10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2022

or

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

For the transition period from to

4350 Congress Street, Suite 600

Charlotte, North Carolina 28209

(Address of principal executive offices)

(704) 885-2555

(Registrant's telephone number, including area code)

Commission file number	Exact name of registrant as specified in its charter	IRS Employer Identification No.	State or other jurisdiction of incorporation or organization
1-03560	Glatfelter Corporation	23-0628360	Pennsylvania

(N/A)

Former name or former address, if changed since last report

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	GLT	New York Stock Exchange

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

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

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

Large Accelerated Filer	☒			Accelerated filer	☐
Non-accelerated filer	☐			Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.					☐

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

Common Stock outstanding on July 29, 2022 totaled 44,774,912 shares.

GLATFELTER CORPORATION AND SUBSIDIARIES

REPORT ON FORM 10-Q

For the Quarterly Period Ended

June 30, 2022

Table of Contents

PART I - FINANCIAL INFORMATION			Page
Item 1	Financial Statements		2
	Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2022 and 2021 (unaudited)		2
	Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended June 30, 2022 and 2021 (unaudited)		3
	Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)		5
	Statements of Shareholders’ Equity for the three months and six months ended June 30, 2022 and 2021 (unaudited)		6
	Notes to Condensed Consolidated Financial Statements (unaudited)		7
	1	Organization	7
	2	Accounting Policies	7
	3	Acquisition	7
	4	Revenue	10
	5	Gains on Disposition of Plant, Equipment and Timberlands	11
	6	Goodwill and Other Asset Impairment	11
	7	Discontinued Operations	12
	8	Earnings Per Share	12
	9	Accumulated Other Comprehensive Income	13
	10	Stock-based Compensation	15
	11	Retirement Plans and Other Post-Retirement Benefits	16
	12	Income Taxes	16
	13	Inventories	17
	14	Goodwill and Other Intangible Assets	17
	15	Leases	19
	16	Long-term Debt	20
	17	Fair Value of Financial Instruments	21
	18	Financial Derivatives and Hedging Activities	21
	19	Commitments, Contingencies and Legal Proceedings	24
	20	Segment Information	26
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3	Quantitative and Qualitative Disclosures About Market Risks		42
Item 4	Controls and Procedures		43
PART II – OTHER INFORMATION			44
Item 1A	Risk Factors		44
Item 6	Exhibits		45
	SIGNATURES		46

PART I

Item 1 – Financial Statements

GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2022		2021		2022		2021
Net sales	$	363,963	$	244,911	$	745,643	$	470,585
Costs of products sold	326,566		209,357		676,581		395,735
Gross profit	37,397		35,554		69,062		74,850
Selling, general and administrative expenses	28,400		28,984		61,566		51,811
Goodwill and other asset impairment charges	—		—		117,349		—
Loss (gains) on dispositions of plant, equipment and timberlands, net	73		(1,553)		(2,888)		(2,403)
Operating income (loss)	8,924		8,123		(106,965)		25,442
Non-operating income (expense)
Interest expense	(7,672)		(1,772)		(15,534)		(3,303)
Interest income	38		11		55		31
Other, net	(455)		(849)		(1,795)		(1,073)
Total non-operating expense	(8,089)		(2,610)		(17,274)		(4,345)
Income (loss) from continuing operations before income taxes	835		5,513		(124,239)		21,097
Income tax provision (benefit)	3,295		4,021		(13,489)		11,211
Income (loss) from continuing operations	(2,460)		1,492		(110,750)		9,886
Discontinued operations:
Income (loss) before income taxes	408		(82)		371		(82)
Income tax provision	—		—		—		—
Loss from discontinued operations	408		(82)		371		(82)
Net income (loss)	$	(2,052)	$	1,410	$	(110,379)	$	9,804
Basic earnings per share
Income (loss) from continuing operations	$	(0.05)	$	0.03	$	(2.47)	$	0.22
Income from discontinued operations	0.01		—		0.01		—
Basic earnings (loss) per share	$	(0.04)	$	0.03	$	(2.46)	$	0.22
Diluted earnings per share
Income (loss) from continuing operations	$	(0.05)	$	0.03	$	(2.47)	$	0.22
Income from discontinued operations	0.01		—		0.01		—
Diluted earnings (loss) per share	$	(0.04)	$	0.03	$	(2.46)	$	0.22
Weighted average shares outstanding
Basic	44,841		44,563		44,775		44,507
Diluted	44,841		44,872		44,775		44,865

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

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GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Net income (loss)	$	(2,052)	$	1,410	$	(110,379)	$	9,804
Foreign currency translation adjustments	(28,675)		3,846		(39,590)		(9,347)
Net change in:
Deferred gains (losses) on derivatives, net of taxes  of $(2,029), $114, $(2,629) and $(1,187), respectively	8,534		(316)		8,177		2,945
Unrecognized retirement obligations, net of taxes  of $(49), $(14), $(101) and $(87), respectively	152		150		304		242
Other comprehensive income (loss)	(19,989)		3,680		(31,109)		(6,160)
Comprehensive income (loss)	$	(22,041)	$	5,090	$	(141,488)	$	3,644

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

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GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

In thousands	June 30, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	71,476	$	138,436
Accounts receivable, net	209,455		170,212
Inventories	307,612		279,520
Prepaid expenses and other current assets	46,083		48,398
Total current assets	634,626		636,566
Plant, equipment and timberlands, net	690,228		758,812
Goodwill	168,288		236,165
Intangible assets, net	110,096		156,304
Other assets	94,052		92,760
Total assets	$	1,697,290	$	1,880,607
Liabilities and Shareholders' Equity
Current portion of long-term debt	$	22,117	$	26,437
Short-term debt	10,610		22,843
Accounts payable	208,181		214,015
Dividends payable	6,269		6,237
Environmental liabilities	2,200		2,200
Other current liabilities	78,143		99,438
Total current liabilities	327,520		371,170
Long-term debt	779,026		738,075
Deferred income taxes	63,025		87,285
Other long-term liabilities	137,797		141,315
Total liabilities	1,307,368		1,337,845
Commitments and contingencies	—		—
Shareholders’ equity
Common stock	544		544
Capital in excess of par value	62,555		64,779
Retained earnings	582,687		705,600
Accumulated other comprehensive loss	(111,413)		(80,304)
	534,373		690,619
Less cost of common stock in treasury	(144,451)		(147,857)
Total shareholders’ equity	389,922		542,762
Total liabilities and shareholders’ equity	$	1,697,290	$	1,880,607

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

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GLATFELTER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Six months ended June 30,
In thousands	2022		2021
Operating activities
Net income (loss)	$	(110,379)	$	9,804
Loss (income) from discontinued operations, net of taxes	(371)		82
Adjustments to reconcile to net cash provided (used) by continuing operations:
Depreciation, depletion and amortization	34,936		28,466
Amortization of debt issue costs and original issue discount	963		309
Goodwill and other asset impairment charges	117,349		—
Inventory and accounts receivable charges	3,948		—
Deferred income tax expense (benefit)	(22,186)		616
Gains on dispositions of plant, equipment and timberlands, net	(2,888)		(2,403)
Share-based compensation	2,419		2,537
Change in operating assets and liabilities:
Accounts receivable	(52,936)		(11,533)
Inventories	(45,148)		(21,870)
Prepaid and other current assets	3,472		3,377
Accounts payable	9,516		(4,542)
Accruals and other current liabilities	(16,910)		(5,841)
Other	(1,320)		2,363
Net cash provided (used) by operating activities from continuing operations	(79,535)		1,365
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(22,697)		(11,211)
Proceeds from disposals of plant, equipment and timberlands, net	3,173		2,510
Acquisition, net of cash acquired	1,413		(172,331)
Other	(25)		(104)
Net cash used by investing activities from continuing operations	(18,136)		(181,136)
Financing activities
Proceeds from term loans	—		11,725
Repayment of term loans	(23,793)		(12,159)
Net borrowings under revolving credit facility	72,176		178,077
Payments of borrowing costs	(1,102)		(35)
Payments of dividends	(12,498)		(11,991)
Payments related to share-based compensation awards and other	(1,237)		(479)
Net cash provided by financing activities from continuing operations	33,546		165,138
Effect of exchange rate changes on cash	(3,587)		(1,432)
Net decrease in cash, cash equivalents and restricted cash	(67,712)		(16,065)
Decrease in cash, cash equivalents and restricted cash from discontinued operations	(231)		(238)
Cash, cash equivalents and restricted cash at the beginning of period	148,814		111,665
Cash, cash equivalents and restricted cash at the end of period	80,871		95,362
Less: restricted cash in Prepaid expenses and other current assets	(2,000)		(2,000)
Less: restricted cash in Other assets	(7,395)		(9,197)
Cash and cash equivalents at the end of period	$	71,476	$	84,165
Supplemental cash flow information
Cash paid for:
Interest	$	15,879	$	2,920
Income taxes, net	14,699		7,098

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

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GLATFELTER CORPORATION AND SUBSIDIARIES

STATEMENTS OF SHAREHOLDERS’ EQUITY

(unaudited)

In thousands	Common stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
Balance at April 1, 2022	$	544	$	61,873	$	591,012	$	(91,424)	$	(145,272)	$	416,733
Net loss					(2,052)						(2,052)
Other comprehensive loss							(19,989)				(19,989)
Comprehensive loss											(22,041)
Cash dividends declared ($0.14 per share)					(6,273)						(6,273)
Share-based compensation expense			1,510								1,510
Delivery of treasury shares:
RSUs and PSAs			(828)						821		(7)
Balance at June 30, 2022	$	544	$	62,555	$	582,687	$	(111,413)	$	(144,451)	$	389,922
Balance at April 1, 2021	$	544	$	62,576	$	725,756	$	(68,493)	$	(149,322)	$	571,061
Net income					1,410						1,410
Other comprehensive income							3,680				3,680
Comprehensive income											5,090
Cash dividends declared ($0.14 per share)					(6,232)						(6,232)
Share-based compensation expense			1,329								1,329
Delivery of treasury shares:
RSUs and PSAs			(1,109)						1,106		(3)
Balance at June 30, 2021	$	544	$	62,796	$	720,934	$	(64,813)	$	(148,216)	$	571,245
Balance at January 1, 2022	$	544	$	64,779	$	705,600	$	(80,304)	$	(147,857)	$	542,762
Net loss					(110,379)						(110,379)
Other comprehensive loss							(31,109)				(31,109)
Comprehensive loss											(141,488)
Cash dividends declared ($0.14 per share)					(12,534)						(12,534)
Share-based compensation expense			2,419								2,419
Delivery of treasury shares:
RSUs and PSAs			(4,643)						3,406		(1,237)
Balance at June 30, 2022	$	544	$	62,555	$	582,687	$	(111,413)	$	(144,451)	$	389,922
Balance at January 1, 2021	$	544	$	63,261	$	723,365	$	(58,653)	$	(150,585)	$	577,932
Net income					9,804						9,804
Other comprehensive loss							(6,160)				(6,160)
Comprehensive income											3,644
Cash dividends declared ($0.275 per share)					(12,235)						(12,235)
Share-based compensation expense			2,537								2,537
Delivery of treasury shares:
RSUs and PSAs			(3,002)						2,369		(633)
Balance at June 30, 2021	$	544	$	62,796	$	720,934	$	(64,813)	$	(148,216)	$	571,245

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

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GLATFELTER CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.ORGANIZATION

Glatfelter Corporation and subsidiaries ("Glatfelter") is a leading global supplier of engineered materials with a strong focus on innovation and sustainability. Glatfelter's high quality, technology-driven, innovative, and customizable nonwovens solutions can be found in products that are Enhancing Everyday Life®. These include personal care and hygiene products, food and beverage filtration, critical cleaning products, medical and personal protection, packaging products, as well as home improvement and industrial applications. Headquartered in Charlotte, NC, the Company’s 2021 net sales were $1.1 billion with approximately 3,250 employees worldwide. Glatfelter’s operations utilize a variety of manufacturing technologies including airlaid, wetlaid and spunlace with sixteen manufacturing sites located in the United States, Canada, Germany, the United Kingdom, France, Spain, and the Philippines. The Company has sales offices in all major geographies serving customers under the Glatfelter and Sontara brands. Additional information about Glatfelter may be found at www.glatfelter.com. The terms “we,” “us,” “our,” “the Company,” or “Glatfelter,” refer to Glatfelter Corporation and subsidiaries unless the context indicates otherwise.

2. ACCOUNTING POLICIES

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed you have read the audited consolidated financial statements included in our 2021 Annual Report on Form 10-K.

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

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

Inventories Our inventories are stated at the lower of cost or net realizable value. Raw materials, in-process and finished goods inventories are valued principally using the average-cost method.

3.ACQUISITION

On May 13, 2021, we completed the acquisition of all the outstanding equity interests in Georgia-Pacific Mt. Holly LLC, Georgia-Pacific's U.S. nonwovens business ("Mount Holly") for $170.9 million. Mount Holly’s results are reported prospectively from the acquisition date as part of our Airlaid Materials segment.

On October 29, 2021, we completed the acquisition of PMM Holding (Luxembourg) AG, the owner of all of the equity interest in Jacob Holm, a global leading manufacturer of premium quality spunlace nonwoven fabrics for critical

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cleaning, high-performance materials, personal care, hygiene and medical applications, for approximately $304.0 million for all outstanding shares and the extinguishment of Jacob Holm’s debt.

For the quarter ended June 30, 2022, we adjusted the preliminary purchase price allocation related to the Jacob Holm acquisition by reducing preacquistion compensation incentive accruals by approximately $0.5 million, and reducing goodwill by the same amount, based on incentive payouts made during the quarter.

The following table sets forth information related to the consideration exchanged for each acquisition.

In thousands	Mount Holly		Jacob Holm		Total
Total consideration	$	170,919	$	303,952	$	474,871
Less: Debt repaid	—		(148,000)		(148,000)
Cash consideration	$	170,919	$	155,952	$	326,871

The preliminary purchase price allocations set forth in the following table are based on all information available to us at the present time and is subject to change. With respect to the Mount Holly acquisition, the purchase price allocation is complete. However, the Jacob Holm purchase price allocation is preliminary as we are in the process of finalizing our analysis of certain matters, primarily related to the assessment of potential tax liabilities associated with the acquired entities. In the event new information becomes available, the measurement of the amount of goodwill reflected may be affected.

In thousands	Mount Holly		Jacob Holm		Total
Assets
Cash and cash equivalents	$	—	$	11,426	$	11,426
Accounts receivable	11,599		30,271		41,870
Inventory	7,031		45,340		52,371
Prepaid and other current assets	11		6,727		6,738
Plant, equipment and timberlands	100,498		158,612		259,110
Intangible assets	20,000		70,240		90,240
Goodwill	35,793		48,355		84,148
Other assets	8,041		26,929		34,970
Total assets	182,973		397,900		580,873
Liabilities
Short-term debt			14,081		14,081
Accounts payable	2,321		25,264		27,585
Other current liabilities	1,868		21,263		23,131
Other long-term liabilities	7,865		33,340		41,205
Total liabilities	12,054		93,948		106,002
Total preliminary purchase price	$	170,919	$	303,952	$	474,871

The preliminary purchase price allocations set forth in the table above are based on all information available to us at the present time and is subject to change. In the event new information becomes available, the measurement of the amount of goodwill reflected may be affected. For purposes of allocating the total purchase price, assets acquired and liabilities assumed are recorded at their estimated fair market values. The allocations set forth above are based on management’s estimate of the fair value using valuation techniques such as discounted cash flow models, appraisals and similar methodologies.

The following table sets forth information related to amounts of net sales and operating income (loss) of the acquired businesses included in our results of operations in the three and six months ended 2022:

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	Three months ended June 30,		Six months ended June 30,
In thousands	2022		2022
Mount Holly
Net sales	$	26,300	$	53,604
Operating income	1,911		4,635
Jacob Holm
Net sales	96,917		193,304
Operating loss	(1,808)		(3,380)

The following table summarizes annual unaudited pro forma financial information as if the acquisition occurred as of January 1, 2021:

(unaudited)	Three months ended June 30,		Six months ended June 30,
In thousands, except per share	2021		2021
Pro forma
Net sales	$	347,895	$	690,448
Income (loss) from continuing operations	(10,546)		12,892

The pro forma financial information set forth above for the three and six months ended June 30, 2021 includes $3.7 million and $4.3 million, respectively, of one-time costs directly related to the Mount Holly transaction. Such costs are presented under the caption “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of income.

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4.REVENUE

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Revenue by product category
Composite Fibers
Food & beverage	$	74,465	$	73,535	$	149,688	$	150,488
Wallcovering	9,902		24,182		25,733		46,811
Technical specialties	18,603		24,708		41,739		48,203
Composite laminates	11,570		10,549		22,867		20,358
Metallized	8,798		8,624		19,140		16,987
	123,338		141,598		259,167		282,847
Airlaid Materials
Feminine hygiene	56,943		47,184		116,255		94,825
Specialty wipes	37,908		21,371		75,003		37,287
Tabletop	26,771		17,188		57,518		24,051
Food pads	3,475		2,440		6,951		4,797
Home care	5,513		6,339		11,798		10,262
Adult incontinence	6,260		5,083		12,989		9,761
Other	6,838		3,708		12,658		6,755
	143,708		103,313		293,172		187,738
Spunlace
Consumer wipes	39,549		—		85,706		—
Critical cleaning	27,783		—		52,061		—
Health care	15,434		—		29,039		—
Hygiene	6,233		—		12,146		—
High performance	4,018		—		8,130		—
Beauty care	3,900		—		6,222		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Revenue by geography
Composite Fibers
Europe, Middle East and Africa	$	59,868	$	85,796	$	133,472	$	172,741
Americas	42,077		35,369		80,053		67,210
Asia Pacific	21,393		20,433		45,642		42,896
	123,338		141,598		259,167		282,847
Airlaid Materials
Europe, Middle East and Africa	63,355		49,552		126,491		94,624
Americas	77,608		52,031		158,521		89,516
Asia Pacific	2,745		1,730		8,160		3,598
	143,708		103,313		293,172		187,738
Spunlace
Europe, Middle East and Africa	30,245		—		60,070		—
Americas	54,985		—		110,469		—
Asia Pacific	11,687		—		22,765		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585

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5.GAINS ON DISPOSITION OF PLANT, EQUIPMENT AND TIMBERLANDS

The following table sets forth sales of timberlands and other assets completed during the first six months of 2022 and 2021:

Dollars in thousands	Acres	Proceeds		Gain (loss)
2022
Timberlands	790	$	3,130	$	2,962
Other	n/a	43		(74)
Total		$	3,173	$	2,888
2021
Timberlands	936	$	2,510	$	2,403
Other	n/a	—		—
Total		$	2,510	$	2,403

6.GOODWILL AND OTHER ASSET IMPAIRMENT

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

In thousands	Six months ended June 30,
Machinery and equipment	$	27,619
Technological know-how	18,443
Customer relationships	11,695
Tradename	3,530
Goodwill	56,062
Total	$	117,349

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

In addition, as a result of economic sanctions and disruptions to the financial markets, certain customers are not able to satisfy outstanding accounts receivables. As such, during the first six months of 2022, we recognized bad debt expense of approximately $2.9 million directly related to Russian and Ukrainian customers. Furthermore, during the first six months of 2022, we increased inventory reserves by approximately $1.0 million, primarily related to wallcover products.

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7.DISCONTINUED OPERATIONS

For both the three and six months ended June 30, 2022, we recognized income of $0.4 million which primarily represents the successful appeal of a sales and use tax audit partially offset by legal costs. For 2021, the $0.1 million loss is primarily related to legal costs.

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

	Six months ended June 30,
In thousands	2022		2021
Net cash used by operating activities	$	(231)	$	(238)
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(231)	$	(238)

8.EARNINGS PER SHARE

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

	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2022		2021		2022		2021
Income (loss) from continuing operations	$	(2,460)	$	1,492	$	(110,750)	$	9,886
Weighted average common shares outstanding used in basic EPS	44,841		44,563		44,775		44,507
Common shares issuable upon exercise of dilutive stock options  and PSAs / RSUs	—		309		—		358
Weighted average common shares outstanding and common share  equivalents used in diluted EPS	44,841		44,872		44,775		44,865
Earnings (loss) per share from continuing operations
Basic	$	(0.05)	$	0.03	$	(2.47)	$	0.22
Diluted	(0.05)		0.03		(2.47)		0.22

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

	Three months ended June 30,		Six months ended June 30,
In thousands	2022	2021	2022	2021
Potential common shares	934	1,082	934	1,082

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9.ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and six months ended June 30, 2022 and 2021.

In thousands	Currency translation adjustments		Unrealized gain (loss) on derivatives		Change in pensions		Change in other postretirement defined benefit plans		Total
Balance at April 1, 2022	$	(80,672)	$	1,631	$	(11,356)	$	(1,027)	$	(91,424)
Other comprehensive income (loss) before reclassifications (net of tax)	(28,675)		9,760		—		—		(18,915)
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		(1,226)		126		26		(1,074)
Net current period other comprehensive income (loss)	(28,675)		8,534		126		26		(19,989)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at April 1, 2021	$	(55,718)	$	765	$	(12,706)	$	(834)	$	(68,493)
Other comprehensive income (loss) before reclassifications (net of tax)	3,846		(341)		—		—		3,505
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		25		197		(47)		175
Net current period other comprehensive income (loss)	3,846		(316)		197		(47)		3,680
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)
Balance at January 1, 2022	$	(69,757)	$	1,988	$	(11,482)	$	(1,053)	$	(80,304)
Other comprehensive income (loss) before reclassifications (net of tax)	(39,590)		10,143		—		—		(29,447)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,966)		252		52		(1,662)
Net current period other comprehensive income (loss)	(39,590)		8,177		252		52		(31,109)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at January 1, 2021	$	(42,525)	$	(2,496)	$	(12,844)	$	(788)	$	(58,653)
Other comprehensive income (loss) before reclassifications (net of tax)	(9,347)		2,933		—		—		(6,414)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		12		335		(93)		254
Net current period other comprehensive income (loss)	(9,347)		2,945		335		(93)		(6,160)
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Description									Line Item in Statements of Income
Cash flow hedges (Note 18)
Loss (gains) on cash flow hedges	$	(1,697)	$	33	$	(2,769)	$	57	Costs of products sold
Tax expense (benefit)	480		(22)		792		(73)		Income tax provision
Net of tax	(1,217)		11		(1,977)		(16)
Loss (gains) on interest rate swaps	(9)		22		11		43		Interest expense
Tax benefit	—		(8)		—		(15)		Income tax provision
Net of tax	(9)		14		11		28
Total cash flow hedges	(1,226)		25		(1,966)		12
Retirement plan obligations (Note 11)
Amortization of deferred benefit pension plans
Prior service costs	11		12		22		24		Other, net
Actuarial losses	164		199		331		398		Other, net
	175		211		353		422
Tax benefit	(49)		(14)		(101)		(87)		Income tax provision
Net of tax	126		197		252		335
Amortization of deferred benefit other plans
Prior service costs (credits)	26		(59)		52		(117)		Other, net
Actuarial losses	—		12		—		24		Other, net
	26		(47)		52		(93)
Tax expense	—		—		—		—		Income tax provision
Net of tax	26		(47)		52		(93)
Total reclassifications, net of tax	$	(1,074)	$	175	$	(1,662)	$	254

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10.STOCK-BASED COMPENSATION

On May 5, 2022, upon Board and shareholder approval, the Glatfelter Corporation 2022 Long-Term Incentive Plan became effective and is a successor plan to the P. H. Glatfelter Amended and Restated Long-Term Incentive Plan (collectively, the “LTIP”). The LTIP continues to provide for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units. Furthermore, the LTIP increases the number shares previously available for issuance by 1,400,000 shares. As of June 30, 2022, there were 2,670,523 shares of common stock available for future issuance under the LTIP.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units (“RSUs”), performance share awards (“PSAs”) and stock-only stock appreciation rights.

In 2022, we issued awards to employees of RSUs and PSAs under our LTIP. In 2022, 40% of fair value of the awards granted were RSUs, which vest based on the passage of time, generally over a graded three-year period or, in certain instances, the RSUs were cliff vesting after one or three years. In addition, some awards vest over one year or less depending upon the retirement eligibility of the grantees in the LTIP. The remaining 60% of the fair value of the awards granted in 2022 were PSAs. The PSAs awarded in 2022 vest based on either the achievement of cumulative financial performance targets covering a two-year period or based on the three-year total shareholder return relative to a broad market index. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For RSUs, the grant date fair value of the awards, or the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. For PSAs, the grant date fair value is estimated using a lattice model. The significant inputs include the stock price, volatility, dividend yield, and risk-free rate of return. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury.

The following table summarizes RSU and PSA activity during periods indicated:

Units	2022	2021
Balance at January 1,	1,111,382	1,071,652
Granted	718,668	352,763
Forfeited	(215,656)	(98,012)
Shares delivered	(305,739)	(196,637)
Balance at June 30,	1,308,655	1,129,766

The amount granted in 2022 and 2021 includes 341,429 and 162,480, respectively, of PSAs exclusive of reinvested dividends.

The following table sets forth aggregate RSU and PSA compensation expense included in continuing operations for the periods indicated:

	June 30,
In thousands	2022		2021
Three months ended	$	1,509	$	1,329
Six months ended	$	2,418	$	2,537

Stock-Only Stock Appreciation Rights (“SOSARs”) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. All SOSARs are vested and have a term of ten years. No SOSARs were awarded since 2016.

The following table sets forth information related to outstanding SOSARs:

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	2022			2021
	Shares	Wtd Avg Exercise Price		Shares	Wtd Avg Exercise Price
Outstanding at January 1,	1,079,113	$	20.42	1,082,413	$	20.40
Granted	—	—		—	—
Exercised	—	—		—	—
Canceled / forfeited	(145,440)	15.61		—	—
Outstanding at June 30,	933,673	$	21.17	1,082,413	$	20.40

11.RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

The following tables provide information with respect to the net periodic costs of our pension and post-retirement medical benefit plans included in continuing operations.

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Pension Benefits
Service cost	$	—	$	—	$	—	$	—
Interest cost	179		273		414		523
Amortization of prior service cost	11		12		22		24
Amortization of actuarial loss	164		199		331		398
Total net periodic benefit expense	$	354	$	484	$	767	$	945
Other Benefits
Service cost	$	—	$	7	$	—	$	14
Interest cost	32		32		65		64
Amortization of prior service cost (credit)	26		(59)		52		(117)
Amortization of actuarial loss	—		12		—		24
Total net periodic benefit expense (income)	$	58	$	(8)	$	117	$	(15)

12.INCOME TAXES

Income taxes are recognized for the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our condensed consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

For the six months ended June 30, 2022, we had pretax loss from continuing operations of $124.2 million and income tax benefit of $13.5 million. The income tax benefit includes $19.2 million of deferred tax benefit associated with the asset impairment charge and related bad debt and inventory reserves (refer to Note 6). Absent these charges, the Company had pre-tax loss of $2.9 million and income tax expense of $5.7 million, which was unfavorably impacted by the jurisdictional mix of pretax results among the Company and its subsidiaries, primarily by the pretax losses in the U.S. which generated no tax benefit.

For the six months ended June 30, 2022, we recorded an increase in our federal valuation allowance of $4.5 million against our net deferred tax assets. In assessing the need for a valuation allowance, management considers all available positive and negative evidence in its analysis. Based on this analysis, we recorded a valuation allowance for the portion of deferred tax assets where the weight of the evidence indicated it is more likely than not that the deferred assets will not be realized.

As of June 30, 2022 and December 31, 2021, we had $56.8 million and $55.7 million, respectively, of gross unrecognized tax benefits. As of June 30, 2022, if such benefits were to be recognized, approximately $53.0 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a

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quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. We recognize interest and penalties related to uncertain tax positions as income tax expense.

The following table summarizes information included in continuing operations related to interest on uncertain tax positions:

	Six months ended June 30,
In millions	2022		2021
Interest expense	$	0.8	$	0.4

	June 30, 2022		December 31, 2021
Accrued interest payable	$	4.7	$	3.9
Accrued penalties	3.0		3.0

13.INVENTORIES

Inventories, net of reserves, were as follows:

In thousands	June 30, 2022		December 31, 2021
Raw materials	$	100,129	$	87,448
In-process and finished	153,224		139,058
Supplies	54,259		53,014
Total	$	307,612	$	279,520

14.GOODWILL AND OTHER INTANGIBLE ASSETS

The following table sets forth changes in the amounts of goodwill and other intangible assets recorded by each of our segments during the periods indicated:

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In thousands	December 31, 2021		Impairment		Purchase price allocation adjustment		Translation		June 30, 2022
Goodwill
Composite Fibers	$	78,438	$	(56,062)	$	—	$	(1,968)	$	20,408
Airlaid Materials	109,486		—		—		(6,105)		103,381
Spunlace	48,241		—		(500)		(3,242)		44,499
Total	$	236,165	$	(56,062)	$	(500)	$	(11,315)	$	168,288
Other Intangible Assets	December 31, 2021		Impairment		Amortization		Translation		June 30, 2022
Composite Fibers
Tradename - non-amortizing	$	3,601	$	(3,530)	$	—	$	(71)	$	—
Technology and related	38,614		(37,823)		—		(791)		—
Accumulated amortization	(19,224)		19,380		(424)		268		—
Net	19,390		(18,443)		(424)		(523)		—
Customer relationships and related	34,739		(34,046)		—		(693)		—
Accumulated amortization	(22,104)		22,351		(587)		340		—
Net	12,635		(11,695)		(587)		(353)		—
Airlaid Materials
Tradename	4,485		—		—		(1,133)		3,352
Accumulated amortization	(603)		—		(88)		63		(628)
Net	3,882		—		(88)		(1,070)		2,724
Technology and related	17,825		—		—		(756)		17,069
Accumulated amortization	(4,552)		—		(587)		387		(4,752)
Net	13,273		—		(587)		(369)		12,317
Customer relationships and related	44,585				—		(2,038)		42,547
Accumulated amortization	(10,512)		—		(1,864)		895		(11,481)
Net	34,073		—		(1,864)		(1,143)		31,066
Spunlace
Products and Tradenames	27,623				—		(1,638)		25,985
Accumulated amortization	(253)		—		(801)		343		(711)
Net	27,370		—		(801)		(1,295)		25,274
Technology and related	14,547				—		(862)		13,685
Accumulated amortization	(202)		—		(676)		335		(543)
Net	14,345		—		(676)		(527)		13,142
Customer relationships and related	28,003				—		(1,660)		26,343
Accumulated amortization	(268)		—		(846)		344		(770)
Net	27,735		—		(846)		(1,316)		25,573
Total intangibles	214,022		(75,399)		—		(9,642)		128,981
Total accumulated amortization	(57,718)		41,731		(5,873)		2,975		(18,885)
Net intangibles	$	156,304	$	(33,668)	$	(5,873)	$	(6,667)	$	110,096

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15.LEASES

We enter into a variety of arrangements in which we are the lessee for the use of automobiles, forklifts and other production equipment, production facilities, warehouses, office space and land. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the condensed consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We do not have any finance leases.

Operating lease right of use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. For purposes of recording the lease arrangement, the term of lease may include options to extend or terminate when we are reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The following table sets forth information related to our leases as of the periods indicated.

Dollars in thousands	June 30, 2022			December 31, 2021
Right of use asset	$	26,275		$	27,186
Weighted average discount rate	2.97		%	3.31		%
Weighted average remaining maturity (years)	21.2			26.0

The following table sets forth operating lease expense for the periods indicated:

	Six months ended June 30,
In thousands	2022		2021
Three months ended	$	1,499	$	1,452
Six months ended	$	2,920	$	2,799

The following table sets forth required remaining future minimum lease payments during the years indicated:

In thousands
2022	$	2,988
2023	3,606
2024	2,742
2025	2,350
2026	2,270
Thereafter	22,416

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16.LONG-TERM DEBT

Long-term debt is summarized as follows:

In thousands	June 30, 2022		December 31, 2021
Revolving credit facility, due Sep 2026	$	81,161	$	10,000
4.750% Senior Notes, due Oct 2029	500,000		500,000
Term loan, due Feb 2024	194,237		218,026
2.40% Term Loan, due Jun 2022	—		809
2.05% Term Loan, due Mar 2023	4,158		7,556
1.30% Term Loan, due Jun 2023	1,484		2,427
1.55% Term Loan, due Sep 2025	4,137		5,204
1.10% Term Loan, due Mar 2024	6,610		9,267
0.57% Term Loan, due Jul 2023	20,774		22,652
Total long-term debt	812,561		775,941
Less current portion	(22,117)		(26,437)
Unamortized deferred issuance costs	(11,418)		(11,429)
Long-term debt, net of current portion	$	779,026	$	738,075

On September 2, 2021, we entered into a restatement agreement as part of a Fourth Amended and Restated $400 million Revolving Credit Facility and a €220.0 million Term Loan (collectively, the “Credit Agreement”) which matures September 6, 2026 and February 8, 2024, respectively.

On May 9, 2022, we entered into an amendment to the Credit Agreement. The amendment: i) increases the permitted maximum ratio of consolidated total net debt to consolidated adjusted EBITDA (“leverage ratio”); ii) increases the maximum interest rate borrowing margin to be applied to the applicable index by 25 basis points; and iii) pledges as collateral substantially all domestic assets to secure obligations owed under the Credit Agreement. As amended, we are obligated to maintain a maximum ratio of consolidated total net debt to consolidated adjusted EBITDA of 6.75 to 1.0 until the quarter ended December 31, 2023, after which the maximum leverage ratio steps down to 4.0 to 1.0.

The Credit Agreement also contains covenants requiring a minimum interest coverage ratio and provisions limiting our ability to, among other things, (i) incur debt and guaranty obligations, (ii) incur liens, (iii) make loans, advances, investments and acquisitions, (iv) merge or liquidate, (v) sell or transfer assets, (vi) incur additional indebtedness

As of June 30, 2022, the leverage ratio calculated in accordance with the definition in our Credit Agreement was 5.3x. A breach of these requirements would give rise to certain remedies under the Revolving Credit Agreement, among which are the termination of the agreement and the repayment of the outstanding borrowings plus accrued and unpaid interest under the Credit Agreement.

Glatfelter Corporation guarantees all debt obligations of its subsidiaries. All such obligations are recorded in these condensed consolidated financial statements.

Letters of credit issued to us by certain financial institutions totaled $6.7 million as of June 30, 2022 and December 31, 2021. The letters of credit, which reduce amounts available under our Revolving Credit Facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program and for performance of certain remediation activity related to the Fox River matter. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

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17.FAIR VALUE OF FINANCIAL INSTRUMENTS

The amounts reported on the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate their respective fair value. The following table sets forth carrying value and fair value of long-term debt:

	June 30, 2022				December 31, 2021
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	81,161	$	81,161	$	10,000	$	10,000
4.750% Senior Notes, due Oct. 2029	500,000		348,750		500,000		516,875
Term loan, due Feb. 2024	194,237		194,237		218,026		218,026
2.40% Term Loan	—		—		809		813
2.05% Term Loan	4,158		4,162		7,556		7,616
1.30% Term Loan	1,484		1,477		2,427		2,433
1.55% Term Loan	4,137		4,047		5,204		5,234
1.10% Term Loan	6,610		6,514		9,267		9,252
0.57% Term Loan	20,774		20,484		22,652		22,657
Total	$	812,561	$	660,832	$	775,941	$	792,906

The values set forth above are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 18.

18.FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions (“cash flow hedges”); ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables (“foreign currency hedges”); or iii) convert variable-interest-rate debt to fixed rates.

Derivatives Designated as Hedging Instruments - Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date. As of June 30, 2022, the maturity of currency forward contracts ranged from one month to 18 months.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases, certain production costs or capital expenditures with exposure to changes in foreign currency exchange rates. Changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk is deferred as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets. With respect to hedges of forecasted raw material purchases or production costs, the amount deferred is subsequently reclassified into costs of products sold in the period that, inventory produced using the hedged transaction, affects earnings. For hedged capital expenditures, deferred gains or losses are reclassified and included in the historical cost of the capital asset and subsequently affect earnings as depreciation is recognized.

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We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
Euro / British Pound	22,083	18,823
U.S. Dollar / British Pound	27,221	16,205
U.S. Dollar / Euro	3,402	658
Sell/Buy - buy notional
Euro / Philippine Peso	965,540	896,291
British Pound / Philippine Peso	1,303,213	1,121,183
Euro / U.S. Dollar	107,614	108,467
U.S. Dollar / Canadian Dollar	36,493	36,904

On June 15, 2022, we terminated a €180 million notional value floating-to-fixed interest rate swap agreement with certain financial institutions that was entered into in October 2019 and was to mature in December 2022. During the life of the swap, we paid a fixed interest rate of the applicable margin plus 0.0395% on €180 million of the underlying variable rate term loan. We received the greater of 0.00% or EURIBOR. At termination, we recognized a deferred gain of $0.4 million that will be amortized into interest expense through December 2022.

Derivatives Designated as Hedging Instruments – Net Investment Hedge The €220 million Term Loan discussed in Note 16 – “Long-Term Debt” is designated as a net investment hedge of our Euro functional currency foreign subsidiaries. During the first six months of 2022 and 2021, we recognized a pre-tax gain of $15.7 million and $7.8 million, respectively, on the remeasurement of the term loan from changes in currency exchange rates. Such amounts are recorded as a component of Other Comprehensive Income (Loss).

On March 3, 2022, we entered into cross-currency swaps with an aggregate notional value of $150.0 million. Pursuant to the terms of the swaps, we agreed to receive 4.750% interest denominated in U.S. dollars and we agreed to pay 3.06% interest denominated in euros. Interest is paid semi-annually on May 15 and November 15 and the swaps mature on May 15, 2025. We designated the cross-currency swaps as a hedge of our net investment in certain euro functional currency subsidiaries.

Derivatives Not Designated as Hedging Instruments - Foreign Currency Hedges We also entered into forward foreign exchange contracts to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities. None of these contracts are designated as hedges for financial accounting purposes and, accordingly, changes in value of the foreign exchange forward contracts and in the offsetting underlying on-balance-sheet transactions are reflected in the accompanying condensed consolidated statements of income under the caption “Other, net.”

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

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In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound	29,450	26,600
British Pound / Euro	2,800	3,400
U.S. Dollar / Swiss Franc	7,960	2,180
British Pound / Swiss Franc	2,290	1,025
Euro / Swiss Franc	6,520	2,750
Euro / U.S. Dollar	6,400	11,000
Sell/Buy - buy notional
Euro / U.S. Dollar	2,700	20,900
British Pound / Euro	15,300	5,300

These contracts have maturities of one month from the date originally entered into.

Fair Value Measurements The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	7,151	$	3,197	$	2,037	$	288
Interest rate swap	—		—		—		44
Not designated as hedging:
Forward foreign currency exchange contracts	$	822	701		$	1,124	$	116

The amounts set forth in the table above represent the net asset or liability giving effect to rights of offset with each counterparty. The effect of netting the amounts presented above did not have a material effect on our consolidated financial position.

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The fair values of the foreign exchange forward contracts are considered to be Level 2. Foreign currency forward contracts are valued using foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Prepaid expenses and other current assets” and the value of contracts in a loss position is recorded under the caption “Other current liabilities.”

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

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	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Designated as hedging:
Forward foreign currency exchange contracts:
Cost of products sold	$	(1,697)	$	(33)	$	(2,769)	$	(57)
Interest expense	(9)		22		11		43
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	1,289	$	433	$	1,729	$	703

The impact of activity not designated as hedging was substantially all offset by the remeasurement of the underlying on-balance-sheet item.

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income (loss), before taxes, is as follows:

In thousands	2022		2021
Balance at January 1,	$	2,889	$	(3,460)
Deferred gains on cash flow hedges	6,565		4,117
Reclassified to earnings	(2,758)		14
Balance at June 30,	$	6,696	$	671

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be recorded in results of operations within the next 12 to 18 months and the amount ultimately recognized will vary depending on actual market rates.

Credit risk related to derivative activity arises in the event the counterparty fails to meet its obligations to us. This exposure is generally limited to the amounts, if any, by which the counterparty’s obligations exceed our obligation to them. Our policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings.

19.COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River - Neenah, Wisconsin

Background We have previously reported that we face liabilities associated with environmental claims arising out of the presence of polychlorinated biphenyls (“PCBs”) in sediments in the lower Fox River, on which our former Neenah facility was located, and in the Bay of Green Bay, Wisconsin (collectively, the “Site”). Since the early 1990s, the United States, the State of Wisconsin and two Indian tribes (collectively, the “Governments”) have pursued a cleanup of a 39-mile stretch of river from Little Lake Butte des Morts into Green Bay and natural resource damages (“NRDs”). The United States originally notified several entities that they were potentially responsible parties (“PRPs”); however, after giving effect to settlements reached with the Governments, the remaining PRPs exposed to continuing obligations to implement the remainder of the cleanup consist of us, Georgia-Pacific Consumer Products, L.P. (“Georgia-Pacific”) and NCR Corporation. The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

Over the past several years, we and certain other PRPs completed all remedial actions pursuant to applicable consent decrees or a Unilateral Administrative Order. In January 2019, we reached an agreement with the United States, the State of Wisconsin, and Georgia-Pacific to resolve all remaining claims among those parties. Under the Glatfelter consent decree, we are primarily responsible for long-term monitoring and maintenance in OU2-OU4a and for reimbursement of government oversight costs paid after October 2018. Finally, we remain responsible for our obligation to continue long-term monitoring and maintenance under our OU1 consent decree.

Cost estimates Our remaining obligations under the OU1 consent decree consist of long-term monitoring and maintenance. Furthermore, we are primarily responsible for long-term monitoring and maintenance in OU2-OU4a over a period of at least 30 years. The monitoring activities consist of, among others, testing fish tissue, sampling water quality and sediment, and inspections of the engineered caps. In 2018, we entered into a fixed-price, 30-year agreement with a third party for the performance of all of our monitoring and maintenance obligations in OU1 through OU4a with limited

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exceptions, such as, for extraordinary amounts of cap maintenance or replacement. Our obligation under this agreement is included in our total reserve for the Site. We are obligated to make the regular payments under that fixed-price contract until the remaining amount due is less than the OU1 escrow account balance. We are permitted to pay for this contract using the remaining balance of the escrow account established by us and WTM I Company (“WTM I”) another PRP, under the OU1 consent decree during any period that the balance in the escrow account exceeds the amount due under our fixed-price contract. As of June 30, 2022, the balance in the escrow is less than amounts due under the fixed-price contract by approximately $1.3 million. Our obligation to pay this difference is secured by a letter of credit.

At June 30, 2022, the escrow account balance totaled $8.7 million which is included in the condensed consolidated balance sheet under the caption “Other assets.”

Under the consent decree, we are responsible for reimbursement of government oversight costs paid from October 2018 and later over approximately the next 30 years. We anticipate that oversight costs will decline as activities at the site have transitioned from remediation to long-term monitoring and maintenance.

Reserves for the Site Our reserve for past and future government oversight costs and long-term monitoring and maintenance totaled $14.8 million at June 30, 2022, of which $2.2 million is recorded in the accompanying June 30, 2022 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remaining $12.6 million is recorded under the caption “Other long-term liabilities.”

Range of Reasonably Possible Outcomes Based on our analysis of all available information, including but not limited to decisions of the courts, official documents such as records of decision, discussions with legal counsel, cost estimates for future monitoring and maintenance and other post-remediation costs to be performed at the Site, we do not believe that our costs associated with the Fox River matter could exceed the aggregate amounts accrued by a material amount.

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20.SEGMENT INFORMATION

The following tables set forth financial and other information by segment for the period indicated:

	Three months ended June 30,				Six months ended June 30,
Dollars in thousands	2022		2021		2022		2021
Net Sales
Composite Fibers	$	123,338	$	141,598	$	259,167	$	282,847
Airlaid Material	143,708		103,313		293,172		187,738
Spunlace	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Operating income (loss)
Composite Fibers	$	5,779	$	11,063	$	5,444	$	27,128
Airlaid Material	11,944		8,431		24,165		15,628
Spunlace	(1,808)		—		(3,380)		—
Other and unallocated	(6,991)		(11,371)		(133,194)		(17,314)
Total	$	8,924	$	8,123	$	(106,965)	$	25,442
Depreciation and amortization
Composite Fibers	$	4,796	$	7,000	$	11,315	$	13,981
Airlaid Material	7,542		6,767		15,171		12,615
Spunlace	2,945		—		5,859		—
Other and unallocated	1,169		966		2,591		1,870
Total	$	16,452	$	14,733	$	34,936	$	28,466
Capital expenditures
Composite Fibers	$	4,131	$	2,882	$	10,258	$	5,655
Airlaid Material	2,064		1,297		5,532		3,036
Spunlace	1,801		—		3,886		—
Other and unallocated	2,353		1,653		3,021		2,520
Total	10,349		5,832		$	22,697	$	11,211
Tons shipped (metric)
Composite Fibers	24,246		34,471		52,457		68,611
Airlaid Material	40,681		34,315		83,733		63,179
Spunlace	19,358		—		40,094		—
Total	84,285		68,786		176,284		131,790

Segments Results of individual operating segments are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the segments. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the segment are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the table set forth above.

Management evaluates results of operations of the operating segments before certain corporate level costs and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of the segments

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and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of operating segments results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the information in the unaudited condensed consolidated financial statements and notes thereto included herein and Glatfelter’s Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2021 Annual Report on Form 10-K ("2021 Form 10-K").

Forward-Looking Statements This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects and future consolidated financial position or results of operations, made in this Report on Form 10-Q are forward looking. We use words such as “anticipates”, “believes”, “expects”, “future”, “intends” and similar expressions to identify forward-looking statements. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from such expectations. The following discussion includes forward-looking statements all of which are inherently difficult to predict. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. Accordingly, we identify the following important factors, among others, which could cause our results to differ from any results that might be projected, forecasted or estimated in any such forward-looking statements:

i.risks related to the military conflict between Russia and Ukraine and its impact on our production, sales, supply chain, cost of energy, and availability of energy due to potential natural gas supply issues into Europe from the Nord Stream 1 pipeline;

ii.risks associated with the impact of the COVID-19 pandemic, including global and regional economic conditions, changes in demand for our products, interruptions in our global supply chain, ability to continue production by our facilities, credit conditions of our customers or suppliers, or potential legal actions that could arise due to our operations during the pandemic;

iii.disruptions of our global supply chain, including the availability of key raw materials and transportation for the delivery of critical inputs and of products to customers, and the increase in the costs of transporting materials and products;

iv.risks associated with our ability to increase selling prices quickly or sufficiently enough to recover rapid cost inflation in our raw materials, energy, freight and other costs;

v.variations in demand for our products, including the impact of unplanned market-related downtime, variations in product pricing, or product substitution;

vi.the impact of competition, changes in industry production capacity, including the construction of new facilities or new machines, the closing of facilities and incremental changes due to capital expenditures or productivity increases;

vii.risks associated with our international operations, including local economic and political environments and fluctuations in currency exchange rates;

viii.our ability to develop new, high value-added products;

ix.changes in the price or availability of raw materials we use, particularly woodpulp, pulp substitutes, synthetic pulp, other specialty fibers and abaca fiber;

x.changes in energy-related prices and commodity raw materials with an energy component;

xi.the impact of unplanned production interruption at our facilities or at any of our key suppliers;

xii.disruptions in production and/or increased costs due to labor disputes;

xiii.the gain or loss of significant customers and/or on-going viability of such customers;

xiv.the impact of war and terrorism;

xv.the impact of unfavorable outcomes of audits by various state, federal or international tax authorities or changes in pre-tax income and its impact on the valuation of deferred taxes;

xvi.enactment of adverse state, federal or foreign tax or other legislation or changes in government legislation, policy or regulation; and

xvii.our ability to finance, consummate and integrate acquisitions, including our acquisitions of Mount Holly and Jacob Holm.

Introduction We manufacture a wide array of engineered materials and manage our company along three operating segments:

•Composite Fibers with sales of single-serve tea and coffee filtration papers, wallcovering base materials, composite laminate papers, technical specialties including substrates for electrical applications, and metallized products;

•Airlaid Materials with sales of airlaid nonwoven fabric-like materials used in feminine hygiene products, adult incontinence products, tabletop, specialty wipes, home care products and other airlaid applications; and

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•Spunlace with sales of premium quality spunlace nonwovens for critical cleaning, high-performance materials, personal care, hygiene and medical applications.

The former Specialty Papers business’ results of operations and financial condition are reported as discontinued operations. Following is a discussion and analysis primarily of the financial results of operations and financial condition of our continuing operations.

Acquisition As discussed in Item 1 - Financial Statements and Supplementary Data, Note 3 “Acquisitions,” we completed our acquisitions of Georgia-Pacific's U.S. nonwovens business (“Mount Holly”) on May 13, 2021 for $170.9 million and the acquisition of all outstanding equity of PMM Holdings (Luxembourg) AG ("Jacob Holm") on October 29, 2021 for $304.0 million. Refer to Note 3 - “Acquisitions"”for additional information about these transactions.

RESULTS OF OPERATIONS

Six months ended June 30, 2022 versus the six months ended June 30, 2021

Overview For the first six months of 2022, we reported a loss from continuing operations of $110.8 million, or $2.47 per share compared with income of $9.9 million and $0.22 per diluted share in the year earlier period. The following table sets forth summarized consolidated results of operations:

	Six months ended June 30,
In thousands, except per share	2022		2021
Net sales	$	745,643	$	470,585
Gross profit	69,062		74,850
Operating income (loss)	(106,965)		25,442
Continuing operations
Income (loss)	(110,750)		9,886
Earnings per share	(2.47)		0.22
Net income (loss)	(110,379)		9,804
Earnings per share	(2.46)		0.22

The reported results are in accordance with generally accepted accounting principles in the United States (“GAAP”) and reflect the impact of a number of significant items including a goodwill and other asset impairment charge related to our Dresden operations and Composite Fibers segment, strategic initiatives, corporate headquarters relocation and cost optimization, among others. On an adjusted earnings basis, a non-GAAP measure, we had a loss from continuing operations of $7.8 million, or $0.17 per share for the first six months of 2022, compared with income of $16.5 million, or $0.37 per diluted share, a year ago.

Our operating results for the first six months of 2022 reflect: i) the impact of Russia/Ukraine military conflict which commenced on February 24, 2022 and the compounding impacts, including sanctions on the sale of certain products into Russia, adversely impacted sales, prices paid for energy, production and collection of receivables and resulted in the recording of a $117.3 million asset impairment charge; ii) the completion of two significant acquisitions in 2021, which collectively added $246.9 million of net sales; iii) the adverse impact of significant inflationary pressures, particularly energy costs, which outpaced our efforts to realize higher selling prices; and iv) interest expense increased reflecting the acquisition financing.

In addition to the results reported in accordance with GAAP, we evaluate our performance using adjusted earnings and adjusted earnings per share. We disclose this information to allow investors to evaluate our performance exclusive of certain items that impact the comparability of results from period to period, and we believe it is helpful in understanding underlying operating trends and cash flow generation.

Adjusted earnings consists of net income determined in accordance with GAAP adjusted to exclude the impact of the following:

Strategic initiatives. These adjustments primarily reflect professional and legal fees incurred directly related to evaluating and executing certain strategic initiatives including costs associated with acquisitions, related integrations, and charges incurred to step-up acquired inventory to fair-value.

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Corporate headquarters relocation. These adjustments reflect costs incurred in connection with the strategic relocation of the Company’s corporate headquarters to Charlotte, NC. The costs are primarily related to employee relocation costs and exit costs at the former corporate headquarters.

Cost optimization actions. These adjustments reflect charges incurred in connection with initiatives to optimize the cost structure of the Company, improve efficiencies or other objectives. Such actions may include asset rationalization, headcount reductions or similar actions. These adjustments, which have occurred at various times in the past, are irregular in timing and relate to specific identified programs to reduce or optimize the cost structure of a particular operating segment or the corporate function.

Goodwill and other asset impairment charges. This adjustment represents a non-cash charge recorded to reduce the carrying amount of certain long-lived assets, intangible assets and goodwill of our Dresden facility and the Composite Fibers reporting segment. The impairment was directly related to the adverse impact of the Russia/Ukraine military conflict on our projected revenue and EBITDA.

Russia/Ukraine conflict charges. This adjustment represents a non-cash charge recorded to reduce the carrying amount of accounts receivable and inventory directly related to the Russia/Ukraine military conflict.

Timberland sales and related costs. These adjustments exclude gains from the sales of timberlands as these items are not considered to be part of our core business, ongoing results of operations or cash flows. These adjustments are irregular in timing and amount and may benefit our operating results.

Coronavirus Aid, Relief, and Economic Security (CARES) Act 2020. This adjustment reflects taxes recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) related to provisions that modified the “net operating loss” provisions of previous law to allow certain losses to be carried back five years.

These adjustments are each unique and not considered to be on-going in nature. The transactions are irregular in timing and amount and may significantly impact our operating performance. As such, these items may not be indicative of our past or future performance and therefore are excluded for comparability purposes.

Adjusted earnings and adjusted earnings per share are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

The following table sets forth the reconciliation of net income to adjusted earnings for the period indicated:

	Six months ended June 30,
	2022				2021
In thousands, except per share	Amount		EPS		Amount		EPS
Net income (loss)	$	(110,379)	$	(2.46)	$	9,804	$	0.22
Exclude: Loss (income) from discontinued operations, net of tax	(371)		(0.01)		82		—
Income (loss) from continuing operations	(110,750)		(2.47)		9,886		0.22
Adjustments (pre-tax):
Goodwill and other asset impairment charges (1)	117,349				—
Russia/Ukraine conflict charges (2)	3,948				—
Strategic initiatives (3)	2,488				8,434
Corporate headquarters relocation	223				361
Cost optimization actions (4)	941				—
Timberland sales and related costs	(2,962)				(2,403)
Total adjustments (pre-tax)	121,987				6,392
Income taxes (5)	(19,167)				31
CARES Act of 2020 tax provision (6)	175				183
Total after-tax adjustments	102,995		2.30		6,606		0.15
Adjusted earnings (loss) from continuing operations	$	(7,755)	$	(0.17)	$	16,492	$	0.37

(1)Reflects goodwill impairment charge of $56.1 million and other asset impairment charges of $61.3 million. Refer to Note 6, Goodwill and Other Asset Impairment, for details of this item.

(2)Reflects bad debt expense charges of $2.9 million and inventory reserves charges $1.0 million. Refer to Note 6, Goodwill and Other Asset Impairment, for details of this item.

(3)For 2022, primarily reflects professional services fees (including legal, audit, valuation specialists and consulting) of $1.7 million, employee separation and other costs of $0.8 million and other costs, all of which are directly related to acquisitions. For 2021, primarily reflects

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professional services fees related to acquisitions (including legal, audit and valuation specialists) of $7.1 million, employee separation and other costs of $0.6 million, inventory valuation step-up costs of $0.5 million and other costs, all of which are directly related to acquisitions.

(4)Primarily reflects employee separation costs of $0.4 million, equipment write-down of $0.4 million and other costs of $0.1 million directly associated with closure of synthetic fiber production facility in the U.K..

(5)Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. For items originating in the U.S., no tax effect is recognized due to the previously established valuation allowance on the net deferred tax assets. No tax effects were recognized on the goodwill impairment as there were no related deferred taxes.

(6)Reflects the tax effect of applying certain provisions of the CARES Act of 2020.

Segment Financial Performance

	Six months ended June 30,
Dollars in thousands	2022		2021
Net Sales
Composite Fibers	$	259,167	$	282,847
Airlaid Material	293,172		187,738
Spunlace	193,304		—
Total	$	745,643	$	470,585
Operating income (loss)
Composite Fibers	$	5,444	$	27,128
Airlaid Material	24,165		15,628
Spunlace	(3,380)		—
Other and unallocated	(133,194)		(17,314)
Total	$	(106,965)	$	25,442
Depreciation and amortization
Composite Fibers	$	11,315	$	13,981
Airlaid Material	15,171		12,615
Spunlace	5,859		—
Other and unallocated	2,591		1,870
Total	$	34,936	$	28,466
Capital expenditures
Composite Fibers	$	10,258	$	5,655
Airlaid Material	5,532		3,036
Spunlace	3,886		—
Other and unallocated	3,021		2,520
Total	$	22,697	$	11,211
Tons shipped (metric)
Composite Fibers	52,457		68,611
Airlaid Material	83,733		63,179
Spunlace	40,094		—
Total	176,284		$	131,790

Segments Results of individual operating segments are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the segments. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not

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directly aligned with the segment are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the table set forth above.

Management evaluates results of operations of the operating segments before certain corporate level costs and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of the segments and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of operating segments results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

Sales and Costs of Products Sold

	Six months ended June 30,
In thousands	2022			2021			Change
Net sales	$	745,643		$	470,585		$	275,058
Costs of products sold	676,581			395,735			280,846
Gross profit	$	69,062		$	74,850		$	(5,788)
Gross profit as a percent of Net sales	9.3		%	15.9		%

The following table sets forth the contribution to consolidated net sales by each segment:

	Six months ended June 30,
Percent of Total	2022		2021
Segment
Composite Fibers	34.8	%	60.1	%
Airlaid Materials	39.3		39.9
Spunlace	25.9		—
Total	100.0	%	100.0	%

Net sales totaled $745.6 million and $470.6 million in the first six months of 2022 and 2021, respectively. Net sales for Composite Fibers and Airlaid Materials (including Mount Holly) decreased by 2.0% and increased by 63.7%, respectively, on a constant currency basis. The Spunlace segment, formed in connection with the Jacob Holm acquisition, had net sales of approximately $193.3 million in the first six months of 2022.

Composite Fibers’ net sales decreased $23.7 million or 8.4% in the first six months of 2022, compared to the year-ago quarter. Wallcover shipments were below prior year by 49% due to lower shipments to customers in Russia and Ukraine, resulting from the continuation of the military conflict in this region and prohibition of the export of sanctioned wallcover base paper and tea filter products to Russia. Lower shipments were partially offset by higher selling prices of $32.0 million. Currency translation was unfavorable $18.0 million.

Composite Fibers had operating income of $5.4 million in the first six months of 2022 compared with $27.1 million in the year-ago period. Higher selling prices and energy surcharges of $32.0 million fell $14.0 million short of recovering continued inflation in energy and raw material. Lower shipments and market related downtime, primarily in our Dresden facility, negatively impacted results by $12.2 million. The impact of currency and related hedging positively impacted earnings by $4.5 million. The primary drivers of the change in Composite Fibers’ operating income are summarized in the following chart (presented in millions):

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Airlaid Materials’ net sales increased $105.4 million in the year-over-year comparison driven by higher shipments in all major product categories and higher selling prices from cost-pass-through arrangements with customers. Shipments were 32.5% higher driven by strong growth in the tabletop, wipes, and hygiene product categories, including the benefit from a full six months of Mount Holly in 2022. Currency translation was $14.1 million unfavorable.

Airlaid Materials’ operating income, for the first six months of 2022, of $24.2 million was $8.5 million higher than the same period in 2021. Higher shipments and product mix positively impacted results by $11.9 million. Selling price increases of $36.4 million was $2.4 million short of offsetting the higher raw material prices and energy inflation costs. Operations were favorable $1.6 million driven by higher production, which offset other general inflationary pressures. The impact of currency and related hedging negatively impacted earnings by $2.5 million. The primary drivers are summarized in the following chart (presented in millions):

Spunlace net sales for the first six months were approximately $193.3 million. An operating loss of $3.4 million was mainly driven by higher raw material and energy costs only partially offset by higher selling prices and energy surcharges.

Asset Impairment During the first quarter of 2022, in connection with an assessment of potential impairment of long-lived and indefinite-lived intangible assets stemming from the compounding impacts resulting from the Russia/Ukraine military conflict and related sanctions, we recorded a $117.3 million non-cash asset impairment charge related to Composite Fibers' Dresden facility and an impairment of Composite Fibers' goodwill. Dresden is a single-line facility that produces wallcover base paper, the majority of which is directly sold into the Russian and Ukrainian markets. As a direct

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result of the economic impacts from the conflict, including disruptions in the underlying financial systems and prohibition of the export of sanctioned wallcover base paper to Russia, management expects a significant reduction in wallcover revenues and associated cash flows for the foreseeable future. In addition, the conflict is expected to significantly impact energy prices and also impact other Composite Fibers products that are subject to export sanctions into Russia. During the year ended December 31, 2021, we had total net sales of wallcover and other products to customers in Russia and Ukraine totaling approximately $95 million. We do not expect significant sales to customers in this region for the foreseeable future as a result of the military conflict, its impact on Ukrainian customers, and the economic sanctions on sales of certain products to customers in Russia. Accordingly, a charge was recorded to reduce the carrying value of the Dresden fixed assets and intangible assets (technological know-how, customer relationships, and an indefinite-lived trade name), along with Composite Fiber's goodwill to fair value.

In addition, as a result of economic sanctions and disruptions to the financial markets, certain customers are not able to satisfy outstanding accounts receivables. As such, during the first quarter of 2022, we recognized bad debt expense of approximately $2.9 million directly related to Russian and Ukrainian customers which is included in “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of income for the six months ended June 30, 2022. At June 30, 2022, we had accounts receivable, net of reserves, from customers in this region totaling approximately $2.6 million which we expect to collect in normal course. However, if circumstances change such that some customers are unable to satisfy their obligations, we may be required to recognize additional bad debt expense in future periods. Furthermore, during the first quarter of 2022, we increased inventory reserves by approximately $1.0 million, primarily related to wallcover products. The charge related to inventory reserves is included in “Cost of products sold” in the accompanying condensed consolidated statements of income for the six months ended June 30, 2022. Substantially all other products which we will no longer be able to export to Russia due to sanctions can be sold to existing customers outside the Russia/Ukraine region.

Other and Unallocated The amount of operating expense not allocated to a reporting segment in the Segment Financial Information totaled $133.2 million in the first six months of 2022 compared with $17.3 million in the same period a year ago. Excluding the items identified to present “adjusted earnings,” unallocated expenses for the first six months of 2022 decreased $0.3 million compared to the same period in 2021.

Income taxes In the first six months of 2022, our loss from continuing operations totaled $124.2 million and we recorded an income tax benefit of $13.5 million. On adjusted pre-tax loss of $2.3 million, income tax provision was $5.5 million in the first six months of 2022, which primarily related to reserves for uncertain tax positions and valuation allowances for losses for which no tax benefit could be recognized. The comparable amounts in the first six months of 2021 were adjusted pre-tax income of $27.5 million and income tax expense of $11.0 million, respectively.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom, Spain, and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany, France and Spain, it is the euro, in the UK, it is the British pound sterling, and in the Philippines the functional currency is the peso. On an annual basis, our euro denominated net sales exceeds euro expenses by an estimated €150 million. For the first six months of 2022, the average currency exchange rate was 1.09 dollar/euro compared with 1.20 in the same period of 2021. With respect to the British pound sterling, Canadian dollar, and Philippine peso, we have differing amounts of inflows and outflows of these currencies, although to a lesser degree than the euro. As a result, we are exposed to changes in currency exchange rates and such changes could be significant. The translation of the results from international operations into U.S. dollars is subject to changes in foreign currency exchange rates.

The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation’s results for the first six months of 2022.

In thousands	Six months ended June 30,
	Favorable (unfavorable)
Net sales	$	(32,135)
Costs of products sold	31,774
SG&A expenses	2,010
Income taxes and other	241
Net loss	$	1,890

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The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2022 were the same as 2021. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

Three months ended June 30, 2022 versus the three months ended June 30, 2021

Overview For the second quarter of 2022, we reported loss from continuing operations of $2.5 million, or $0.05 per share compared with income of $1.5 million and $0.03 per diluted share in the year earlier period. The following table sets forth summarized consolidated results of operations:

	Three months ended June 30,
In thousands, except per share	2022		2021
Net sales	$	363,963	$	244,911
Gross profit	37,397		35,554
Operating income	8,924		8,123
Continuing operations:
Income (loss)	(2,460)		1,492
Earnings per share	(0.05)		0.03
Net income (loss)	(2,052)		1,410
Earnings per share	(0.05)		0.03

The reported results are in accordance with generally accepted accounting principles in the United States (“GAAP”) and reflect the impact of significant items including strategic initiatives and corporate headquarters relocation costs, among others. On an adjusted earnings basis, a non-GAAP measure, we had a loss from continuing operations of $1.6 million, or $0.04 per share for the second quarter of 2022, compared with income of $8.0 million, or $0.18 per diluted share, a year ago.

Our second quarter of 2022 operating results reflect: i) the continuation of the compounding impacts of the Russia/Ukraine military conflict commencing on February 24, 2022 including the adverse impact of the prohibition of the export of sanctioned products into Russia; ii) the completion of two significant acquisitions in 2021, which collectively added $123.2 million of net sales; iii) the adverse impact of significant inflationary pressures, particularly energy costs, which outpaced our efforts to realize higher selling prices; and iv) interest expense increased reflecting the acquisition financing.

The following table sets forth the reconciliation of net income to adjusted earnings for the period indicated:

	Three months ended June 30,
	2022				2021
In thousands, except per share	Amount		EPS		Amount		EPS
Net income (loss)	$	(2,052)	$	(0.04)	$	1,410	$	0.03
Exclude: Income from discontinued operations, net of tax	(408)		(0.01)		82		—
Income (loss) from continuing operations	(2,460)		(0.05)		1,492		0.03
Adjustments (pre-tax):
Strategic initiatives (1)	653				7,831
Corporate headquarters relocation	135				206
Timberland sales and related costs	—				(1,553)
Total adjustments (pre-tax)	788				6,484
Income taxes (2)	(20)				(50)
CARES Act of 2020 tax provision (3)	96				90
Total after-tax adjustments	864		0.01		6,524		0.15
Adjusted earnings (loss) from continuing operations	$	(1,596)	$	(0.04)	$	8,016	$	0.18

(1)For 2022, primarily reflects professional services fees (including legal, audit, valuation specialists and consulting) of $0.5 million, employee separation and other costs of $0.4 million and other costs, all of which are directly related to acquisitions. For 2021, reflects professional services fees related to acquisitions (including transaction advisory, legal, audit and valuation specialists) of $6.5 million, employee separation and other costs of $0.6 million, inventory valuation step-up costs of $0.5 million and other costs all of which are directly related to acquisitions.

(2)Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. For items originating in the U.S., no tax effect is recognized due to the previously established valuation allowance on the net deferred tax assets.

(3)Reflects the tax effect of applying certain provisions of the CARES Act of 2020.

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Segment Financial Performance

	Three months ended June 30,
Dollars in thousands	2022		2021
Net sales
Composite Fibers	$	123,338	$	141,598
Airlaid Material	143,708		103,313
Spunlace	96,917		—
Total	$	363,963	$	244,911
Operating income (loss)
Composite Fibers	$	5,779	$	11,063
Airlaid Material	11,944		8,431
Spunlace	(1,808)		—
Other and unallocated	(6,991)		(11,371)
Total	$	8,924	$	8,123
Depreciation and amortization
Composite Fibers	$	4,796	$	7,000
Airlaid Material	7,542		6,767
Spunlace	2,945		—
Other and unallocated	1,169		966
Total	$	16,452	$	14,733
Capital expenditures
Composite Fibers	$	4,131	$	2,882
Airlaid Material	2,064		1,297
Spunlace	1,801		—
Other and unallocated	2,353		1,653
Total	$	10,349	$	5,832
Tons shipped (metric)
Composite Fibers	24,246		34,471
Airlaid Material	40,681		34,315
Spunlace	19,358		—
Total	84,285		$	68,786

Segments Results of individual operating segments are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the segments. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the segment are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the table set forth above.

Management evaluates results of operations of the operating segments before certain corporate level costs and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of the segments

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and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of operating segments results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

Sales and Costs of Products Sold

	Three months ended June 30,
In thousands	2022			2021			Change
Net sales	$	363,963		$	244,911		$	119,052
Costs of products sold	326,566			209,357			117,209
Gross profit	$	37,397		$	35,554		$	1,843
Gross profit as a percent of Net sales	10.3		%	14.5		%

The following table sets forth the contribution to consolidated net sales by each segment:

	Three months ended June 30,
Percent of Total	2022		2021
Segment
Composite Fibers	33.9	%	57.8	%
Airlaid Materials	39.5		42.2
Spunlace	26.6		—
Total	100.0	%	100.0	%

Net sales totaled $364.0 million and $244.9 million in the second quarter of 2022 and 2021, respectively. Net sales for Composite Fibers and Airlaid Materials (including Mount Holly) decreased by 4.4% and increased by 47.7%, respectively, on a constant currency basis. The Spunlace segment, formed in connection with the Jacob Holm acquisition, had net sales of approximately $96.9 million in the second quarter of 2022.

Composite Fibers’ net sales decreased $18.3 million or 12.9% in the second quarter of 2022, compared to the year-ago quarter. Higher selling prices of $14.4 million were more than offset by lower shipments of 29.7%. Wallcover shipments were below prior year by 62% due to lower shipments to customers in Russia and Ukraine, resulting from the continuation of the geopolitical conflict in this region and prohibition of the export of sanctioned wallcover and tea filter products into Russia. Currency translation was unfavorable $12.0 million.

Composite Fibers had operating income for the second quarter of $5.8 million compared with $11.1 million operating income in the second quarter of 2021. Lower shipments and market-related downtime, primarily in our Dresden facility, negatively impacted results by $6.4 million. Higher selling prices and energy surcharges of $14.4 million fell $2.5 million short of fully recovering continued inflation in energy, raw material and freight of $16.9 million. The impact of currency and related hedging positively impacted earnings by $3.6 million mainly driven by weakening of the British Pound. The primary drivers of the change in Composite Fibers’ operating income are summarized in the following chart (presented in millions):

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Airlaid Materials’ net sales increased $40.4 million in the year-over-year comparison driven by the Mount Holly acquisition, higher shipments in all major product categories, and higher selling prices from cost-pass-through arrangements with customers. Shipments were 18.6% higher driven by strong growth in the wipes, tabletop, and hygiene product categories. Currency translation was $8.9 million unfavorable.

Airlaid Materials’ second quarter operating income of $11.9 million was $3.5 million higher when compared to the second quarter of 2021. Higher shipments positively impacted results by $3.9 million. Selling price increases and energy surcharges of $18.0 million fully offset the higher raw material and energy costs which improved results by $0.8 million. Operations were slightly favorable by $0.3 million as higher production was mostly offset by general inflationary pressures. The impact of currency and related hedging negatively impacted earnings by $1.5 million due to a weakening Euro. The primary drivers are summarized in the following chart (presented in millions):

Spunlace net sales for the second quarter were approximately $96.9 million. An operating loss of $1.8 million was mainly driven by higher raw material and energy costs only partially offset by higher selling prices and energy surcharges.

Other and Unallocated The amount of operating expense not allocated to a reporting segment in the Segment Financial Information totaled $7.0 million in the second quarter of 2022 compared with $11.4 million in the same period a year ago. Excluding the items identified to present “adjusted earnings,” unallocated expenses for the second quarter of 2022 increased $1.3 million compared to the second quarter of 2021.

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Income taxes In the second quarter of 2022, our income from continuing operations totaled $0.8 million and we recorded an income tax provision of $3.3 million. On adjusted pre-tax income of $1.6 million, the income tax expense was $3.2 million in the second quarter of 2022, which primarily related to reserves for uncertain tax positions and valuation allowances for losses for which no tax benefit could be recognized. The comparable amounts in the same quarter of 2021 were adjusted pre-tax income of $12.0 million and income tax expense of $4.0 million, respectively.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom, Spain, and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany, France and Spain, it is the Euro, in the UK, it is the British pound sterling, and in the Philippines the functional currency is the peso. On an annual basis, our euro denominated net sales exceeds euro expenses by an estimated €150 million. For the three months ended June 30, 2022, the average currency exchange rate was 1.07 dollar/euro compared with 1.19 in the same period of 2021. With respect to the British pound sterling, Canadian dollar, and Philippine peso, we have differing amounts of inflows and outflows of these currencies, although to a lesser degree than the euro. As a result, we are exposed to changes in currency exchange rates and such changes could be significant. The translation of the results from international operations into U.S. dollars is subject to changes in foreign currency exchange rates.

The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation’s results for the second quarter of 2022.

In thousands	Three months ended June 30, 2022
	Favorable (unfavorable)
Net sales	$	(20,875)
Costs of products sold	21,553
SG&A expenses	1,384
Income taxes and other	190
Net loss	$	2,252

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2022 were the same as 2021. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

LIQUIDITY AND CAPITAL RESOURCES

Our business requires significant expenditures for new or enhanced equipment, to support our research and development efforts, and to support our business strategy. In addition, we have mandatory debt service requirements of both principal and interest. The following table summarizes cash flow information for each of the periods presented:

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	Six months ended June 30,
In thousands	2022		2021
Cash, cash equivalents and restricted cash at the beginning of period	$	148,814	$	111,665
Cash provided (used) by
Operating activities	(79,535)		1,365
Investing activities	(18,136)		(181,136)
Financing activities	33,546		165,138
Effect of exchange rate changes on cash	(3,587)		(1,432)
Change in cash and cash equivalents from discontinued operations	(231)		(238)
Net cash used	(67,943)		(16,303)
Cash, cash equivalents and restricted cash at the end of period	80,871		95,362
Less: restricted cash in Prepaid and other current assets	(2,000)		(2,000)
Less: restricted cash in Other assets	(7,395)		(9,197)
Cash and cash equivalents at the end of period	$	71,476	$	84,165

At June 30, 2022, we had $71.5 million in cash and cash equivalents (“cash”) held by both domestic and foreign subsidiaries. Approximately 89.3% of our cash and cash equivalents is held by our foreign subsidiaries but could be repatriated without incurring a significant amount of additional taxes.

Cash used by operating activities in the first six months of 2022 totaled $79.5 million compared with cash provided by operating activities of $1.4 million in the same period a year ago. The increase was primarily due to an increase in working capital usage, primarily accounts receivable, inventory and the termination of a factoring arrangement previously utilized by certain former Jacob Holm entities, an $11.5 million reduction in adjusted EBITDA, a $7.6 million increase in income taxes paid and a $13.0 million increase in interest paid.

Adjusted EBITDA	Six months ended June 30,
In thousands	2022		2021
Net income (loss)	$	(110,379)	$	9,804
Exclude: Income (loss) from discontinued operations, net of tax	(371)		82
Add back: Taxes on Continuing operations	(13,489)		11,211
Depreciation and amortization	34,936		28,466
Interest expense, net	15,479		3,272
EBITDA	(73,824)		52,835
Adjustments:
Goodwill and other asset impairment charges	117,349		—
Russia/Ukraine conflict charges	3,948		—
Strategic initiatives	2,488		8,434
Share-based compensation (1)	2,419		2,537
Corporate headquarters relocation	223		361
Cost optimization actions	589		—
Timberland sales and related costs	(2,962)		(2,403)
Adjusted EBITDA	$	50,230	$	61,764

(1)Adjusted EBITDA for 2021 has been restated to add back share-based compensation consistent with our amended credit agreement. The share-based compensation adjustment represents the non-cash amount of share-based compensation expense included in results of operations.

EBITDA is a measure used by management to assess our operating performance and is calculated using income (loss) from continuing operations and excludes interest expense, interest income, income taxes and depreciation and amortization. Adjusted EBITDA is calculated using EBITDA and further excludes certain items management considers to be unrelated to the company’s core operations. The adjustments include asset impairment charges, costs of strategic initiatives, certain cost optimization and restructuring activities, corporate headquarters relocation expenses, as well as the elimination of gains

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from sales of timberlands. Adjusted EBITDA is a performance measure that excludes costs that we do not consider to be indicative of our ongoing operating performance.

Net cash used by investing activities was $18.1 million compared with $181.1 million in the same period a year ago. During the six months ended June 30, 2021, we used $172.3 million for the Mount. Holly acquisition. Capital expenditures totaled $22.7 million and $11.2 million for the six months ended June 30, 2022 and 2021, respectively, and are expected to be $45 million to $50 million, including $7 million to $8 million for Spunlace integration, for the full year 2022.

Net cash provided by financing activities totaled $33.5 million in the first six months of 2022 compared with $165.1 million in the same period of 2021. The change in financing activities primarily reflects a decrease in borrowings under our revolving credit agreement. In 2021, we used borrowings under the revolving credit facility to pay for the Mount Holly acquisition.

As discussed in Item 1 - Financial Information, Note - 16, our Credit Agreement contains a number of customary compliance covenants. As of June 30, 2022, the leverage ratio, as calculated in accordance with the definition in our Credit Agreement, was 5.3x, well within the maximum limit allowed under our Credit Agreement. A breach of these requirements would give rise to certain remedies under the Revolving Credit Facility, among which are the termination of the agreement and accelerated repayment of the outstanding borrowings plus accrued and unpaid interest under the Credit Agreement. As discussed in Note 16 - “Long Term Debt,” on May 9, 2022, we amended our Credit Agreement to increase the maximum leverage ratio to 6.75 to 1.0 until the quarter ended December 31, 2023, after which the maximum ratio will step down to 4.0 to 1.0.

Details of our outstanding long-term indebtedness are set forth under Item 1 - Financial Statements – Note 16 -“Long-Term Debt."

Financing activities include cash used for common stock dividends. In the first six months of 2022 and 2021, we used $12.5 million and $12.0 million, respectively, of cash for dividends on our common stock. Our Board of Directors determines what, if any, dividends will be paid to our shareholders. Dividend payment decisions are based upon then-existing factors and conditions and, therefore, historical trends of dividend payments are not necessarily indicative of future payments.

We are subject to various federal, state and local laws and regulations intended to protect the environment, as well as human health and safety. At various times, we have incurred significant costs to comply with these regulations and we could incur additional costs as new regulations are developed or regulatory priorities change.

At June 30, 2022, we had ample liquidity consisting of $71.5 million of cash on hand and $131.6 million of capacity under our revolving credit facility. We expect to meet all of our near and long-term cash needs from a combination of operating cash flow, cash and cash equivalents, our existing credit facility and other long-term debt.

Off-Balance-Sheet Arrangements As of June 30, 2022 and December 31, 2021, we had not entered into any off-balance-sheet arrangements. Financial derivative instruments, to which we are a party, and guarantees of indebtedness, which solely consist of obligations of subsidiaries, are reflected in the condensed consolidated balance sheets included herein in Item 1 – Financial Statements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

	Year Ended December 31															June 30, 2022
In thousands, except percentages	2022			2023			2024			2025			2026			Carrying Value		Fair Value
Long-term debt
Average principal outstanding
At variable interest rates	$	272,541		$	261,116		$	255,403		$	81,161		$	54,700		$	275,398	$	275,398
At fixed interest rates – Term Loans	533,306			521,934			502,221			500,382			500,000			537,163		385,434
																$	812,561	$	660,832
Weighted-average interest rate
On variable rate debt	2.44		%	2.44		%	2.44		%	2.44		%	2.44		%
On fixed rate debt – Term Loans	4.51		%	4.58		%	4.74		%	4.75		%	4.75		%

The table above presents the average principal outstanding and related interest rates for the next five years for debt outstanding as of June 30, 2022. Fair values included herein have been determined based upon rates currently available to us for debt with similar terms and remaining maturities.

Our market risk exposure primarily results from changes in interest rates and currency exchange rates. At June 30, 2022, we had $812.6 million of long-term debt, of which 33.9% was at variable interest rates. Variable-rate debt represents borrowings under our credit agreement that accrues interest based on one-month U.S. Dollar LIBOR or one-month Euro LIBOR indexes, but in no event less than zero, plus the applicable margin. At June 30, 2022, the weighted-average interest rate paid was equal to 2.44%. A hypothetical 100 basis point increase in the interest rate on variable rate debt would increase annual interest expense by $1.6 million. In the event rates are 100 basis points lower, interest expense would be $0.5 million lower.

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions – “cash flow hedges”; or ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables – “foreign currency hedges.” For a more complete discussion of this activity, refer to Item 1 – Financial Statements – Note 18.

We are subject to certain risks associated with changes in foreign currency exchange rates to the extent our operations are conducted in currencies other than the U.S. Dollar. On an annual basis, our Euro denominated revenue exceeds euro expenses by an estimated €150 million. With respect to the British Pound Sterling, Canadian Dollar, and Philippine Peso, we have differing amounts of inflows and outflows of these currencies, although to a lesser degree than the Euro. As a result, particularly with respect to the Euro, we are exposed to changes in currency exchange rates and such changes could be significant.

Long- and indefinite-lived Assets We evaluate the recoverability of our long- and indefinite-lived assets, including plant, equipment, timberlands, goodwill, and other intangible assets periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Goodwill is reviewed for impairment annually during the fourth quarter, or more frequently if impairment indicators are present.

The fair value of our reporting units, which are also our operating segments, is determined using a market approach and a discounted cash flow model. Our evaluations include a variety of qualitative factors and analyses based on estimates of future cash flows expected to be generated from the use of the underlying assets, trends or other determinants of fair value. If the value of an asset determined by these evaluations is less than its carrying amount, a loss is recognized for the difference between the fair value and the carrying value of the asset. Our Airlaid Materials segment’s fair value substantially exceeded its carrying value at the time of its last valuation performed in connection with the last annual impairment test in the fourth quarter of 2021. Our Composite Fibers segment, having performed its last valuation and having recognized a goodwill impairment in the first quarter of 2022, has a fair value that approximates its carrying value. Our Spunlace segment, which was formed in conjunction with the Jacob Holm acquisition on October 29, 2021, also has a fair value that approximates its carrying value. Both Composite Fibers’ and Spunlace’s fair value could be impacted by factors such as unexpected changes in inflation, significant disruptions in the delivery of energy to our sites, particularly in Europe, or the Company’s inability to continue to increase selling prices in response to inflationary pressures. Future adverse changes such as these or in market conditions or poor operating results of the related business may indicate an inability to recover the carrying value of the assets, thereby possibly requiring an impairment charge in the future.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures Our Chief Executive Officer and our principal financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2022, have concluded that, as of the evaluation date, our disclosure controls and procedures are effective.

Changes in Internal Controls There were no changes in our internal control over financial reporting during the three months ended June 30, 2022, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS

The following updated risk factor should be considered in addition to the risk factors set forth under Part I, Item 1A. Risk Factors in our 2021 Form 10-K. Except as described herein, there have been no material changes with respect to the risk factors disclosed in our 2021 Form 10-K.

The conflict between Russia and Ukraine has adversely affected, and may continue to adversely affect, our business, financial condition, and results of operations.

Approximately $95 million of our net sales in 2021, or 7.3% of our net sales in 2021, was earned from customers located in Russia and Ukraine. The geopolitical conditions resulting from the Russia/Ukraine military conflict, including government-imposed sanctions and the current macroeconomic climate in Russia and Ukraine, have adversely impacted both demand for our products and our ability to deliver products to this region, as well as, limited customers' access to financial resources and their ability to satisfy obligations to us. For example, as a direct result of the military conflict, economic sanctions, and the disruptions in the region’s financial systems, our management expects a significant reduction in wallcover revenues and cash flows, for the foreseeable future, from our facility located in Dresden, Germany that produces wallcover paper, a significant portion of which historically was sold into the Ukraine and Russian markets. Certain wallcover base paper, together with certain filtration products produced by our Composite Fibers segment, are subject to sanction restrictions and currently are unable to be sold into the Russian market. As a result, during the first six months of 2022, we recorded a $117.3 million non-cash asset impairment charge related to assets of our Dresden facility and an impairment of our Composite Fibers business' goodwill. Moreover, certain customers have not been able to satisfy outstanding accounts receivables and, as such, during the first six months of 2022, we recognized bad debt expense of approximately $2.9 million directly related to Russian and Ukrainian customers. At June 30, 2022, we had accounts receivable, net of reserves, from customers in this region totaling approximately $2.6 million which we expect to collect in normal course.

In addition, we operate manufacturing sites elsewhere in Europe that have been adversely impacted as a result of the military conflict in Ukraine and related geopolitical events and sanctions. In many instances, these sites depend on the availability of natural gas for use in the production of products. The supply of a substantial portion of the natural gas used may originate from Russia. We expect that shortages in supply and increases in costs of natural gas will adversely impact our ability to operate these sites in an efficient and cost-effective manner, for the foreseeable future.

The risk of cyber-security incidents and cyber attacks has increased in connection with the ongoing conflict, driven by justifications such as retaliation for the sanctions imposed in conjunction with the conflict. It is possible that such incidents or attacks could have collateral effects on additional critical infrastructure and financial institutions globally, which could adversely affect our operations and could increase the frequency and severity of cyber-based attacks against our information technology systems. The proliferation of malware from the conflict, into systems unrelated to the conflict, or cyberattacks against U.S. companies in retaliation for U.S. sanctions against Russia or U.S. support of Ukraine, could also adversely affect our operations and our supply chain.

To the extent the current conflict adversely affects our business, financial condition and results of operations, it may also have the effect of heightening many other risks disclosed in Part I, Item 1A. Risk Factors in our 2021 Form 10-K, any of which could materially and adversely affect our business and results of operations, however, due to the continually evolving nature of the conflict, the potential impact that the conflict could have on such risk factors, and others that cannot yet be identified, remains uncertain.

In the event that current geopolitical tensions fail to abate, or deteriorate further, or additional governmental sanctions are enacted against the Russian economy or its banking and monetary systems, we may face additional adverse consequences to our business and results of operations. Even if the conflict moderates or a resolution between Ukraine and Russia is reached, we expect that we will continue to experience ongoing adverse consequences to our business, financial condition and results of operation resulting from the conflict for the foreseeable future, including because certain of the economic and other sanctions imposed, or that may be imposed, against Russia may continue for a period of time after any resolution has been reached.

- 44 -

ITEM 6. EXHIBITS

The following exhibits are filed or furnished herewith or incorporated by reference as indicated.

		Incorporated by reference to
31.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Certification of Ramesh Shettigar, Senior Vice President, Chief Financial Officer and Treasurer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1	Certification of Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, furnished herewith.
32.2	Certification of Ramesh Shettigar, Senior Vice President, Chief Financial Officer and Treasurer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, furnished herewith.
10.1	First Amendment to Fourth Amended and Restated Credit Agreement	Ex. 10.1 to  Form 8-K filed May 10, 2022
10.2	Glatfelter Corporation 2022 Long-Term Incentive Plan	Ex. 99.1 to  Form S-8 filed May 11, 2022
10.3	Form of Restricted Stock Unit Award Certificate (form effective as of May 5, 2022)
10.4	Form of Performance Share Award Certificate (form effective as of May 5, 2022)
10.5	Form of Restricted Stock Unit Award Certificate for CEO (form effective as of May 5, 2022)
10.6	Form of Performance Share Award Certificate for CEO (form effective as of May 5, 2022)
10.7	Form of Non-Employee Director Restricted Stock Unit Award Certificate (form effective as of May 5, 2022)
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data file because its iXBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema.
101.CAL	Inline XBRL Extension Calculation Linkbase.
101.DEF	Inline XBRL Extension Definition Linkbase.
101.LAB	Inline XBRL Extension Label Linkbase.
101.PRE	Inline XBRL Extension Presentation Linkbase.
104	Cover Page Interactive Data File (formatted as an inline XBRL and contained in Exhibit 101).

- 45 -

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.

	Glatfelter Corporation (Registrant)
August 2, 2022
	By	/s/ David C. Elder
		David C. Elder
		Vice President, Finance and Chief Accounting Officer (Principal Accounting Officer)

- 46 -

EX-10.3

EXHIBIT 10.3

Glatfelter Corporation

Restricted Stock Unit Award Certificate

______________________________________________________________________________

Award Number: _____-RSU-01 Award Date: ______________

Number of Restricted Stock Units: ______________

Vesting Schedule: ______________

THIS CERTIFIES THAT Glatfelter Corporation, a Pennsylvania corporation (the “Company”) has on the Award Date specified above granted to:

Name

(the “Participant”) an award (the “Award”) to receive that number of Restricted Stock Units (the “RSUs”) indicated above in the space labeled “Number of Restricted Stock Units,” each RSU representing the right to receive one share of the Company’s common stock (the “Common Stock”), subject to the terms and conditions contained in this Award Certificate and the Company’s 2022 Long-Term Incentive Plan (the “Plan”). In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan will prevail. Any capitalized terms not defined herein will have the meaning set forth in the Plan.

* * * *

1.Rights of the Participant with Respect to the Restricted Stock Units.

(a) No Shareholder Rights. The RSUs granted under this Award do not and will not entitle the Participant to any rights of a holder of Common Stock. The rights of the Participant with respect to the RSUs will remain forfeitable at all times prior to the date on which the rights become vested, according to Section 2, 3, 4 or 7.

(b) Dividend Equivalents. During the period from the Award Date to the issuance of shares of Common Stock according to Section 1(c), the Participant will be credited with deemed dividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable after the Award Date, just as though the Participant, on the record date for payment of the dividend, had been the holder of record of shares of Common Stock equal to the number of RSUs represented by this Award Certificate. The Deemed Dividends will be converted to additional RSUs, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value of one share of Common Stock on the date the cash dividend to which it relates is paid. The Company will establish a bookkeeping record to account for the Deemed Dividends and additional RSUs to be credited to the Participant. The additional RSUs represented by Deemed Dividends are subject to the same vesting requirements as the Award.

(c) Conversion of Restricted Stock Units; Issuance of Common Stock.

EXHIBIT 10.3

(i) No shares of Common Stock will be issued to the Participant prior to the date on which the RSUs vest, in accordance with Section 2, 3, 4 or 7. Neither this Section 1(c) nor any action taken according to this Section will be construed to create a trust of any kind. After vesting takes place according to Section 2, 3, 4 or 7, the Company will cause to be issued, within thirty (30) days following the date of vesting (subject to Section 6(a)), in payment for such RSUs that number of shares of Common Stock equal to the number of vested RSUs.

(ii) Notwithstanding anything in the Agreement to the contrary: If the Participant incurs a Separation from Service on account of Retirement, death, Disability, or a CIC Termination (as defined below), in each case, upon or within two years after a Change in Control that constitutes a “change in control event” for purposes of Code section 409A (“409A CIC”), payment in respect of the vested RSUs will be made to the Participant within sixty (60) days following such Separation from Service, subject to Section 6(a) below. If a Participant incurs a Separation from Service on account of Retirement and a Change in Control that constitutes a 409A CIC subsequently occurs before the final Vesting Date, any RSUs that vest pursuant to Section 4(c) will be paid upon the Change in Control. If a Change in Control does not constitute a 409A CIC or if the Separation from Service occurs more than two years after a 409A CIC, and if required by Code section 409A, payment will be made on the date on which payment would have been made had there been no Change in Control.

2. Vesting.

(a) Except as set forth in Section 4(b) or 4(c), the RSUs will vest on the following dates; provided the Participant remains continuously employed by the Company on the applicable dates below (each, a “Vesting Date”): ______________

Except as provided in Sections 3, 4 or 7, if the Participant should, prior to the applicable Vesting Date, have a Separation from Service, the unvested RSUs will, upon the occurrence of the event, be forfeited and no shares of common stock will be issued to the Participant.

(b) The vesting of the RSUs is cumulative but shall not exceed 100% of the RSUs. If the foregoing schedule or the provisions of Section 3 would produce fractional units, the number of RSUs vesting shall be rounded up to the nearest whole unit, but not in excess of 100% of the RSUs.

3. Early Vesting upon Separation following Change in Control. Notwithstanding the vesting provision contained in Section 2 and Section 4(c), but subject to the other terms and conditions set forth herein, including Section 7, and provided that the Participant is employed by the Company immediately prior to a Change in Control, as hereinafter defined, in the event of the Participant’s (i) involuntary Separation from Service by the Company other than for Cause or (ii) voluntary Separation from Service for Good Reason, in each case upon or following a Change in Control and before the final Vesting Date (in either case, a “CIC Termination”), all of the unvested RSUs will become fully vested.

1.Forfeiture or Early Vesting upon Separation from Service.

(a) Separation from Service Generally. If, prior to vesting of the RSUs according to Section 2, the Participant has a Separation from Service with the Company or any of its subsidiaries for any reason (voluntary or involuntary) other than death, Disability, or Retirement, then any unvested RSUs will be immediately and irrevocably forfeited.

EXHIBIT 10.3

(b) Death or Disability. Provided that the Participant is employed by the Company immediately prior to such event, upon the Participant’s death or Disability (whether or not a Separation from Service), then all unvested RSUs will become fully vested.

(c) Vesting upon Retirement. If the Participant incurs a Separation from Service due to Retirement prior to the final Vesting Date, an amount of unvested RSUs will vest on the next Vesting Date immediately following the date of Retirement, which amount shall be determined by multiplying the number of RSUs by a fraction, the numerator of which is the number of days in the period starting with (i) the Award Date through (ii) the date of Retirement, and the denominator of which is ___, and subtracting the RSUs that had vested as of the date of Retirement in accordance with Section 2(a), rounded down to the nearest whole unit, without regard to continued service. Restrictions on all RSUs that vest in accordance with this Section 4(c) will lapse on the next Vesting Date immediately following the date of Retirement and be paid out after such Vesting Date according to Section 1(c). Any unvested RSUs shall be forfeited as of the date of Retirement and cease to be outstanding, unless Section 3 applies.

5. Restriction on Transfer. The RSUs and any rights under the Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by the Participant, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition of RSUs or other rights under the Award will be void and unenforceable against the Company and will result in the immediate forfeiture of such RSUs and rights. Notwithstanding the foregoing, the Participant may, in the manner established by the Compensation Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any shares of Common Stock issued or any cash paid with respect to the RSUs upon the death of the Participant.

6. Tax Matters; Compliance with Code section 409A.

(a) Distributions of Common Stock in payment for RSUs as described herein which represent a “deferral of compensation” within the meaning of Code section 409A will conform to the applicable requirements of Code section 409A including, without limitation, the requirement that a distribution to a Participant who is a “specified employee” within the meaning of Code section 409A(a)(2)(B)(i) which is made on account of the specified employee’s Separation from Service will not be made before the date which is six (6) months after the date of Separation from Service. If such distribution is delayed pursuant to Code section 409A, the distribution will be paid within thirty (30) days after the end of the six-month period. If the Participant dies during such six-month period, any postponed amounts shall be paid within ninety (90) days of the Participant’s death. In no event shall the Participant, directly or indirectly, designate the calendar year of payment.

(b) In order to comply with all applicable federal, state and local tax laws or regulations, the Company may take such actions as it deems appropriate to ensure that all applicable federal, state and local payroll, withholding, income or other taxes are withheld or collected from the Participant.

(c) The Company will take such actions as it deems appropriate to ensure all applicable federal, state, local or foreign taxes are withheld or collected from the Participant. In accordance with the terms of the Plan, the Committee hereby confirms that the Participant may elect to satisfy the Participant’s federal, state, local and foreign tax withholding obligations arising from the receipt of shares of Common Stock following the vesting of the RSUs by (i) delivering a check or money order payable to the Company in an amount equal to the federal, state, local or foreign taxes the Company is required to withhold to satisfy its withholding obligations, or (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such federal, state, local or foreign taxes the Company is required to withhold to satisfy its minimum withholding obligations (or such other withholding rate as is affirmatively approved by the Committee). The Company will not deliver any fractional share of Common Stock but will instead round down to the

EXHIBIT 10.3

next full number the amount of shares of Common Stock to be delivered. The Participant’s election must be made on or before the date that any such withholding obligation with respect to the RSUs arises, based on procedures established by the Company. If the Participant fails to make a timely election, the Company will have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount the Company’s minimum withholding obligations with respect to such taxes.

7. Change in Control; Value Restoration Payment. In the event of a Change in Control in which the Company’s stock is no longer the stock of the surviving entity, the Company will cause the surviving entity to issue replacement RSUs (“Replacement RSUs”). The number of Replacement RSUs to be issued will be calculated based on the fair market value of the Company’s Common Stock at the date of the Change in Control divided by the fair market value of the surviving entity’s common stock on such date. If such replacement RSUs are not issued for any reason, or if the common stock of the surviving entity is not publicly traded at the date of the Change in Control, then, notwithstanding the provisions of Section 3, all RSUs will vest in full upon the occurrence of the Change in Control.

The terms and provisions of this Certificate will continue to apply to the Replacement RSUs when issued, including, without limitation, Section 3. In addition, the Participant will be entitled to receive, with respect to Replacement RSUs that vest, a value restoration payment with respect to such Replacement RSUs (a “Value Restoration Payment”). The Value Restoration Payment will be equal to the difference between the fair market value of the surviving entity’s common stock on the date of the Change in Control and, if less, the fair market value of the surviving entity’s common stock on the date on which the Replacement RSUs vest. For example, if the surviving entity’s common stock fair market value is $20.00 per share on the date of the Change in Control and is $15.00 per share on the date of vesting, the Participant will be entitled to receive a Value Restoration Payment equal to $5.00 per Replacement RSU with respect to each Replacement RSU vesting on such vesting date. Any such Value Restoration Payment will include interest (at the prime rate of interest of the Company’s principal bank in effect on the vesting date for the period between the date of the Change in Control and the vesting date) and will be paid in cash at the same time the Replacement RSUs are paid.

8. Miscellaneous.

(a) The Award does not confer on the Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time.

(b) The Company will not be required to deliver any shares of Common Stock upon vesting or lapse of restrictions of any RSUs until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

(c) All distributions under this Award shall be subject to any applicable clawback or recoupment policies, insider trading policies, policies prohibiting pledging or hedging of shares of Common Stock, and other polices that may be implemented by the Board from time to time.

(d) An original record of the Award and all the terms thereof, executed by the Company, will be held on file by the Company. To the extent there is any conflict between the terms contained in the Award Certificate and the terms contained in the original record held by the Company, the terms of the original record held by the Company will control.

9. Definitions.

EXHIBIT 10.3

(a) “Board” will have the meaning set forth in the Plan.

(b) “Cause” will mean (i) an act or acts of personal dishonesty taken by the Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s willful, deliberate and continued failure to substantially perform for the Company the normal material duties related to Participant’s job position which are not remedied in a reasonable period of time after receipt of written notice from the Company, (iii) violation by the Participant of any of the Company’s policies, including, but not limited to, policies regarding sexual harassment, insider trading, confidentiality, non-disclosure, non-competition, non-disparagement, substance abuse and conflicts of interest and any other written policy of the Company, which violation could result in the termination of the Participant’s employment; or (iv) the conviction of the Participant of a felony.

(c) “Change in Control.” will have the meaning set forth in the Plan.

(d) “Code” will mean the Internal Revenue Code of 1986, as amended.

(e) “Committee” will have the meaning set forth in the Plan.

(f) “Disability” will have the meaning set forth in the Plan.

(g) “Fair Market Value”will have the meaning set forth in the Plan.

(h) “Good Reason” will mean “Good Reason” as defined in the Participant’s Change in Control Employment Agreement for those Participants subject to such agreement; otherwise, “Good Reason” will mean (i) a material diminution in the Participant’s base salary, or (ii) a material change in the geographic location at which the Participant must perform services (for this purpose, a requirement that the Participant’s services be performed at a location less than forty (40) miles from the location where the Participant previously performed services will not be considered a material change. In order for termination to be for Good Reason, within ninety (90) days after the occurrence of any of the events listed in clauses (i) or (ii) above, (x) the Participant must deliver written notice to the Company of his/her intention to terminate his/her employment for Good Reason specifying in reasonable detail the facts and circumstances deemed to give rise to the Participant’s right to terminate his/her employment for Good Reason, (y) the Company will not have cured such facts and circumstances within thirty (30) days after delivery of such notice by the Participant to the Company, and (z) the Participant must have a Separation from Service no later than thirty (30) days following the expiration of such thirty (30) day cure period.

(i) “Retirement” will mean the retirement of an employee from employment with the Company and all affiliates on or after attaining age sixty five (65), or on or after attaining age fifty five (55) with a minimum of ten (10) years of service.

(j) “Separation from Service” will have the meaning set forth in the Plan.

A copy of the Plan is attached to this Certificate.

GLATFELTER CORPORATION

________________________________

EXHIBIT 10.3

By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge that I reviewed the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan.

Signature: Date:

Name

EX-10.4

GLATFELTER CORPORATION

Performance Share Award Certificate

______________________________________________________________________________

Award Number: ______-PSA-01

Award Date: __________

Award Type: Performance Share Units

Number of Performance Share Units Granted at Target:[1]__________

Performance Period: __________

Vesting Date: __________

Method of Payment: If vested and earned, this Performance Share Award will be paid in shares of Common Stock (except as otherwise set forth herein).

THIS CERTIFIES THAT Glatfelter Corporation, a Pennsylvania corporation (the “Company”) has, on the Award Date specified above, granted to:

Name

(the “Participant,” as defined in the Plan) a Performance Share Award (the “Award”) subject to the terms of this Award Certificate and the Company’s 2022 Long-Term Incentive Plan (the “Plan”). Capitalized terms used in this Award Certificate without definition will have the meanings set forth in the Plan.

Each Performance Share Unit, if vested and earned, will entitle the Participant to receive one (1) share of the Company’s Common Stock. In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan will prevail.

[1]The actual number of Performance Share Units earned by the Participant will be determined following the Vesting Date based on the achievement of the Performance Goals as described in Section 3 and may be different than the target number of Performance Share Units.

1. Vesting of Performance Share Units. The Performance Share Units (and any Deemed Dividends with respect to such Performance Share Units as set forth in Section 4) will vest and be earned based on the achievement of the Company’s performance goals outlined below (the “Performance Goals”) and the Participant’s continued employment with the Company or one of its subsidiaries through the Vesting Date, unless otherwise provided in Section 5(b) or 5(c). The Company’s Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) will determine whether the Performance Goals have been achieved. The number of Performance Share Units earned by the Participant will be determined by the Committee after the applicable Performance Period concludes, based on the level of achievement of the applicable Performance Goals, as more fully described on Exhibits A, B, and C,

conditioned on continued employment through the Vesting Date, except as otherwise provided in Section 5(b) or 5(c).

2. Performance Goals. The Company must meet or exceed the Performance Goals described on Exhibit A, B, or C, as applicable, in order for the following portions of the Performance Share Units to be earned and eligible to vest.

3. Determination of Achievement of Performance Goals.

(a) After each Performance Period concludes, the Committee will determine whether the Performance Goals have been achieved for that Performance Period, and the level of such achievement, and the Committee will determine the number of Performance Share Units that may be earned with respect to that Performance Period, if any. The number of Performance Share Units will be based on the degree of achievement of the Performance Goals according to the following guidelines and the Participant’s continued employment though the Vesting Date, except as otherwise set forth in Sections 5(b) and 5(c). In no event may the Performance Share Units payout exceed the 200% of the target number of Performance Share Units.

(b) The Committee has the discretion to adjust some or all of the number of shares of Common Stock that would otherwise be payable as a result of satisfying the Performance Goals. In making this determination, the Committee may take into account any factors it determines are appropriate, including but not limited to Company or individual performance.

4. Dividends on Performance Share Units. During the period from the Award Date to the issuance of shares of Common Stock, the Participant will be credited with deemed dividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable after the Award Date, just as though the Participant, on the record date for payment of the dividend, had been the holder of record of shares of Common Stock equal to the number of Performance Share Units at target (adjusted as described in the following sentence) represented by this Award Certificate. The Deemed Dividends will be converted to additional Performance Share Units, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value of one share of Common Stock on the date the cash dividend to which it relates is paid. The Company will establish a bookkeeping record to account for the Deemed Dividends and additional Performance Share Units to be credited to the Participant. The additional Performance Share Units represented by Deemed Dividends are subject to the same vesting and performance requirements as the other Performance Share Units, including without limitation the requirement that the applicable Performance Goals have been achieved. The Deemed Dividends will be added to the target number of Performance Share Units before calculating the number of Performance Share Units earned during the applicable Performance Period, in accordance with Section 3.

5. Separation from Service Prior to the Vesting Date.

(a) In General. Subject to Sections 5(b) and 5(c) below, if, prior to the Vesting Date, the Participant ceases to be an employee of the Company and its subsidiaries for any reason (whether voluntarily or involuntarily), then this Award will be immediately and irrevocably forfeited.

(b) Retirement, Death or Disability. Notwithstanding the foregoing, if the Participant incurs a Separation from Service due to death, Retirement or Disability, and such event takes place on or after the Award Date but prior to the end of the Vesting Period, then the Participant will be entitled to receive a pro-rated Award following the end of the Vesting Period, but only to the extent that the Performance Goals are determined to have been achieved. Such pro-ration will be determined by multiplying the number of Performance Share Units the Participant would have received by a fraction, the numerator of

which equals the number of days that elapse between ________ and the date of Separation from Service on account of death, Retirement or Disability, and the denominator will be ______.

(c) Impact of a Change in Control.

(i) In the event of a Change in Control in which the Company is not the surviving entity, this Award will be deemed to be earned at the greater of target or actual performance through the date of the Change in Control, as determined by the Board, for any Performance Period that has not been completed as of the date of the Change in Control, and (except as described below) the earned Performance Share Units for such Performance Period and for any previously completed Performance Period will be replaced with performance share units with respect to the common stock of the surviving entity (“Replacement Performance Share Units”). The number of Replacement Performance Share Units will be calculated based on the Fair Market Value of the Company’s Common Stock at the date of the Change in Control divided by the fair market value of the surviving entity’s common stock on such date.

(ii) Notwithstanding the foregoing, if Replacement Performance Share Units are not issued for any reason, or if the common stock of the surviving entity is not publicly traded at the date of the Change in Control, then all Performance Share Units will be deemed to be earned and vested upon the occurrence of the Change in Control (i) at the greater of target or actual performance through the date of the Change in Control, as determined by the Committee, for any Performance Period that has not been completed as of the date of the Change in Control, and (ii) at the amount earned based on performance for any previously completed Performance Period.

(iii) The Participant’s right to such Replacement Performance Share Units will not vest unless and until the Participant has remained in continuous employment with the Company or a subsidiary, or the Company’s successor or a subsidiary, through the Vesting Date, except as provided otherwise in Section 5(b), Section 5(c)(ii) or the following sentence. Notwithstanding the foregoing, if the Participant has (x) an involuntary Separation from Service, other than for Cause, with the Company or the surviving entity upon or following a Change in Control and before the Vesting Date or (y) a voluntary Separation from Service for Good Reason upon or following a Change in Control and before the Vesting Date (in either case, a “CIC Termination”), the requirement of continued employment through the Vesting Date will be waived and the Participant will be deemed vested with respect to payment of the Replacement Performance Share Units on the date of Separation from Service. The terms and provisions of this Award Certificate will continue to apply to the Replacement Performance Share Units when issued.

(iv) In addition, if the Participant vests in the Replacement Performance Share Units after a Change in Control, the Participant will be entitled to receive a value restoration payment in cash with respect to such Replacement Performance Share Units as are deemed vested (a “Value Restoration Payment”). The Value Restoration Payment will be equal to the difference between the fair market value of the surviving entity’s common stock on the date of the Change in Control and, if less, the fair market value of the surviving entity’s common stock on the date on which the Replacement Performance Share Units vest. For example, if the surviving entity’s common stock fair market value is $20.00 per share on the date of the Change in Control and is $15.00 per share on the vesting date, the Participant will be entitled to receive a Value Restoration Payment equal to $5.00 per Replacement Performance Share Unit. Any such Value Restoration Payment will include interest (at the prime rate of interest of the Company’s principal bank in effect on the vesting date for the period between the date of the Change in Control and the vesting date) and will be paid in cash at the same time the Replacement Performance Share Units are paid.

6. Restriction on Transfer. No rights under this Award may be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by the Participant, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition of Performance Share Units or other rights under this Award will be void and unenforceable against the Company and will result in the immediate forfeiture of

such Award and rights. Notwithstanding the foregoing, the Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any shares of Common Stock issued with respect to the Award upon the death of the Participant.

7. Payment of Performance Share Units.

    (i)     Payment in respect of vested Performance Share Units shall occur in calendar year _____, as soon as possible after the end of the Performance Period ending ________, to the extent it is determined that the applicable Performance Goals and other requirements set forth herein have been met, except as described below.

    (ii)     If the Participant incurs a Separation from Service on account of Retirement, death, Disability or a CIC Termination, in each case, upon or within two years after a Change in Control that constitutes a “change in control event” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”) (a “409A CIC”), payment in respect of the vested Performance Share Units will be made to the Participant within sixty (60) days following such Separation from Service, subject to Section 8 below. If a Participant incurs a Separation from Service on account of Retirement, death or Disability, and a Change in Control that constitutes a 409A CIC subsequently occurs before the Vesting Date, any PSAs that vest pursuant to Section 5(b) will be paid upon the Change in Control. If the Participant incurs a Separation from Service on account of Retirement, death or Disability, and a Change in Control that does not constitute a 409A CIC subsequently occurs before the Vesting Date, or if the Separation from Service occurs more than two years after a 409A CIC, and if required by Code section 409A, payment will be made in calendar year 2025.

    (iii)     Payment of vested Performance Share Units will be made in shares of Common Stock, subject to Section 5(c). The number of shares issued will be rounded down to the next whole number of shares and the Company will issue the shares, in book-entry form, registered in the Participant’s name or in the name of the Participant’s legal representatives, beneficiaries or heirs, as the case may be, in satisfaction of the Performance Share Units, the number of shares of Common Stock equal to the number of vested Performance Share Units.

(iv) The Company will take such actions as it deems appropriate to ensure all applicable federal, state, local or foreign payroll, withholding, income or other taxes are withheld or collected from the Participant. In accordance with the terms of the Plan, the Committee hereby confirms that the Participant may elect to satisfy the Participant’s federal, state, local and foreign tax withholding obligations arising from the receipt of shares of Common Stock following the vesting of the Performance Share Units by (i) delivering check or money order payable to the Company in any amount equal to the federal, state, local or foreign taxes the Company determines is required to satisfy its minimum withholding obligations (or such other withholding rate affirmatively approved by the Committee), or (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such federal, state, local or foreign taxes the Company determines is required to satisfy its minimum withholding obligations (or such other withholding rate as is affirmatively approved by the Committee). The Company will not deliver any fractional share of Common Stock but will instead round down to the next full number the amount of shares of Common Stock to be delivered. The Participant’s election must be made on or before the date that any such withholding obligation with respect to the Performance Share Units arises, based on procedures established by the Company. If the Participant fails to make a timely election, the Company will have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount the Company determines is required to satisfy its minimum withholding obligations with respect to such taxes.

8. Compliance with Code Section 409A. This Award is intended to comply with the requirements of Code section 409A or an exemption and will be interpreted accordingly. To the extent that distributions in payment of this Award represent a “deferral of compensation” within the meaning of Code section 409A, such distributions will conform to the applicable requirements of Code section 409A including, without limitation, the requirement that a distribution to a Participant who is a “specified employee” within the meaning of Code section 409A(a)(2)(B)(i) which is made on account of the specified employee’s Separation from Service will not be made before the date which is six (6) months after the date of Separation from Service. If such distribution is delayed pursuant to Code section 409A, the distribution will be paid within thirty (30) days after the end of the six-month period. If the Participant dies during such six-month period, any postponed amounts shall be paid within ninety (90) days of the Participant’s death. In no event shall the Participant, directly or indirectly, designate the calendar year of payment.

9. Miscellaneous.

(a) The Award does not confer on the Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time.

(b) The Company will not be required to deliver any shares of Common Stock upon vesting of the Performance Share Units until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

(c) All distributions under this Award shall be subject to any applicable clawback or recoupment policies, insider trading policies, policies prohibiting pledging or hedging of shares of Common Stock, and other polices that may be implemented by the Board from time to time.

(d) An original record of the Award and all the terms thereof, executed by the Company, will be held on file by the Company. To the extent there is any conflict between the terms contained in the Award Certificate and the terms contained in the original record held by the Company, the terms of the original record held by the Company will control.

(e) Definitions. In addition to the definitions set forth in the Plan, the following definitions will apply to this Award Certificate:

“Cause” means (i) an act or acts of personal dishonesty taken by the Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s willful, deliberate and continued failure to substantially perform for the Company the normal material duties related to Participant’s job position which are not remedied in a reasonable period of time after receipt of written notice from the Company, (iii) violation by the Participant of any of the Company’s policies, including, but not limited to, policies regarding sexual harassment, insider trading, confidentiality, non-disclosure, non-competition, non-disparagement, substance abuse and conflicts of interest and any other written policy of the Company, which violation could result in the termination of the Participant’s employment; or (iv) the conviction of the Participant of a felony.

“Change in Control” will have the meaning set forth in the Plan.

“Good Reason” means (i) a material diminution in the Participant’s base salary, or (ii) a material change in the geographic location at which the Participant must perform services (for this purpose, a requirement that the Participant’s services be performed at a location less than forty (40) miles from the location where the Participant previously performed services will not be considered a material

change). In order for termination to be for Good Reason, within ninety (90) days after the occurrence of any of the events listed in clauses (i) or (ii) above, (x) the Participant must deliver written notice to the Company of his/her intention to terminate his/her employment for Good Reason specifying in reasonable detail the facts and circumstances deemed to give rise to the Participant’s right to terminate his/her employment for Good Reason, (y) the Company will not have cured such facts and circumstances within thirty (30) days after delivery of such notice by the Participant to the Company, and (z) the Participant must have a Separation from Service no later than thirty (30) days following the expiration of such thirty (30) day cure period.

“Retirement” will mean the retirement of an employee from employment with the Company and all affiliates on or after attaining age sixty five (65), or on or after attaining age fifty five (55) with a minimum of ten (10) years of service.

A copy of the Plan is available by request to the office of the Corporate Secretary.

Glatfelter Corporation

___________________________

By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge that I reviewed the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan.

Signature: ______________________________ Date:

Name

Exhibit A

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Exhibit B

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Exhibit C

EX-10.5

Glatfelter Corporation

Restricted Stock Unit Award Certificate

______________________________________________________________________________

Award Number: ____-RSU-01 Award Date: _____________

Number of Restricted Stock Units:

Vesting Schedule: _____________

THIS CERTIFIES THAT Glatfelter Corporation, a Pennsylvania corporation (the “Company”) has on the Award Date specified above granted to:

[CEO]

(the “Participant”) an award (the “Award”) to receive that number of Restricted Stock Units (the “RSUs”) indicated above in the space labeled “Number of Restricted Stock Units,” each RSU representing the right to receive one share of the Company’s common stock (the “Common Stock”), subject to the terms and conditions contained in this Award Certificate and the Company’s 2022 Long-Term Incentive Plan (the “Plan”). In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan will prevail. Any capitalized terms not defined herein will have the meaning set forth in the Plan.

* * * *

1.Rights of the Participant with Respect to the Restricted Stock Units.

(a) No Shareholder Rights. The RSUs granted under this Award do not and will not entitle the Participant to any rights of a holder of Common Stock. The rights of the Participant with respect to the RSUs will remain forfeitable at all times prior to the date on which the rights become vested, according to Section 2, 3, 4 or 7.

(b) Dividend Equivalents. During the period from the Award Date to the issuance of shares of Common Stock according to Section 1(c), the Participant will be credited with deemed dividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable after the Award Date, just as though the Participant, on the record date for payment of the dividend, had been the holder of record of shares of Common Stock equal to the number of RSUs represented by this Award Certificate. The Deemed Dividends will be converted to additional RSUs, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value of one share of Common Stock on the date the cash dividend to which it relates is paid. The Company will establish a bookkeeping record to account for the Deemed Dividends and additional RSUs to be credited to the Participant. The additional RSUs represented by Deemed Dividends are subject to the same vesting requirements as the Award.

(c) Conversion of Restricted Stock Units; Issuance of Common Stock.

(i) No shares of Common Stock will be issued to the Participant prior to the date on which the RSUs vest, in accordance with Section 2, 3, 4 or 7. Neither this Section 1(c) nor any action taken according to this Section will be construed to create a trust of any kind. After vesting takes place according to Section 2, 3, 4 or 7, the Company will cause to be issued, within thirty (30) days following the date of vesting (subject to Section 6(a)), in payment for such RSUs that number of shares of Common Stock equal to the number of vested RSUs.

(ii) Notwithstanding anything in the Agreement to the contrary: If the Participant incurs a Separation from Service on account of Retirement, death, Disability, or a CIC Termination (as defined below), in each case, upon or within two years after a Change in Control that constitutes a “change in control event” for purposes of Code section 409A (“409A CIC”), payment in respect of the vested RSUs will be made to the Participant within sixty (60) days following such Separation from Service, subject to Section 6(a) below. If a Participant incurs a Separation from Service on account of Retirement and a Change in Control that constitutes a 409A CIC subsequently occurs before the final Vesting Date, any RSUs that vest pursuant to Section 4(c) will be paid upon the Change in Control. If a Change in Control does not constitute a 409A CIC or if the Separation from Service occurs more than two years after a 409A CIC, and if required by Code section 409A, payment will be made on the date on which payment would have been made had there been no Change in Control.

2. Vesting.

(a) Except as set forth in Section 4(b) or 4(c), the RSUs will vest on the following dates; provided the Participant remains continuously employed by the Company on the applicable dates below (each, a “Vesting Date”): _____________

Except as provided in Sections 3, 4 or 7, if the Participant should, prior to the applicable Vesting Date, have a Separation from Service, the unvested RSUs will, upon the occurrence of the event, be forfeited and no shares of common stock will be issued to the Participant.

(b) The vesting of the RSUs is cumulative but shall not exceed 100% of the RSUs. If the foregoing schedule or the provisions of Section 3 would produce fractional units, the number of RSUs vesting shall be rounded up to the nearest whole unit, but not in excess of 100% of the RSUs.

3. Early Vesting upon Separation following Change in Control. Notwithstanding the vesting provision contained in Section 2 and Section 4(c), but subject to the other terms and conditions set forth herein, including Section 7, and provided that the Participant is employed by the Company immediately prior to a Change in Control, as hereinafter defined, in the event of the Participant’s (i) involuntary Separation from Service by the Company other than for Cause or (ii) voluntary Separation from Service for Good Reason, in each case upon or following a Change in Control and before the final Vesting Date (in either case, a “CIC Termination”), all of the unvested RSUs will become fully vested.

1.Forfeiture or Early Vesting upon Separation from Service.

(a)     Separation from Service Generally. If, prior to vesting of the RSUs according to Section 2, the Participant has a Separation from Service with the Company or any of its subsidiaries for any reason (voluntary or involuntary) other than death, Disability, or Retirement, then any unvested RSUs will be immediately and irrevocably forfeited.

(b) Death or Disability. Provided that the Participant is employed by the Company immediately prior to such event, upon the Participant’s death or Disability (whether or not a Separation from Service), then all unvested RSUs will become fully vested.

(c)     Vesting upon Retirement. If the Participant incurs a Separation from Service due to Retirement on or following ____, the RSUs will vest on the __________ in accordance with the schedule set forth in Section 2(a), without regard to continued service. Restrictions on all RSUs that vest in accordance with this Section 4(c) will lapse on the applicable Vesting Date specified above in Section 2(a) and be paid out after the applicable Vesting Date according to Section 1(c). If the Participant incurs a Separation from Service due to Retirement before the ____, the RSUs shall be forfeited, unless Section 3 applies.

5. Restriction on Transfer. The RSUs and any rights under the Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by the Participant, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition of RSUs or other rights under the Award will be void and unenforceable against the Company and will result in the immediate forfeiture of such RSUs and rights. Notwithstanding the foregoing, the Participant may, in the manner established by the Compensation Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any shares of Common Stock issued or any cash paid with respect to the RSUs upon the death of the Participant.

6. Tax Matters; Compliance with Code section 409A.

(a) Distributions of Common Stock in payment for RSUs as described herein which represent a “deferral of compensation” within the meaning of Code section 409A will conform to the applicable requirements of Code section 409A including, without limitation, the requirement that a distribution to a Participant who is a “specified employee” within the meaning of Code section 409A(a)(2)(B)(i) which is made on account of the specified employee’s Separation from Service will not be made before the date which is six (6) months after the date of Separation from Service. If such distribution is delayed pursuant to Code section 409A, the distribution will be paid within thirty (30) days after the end of the six-month period. If the Participant dies during such six-month period, any postponed amounts shall be paid within ninety (90) days of the Participant’s death. In no event shall the Participant, directly or indirectly, designate the calendar year of payment.

(b) In order to comply with all applicable federal, state and local tax laws or regulations, the Company may take such actions as it deems appropriate to ensure that all applicable federal, state and local payroll, withholding, income or other taxes are withheld or collected from the Participant.

(c) The Company will take such actions as it deems appropriate to ensure all applicable federal, state, local or foreign taxes are withheld or collected from the Participant. In accordance with the terms of the Plan, the Committee hereby confirms that the Participant may elect to satisfy the Participant’s federal, state, local and foreign tax withholding obligations arising from the receipt of shares of Common Stock following the vesting of the RSUs by (i) delivering a check or money order payable to the Company in an amount equal to the federal, state, local or foreign taxes the Company is required to withhold to satisfy its withholding obligations, or (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such federal, state, local or foreign taxes the Company is required to withhold to satisfy its minimum withholding obligations (or such other withholding rate as is affirmatively approved by the Committee). The Company will not deliver any fractional share of Common Stock but will instead round down to the next full number the amount of shares of Common Stock to be delivered. The Participant’s election must be made on or before the date that any such withholding obligation with respect to the RSUs arises, based on procedures established by the Company. If the Participant fails to make a timely election, the Company will have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount the Company’s minimum withholding obligations with respect to such taxes.

7. Change in Control; Value Restoration Payment. In the event of a Change in Control in which the Company’s stock is no longer the stock of the surviving entity, the Company will cause the surviving entity to issue replacement RSUs (“Replacement RSUs”). The number of Replacement RSUs to be issued will be calculated based on the fair market value of the Company’s Common Stock at the date of the Change in Control divided by the fair market value of the surviving entity’s common stock on such date. If such replacement RSUs are not issued for any reason, or if the common stock of the surviving entity is not publicly traded at the date of the Change in Control, then, notwithstanding the provisions of Section 3, all RSUs will vest in full upon the occurrence of the Change in Control.

The terms and provisions of this Certificate will continue to apply to the Replacement RSUs when issued, including, without limitation, Section 3. In addition, the Participant will be entitled to receive, with respect to Replacement RSUs that vest, a value restoration payment with respect to such Replacement RSUs (a “Value Restoration Payment”). The Value Restoration Payment will be equal to the difference between the fair market value of the surviving entity’s common stock on the date of the Change in Control and, if less, the fair market value of the surviving entity’s common stock on the date on which the Replacement RSUs vest. For example, if the surviving entity’s common stock fair market value is $20.00 per share on the date of the Change in Control and is $15.00 per share on the date of vesting, the Participant will be entitled to receive a Value Restoration Payment equal to $5.00 per Replacement RSU with respect to each Replacement RSU vesting on such vesting date. Any such Value Restoration Payment will include interest (at the prime rate of interest of the Company’s principal bank in effect on the vesting date for the period between the date of the Change in Control and the vesting date) and will be paid in cash at the same time the Replacement RSUs are paid.

8. Miscellaneous.

(a) The Award does not confer on the Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time.

(b) The Company will not be required to deliver any shares of Common Stock upon vesting or lapse of restrictions of any RSUs until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

(c) All distributions under this Award shall be subject to any applicable clawback or recoupment policies, insider trading policies, policies prohibiting pledging or hedging of shares of Common Stock, and other polices that may be implemented by the Board from time to time.

(d) An original record of the Award and all the terms thereof, executed by the Company, will be held on file by the Company. To the extent there is any conflict between the terms contained in the Award Certificate and the terms contained in the original record held by the Company, the terms of the original record held by the Company will control.

9. Definitions.

(a) “Board” will have the meaning set forth in the Plan.

(b) “Cause” will mean (i) an act or acts of personal dishonesty taken by the Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s willful, deliberate and continued failure to substantially perform for the Company the normal material duties related to Participant’s job position which are not remedied in a reasonable period of time after receipt of written notice from the Company, (iii) violation by the Participant of any of the

Company’s policies, including, but not limited to, policies regarding sexual harassment, insider trading, confidentiality, non-disclosure, non-competition, non-disparagement, substance abuse and conflicts of interest and any other written policy of the Company, which violation could result in the termination of the Participant’s employment; or (iv) the conviction of the Participant of a felony.

(c) “Change in Control.” will have the meaning set forth in the Plan.

(d) “Code” will mean the Internal Revenue Code of 1986, as amended.

(e) “Committee” will have the meaning set forth in the Plan.

(f) “Disability” will have the meaning set forth in the Plan.

(g) “Fair Market Value”will have the meaning set forth in the Plan.

(h) “Good Reason” will mean “Good Reason” as defined in the Participant’s Change in Control Employment Agreement for those Participants subject to such agreement; otherwise, “Good Reason” will mean (i) a material diminution in the Participant’s base salary, or (ii) a material change in the geographic location at which the Participant must perform services (for this purpose, a requirement that the Participant’s services be performed at a location less than forty (40) miles from the location where the Participant previously performed services will not be considered a material change. In order for termination to be for Good Reason, within ninety (90) days after the occurrence of any of the events listed in clauses (i) or (ii) above, (x) the Participant must deliver written notice to the Company of his/her intention to terminate his/her employment for Good Reason specifying in reasonable detail the facts and circumstances deemed to give rise to the Participant’s right to terminate his/her employment for Good Reason, (y) the Company will not have cured such facts and circumstances within thirty (30) days after delivery of such notice by the Participant to the Company, and (z) the Participant must have a Separation from Service no later than thirty (30) days following the expiration of such thirty (30) day cure period.

(i) “Retirement” will mean the retirement of an employee from employment with the Company and all affiliates on or after attaining age sixty five (65), or on or after attaining age fifty five (55) with a minimum of ten (10) years of service.

(j) “Separation from Service” will have the meaning set forth in the Plan.

A copy of the Plan is attached to this Certificate.

GLATFELTER CORPORATION

________________________________

By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge that I reviewed the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan.

Signature: Date:

EX-10.6

GLATFELTER CORPORATION

Performance Share Award Certificate

______________________________________________________________________________

Award Number: ____-PSA-01

Award Date: __________

Award Type: Performance Share Units

Number of Performance Share Units Granted at Target:[1]__________

Performance Period: __________

Vesting Date: ________

Method of Payment: If vested and earned, this Performance Share Award will be paid in shares of Common Stock (except as otherwise set forth herein).

THIS CERTIFIES THAT Glatfelter Corporation, a Pennsylvania corporation (the “Company”) has, on the Award Date specified above, granted to:

[CEO]

(the “Participant,” as defined in the Plan) a Performance Share Award (the “Award”) subject to the terms of this Award Certificate and the Company’s 2022 Long-Term Incentive Plan (the “Plan”). Capitalized terms used in this Award Certificate without definition will have the meanings set forth in the Plan.

Each Performance Share Unit, if vested and earned, will entitle the Participant to receive one (1) share of the Company’s Common Stock. In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan will prevail.

[1]The actual number of Performance Share Units earned by the Participant will be determined following the Vesting Date based on the achievement of the Performance Goals as described in Section 3 and may be different than the target number of Performance Share Units.

1. Vesting of Performance Share Units. The Performance Share Units (and any Deemed Dividends with respect to such Performance Share Units as set forth in Section 4) will vest and be earned based on the achievement of the Company’s performance goals outlined below (the “Performance Goals”) and the Participant’s continued employment with the Company or one of its subsidiaries through the Vesting Date, unless otherwise provided in Section 5(b), 5(c) or 5(d). The Company’s Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) will determine whether the Performance Goals have been achieved. The number of Performance Share Units earned by the Participant will be determined by the Committee after the applicable Performance Period concludes, based on the level of achievement of the applicable Performance Goals, as more fully described on Exhibits A, B, and C, conditioned on continued employment through the Vesting Date, except as otherwise provided in Section 5(b), 5(c) or 5(d).

2. Performance Goals. The Company must meet or exceed the Performance Goals described on Exhibit A, B, or C, as applicable, in order for the following portions of the Performance Share Units to be earned and eligible to vest.

3. Determination of Achievement of Performance Goals.

(a) After each Performance Period concludes, the Committee will determine whether the Performance Goals have been achieved for that Performance Period, and the level of such achievement, and the Committee will determine the number of Performance Share Units that may be earned with respect to that Performance Period, if any. The number of Performance Share Units will be based on the degree of achievement of the Performance Goals according to the following guidelines and the Participant’s continued employment though the Vesting Date, except as otherwise set forth in Sections 5(b), 5(c) and 5(d). In no event may the Performance Share Units payout exceed the 200% of the target number of Performance Share Units.

(b) The Committee has the discretion to adjust some or all of the number of shares of Common Stock that would otherwise be payable as a result of satisfying the Performance Goals. In making this determination, the Committee may take into account any factors it determines are appropriate, including but not limited to Company or individual performance.

4. Dividends on Performance Share Units. During the period from the Award Date to the issuance of shares of Common Stock, the Participant will be credited with deemed dividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable after the Award Date, just as though the Participant, on the record date for payment of the dividend, had been the holder of record of shares of Common Stock equal to the number of Performance Share Units at target (adjusted as described in the following sentence) represented by this Award Certificate. The Deemed Dividends will be converted to additional Performance Share Units, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value of one share of Common Stock on the date the cash dividend to which it relates is paid. The Company will establish a bookkeeping record to account for the Deemed Dividends and additional Performance Share Units to be credited to the Participant. The additional Performance Share Units represented by Deemed Dividends are subject to the same vesting and performance requirements as the other Performance Share Units, including without limitation the requirement that the applicable Performance Goals have been achieved. The Deemed Dividends will be added to the target number of Performance Share Units before calculating the number of Performance Share Units earned during the applicable Performance Period, in accordance with Section 3.

5. Separation from Service Prior to the Vesting Date.

(a) In General. Subject to Sections 5(b), 5(c) and 5(d) below, if, prior to the Vesting Date, the Participant ceases to be an employee of the Company and its subsidiaries for any reason (whether voluntarily or involuntarily), then this Award will be immediately and irrevocably forfeited.

(b)     Death or Disability. Notwithstanding the foregoing, if the Participant incurs a Separation from Service due to death or Disability, and such event takes place on or after the Award Date but prior to the end of the Vesting Period, then the Participant will be entitled to receive a pro-rated Award following the end of the Vesting Period, but only to the extent that the Performance Goals are determined to have been achieved. Such pro-ration will be determined by multiplying the number of Performance Share Units the Participant would have received by a fraction, the numerator of which equals the number of days that elapse between __________ and the date of Separation from Service on account of death or Disability, and the denominator will be __________.

(c) Retirement. If the Participant incurs a Separation from Service due to Retirement on or following the first anniversary of the Award Date, the Participant will be entitled to receive the Award without pro-ration, but only to the extent that the Performance Goals are determined to have been achieved through the end of the Performance Period. If the Participant incurs a Separation from Service due to Retirement before the first anniversary of the Award Date, the RSUs shall be forfeited, unless Section 5(d)(ii) or (iii) applies.

(d) Impact of a Change in Control.

(i) In the event of a Change in Control in which the Company is not the surviving entity, this Award will be deemed to be earned at the greater of target or actual performance through the date of the Change in Control, as determined by the Board, for any Performance Period that has not been completed as of the date of the Change in Control, and (except as described below) the earned Performance Share Units for such Performance Period and for any previously completed Performance Period will be replaced with performance share units with respect to the common stock of the surviving entity (“Replacement Performance Share Units”). The number of Replacement Performance Share Units will be calculated based on the Fair Market Value of the Company’s Common Stock at the date of the Change in Control divided by the fair market value of the surviving entity’s common stock on such date.

(ii) Notwithstanding the foregoing, if Replacement Performance Share Units are not issued for any reason, or if the common stock of the surviving entity is not publicly traded at the date of the Change in Control, then all Performance Share Units will be deemed to be earned and vested upon the occurrence of the Change in Control (i) at the greater of target or actual performance through the date of the Change in Control, as determined by the Committee, for any Performance Period that has not been completed as of the date of the Change in Control, and (ii) at the amount earned based on performance for any previously completed Performance Period.

(iii) The Participant’s right to such Replacement Performance Share Units will not vest unless and until the Participant has remained in continuous employment with the Company or a subsidiary, or the Company’s successor or a subsidiary, through the Vesting Date, except as provided otherwise in Section 5(b), Section 5(d)(ii) or the following sentence. Notwithstanding the foregoing, if the Participant has (x) an involuntary Separation from Service, other than for Cause, with the Company or the surviving entity upon or following a Change in Control and before the Vesting Date or (y) a voluntary Separation from Service for Good Reason upon or following a Change in Control and before the Vesting Date (in either case, a “CIC Termination”), the requirement of continued employment through the Vesting Date will be waived and the Participant will be deemed vested with respect to payment of the Replacement Performance Share Units on the date of Separation from Service. The terms and provisions of this Award Certificate will continue to apply to the Replacement Performance Share Units when issued.

(iv) In addition, if the Participant vests in the Replacement Performance Share Units after a Change in Control, the Participant will be entitled to receive a value restoration payment in cash with respect to such Replacement Performance Share Units as are deemed vested (a “Value Restoration Payment”). The Value Restoration Payment will be equal to the difference between the fair market value of the surviving entity’s common stock on the date of the Change in Control and, if less, the fair market value of the surviving entity’s common stock on the date on which the Replacement Performance Share Units vest. For example, if the surviving entity’s common stock fair market value is $20.00 per share on the date of the Change in Control and is $15.00 per share on the vesting date, the Participant will be entitled to receive a Value Restoration Payment equal to $5.00 per Replacement Performance Share Unit. Any such Value Restoration Payment will include interest (at the prime rate of interest of the Company’s principal bank in effect on the vesting date for the period between the date of the Change in Control and the vesting date) and will be paid in cash at the same time the Replacement Performance Share Units are paid.

6. Restriction on Transfer. No rights under this Award may be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by the Participant, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition of Performance Share Units or other rights under this Award will be void and unenforceable against the Company and will result in the immediate forfeiture of such Award and rights. Notwithstanding the foregoing, the Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant and receive any shares of Common Stock issued with respect to the Award upon the death of the Participant.

7. Payment of Performance Share Units.

(i)     Payment in respect of vested Performance Share Units shall occur in calendar year _____, as soon as possible after the end of the Performance Period ending _______, to the extent it is determined that the applicable Performance Goals and other requirements set forth herein have been met, except as described below.

(ii)     If the Participant incurs a Separation from Service on account of Retirement, death, Disability or a CIC Termination, in each case, upon or within two years after a Change in Control that constitutes a “change in control event” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”) (a “409A CIC”), payment in respect of the vested Performance Share Units will be made to the Participant within sixty (60) days following such Separation from Service, subject to Section 8 below. If a Participant incurs a Separation from Service on account of Retirement, death or Disability, and a Change in Control that constitutes a 409A CIC subsequently occurs before the Vesting Date, any PSAs that vest pursuant to Section 5(b) will be paid upon the Change in Control. If the Participant incurs a Separation from Service on account of Retirement, death or Disability and a Change in Control that does not constitute a 409A CIC subsequently occurs before the Vesting Date, or if the Separation from Service occurs more than two years after a 409A CIC, and if required by Code section 409A, payment will be made in calendar year 2025.

(iii)     Payment of vested Performance Share Units will be made in shares of Common Stock, subject to Section 5(d). The number of shares issued will be rounded down to the next whole number of shares and the Company will issue the shares, in book-entry form, registered in the Participant’s name or in the name of the Participant’s legal representatives, beneficiaries or heirs, as the case may be, in satisfaction of the Performance Share Units, the number of shares of Common Stock equal to the number of vested Performance Share Units.

(iv) The Company will take such actions as it deems appropriate to ensure all applicable federal, state, local or foreign payroll, withholding, income or other taxes are withheld or collected from the Participant. In accordance with the terms of the Plan, the Committee hereby confirms that the

Participant may elect to satisfy the Participant’s federal, state, local and foreign tax withholding obligations arising from the receipt of shares of Common Stock following the vesting of the Performance Share Units by (i) delivering check or money order payable to the Company in any amount equal to the federal, state, local or foreign taxes the Company determines is required to satisfy its minimum withholding obligations (or such other withholding rate affirmatively approved by the Committee), or (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such federal, state, local or foreign taxes the Company determines is required to satisfy its minimum withholding obligations (or such other withholding rate as is affirmatively approved by the Committee). The Company will not deliver any fractional share of Common Stock but will instead round down to the next full number the amount of shares of Common Stock to be delivered. The Participant’s election must be made on or before the date that any such withholding obligation with respect to the Performance Share Units arises, based on procedures established by the Company. If the Participant fails to make a timely election, the Company will have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount the Company determines is required to satisfy its minimum withholding obligations with respect to such taxes.

8. Compliance with Code Section 409A. This Award is intended to comply with the requirements of Code section 409A or an exemption and will be interpreted accordingly. To the extent that distributions in payment of this Award represent a “deferral of compensation” within the meaning of Code section 409A, such distributions will conform to the applicable requirements of Code section 409A including, without limitation, the requirement that a distribution to a Participant who is a “specified employee” within the meaning of Code section 409A(a)(2)(B)(i) which is made on account of the specified employee’s Separation from Service will not be made before the date which is six (6) months after the date of Separation from Service. If such distribution is delayed pursuant to Code section 409A, the distribution will be paid within thirty (30) days after the end of the six-month period. If the Participant dies during such six-month period, any postponed amounts shall be paid within ninety (90) days of the Participant’s death. In no event shall the Participant, directly or indirectly, designate the calendar year of payment.

9. Miscellaneous.

(a) The Award does not confer on the Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time.

(b) The Company will not be required to deliver any shares of Common Stock upon vesting of the Performance Share Units until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

(c) All distributions under this Award shall be subject to any applicable clawback or recoupment policies, insider trading policies, policies prohibiting pledging or hedging of shares of Common Stock, and other polices that may be implemented by the Board from time to time.

(d) An original record of the Award and all the terms thereof, executed by the Company, will be held on file by the Company. To the extent there is any conflict between the terms contained in the Award Certificate and the terms contained in the original record held by the Company, the terms of the original record held by the Company will control.

(e) Definitions. In addition to the definitions set forth in the Plan, the following definitions will apply to this Award Certificate:

“Cause” means (i) an act or acts of personal dishonesty taken by the Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s willful, deliberate and continued failure to substantially perform for the Company the normal material duties related to Participant’s job position which are not remedied in a reasonable period of time after receipt of written notice from the Company, (iii) violation by the Participant of any of the Company’s policies, including, but not limited to, policies regarding sexual harassment, insider trading, confidentiality, non-disclosure, non-competition, non-disparagement, substance abuse and conflicts of interest and any other written policy of the Company, which violation could result in the termination of the Participant’s employment; or (iv) the conviction of the Participant of a felony.

“Change in Control” will have the meaning set forth in the Plan.

“Good Reason” means (i) a material diminution in the Participant’s base salary, or (ii) a material change in the geographic location at which the Participant must perform services (for this purpose, a requirement that the Participant’s services be performed at a location less than forty (40) miles from the location where the Participant previously performed services will not be considered a material change). In order for termination to be for Good Reason, within ninety (90) days after the occurrence of any of the events listed in clauses (i) or (ii) above, (x) the Participant must deliver written notice to the Company of his/her intention to terminate his/her employment for Good Reason specifying in reasonable detail the facts and circumstances deemed to give rise to the Participant’s right to terminate his/her employment for Good Reason, (y) the Company will not have cured such facts and circumstances within thirty (30) days after delivery of such notice by the Participant to the Company, and (z) the Participant must have a Separation from Service no later than thirty (30) days following the expiration of such thirty (30) day cure period.

“Retirement” will mean the retirement of an employee from employment with the Company and all affiliates on or after attaining age sixty five (65), or on or after attaining age fifty five (55) with a minimum of ten (10) years of service.

A copy of the Plan is available by request to the office of the Corporate Secretary.

Glatfelter Corporation

____________________________

By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge that I reviewed the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan.

Signature: ______________________________ Date:

Exhibit A

*******************************************************************************

Exhibit B

*******************************************************************************

Exhibit C

EX-10.7

GLATFELTER CORPORATION

Non-Employee Director Restricted Stock Unit Award Certificate

____________________________________________________________________________________

Award Number: _____-DIRRSU-01 Award Date: __________

Number of Restricted Stock Units: __________

Final Vesting Date: __________

THIS CERTIFIES THAT Glatfelter Corporation, a Pennsylvania corporation (the “Company”) has on the Award Date specified above granted to:

Name

(the “Participant”) an award (the “Award”) to receive that number of Restricted Stock Units (the “RSUs”) indicated above in the space labeled “Number of Restricted Stock Units,” each RSU representing the right to receive one share of the Company’s common stock (the “Common Stock”), subject to certain restrictions and on the terms and conditions contained in this Award Certificate and the Company’s 2022 Long-Term Incentive Plan (the “Plan”). In the event of any conflict betweenthetermsofthePlanandthisAwardCertificate,thetermsofthePlanshallprevail.Anycapitalized terms not defined herein shall have the meaning set forth in the Plan.

*** *

1.Rights of the Participant with Respect to the Restricted Stock Units.

a.No Shareholder Rights.The RSUs granted pursuant to the Award do not and shall not entitletheParticipanttoanyrightsofaholderofCommonStock.TherightsoftheParticipantwith respect to the RSUs shall remain forfeitable at all times prior to the date on which such rights become vested, and the restrictions with respect to the RSUs lapse, in accordance with Section 2 or 3.

a.Dividend Equivalents.During the period from the Award Date to the issuance of shares ofCommonStockaccordingtoSection1(c),theParticipantwillbecreditedwithdeemeddividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable after the Award Date, justasthoughtheParticipant,ontherecorddateforpaymentofthedividend,hadbeenthe holder

of record of shares of Common Stock equal to the number of RSUs represented by this Award Certificate. The Deemed Dividends will be converted to additional RSUs, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value of one share of Common Stock on the date the cash dividend to which it relates is paid. The Company will establish a bookkeeping record to account for the Deemed Dividends and additional RSUs to be credited to the Participant. The additional RSUs represented by Deemed Dividends are subject to the same vesting requirements as the Award.

a.Conversion of Restricted Stock Units; Issuance of Common Stock.NosharesofCommon Stock shall be issued to the Participant prior to the date on which the RSUs vest and the restrictions with respect to the RSUs lapse, in accordance with Section 2 or 3.Neither this Section 1(c) nor any action taken pursuant to or in accordance with this Section 1(c) shall be construed to create a trust ofany kind.After any restrictions with respect to RSUslapse pursuant to Section2or3,the Company shallcauseto beissued assoon aspracticablypossible,but innoevent later than thirty (30) days following the date all restrictions lapse (subject to Section 6(a)) in certificated or book- entry form, registered in the Participant’s name or in the name of the Participant’s legal representatives, beneficiaries or heirs, as the case may be, in payment for such RSUs that number of shares of Common Stock equal to the number of RSUs with respect to which the restrictions have lapsed.

1.Vesting.SubjecttoSection3,100%ofthetotalamountofRSUsawardedwillvest,andall restrictions with respect to the RSUs awarded shall lapse, on the Final Vesting Date, if the Participant continues to serve continuously as a director of the Company until the Final Vesting Date.

1.Forfeiture or Early Vesting Upon Ceasing to be a Director.

a.Removal as a Director for Cause.If,priortothevestingoftheRSUspursuanttoSection2, theParticipantisinvoluntarilyremovedasadirectoroftheCompanybyvoteoftheeithertheBoard of Directors or the shareholders of the Company for Cause, then all unvested RSUs shall be immediately and irrevocably forfeited.

a.Other Cessation of Service as a Director.IntheeventthattheParticipantshallceasetobe a director of the Company for any reason (including without limitation by reason of death or Disability)otherthanasdescribedinparagraph(a)above,andfurtherprovidedthatsuchcessation ofserviceasadirectoroftheCompanyisaSeparationfromService,thenallunvestedRSUsshall become immediately vested, and the restrictions with respect to such RSUs shall lapse.

a.Definition of Cause.For purposes of this Agreement, “Cause” shall mean (i) an act or acts of personal dishonesty taken by the Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s continued failure to substantially perform for the Company the normal material duties related to Participant’s position as a non-employee director of the Company, (iii) violation by the Participant of any of the Company’s policies applicable to non-employee directors of the Company, including, but not limited to, policies regarding insider trading, confidentiality,non-disclosure,non-disparagement,relatedpartytransactionsandconflicts of interest and any other written policy of the Company; or (iv) the convictionof the Participant of a felony.

1.Restriction on Transfer.The RSUs and any rights under the Award may not be sold, assigned, transferred,pledged,hypothecatedorotherwisedisposedofbytheParticipant,andanysuchpurportedsale, assignment, transfer, pledge, hypothecation or other disposition of RSUs or other rights under the Award shall be void and unenforceable against the Company and shall result in the immediate forfeiture of such RSUs and rights.Notwithstanding the foregoing, the Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant andreceiveanysharesofCommonStockissuedwithrespecttotheRSUsuponthedeathofthe Participant.

1.Tax Matters; Compliance with Code Section 409A.

a.DistributionsofCommonStockinpaymentforRSUsasdescribedhereinwhichrepresent a “deferral of compensation” within the meaning of Code section 409A shall conform to the applicable requirements of Code section 409A including, without limitation, the requirement that adistributiontotheParticipant,whoatthetimeofhisorherSeparationfromServiceasadirector is also a “specified employee” within the meaning of Code section 409A(a)(2)(B)(i), which is made onaccountoftheParticipant’sSeparationfromServiceshallnotbemadebeforethedatewhichis six(6)monthsafterthedateofSeparationfromService.However,distributionsasaforesaidshall not be deemed to be a “deferral of compensation” subject to Code section 409A to the extent providedintheexceptioninTreasuryRegulationSection1.409A-1(b)(4)forshort-termdeferrals.

a.In order to comply with all applicable federal, state and local tax laws or regulations, the Company may take such actionsas it deems appropriate to ensurethat all applicable federal, state and local payroll, withholding, income or other taxes are withheld or collected from the Participant.

a.In accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, the Participant may elect to satisfy the Participant’s federal, state and local tax withholding obligations, if any, arising from the receipt of the RSUs or the shares of Common Stock following the vesting of, or the lapse of restrictions relating to, the RSUs, by (i) delivering cash, check or money order payable tothe Company,or (ii)havingthe Company withhold aportion oftheshares of Common StockotherwisetobedeliveredhavingaFairMarketValueequaltotheamountofsuchtaxes.The Company will not deliver any fractional share of Common Stock but will instead round down to the next full number the amount of shares of Common Stock to be delivered.The Participant’s election must be made on or before the date that any such withholding obligation with respect to the RSUs arises.If the Participant fails to timely make such an election, the Company shall have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such taxes.

1.Miscellaneous.

a.TheAwarddoesnotconferontheParticipantanyrightwith respecttothecontinuanceof anyrelationshipwiththeCompanyoritssubsidiaries,norwillitinterfereinanywaywiththeright of the Company to terminate such relationship at any time.

a.The Company shall not be required to deliver any shares of Common Stock upon vesting of any RSUs until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

a.AnoriginalrecordoftheAwardandallthetermsthereof,executedbytheCompany,shall beheldonfilebytheCompany.Totheextentthereisanyconflictbetweenthetermscontainedin theAwardCertificateandthetermscontainedintheoriginalrecordheldbytheCompany,theterms of the original record held by the Company shall control.

A copy of the Plan is available upon request.

GLATFELTER CORPORATION

By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge receipt of the copy of the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan.

Signature: Date:

Name

EX-31.1

EX-31.1 2 glt-ex311_8.htm EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

I, Dante C. Parrini certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Glatfelter Corporation and subsidiaries (“Glatfelter”);

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.Glatfelter’s other certifying officer 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 Glatfelter 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 Glatfelter, 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 Glatfelter’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 Glatfelter’s internal control over financial reporting that occurred during Glatfelter’s most recent fiscal quarter (the fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Glatfelter's internal control over financial reporting.

5.Glatfelter’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Glatfelter’s auditors and the audit committee of Glatfelter’s board of directors (or persons performing similar 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 Glatfelter’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 Glatfelter’s internal control over financial reporting.

August 2, 2022

By	/s/ Dante C. Parrini
	Dante C. Parrini
	Chairman and Chief Executive Officer

EX-31.2

EX-31.2 3 glt-ex312_9.htm EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

I, Ramesh Shettigar, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Glatfelter Corporation and subsidiaries (“Glatfelter”);

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.Glatfelter’s other certifying officer 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 Glatfelter 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 Glatfelter, 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 Glatfelter’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 Glatfelter’s internal control over financial reporting that occurred during Glatfelter’s most recent fiscal quarter (the fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Glatfelter's internal control over financial reporting.

5.Glatfelter’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Glatfelter’s auditors and the audit committee of Glatfelter’s board of directors (or persons performing similar 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 Glatfelter’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 Glatfelter’s internal control over financial reporting.

August 2, 2022

By	/s/ Ramesh Shettigar
	Ramesh Shettigar
	Senior Vice President, Chief Financial Officer & Treasurer

EX-32.1

EX-32.1 4 glt-ex321_7.htm EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Glatfelter Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dante C. Parrini, Chairman and Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Glatfelter and will be retained by Glatfelter and furnished to the Securities and Exchange Commission or its staff upon request.

August 2, 2022

By	/s/ Dante C. Parrini
	Dante C. Parrini
	Chairman and Chief Executive Officer

EX-32.2

EX-32.2 5 glt-ex322_6.htm EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Glatfelter Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ramesh Shettigar Senior Vice President, Chief Financial Officer & Treasurer of the Company, certify to the best of my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Glatfelter and will be retained by Glatfelter and furnished to the Securities and Exchange Commission or its staff upon request.

August 2, 2022

By	/s/ Ramesh Shettigar
	Ramesh Shettigar
	Senior Vice President, Chief Financial Officer & Treasurer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity Address, Address Line One	4350 Congress Street
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28209
City Area Code	704
Local Phone Number	885-2555
Entity File Number	1-03560
Entity Registrant Name	Glatfelter Corporation
Entity Tax Identification Number	23-0628360
Entity Incorporation, State or Country Code	PA
Title of 12(b) Security	Common Stock
Trading Symbol	GLT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		44,774,912
Amendment Flag	false
Entity Central Index Key	0000041719
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net sales	$ 363,963	$ 244,911	$ 745,643	$ 470,585
Type of Revenue [Extensible List]	Net sales	Net sales	Net sales	Net sales
Costs of products sold	$ 326,566	$ 209,357	$ 676,581	$ 395,735
Type of Cost, Good or Service [Extensible List]	Net sales	Net sales	Net sales	Net sales
Gross profit	$ 37,397	$ 35,554	$ 69,062	$ 74,850
Selling, general and administrative expenses	28,400	28,984	61,566	51,811
Goodwill and other asset impairment charges	0	0	117,349	0
Loss (gains) on dispositions of plant, equipment and timberlands, net	73	(1,553)	(2,888)	(2,403)
Operating income (loss)	8,924	8,123	(106,965)	25,442
Non-operating income (expense)
Interest expense	(7,672)	(1,772)	(15,534)	(3,303)
Interest income	38	11	55	31
Other, net	(455)	(849)	(1,795)	(1,073)
Total non-operating expense	(8,089)	(2,610)	(17,274)	(4,345)
Income (loss) from continuing operations before income taxes	835	5,513	(124,239)	21,097
Income tax provision (benefit)	3,295	4,021	(13,489)	11,211
Income (loss) from continuing operations	(2,460)	1,492	(110,750)	9,886
Discontinued operations:
Income (loss) before income taxes	408	(82)	371	(82)
Income tax provision	0	0	0	0
Loss from discontinued operations	408	(82)	371	(82)
Net income (loss)	$ (2,052)	$ 1,410	$ (110,379)	$ 9,804
Basic earnings per share
Income (loss) from continuing operations (in dollars per share)	$ (0.05)	$ 0.03	$ (2.47)	$ 0.22
Income from discontinued operations (in dollars per share)	0.01	0	0.01	0
Basic earnings (loss) per share (in dollars per share)	(0.04)	0.03	(2.46)	0.22
Diluted earnings per share
Income (loss) from continuing operations (in dollars per share)	(0.05)	0.03	(2.47)	0.22
Income from discontinued operations (in dollars per share)	0.01	0	0.01	0
Diluted earnings (loss) per share (in dollars per share)	$ (0.04)	$ 0.03	$ (2.46)	$ 0.22
Weighted average shares outstanding
Basic (in shares)	44,841	44,563	44,775	44,507
Diluted (in shares)	44,841	44,872	44,775	44,865

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (2,052)	$ 1,410	$ (110,379)	$ 9,804
Foreign currency translation adjustments	(28,675)	3,846	(39,590)	(9,347)
Net change in:
Deferred gains (losses) on derivatives, net of taxes of $(2,029), $114, $(2,629) and $(1,187), respectively	8,534	(316)	8,177	2,945
Unrecognized retirement obligations, net of taxes of $(49), $(14), $(101) and $(87), respectively	152	150	304	242
Other comprehensive income (loss)	(19,989)	3,680	(31,109)	(6,160)
Comprehensive income (loss)	$ (22,041)	$ 5,090	$ (141,488)	$ 3,644

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Taxes on deferred gains (losses) on cash flow hedges	$ (2,029)	$ 114	$ (2,629)	$ (1,187)
Taxes on unrecognized retirement obligations	$ (49)	$ (14)	$ (101)	$ (87)

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 71,476	$ 138,436
Accounts receivable, net	209,455	170,212
Inventories	307,612	279,520
Prepaid expenses and other current assets	46,083	48,398
Total current assets	634,626	636,566
Plant, equipment and timberlands, net	690,228	758,812
Goodwill	168,288	236,165
Intangible assets, net	110,096	156,304
Other assets	94,052	92,760
Total assets	1,697,290	1,880,607
Liabilities and Shareholders' Equity
Current portion of long-term debt	22,117	26,437
Short-term debt	10,610	22,843
Accounts payable	208,181	214,015
Dividends payable	6,269	6,237
Environmental liabilities	2,200	2,200
Other current liabilities	78,143	99,438
Total current liabilities	327,520	371,170
Long-term debt	779,026	738,075
Deferred income taxes	63,025	87,285
Other long-term liabilities	137,797	141,315
Total liabilities	1,307,368	1,337,845
Commitments and contingencies	0	0
Shareholders’ equity
Common stock	544	544
Capital in excess of par value	62,555	64,779
Retained earnings	582,687	705,600
Accumulated other comprehensive loss	(111,413)	(80,304)
Shareholders' equity before treasury stock	534,373	690,619
Less cost of common stock in treasury	(144,451)	(147,857)
Total shareholders’ equity	389,922	542,762
Total liabilities and shareholders’ equity	$ 1,697,290	$ 1,880,607

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net income (loss)	$ (110,379)	$ 9,804
Loss (income) from discontinued operations, net of taxes	(371)	82
Adjustments to reconcile to net cash provided (used) by continuing operations:
Depreciation, depletion and amortization	34,936	28,466
Amortization of debt issue costs and original issue discount	963	309
Goodwill and other asset impairment charges	117,349	0
Inventory and accounts receivable charges	3,948	0
Deferred income tax expense (benefit)	(22,186)	616
Gains on dispositions of plant, equipment and timberlands, net	(2,888)	(2,403)
Share-based compensation	2,419	2,537
Change in operating assets and liabilities:
Accounts receivable	(52,936)	(11,533)
Inventories	(45,148)	(21,870)
Prepaid and other current assets	3,472	3,377
Accounts payable	9,516	(4,542)
Accruals and other current liabilities	(16,910)	(5,841)
Other	(1,320)	2,363
Net cash provided (used) by operating activities from continuing operations	(79,535)	1,365
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(22,697)	(11,211)
Proceeds from disposals of plant, equipment and timberlands, net	3,173	2,510
Acquisition, net of cash acquired	1,413	(172,331)
Other	(25)	(104)
Net cash used by investing activities from continuing operations	(18,136)	(181,136)
Financing activities
Proceeds from term loans	0	11,725
Repayment of term loans	(23,793)	(12,159)
Net borrowings under revolving credit facility	72,176	178,077
Payments of borrowing costs	(1,102)	(35)
Payments of dividends	(12,498)	(11,991)
Payments related to share-based compensation awards and other	(1,237)	(479)
Net cash provided by financing activities from continuing operations	33,546	165,138
Effect of exchange rate changes on cash	(3,587)	(1,432)
Net decrease in cash, cash equivalents and restricted cash	(67,712)	(16,065)
Decrease in cash, cash equivalents and restricted cash from discontinued operations	(231)	(238)
Cash, cash equivalents and restricted cash at the beginning of period	148,814	111,665
Cash, cash equivalents and restricted cash at the end of period	80,871	95,362
Less: restricted cash in Prepaid expenses and other current assets	(2,000)	(2,000)
Less: restricted cash in Other assets	(7,395)	(9,197)
Cash and cash equivalents at the end of period	71,476	84,165
Cash paid for:
Interest	15,879	2,920
Income taxes, net	$ 14,699	$ 7,098

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Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance at Dec. 31, 2020	$ 577,932	$ 544	$ 63,261	$ 723,365	$ (58,653)	$ (150,585)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	9,804			9,804
Other comprehensive income (loss)	(6,160)				(6,160)
Comprehensive income (loss)	3,644
Cash dividends declared	(12,235)			(12,235)
Share-based compensation expense	2,537		2,537
Delivery of treasury shares:
RSUs and PSAs	(633)		(3,002)			2,369
Ending balance at Jun. 30, 2021	$ 571,245	544	62,796	720,934	(64,813)	(148,216)
Delivery of treasury shares:
Common Stock, Dividends, Per Share, Declared	$ 0.275
Beginning balance at Mar. 31, 2021	$ 571,061	544	62,576	725,756	(68,493)	(149,322)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	1,410			1,410
Other comprehensive income (loss)	3,680				3,680
Comprehensive income (loss)	5,090
Cash dividends declared	(6,232)			(6,232)
Share-based compensation expense	1,329		1,329
Delivery of treasury shares:
RSUs and PSAs	(3)		(1,109)			1,106
Ending balance at Jun. 30, 2021	$ 571,245	544	62,796	720,934	(64,813)	(148,216)
Delivery of treasury shares:
Common Stock, Dividends, Per Share, Declared	$ 0.14
Beginning balance at Dec. 31, 2021	$ 542,762	544	64,779	705,600	(80,304)	(147,857)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(110,379)			(110,379)
Other comprehensive income (loss)	(31,109)				(31,109)
Comprehensive income (loss)	(141,488)
Cash dividends declared	(12,534)			(12,534)
Share-based compensation expense	2,419		2,419
Delivery of treasury shares:
RSUs and PSAs	(1,237)		(4,643)			3,406
Ending balance at Jun. 30, 2022	$ 389,922	544	62,555	582,687	(111,413)	(144,451)
Delivery of treasury shares:
Common Stock, Dividends, Per Share, Declared	$ 0.14
Beginning balance at Mar. 31, 2022	$ 416,733	544	61,873	591,012	(91,424)	(145,272)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(2,052)			(2,052)
Other comprehensive income (loss)	(19,989)				(19,989)
Comprehensive income (loss)	(22,041)
Cash dividends declared	(6,273)			(6,273)
Share-based compensation expense	1,510		1,510
Delivery of treasury shares:
RSUs and PSAs	(7)		(828)			821
Ending balance at Jun. 30, 2022	$ 389,922	$ 544	$ 62,555	$ 582,687	$ (111,413)	$ (144,451)
Delivery of treasury shares:
Common Stock, Dividends, Per Share, Declared	$ 0.14

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Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Per share amount of cash dividends declared (in dollars per share)	$ 0.14	$ 0.14	$ 0.14	$ 0.275

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Organization	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	ORGANIZATIONGlatfelter Corporation and subsidiaries ("Glatfelter") is a leading global supplier of engineered materials with a strong focus on innovation and sustainability. Glatfelter's high quality, technology-driven, innovative, and customizable nonwovens solutions can be found in products that are Enhancing Everyday Life®. These include personal care and hygiene products, food and beverage filtration, critical cleaning products, medical and personal protection, packaging products, as well as home improvement and industrial applications. Headquartered in Charlotte, NC, the Company’s 2021 net sales were $1.1 billion with approximately 3,250 employees worldwide. Glatfelter’s operations utilize a variety of manufacturing technologies including airlaid, wetlaid and spunlace with sixteen manufacturing sites located in the United States, Canada, Germany, the United Kingdom, France, Spain, and the Philippines. The Company has sales offices in all major geographies serving customers under the Glatfelter and Sontara brands. Additional information about Glatfelter may be found at www.glatfelter.com. The terms “we,” “us,” “our,” “the Company,” or “Glatfelter,” refer to Glatfelter Corporation and subsidiaries unless the context indicates otherwise.

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Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed you have read the audited consolidated financial statements included in our 2021 Annual Report on Form 10-K.

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

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

Inventories Our inventories are stated at the lower of cost or net realizable value. Raw materials, in-process and finished goods inventories are valued principally using the average-cost method.

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Acquisition

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisition

ACQUISITION

On May 13, 2021, we completed the acquisition of all the outstanding equity interests in Georgia-Pacific Mt. Holly LLC, Georgia-Pacific's U.S. nonwovens business ("Mount Holly") for $170.9 million. Mount Holly’s results are reported prospectively from the acquisition date as part of our Airlaid Materials segment.

On October 29, 2021, we completed the acquisition of PMM Holding (Luxembourg) AG, the owner of all of the equity interest in Jacob Holm, a global leading manufacturer of premium quality spunlace nonwoven fabrics for critical

cleaning, high-performance materials, personal care, hygiene and medical applications, for approximately $304.0 million for all outstanding shares and the extinguishment of Jacob Holm’s debt.

For the quarter ended June 30, 2022, we adjusted the preliminary purchase price allocation related to the Jacob Holm acquisition by reducing preacquistion compensation incentive accruals by approximately $0.5 million, and reducing goodwill by the same amount, based on incentive payouts made during the quarter.

The following table sets forth information related to the consideration exchanged for each acquisition.

In thousands	Mount Holly		Jacob Holm		Total
Total consideration	$	170,919	$	303,952	$	474,871
Less: Debt repaid	—		(148,000)		(148,000)
Cash consideration	$	170,919	$	155,952	$	326,871

The preliminary purchase price allocations set forth in the following table are based on all information available to us at the present time and is subject to change. With respect to the Mount Holly acquisition, the purchase price allocation is complete. However, the Jacob Holm purchase price allocation is preliminary as we are in the process of finalizing our analysis of certain matters, primarily related to the assessment of potential tax liabilities associated with the acquired entities. In the event new information becomes available, the measurement of the amount of goodwill reflected may be affected.

In thousands	Mount Holly		Jacob Holm		Total
Assets
Cash and cash equivalents	$	—	$	11,426	$	11,426
Accounts receivable	11,599		30,271		41,870
Inventory	7,031		45,340		52,371
Prepaid and other current assets	11		6,727		6,738
Plant, equipment and timberlands	100,498		158,612		259,110
Intangible assets	20,000		70,240		90,240
Goodwill	35,793		48,355		84,148
Other assets	8,041		26,929		34,970
Total assets	182,973		397,900		580,873
Liabilities
Short-term debt			14,081		14,081
Accounts payable	2,321		25,264		27,585
Other current liabilities	1,868		21,263		23,131
Other long-term liabilities	7,865		33,340		41,205
Total liabilities	12,054		93,948		106,002
Total preliminary purchase price	$	170,919	$	303,952	$	474,871

The preliminary purchase price allocations set forth in the table above are based on all information available to us at the present time and is subject to change. In the event new information becomes available, the measurement of the amount of goodwill reflected may be affected. For purposes of allocating the total purchase price, assets acquired and liabilities assumed are recorded at their estimated fair market values. The allocations set forth above are based on management’s estimate of the fair value using valuation techniques such as discounted cash flow models, appraisals and similar methodologies.

The following table sets forth information related to amounts of net sales and operating income (loss) of the acquired businesses included in our results of operations in the three and six months ended 2022:

	Three months ended June 30,		Six months ended June 30,
In thousands	2022		2022
Mount Holly
Net sales	$	26,300	$	53,604
Operating income	1,911		4,635
Jacob Holm
Net sales	96,917		193,304
Operating loss	(1,808)		(3,380)

The following table summarizes annual unaudited pro forma financial information as if the acquisition occurred as of January 1, 2021:

(unaudited)	Three months ended June 30,		Six months ended June 30,
In thousands, except per share	2021		2021
Pro forma
Net sales	$	347,895	$	690,448
Income (loss) from continuing operations	(10,546)		12,892

The pro forma financial information set forth above for the three and six months ended June 30, 2021 includes $3.7 million and $4.3 million, respectively, of one-time costs directly related to the Mount Holly transaction. Such costs are presented under the caption “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of income.

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Revenue

6 Months Ended

Jun. 30, 2022

Disaggregation of Revenue [Abstract]

Revenue

REVENUE

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Revenue by product category
Composite Fibers
Food & beverage	$	74,465	$	73,535	$	149,688	$	150,488
Wallcovering	9,902		24,182		25,733		46,811
Technical specialties	18,603		24,708		41,739		48,203
Composite laminates	11,570		10,549		22,867		20,358
Metallized	8,798		8,624		19,140		16,987
	123,338		141,598		259,167		282,847
Airlaid Materials
Feminine hygiene	56,943		47,184		116,255		94,825
Specialty wipes	37,908		21,371		75,003		37,287
Tabletop	26,771		17,188		57,518		24,051
Food pads	3,475		2,440		6,951		4,797
Home care	5,513		6,339		11,798		10,262
Adult incontinence	6,260		5,083		12,989		9,761
Other	6,838		3,708		12,658		6,755
	143,708		103,313		293,172		187,738
Spunlace
Consumer wipes	39,549		—		85,706		—
Critical cleaning	27,783		—		52,061		—
Health care	15,434		—		29,039		—
Hygiene	6,233		—		12,146		—
High performance	4,018		—		8,130		—
Beauty care	3,900		—		6,222		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Revenue by geography
Composite Fibers
Europe, Middle East and Africa	$	59,868	$	85,796	$	133,472	$	172,741
Americas	42,077		35,369		80,053		67,210
Asia Pacific	21,393		20,433		45,642		42,896
	123,338		141,598		259,167		282,847
Airlaid Materials
Europe, Middle East and Africa	63,355		49,552		126,491		94,624
Americas	77,608		52,031		158,521		89,516
Asia Pacific	2,745		1,730		8,160		3,598
	143,708		103,313		293,172		187,738
Spunlace
Europe, Middle East and Africa	30,245		—		60,070		—
Americas	54,985		—		110,469		—
Asia Pacific	11,687		—		22,765		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585

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Gains on Disposition of Plant, Equipment and Timberlands

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Gains on Disposition of Plant, Equipment and Timberlands

GAINS ON DISPOSITION OF PLANT, EQUIPMENT AND TIMBERLANDS

The following table sets forth sales of timberlands and other assets completed during the first six months of 2022 and 2021:

Dollars in thousands	Acres	Proceeds		Gain (loss)
2022
Timberlands	790	$	3,130	$	2,962
Other	n/a	43		(74)
Total		$	3,173	$	2,888
2021
Timberlands	936	$	2,510	$	2,403
Other	n/a	—		—
Total		$	2,510	$	2,403

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Goodwill and Other Asset Impairment

6 Months Ended

Jun. 30, 2022

Asset Impairment Charges [Abstract]

Goodwill and Other Asset Impairment

GOODWILL AND OTHER ASSET IMPAIRMENT

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

In thousands	Six months ended June 30,
Machinery and equipment	$	27,619
Technological know-how	18,443
Customer relationships	11,695
Tradename	3,530
Goodwill	56,062
Total	$	117,349

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

In addition, as a result of economic sanctions and disruptions to the financial markets, certain customers are not able to satisfy outstanding accounts receivables. As such, during the first six months of 2022, we recognized bad debt expense of approximately $2.9 million directly related to Russian and Ukrainian customers. Furthermore, during the first six months of 2022, we increased inventory reserves by approximately $1.0 million, primarily related to wallcover products.

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Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

For both the three and six months ended June 30, 2022, we recognized income of $0.4 million which primarily represents the successful appeal of a sales and use tax audit partially offset by legal costs. For 2021, the $0.1 million loss is primarily related to legal costs.

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

	Six months ended June 30,
In thousands	2022		2021
Net cash used by operating activities	$	(231)	$	(238)
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(231)	$	(238)

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Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

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

	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2022		2021		2022		2021
Income (loss) from continuing operations	$	(2,460)	$	1,492	$	(110,750)	$	9,886
Weighted average common shares outstanding used in basic EPS	44,841		44,563		44,775		44,507
Common shares issuable upon exercise of dilutive stock options  and PSAs / RSUs	—		309		—		358
Weighted average common shares outstanding and common share  equivalents used in diluted EPS	44,841		44,872		44,775		44,865
Earnings (loss) per share from continuing operations
Basic	$	(0.05)	$	0.03	$	(2.47)	$	0.22
Diluted	(0.05)		0.03		(2.47)		0.22

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

	Three months ended June 30,		Six months ended June 30,
In thousands	2022	2021	2022	2021
Potential common shares	934	1,082	934	1,082

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and six months ended June 30, 2022 and 2021.

In thousands	Currency translation adjustments		Unrealized gain (loss) on derivatives		Change in pensions		Change in other postretirement defined benefit plans		Total
Balance at April 1, 2022	$	(80,672)	$	1,631	$	(11,356)	$	(1,027)	$	(91,424)
Other comprehensive income (loss) before reclassifications (net of tax)	(28,675)		9,760		—		—		(18,915)
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		(1,226)		126		26		(1,074)
Net current period other comprehensive income (loss)	(28,675)		8,534		126		26		(19,989)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at April 1, 2021	$	(55,718)	$	765	$	(12,706)	$	(834)	$	(68,493)
Other comprehensive income (loss) before reclassifications (net of tax)	3,846		(341)		—		—		3,505
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		25		197		(47)		175
Net current period other comprehensive income (loss)	3,846		(316)		197		(47)		3,680
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)
Balance at January 1, 2022	$	(69,757)	$	1,988	$	(11,482)	$	(1,053)	$	(80,304)
Other comprehensive income (loss) before reclassifications (net of tax)	(39,590)		10,143		—		—		(29,447)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,966)		252		52		(1,662)
Net current period other comprehensive income (loss)	(39,590)		8,177		252		52		(31,109)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at January 1, 2021	$	(42,525)	$	(2,496)	$	(12,844)	$	(788)	$	(58,653)
Other comprehensive income (loss) before reclassifications (net of tax)	(9,347)		2,933		—		—		(6,414)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		12		335		(93)		254
Net current period other comprehensive income (loss)	(9,347)		2,945		335		(93)		(6,160)
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Description									Line Item in Statements of Income
Cash flow hedges (Note 18)
Loss (gains) on cash flow hedges	$	(1,697)	$	33	$	(2,769)	$	57	Costs of products sold
Tax expense (benefit)	480		(22)		792		(73)		Income tax provision
Net of tax	(1,217)		11		(1,977)		(16)
Loss (gains) on interest rate swaps	(9)		22		11		43		Interest expense
Tax benefit	—		(8)		—		(15)		Income tax provision
Net of tax	(9)		14		11		28
Total cash flow hedges	(1,226)		25		(1,966)		12
Retirement plan obligations (Note 11)
Amortization of deferred benefit pension plans
Prior service costs	11		12		22		24		Other, net
Actuarial losses	164		199		331		398		Other, net
	175		211		353		422
Tax benefit	(49)		(14)		(101)		(87)		Income tax provision
Net of tax	126		197		252		335
Amortization of deferred benefit other plans
Prior service costs (credits)	26		(59)		52		(117)		Other, net
Actuarial losses	—		12		—		24		Other, net
	26		(47)		52		(93)
Tax expense	—		—		—		—		Income tax provision
Net of tax	26		(47)		52		(93)
Total reclassifications, net of tax	$	(1,074)	$	175	$	(1,662)	$	254

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

On May 5, 2022, upon Board and shareholder approval, the Glatfelter Corporation 2022 Long-Term Incentive Plan became effective and is a successor plan to the P. H. Glatfelter Amended and Restated Long-Term Incentive Plan (collectively, the “LTIP”). The LTIP continues to provide for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units. Furthermore, the LTIP increases the number shares previously available for issuance by 1,400,000 shares. As of June 30, 2022, there were 2,670,523 shares of common stock available for future issuance under the LTIP.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units (“RSUs”), performance share awards (“PSAs”) and stock-only stock appreciation rights.

In 2022, we issued awards to employees of RSUs and PSAs under our LTIP. In 2022, 40% of fair value of the awards granted were RSUs, which vest based on the passage of time, generally over a graded three-year period or, in certain instances, the RSUs were cliff vesting after one or three years. In addition, some awards vest over one year or less depending upon the retirement eligibility of the grantees in the LTIP. The remaining 60% of the fair value of the awards granted in 2022 were PSAs. The PSAs awarded in 2022 vest based on either the achievement of cumulative financial performance targets covering a two-year period or based on the three-year total shareholder return relative to a broad market index. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For RSUs, the grant date fair value of the awards, or the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. For PSAs, the grant date fair value is estimated using a lattice model. The significant inputs include the stock price, volatility, dividend yield, and risk-free rate of return. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury.

The following table summarizes RSU and PSA activity during periods indicated:

Units	2022	2021
Balance at January 1,	1,111,382	1,071,652
Granted	718,668	352,763
Forfeited	(215,656)	(98,012)
Shares delivered	(305,739)	(196,637)
Balance at June 30,	1,308,655	1,129,766

The amount granted in 2022 and 2021 includes 341,429 and 162,480, respectively, of PSAs exclusive of reinvested dividends.

The following table sets forth aggregate RSU and PSA compensation expense included in continuing operations for the periods indicated:

	June 30,
In thousands	2022		2021
Three months ended	$	1,509	$	1,329
Six months ended	$	2,418	$	2,537

Stock-Only Stock Appreciation Rights (“SOSARs”) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. All SOSARs are vested and have a term of ten years. No SOSARs were awarded since 2016.

The following table sets forth information related to outstanding SOSARs:

	2022			2021
	Shares	Wtd Avg Exercise Price		Shares	Wtd Avg Exercise Price
Outstanding at January 1,	1,079,113	$	20.42	1,082,413	$	20.40
Granted	—	—		—	—
Exercised	—	—		—	—
Canceled / forfeited	(145,440)	15.61		—	—
Outstanding at June 30,	933,673	$	21.17	1,082,413	$	20.40

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Retirement Plans and Other Post-Retirement Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Retirement Plans and Other Post-Retirement Benefits

RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITSThe following tables provide information with respect to the net periodic costs of our pension and post-retirement medical benefit plans included in continuing operations.

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Pension Benefits
Service cost	$	—	$	—	$	—	$	—
Interest cost	179		273		414		523
Amortization of prior service cost	11		12		22		24
Amortization of actuarial loss	164		199		331		398
Total net periodic benefit expense	$	354	$	484	$	767	$	945
Other Benefits
Service cost	$	—	$	7	$	—	$	14
Interest cost	32		32		65		64
Amortization of prior service cost (credit)	26		(59)		52		(117)
Amortization of actuarial loss	—		12		—		24
Total net periodic benefit expense (income)	$	58	$	(8)	$	117	$	(15)

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income taxes are recognized for the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our condensed consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

For the six months ended June 30, 2022, we had pretax loss from continuing operations of $124.2 million and income tax benefit of $13.5 million. The income tax benefit includes $19.2 million of deferred tax benefit associated with the asset impairment charge and related bad debt and inventory reserves (refer to Note 6). Absent these charges, the Company had pre-tax loss of $2.9 million and income tax expense of $5.7 million, which was unfavorably impacted by the jurisdictional mix of pretax results among the Company and its subsidiaries, primarily by the pretax losses in the U.S. which generated no tax benefit.

For the six months ended June 30, 2022, we recorded an increase in our federal valuation allowance of $4.5 million against our net deferred tax assets. In assessing the need for a valuation allowance, management considers all available positive and negative evidence in its analysis. Based on this analysis, we recorded a valuation allowance for the portion of deferred tax assets where the weight of the evidence indicated it is more likely than not that the deferred assets will not be realized.

As of June 30, 2022 and December 31, 2021, we had $56.8 million and $55.7 million, respectively, of gross unrecognized tax benefits. As of June 30, 2022, if such benefits were to be recognized, approximately $53.0 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

The amount of income taxes we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Management performs a comprehensive review of its global tax positions on a

quarterly basis and accrues amounts for uncertain tax positions. Based on these reviews and the result of discussions and resolutions of matters with certain tax authorities and the closure of tax years subject to tax audit, reserves are adjusted as necessary. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are determined or resolved or as such statutes are closed. Due to potential for resolution of federal, state and foreign examinations, and the lapse of various statutes of limitation, it is reasonably possible our gross unrecognized tax benefits balance may decrease within the next twelve months by a range of zero to $1.7 million. We recognize interest and penalties related to uncertain tax positions as income tax expense.

The following table summarizes information included in continuing operations related to interest on uncertain tax positions:

	Six months ended June 30,
In millions	2022		2021
Interest expense	$	0.8	$	0.4

	June 30, 2022		December 31, 2021
Accrued interest payable	$	4.7	$	3.9
Accrued penalties	3.0		3.0

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Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories, net of reserves, were as follows:

In thousands	June 30, 2022		December 31, 2021
Raw materials	$	100,129	$	87,448
In-process and finished	153,224		139,058
Supplies	54,259		53,014
Total	$	307,612	$	279,520

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETSThe following table sets forth changes in the amounts of goodwill and other intangible assets recorded by each of our segments during the periods indicated:

In thousands	December 31, 2021		Impairment		Purchase price allocation adjustment		Translation		June 30, 2022
Goodwill
Composite Fibers	$	78,438	$	(56,062)	$	—	$	(1,968)	$	20,408
Airlaid Materials	109,486		—		—		(6,105)		103,381
Spunlace	48,241		—		(500)		(3,242)		44,499
Total	$	236,165	$	(56,062)	$	(500)	$	(11,315)	$	168,288
Other Intangible Assets	December 31, 2021		Impairment		Amortization		Translation		June 30, 2022
Composite Fibers
Tradename - non-amortizing	$	3,601	$	(3,530)	$	—	$	(71)	$	—
Technology and related	38,614		(37,823)		—		(791)		—
Accumulated amortization	(19,224)		19,380		(424)		268		—
Net	19,390		(18,443)		(424)		(523)		—
Customer relationships and related	34,739		(34,046)		—		(693)		—
Accumulated amortization	(22,104)		22,351		(587)		340		—
Net	12,635		(11,695)		(587)		(353)		—
Airlaid Materials
Tradename	4,485		—		—		(1,133)		3,352
Accumulated amortization	(603)		—		(88)		63		(628)
Net	3,882		—		(88)		(1,070)		2,724
Technology and related	17,825		—		—		(756)		17,069
Accumulated amortization	(4,552)		—		(587)		387		(4,752)
Net	13,273		—		(587)		(369)		12,317
Customer relationships and related	44,585				—		(2,038)		42,547
Accumulated amortization	(10,512)		—		(1,864)		895		(11,481)
Net	34,073		—		(1,864)		(1,143)		31,066
Spunlace
Products and Tradenames	27,623				—		(1,638)		25,985
Accumulated amortization	(253)		—		(801)		343		(711)
Net	27,370		—		(801)		(1,295)		25,274
Technology and related	14,547				—		(862)		13,685
Accumulated amortization	(202)		—		(676)		335		(543)
Net	14,345		—		(676)		(527)		13,142
Customer relationships and related	28,003				—		(1,660)		26,343
Accumulated amortization	(268)		—		(846)		344		(770)
Net	27,735		—		(846)		(1,316)		25,573
Total intangibles	214,022		(75,399)		—		(9,642)		128,981
Total accumulated amortization	(57,718)		41,731		(5,873)		2,975		(18,885)
Net intangibles	$	156,304	$	(33,668)	$	(5,873)	$	(6,667)	$	110,096

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Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

LEASES

We enter into a variety of arrangements in which we are the lessee for the use of automobiles, forklifts and other production equipment, production facilities, warehouses, office space and land. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the condensed consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We do not have any finance leases.

Operating lease right of use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. For purposes of recording the lease arrangement, the term of lease may include options to extend or terminate when we are reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The following table sets forth information related to our leases as of the periods indicated.

Dollars in thousands	June 30, 2022			December 31, 2021
Right of use asset	$	26,275		$	27,186
Weighted average discount rate	2.97		%	3.31		%
Weighted average remaining maturity (years)	21.2			26.0

The following table sets forth operating lease expense for the periods indicated:

	Six months ended June 30,
In thousands	2022		2021
Three months ended	$	1,499	$	1,452
Six months ended	$	2,920	$	2,799

The following table sets forth required remaining future minimum lease payments during the years indicated:

In thousands
2022	$	2,988
2023	3,606
2024	2,742
2025	2,350
2026	2,270
Thereafter	22,416

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Long-Term Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-term debt is summarized as follows:

In thousands	June 30, 2022		December 31, 2021
Revolving credit facility, due Sep 2026	$	81,161	$	10,000
4.750% Senior Notes, due Oct 2029	500,000		500,000
Term loan, due Feb 2024	194,237		218,026
2.40% Term Loan, due Jun 2022	—		809
2.05% Term Loan, due Mar 2023	4,158		7,556
1.30% Term Loan, due Jun 2023	1,484		2,427
1.55% Term Loan, due Sep 2025	4,137		5,204
1.10% Term Loan, due Mar 2024	6,610		9,267
0.57% Term Loan, due Jul 2023	20,774		22,652
Total long-term debt	812,561		775,941
Less current portion	(22,117)		(26,437)
Unamortized deferred issuance costs	(11,418)		(11,429)
Long-term debt, net of current portion	$	779,026	$	738,075

On September 2, 2021, we entered into a restatement agreement as part of a Fourth Amended and Restated $400 million Revolving Credit Facility and a €220.0 million Term Loan (collectively, the “Credit Agreement”) which matures September 6, 2026 and February 8, 2024, respectively.

On May 9, 2022, we entered into an amendment to the Credit Agreement. The amendment: i) increases the permitted maximum ratio of consolidated total net debt to consolidated adjusted EBITDA (“leverage ratio”); ii) increases the maximum interest rate borrowing margin to be applied to the applicable index by 25 basis points; and iii) pledges as collateral substantially all domestic assets to secure obligations owed under the Credit Agreement. As amended, we are obligated to maintain a maximum ratio of consolidated total net debt to consolidated adjusted EBITDA of 6.75 to 1.0 until the quarter ended December 31, 2023, after which the maximum leverage ratio steps down to 4.0 to 1.0.

The Credit Agreement also contains covenants requiring a minimum interest coverage ratio and provisions limiting our ability to, among other things, (i) incur debt and guaranty obligations, (ii) incur liens, (iii) make loans, advances, investments and acquisitions, (iv) merge or liquidate, (v) sell or transfer assets, (vi) incur additional indebtedness

As of June 30, 2022, the leverage ratio calculated in accordance with the definition in our Credit Agreement was 5.3x. A breach of these requirements would give rise to certain remedies under the Revolving Credit Agreement, among which are the termination of the agreement and the repayment of the outstanding borrowings plus accrued and unpaid interest under the Credit Agreement.

Glatfelter Corporation guarantees all debt obligations of its subsidiaries. All such obligations are recorded in these condensed consolidated financial statements.

Letters of credit issued to us by certain financial institutions totaled $6.7 million as of June 30, 2022 and December 31, 2021. The letters of credit, which reduce amounts available under our Revolving Credit Facility, primarily provide financial assurances for the benefit of certain state workers compensation insurance agencies in conjunction with our self-insurance program and for performance of certain remediation activity related to the Fox River matter. We bear the credit risk on this amount to the extent that we do not comply with the provisions of certain agreements. No amounts are outstanding under the letters of credit.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The amounts reported on the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximate their respective fair value. The following table sets forth carrying value and fair value of long-term debt:

	June 30, 2022				December 31, 2021
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	81,161	$	81,161	$	10,000	$	10,000
4.750% Senior Notes, due Oct. 2029	500,000		348,750		500,000		516,875
Term loan, due Feb. 2024	194,237		194,237		218,026		218,026
2.40% Term Loan	—		—		809		813
2.05% Term Loan	4,158		4,162		7,556		7,616
1.30% Term Loan	1,484		1,477		2,427		2,433
1.55% Term Loan	4,137		4,047		5,204		5,234
1.10% Term Loan	6,610		6,514		9,267		9,252
0.57% Term Loan	20,774		20,484		22,652		22,657
Total	$	812,561	$	660,832	$	775,941	$	792,906

The values set forth above are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 18.

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Financial Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives and Hedging Activities

FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES

As part of our overall risk management practices, we enter into financial derivatives primarily designed to either i) hedge foreign currency risks associated with forecasted transactions (“cash flow hedges”); ii) mitigate the impact that changes in currency exchange rates have on intercompany financing transactions and foreign currency denominated receivables and payables (“foreign currency hedges”); or iii) convert variable-interest-rate debt to fixed rates.

Derivatives Designated as Hedging Instruments - Cash Flow Hedges We use currency forward contracts as cash flow hedges to manage our exposure to fluctuations in the currency exchange rates on certain forecasted production costs. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date. As of June 30, 2022, the maturity of currency forward contracts ranged from one month to 18 months.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases, certain production costs or capital expenditures with exposure to changes in foreign currency exchange rates. Changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk is deferred as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets. With respect to hedges of forecasted raw material purchases or production costs, the amount deferred is subsequently reclassified into costs of products sold in the period that, inventory produced using the hedged transaction, affects earnings. For hedged capital expenditures, deferred gains or losses are reclassified and included in the historical cost of the capital asset and subsequently affect earnings as depreciation is recognized.

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
Euro / British Pound	22,083	18,823
U.S. Dollar / British Pound	27,221	16,205
U.S. Dollar / Euro	3,402	658
Sell/Buy - buy notional
Euro / Philippine Peso	965,540	896,291
British Pound / Philippine Peso	1,303,213	1,121,183
Euro / U.S. Dollar	107,614	108,467
U.S. Dollar / Canadian Dollar	36,493	36,904

On June 15, 2022, we terminated a €180 million notional value floating-to-fixed interest rate swap agreement with certain financial institutions that was entered into in October 2019 and was to mature in December 2022. During the life of the swap, we paid a fixed interest rate of the applicable margin plus 0.0395% on €180 million of the underlying variable rate term loan. We received the greater of 0.00% or EURIBOR. At termination, we recognized a deferred gain of $0.4 million that will be amortized into interest expense through December 2022.

Derivatives Designated as Hedging Instruments – Net Investment Hedge The €220 million Term Loan discussed in Note 16 – “Long-Term Debt” is designated as a net investment hedge of our Euro functional currency foreign subsidiaries. During the first six months of 2022 and 2021, we recognized a pre-tax gain of $15.7 million and $7.8 million, respectively, on the remeasurement of the term loan from changes in currency exchange rates. Such amounts are recorded as a component of Other Comprehensive Income (Loss).

On March 3, 2022, we entered into cross-currency swaps with an aggregate notional value of $150.0 million. Pursuant to the terms of the swaps, we agreed to receive 4.750% interest denominated in U.S. dollars and we agreed to pay 3.06% interest denominated in euros. Interest is paid semi-annually on May 15 and November 15 and the swaps mature on May 15, 2025. We designated the cross-currency swaps as a hedge of our net investment in certain euro functional currency subsidiaries.

Derivatives Not Designated as Hedging Instruments - Foreign Currency Hedges We also entered into forward foreign exchange contracts to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities. None of these contracts are designated as hedges for financial accounting purposes and, accordingly, changes in value of the foreign exchange forward contracts and in the offsetting underlying on-balance-sheet transactions are reflected in the accompanying condensed consolidated statements of income under the caption “Other, net.”

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound	29,450	26,600
British Pound / Euro	2,800	3,400
U.S. Dollar / Swiss Franc	7,960	2,180
British Pound / Swiss Franc	2,290	1,025
Euro / Swiss Franc	6,520	2,750
Euro / U.S. Dollar	6,400	11,000
Sell/Buy - buy notional
Euro / U.S. Dollar	2,700	20,900
British Pound / Euro	15,300	5,300

These contracts have maturities of one month from the date originally entered into.

Fair Value Measurements The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	7,151	$	3,197	$	2,037	$	288
Interest rate swap	—		—		—		44
Not designated as hedging:
Forward foreign currency exchange contracts	$	822	701		$	1,124	$	116

The amounts set forth in the table above represent the net asset or liability giving effect to rights of offset with each counterparty. The effect of netting the amounts presented above did not have a material effect on our consolidated financial position.

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The fair values of the foreign exchange forward contracts are considered to be Level 2. Foreign currency forward contracts are valued using foreign currency forward and interest rate curves. The fair value of each contract is determined by comparing the contract rate to the forward rate and discounting to present value. Contracts in a gain position are recorded in the condensed consolidated balance sheets under the caption “Prepaid expenses and other current assets” and the value of contracts in a loss position is recorded under the caption “Other current liabilities.”

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Designated as hedging:
Forward foreign currency exchange contracts:
Cost of products sold	$	(1,697)	$	(33)	$	(2,769)	$	(57)
Interest expense	(9)		22		11		43
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	1,289	$	433	$	1,729	$	703

The impact of activity not designated as hedging was substantially all offset by the remeasurement of the underlying on-balance-sheet item.

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income (loss), before taxes, is as follows:

In thousands	2022		2021
Balance at January 1,	$	2,889	$	(3,460)
Deferred gains on cash flow hedges	6,565		4,117
Reclassified to earnings	(2,758)		14
Balance at June 30,	$	6,696	$	671

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be recorded in results of operations within the next 12 to 18 months and the amount ultimately recognized will vary depending on actual market rates.

Credit risk related to derivative activity arises in the event the counterparty fails to meet its obligations to us. This exposure is generally limited to the amounts, if any, by which the counterparty’s obligations exceed our obligation to them. Our policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings.

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Commitments, Contingencies and Legal Proceedings

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Proceedings

COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River - Neenah, Wisconsin

Background We have previously reported that we face liabilities associated with environmental claims arising out of the presence of polychlorinated biphenyls (“PCBs”) in sediments in the lower Fox River, on which our former Neenah facility was located, and in the Bay of Green Bay, Wisconsin (collectively, the “Site”). Since the early 1990s, the United States, the State of Wisconsin and two Indian tribes (collectively, the “Governments”) have pursued a cleanup of a 39-mile stretch of river from Little Lake Butte des Morts into Green Bay and natural resource damages (“NRDs”). The United States originally notified several entities that they were potentially responsible parties (“PRPs”); however, after giving effect to settlements reached with the Governments, the remaining PRPs exposed to continuing obligations to implement the remainder of the cleanup consist of us, Georgia-Pacific Consumer Products, L.P. (“Georgia-Pacific”) and NCR Corporation. The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream portion of the Site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

Over the past several years, we and certain other PRPs completed all remedial actions pursuant to applicable consent decrees or a Unilateral Administrative Order. In January 2019, we reached an agreement with the United States, the State of Wisconsin, and Georgia-Pacific to resolve all remaining claims among those parties. Under the Glatfelter consent decree, we are primarily responsible for long-term monitoring and maintenance in OU2-OU4a and for reimbursement of government oversight costs paid after October 2018. Finally, we remain responsible for our obligation to continue long-term monitoring and maintenance under our OU1 consent decree.

Cost estimates Our remaining obligations under the OU1 consent decree consist of long-term monitoring and maintenance. Furthermore, we are primarily responsible for long-term monitoring and maintenance in OU2-OU4a over a period of at least 30 years. The monitoring activities consist of, among others, testing fish tissue, sampling water quality and sediment, and inspections of the engineered caps. In 2018, we entered into a fixed-price, 30-year agreement with a third party for the performance of all of our monitoring and maintenance obligations in OU1 through OU4a with limited

exceptions, such as, for extraordinary amounts of cap maintenance or replacement. Our obligation under this agreement is included in our total reserve for the Site. We are obligated to make the regular payments under that fixed-price contract until the remaining amount due is less than the OU1 escrow account balance. We are permitted to pay for this contract using the remaining balance of the escrow account established by us and WTM I Company (“WTM I”) another PRP, under the OU1 consent decree during any period that the balance in the escrow account exceeds the amount due under our fixed-price contract. As of June 30, 2022, the balance in the escrow is less than amounts due under the fixed-price contract by approximately $1.3 million. Our obligation to pay this difference is secured by a letter of credit.

At June 30, 2022, the escrow account balance totaled $8.7 million which is included in the condensed consolidated balance sheet under the caption “Other assets.”

Under the consent decree, we are responsible for reimbursement of government oversight costs paid from October 2018 and later over approximately the next 30 years. We anticipate that oversight costs will decline as activities at the site have transitioned from remediation to long-term monitoring and maintenance.

Reserves for the Site Our reserve for past and future government oversight costs and long-term monitoring and maintenance totaled $14.8 million at June 30, 2022, of which $2.2 million is recorded in the accompanying June 30, 2022 condensed consolidated balance sheet under the caption “Environmental liabilities” and the remaining $12.6 million is recorded under the caption “Other long-term liabilities.”

Range of Reasonably Possible Outcomes Based on our analysis of all available information, including but not limited to decisions of the courts, official documents such as records of decision, discussions with legal counsel, cost estimates for future monitoring and maintenance and other post-remediation costs to be performed at the Site, we do not believe that our costs associated with the Fox River matter could exceed the aggregate amounts accrued by a material amount.

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Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The following tables set forth financial and other information by segment for the period indicated:

	Three months ended June 30,				Six months ended June 30,
Dollars in thousands	2022		2021		2022		2021
Net Sales
Composite Fibers	$	123,338	$	141,598	$	259,167	$	282,847
Airlaid Material	143,708		103,313		293,172		187,738
Spunlace	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Operating income (loss)
Composite Fibers	$	5,779	$	11,063	$	5,444	$	27,128
Airlaid Material	11,944		8,431		24,165		15,628
Spunlace	(1,808)		—		(3,380)		—
Other and unallocated	(6,991)		(11,371)		(133,194)		(17,314)
Total	$	8,924	$	8,123	$	(106,965)	$	25,442
Depreciation and amortization
Composite Fibers	$	4,796	$	7,000	$	11,315	$	13,981
Airlaid Material	7,542		6,767		15,171		12,615
Spunlace	2,945		—		5,859		—
Other and unallocated	1,169		966		2,591		1,870
Total	$	16,452	$	14,733	$	34,936	$	28,466
Capital expenditures
Composite Fibers	$	4,131	$	2,882	$	10,258	$	5,655
Airlaid Material	2,064		1,297		5,532		3,036
Spunlace	1,801		—		3,886		—
Other and unallocated	2,353		1,653		3,021		2,520
Total	10,349		5,832		$	22,697	$	11,211
Tons shipped (metric)
Composite Fibers	24,246		34,471		52,457		68,611
Airlaid Material	40,681		34,315		83,733		63,179
Spunlace	19,358		—		40,094		—
Total	84,285		68,786		176,284		131,790

Segments Results of individual operating segments are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to accounting principles generally accepted in the United States of America; therefore, the financial results of individual segments are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the segments. Methodologies are refined from time to time as management accounting practices are enhanced and businesses change. The costs incurred by support areas not directly aligned with the segment are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the table set forth above.

Management evaluates results of operations of the operating segments before certain corporate level costs and the effects of certain gains or losses not considered to be related to the core business operations. Management believes that this is a more meaningful representation of the operating performance of its core businesses, the profitability of the segments

and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” In the evaluation of operating segments results, management does not use any measures of total assets. This presentation is aligned with the management and operating structure of our company. It is also on this basis that the Company’s performance is evaluated internally and by the Company’s Board of Directors.

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Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

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

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed you have read the audited consolidated financial statements included in our 2021 Annual Report on Form 10-K.

Discontinued Operations

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

Accounting Estimates

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

Inventories

Inventories Our inventories are stated at the lower of cost or net realizable value. Raw materials, in-process and finished goods inventories are valued principally using the average-cost method.

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table sets forth information related to the consideration exchanged for each acquisition.

In thousands	Mount Holly		Jacob Holm		Total
Total consideration	$	170,919	$	303,952	$	474,871
Less: Debt repaid	—		(148,000)		(148,000)
Cash consideration	$	170,919	$	155,952	$	326,871

The following table sets forth information related to amounts of net sales and operating income (loss) of the acquired businesses included in our results of operations in the three and six months ended 2022:

	Three months ended June 30,		Six months ended June 30,
In thousands	2022		2022
Mount Holly
Net sales	$	26,300	$	53,604
Operating income	1,911		4,635
Jacob Holm
Net sales	96,917		193,304
Operating loss	(1,808)		(3,380)

Schedule of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The preliminary purchase price allocations set forth in the following table are based on all information available to us at the present time and is subject to change. With respect to the Mount Holly acquisition, the purchase price allocation is complete. However, the Jacob Holm purchase price allocation is preliminary as we are in the process of finalizing our analysis of certain matters, primarily related to the assessment of potential tax liabilities associated with the acquired entities. In the event new information becomes available, the measurement of the amount of goodwill reflected may be affected.

In thousands	Mount Holly		Jacob Holm		Total
Assets
Cash and cash equivalents	$	—	$	11,426	$	11,426
Accounts receivable	11,599		30,271		41,870
Inventory	7,031		45,340		52,371
Prepaid and other current assets	11		6,727		6,738
Plant, equipment and timberlands	100,498		158,612		259,110
Intangible assets	20,000		70,240		90,240
Goodwill	35,793		48,355		84,148
Other assets	8,041		26,929		34,970
Total assets	182,973		397,900		580,873
Liabilities
Short-term debt			14,081		14,081
Accounts payable	2,321		25,264		27,585
Other current liabilities	1,868		21,263		23,131
Other long-term liabilities	7,865		33,340		41,205
Total liabilities	12,054		93,948		106,002
Total preliminary purchase price	$	170,919	$	303,952	$	474,871

Schedule of Unaudited Pro Forma Financial Information

The following table summarizes annual unaudited pro forma financial information as if the acquisition occurred as of January 1, 2021:

(unaudited)	Three months ended June 30,		Six months ended June 30,
In thousands, except per share	2021		2021
Pro forma
Net sales	$	347,895	$	690,448
Income (loss) from continuing operations	(10,546)		12,892

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Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Disaggregation of Revenue [Abstract]

Schedule of Disaggregated Information Pertaining to Net Sales

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Revenue by product category
Composite Fibers
Food & beverage	$	74,465	$	73,535	$	149,688	$	150,488
Wallcovering	9,902		24,182		25,733		46,811
Technical specialties	18,603		24,708		41,739		48,203
Composite laminates	11,570		10,549		22,867		20,358
Metallized	8,798		8,624		19,140		16,987
	123,338		141,598		259,167		282,847
Airlaid Materials
Feminine hygiene	56,943		47,184		116,255		94,825
Specialty wipes	37,908		21,371		75,003		37,287
Tabletop	26,771		17,188		57,518		24,051
Food pads	3,475		2,440		6,951		4,797
Home care	5,513		6,339		11,798		10,262
Adult incontinence	6,260		5,083		12,989		9,761
Other	6,838		3,708		12,658		6,755
	143,708		103,313		293,172		187,738
Spunlace
Consumer wipes	39,549		—		85,706		—
Critical cleaning	27,783		—		52,061		—
Health care	15,434		—		29,039		—
Hygiene	6,233		—		12,146		—
High performance	4,018		—		8,130		—
Beauty care	3,900		—		6,222		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Revenue by geography
Composite Fibers
Europe, Middle East and Africa	$	59,868	$	85,796	$	133,472	$	172,741
Americas	42,077		35,369		80,053		67,210
Asia Pacific	21,393		20,433		45,642		42,896
	123,338		141,598		259,167		282,847
Airlaid Materials
Europe, Middle East and Africa	63,355		49,552		126,491		94,624
Americas	77,608		52,031		158,521		89,516
Asia Pacific	2,745		1,730		8,160		3,598
	143,708		103,313		293,172		187,738
Spunlace
Europe, Middle East and Africa	30,245		—		60,070		—
Americas	54,985		—		110,469		—
Asia Pacific	11,687		—		22,765		—
	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585

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Gains on Disposition of Plant, Equipment and Timberlands (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule for Discontinued Operations

The following table sets forth sales of timberlands and other assets completed during the first six months of 2022 and 2021:

Dollars in thousands	Acres	Proceeds		Gain (loss)
2022
Timberlands	790	$	3,130	$	2,962
Other	n/a	43		(74)
Total		$	3,173	$	2,888
2021
Timberlands	936	$	2,510	$	2,403
Other	n/a	—		—
Total		$	2,510	$	2,403

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

	Six months ended June 30,
In thousands	2022		2021
Net cash used by operating activities	$	(231)	$	(238)
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(231)	$	(238)

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Goodwill and Other Asset Impairment (Tables)

6 Months Ended

Jun. 30, 2022

Asset Impairment Charges [Abstract]

Schedule of Asset Impairment Charges

The following table summarizes the impairment charge recorded in the accompanying condensed consolidated statements of income under the caption “Goodwill and other asset impairment charges:”

In thousands	Six months ended June 30,
Machinery and equipment	$	27,619
Technological know-how	18,443
Customer relationships	11,695
Tradename	3,530
Goodwill	56,062
Total	$	117,349

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule for Discontinued Operations

The following table sets forth sales of timberlands and other assets completed during the first six months of 2022 and 2021:

Dollars in thousands	Acres	Proceeds		Gain (loss)
2022
Timberlands	790	$	3,130	$	2,962
Other	n/a	43		(74)
Total		$	3,173	$	2,888
2021
Timberlands	936	$	2,510	$	2,403
Other	n/a	—		—
Total		$	2,510	$	2,403

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

	Six months ended June 30,
In thousands	2022		2021
Net cash used by operating activities	$	(231)	$	(238)
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(231)	$	(238)

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Details of Basic and Diluted Earnings Per Share (EPS) from Continuing Operations

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

	Three months ended June 30,				Six months ended June 30,
In thousands, except per share	2022		2021		2022		2021
Income (loss) from continuing operations	$	(2,460)	$	1,492	$	(110,750)	$	9,886
Weighted average common shares outstanding used in basic EPS	44,841		44,563		44,775		44,507
Common shares issuable upon exercise of dilutive stock options  and PSAs / RSUs	—		309		—		358
Weighted average common shares outstanding and common share  equivalents used in diluted EPS	44,841		44,872		44,775		44,865
Earnings (loss) per share from continuing operations
Basic	$	(0.05)	$	0.03	$	(2.47)	$	0.22
Diluted	(0.05)		0.03		(2.47)		0.22

Schedule of Number of Potential Common Shares that have been Excluded from Computation of Diluted Earnings Per Share for Indicated Period Due to Their Anti-Dilutive Nature

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

	Three months ended June 30,		Six months ended June 30,
In thousands	2022	2021	2022	2021
Potential common shares	934	1,082	934	1,082

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Losses)

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and six months ended June 30, 2022 and 2021.

In thousands	Currency translation adjustments		Unrealized gain (loss) on derivatives		Change in pensions		Change in other postretirement defined benefit plans		Total
Balance at April 1, 2022	$	(80,672)	$	1,631	$	(11,356)	$	(1,027)	$	(91,424)
Other comprehensive income (loss) before reclassifications (net of tax)	(28,675)		9,760		—		—		(18,915)
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		(1,226)		126		26		(1,074)
Net current period other comprehensive income (loss)	(28,675)		8,534		126		26		(19,989)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at April 1, 2021	$	(55,718)	$	765	$	(12,706)	$	(834)	$	(68,493)
Other comprehensive income (loss) before reclassifications (net of tax)	3,846		(341)		—		—		3,505
Amounts reclassified from accumulated  other comprehensive income (net of tax)	—		25		197		(47)		175
Net current period other comprehensive income (loss)	3,846		(316)		197		(47)		3,680
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)
Balance at January 1, 2022	$	(69,757)	$	1,988	$	(11,482)	$	(1,053)	$	(80,304)
Other comprehensive income (loss) before reclassifications (net of tax)	(39,590)		10,143		—		—		(29,447)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		(1,966)		252		52		(1,662)
Net current period other comprehensive income (loss)	(39,590)		8,177		252		52		(31,109)
Balance at June 30, 2022	$	(109,347)	$	10,165	$	(11,230)	$	(1,001)	$	(111,413)
Balance at January 1, 2021	$	(42,525)	$	(2,496)	$	(12,844)	$	(788)	$	(58,653)
Other comprehensive income (loss) before reclassifications (net of tax)	(9,347)		2,933		—		—		(6,414)
Amounts reclassified from accumulated other comprehensive income (net of tax)	—		12		335		(93)		254
Net current period other comprehensive income (loss)	(9,347)		2,945		335		(93)		(6,160)
Balance at June 30, 2021	$	(51,872)	$	449	$	(12,509)	$	(881)	$	(64,813)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income and Into the Condensed Consolidated Statements of Income

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

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Description									Line Item in Statements of Income
Cash flow hedges (Note 18)
Loss (gains) on cash flow hedges	$	(1,697)	$	33	$	(2,769)	$	57	Costs of products sold
Tax expense (benefit)	480		(22)		792		(73)		Income tax provision
Net of tax	(1,217)		11		(1,977)		(16)
Loss (gains) on interest rate swaps	(9)		22		11		43		Interest expense
Tax benefit	—		(8)		—		(15)		Income tax provision
Net of tax	(9)		14		11		28
Total cash flow hedges	(1,226)		25		(1,966)		12
Retirement plan obligations (Note 11)
Amortization of deferred benefit pension plans
Prior service costs	11		12		22		24		Other, net
Actuarial losses	164		199		331		398		Other, net
	175		211		353		422
Tax benefit	(49)		(14)		(101)		(87)		Income tax provision
Net of tax	126		197		252		335
Amortization of deferred benefit other plans
Prior service costs (credits)	26		(59)		52		(117)		Other, net
Actuarial losses	—		12		—		24		Other, net
	26		(47)		52		(93)
Tax expense	—		—		—		—		Income tax provision
Net of tax	26		(47)		52		(93)
Total reclassifications, net of tax	$	(1,074)	$	175	$	(1,662)	$	254

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Share Based Compensation Activity

The following table summarizes RSU and PSA activity during periods indicated:

Units	2022	2021
Balance at January 1,	1,111,382	1,071,652
Granted	718,668	352,763
Forfeited	(215,656)	(98,012)
Shares delivered	(305,739)	(196,637)
Balance at June 30,	1,308,655	1,129,766

The following table sets forth information related to outstanding SOSARs:

	2022			2021
	Shares	Wtd Avg Exercise Price		Shares	Wtd Avg Exercise Price
Outstanding at January 1,	1,079,113	$	20.42	1,082,413	$	20.40
Granted	—	—		—	—
Exercised	—	—		—	—
Canceled / forfeited	(145,440)	15.61		—	—
Outstanding at June 30,	933,673	$	21.17	1,082,413	$	20.40

Schedule of Compensation Expense for Stock Option Activity Included in Continuing Operations

The following table sets forth aggregate RSU and PSA compensation expense included in continuing operations for the periods indicated:

	June 30,
In thousands	2022		2021
Three months ended	$	1,509	$	1,329
Six months ended	$	2,418	$	2,537

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Retirement Plans and Other Post-Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans Included in Continuing Operations

The following tables provide information with respect to the net periodic costs of our pension and post-retirement medical benefit plans included in continuing operations.

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Pension Benefits
Service cost	$	—	$	—	$	—	$	—
Interest cost	179		273		414		523
Amortization of prior service cost	11		12		22		24
Amortization of actuarial loss	164		199		331		398
Total net periodic benefit expense	$	354	$	484	$	767	$	945
Other Benefits
Service cost	$	—	$	7	$	—	$	14
Interest cost	32		32		65		64
Amortization of prior service cost (credit)	26		(59)		52		(117)
Amortization of actuarial loss	—		12		—		24
Total net periodic benefit expense (income)	$	58	$	(8)	$	117	$	(15)

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Information Included in Continuing Operations Related to Interest on Uncertain Tax Positions

The following table summarizes information included in continuing operations related to interest on uncertain tax positions:

	Six months ended June 30,
In millions	2022		2021
Interest expense	$	0.8	$	0.4

	June 30, 2022		December 31, 2021
Accrued interest payable	$	4.7	$	3.9
Accrued penalties	3.0		3.0

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Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories, Net of Reserves

Inventories, net of reserves, were as follows:

In thousands	June 30, 2022		December 31, 2021
Raw materials	$	100,129	$	87,448
In-process and finished	153,224		139,058
Supplies	54,259		53,014
Total	$	307,612	$	279,520

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Amounts of Goodwill and Other Intangible Assets

The following table sets forth changes in the amounts of goodwill and other intangible assets recorded by each of our segments during the periods indicated:

In thousands	December 31, 2021		Impairment		Purchase price allocation adjustment		Translation		June 30, 2022
Goodwill
Composite Fibers	$	78,438	$	(56,062)	$	—	$	(1,968)	$	20,408
Airlaid Materials	109,486		—		—		(6,105)		103,381
Spunlace	48,241		—		(500)		(3,242)		44,499
Total	$	236,165	$	(56,062)	$	(500)	$	(11,315)	$	168,288
Other Intangible Assets	December 31, 2021		Impairment		Amortization		Translation		June 30, 2022
Composite Fibers
Tradename - non-amortizing	$	3,601	$	(3,530)	$	—	$	(71)	$	—
Technology and related	38,614		(37,823)		—		(791)		—
Accumulated amortization	(19,224)		19,380		(424)		268		—
Net	19,390		(18,443)		(424)		(523)		—
Customer relationships and related	34,739		(34,046)		—		(693)		—
Accumulated amortization	(22,104)		22,351		(587)		340		—
Net	12,635		(11,695)		(587)		(353)		—
Airlaid Materials
Tradename	4,485		—		—		(1,133)		3,352
Accumulated amortization	(603)		—		(88)		63		(628)
Net	3,882		—		(88)		(1,070)		2,724
Technology and related	17,825		—		—		(756)		17,069
Accumulated amortization	(4,552)		—		(587)		387		(4,752)
Net	13,273		—		(587)		(369)		12,317
Customer relationships and related	44,585				—		(2,038)		42,547
Accumulated amortization	(10,512)		—		(1,864)		895		(11,481)
Net	34,073		—		(1,864)		(1,143)		31,066
Spunlace
Products and Tradenames	27,623				—		(1,638)		25,985
Accumulated amortization	(253)		—		(801)		343		(711)
Net	27,370		—		(801)		(1,295)		25,274
Technology and related	14,547				—		(862)		13,685
Accumulated amortization	(202)		—		(676)		335		(543)
Net	14,345		—		(676)		(527)		13,142
Customer relationships and related	28,003				—		(1,660)		26,343
Accumulated amortization	(268)		—		(846)		344		(770)
Net	27,735		—		(846)		(1,316)		25,573
Total intangibles	214,022		(75,399)		—		(9,642)		128,981
Total accumulated amortization	(57,718)		41,731		(5,873)		2,975		(18,885)
Net intangibles	$	156,304	$	(33,668)	$	(5,873)	$	(6,667)	$	110,096

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of Information Related to Leases

The following table sets forth information related to our leases as of the periods indicated.

Dollars in thousands	June 30, 2022			December 31, 2021
Right of use asset	$	26,275		$	27,186
Weighted average discount rate	2.97		%	3.31		%
Weighted average remaining maturity (years)	21.2			26.0

The following table sets forth operating lease expense for the periods indicated:

	Six months ended June 30,
In thousands	2022		2021
Three months ended	$	1,499	$	1,452
Six months ended	$	2,920	$	2,799

Schedule of Future Minimum Lease Payments

The following table sets forth required remaining future minimum lease payments during the years indicated:

In thousands
2022	$	2,988
2023	3,606
2024	2,742
2025	2,350
2026	2,270
Thereafter	22,416

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt is summarized as follows:

In thousands	June 30, 2022		December 31, 2021
Revolving credit facility, due Sep 2026	$	81,161	$	10,000
4.750% Senior Notes, due Oct 2029	500,000		500,000
Term loan, due Feb 2024	194,237		218,026
2.40% Term Loan, due Jun 2022	—		809
2.05% Term Loan, due Mar 2023	4,158		7,556
1.30% Term Loan, due Jun 2023	1,484		2,427
1.55% Term Loan, due Sep 2025	4,137		5,204
1.10% Term Loan, due Mar 2024	6,610		9,267
0.57% Term Loan, due Jul 2023	20,774		22,652
Total long-term debt	812,561		775,941
Less current portion	(22,117)		(26,437)
Unamortized deferred issuance costs	(11,418)		(11,429)
Long-term debt, net of current portion	$	779,026	$	738,075

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Fair Value of Long-Term Debt

The following table sets forth carrying value and fair value of long-term debt:

	June 30, 2022				December 31, 2021
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Variable rate debt	$	81,161	$	81,161	$	10,000	$	10,000
4.750% Senior Notes, due Oct. 2029	500,000		348,750		500,000		516,875
Term loan, due Feb. 2024	194,237		194,237		218,026		218,026
2.40% Term Loan	—		—		809		813
2.05% Term Loan	4,158		4,162		7,556		7,616
1.30% Term Loan	1,484		1,477		2,427		2,433
1.55% Term Loan	4,137		4,047		5,204		5,234
1.10% Term Loan	6,610		6,514		9,267		9,252
0.57% Term Loan	20,774		20,484		22,652		22,657
Total	$	812,561	$	660,832	$	775,941	$	792,906

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Financial Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivatives Used to Hedge Foreign Exchange Risks

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:

In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
Euro / British Pound	22,083	18,823
U.S. Dollar / British Pound	27,221	16,205
U.S. Dollar / Euro	3,402	658
Sell/Buy - buy notional
Euro / Philippine Peso	965,540	896,291
British Pound / Philippine Peso	1,303,213	1,121,183
Euro / U.S. Dollar	107,614	108,467
U.S. Dollar / Canadian Dollar	36,493	36,904

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:

In thousands	June 30, 2022	December 31, 2021
Derivative
Sell/Buy - sell notional
U.S. Dollar / British Pound	29,450	26,600
British Pound / Euro	2,800	3,400
U.S. Dollar / Swiss Franc	7,960	2,180
British Pound / Swiss Franc	2,290	1,025
Euro / Swiss Franc	6,520	2,750
Euro / U.S. Dollar	6,400	11,000
Sell/Buy - buy notional
Euro / U.S. Dollar	2,700	20,900
British Pound / Euro	15,300	5,300

Schedule of Fair Values of Derivative Instruments

Fair Value Measurements The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:

In thousands	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	7,151	$	3,197	$	2,037	$	288
Interest rate swap	—		—		—		44
Not designated as hedging:
Forward foreign currency exchange contracts	$	822	701		$	1,124	$	116

Schedule of Income or (Loss) from Derivative Instruments Recognized in Results of Operations

The following table summarizes the amount of income or (loss) from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying condensed consolidated statements of income where the results are recorded:

	Three months ended June 30,				Six months ended June 30,
In thousands	2022		2021		2022		2021
Designated as hedging:
Forward foreign currency exchange contracts:
Cost of products sold	$	(1,697)	$	(33)	$	(2,769)	$	(57)
Interest expense	(9)		22		11		43
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	1,289	$	433	$	1,729	$	703

Schedule of Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Loss) Before Taxes

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income (loss), before taxes, is as follows:

In thousands	2022		2021
Balance at January 1,	$	2,889	$	(3,460)
Deferred gains on cash flow hedges	6,565		4,117
Reclassified to earnings	(2,758)		14
Balance at June 30,	$	6,696	$	671

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Financial and Other Information by Segment

The following tables set forth financial and other information by segment for the period indicated:

	Three months ended June 30,				Six months ended June 30,
Dollars in thousands	2022		2021		2022		2021
Net Sales
Composite Fibers	$	123,338	$	141,598	$	259,167	$	282,847
Airlaid Material	143,708		103,313		293,172		187,738
Spunlace	96,917		—		193,304		—
Total	$	363,963	$	244,911	$	745,643	$	470,585
Operating income (loss)
Composite Fibers	$	5,779	$	11,063	$	5,444	$	27,128
Airlaid Material	11,944		8,431		24,165		15,628
Spunlace	(1,808)		—		(3,380)		—
Other and unallocated	(6,991)		(11,371)		(133,194)		(17,314)
Total	$	8,924	$	8,123	$	(106,965)	$	25,442
Depreciation and amortization
Composite Fibers	$	4,796	$	7,000	$	11,315	$	13,981
Airlaid Material	7,542		6,767		15,171		12,615
Spunlace	2,945		—		5,859		—
Other and unallocated	1,169		966		2,591		1,870
Total	$	16,452	$	14,733	$	34,936	$	28,466
Capital expenditures
Composite Fibers	$	4,131	$	2,882	$	10,258	$	5,655
Airlaid Material	2,064		1,297		5,532		3,036
Spunlace	1,801		—		3,886		—
Other and unallocated	2,353		1,653		3,021		2,520
Total	10,349		5,832		$	22,697	$	11,211
Tons shipped (metric)
Composite Fibers	24,246		34,471		52,457		68,611
Airlaid Material	40,681		34,315		83,733		63,179
Spunlace	19,358		—		40,094		—
Total	84,285		68,786		176,284		131,790

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Organization (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2022 employee manufacturing_site
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net sales | $	$ 347,895	$ 690,448	$ 1,100,000
Number of employees employed | employee				3,250
Number of manufacturing sites | manufacturing_site				16

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Acquisition - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Oct. 29, 2021	May 13, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Mount Holly
Business Acquisition [Line Items]
Total consideration		$ 170,900			$ 170,919
One-time costs				$ 3,700		$ 4,300
Jacob Holm
Business Acquisition [Line Items]
Total consideration	$ 304,000				$ 303,952
Incentive accruals			$ 500

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Acquisition - Schedule of Information Related to Consideration (Details) - USD ($) $ in Thousands			6 Months Ended
	Oct. 29, 2021	May 13, 2021	Jun. 30, 2022
Total 2021 Acquisitions
Business Acquisition [Line Items]
Total consideration			$ 474,871
Less: Debt repaid			(148,000)
Cash consideration			326,871
Mount Holly
Business Acquisition [Line Items]
Total consideration		$ 170,900	170,919
Less: Debt repaid			0
Cash consideration			170,919
Jacob Holm
Business Acquisition [Line Items]
Total consideration	$ 304,000		303,952
Less: Debt repaid			(148,000)
Cash consideration			$ 155,952

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Acquisition - Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Goodwill	$ 168,288	$ 236,165
Total Acquisitions
Assets
Cash and cash equivalents	11,426
Accounts receivable	41,870
Inventory	52,371
Prepaid and other current assets	6,738
Plant, equipment and timberlands	259,110
Intangible assets	90,240
Goodwill	84,148
Other assets	34,970
Total assets	580,873
Liabilities
Short-term debt	14,081
Accounts payable	27,585
Other current liabilities	23,131
Other long-term liabilities	41,205
Total liabilities	106,002
Total preliminary purchase price	474,871
Mount Holly
Assets
Cash and cash equivalents	0
Accounts receivable	11,599
Inventory	7,031
Prepaid and other current assets	11
Plant, equipment and timberlands	100,498
Intangible assets	20,000
Goodwill	35,793
Other assets	8,041
Total assets	182,973
Liabilities
Short-term debt
Accounts payable	2,321
Other current liabilities	1,868
Other long-term liabilities	7,865
Total liabilities	12,054
Total preliminary purchase price	170,919
Jacob Holm
Assets
Cash and cash equivalents	11,426
Accounts receivable	30,271
Inventory	45,340
Prepaid and other current assets	6,727
Plant, equipment and timberlands	158,612
Intangible assets	70,240
Goodwill	48,355
Other assets	26,929
Total assets	397,900
Liabilities
Short-term debt	14,081
Accounts payable	25,264
Other current liabilities	21,263
Other long-term liabilities	33,340
Total liabilities	93,948
Total preliminary purchase price	$ 303,952

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Acquisition - Schedule of Annual Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Business Acquisition [Line Items]
Net sales		$ 347,895		$ 690,448	$ 1,100,000
Income (loss) from continuing operations		$ (10,546)		$ 12,892
Mount Holly
Business Acquisition [Line Items]
Net sales	$ 26,300		$ 53,604
Operating income (loss)	1,911		4,635
Jacob Holm
Business Acquisition [Line Items]
Net sales	96,917		193,304
Operating income (loss)	$ (1,808)		$ (3,380)

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Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Net sales	$ 363,963	$ 244,911	$ 745,643	$ 470,585
Net sales
Disaggregation Of Revenue [Line Items]
Net sales	363,963	244,911	745,643	470,585
Composite Fibers
Disaggregation Of Revenue [Line Items]
Net sales	123,338	141,598	259,167	282,847
Composite Fibers | Europe, Middle East and Africa
Disaggregation Of Revenue [Line Items]
Net sales	59,868	85,796	133,472	172,741
Composite Fibers | Americas
Disaggregation Of Revenue [Line Items]
Net sales	42,077	35,369	80,053	67,210
Composite Fibers | Asia Pacific
Disaggregation Of Revenue [Line Items]
Net sales	21,393	20,433	45,642	42,896
Composite Fibers | Net sales
Disaggregation Of Revenue [Line Items]
Net sales	123,338	141,598	259,167	282,847
Composite Fibers | Food & beverage
Disaggregation Of Revenue [Line Items]
Net sales	74,465	73,535	149,688	150,488
Composite Fibers | Wallcovering
Disaggregation Of Revenue [Line Items]
Net sales	9,902	24,182	25,733	46,811
Composite Fibers | Technical specialties
Disaggregation Of Revenue [Line Items]
Net sales	18,603	24,708	41,739	48,203
Composite Fibers | Composite laminates
Disaggregation Of Revenue [Line Items]
Net sales	11,570	10,549	22,867	20,358
Composite Fibers | Metallized
Disaggregation Of Revenue [Line Items]
Net sales	8,798	8,624	19,140	16,987
Airlaid Materials
Disaggregation Of Revenue [Line Items]
Net sales	143,708	103,313	293,172	187,738
Airlaid Materials | Europe, Middle East and Africa
Disaggregation Of Revenue [Line Items]
Net sales	63,355	49,552	126,491	94,624
Airlaid Materials | Americas
Disaggregation Of Revenue [Line Items]
Net sales	77,608	52,031	158,521	89,516
Airlaid Materials | Asia Pacific
Disaggregation Of Revenue [Line Items]
Net sales	2,745	1,730	8,160	3,598
Airlaid Materials | Net sales
Disaggregation Of Revenue [Line Items]
Net sales	143,708	103,313	293,172	187,738
Airlaid Materials | Feminine hygiene
Disaggregation Of Revenue [Line Items]
Net sales	56,943	47,184	116,255	94,825
Airlaid Materials | Specialty wipes
Disaggregation Of Revenue [Line Items]
Net sales	37,908	21,371	75,003	37,287
Airlaid Materials | Tabletop
Disaggregation Of Revenue [Line Items]
Net sales	26,771	17,188	57,518	24,051
Airlaid Materials | Food pads
Disaggregation Of Revenue [Line Items]
Net sales	3,475	2,440	6,951	4,797
Airlaid Materials | Home care
Disaggregation Of Revenue [Line Items]
Net sales	5,513	6,339	11,798	10,262
Airlaid Materials | Adult incontinence
Disaggregation Of Revenue [Line Items]
Net sales	6,260	5,083	12,989	9,761
Airlaid Materials | Other
Disaggregation Of Revenue [Line Items]
Net sales	6,838	3,708	12,658	6,755
Spunlace
Disaggregation Of Revenue [Line Items]
Net sales	96,917	0	193,304	0
Spunlace | Europe, Middle East and Africa
Disaggregation Of Revenue [Line Items]
Net sales	30,245	0	60,070	0
Spunlace | Americas
Disaggregation Of Revenue [Line Items]
Net sales	54,985	0	110,469	0
Spunlace | Asia Pacific
Disaggregation Of Revenue [Line Items]
Net sales	11,687	0	22,765	0
Spunlace | Net sales
Disaggregation Of Revenue [Line Items]
Net sales	96,917	0	193,304	0
Spunlace | Consumer wipes
Disaggregation Of Revenue [Line Items]
Net sales	39,549	0	85,706	0
Spunlace | Critical cleaning
Disaggregation Of Revenue [Line Items]
Net sales	27,783	0	52,061	0
Spunlace | Health care
Disaggregation Of Revenue [Line Items]
Net sales	15,434	0	29,039	0
Spunlace | Hygiene
Disaggregation Of Revenue [Line Items]
Net sales	6,233	0	12,146	0
Spunlace | High performance
Disaggregation Of Revenue [Line Items]
Net sales	4,018	0	8,130	0
Spunlace | Beauty care
Disaggregation Of Revenue [Line Items]
Net sales	$ 3,900	$ 0	$ 6,222	$ 0

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Gains on Disposition of Plant, Equipment and Timberlands (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) a	Jun. 30, 2021 USD ($) a	Jun. 30, 2022 USD ($) a	Jun. 30, 2021 USD ($) a
Property, Plant and Equipment [Line Items]
Proceeds			$ 3,173	$ 2,510
Gain (loss)	$ (73)	$ 1,553	$ 2,888	$ 2,403
Timberlands
Property, Plant and Equipment [Line Items]
Acres | a	790	936	790	936
Proceeds			$ 3,130	$ 2,510
Gain (loss)			2,962	2,403
Other
Property, Plant and Equipment [Line Items]
Proceeds			43	0
Gain (loss)			$ (74)	$ 0

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Goodwill and Other Asset Impairment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Impaired Long-Lived Assets Held and Used [Line Items]
Goodwill and other asset impairment charges	$ 0	$ 117,300	$ 0	$ 117,349	$ 0
Inventory reserve	$ 1,000			1,000
Russian And Ukrainian
Impaired Long-Lived Assets Held and Used [Line Items]
Bad debt expense				$ 2,900

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Goodwill and Other Asset Impairment - Schedule of Asset Impairment Charges (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Indefinite-lived Intangible Assets [Line Items]
Machinery and equipment				$ 27,619
Impairment of intangible assets, finite-lived				(41,731)
Impairment of intangible assets, indefinite-lived				75,399
Goodwill impairment loss				56,062
Goodwill and other asset impairment charges	$ 0	$ 117,300	$ 0	117,349	$ 0
Tradename
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets, indefinite-lived				3,530
Technological know-how
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived				18,443
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived				$ 11,695

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Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Income (loss) before income taxes	$ (408)	$ 82	$ (371)	$ 82
Change in cash and cash equivalents from discontinued operations			(231)	(238)
Specialty Papers
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net cash used by operating activities			(231)	(238)
Net cash used by investing activities			0	0
Net cash provided by financing activities			0	0
Change in cash and cash equivalents from discontinued operations			$ (231)	$ (238)

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Earnings Per Share - Details of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Income (loss) from continuing operations	$ (2,460)	$ 1,492	$ (110,750)	$ 9,886
Weighted average common shares outstanding used in basic EPS (in shares)	44,841	44,563	44,775	44,507
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs (in shares)	0	309	0	358
Weighted average common shares outstanding and common share equivalents used in diluted EPS (in shares)	44,841	44,872	44,775	44,865
Earnings (loss) per share from continuing operations
Basic (in dollars per share)	$ (0.05)	$ 0.03	$ (2.47)	$ 0.22
Diluted (in dollars per share)	$ (0.05)	$ 0.03	$ (2.47)	$ 0.22

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Earnings Per Share - Number of Potentially Dilutive Common Shares (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Potential common shares (in shares)	934	1,082	934	1,082

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Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 416,733	$ 571,061	$ 542,762	$ 577,932
Other comprehensive income (loss) before reclassifications (net of tax)	(18,915)	3,505	(29,447)	(6,414)
Amounts reclassified from accumulated other comprehensive income (net of tax)	(1,074)	175	(1,662)	254
Other comprehensive income (loss)	(19,989)	3,680	(31,109)	(6,160)
Ending balance	389,922	571,245	389,922	571,245
Currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(80,672)	(55,718)	(69,757)	(42,525)
Other comprehensive income (loss) before reclassifications (net of tax)	(28,675)	3,846	(39,590)	(9,347)
Amounts reclassified from accumulated other comprehensive income (net of tax)	0	0	0	0
Other comprehensive income (loss)	(28,675)	3,846	(39,590)	(9,347)
Ending balance	(109,347)	(51,872)	(109,347)	(51,872)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	1,631	765	1,988	(2,496)
Other comprehensive income (loss) before reclassifications (net of tax)	9,760	(341)	10,143	2,933
Amounts reclassified from accumulated other comprehensive income (net of tax)	(1,226)	25	(1,966)	12
Other comprehensive income (loss)	8,534	(316)	8,177	2,945
Ending balance	10,165	449	10,165	449
Defined benefit plans | Pension Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11,356)	(12,706)	(11,482)	(12,844)
Other comprehensive income (loss) before reclassifications (net of tax)	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (net of tax)	126	197	252	335
Other comprehensive income (loss)	126	197	252	335
Ending balance	(11,230)	(12,509)	(11,230)	(12,509)
Defined benefit plans | Other Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,027)	(834)	(1,053)	(788)
Other comprehensive income (loss) before reclassifications (net of tax)	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (net of tax)	26	(47)	52	(93)
Other comprehensive income (loss)	26	(47)	52	(93)
Ending balance	(1,001)	(881)	(1,001)	(881)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(91,424)	(68,493)	(80,304)	(58,653)
Ending balance	$ (111,413)	$ (64,813)	$ (111,413)	$ (64,813)

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Accumulated Other Comprehensive Income - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	$ 326,566	$ 209,357	$ 676,581	$ 395,735
Loss (gains) on interest rate swaps	7,672	1,772	15,534	3,303
Other, net	455	849	1,795	1,073
Income (loss) before income taxes	(835)	(5,513)	124,239	(21,097)
Income tax provision (benefit)	3,295	4,021	(13,489)	11,211
Net of tax	2,052	(1,410)	110,379	(9,804)
Reclassifications Out of Accumulated Other Comprehensive Income
Defined Benefit Plan Disclosure [Line Items]
Net of tax	(1,074)	175	(1,662)	254
Reclassifications Out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on derivatives
Defined Benefit Plan Disclosure [Line Items]
Net of tax	(1,226)	25	(1,966)	12
Reclassifications Out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on derivatives | Interest Rate Swap
Defined Benefit Plan Disclosure [Line Items]
Loss (gains) on interest rate swaps	(9)	22	11	43
Income tax provision (benefit)	0	(8)	0	(15)
Net of tax	(9)	14	11	28
Reclassifications Out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on derivatives | Cash Flow Hedges
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(1,697)	33	(2,769)	57
Income tax provision (benefit)	480	(22)	792	(73)
Net of tax	(1,217)	11	(1,977)	(16)
Reclassifications Out of Accumulated Other Comprehensive Income | Prior service costs | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Other, net	11	12	22	24
Reclassifications Out of Accumulated Other Comprehensive Income | Prior service costs | Other Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Other, net	26	(59)	52	(117)
Reclassifications Out of Accumulated Other Comprehensive Income | Actuarial losses | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Other, net	164	199	331	398
Reclassifications Out of Accumulated Other Comprehensive Income | Actuarial losses | Other Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Other, net	0	12	0	24
Reclassifications Out of Accumulated Other Comprehensive Income | Defined benefit plans | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Income (loss) before income taxes	175	211	353	422
Income tax provision (benefit)	(49)	(14)	(101)	(87)
Net of tax	126	197	252	335
Reclassifications Out of Accumulated Other Comprehensive Income | Defined benefit plans | Other Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Income (loss) before income taxes	26	(47)	52	(93)
Income tax provision (benefit)	0	0	0	0
Net of tax	$ 26	$ (47)	$ 52	$ (93)

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Stock-Based Compensation - Narrative (Detail) - shares		6 Months Ended
	May 05, 2022	Jun. 30, 2022	Jun. 30, 2021
Restricted Stock Units (RSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards granted (as a percent)		40.00%
Cumulative performance targets		3 years
Restricted Stock Units (RSU) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional service period (in years)		1 year
Restricted Stock Units (RSU) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional service period (in years)		3 years
Performance Share Awards (PSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards granted (as a percent)		60.00%
Grants under performance share awards (in shares)		341,429	162,480
Performance Share Awards (PSAs) | Achievement of cumulative financial performance targets
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term		2 years
Performance Share Awards (PSAs) | Total shareholder return relative to broad market index
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term		3 years
SOSARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued per award (in shares)		1
Term of awards (in years)		10 years
Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares available for issuance (in shares)	1,400,000
Common stock available for future issuance (in shares)		2,670,523
Vesting term		1 year

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Stock-Based Compensation - Summary of RSU and PSA Activity (Detail) - Restricted Stock Units (RSU) and Performance Share Awards (PSAs) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding
Beginning Balance (in shares)	1,111,382	1,071,652
Granted (in shares)	718,668	352,763
Forfeited (in shares)	(215,656)	(98,012)
Shares delivered (in shares)	(305,739)	(196,637)
Ending Balance (in shares)	1,308,655	1,129,766

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Stock-Based Compensation - Summary of Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restricted Stock Units (RSU) and Performance Share Awards (PSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,509	$ 1,329	$ 2,418	$ 2,537

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Stock-Based Compensation - Schedule of Information Related to Outstanding SOSARS (Detail) - SOSARs - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Shares
Beginning Balance (in shares)	1,079,113	1,082,413
Granted (in shares)	0	0
Exercised (in shares)	0	0
Canceled / forfeited (in shares)	(145,440)	0
Ending Balance (in shares)	933,673	1,082,413
Wtd Avg Exercise Price
Beginning Balance (in dollars per share)	$ 20.42	$ 20.40
Granted (in dollars per share)	0	0
Exercised (in dollars per share)	0	0
Canceled / forfeited (in dollars per share)	15.61	0
Ending Balance (in dollars per share)	$ 21.17	$ 20.40

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Retirement Plans and Other Post-Retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	179	273	414	523
Amortization of prior service cost (credit)	11	12	22	24
Amortization of actuarial loss	164	199	331	398
Total net periodic benefit expense (income)	354	484	767	945
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	7	0	14
Interest cost	32	32	65	64
Amortization of prior service cost (credit)	26	(59)	52	(117)
Amortization of actuarial loss	0	12	0	24
Total net periodic benefit expense (income)	$ 58	$ (8)	$ 117	$ (15)

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Income Taxes - Narrative (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Pretax loss	$ (835,000)	$ (5,513,000)	$ 124,239,000	$ (21,097,000)
Income tax (benefit) provision	3,295,000	$ 4,021,000	(13,489,000)	$ 11,211,000
Income tax benefit due to asset impairments			19,200,000
Pretax loss from continuing operations			2,900,000
Increase in valuation allowance			4,500,000
Gross unrecognized tax benefits	56,800,000		56,800,000		$ 55,700,000
Unrecognized tax benefits that would impact effective tax rate	53,000,000		53,000,000
Minimum
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	0		0
Maximum
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits balance may decrease within the next twelve months	$ 1,700,000		1,700,000
United States - Federal
Income Tax Contingency [Line Items]
Income tax (benefit) provision			$ 5,700,000

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Income Taxes - Summary of Interest and Penalties on Uncertain Tax Positions (Detail) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Interest expense	$ 0.8	$ 0.4
Accrued interest payable	4.7		$ 3.9
Accrued penalties	$ 3.0		$ 3.0

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Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 100,129	$ 87,448
In-process and finished	153,224	139,058
Supplies	54,259	53,014
Total	$ 307,612	$ 279,520

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Goodwill and Other Intangible Assets - Summary of Changes in Amounts of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Goodwill
Goodwill, beginning balance	$ 236,165
Goodwill, impairment loss	(56,062)
Goodwill Purchase price allocation adjustment	(500)
Goodwill, Translation	(11,315)
Goodwill, ending balance	168,288
Indefinite-lived Intangible Assets [Roll Forward]
Impairment of intangible assets, indefinite-lived	(75,399)
Finite-lived Intangible Assets [Roll Forward]
Accumulated amortization, beginning balance	(57,718)
Net intangibles, Amortization	(5,873)
Accumulated amortization, ending balance	(18,885)
Impairment of intangible assets, finite-lived	41,731
Total intangibles	128,981	$ 214,022
Intangible assets, net	110,096	$ 156,304
Impairment of intangible assets	(33,668)
Intangible assets, gross, translation	(9,642)
Intangible assets, accumulated amortization, translation	2,975
Intangible assets, net, translation	(6,667)
Tradename - non-amortizing
Indefinite-lived Intangible Assets [Roll Forward]
Impairment of intangible assets, indefinite-lived	(3,530)
Composite Fibers
Goodwill
Goodwill, beginning balance	78,438
Goodwill, impairment loss	(56,062)
Goodwill, Translation	(1,968)
Goodwill, ending balance	20,408
Composite Fibers | Technology and related
Indefinite-lived Intangible Assets [Roll Forward]
Impairment of intangible assets, indefinite-lived	(37,823)
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	38,614
Total intangibles, Translation	(791)
Total intangibles, ending balance	0
Accumulated amortization, beginning balance	(19,224)
Net intangibles, Amortization	(424)
Accumulated amortization, Translation	268
Accumulated amortization, ending balance	0
Net intangibles, beginning balance	19,390
Impairment of intangible assets, finite-lived	19,380
Net intangibles, Translation	(523)
Net intangibles, ending balance	0
Impairment of intangible assets	(18,443)
Composite Fibers | Customer relationships and related
Indefinite-lived Intangible Assets [Roll Forward]
Impairment of intangible assets, indefinite-lived	(34,046)
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	34,739
Total intangibles, Translation	(693)
Total intangibles, ending balance	0
Accumulated amortization, beginning balance	(22,104)
Net intangibles, Amortization	(587)
Accumulated amortization, Translation	340
Accumulated amortization, ending balance	0
Net intangibles, beginning balance	12,635
Impairment of intangible assets, finite-lived	22,351
Net intangibles, Translation	(353)
Net intangibles, ending balance	0
Impairment of intangible assets	(11,695)
Composite Fibers | Tradename - non-amortizing
Indefinite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	3,601
Impairment of intangible assets, indefinite-lived	(3,530)
Total intangibles, Translation	(71)
Total intangibles, ending balance	0
Airlaid Materials
Goodwill
Goodwill, beginning balance	109,486
Goodwill, impairment loss	0
Goodwill, Translation	(6,105)
Goodwill, ending balance	103,381
Airlaid Materials | Tradename - non-amortizing
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	4,485
Total intangibles, Translation	(1,133)
Total intangibles, ending balance	3,352
Accumulated amortization, beginning balance	(603)
Net intangibles, Amortization	(88)
Accumulated amortization, Translation	63
Accumulated amortization, ending balance	(628)
Net intangibles, beginning balance	3,882
Net intangibles, Translation	(1,070)
Net intangibles, ending balance	2,724
Airlaid Materials | Technology and related
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	17,825
Total intangibles, Translation	(756)
Total intangibles, ending balance	17,069
Accumulated amortization, beginning balance	(4,552)
Net intangibles, Amortization	(587)
Accumulated amortization, Translation	387
Accumulated amortization, ending balance	(4,752)
Net intangibles, beginning balance	13,273
Net intangibles, Translation	(369)
Net intangibles, ending balance	12,317
Airlaid Materials | Customer relationships and related
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	44,585
Total intangibles, Translation	(2,038)
Total intangibles, ending balance	42,547
Accumulated amortization, beginning balance	(10,512)
Net intangibles, Amortization	(1,864)
Accumulated amortization, Translation	895
Accumulated amortization, ending balance	(11,481)
Net intangibles, beginning balance	34,073
Impairment of intangible assets, finite-lived	0
Net intangibles, Translation	(1,143)
Net intangibles, ending balance	31,066
Spunlace
Goodwill
Goodwill, beginning balance	48,241
Goodwill, impairment loss	0
Goodwill Purchase price allocation adjustment	(500)
Goodwill, Translation	(3,242)
Goodwill, ending balance	44,499
Spunlace | Tradename - non-amortizing
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	27,623
Total intangibles, Translation	(1,638)
Total intangibles, ending balance	25,985
Accumulated amortization, beginning balance	(253)
Net intangibles, Amortization	(801)
Accumulated amortization, Translation	343
Accumulated amortization, ending balance	(711)
Net intangibles, beginning balance	27,370
Impairment of intangible assets, finite-lived	0
Net intangibles, Translation	(1,295)
Net intangibles, ending balance	25,274
Spunlace | Technology and related
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	14,547
Total intangibles, Translation	(862)
Total intangibles, ending balance	13,685
Accumulated amortization, beginning balance	(202)
Net intangibles, Amortization	(676)
Accumulated amortization, Translation	335
Accumulated amortization, ending balance	(543)
Net intangibles, beginning balance	14,345
Impairment of intangible assets, finite-lived	0
Net intangibles, Translation	(527)
Net intangibles, ending balance	13,142
Spunlace | Customer relationships and related
Finite-lived Intangible Assets [Roll Forward]
Total intangibles, beginning balance	28,003
Total intangibles, Translation	(1,660)
Total intangibles, ending balance	26,343
Accumulated amortization, beginning balance	(268)
Net intangibles, Amortization	(846)
Accumulated amortization, Translation	344
Accumulated amortization, ending balance	(770)
Net intangibles, beginning balance	27,735
Impairment of intangible assets, finite-lived	0
Net intangibles, Translation	(1,316)
Net intangibles, ending balance	$ 25,573

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Leases - Summary of Information Related to Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right of use asset	$ 26,275	$ 27,186
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Weighted average discount rate	2.97%	3.31%
Weighted average remaining maturity (years)	21 years 2 months 12 days	26 years

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Leases - Summary of Operating Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Lease expense	$ 1,499	$ 1,452	$ 2,920	$ 2,799

XML

Leases - Summary of Future Minimum Lease Payments (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
2022	$ 2,988
2023	3,606
2024	2,742
2025	2,350
2026	2,270
Thereafter	$ 22,416

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Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total long-term debt	$ 812,561	$ 775,941
Less current portion	(22,117)	(26,437)
Unamortized deferred issuance costs	(11,418)	(11,429)
Long-term debt, net of current portion	779,026	738,075
4.750% Senior Notes, due Oct 2029
Debt Instrument [Line Items]
Total long-term debt	$ 500,000	500,000
Interest rate on debt (as a percent)	4.75%
Term loan, due Feb 2024
Debt Instrument [Line Items]
Total long-term debt	$ 194,237	218,026
2.40% Term Loan, due Jun 2022
Debt Instrument [Line Items]
Total long-term debt	$ 0	809
Interest rate on debt (as a percent)	2.40%
2.05% Term Loan, due Mar 2023
Debt Instrument [Line Items]
Total long-term debt	$ 4,158	7,556
Interest rate on debt (as a percent)	2.05%
1.30% Term Loan, due Jun 2023
Debt Instrument [Line Items]
Total long-term debt	$ 1,484	2,427
Interest rate on debt (as a percent)	1.30%
1.55% Term Loan, due Sep 2025
Debt Instrument [Line Items]
Total long-term debt	$ 4,137	5,204
Interest rate on debt (as a percent)	1.55%
1.10% Term Loan, due Mar 2024
Debt Instrument [Line Items]
Total long-term debt	$ 6,610	9,267
Interest rate on debt (as a percent)	1.10%
0.57% Term Loan, due Jul 2023
Debt Instrument [Line Items]
Total long-term debt	$ 20,774	22,652
Interest rate on debt (as a percent)	0.57%
Revolving credit facility, due Sep 2026
Debt Instrument [Line Items]
Total long-term debt	$ 81,161	$ 10,000

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Long-Term Debt - Narrative (Detail)		6 Months Ended
	May 09, 2022	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 02, 2021 USD ($)	Sep. 02, 2021 EUR (€)
Debt Instrument [Line Items]
Letters of credit outstanding		$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 400,000,000
Percentage increase (decrease) in borrowing margin	0.25%
Debt instrument covenant compliance leverage ratio, actual		5.3
Revolving Credit Facility | Through The Period Ended December 31, 2023
Debt Instrument [Line Items]
Debt instrument, covenant, net debt to EBITDA ratio, maximum	6.75
Revolving Credit Facility | After The Period Ended December 31, 2023
Debt Instrument [Line Items]
Debt instrument, covenant, net debt to EBITDA ratio, maximum	4.0
Term Loan Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity | €					€ 220,000,000
Letters of Credit
Debt Instrument [Line Items]
Letters of credit issued		$ 6,700,000	$ 6,700,000

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Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 812,561	$ 775,941
Fair Value	660,832	792,906
Variable rate debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	81,161	10,000
Fair Value	81,161	10,000
4.750% Senior Notes, due Oct 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	500,000	500,000
Fair Value	$ 348,750	516,875
Interest rate on debt (as a percent)	4.75%
Term loan, due Feb 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 194,237	218,026
Fair Value	194,237	218,026
2.40% Term Loan, due Jun 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	0	809
Fair Value	$ 0	813
Interest rate on debt (as a percent)	2.40%
2.05% Term Loan, due Mar 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 4,158	7,556
Fair Value	$ 4,162	7,616
Interest rate on debt (as a percent)	2.05%
1.30% Term Loan, due Jun 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 1,484	2,427
Fair Value	$ 1,477	2,433
Interest rate on debt (as a percent)	1.30%
1.55% Term Loan, due Sep 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 4,137	5,204
Fair Value	$ 4,047	5,234
Interest rate on debt (as a percent)	1.55%
1.10% Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 6,610	9,267
Fair Value	6,514	9,252
0.57% Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	20,774	22,652
Fair Value	$ 20,484	$ 22,657
Interest rate on debt (as a percent)	0.57%

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Financial Derivatives and Hedging Activities - Narrative (Detail)		6 Months Ended
	Jun. 15, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 EUR (€)	Jun. 15, 2022 EUR (€)	Mar. 03, 2022 USD ($)
Derivative [Line Items]
Pre-tax gain (loss) from changes in currency exchange rates | $		$ 15,700,000	$ 7,800,000
Term Loans
Derivative [Line Items]
Line of credit facility, maximum borrowing capacity | €				€ 220,000,000
Floating-to-fixed Interest Rate Swap Agreement
Derivative [Line Items]
Derivative notional amount | €					€ 180,000,000
Derivative fixed interest rate (as a percent)					0.0395%
Loans variable rate of interest | €					€ 180,000,000
Deferred gain on derivative | $	$ 400,000
Designated as Hedging | Currency Swap
Derivative [Line Items]
Derivative notional amount | $						$ 150,000,000
Derivative fixed interest rate (as a percent)						3.06%
Derivative, interest rate swap (as a percent)						4.75%
Minimum
Derivative [Line Items]
Long-term debt percentage bearing fixed Interest rate (as a percent)					0.00%
Minimum | Foreign Exchange Contract | Unrealized gain (loss) on derivatives
Derivative [Line Items]
Accumulated other comprehensive income realization period (in months)		12 months
Minimum | Cash Flow Hedges | Designated as Hedging
Derivative [Line Items]
Maturities of foreign currency derivative contracts (in months)		1 month
Maximum | Foreign Exchange Contract | Unrealized gain (loss) on derivatives
Derivative [Line Items]
Accumulated other comprehensive income realization period (in months)		18 months
Maximum | Cash Flow Hedges | Designated as Hedging
Derivative [Line Items]
Maturities of foreign currency derivative contracts (in months)		18 months

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Financial Derivatives and Hedging Activities - Outstanding Derivatives Used to Hedge Foreign Exchange Risks (Detail)	Jun. 30, 2022 EUR (€)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 PHP (₱)	Jun. 30, 2022 CAD ($)	Jun. 30, 2022 GBP (£)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 PHP (₱)	Dec. 31, 2021 CAD ($)	Dec. 31, 2021 GBP (£)
Cash Flow Hedges | Euro / British Pound | Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	€ 22,083,000					€ 18,823,000
Cash Flow Hedges | U.S. Dollar / British Pound | Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		$ 27,221,000					$ 16,205,000
Cash Flow Hedges | U.S. Dollar / Euro | Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		3,402,000					658,000
Cash Flow Hedges | Euro / Philippine Peso | Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | ₱			₱ 965,540,000					₱ 896,291,000
Cash Flow Hedges | British Pound / Philippine Peso | Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | ₱			₱ 1,303,213,000					₱ 1,121,183,000
Cash Flow Hedges | Euro / U.S. Dollar | Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		107,614,000					108,467,000
Cash Flow Hedges | U.S. Dollar / Canadian Dollar | Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount				$ 36,493,000					$ 36,904,000
Foreign Currency Hedges | U.S. Dollar / British Pound | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		29,450,000					26,600,000
Foreign Currency Hedges | Euro / U.S. Dollar | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	6,400,000					11,000,000
Foreign Currency Hedges | Euro / U.S. Dollar | Not Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		2,700,000					20,900,000
Foreign Currency Hedges | British Pound / Euro | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | £					£ 2,800,000					£ 3,400,000
Foreign Currency Hedges | British Pound / Euro | Not Designated as Hedging | Buy Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	15,300,000					5,300,000
Foreign Currency Hedges | U.S. Dollar / Swiss Franc | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount		$ 7,960,000					$ 2,180,000
Foreign Currency Hedges | British Pound / Swiss Franc | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | £					£ 2,290,000					£ 1,025,000
Foreign Currency Hedges | Euro / Swiss Franc | Not Designated as Hedging | Sell Notional
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount | €	€ 6,520,000					€ 2,750,000

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Financial Derivatives and Hedging Activities - Fair Values of Derivative Instruments (Detail) - Forward Foreign Currency Exchange Contracts - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Prepaid Expenses and Other Current Assets | Designated as Hedging
Derivatives Fair Value [Line Items]
Derivative asset, fair value	$ 7,151	$ 3,197
Prepaid Expenses and Other Current Assets | Designated as Hedging | Interest Rate Swap
Derivatives Fair Value [Line Items]
Derivative asset, fair value	0	0
Prepaid Expenses and Other Current Assets | Not Designated as Hedging
Derivatives Fair Value [Line Items]
Derivative asset, fair value	822	701
Other Current Liabilities | Designated as Hedging
Derivatives Fair Value [Line Items]
Derivative liability, fair value	2,037	288
Other Current Liabilities | Designated as Hedging | Interest Rate Swap
Derivatives Fair Value [Line Items]
Derivative liability, fair value	0	44
Other Current Liabilities | Not Designated as Hedging
Derivatives Fair Value [Line Items]
Derivative liability, fair value	$ 1,124	$ 116

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Financial Derivatives and Hedging Activities - Income or (Loss) from Derivative Instruments (Detail) - Forward Foreign Currency Exchange Contracts - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Designated as Hedging | Cost of products sold
Derivative Instruments Gain Loss [Line Items]
Derivative instruments, gain (loss)	$ (1,697)	$ (33)	$ (2,769)	$ (57)
Designated as Hedging | Interest expense
Derivative Instruments Gain Loss [Line Items]
Derivative instruments, gain (loss)	(9)	22	11	43
Not Designated as Hedging | Other – net
Derivative Instruments Gain Loss [Line Items]
Derivative instruments, gain (loss)	$ 1,289	$ 433	$ 1,729	$ 703

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Financial Derivatives and Hedging Activities - Fair Value Amounts Recorded as Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Fair Value Amounts Of Derivative Assets Recorded As A Component Of AOCI
Beginning balance	$ 542,762	$ 577,932
Ending balance	389,922	571,245
Unrealized gain (loss) on derivatives
Fair Value Amounts Of Derivative Assets Recorded As A Component Of AOCI
Beginning balance	1,988	(2,496)
Ending balance	10,165	449
Unrealized gain (loss) on derivatives | Foreign Exchange Contract | Fair Value, Inputs, Level 2
Fair Value Amounts Of Derivative Assets Recorded As A Component Of AOCI
Beginning balance	2,889	(3,460)
Deferred gains on cash flow hedges	6,565	4,117
Reclassified to earnings	(2,758)	14
Ending balance	$ 6,696	$ 671

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Commitments, Contingencies and Legal Proceedings - Narrative (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) Operable_Unit	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of operable units | Operable_Unit	5
Agreement term for environmental remediation (in years)	30 years
Difference recorded in escrow account	$ 1,300
Total amount available in escrow account	8,700
Accrual for environmental loss contingencies	14,800
Reserve for environmental liabilities, current portion	2,200	$ 2,200
Accrual for environmental loss contingencies, noncurrent	$ 12,600

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Segment Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) GT	Jun. 30, 2021 USD ($) GT	Jun. 30, 2022 USD ($) T	Jun. 30, 2021 USD ($) T
Segment Reporting Information [Line Items]
Net Sales	$ 363,963	$ 244,911	$ 745,643	$ 470,585
Operating income (loss)	8,924	8,123	(106,965)	25,442
Depreciation and amortization	16,452	14,733	34,936	28,466
Capital expenditures	$ 10,349	$ 5,832	$ 22,697	$ 11,211
Tons shipped (metric)	84,285	68,786	176,284	131,790
Other and unallocated
Segment Reporting Information [Line Items]
Operating income (loss)	$ (6,991)	$ (11,371)	$ (133,194)	$ (17,314)
Depreciation and amortization	1,169	966	2,591	1,870
Capital expenditures	2,353	1,653	3,021	2,520
Composite Fibers
Segment Reporting Information [Line Items]
Net Sales	$ 123,338	$ 141,598	$ 259,167	$ 282,847
Tons shipped (metric)	24,246	34,471	52,457	68,611
Composite Fibers | Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	$ 5,779	$ 11,063	$ 5,444	$ 27,128
Depreciation and amortization	4,796	7,000	11,315	13,981
Capital expenditures	4,131	2,882	10,258	5,655
Airlaid Materials
Segment Reporting Information [Line Items]
Net Sales	$ 143,708	$ 103,313	$ 293,172	$ 187,738
Tons shipped (metric)	40,681	34,315	83,733	63,179
Airlaid Materials | Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	$ 11,944	$ 8,431	$ 24,165	$ 15,628
Depreciation and amortization	7,542	6,767	15,171	12,615
Capital expenditures	2,064	1,297	5,532	3,036
Spunlace
Segment Reporting Information [Line Items]
Net Sales	$ 96,917	$ 0	$ 193,304	$ 0
Tons shipped (metric)	19,358	0	40,094	0
Spunlace | Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	$ (1,808)	$ 0	$ (3,380)	$ 0
Depreciation and amortization	2,945	0	5,859	0
Capital expenditures	$ 1,801	$ 0	$ 3,886	$ 0