lewiston, Idaho pulp and paperboard facility, effective June 30, 2013. In the fourth quarter of 2012, we recorded a curtailment loss of $0.5 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, as a result of certain hourly employees at our Cypress Bend, Arkansas pulp and paperboard facility electing to cease accruing further pension benefits effective December 31, 2012. In exchange, beginning January 1, 2013 and lasting for a certain number of years, these employees began receiving an enhanced employer contribution to one of our existing 401(k) savings plan in which they participate. In the fourth quarter of 2011, we recorded a curtailment loss of $2.8 million in net periodic cost, and a corresponding change in Other Comprehensive Income, net of tax, as a result of the sale of our sawmill. In addition, we recorded a $0.4 million decrease in our pension liability with a corresponding decrease in Accumulated Other Comprehensive Loss.

Company-Sponsored OPEB Plans

We also provide benefits under company-sponsored defined benefit retiree health care and life insurance plans, which cover certain salaried and hourly employees. Most of the retiree health care plans require retiree contributions and contain other cost-sharing features. The retiree life insurance plans are primarily noncontributory.

Funded Status of Company-Sponsored Plans

As required by current standards governing the accounting for defined benefit pension and other postretirement plans, we recognized the funded status of our company-sponsored plans on our Consolidated Balance Sheets at December 31, 2013 and 2012. The funded status is measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation; for any other postretirement employee benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement employee benefit obligation.

We use a December 31 measurement date for our benefit plans.

The changes in benefit obligation, plan assets and funded status for company-sponsored benefit plans as of December 31 are as follows:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Benefit obligation at beginning of year	$	333,257		$	307,658		$	134,618		$	136,710
Service cost	1,738			2,485			552			693
Interest cost	13,375			14,693			4,730			5,815
Plan changes	—			—			5,106			(5,278		)
Actuarial (gains) losses	(36,859		)	30,612			(30,322		)	3,151
Medicare Part D subsidies received	—			—			308			569
Benefits paid	(18,123		)	(22,191		)	(7,665		)	(7,042		)
Benefit obligation at end of year	293,388			333,257			107,327			134,618
Fair value of plan assets at beginning of year	254,556			218,557			19			18
Actual return on plan assets	34,779			37,308			1			1
Employer contribution	15,386			20,882			—			—
Benefits paid	(18,123		)	(22,191		)	—			—
Fair value of plan assets at end of year	286,598			254,556			20			19
Funded status at end of year	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Amounts recognized in the Consolidated Balance Sheets:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Noncurrent asset	4,488			—			—			—
Current liabilities	$	(364	)	$	(281	)	$	(8,414	)	$	(8,856	)
Noncurrent liabilities	(10,914		)	(78,420		)	(98,893		)	(125,743		)
Net amount recognized	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Amounts recognized (pre-tax) in Accumulated Other Comprehensive Loss as of December 31 consist of:

	Pension Benefit Plans				Other Postretirement Employee Benefit Plans
(In thousands)	2013		2012		2013			2012
Net loss (gain)	$	109,218	$	177,343	$	(5,915	)	$	24,408
Prior service cost (credit)	308		1,414		(896		)	(6,504		)
Net amount recognized	$	109,526	$	178,757	$	(6,811	)	$	17,904

Information as of December 31 for certain pension plans included above with accumulated benefit obligations in excess of plan assets were as follows:

(In thousands)	2013		2012
Projected benefit obligation	$	293,388	$	333,257
Accumulated benefit obligation	293,388		333,257
Fair value of plan assets	286,598		254,556

Pre-tax components of Net Periodic Cost and other amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31 were as follows:

Net Periodic Cost (Benefit):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Service cost	$	1,738		$	2,485		$	7,725		$	552		$	693		$	702
Interest cost	13,375			14,693			15,092			4,730			5,815			6,857
Expected return on plan assets	(18,352		)	(19,685		)	(19,532		)	—			—			—
Amortization of prior service cost (credit)	337			634			1,193			(502		)	(2,680		)	(1,795		)
Amortization of actuarial loss	14,840			12,085			8,382			—			—			—
Curtailments	769			477			2,776			—			—			—
Net periodic cost	$	12,707		$	10,689		$	15,636		$	4,780		$	3,828		$	5,764

Other amounts recognized in Other Comprehensive Income (Loss):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Net (gain) loss	$	(53,285	)	$	12,989		$	43,207		$	(30,323	)	$	3,150		$	(5,435	)
Curtailments	(769		)	(477		)	(2,776		)	—			—			—
Prior service cost (credit)	—			—			—			5,106			(5,278		)	—
Amortization of prior service (cost) credit	(337		)	(634		)	(1,193		)	502			2,680			1,795
Amortization of actuarial loss	(14,840		)	(12,085		)	(8,382		)	—			—			—
Total recognized in other comprehensive (income) loss	$	(69,231	)	$	(207	)	$	30,856		$	(24,715	)	$	552		$	(3,640	)
Total recognized in net periodic cost and   other comprehensive (income) loss	$	(56,524	)	$	10,482		$	46,492		$	(19,935	)	$	4,380		$	2,124

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 cost (benefit) over the next fiscal year are $10.0 million and $0.2 million, respectively. The estimated prior service credit for the OPEB plans that will be amortized from accumulated other comprehensive loss into net periodic cost (benefit) over the next fiscal year is $0.5 million.

During 2013, $14.2 million of net periodic pension and OPEB costs were charged to cost of sales, and $3.3 million was charged to selling, general and administrative expenses in the accompanying Consolidated Statements of Operations.

The Medicare Prescription Drug Improvement and Modernization Act of 2003 introduced a drug benefit under Medicare Part D and a federal subsidy to sponsors of retiree health care benefit plans that provide an equivalent benefit. Our actuaries determined that certain benefits provided under our plans are actuarially equivalent to the Medicare Part D standard plan and are eligible for the employer subsidy. During 2013 and 2012, we received subsidy payments totaling $0.3 million and $0.6 million for each respective year.

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	5.20	%	4.15	%	4.90	%	5.05	%	4.05	%	4.95	%

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	4.15	%	4.90	%	5.70	%	4.05	%	4.95	%	5.60	%
Expected return on plan assets	7.50		8.00		8.00		—		—		—
Rate of salaried compensation increase	—		—		4.00		—		—		—

The discount rate used in the determination of pension benefit obligations and pension expense was determined based on a review of long-term high-grade bonds as well as management’s expectations. The discount rate used to calculate OPEB obligations was determined using the same methodology we used for our pension plans.

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 assumed health care cost trend rate used to calculate OPEB obligations and expense was 7.7% in 2013, grading to a range of 4.30% to 4.64% over approximately 70 years. This assumption has a significant effect on the amounts reported. A one percentage point change in the health care cost trend rates would have the following effects:

(In thousands)	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	521	$	(438	)
Effect on postretirement employee benefit obligation	9,304		(7,997		)

The investments of our defined benefit pension plans are held in a Master Trust. The assets of our OPEB plans are held within an Internal Revenue Code section 401(h) account for the payment of retiree medical benefits within the Master Trust.

The Master Trust has a securities lending agreement. The agreement authorizes the lending agent to loan securities owned by the Master Trust to an approved list of borrowers. Under the agreement, the lending agent is responsible for negotiating each loan for an unspecified term while retaining the power to terminate the loan at any time. At the time each loan is made, the lending agent requires collateral equal to, but not less than, 102% of the market value of the loaned securities and accrued interest. The Master Trust directs the agent as to the type of investment pool in which to invest the borrower’s collateral based on established policy with specific limits; accordingly, the right to receive the collateral and obligation to return it are disclosed as a component of Master Trust investments. While the securities are loaned, the Master Trust retains all rights of ownership, except it waives its right to vote such securities. Securities loaned subject to this securities lending agreement totaled $0.3 million at December 31, 2013. These securities are principally corporate common stocks.

Current accounting rules governing fair value measurement establish a framework for measuring fair value, which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). 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 that the plans have the ability to access.
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
	If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3	Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s 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.

Securities in the Master Trust are stated at fair value. Fair value is based upon quotations obtained from national securities exchanges, if available. Where securities do not have a quoted market price, the recorded amount represents estimated fair value. Many factors are considered in arriving at that fair market value. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used during 2013.

▪ Corporate common stock and mutual funds: Investments are valued at quoted market prices.

▪ Common and collective trusts: The investment in common and collective trusts is based on the fair value of the underlying assets and is expressed in units.

▪ Corporate debt securities: In general, corporate bonds are valued based on yields currently available on comparable securities of issuers with similar credit ratings.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following tables set forth by level, within the fair value hierarchy, the investments at fair value for our company-sponsored pension benefit plans:

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	4,314	$	—	$	—	$	4,314
Common and collective trusts:
International small cap	—		15,845		—		15,845
Global/International equity	—		21,198		—		21,198
International equity emerging markets	—		17,809		—		17,809
Common stocks:
Industrials	9,307		—		—		9,307
Energy	2,663		—		—		2,663
Consumer	8,002		—		—		8,002
Healthcare	6,013		—		—		6,013
Finance	11,566		—		—		11,566
Utilities	1,711		—		—		1,711
Information technology	8,785		—		—		8,785
Foreign	6,175		—		—		6,175
Mutual funds:
Foreign large blend	18,492		—		—		18,492
Long-term bond fund	137,031		—		—		137,031
Mid-cap growth fund	18,009		—		—		18,009
Subtotal	$	232,068	$	54,852	$	—	$	286,920
Payable held under securities lending agreement							(322		)
Total investments at fair value							$	286,598

	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,786	$	—	$	—	$	3,786
Common and collective trusts:
International small cap	—		12,725		—		12,725
Global/International equity	—		16,656		—		16,656
Domestic equity – small/mid cap	—		17,339		—		17,339
International equity emerging markets	—		17,672		—		17,672
Common stocks:
Industrials	9,475		—		—		9,475
Energy	1,966		—		—		1,966
Consumer	8,270		—		—		8,270
Healthcare	7,386		—		—		7,386
Finance	13,000		—		—		13,000
Utilities	2,305		—		—		2,305
Information technology	6,828		—		—		6,828
Foreign	6,078		—		—		6,078
Mutual funds:
Foreign large blend	18,907		—		—		18,907
Long-term bond fund	114,557		—		—		114,557
Corporate debt securities	—		1,073		—		1,073
Subtotal	$	192,558	$	65,465	$	—	$	258,023
Payable held under securities lending agreement							(3,467		)
Total investments at fair value							$	254,556

Our OPEB plan had approximately $20,000 held in cash and equivalents at December 31, 2013, which were categorized as level 1.

We have formal investment policy guidelines for our company-sponsored plans. These guidelines were set by our benefits committee, which is comprised of members of our management and has been assigned its fiduciary authority over management of the plan assets by our Board of Directors. The committee’s duties include periodically reviewing and modifying those investment policy guidelines as necessary and insuring that the policy is adhered to and the investment objectives are met.

The investment policy includes specific guidelines for specific categories of fixed income and convertible securities. Assets are managed by professional investment managers who are expected to achieve a reasonable rate of return over a market cycle. Long-term performance is a fundamental tenet of the policy.

The general policy states that plan assets would 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 is to maintain adequate liquidity for meeting expected benefit payments by reviewing, on a timely basis, contribution and benefit payment levels and appropriately revising 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 included:

▪ Assets are diversified among various asset classes, such as domestic equities, international equities, fixed income and cash. The long-term asset allocation ranges are as follows:

Domestic equities	19%-31%
International equities, including emerging markets	16%-34%
Corporate bonds	40%-60%
Liquid reserves	0%-1%

Periodically, 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 were managed by professional investment managers and could be invested in separately managed accounts or commingled funds.

▪ Assets were not invested in securities rated below BBB- by S&P or Baa3 by Moody’s.

The investment guidelines also required that the individual investment managers were expected to achieve a reasonable rate of return over a market cycle. Emphasis was placed on long-term performance versus short-term market aberrations. Factors considered in determining reasonable rates of return included performance achieved by a diverse cross section of other investment managers, performance of commonly used benchmarks (e.g., Russell 3000 Index, MSCI World ex-U.S. Index, Barclays Capital Long Credit Index), actuarial assumptions for return on plan investments and specific performance guidelines given to individual investment managers.

At December 31, 2013, ten active investment managers managed substantially all of the pension funds, each of whom had responsibility for managing a specific portion of these assets. Plan assets were diversified among the various asset classes within the allocation ranges approved by the benefits committee.

We are required to make contributions to our qualified pension plans. In 2013 we contributed $15.1 million to these pension plans. We also contributed $0.3 million to our non-qualified pension plan in 2013. Our cash contributions in 2014 are estimated to be approximately $15 million. These contributions are comprised of $8 million in actuarially determined minimum contributions and $7 million of payments required to be made under a previous agreement with the Pension Benefit Guarantee Corporation stemming from the 2011 sale of the Lewiston, Idaho Sawmill. We do not anticipate funding our OPEB plans in 2013 except to pay benefit costs as incurred during the year by plan participants.

Estimated future benefit payments, which reflect expected future service and expected Medicare prescription subsidy receipts, are as follows for the years indicated:

(In thousands)	Pension Benefit Plans		Other Postretirement Employee Benefit Plans		Expected Medicare Subsidy
2014	$	17,837	$	8,744	$	310
2015	18,361		8,947		313
2016	18,942		9,268		315
2017	19,486		9,190		313
2018	19,932		9,229		309
2019-2023	103,091		39,664		1,436

Multiemployer Defined Benefit Pension Plans

Hourly employees at two of our manufacturing facilities participate in multiemployer defined benefit pension plans: the PACE Industry Union Management Pension Fund, or PIUMPF, which is managed by United Steelworkers, or USW, Benefits; and the International Association of Machinist & Aerospace Workers National Pension Fund, or IAM. We make contributions to these plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees, which is also managed by USW Benefits. The risks of participating in these multiemployer plans are different from single-employer plans in the following respects:

▪ Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

▪ If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

▪ Under applicable federal law, any employer contributing to a multiemployer pension plan that completely ceases participating in the plan while it is underfunded is subject to an assessment of such employer's allocable share of the aggregate unfunded vested benefits of the plan. In certain circumstances, an employer can also be assessed a withdrawal liability for a partial withdrawal from a multiemployer pension plan. Based on information as of December 31, 2012 provided by PIUMPF and reviewed by our actuarial consultant, we estimate the aggregate pre-tax liability that we would have incurred if we had completely withdrawn from PIUMPF in 2013 would have been in excess of $72 million. However, the exact amount of potential exposure could be higher or lower than the estimate, depending on, among other things, the nature and timing of any triggering events and the funded status of PIUMPF at that time. A withdrawal liability is recorded for accounting purposes when withdrawal is probable and the amount of the withdrawal obligation is reasonably estimable.

Our participation in these plans for the annual period ended December 31, 2013, is outlined in the table below. The “EIN" and "Plan Number” columns provide the Employee Identification Number, or EIN, and the three-digit plan number. The most recent Pension Protection Act, or PPA, zone status available in 2013 and 2012 is for a plan’s year-end as of December 31, 2012, and December 31, 2011, respectively. The zone status is based on information we received from the plans and is certified by each plans’ actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent but more than 65 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan, or FIP, or a rehabilitation plan, or RP, is either pending or has been implemented as required by the PPA as a measure to correct its underfunded status. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.

In 2013, the contribution rates for the IAM plan increased to $4.00 an hour, up from $3.25 an hour in 2012 and $3.00 an hour in 2011, affecting the comparability of the contributions year over year. Similarly, in November of 2011, the USW plan’s contribution rates increased from $2.4285 an hour to $2.6714 an hour. The USW plan's rate increase was implemented as part of the RP in lieu of the legally required surcharge, paid by the employers, to assist the fund’s financial status. As such, the USW contribution rate changes affect comparability of the contributions year over year. We were listed in the USW Plan’s Form 5500 report as providing more than five percent of the total contributions for the years 2012 and 2011. At the date of issuance of our consolidated financial statements, Form 5500 reports for these plans were not available for the 2013 plan year.

Pension Fund	EIN	Plan Number	PPA Zone Status			FIP/RP Status Pending/ Implemented	Contributions (in thousands)						Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
			2013	2012			2013		2012		2011
IAM	51-6031295	002	Green	Green		N/A	$	343	$	288	$	269	No	5/31/2016
USW	11-6166763	001	Red	Red		Implemented	5,718		5,673		5,648		No	8/31/2014
					Total Contributions:		$	6,061	$	5,961	$	5,917

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7 Income Taxes

Earnings (loss) before income taxes is comprised of the following amounts in each tax jurisdiction:

(In thousands)	2013			2012		2011
United States	$	38,900		$	111,278	$	72,156
Canada	(666		)	313		(1,236		)
Earnings before income taxes	$	38,234		$	111,591	$	70,920

The income tax (benefit) provision is comprised of the following:

(In thousands)	2013			2012			2011
Current
Federal	$	(75,119	)	$	27,724		$	9,619
State	506			6,637			6,880
Foreign	263			229			(30		)
	(74,350		)	34,590			16,469
Deferred
Federal	10,177			16,243			12,865
State	(4,423		)	(3,180		)	1,931
Foreign	(125		)	(193		)	(19		)
	5,629			12,870			14,777
Income tax (benefit) provision	$	(68,721	)	$	47,460		$	31,246

The income tax benefit or provisions differ from the amounts computed by applying the statutory federal income tax rate of 35.0% to earnings before income taxes due to the following:

(In thousands)	2013			2012			2011
Computed expected tax provision	$	13,381		$	39,063		$	24,822
State and local taxes, net of federal income tax impact	1,279			4,398			1,482
Adjustment for state deferred tax rate	(762		)	(742		)	2,916
State investment tax credits	(2,263		)	(9,077		)	—
Federal credits and net operating losses	(10,234		)	4,121			(412		)
Federal manufacturing deduction	—			(3,288		)	(2,443		)
Uncertain tax positions	(69,144		)	4,801			2,610
Non-deductible acquisition costs	—			—			(1,215		)
Change in valuation allowances	(1,334		)	6,932			2,796
U.S. tax provision on foreign operations	67			(33		)	365
Other	289			1,285			325
Income tax provision	$	(68,721	)	$	47,460		$	31,246
Effective tax rate	(179.7		)%	42.5		%	44.1		%

We have tax benefits relating to equity-based compensation that are being utilized to reduce our U.S. taxable income. Our Consolidated Balance Sheets reflect net operating losses and tax credit carryforwards excluding amounts resulting from equity-based compensation. We have made an accounting policy election to follow the “with-and-without” or “incremental” method for ordering tax benefits derived from employee equity-based compensation awards. As a result of this method, net operating loss carryforwards not generated from equity-based compensation and which were in excess of equity-based compensation expense are utilized before the current period's equity-based tax deduction (excess tax benefits from equity-based compensation awards are recognized last). Excess tax benefits from equity-based compensation awards that are determined to reduce U.S. taxable income following this method are recognized when realized as increases to additional paid-in capital as a component of stockholders' equity. As of December 31, 2012, we had a total amount of excess tax benefits that were not recognized on our Consolidated Balance Sheet of approximately $1.4 million. During the year ended December 31, 2013, we generated excess tax benefits relating to the payout or issuance of performance shares for the 2010-2012 performance period and certain restricted stock units for the 2009-2011 and 2011-2013 periods. Based on the incremental method, our excess tax benefits associated with equity-based compensation plans were not allocated to additional paid-in capital as a component of stockholders’ equity, as there was no cash tax benefit to be realized in the current year. The tax effect of this transaction was $2.3 million and it has been recorded as a reduction to our federal net operating loss deferred tax asset. Additionally, we had a tax affected $2.4 million reduction to additional paid-in capital relating to performance shares for the 2011-2013 performance period that will not be paid or issued because the requisite market condition performance measure was not met.

Based on the incremental method, our excess tax benefits associated with equity-based compensation plans, which have been allocated directly to additional paid-in capital as a component of stockholders’ equity, reducing income taxes payable was in the amount of $15.8 million and $0.9 million, in the years ended December 31, 2012, and 2011, respectively, while no reduction was incurred in the current year. As of December 31, 2013, we have a total amount of excess tax benefits that are not allocated directly to additional paid-in capital on our Consolidated Balance Sheet until such time as they affect a cash tax benefit of approximately $2.3 million.

(In thousands)	2013			2012
Deferred tax assets:
Employee benefits	$	8,612		$	8,630
Postretirement employee benefits	41,515			52,751
Incentive compensation	8,937			9,130
Inventories	5,898			—
Pensions	152			31,140
Federal and state credit carryforwards	27,597			20,447
Net operating losses	13,930			7,649
Federal benefit from state taxes resulting from uncertain tax positions	—			5,595
Other	7,390			5,757
Total deferred tax assets	$	114,031		$	141,099
Valuation allowance	(13,622		)	(14,957		)
Deferred tax assets, net of valuation allowance	$	100,409		$	126,142
Deferred tax liabilities:
Plant and equipment	$	(178,227	)	$	(157,973	)
Intangible assets	(9,542		)	(10,843		)
Inventories	—			(314		)
Total deferred tax liabilities	(187,769		)	(169,130		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

Net deferred tax assets (liabilities) consist of:

(In thousands)	2013			2012
Current deferred tax assets	$	37,538		$	20,473
Current deferred tax liabilities	—			(3,337		)
Net current deferred tax assets	37,538			17,136
Non-current deferred tax assets	62,871			110,762
Non-current deferred tax liabilities	(187,769		)	(170,886		)
Net non-current deferred tax liabilities	(124,898		)	(60,124		)
Net deferred tax liabilities	$	(87,360	)	$	(42,988	)

In each of the years ended December 31, 2013 and 2012, we recorded a $0.7 million tax benefit reflecting a remeasurement of state deferred tax assets and liabilities using anticipated tax rates that will be in effect when the underlying assets and liabilities will reverse.

As of December 31, 2013, we had deferred tax assets arising from deductible temporary differences, tax losses and tax credits of approximately $114 million before the offset of certain deferred tax liabilities. With the exception of certain deferred tax assets related to federal foreign tax credits, state tax losses and state tax credits totaling $13.6 million, management believes it is more likely than not that forecasted income, together with the tax effect of the deferred tax liabilities, will be sufficient to fully recover the remaining deferred tax assets.

During 2013, the valuation allowance for deferred tax assets decreased by a net $1.3 million. We decreased the valuation allowances for state tax losses incurred by $1.2 million and decreased the valuation allowances for state tax credits by $0.4 million. Both of these items were recorded as current period deferred tax benefit. We also increased the valuation allowance relating to foreign tax credits by $0.3 million, which was recorded as a deferred tax expense to the income tax provision.

During 2012, the valuation allowance for deferred tax assets increased by a net $6.9 million. We decreased the valuation allowances for state tax losses incurred by $0.5 million and increased the valuation allowance for state tax credits by $8.2 million. Both of these items were recorded as current period deferred tax benefit and expense, respectively. We also reduced the valuation allowance relating to foreign tax credits by $0.8 million, which was recorded as a deferred tax benefit to the income tax provision. During 2011, the valuation allowance for deferred tax assets increased by a net $2.8 million. We increased the valuation allowances for state tax losses incurred by certain subsidiaries and state tax credits by $2.5 million and $2.2 million, respectively. Both of these items were recorded as current period deferred tax expense. We also reduced the valuation allowance relating to foreign tax credits by $1.9 million, which was recorded as a deferred tax benefit to the income tax provision. The reduction is based upon tax planning strategies that we believe will more likely than not allow us to utilize a portion of the foreign tax credits before they expire.

During the fourth quarter of 2012, the IRS commenced an audit of our tax returns for the tax years ending December 31, 2008 through December 31, 2011. During 2013, the IRS commenced an audit of our wholly owned subsidiary Cellu Tissue Holdings, Inc, and its subsidiaries for the year ended December 27, 2010; the period immediately before our acquisition of Cellu Tissue Holdings, Inc. These audits are in advanced stages as of the filing of this document. During the year, the company settled audits with the Canada Revenue Agency (CRA) for tax years 2009-2011, as well as numerous state income tax audits, including the State of Idaho. As part of the IRS audit, we identified additional gallons that qualify for the Cellulosic Biofuel Producer Credit that were previously unclaimed. During the third quarter of 2013, we recognized $3.5 million of additional benefit related to these gallons, resulting in a favorable adjustment.

Tax years subject to examination by major taxing jurisdictions are as follows:

Jurisdiction	Years
United States	2008 - 2013
Canada	2011 - 2013
Arkansas	2010 - 2013
California	2009 - 2013
Georgia	2010 - 2013
Idaho	2011 - 2013
Illinois	2008 - 2013
Wisconsin	2009 - 2013

Tax credits and losses subject to expiration by major taxing jurisdictions are as follows (dollars in thousands):

Jurisdiction	Gross Values		Years
United States
Net operating losses	$	27,428	2030 - 2033
Foreign tax credits	3,832		2016 - 2019
Cellulosic biofuel credits	3,495		2015
Other federal tax credits	4,264		2026 - 2033
Connecticut tax losses	20,385		2018 - 2033
Georgia tax losses	7,267		2027 - 2033
Idaho tax credits	4,851		2013 - 2027
North Carolina tax credits	15,966		2015 - 2017
Oklahoma tax losses	35,122		2030 - 2033

As of December 31, 2013, there were no undistributed earnings relating to our Canadian subsidiary, Interlake Acquisition Corporation, as all historical earnings were repatriated under Cellu Tissue ownership. Management’s intent is to reinvest future earnings indefinitely.

A review of our uncertain income tax positions at December 31, 2013 and 2012 indicates that liabilities are required to be recorded for gross unrecognized tax benefits following authoritative accounting guidance. The following presents a roll forward of our unrecognized tax benefits and associated interest and penalties, as included in the Accrued Taxes line item in non-current liabilities in our Consolidated Balance Sheets.

(In thousands)	Gross Unrecognized Tax Benefits, Excluding Interest and Penalties			Interest and Penalties			Total Gross Unrecognized Tax Benefits
Balance at January 1, 2012	$	69,651		$	4,813		$	74,464
Increase in prior year tax positions	2,544			1,882			4,426
Increase in current year tax positions	154			—			154
Reductions as a result of a lapse of the applicable statute of limitations	(345		)	—			(345		)
Balance at December 31, 2012	$	72,004		$	6,695		$	78,699
Decrease in prior year tax positions	(69,816		)	(5,397		)	(75,213		)
Decrease due to settlements	(525		)	(777		)	(1,302		)
Increase in current year tax positions	469			5			474
Balance at December 31, 2013	$	2,132		$	526		$	2,658

The company has operations in many states within the U.S., as well as in Ontario, Canada, and is subject, at times, to tax audits in these jurisdictions. These tax audits by their nature are complex and can require multiple years to resolve. The final resolution of any such tax audits could result in either a reduction in the company’s accruals or an increase in its income tax provision, both of which could have an impact on the results of operations in any given period. With a few exceptions, the company is no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2009. The company regularly evaluates, assesses and adjusts these accruals in light of changing facts and circumstances, which could cause the effective tax rate to fluctuate from period to period.

In November 2013, the Internal Revenue Service released a memorandum from the Office of Chief Counsel relating to the tax treatment of the Alternative Fuel Mixture Tax Credit, or AFMTC. The memorandum concluded that excise tax credits and the corresponding payments were not items of gross income under the Internal Revenue Code. Based upon this memorandum, there was sufficient evidence for the company to reassess the uncertain tax position relating to the taxability of the AFMTC as more likely than not that the income from the 2009 year is not taxable and therefore a reduction to the reserve for uncertain tax positions in the amount of $62.6 million was recorded during the fourth quarter, net of the associated deferred tax asset. A total reduction to the reserve for uncertain tax positions, net of deferred tax assets associated with such positions, during the year totaled $69.1 million and was recorded as a benefit to income tax expense.

Unrecognized tax benefits net of related deferred tax assets at December 31, 2013, if recognized, would favorably impact our effective tax rate by decreasing our tax provision by $2.7 million. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For the years ended December 31, 2013, 2012 and 2011, we accrued interest and no penalties of $2.0 million, $1.9 million and $2.4 million, respectively, in our income tax provision.

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Equity-Based Compensation Plans Equity-Based Compensation Plans Summary of Status of Outstanding Performance Share Awards (Details) (Performance shares, USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Performance shares
Number of share
Beginning Balance	392,655	749,538	638,870
Granted	124,513	150,865	110,668
Settled	(246,592)	(499,680)	0
Forfeited	(10,735)	(8,068)	0
Ending Balance	259,841	392,655	749,538
Weighted Average Grant Date Fair Value
Beginning Balance	$ 44.67	$ 19.52	$ 13.00
Granted	$ 63.46	$ 40.24	$ 57.18
Settled	$ 47.19	$ 5.65	$ 0.00
Forfeited	$ 54.87	$ 42.15	$ 0.00
Ending Balance	$ 50.87	$ 44.67	$ 19.52
Aggregate intrinsic value
Aggregate intrinsic value	$ 13,642	$ 15,376	$ 26,691

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Recently Adopted and New Accounting Standards

12 Months Ended

Dec. 31, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted and Prospective Accounting Standards

NOTE 3 Recently Adopted and Prospective Accounting Standards

In February 2013, the Financial Accounting Standards Board issued Accounting Standard Update, or ASU, 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which expands the disclosure requirements for amounts reclassified out of accumulated other comprehensive income. This ASU requires an entity to present, either parenthetically on the face of the financial statements where net income is presented or in the notes to the financial statements, the effect of significant items reclassified in their entirety from accumulated other comprehensive income and identification of the respective line items effecting net income for instances when reclassification is required under GAAP. For items that are not required by GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures as required by GAAP. This ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements and is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We have adopted this ASU, which did not affect our Consolidated Financial Statements.

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Tax Years Subject to Examination by Major Taxing Jurisdictions (Details)	12 Months Ended
	Dec. 31, 2013
United States | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
United States | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Canada | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
Canada | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Arkansas | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
Arkansas | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
California | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2007
California | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Georgia | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
Georgia | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Idaho | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
Idaho | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Illinois | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2008
Illinois | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011
Wisconsin | Minimum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2007
Wisconsin | Maximum
Income Tax Examination [Line Items]
Income tax examination, year under examination	2011

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Nature of Operations and Basis of Presentation

12 Months Ended

Dec. 31, 2013

Disclosure Nature Of Operations And Basis Of Presentation Additional Information [Abstract]

Nature of Operations and Basis of Presentation

NOTE 1 Nature of Operations and Basis of Presentation

Clearwater Paper Corporation is a leading North American producer of private label tissue and paperboard products. We manufacture quality consumer tissue, away-from-home tissue, parent rolls (non-converted tissue product), machine-glazed tissue, bleached paperboard and pulp at 14 manufacturing locations in the U.S. and Canada. Our private label consumer tissue products - facial and bath tissue, paper towels and napkins - are used primarily at-home and are principally sold to major retailers and wholesale distributors, which include grocery, drug, mass-merchant and discount stores. Our paperboard is sold primarily in the high-end segment of the packaging industry, which demands high-quality construction and print surfaces for graphics. Our products are made primarily from wood fiber pulp.

Unless the context otherwise requires or unless otherwise indicated, references in this report to “Clearwater Paper Corporation,” “we,” “our,” “the company” and “us” refer to Clearwater Paper Corporation and its subsidiaries.

On November 28, 2011, we sold our Lewiston, Idaho, sawmill to Idaho Forest Group of Coeur d’Alene, Idaho. The transaction included the sale of our sawmill, planer mill, dry kilns and related assets along with log and finished goods inventories and timber under contract, in the aggregate amount of approximately $30 million. This sawmill was our only wood products facility.

On December 28, 2012, we acquired the assets of a wood chipping facility located in Clarkston, Washington, near our Lewiston, Idaho facility, in an effort to bolster our wood fiber position and obtain short-term and long-term cost savings. The total consideration associated with the acquisition was approximately $11 million, which includes contingent consideration over an 18 month period of up to $1.5 million in cash to be paid by the company, based on certain performance and indemnity guarantees. At December 31, 2013, this $1.5 million is considered restricted cash. We allocated the purchase price to the tangible and amortizable intangible assets acquired based on their estimated fair values at the date of acquisition, resulting in the recognition of approximately $6 million in equipment, $4 million in intangible assets for customer relationships and a $1 million intangible asset for a non-compete agreement with the former owners. No goodwill was recorded.

On March 6, 2013, we announced the planned permanent closure of our Thomaston, Georgia converting and distribution facility. The shutdown occurred gradually as converting lines were relocated and installed at our other facilities, with all operations at Thomaston having ceased as of the end of 2013. We incurred $6.0 million of costs associated with the closure in 2013.

On February 17, 2004, in an event subsequent to the close of our 2013 fiscal year, we announced the permanent and immediate closure of our Long Island, New York, tissue converting and distribution facility.

These consolidated financial statements include the financial condition and results of operations of Clearwater Paper Corporation and its wholly-owned subsidiaries. All intercompany transactions and balances between operations within the company have been eliminated.

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Summary of Significant Accouting Policies

12 Months Ended

Dec. 31, 2013

Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 Summary of Significant Accounting Policies

SIGNIFICANT ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., which we refer to in this report as 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 net sales and expenses during the reporting period. Significant areas requiring the use of estimates and measurement of uncertainty include determination of net realizable value for deferred tax assets, uncertain income tax positions, assessment of impairment of long-lived assets and goodwill, assessment of environmental matters, allocation of purchase price and fair value estimates for business combinations, equity-based compensation and pension and postretirement obligation assumptions. Actual results could differ from those estimates and assumptions.

SHORT-TERM INVESTMENTS AND RESTRICTED CASH

Our short-term investments, which are classified as available for sale, are invested primarily in demand deposits, which have very short maturity periods, and therefore earn an interest rate commensurate with low-risk instruments. Due to our investments' short-term maturity periods there is no significant difference between the investments' cost and fair value. We do not attempt to hedge our exposure to interest rate risk for our short-term investments. Our restricted cash in which the underlying instrument has a term of greater than twelve months from the balance sheet date is classified as non-current and is included in “Other assets” on our Consolidated Balance Sheet. As of December 31, 2013, substantially all restricted cash balances were classified as current and included in "Restricted cash" on our Consolidated Balance Sheet, compared to approximately $1.5 million of restricted cash classified as non-current and included in "Other assets, net" as of December 31, 2012.

TRADE ACCOUNTS RECEIVABLE

Trade accounts receivable are stated at the amount we expect to collect. Trade accounts receivable do not bear interest. The allowance for doubtful accounts is our best estimate of the losses we expect will result from the inability of our customers to make required payments. We generally determine the allowance based on a combination of actual historical write-off experience and an analysis of specific customer accounts. As of December 31, 2013 and 2012, we had allowances for doubtful accounts of $1.9 million and $1.6 million, respectively. Bad debt expense, net, charged to selling, general and administrative expenses during 2013, 2012 and 2011 was $1.5 million, $0.2 million and $1.0 million, respectively. All other activity impacting the allowance for doubtful accounts was immaterial for all periods.

INVENTORIES

At December 31, 2013, our inventories are stated at the lower of market or current average cost using the average cost method. Prior to the November 2011 sale of our Lewiston, Idaho, sawmill, we used the last-in, first-out, or LIFO, method to determine cost for our logs, wood fiber and the majority of our lumber.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost, including assets acquired under capital lease obligations and any interest costs capitalized, less accumulated depreciation. Depreciation of buildings, equipment and other depreciable assets is determined using the straight-line method. Estimated useful lives generally range from 10 to 40 years for land improvements; 10 to 40 years for buildings and improvements; 5 to 25 years for machinery and equipment; and 2 to 15 years for office and other equipment. Assets we acquire through business combinations have estimated lives that are typically shorter than the assets we construct or buy new.

LONG-LIVED ASSETS

Our long-lived assets include property, plant and equipment and amortizable intangible assets. We review the carrying value of long-lived assets for impairment annually and when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment of long-lived assets exists when the carrying value is not considered to be recoverable through future undiscounted cash flows from operations and the carrying value of the asset or asset group exceeds the estimated fair value.

GOODWILL AND INTANGIBLE ASSETS

Goodwill from an acquisition represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill and intangible assets resulted from our acquisition of Cellu Tissue Holdings, or Cellu Tissue, on December 27, 2010. Intangible assets also resulted from our December 2012 acquisition of a wood chipping facility. We used estimates in determining and assigning the fair value of goodwill and intangible assets, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows and fair values of the related operations. Our intangible assets have definite lives and are amortized over their estimated useful lives. We assess our intangibles for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

As a result of our acquisition of Cellu Tissue in December 2010, we recorded $229.5 million of goodwill as included on our Consolidated Balance Sheets as of December 31, 2013 and 2012. All of the recorded goodwill was assigned to our Consumer Products segment and reporting unit. Goodwill is not amortized but is tested for impairment annually as of November 1, as well as any time when events suggest impairment may have occurred. In the event the carrying value of our consumer products reporting unit, including goodwill, exceeds the estimated fair value of the reporting unit, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeds its implied fair value.

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. Two critical assumptions are the discount rate applied to pension plan obligations and the rate of return on plan assets. For other postretirement employee benefit, or OPEB, plans, which provide certain health care and life insurance benefits to qualified retired employees, critical assumptions in determining OPEB expense are the discount rate applied to benefit obligations and the assumed health care cost trend rates used in the calculation of benefit obligations. We also participate in multiemployer defined benefit pension plans. We make contributions to these multiemployer plans, as well as make contributions to a trust fund established to provide retiree medical benefits for a portion of these employees.

The discount rate used in the determination of pension benefit obligations and pension expense is determined based on a review of long-term high-grade bonds and management's expectations. To determine the expected long-term rate of return on pension assets, we employ a process that analyzes 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.

An increase in the discount rate or the rate of expected return on plan assets, all other assumptions remaining the same, would decrease pension plan expense, and conversely, a decrease in either of these measures would increase plan expense. The actual rates of return on plan assets may vary significantly from the assumptions used because of unanticipated changes in financial markets.

The estimated net loss and prior service cost (credit) for the defined benefit pension and OPEB plans is amortized from accumulated other comprehensive loss into net periodic cost (benefit) in accordance with current accounting guidance.

Periodic pension and OPEB expenses are included in “Cost of sales” and “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The expense is allocated to all business segments. In accordance with current accounting guidance governing defined benefit pension and other postretirement plans, at December 31, 2013 and 2012, long-term assets are recorded for overfunded single-employer plans and liabilities are recorded for underfunded single-employer plans. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the projected benefit obligation. For underfunded single-employer plans, the estimated liability to be payable in the next twelve months is recorded as a current liability, with the remaining portion recorded as a long-term liability.

INCOME TAXES

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate.

REVENUE RECOGNITION

We recognize revenue 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 for sales when shipping terms are free on board, or FOB, shipping point. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. Revenue from both domestic and foreign sales of our products can involve shipping terms of either FOB shipping point or FOB destination or other shipping terms, depending upon the sales agreement with the customer.

In 2013 we had one customer in the Consumer Products segment, the Kroger Company, that accounted for approximately $204 million, or 10.8%, of our total company net sales. In 2012 and 2011, we did not have any single customer that accounted for 10% or more of our total net sales.

We provide for trade promotions, customer cash discounts, customer returns and other deductions as reductions to net sales in the same period as the related revenues are recognized. Provisions for these items are determined based on historical experience or specific customer arrangements.

Revenue is recognized net of any sales taxes collected. Sales taxes, when collected, are recorded as a current liability and remitted to the appropriate governmental entities.

ENVIRONMENTAL

As part of our corporate policy, we have an ongoing process to monitor, report on and comply with environmental requirements. Based on this ongoing process, accruals for environmental liabilities that are not within the scope of specific authoritative guidance related to accounting for asset retirement obligations or conditional asset retirement obligations are established in accordance with guidance related to accounting for contingencies. We estimate our environmental liabilities based on various assumptions and judgments, the specific nature of which varies in light of the particular facts and circumstances surrounding each environmental liability. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude and timing of required investigation, remediation and monitoring activities and the probable cost of these activities. Currently, we are not aware of any material environmental liabilities and have accrued for only specific environmental remediation costs that we have determined are probable and for which an amount can be reasonably estimated. Fees for professional services associated with environmental and legal issues are expensed as incurred.

STOCKHOLDERS’ EQUITY

On February 5, 2014, in an event subsequent to the close of our 2013 fiscal year, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. The repurchase program authorizes purchases of our common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. We have no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

On January 17, 2013, we announced that our Board of Directors had approved a new stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock, which was completed in 2013. The repurchases were authorized to be carried out by the utilization of a number of different methods, including but not limited to, open market purchases, accelerated buybacks and negotiated block purchases. On March 1, 2013, we entered into an accelerated stock buyback, or ASB, agreement with a major financial institution to repurchase an aggregate of $50.0 million of our outstanding common stock. In total, 1,039,513 shares of our outstanding common stock were delivered under the ASB agreement at an average repurchase price of $48.10 per share. In addition to the ASB agreement, we also made repurchases of 1,030,657 shares of our outstanding common stock on the open market at a total cost of $50.0 million, representing an an average price of $48.51 per share.

On July 28, 2011, we announced that our Board of Directors had authorized the repurchase of up to $30.0 million of our common stock. Under the stock repurchase program, we were authorized to repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. We completed this repurchase program in the fourth quarter of 2012. The total number of shares repurchased under this program was 853,470 at an aggregate cost of $30.0 million and an average price of $35.15 per share.

In addition, on July 28, 2011, we announced that our Board of Directors had declared a two-for-one stock split of our outstanding shares of common stock, which was effected in the form of a stock dividend distributed on August 26, 2011 to shareholders of record on August 12, 2011. On the August 26, 2011 distribution date, there were 11,373,460 shares of common stock outstanding. Immediately following the distribution date, there were 22,746,920 outstanding shares of common stock. All common share and per share amounts have been adjusted for the stock split effected in the form of a stock dividend.

DERIVATIVES

We had no activity during the years ended December 31, 2013, 2012 and 2011 that required hedge or derivative accounting treatment. However, to partially mitigate our exposure to market risk for changes in utility commodity pricing, we use firm price contracts to supply a portion of the natural gas requirements for our manufacturing facilities. As of December 31, 2013, these contracts covered approximately 55% of the expected average monthly requirements for the first quarter of 2014. For the years ended December 31, 2013, 2012 and 2011, approximately 16%, 29% and 2%, respectively, of our natural gas volumes were supplied through firm price contracts. These contracts qualify for treatment as “normal purchases or normal sales” under authoritative guidance and thus require no mark-to-market adjustment.

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Inventories

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

NOTE 4 Inventories

(In thousands)	2013		2012
Pulp, paperboard and tissue products	$	182,715	$	147,627
Materials and supplies	69,836		67,889
Logs, pulpwood, chips and sawdust	15,237		15,950
	$	267,788	$	231,466

During the three months ended March 31, 2012, the remaining lumber inventory from the sawmill was sold. The sale of this inventory, which was valued at costs prevailing in prior years under the LIFO method, had the effect of increasing earnings before income taxes in the period ended March 31, 2012 by an immaterial amount. The fluctuations of LIFO inventories increased earnings before income taxes by approximately $10.6 million in 2011.

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Debt - Additional Information (Details) (USD $)	12 Months Ended			0 Months Ended	2 Months Ended					0 Months Ended		12 Months Ended			0 Months Ended	1 Months Ended			0 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jan. 23, 2013 Senior Notes	Feb. 22, 2013 Senior Notes	Jan. 21, 2013 Senior Notes	Feb. 01, 2012 Senior Notes	Jan. 21, 2013 Senior Notes Prior to February 1, 2016	Jan. 21, 2013 Senior Notes Before February First, 2018	Oct. 22, 2010 Senior Notes Due 2018	Oct. 22, 2010 Senior Notes Due 2018 Senior Notes Before November 1, 2014	Dec. 31, 2009 Senior Notes Due 2016	Jun. 30, 2009 Senior Notes Due 2016	Dec. 31, 2010 Senior Notes Due 2016 Senior Notes Prior to June 15, 2013	Jan. 23, 2013 Senior Notes Due Twenty Twenty-Three [Member] Senior Notes Prior to February 1, 2016 Maximum	Nov. 26, 2008 Revolving Credit Facility	Dec. 31, 2013 Revolving Credit Facility	Dec. 31, 2013 Revolving Credit Facility Minimum	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility Minimum	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility Maximum	Dec. 31, 2013 Federal Fund Rate [Member] Revolving Credit Facility Maximum	Dec. 31, 2013 Base Rate [Member] Revolving Credit Facility Minimum	Dec. 31, 2013 Base Rate [Member] Revolving Credit Facility Maximum
Debt Instrument [Line Items]
Debt instrument, principal amount						$ 275,000,000				$ 375,000,000			$ 150,000,000
Debt instrument, maturity date										Nov. 01, 2018		Jun. 15, 2016
Debt instrument, interest rate							4.50%			7.125%			10.625%
Proceeds from long-term debt	275,000,000	0	0	271,000,000						367,500,000
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed															35.00%
Redemption Price					100.00%			104.50%	100.00%		100.00%			100.00%
Debt instrument, price													98.792%
Debt instrument principal amount redeemed					166,000,000
Gain (loss) on extinguishment of debt	(17,058,000)	0	0		12,600,000
Accrued interest	9,691,000	5,242,000			3,000,000
Credit facility, maximum borrowing capacity																125,000,000	125,000,000
Amount available as percentage of eligible accounts receivable																	85.00%
Amount available as percentage of eligible inventories																	65.00%
Earliest extended term of revolving loan																Sep. 30, 2016
Outstanding stand by letters of credit																	6,600,000
Interest rate spread																			1.75%	1.75%	2.25%	0.50%	1.25%	1.75%
Credit facility available to draw																	$ 118,400,000
Percentage of availability triggers covenant requirement under credit facility																	12.50%
Debt covenant, actual fixed charge ratio																	2.5	1.0

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Fair Value Measurements Estimated Fair Values of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, restricted cash, and short-term investments (Level 1)	$ 95,206	$ 34,079
Long-term debt (Level 1)	650,000	523,933
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, restricted cash, and short-term investments (Level 1)	95,206	34,079
Long-term debt (Level 1)	$ 651,313	$ 572,625

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Savings, Pension and Other Postretirement Employee Benefit Plans Additional Information (Details) (USD $)	12 Months Ended						1 Months Ended						3 Months Ended	12 Months Ended											12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 IAM	Dec. 31, 2012 IAM	Dec. 31, 2011 IAM	Nov. 30, 2011 USW	Oct. 31, 2011 USW	Dec. 31, 2013 Maximum Plan A [Member]	Dec. 31, 2013 Maximum Plan B [Member]	Dec. 31, 2013 Minimum Plan B [Member]	Dec. 31, 2013 Minimum Plan C [Member]	Dec. 31, 2011 Pension Benefit Plans	Dec. 31, 2013 Pension Benefit Plans	Dec. 31, 2012 Pension Benefit Plans	Dec. 31, 2011 Pension Benefit Plans	Dec. 31, 2013 Other Postretirement Employee Benefit Plans	Dec. 31, 2012 Other Postretirement Employee Benefit Plans	Dec. 31, 2011 Other Postretirement Employee Benefit Plans	Dec. 31, 2013 Other Postretirement Employee Benefit Plans Maximum	Dec. 31, 2013 Other Postretirement Employee Benefit Plans Minimum	Dec. 31, 2013 Company-Sponsored Pension Plans	Dec. 31, 2013 Non Qualified Pension Plans	Dec. 31, 2013 Fair Value, Inputs, Level 1 Other Postretirement Employee Benefit Plans	Dec. 31, 2013 Employer 401 (k) Matching Contribution [Member]	Dec. 31, 2012 Employer 401 (k) Matching Contribution [Member]	Dec. 31, 2011 Employer 401 (k) Matching Contribution [Member]	Dec. 31, 2013 Cost of Sales [Member]	Dec. 31, 2013 Selling, General and Administrative Expenses [Member]	Dec. 31, 2013 Minimum Contributions, Total [Member] Company-Sponsored Pension Plans	Dec. 31, 2013 Minimum Contributions, Required by Actuary [Member] Company-Sponsored Pension Plans	Dec. 31, 2013 Minimum Contributions, Requirement of Previous Arrangement [Member] Company-Sponsored Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Funded Percentage Of Pension Protection Plan									65.00%	80.00%	65.00%	80.00%
Employer contributions																									$ 16,800,000	$ 14,900,000	$ 8,100,000
Curtailments														769,000	477,000	2,776,000	0	0	0
Loss related to plan changes in Net Periodic Benefit Cost	9,098,000	7,324,000	4,869,000
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax													400,000
Net loss expected to be recognized as component of net periodic benfit over the next fiscal year														10,000,000
Prior service cost, expected to be recognized as a component of net periodic benefit cost over the next fiscal year															200,000		500,000
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax																												14,200,000	3,300,000
Medicare Part D subsidies received														0	0		308,000	569,000
Assumed health care cost trend rates used to determine the company's benefit obligations and expense																	7.70%
Assumed health care cost trend rates, graded rate																				4.60%	4.30%
Expected year when trend rate to be reached																	70 years
Securities lending agreement, percentage of market value of loaned securities and accrued interest																	102.00%
Value of corporate common stocks loaned under the lending agreement																	300,000
Fair value of plan assets	286,598,000	254,556,000											218,557,000	286,598,000	254,556,000	218,557,000	20,000	19,000	18,000					20,000
Funded status at end of year														6,790,000	78,701,000		107,307,000	134,599,000
Employer contribution														15,386,000	20,882,000		0	0				15,100,000	300,000
Estimated cash contributions in next fiscal year																														$ 15,000,000	$ 8,000,000	$ 7,000,000
Contribution rates				4.0	3.25	3	2.6714	2.4285

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Accounts Payable and Accrued Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts Payable and Accrued Liabilities [Abstract]
Trade accounts payable	$ 108,192	$ 75,949
Accrued wages, salaries and employee benefits	38,563	42,491
Accrued utilities	8,309	8,205
Accrued taxes other than income taxes payable	6,322	6,993
Accrued interest	9,691	5,242
Accrued discounts and allowances	6,410	4,785
Other	13,161	21,931
Accounts payable and accrued liabilities	$ 190,648	$ 165,596

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Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash	$ 23,675	$ 12,579	$ 8,439	$ 18,928
Short-term investments	70,000	20,000
Restricted cash	1,500	0
Receivables, net	158,874	154,143
Taxes receivable	10,503	20,828
Inventories	267,788	231,466
Deferred tax assets	37,538	17,136
Prepaid expenses	5,523	12,314
Total current assets	575,401	468,466
Property, plant and equipment, net	884,698	877,377
Goodwill	229,533	229,533
Intangible assets, net	40,778	47,753
Investment in subsidiary	0	0
Pension assets	4,488	0
Other assets, net	9,927	10,327
TOTAL ASSETS	1,744,825	1,633,456	1,571,318
Current liabilities:
Accounts payable and accrued liabilities	190,648	165,596
Current liability for pensions and other postretirement employee benefits	8,778	9,137
Total current liabilities	199,426	174,733
Long-term debt	650,000	523,933
Liability for pensions and other postretirement employee benefits	109,807	204,163
Other long-term obligations	52,942	50,910
Accrued taxes	2,658	78,699
Deferred tax liabilities (assets)	(124,898)	(60,124)
Accumulated other comprehensive loss, net of tax	(58,093)	(115,693)
Stockholders' equity excluding accumulated other comprehensive loss	663,187	656,587
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	1,744,825	1,633,456
Issuer
Current assets:
Cash	18,273	11,105	2,146	15,719
Short-term investments	70,000	20,000
Restricted cash	1,500
Receivables, net	119,278	109,129
Taxes receivable	3,709	20,712
Inventories	198,476	163,422
Deferred tax assets	42,289	11,750
Prepaid expenses	4,704	11,441
Total current assets	458,229	347,559
Property, plant and equipment, net	636,662	618,076
Goodwill	229,533	229,533
Intangible assets, net	0	0
Intercompany receivable (payable)	91,865	108,530
Investment in subsidiary	196,763	209,431
Pension assets	4,488
Other assets, net	8,772	9,948
TOTAL ASSETS	1,626,312	1,523,077
Current liabilities:
Accounts payable and accrued liabilities	140,125	132,360
Current liability for pensions and other postretirement employee benefits	8,778	9,137
Total current liabilities	148,903	141,497
Long-term debt	650,000	523,933
Liability for pensions and other postretirement employee benefits	109,807	204,163
Other long-term obligations	51,740	49,102
Accrued taxes	1,430	76,617
Deferred tax liabilities (assets)	(59,338)	13,129
Accumulated other comprehensive loss, net of tax	(58,093)	(115,693)
Stockholders' equity excluding accumulated other comprehensive loss	663,187	656,587
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	1,626,312	1,523,077
Guarantor Subsidiaries
Current assets:
Cash	0	5	4,359	2,175
Receivables, net	38,063	41,431
Taxes receivable	(15,882)	116
Inventories	65,017	63,476
Deferred tax assets	6,094	4,595
Prepaid expenses	695	708
Total current assets	93,987	110,331
Property, plant and equipment, net	231,225	242,818
Intangible assets, net	39,619	46,379
Intercompany receivable (payable)	(63,932)	(91,881)
Investment in subsidiary	5,575	6,204
Pension assets	0
Other assets, net	1,155	379
TOTAL ASSETS	307,629	314,230
Current liabilities:
Accounts payable and accrued liabilities	45,736	30,630
Total current liabilities	45,736	30,630
Other long-term obligations	1,202	1,808
Accrued taxes	911	1,771
Deferred tax liabilities (assets)	(63,017)	(70,590)
Stockholders' equity excluding accumulated other comprehensive loss	196,763	209,431
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	307,629	314,230
Non-Guarantor Subsidiaries
Current assets:
Cash	5,402	1,469	1,934	1,034
Receivables, net	2,700	5,612
Taxes receivable	324	0
Inventories	4,295	4,568
Deferred tax assets	5	0
Prepaid expenses	124	165
Total current assets	12,850	11,814
Property, plant and equipment, net	16,811	16,483
Intangible assets, net	1,159	1,374
Intercompany receivable (payable)	(16,431)	(15,858)
Pension assets	0
TOTAL ASSETS	14,389	13,813
Current liabilities:
Accounts payable and accrued liabilities	5,954	4,635
Total current liabilities	5,954	4,635
Accrued taxes	317	311
Deferred tax liabilities (assets)	(2,543)	(2,663)
Stockholders' equity excluding accumulated other comprehensive loss	5,575	6,204
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	14,389	13,813
Eliminations
Current assets:
Cash	0	0	0	0
Receivables, net	(1,167)	(2,029)
Taxes receivable	22,352
Deferred tax assets	(10,850)	791
Total current assets	10,335	(1,238)
Intercompany receivable (payable)	(11,502)	(791)
Investment in subsidiary	(202,338)	(215,635)
Pension assets	0
TOTAL ASSETS	(203,505)	(217,664)
Current liabilities:
Accounts payable and accrued liabilities	(1,167)	(2,029)
Total current liabilities	(1,167)	(2,029)
Deferred tax liabilities (assets)	0	0
Stockholders' equity excluding accumulated other comprehensive loss	(202,338)	(215,635)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ (203,505)	$ (217,664)

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets at the balance sheet dates are comprised of the following:

	December 31, 2013
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(17,234	)	$	36,723
Trade names and trademarks	10.0	5,300		(1,590		)	3,710
Non-compete agreements	2.5 - 5.0	1,674		(1,329		)	345
Total intangible assets		$	60,931	$	(20,153	)	$	40,778

	December 31, 2012
(Dollars in thousands, lives in years)	Useful Life	Historical Cost		Accumulated Amortization			Net Balance
Customer relationships	9.0	$	53,957	$	(11,237	)	$	42,720
Trade names and trademarks	10.0	5,300		(1,060		)	4,240
Non-compete agreements	2.5 - 5.0	1,674		(881		)	793
Total intangible assets		$	60,931	$	(13,178	)	$	47,753

Estimated Future Amortization Expense Related to Intangible Assets

As of December 31, 2013, estimated future amortization expense related to intangible assets is as follows (in thousands):

Years ending December 31,	Amount
2014	$	6,663
2015	6,608
2016	6,587
2017	6,587
2018	6,524
Thereafter	7,809
Total	$	40,778

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Goodwill and Intangible Assets Additional Information (Details) (Non-compete agreements)	12 Months Ended
	Dec. 31, 2013
Minimum
Useful Life	2 years 6 months
Maximum
Useful Life	5 years

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Debt

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Debt

NOTE 9 Debt

$375 MILLION SENIOR NOTES DUE 2018

On October 22, 2010, we sold $375 million aggregate principal amount of senior notes, which we refer to as the 2010 Notes. The 2010 Notes mature on November 1, 2018, have an interest rate of 7.125% and were issued at their face value. The issuance of these notes generated net proceeds of $367.5 million after deducting offering expenses.

The 2010 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2010 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that we do not designate as an unrestricted subsidiary under the indenture governing the 2010 Notes. The 2010 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2010 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2010 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

We have the option to redeem all or a portion of the 2010 Notes at any time before November 1, 2014 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after November 1, 2014, we may redeem all or a portion of the 2010 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2010 Notes upon the sale of certain assets and upon a change of control.

REDEMPTION OF $150 MILLION SENIOR NOTES DUE 2016 AND ISSUANCE OF $275 MILLION SENIOR NOTES DUE 2023

In June 2009, we issued senior unsecured notes, which we refer to as the 2009 Notes, in the aggregate principal amount of $150 million. The 2009 Notes were due on June 15, 2016 and had an interest rate of 10.625%. The 2009 Notes were issued at a price equal to 98.792% of their face value.

We had the option to redeem all or a portion of the 2009 Notes at any time prior to June 15, 2013 at a redemption price equal to 100% of the principal amount thereof plus a “make whole” premium and accrued and unpaid interest. On February 22, 2013, we exercised our option to redeem all of the 2009 Notes at a redemption price equal to approximately $166 million, which consisted of 100% of the principal amount, plus a $12.6 million “make whole” premium and accrued and unpaid interest of approximately $3.0 million. The make whole premium and a portion of the unpaid interest, as well as an unamortized discount and deferred issuance costs associated with the 2009 Notes, were recorded as components of the debt retirement costs totaling $17.1 million in the first quarter of 2013, as included in the accompanying Consolidated Statement of Operations. Proceeds to fund the redemption of the 2009 Notes were made available through the sale of $275 million aggregate principal amount of senior notes on January 23, 2013, which we refer to as the 2013 Notes. The 2013 Notes mature on February 1, 2023, have an interest rate of 4.5% and were issued at their face value. The issuance of these notes generated net proceeds of approximately $271 million after deducting offering expenses.

The 2013 Notes are guaranteed by all of our direct and indirect domestic subsidiaries. The 2013 Notes will also be guaranteed by each of our future direct and indirect domestic subsidiaries that we do not designate as an unrestricted subsidiary under the indenture governing the 2013 Notes. The 2013 Notes are equal in right of payment with all other existing and future unsecured senior indebtedness and are senior in right of payment to any future subordinated indebtedness. The 2013 Notes are effectively subordinated to all of our existing and future secured indebtedness, including borrowings under our secured revolving credit facility, which is secured by certain of our accounts receivable, inventory and cash. The terms of the 2013 Notes limit our ability and the ability of any restricted subsidiaries to borrow money; pay dividends; redeem or repurchase capital stock; make investments; sell assets; create restrictions on the payment of dividends or other amounts to us from any restricted subsidiaries; enter into transactions with affiliates; enter into sale and lease back transactions; create liens; and consolidate, merge or sell all or substantially all of our assets.

Prior to February 1, 2016, we may redeem up to 35% of the 2013 Notes at a redemption price equal to 104.5% of the principal amount plus accrued and unpaid interest with the proceeds from one or more qualified equity offerings. We have the option to redeem all or a portion of the 2013 Notes at any time before February 1, 2018 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium. On or after February 1, 2018, we may redeem all or a portion of the 2013 Notes at specified redemption prices plus accrued and unpaid interest. In addition, we may be required to make an offer to purchase the 2013 Notes upon the sale of certain assets and upon a change of control.

REVOLVING CREDIT FACILITY

On November 26, 2008, we entered into a $125 million senior secured revolving credit facility with certain financial institutions. The amount available to us under the revolving credit facility is based on the lesser of 85% of our eligible accounts receivable plus approximately 65% of our eligible inventory, or $125 million. The revolving credit facility has been subsequently amended and expires on September 30, 2016.

As of December 31, 2013, there were no borrowings outstanding under the credit facility, but approximately $6.6 million of the credit facility was being used to support outstanding standby letters of credit. Loans under the credit facility bear interest (i) for LIBOR loans, LIBOR plus between 1.75% and 2.25% and (ii) for base rate loans, a per annum rate equal to the greater of (a) the prime rate for such day; (b) the federal funds effective rate for such day, plus 0.50%; or (c) LIBOR for a 30-day interest period as determined on such day, plus between 1.25% and 1.75%. The percentage margin on all loans is based on our fixed charge coverage ratio for the most recent four quarters. As of December 31, 2013, we would have been permitted to draw approximately $118.4 million under the credit facility at LIBOR plus 1.75%, or base rate plus 1.25%.

A minimum fixed charge coverage ratio is the only financial covenant requirement under our credit facility and is triggered when there are any commitments or obligations outstanding and availability falls below 12.5% or an event of default exists, at which time the minimum fixed charge coverage ratio must be at least 1.0-to-1.0. As of December 31, 2013, the fixed charge coverage ratio for the most recent four quarters was 2.5-to-1.0.

Our obligations under the revolving credit facility are secured by certain of our accounts receivable, inventory and cash. The terms of the credit facility contain various provisions that limit our discretion in the operations of our business by restricting our ability to, among other things, pay dividends; redeem or repurchase capital stock; create, incur or guarantee certain debt; incur liens on certain properties; make capital expenditures; enter into certain affiliate transactions; enter into certain hedging arrangements; and consolidate with or merge with another entity. The revolving credit facility contains usual and customary affirmative and negative covenants and usual and customary events of default.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 15 Fair Value Measurements

The estimated fair values of our financial instruments as of our balance sheet dates are presented below:

	2013				2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash, short-term investments and restricted cash (Level 1)	$	95,206	$	95,206	$	34,079	$	34,079
Long-term debt (Level 1)	650,000		651,313		523,933		572,625

Accounting guidance establishes a framework for measuring the fair value of financial instruments, providing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities, or “Level 1” measurements, followed by quoted prices of similar assets or observable market data, or “Level 2” measurements, and the lowest priority to unobservable inputs, or “Level 3” measurements.

The asset’s or liability’s 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 should seek to maximize the use of observable inputs and minimize the use of unobservable inputs.

Cash, short-term investments, restricted cash and long-term debt are the only items measured at fair value on a recurring basis. The carrying amount of our short-term investments approximates fair value due to their very short maturity periods, and such investments are at or near market yields.

We do not have any financial assets measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets held and used that are measured at fair value resulting from impairment, if deemed necessary.

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Property, Plant and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Machinery and equipment	$ 1,937,914	$ 1,866,263
Buildings and improvements	304,971	299,642
Land improvements	54,277	52,929
Land	11,827	11,827
Office and other equipment	11,951	10,946
Construction in progress	40,204	37,160
Property, plant and equipment, gross, total	2,361,144	2,278,767
Less accumulated depreciation and amortization	(1,476,446)	(1,401,390)
Property, plant and equipment, net	$ 884,698	$ 877,377

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of our financial instruments as of our balance sheet dates are presented below:

	2013				2012
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash, short-term investments and restricted cash (Level 1)	$	95,206	$	95,206	$	34,079	$	34,079
Long-term debt (Level 1)	650,000		651,313		523,933		572,625

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash	$ 23,675	$ 12,579
Short-term investments	70,000	20,000
Restricted cash	1,500	0
Receivables, net	158,874	154,143
Taxes receivable	10,503	20,828
Inventories	267,788	231,466
Deferred tax assets	37,538	17,136
Prepaid expenses	5,523	12,314
Total current assets	575,401	468,466
Property, plant and equipment, net	884,698	877,377
Goodwill	229,533	229,533
Intangible assets, net	40,778	47,753
Pension assets	4,488	0
Other assets, net	9,927	10,327
TOTAL ASSETS	1,744,825	1,633,456
Current liabilities:
Accounts payable and accrued liabilities	190,648	165,596
Current liability for pensions and other postretirement employee benefits	8,778	9,137
Total current liabilities	199,426	174,733
Long-term debt	650,000	523,933
Liability for pensions and other postretirement employee benefits	109,807	204,163
Other long-term obligations	52,942	50,910
Accrued taxes	2,658	78,699
Deferred tax liabilities	124,898	60,124
Stockholders' equity:
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued
Common stock, par value $0.0001 per share, 100,000,000 authorized shares, 23,840,683 and 23,101,710 shares issued	2	2
Additional paid-in capital	326,546	326,901
Retained earnings	466,639	359,684
Treasury stock, at cost, common shares–853,470 and 333,300 shares repurchased	(130,000)	(30,000)
Accumulated other comprehensive loss, net of tax	(58,093)	(115,693)
Total stockholders’ equity	605,094	540,894
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,744,825	$ 1,633,456

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Segment Information Reportable Segments Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Segment Reporting Information [Line Items]
Net sales	$ 470,159	$ 487,845	$ 471,002	$ 460,824	$ 462,701	$ 480,233	$ 473,572	$ 457,798	$ 1,889,830		$ 1,874,304		$ 1,927,973
Income from operations	38,289	18,842	29,714	12,483	35,480	39,762	44,497	25,648	99,328		145,387		115,445
Depreciation and amortization									90,272		79,333		76,933
Assets	1,744,825				1,633,456				1,744,825		1,633,456		1,571,318
Capital expenditures									86,508		207,115		137,743
Consumer Products
Segment Reporting Information [Line Items]
Net sales									1,149,692		1,134,556		1,092,133
Income from operations									52,799		93,347		42,806
Depreciation and amortization									65,197		54,547		50,391
Assets	1,215,919				1,178,438				1,215,919		1,178,438		1,081,988
Capital expenditures									46,647		183,330		117,059
Pulp and Paperboard
Segment Reporting Information [Line Items]
Net sales									740,138		739,748		835,840
Income from operations									95,781	[1]	103,910	[1]	92,827	[1]
Depreciation and amortization									23,266		23,113		26,073
Assets	359,735				344,614				359,735		344,614		355,886
Capital expenditures									30,846		19,954		15,355
Operating Segments
Segment Reporting Information [Line Items]
Income from operations									148,580		197,257		135,633
Assets	1,575,654				1,523,052				1,575,654		1,523,052		1,437,874
Capital expenditures									77,493		203,284		132,414
Corporate
Segment Reporting Information [Line Items]
Income from operations									(49,252)	[1]	(51,870)	[1]	(20,188)	[1]
Depreciation and amortization									1,809		1,673		469
Assets	169,171				110,404				169,171		110,404		133,444
Capital expenditures									$ 9,015		$ 3,831		$ 5,329

[1] Results for Pulp and Paperboard for 2011 included additional expenses associated with the sale of the Lewiston, Idaho sawmill, which were partially offset by LIFO inventory liquidation and other adjustments recorded at the corporate level.

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Reclassification out of Accumulated Other Comprehensive Income (Notes)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income [Text Block]

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss at the balance sheet dates is comprised of the following:

(In thousands)	Foreign Currency Translation Adjustments1			Pension and Other Post Retirement Employee Benefit Plans Adjustments			Total
Balance at December 31, 2012	$	(874	)	$	(114,819	)	$	(115,693	)
Other comprehensive income before reclassifications	—			9,468			9,468
Amounts reclassified from accumulated other comprehensive loss	—			48,132			48,132
Other comprehensive income, net of tax2	—			57,600			57,600
Balance at December 31, 2013	$	(874	)	$	(57,219	)	$	(58,093	)

¹ This balance consists of unrealized foreign currency translation adjustments related to the operations of our Canadian subsidiary before its functional currency was changed from Canadian dollars to U.S. dollars in 2012.

² Net periodic costs associated with our pension and other postretirement employee benefit plans included in other comprehensive income and reclassified from accumulated other comprehensive loss includes $83.6 million of net gain on plan assets, $14.8 million of actuarial loss amortization, $5.1 million of prior service costs arising during the period, $0.8 million of curtailments and $0.2 million related to prior service credit, net of tax of $36.3 million. These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs in Note 12, “Pension and Other Postretirement Employee Benefit Plans.”

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Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Employee benefits	$ 8,612	$ 8,630
Postretirement employee benefits	41,515	52,751
Incentive compensation	8,937	9,130
Deferred Tax Assets, Inventory	5,898	0
Pensions	152	31,140
Federal and state credit carryforwards	27,597	20,447
Net operating losses	13,930	7,649
Federal benefit from state taxes resulting from uncertain tax positions	0	5,595
Other	7,390	5,757
Total deferred tax assets	114,031	141,099
Valuation allowance	(13,622)	(14,957)
Deferred tax assets, net of valuation allowance	100,409	126,142
Deferred tax liabilities:
Plant and equipment	(178,227)	(157,973)
Intangible assets	(9,542)	(10,843)
Deferred Tax Liabilities, Inventory	0	314
Deferred Tax Liabilities, Gross	187,769	169,130
Total deferred tax liabilities	$ (87,360)	$ (42,988)

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Equity-Based Compensation Plans Equity-Based Compensation Plans Summary of Status of Outstanding RSU Awards (Details) (Restricted stock units, USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restricted stock units
Number of share
Beginning Balance	169,344	63,727	169,344	437,272
Granted		72,702	52,294	23,138
Vested	(288,336)	(30,190)	(155,177)	(286,486)
Forfeited		(3,581)	(2,734)	(4,580)
Ending Balance		102,658	63,727	169,344
Weighted Average Grant Date Fair Value
Beginning Balance	$ 11.33	$ 35.57	$ 11.33	$ 6.96
Granted		$ 43.44	$ 34.59	$ 38.42
Vested		$ 39.21	$ 8.82	$ 6.88
Forfeited		$ 42.03	$ 34.07	$ 8.64
Ending Balance		$ 39.85	$ 35.57	$ 11.33
Aggregate intrinsic value
Aggregate intrinsic value		$ 5,390	$ 2,496	$ 6,030

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Certain Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract]
Projected benefit obligation	$ 293,388	$ 333,257
Accumulated benefit obligation	293,388	333,257
Fair value of plan assets	$ 286,598	$ 254,556

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Additional information [Abstract]

Commitments and Contingencies

NOTE 16 Commitments and Contingencies

LEASE COMMITMENTS

Our operating leases cover manufacturing, office, warehouse and distribution space, equipment and vehicles, which expire at various dates through 2028. Additionally, we have capital leases related to our North Carolina converting and manufacturing facilities. As leases expire, it can be expected that, in the normal course of business, certain leases will be renewed or replaced.

As of December 31, 2013, under current operating and capital lease contracts, we had future minimum lease payments as follows:

(In thousands)	Capital			Operating
2014	$	2,375		$	17,335
2015	2,420			12,926
2016	2,466			9,823
2017	2,513			8,555
2018	2,560			6,141
Thereafter	34,802			10,478
Total future minimum lease payments	$	47,136		$	65,258
Less interest portion	(23,141		)
Present value of future minimum lease payments	$	23,995

Rent expense for operating leases was $19.4 million, $16.6 million and $16.1 million for the years ended December 31, 2013, 2012 and 2011, respectively.

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One Percentage Point Change in Health Care Cost Trend Rates (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
Effect of 1% increase on total service and interest cost components	$ 521
Effect of 1% decrease on total service and interest cost components	(438)
Effect of 1% increase on postretirement employee benefit obligation	9,304
Effect of 1% decrease on postretirement employee benefit obligation	$ (7,997)

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Savings, Pension and Other Postretirement Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Changes in Benefit Obligation, Plan Assets and Funded Status for Company-Sponsored Benefit Plans

The changes in benefit obligation, plan assets and funded status for company-sponsored benefit plans as of December 31 are as follows:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Benefit obligation at beginning of year	$	333,257		$	307,658		$	134,618		$	136,710
Service cost	1,738			2,485			552			693
Interest cost	13,375			14,693			4,730			5,815
Plan changes	—			—			5,106			(5,278		)
Actuarial (gains) losses	(36,859		)	30,612			(30,322		)	3,151
Medicare Part D subsidies received	—			—			308			569
Benefits paid	(18,123		)	(22,191		)	(7,665		)	(7,042		)
Benefit obligation at end of year	293,388			333,257			107,327			134,618
Fair value of plan assets at beginning of year	254,556			218,557			19			18
Actual return on plan assets	34,779			37,308			1			1
Employer contribution	15,386			20,882			—			—
Benefits paid	(18,123		)	(22,191		)	—			—
Fair value of plan assets at end of year	286,598			254,556			20			19
Funded status at end of year	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the Consolidated Balance Sheets:

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2013			2012
Noncurrent asset	4,488			—			—			—
Current liabilities	$	(364	)	$	(281	)	$	(8,414	)	$	(8,856	)
Noncurrent liabilities	(10,914		)	(78,420		)	(98,893		)	(125,743		)
Net amount recognized	$	(6,790	)	$	(78,701	)	$	(107,307	)	$	(134,599	)

Amounts Recognized (Pre-tax) in Accumulated Other Comprehensive Loss

Amounts recognized (pre-tax) in Accumulated Other Comprehensive Loss as of December 31 consist of:

	Pension Benefit Plans				Other Postretirement Employee Benefit Plans
(In thousands)	2013		2012		2013			2012
Net loss (gain)	$	109,218	$	177,343	$	(5,915	)	$	24,408
Prior service cost (credit)	308		1,414		(896		)	(6,504		)
Net amount recognized	$	109,526	$	178,757	$	(6,811	)	$	17,904

Certain Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

Information as of December 31 for certain pension plans included above with accumulated benefit obligations in excess of plan assets were as follows:

(In thousands)	2013		2012
Projected benefit obligation	$	293,388	$	333,257
Accumulated benefit obligation	293,388		333,257
Fair value of plan assets	286,598		254,556

Pre-tax Components of Net Periodic Cost

Pre-tax components of Net Periodic Cost and other amounts recognized in Other Comprehensive Income (Loss) for the years ended December 31 were as follows:

Net Periodic Cost (Benefit):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Service cost	$	1,738		$	2,485		$	7,725		$	552		$	693		$	702
Interest cost	13,375			14,693			15,092			4,730			5,815			6,857
Expected return on plan assets	(18,352		)	(19,685		)	(19,532		)	—			—			—
Amortization of prior service cost (credit)	337			634			1,193			(502		)	(2,680		)	(1,795		)
Amortization of actuarial loss	14,840			12,085			8,382			—			—			—
Curtailments	769			477			2,776			—			—			—
Net periodic cost	$	12,707		$	10,689		$	15,636		$	4,780		$	3,828		$	5,764

Other Amounts Recognized in Other Comprehensive Income (Loss)

Other amounts recognized in Other Comprehensive Income (Loss):

	Pension Benefit Plans									Other Postretirement Employee Benefit Plans
(In thousands)	2013			2012			2011			2013			2012			2011
Net (gain) loss	$	(53,285	)	$	12,989		$	43,207		$	(30,323	)	$	3,150		$	(5,435	)
Curtailments	(769		)	(477		)	(2,776		)	—			—			—
Prior service cost (credit)	—			—			—			5,106			(5,278		)	—
Amortization of prior service (cost) credit	(337		)	(634		)	(1,193		)	502			2,680			1,795
Amortization of actuarial loss	(14,840		)	(12,085		)	(8,382		)	—			—			—
Total recognized in other comprehensive (income) loss	$	(69,231	)	$	(207	)	$	30,856		$	(24,715	)	$	552		$	(3,640	)
Total recognized in net periodic cost and   other comprehensive (income) loss	$	(56,524	)	$	10,482		$	46,492		$	(19,935	)	$	4,380		$	2,124

Weighted Average Assumptions Used to Determine Benefit Obligation

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	4.15	%	4.90	%	5.70	%	4.05	%	4.95	%	5.60	%
Expected return on plan assets	7.50		8.00		8.00		—		—		—
Rate of salaried compensation increase	—		—		4.00		—		—		—

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

	Pension Benefit Plans						Other Postretirement Employee Benefit Plans
	2013		2012		2011		2013		2012		2011
Discount rate	5.20	%	4.15	%	4.90	%	5.05	%	4.05	%	4.95	%

One Percentage Point Change in Health Care Cost Trend Rates

A one percentage point change in the health care cost trend rates would have the following effects:

(In thousands)	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	521	$	(438	)
Effect on postretirement employee benefit obligation	9,304		(7,997		)

Investments at Fair Value for Company Sponsored Pension Benefit Plans within Fair Value Hierarchy

The following tables set forth by level, within the fair value hierarchy, the investments at fair value for our company-sponsored pension benefit plans:

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	4,314	$	—	$	—	$	4,314
Common and collective trusts:
International small cap	—		15,845		—		15,845
Global/International equity	—		21,198		—		21,198
International equity emerging markets	—		17,809		—		17,809
Common stocks:
Industrials	9,307		—		—		9,307
Energy	2,663		—		—		2,663
Consumer	8,002		—		—		8,002
Healthcare	6,013		—		—		6,013
Finance	11,566		—		—		11,566
Utilities	1,711		—		—		1,711
Information technology	8,785		—		—		8,785
Foreign	6,175		—		—		6,175
Mutual funds:
Foreign large blend	18,492		—		—		18,492
Long-term bond fund	137,031		—		—		137,031
Mid-cap growth fund	18,009		—		—		18,009
Subtotal	$	232,068	$	54,852	$	—	$	286,920
Payable held under securities lending agreement							(322		)
Total investments at fair value							$	286,598

	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	3,786	$	—	$	—	$	3,786
Common and collective trusts:
International small cap	—		12,725		—		12,725
Global/International equity	—		16,656		—		16,656
Domestic equity – small/mid cap	—		17,339		—		17,339
International equity emerging markets	—		17,672		—		17,672
Common stocks:
Industrials	9,475		—		—		9,475
Energy	1,966		—		—		1,966
Consumer	8,270		—		—		8,270
Healthcare	7,386		—		—		7,386
Finance	13,000		—		—		13,000
Utilities	2,305		—		—		2,305
Information technology	6,828		—		—		6,828
Foreign	6,078		—		—		6,078
Mutual funds:
Foreign large blend	18,907		—		—		18,907
Long-term bond fund	114,557		—		—		114,557
Corporate debt securities	—		1,073		—		1,073
Subtotal	$	192,558	$	65,465	$	—	$	258,023
Payable held under securities lending agreement							(3,467		)
Total investments at fair value							$	254,556

Long Term Asset Allocation Ranges

Assets are diversified among various asset classes, such as domestic equities, international equities, fixed income and cash. The long-term asset allocation ranges are as follows:

Domestic equities	19%-31%
International equities, including emerging markets	16%-34%
Corporate bonds	40%-60%
Liquid reserves	0%-1%

Schedule of Expected Benefit Payments

Estimated future benefit payments, which reflect expected future service and expected Medicare prescription subsidy receipts, are as follows for the years indicated:

(In thousands)	Pension Benefit Plans		Other Postretirement Employee Benefit Plans		Expected Medicare Subsidy
2014	$	17,837	$	8,744	$	310
2015	18,361		8,947		313
2016	18,942		9,268		315
2017	19,486		9,190		313
2018	19,932		9,229		309
2019-2023	103,091		39,664		1,436

Multiemployer Defined Benefit Plans

Pension Fund	EIN	Plan Number	PPA Zone Status			FIP/RP Status Pending/ Implemented	Contributions (in thousands)						Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
			2013	2012			2013		2012		2011
IAM	51-6031295	002	Green	Green		N/A	$	343	$	288	$	269	No	5/31/2016
USW	11-6166763	001	Red	Red		Implemented	5,718		5,673		5,648		No	8/31/2014
					Total Contributions:		$	6,061	$	5,961	$	5,917

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Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2013

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities

NOTE 8 Accounts Payable and Accrued Liabilities

(In thousands)	2013		2012
Trade accounts payable	$	108,192	$	75,949
Accrued wages, salaries and employee benefits	38,563		42,491
Accrued interest	9,691		5,242
Accrued utilities	8,309		8,205
Accrued discounts and allowances	6,410		4,785
Accrued taxes other than income taxes payable	6,322		6,993
Other	13,161		21,931
	$	190,648	$	165,596