10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2014

or

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

For the transition period from              to             

96 South George Street, Suite 520

York, Pennsylvania 17401

(Address of principal executive offices)

(717) 225-4711

(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	P. H. Glatfelter Company	23-0628360	Pennsylvania

N/A

(Former name or former address, if changed since last report)

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  þ    No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  þ    No  ¨.

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

Large accelerated filer	þ	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company).	Small reporting company	¨

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

Common Stock outstanding on October 31, 2014 totaled 42,942,534 shares.

P. H. GLATFELTER COMPANY AND

SUBSIDIARIES

REPORT ON FORM 10-Q

For the QUARTERLY PERIOD ENDED

September 30, 2014

Table of Contents

		Page
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements
	Condensed Consolidated Statements of Income for the three months and nine months ended September 30, 2014 and 2013 (unaudited)		2
	Condensed Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2014 and 2013 (unaudited)		3
	Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013 (unaudited)		5
	Notes to Condensed Consolidated Financial Statements (unaudited)		6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3	Quantitative and Qualitative Disclosures About Market Risks		40
Item 4	Controls and Procedures		40
PART II – OTHER INFORMATION
Item 6	Exhibits		41
SIGNATURES			41

PART I

Item 1 – Financial Statements

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three months ended September 30						Nine months ended September 30
In thousands, except per share	2014			2013			2014			2013
Net sales	$	465,092		$	456,648		$	1,366,154		$	1,287,804
Energy and related sales, net		860			1,196			6,912			2,721
Total revenues		465,952			457,844			1,373,066			1,290,525
Costs of products sold		385,439			391,805			1,196,076			1,126,271
Gross profit		80,513			66,039			176,990			164,254
Selling, general and administrative expenses		37,886			34,480			103,751			102,495
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		(282	)		(3,881	)		(374	)
Operating income		44,217			31,841			77,120			62,133
Non-operating income (expense)
Interest expense		(4,671	)		(4,788	)		(14,245	)		(13,143	)
Interest income		30			92			143			240
Other, net		(167	)		(34	)		105			388
Total non-operating expense		(4,808	)		(4,730	)		(13,997	)		(12,515	)
Income before income taxes		39,409			27,111			63,123			49,618
Income tax provision (benefit)		9,037			(7,008	)		13,434			(1,063	)
Net income	$	30,372		$	34,119		$	49,689		$	50,681
Earnings per share
Basic	$	0.71		$	0.79		$	1.15		$	1.18
Diluted		0.69			0.77			1.13			1.15
Cash dividends declared per common share	$	0.11		$	0.10		$	0.33		$	0.30
Weighted average shares outstanding
Basic		43,049			43,251			43,233			43,118
Diluted		43,841			44,328			44,111			44,213

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

- 2 -

GLATFELTER

9.30.14 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three months ended September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Net income	$	30,372		$	34,119		$	49,689		$	50,681
Foreign currency translation adjustments		(33,450	)		14,263			(33,255	)		6,033
Net change in:
Deferred gains (losses) on cash flow hedges, net of taxes of $(593), $62, $(974) and $28, respectively		1,475			(154	)		2,476			(108	)
Unrecognized retirement obligations, net of taxes of $(1,463), $(2,293), $(4,391) and $(6,869), respectively		2,398			3,794			7,193			11,394
Other comprehensive income (loss)		(29,577	)		17,903			(23,586	)		17,319
Comprehensive income	$	795		$	52,022		$	26,103		$	68,000

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

- 3 -

GLATFELTER

9.30.14 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	September 30			December 31
In thousands	2014			2013
Assets
Cash and cash equivalents	$	53,655		$	122,882
Accounts receivable, net		195,316			167,830
Inventories		248,055			236,310
Prepaid expenses and other current assets		56,657			59,560
Total current assets		553,683			586,582
Plant, equipment and timberlands, net		691,640			723,340
Goodwill		87,772			95,948
Intangible assets		80,533			96,081
Other assets		183,116			176,459
Total assets	$	1,596,744		$	1,678,410
Liabilities and Shareholders’ Equity
Current portion of long-term debt	$	3,810		$	—
Accounts payable		128,568			161,242
Dividends payable		4,761			4,363
Environmental liabilities		125			125
Other current liabilities		114,676			122,637
Total current liabilities		251,940			288,367
Long-term debt		406,360			442,325
Deferred income taxes		130,677			141,020
Other long-term liabilities		119,587			122,222
Total liabilities		908,564			993,934
Commitments and contingencies		—			—
Shareholders’ equity
Common stock		544			544
Capital in excess of par value		54,085			53,940
Retained earnings		904,733			869,329
Accumulated other comprehensive loss		(98,943	)		(75,357	)
		860,419			848,456
Less cost of common stock in treasury		(172,239	)		(163,980	)
Total shareholders’ equity		688,180			684,476
Total liabilities and shareholders’ equity	$	1,596,744		$	1,678,410

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

- 4 -

GLATFELTER

9.30.14 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Nine months ended September 30
In thousands	2014			2013
Operating activities
Net income	$	49,689		$	50,681
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization		53,547			50,028
Amortization of debt issue costs and original issue discount		985			977
Pension expense, net of unfunded benefits paid		4,575			9,646
Charge for impairment of intangible asset		3,262			—
Deferred income tax benefit		(4,434	)		(10,876	)
Gains on dispositions of plant, equipment and timberlands, net		(3,881	)		(374	)
Share-based compensation		5,811			5,523
Change in operating assets and liabilities
Accounts receivable		(35,528	)		(23,496	)
Inventories		(19,982	)		7,225
Prepaid and other current assets		(2,367	)		4,659
Accounts payable		(25,576	)		5,065
Accruals and other current liabilities		(6,214	)		2,218
Other		1,493			(5,583	)
Net cash provided by operating activities		21,380			95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(47,036	)		(86,089	)
Proceeds from disposals of plant, equipment and timberlands, net		4,051			379
Acquisition, net of cash acquired		—			(210,911	)
Other		(600	)		(325	)
Net cash used by investing activities		(43,585	)		(296,946	)
Financing activities
Net borrowings under (repayments of) revolving credit facility		(30,720	)		126,139
Payments of borrowing costs		—			(419	)
Proceeds from term loans		12,592			56,091
Repurchases of common stock		(12,180	)		—
Payments of dividends		(13,935	)		(12,603	)
Payments related to share-based compensation awards and other		(1,764	)		(2,332	)
Net cash (used) provided by financing activities		(46,007	)		166,876
Effect of exchange rate changes on cash		(1,015	)		333
Net decrease in cash and cash equivalents		(69,227	)		(34,044	)
Cash and cash equivalents at the beginning of period		122,882			97,679
Cash and cash equivalents at the end of period	$	53,655		$	63,635
Supplemental cash flow information
Cash paid for:
Interest, net of amounts capitalized	$	9,959		$	9,388
Income taxes, net		19,928			10,834

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

- 5 -

GLATFELTER

9.30.14 Form 10-Q

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. ORGANIZATION

P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, Pennsylvania, our manufacturing facilities are located in Spring Grove, Pennsylvania; Chillicothe and Freemont, Ohio; Gatineau, Quebec, Canada; Lydney, England; Caerphilly, Wales; Gernsbach, Falkenhagen and Heidenau, Germany; Scaër, France; and the Philippines. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

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 that you have read the audited consolidated financial statements included in our 2013 Annual Report on Form 10-K.

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 that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted for fiscal years beginning after December 15, 2016 and early adoption is not permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

3. ACQUISITION

On April 30, 2013, we completed the acquisition of all outstanding shares of Dresden Papier GmbH (“Dresden”) from Fortress Paper Ltd. for $211 million, net of cash acquired. Dresden, based in Heidenau, Germany, is the leading global supplier of nonwoven wallpaper base materials, and is a major supplier to most of the world’s largest wallpaper manufacturers. Dresden’s revenue for the full year 2013 was $158.6 million and it employed approximately 146 people at its state-of-the-art, 72,800 short-ton-capacity manufacturing facility. We financed the acquisition through a combination of cash on hand and borrowings under our Revolving Credit Facility.

The acquisition of Dresden added another industry-leading nonwovens product line to our Composite Fibers business, and broadens our relationship with leading producers of consumer and industrial products. The Dresden acquisition also provided additional operational leverage and growth opportunities for Glatfelter globally, particularly in large markets such as Russia and China, and other developing markets in Eastern Europe and Asia.

Dresden now operates as part of our Composite Fibers business unit which manufactures fiber-based products for growing global niche markets including filtration papers for tea and single serve coffee applications, metallized papers, and technical specialties.

The share purchase agreement provides for, among other terms, indemnification provisions for claims that may arise, including among others, uncertain tax positions and other third party claims. The allocation of the purchase price to assets acquired and liabilities assumed is as follows:

- 6 -

GLATFELTER

9.30.14 Form 10-Q

In thousands	As originally presented			Cumulative adjustments			Adjusted
Assets
Cash and cash equivalents	$	12,227		$	—		$	12,227
Accounts receivable		23,870			—			23,870
Inventory		13,864			—			13,864
Prepaid and other current assets		6,674			1,386			8,060
Plant, equipment and timberlands		60,951			—			60,951
Intangible assets		87,596			—			87,596
Goodwill		76,256			(1,386	)		74,870
Total assets		281,438			—			281,438
Liabilities
Accounts payable		20,360			(107	)		20,253
Deferred tax liabilities		36,120			—			36,120
Other long term liabilities		1,820			107			1,927
Total liabilities		58,300			—			58,300
Total		223,138			—			223,138
less cash acquired		(12,227	)		—			(12,227	)
Total purchase price	$	210,911		$	—		$	210,911

The adjustments set forth above primarily relate to the recognition of additional indemnification receivable from the seller associated with certain tax matters. Such adjustments were recorded in the third quarter of 2013 and did not impact previously reported results of operations, earnings per share, or cash flows.

For purposes of allocating the total purchase price, assets acquired and liabilities assumed are recorded at their estimated fair market value. The allocation set forth above is based on management’s estimate of the fair value using valuation techniques such as discounted cash flow models, appraisals and similar methodologies. The amount allocated to intangible assets represents the estimated value of customer relationships, technological know-how and trade name.

Acquired property, plant and equipment are being depreciated on a straight-line basis with estimated remaining lives ranging from 5 years to 30 years. Intangible assets are being amortized on a straight-line basis over an average estimated remaining life of 17 years reflecting the expected future value.

In connection with the Dresden acquisition we recorded $74.9 million of goodwill and $87.6 million of intangible assets. The goodwill arising from the acquisition largely relates to strategic benefits, product and market diversification, assembled workforce, and similar factors. For tax purposes, none of the goodwill is deductible. Intangible assets consisted of $9.8 million of non-amortizing tradename, and the remainder consists of technology and customer relationships.

Our results of operations include the results of Dresden prospectively since the acquisition was completed on April 30, 2013. All such results reported herein are included as part of the Composite Fibers business unit. Revenue of Dresden included in our consolidated results of operations for the third quarter and first nine months of 2014 totaled $38.8 million and $118.4 million, respectively, and operating income for the same periods of 2014 totaled $6.5 million and $23.6 million, respectively.

The table below summarizes pro forma financial information as if the acquisition and related financing transaction occurred as of January 1, 2013:

This unaudited pro forma financial information above is not necessarily indicative of what the operating results would have been had the acquisition been completed at the beginning of the respective period nor is it indicative of future results.

In thousands, except per share	Nine months ended September 30, 2013
Pro forma
Net sales	$	1,344,623
Net income		63,709
Diluted earnings per share		1.44

- 7 -

GLATFELTER

9.30.14 Form 10-Q

4. GAINS ON DISPOSITIONS OF PLANT, EQUIPMENT AND TIMBERLANDS, NET

During the first nine months of 2014 and 2013, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881
2013
Timberlands		172	$	287	$	282
Other		n/a		92		92
Total			$	379	$	374

5. EARNINGS PER SHARE

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

	Three months ended September 30
In thousands, except per share	2014		2013
Net income	$	30,372	$	34,119
Weighted average common shares outstanding used in basic EPS		43,049		43,251
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		792		1,077
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,841		44,328
Earnings per share
Basic	$	0.71	$	0.79
Diluted		0.69		0.77

	Nine months ended September 30
In thousands, except per share	2014		2013
Net income	$	49,689	$	50,681
Weighted average common shares outstanding used in basic EPS		43,233		43,118
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		878		1,095
Weighted average common shares outstanding and common share equivalents used in diluted EPS		44,111		44,213
Earnings per share
Basic	$	1.15	$	1.18
Diluted		1.13		1.15

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

	September 30
	2014		2013
Three months ended		282		—
Nine months ended		282		—

- 8 -

GLATFELTER

9.30.14 Form 10-Q

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2014 and 2013.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at July 1, 2013	$	(7,914	)	$	(379	)	$	(152,056	)	$	(4,201	)	$	(164,550	)
Other comprehensive income before reclassifications (net of tax)		14,263			(434	)		—			—			13,829
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			280			3,746			48			4,074
Net current period other comprehensive income (loss)		14,263			(154	)		3,746			48			17,903
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at January 1, 2013	$	316		$	(425	)	$	(159,560	)	$	(4,297	)	$	(163,966	)
Other comprehensive income before reclassifications (net of tax)		6,033			(575	)		—			—			5,458
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			467			11,250			144			11,861
Net current period other comprehensive income (loss)		6,033			(108	)		11,250			144			17,319
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)

- 9 -

GLATFELTER

9.30.14 Form 10-Q

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Description													Line Item in Statements of Income
Cash flow hedges (Note 14)
(Gains) losses on cash flow hedges	$	137		$	384		$	1,227		$	641		Costs of products sold
Tax (benefit) expense		(41	)		(104	)		(345	)		(174	)	Income tax provision
Net of tax		96			280			882			467
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		621			572			1,864			1,838		Costs of products sold
		206			201			618			483		Selling, general and administrative
Actuarial losses		2,215			3,792			6,644			12,203		Costs of products sold
		762			1,445			2,287			3,508		Selling, general and administrative
		3,804			6,010			11,413			18,032
		(1,441	)		(2,264	)		(4,325	)		(6,782	)	Income tax provision
Net of tax		2,363			3,746			7,088			11,250
Amortization of deferred benefit other plan items
Prior service costs		(59	)		(100	)		(178	)		(301	)	Costs of products sold
		(13	)		(25	)		(38	)		(74	)	Selling, general and administrative
Actuarial losses		106			155			319			465		Costs of products sold
		23			47			68			141		Selling, general and administrative
		57			77			171			231
		(22	)		(29	)		(66	)		(87	)	Income tax provision
Net of tax		35			48			105			144
Total reclassifications, net of tax	$	2,494		$	4,074		$	8,075		$	11,861

7. 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 consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

As of September 30, 2014 and December 31, 2013, we had $13.7 million and $14.9 million of gross unrecognized tax benefits. As of September 30, 2014, if such benefits were to be recognized, approximately $13.7 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities.

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013		2011 - 2012
State		2009 - 2013		2011 - 2012
Canada (1)		2010 - 2013		2009
Germany (1)		2012 - 2013		2007 - 2011
France		2010, 2013		2011 - 2012
United Kingdom		2010 - 2013		N/A
Philippines		2012 - 2013		2011

(1) – includes provincial or similar local jurisdictions, as applicable

- 10 -

GLATFELTER

9.30.14 Form 10-Q

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 $3.5 million. Substantially all of this range relates to tax positions taken in the U.S. and Germany.

We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2014		2013
Interest expense	$	0.1	$	(0.1	)
Penalties		—		—
	September 30 2014		December 31 2013
Accrued interest payable	$	0.7	$	0.6

8. STOCK-BASED COMPENSATION

The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides 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.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights.

Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. PSAs are issued annually to members of management and each respective grant cliff vests each December 31 of the third year following the grant, assuming the achievement of predetermined, three-year cumulative performance targets. 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 both RSUs and PSAs, the grant date fair value of the awards, which is equal to 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. 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	2014			2013
Balance at January 1,		1,001,814			847,679
Granted		173,206			210,856
Forfeited		(45,355	)		(40,991	)
Shares delivered		(239,394	)		(113,230	)
Balance at September 30,		890,271			904,314

The amount granted in 2014 and 2013 includes PSAs of 95,691 and 181,670, respectively, exclusive of reinvested dividends.

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

	September 30
In thousands	2014		2013
Three months ended	$	854	$	892
Nine months ended		1,874		2,216

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. The SOSARs vest ratably over a three year period and have a term of ten years.

- 11 -

GLATFELTER

9.30.14 Form 10-Q

The following table sets forth information related to outstanding SOSARS.

	2014					2013
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,977,133		$	13.91		2,121,454		$	12.93
Granted		281,881			29.22		361,923			18.36
Exercised		(26,245	)		15.67		(435,562	)		12.63
Canceled / forfeited		(29,842	)		19.36		(73,901	)		16.25
Outstanding at September 30,		2,202,927		$	15.77		1,973,914		$	13.87
SOSAR Grants
Weighted average grant date fair value per share	$	9.81				$	5.64
Aggregate grant date fair value (in thousands)	$	2,764				$	2,042
Black-Scholes assumptions
Dividend yield		1.48	%				2.18	%
Risk free rate of return		1.74	%				0.99	%
Volatility		37.59	%				39.62	%
Expected life		6 yrs					6 yrs

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2014		2013
Three months ended	$	577	$	398
Nine months ended		1,585		1,198

9. 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.

	Three months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	2,602		$	2,897
Interest cost		6,216			5,504
Expected return on plan assets		(10,969	)		(10,857	)
Amortization of prior service cost		827			773
Amortization of unrecognized loss		2,977			5,237
Net periodic benefit cost	$	1,653		$	3,554
Other Benefits
Service cost	$	614		$	789
Interest cost		597			545
Amortization of prior service cost		(72	)		(125	)
Amortization of unrecognized loss		129			202
Net periodic benefit cost	$	1,268		$	1,411
	Nine months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	7,810		$	8,693
Interest cost		18,696			16,504
Expected return on plan assets		(32,907	)		(32,570	)
Amortization of prior service cost		2,482			2,321
Amortization of unrecognized loss		8,931			15,711
Net periodic benefit cost	$	5,012		$	10,659
Other Benefits
Service cost	$	1,844		$	2,367
Interest cost		1,793			1,635
Amortization of prior service cost		(216	)		(375	)
Amortization of unrecognized loss		387			606
Net periodic benefit cost	$	3,808		$	4,233

- 12 -

GLATFELTER

9.30.14 Form 10-Q

10. ASSET IMPAIRMENT CHARGE

During the third quarter of 2014, in connection with our annual test of potential impairment of indefinite lived intangible assets, we recorded a $3.3 million non-cash asset impairment charge related to a trade name intangible asset acquired in connection with the 2013 Dresden acquisition. The charge was due to a change in the estimated fair value of the trade name, primarily driven by a substantial increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political instability. The charge is recorded in the accompanying condensed consolidated statements of income under the caption “selling, general and administrative expenses.”

11. INVENTORIES

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2014		2013
Raw materials	$	59,410	$	59,440
In-process and finished		118,620		109,578
Supplies		70,025		67,292
Total	$	248,055	$	236,310

12. LONG-TERM DEBT

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2014			2013
Revolving credit facility, due Nov. 2016	$	93,810		$	133,540
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		12,592			—
2.05% Term Loan, due Mar. 2023		53,768			58,785
Total long-term debt		410,170			442,325
Less current portion		(3,810	)		—
Long-term debt, net of current portion	$	406,360		$	442,325

On November 21, 2011, we entered into an amendment to our revolving credit agreement with a consortium of banks (the “Revolving Credit Facility”) which increased the amount available for borrowing to $350 million, extended the maturity of the facility to November 21, 2016, and instituted a lower interest rate pricing grid.

For all U.S. dollar denominated borrowings under the Revolving Credit Facility, the borrowing rate is, at our option, (a) the bank’s base rate which is equal to the greater of i) the prime rate; ii) the federal funds rate plus

50 basis points plus an applicable spread ranging from 25 basis points to 125 basis points based on our corporate credit ratings determined by Standard & Poor’s Rating Services and Moody’s Investor Service, Inc. (the “Corporate Credit Rating”); or iii) the daily Euro-rate plus 100 basis points; or (b) the daily Euro-rate plus an applicable margin ranging from 125 basis points to 225 basis points based on the Corporate Credit Rating. For non-US dollar denominated borrowings, interest is based on (b) above.

The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); ii) a consolidated EBITDA to interest expense ratio; and iii) beginning December 31, 2015, a minimum liquidity ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of September 30, 2014, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.3x, within the limits set forth in 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 facility.

On October 3, 2012, we completed a private placement offering of $250.0 million aggregate principal amount of 5.375% Senior Notes due 2020 (the “5.375% Notes”). The 5.375% Notes are fully and unconditionally guaranteed, jointly and severally, by PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC (the “Guarantors”).

Interest on the 5.375% Notes is payable semiannually in arrears on April 15 and October 15, commencing on April 15, 2013.

The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a “make-whole” premium as specified in the Indenture. These Notes and the guarantees of the notes are senior obligations of the Company and the Guarantors, respectively, rank equally in right of payment with future senior indebtedness of the Company and the Guarantors and will mature on October 15, 2020.

- 13 -

GLATFELTER

9.30.14 Form 10-Q

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of September 30, 2014, we met all of the requirements of our debt covenants.

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, entered into two separate agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”). Pursuant to the first agreement, dated April 11, 2013, Gernsbach borrowed approximately €42.7 million (or $57.6 million) aggregate principal amount (the “2013 IKB Loan”). The 2013 IKB Loan is repayable in 32 quarterly installments beginning on June 30, 2015 and ending on March 31, 2023 and bears interest at a rate of 2.05% per annum.

Pursuant to the second agreement with IKB dated September 4, 2014, Gernsbach borrowed €10.0 million (or $12.6 million) aggregate principal amount (the “2014 IKB Loan”). The 2014 IKB Loan is repayable in 27 quarterly installments beginning on September 30, 2015 and ending on June 30, 2022 and bears interest at a rate of 2.40% per annum. Interest on the IKB Loan or portion thereof is payable quarterly in each year of the term of the loan with interest accruing from the date the loan or portion thereof is drawn.

The IKB loans provide for representations, warranties and covenants customary for financings of these types. The financial covenants contained in each of the IBK loans, which relate to the minimum ratio of consolidated EBITDA to consolidated interest expense and the maximum ratio of consolidated total net debt to consolidated adjusted EBITDA, will be calculated by reference to our Amended and Restated Credit Agreement, dated November 21, 2011.

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries, including each of the IKB loans. All such obligations are recorded in these condensed consolidated financial statements.

As of September 30, 2014 and December 31, 2013, we had $5.2 million of letters of credit issued to us by certain financial institutions. 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. 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.

13. ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first nine months of 2014 and 2013:

In thousands	2014			2013
Balance at January 1,	$	5,032		$	8,882
Accretion		115			234
Payments		(767	)		(2,719	)
Gain		(128	)		(1,255	)
Balance at September 30,	$	4,252		$	5,142

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2014		2013
Other current liabilities	$	2,905	$	915
Other long-term liabilities		1,347		4,117
Total	$	4,252	$	5,032

- 14 -

GLATFELTER

9.30.14 Form 10-Q

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

	September 30, 2014				December 31, 2013
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Fixed-rate bonds	$	250,000	$	257,033	$	250,000	$	254,533
2.40% Term loan	$	12,592	$	12,910		—		—
2.05% Term loan		53,768		54,025		58,785		57,952
Variable rate debt		93,810		93,810		133,540		133,540
Total	$	410,170	$	417,778	$	442,325	$	446,025

As of September 30, 2014, and December 31, 2013, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 15.

15. 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”; 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.”

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 expected to be incurred over a maximum of twelve months. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases or certain production costs with exposure to changes in foreign currency exchange rates. The effective portion of 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 and is subsequently reclassified into costs of products sold in the period that inventory produced using the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly to earnings and reflected in the accompanying condensed consolidated statements of income as non-operating income (expense) under the caption “Other-net.”

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	September 30 2014		December 31 2013
Derivative	Buy Notional
Sell / Buy
Euro / U.S. dollar		22,631		27,105
U.S. dollar / Canadian dollar		8,124		13,077
Euro / Philippine peso		439,675		—
British Pound / Philippine peso		243,310		—
Euro / British Pound		3,358		—

These contracts have maturities of twelve months or less.

Derivatives Not Designated as Hedging Instruments - Foreign Currency Hedges We also enter 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	September 30 2014			December 31 2013
Derivative	Sell (Buy) Notional
Sell / Buy
U.S. dollar / British Pound		11,000			6,000
Euro / British Pound		(9,000	)		(8,000	)
Euro / British Pound		2,000			5,000
Canadian dollar / U.S. dollar		2,000			2,000
U.S. dollar / Euro		—			2,000
Euro / U.S. dollar		—			9,000

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

- 15 -

GLATFELTER

9.30.14 Form 10-Q

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	September 30 2014		December 31 2013		September 30 2014		December 31 2013
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	2,106	$	—	$	166	$	1,163
Not designated as hedging:
Forward foreign currency exchange contracts	$	10	$	36	$	73	$	46

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 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 September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(137	)	$	(384	)	$	(1,227	)	$	(641	)
Ineffective portion – other – net		81			49			181			74
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	595		$	(348	)	$	1,792		$	(794	)

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

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.”

- 16 -

GLATFELTER

9.30.14 Form 10-Q

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2014			2013
Balance at January 1,	$	(1,296	)	$	(599	)
Deferred (losses) gains on cash flow hedges		2,223			(778	)
Reclassified to earnings		1,227			641
Balance at September 30,	$	2,154		$	(736	)

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be realized in results of operations within the next twelve 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.

16. SHARE REPURCHASES

The following table summarizes share repurchases made pursuant to a $50 million share repurchase program which expires in May 2016:

	shares		(thousands)
Authorized amount		n/a	$	50,000
Repurchases		755,310		(16,627	)
Remaining authorization			$	33,373

The amounts set forth above include 464,190 shares at a cost of $12.2 million of repurchases completed in 2014.

17. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River – Neenah, Wisconsin

Background. We have significant uncertainties 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”).

After giving effect to settlements reached with the Governments, the remaining potentially responsible parties (“PRPs”) consist of us, Georgia-Pacific Consumer Products, L.P. (formerly known as Fort James Operating Company), and NCR Corporation (“NCR”).

The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream and portion of the site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

The Site has been subject to certain studies and the parties conducted certain demonstration projects and completed certain interim cleanups. The permanent cleanup, known as a “remedial action” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), consists of sediment dredging, installation of engineered caps, and placement of sand covers in various areas in the bed of the river.

We and WTM I Company implemented the remedial action in OU1 under a consent decree with the Governments; Menasha Corporation made a financial contribution to that work. That project began in 2004 and the work is complete other than on-going monitoring and maintenance.

For the downstream portion of the Site, referred to as OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions have been funded, to date, primarily by NCR and its indemnitors, including Appvion, Inc. (formerly known as Appleton Papers Inc.). Work is scheduled to continue in OU2-5 through 2017, with monitoring and maintenance to follow.

Although we have not contributed funds towards remedial actions other than in OU1, as more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $500 million for OU2-5.

- 17 -

GLATFELTER

9.30.14 Form 10-Q

The Governments previously indicated their expectation to have work in OU2-5 completed at a rate estimated to cost at least $70 million in 2015 and 2016 and at lower rates thereafter. We understand the cost for the 2015 dredging season may total nearly $90 million.

As the result of a partial settlement, Georgia-Pacific has no obligation to pay for work upstream of a line near Georgia-Pacific’s Green Bay West Mill located in OU4. We believe substantially all in-water work upstream of this line has been completed as of the end of the 2014 dredging season.

NRDs. The Governments’ NRD assessment documents originally claimed we are jointly and severally responsible for NRDs with a value between $176 million and $333 million. The Governments claimed this range should be inflated to current dollars and then certain unreimbursed past assessment costs should be added, so the range of their claim was $287 million to $423 million in 2009.

However, on October 14, 2014, the Governments represented to the district court that if certain settlements providing $45.9 million toward compensation of NRDs were approved the total NRD recovery would amount to $105 million. The Governments would consider those recoveries adequate and they would withdraw their claims against us and NCR for additional compensation of NRDs. Some of the settling parties, including all of the settling parties contributing the $45.9 million, have waived their rights to seek contribution from us of the settlement amounts. We previously paid a portion of the other $59 million in earlier settlements.

Allocation Litigation. In January 2008, NCR and Appvion brought an action in the federal district court in Green Bay to allocate among all of the parties responsible for this Site all of the costs incurred by the Governments, all of the costs incurred by the parties, and all of the NRDs owed to the Natural Resource Trustees. We have previously referred to this case as the “Whiting Litigation.” After several summary judgment rulings and a trial, the trial court entered judgment in the Whiting Litigation, allocating to NCR 100 percent of the costs (a) of the OU2-5 cleanup, (b) NRDs, (c) past and future costs incurred by the Governments in OU2-5, and (d) past and future costs incurred by any of the other parties net of an appropriate equitable adjustment for insurance recoveries. As to Glatfelter, NCR was judged liable to us for $4.28 million and any future costs or damages we may incur. NCR was held not responsible for costs incurred in OU1.

All parties appealed the Whiting Litigation judgment to the United States Court of Appeals for the Seventh Circuit. On September 25, 2014, that court affirmed, holding that if knowledge and fault were the only equitable factors governing allocation of costs and NRDs at the Site, NCR would owe 100% of all costs and damages in OU2-5, but would not have a share of costs in OU1, which is upstream of the outfall of the facilities for which NCR is responsible. However, the court of appeals vacated the judgment and remanded the case for the district court’s further consideration of whether any other equitable factors might cause the district court to alter its allocation. We contend the district court should, after further consideration, reinstate the 100%, or some similar very high, allocation to NCR of all the costs, and we should bear no share or a very small share.

However, in the interim NCR may take a contrary position and seek contributions from others for future work until all allocation issues are resolved. In order to ensure compliance with the UAO and to ensure work continues in OU2-5, in the absence of an agreement amongst us, NCR and Georgia-Pacific, it is possible the Governments may attempt to force the funding while a final allocation in the Whiting Litigation is pursued. We cannot predict the outcome of any such actions or any possible resulting litigation. Therefore, in the interim it is conceivable we may be required to contribute resources to fund a portion of the annual cost of remedial actions in OU2-5. Although we are unable to determine with any degree of certainty the amount we may fund, such amounts could be significant. Any amounts we pay or any other party pays in the interim are likely to be subject to reallocation when the Whiting Litigation is resolved. We do not know the timing of further proceedings in the Whiting Litigation, nor can we predict when it will be finally resolved.

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party rather than as a consequence of Appvion’s obligations to NCR, then Appvion may have a right to recover those costs under CERCLA. We contend Appvion has no such costs, and if it did, we would have a right to contribution of any recovery against NCR and others.

Enforcement Litigation. In October 2010, the United States and the State of Wisconsin brought an action (“Government Action”) in the federal district court in Green Bay against us and 13 other defendants seeking (a) to recover all of their unreimbursed past costs, (b) a declaration of joint and several liability for all of their future costs, (c) NRDs, and (d) a declaration of liability of all of the respondents on the UAO to perform the remedy

- 18 -

GLATFELTER

9.30.14 Form 10-Q

in OU2-5 as required by the UAO and a mandatory permanent injunction to the same effect. The last of these claims was tried in 2012, and in May 2013, the district court enjoined us, NCR, WTM I, and Menasha Corp. to perform the work under the UAO. As the result of partial settlements, U.S. Paper Mills Corp. and Georgia-Pacific Consumer Products L.P. agreed to joint and several liability for some of the work. Appvion was held not liable for this Site under CERCLA.

All other potentially responsible parties, including the United States and the State of Wisconsin, have either settled with the Governments or entered into a consent decree that awaits approval from the United States and then the district court. As a result, the remaining defendants consist of us, NCR, and Georgia-Pacific.

We appealed the injunction to the United States Court of Appeals for the Seventh Circuit, as did NCR, WTM I, and Menasha. On September 25, 2014, the court of appeals decided our and NCR’s appeals; the others’ appeals were not decided because they have entered into a settlement that awaits approval. The court of appeals vacated the injunction as to us and NCR. However, it affirmed the district court’s ruling that we are liable for response actions in OU2-5 and for complying with the UAO.

Except as described above with respect to the claim for NRDs, we do not know the Governments’ intentions concerning further litigation of the Government Action, nor do we know the schedule for any further proceedings. We cannot now predict when it will be resolved.

Reserves for the Site. As of September 30, 2014, our reserve for the Site totaled $16.3 million, including our remediation and ongoing monitoring obligations in OU1, our share of remediation of the rest of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination at the Site. Of our total reserve for the Fox River, $0.1 million is recorded in the accompanying condensed consolidated balance sheets under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.” In the event we are required to fund remediation activities in OU2-5, such developments would affect the classification of the current portion of our reserve.

As described above, the appellate court vacated and remanded for reconsideration the district court’s ruling in the Whiting Litigation that NCR would bear 100% of costs for the downstream portion of the Site. We continue to believe we will not be allocated a significant share of liability in any final equitable allocation of the response costs for OU2-5 or for NRDs. The accompanying condensed consolidated financial statements do not include reserves for any future defense costs, which could be significant, related to our involvement at the Site.

In setting our reserve for the Site, we have assessed our legal defenses, including our successful defenses to the allegations made in the Whiting Litigation and the original determination in the Whiting Litigation that NCR owes us “full contribution” for response costs and for NRDs that we may become obligated to pay except in OU1. We assume we will not bear the entire cost of remediation or damages to the exclusion of other known parties at the Site, who are also jointly and severally liable. The existence and ability of other parties to participate has also been taken into account in setting our reserve, and setting our reserve is generally based on our evaluation of recent publicly available financial information on certain of the responsible parties and any known insurance, indemnity or cost sharing agreements between responsible parties and third parties. In addition, we have considered the magnitude, nature, location and circumstances associated with the various discharges of PCBs to the river and the relationship of those discharges to identified contamination. We will continue to evaluate our exposure and the level of our reserves, including, but not limited to, our potential share of the costs and NRDs, if any, associated with the Site.

Other Information. The Governments have published studies estimating the amount of PCBs discharged by each identified potentially responsible party to the lower Fox River and Green Bay. These reports estimate our Neenah mill’s share of the mass of PCBs discharged to be as high as 27 percent. The district court has found the discharge mass estimates used in these studies not to be accurate. We believe the Neenah mill’s absolute and relative contribution of PCB mass is significantly lower than the estimates set forth in these studies. The trial court in the Government Action has found that the Neenah mill discharged an unknown amount of PCBs.

Based upon the rulings in the Whiting Litigation and the Government Action, neither of which endorsed an equitable allocation in proportion to the mass of PCBs discharged, we continue to believe an allocation in proportion to mass of PCBs discharged would not constitute an equitable allocation of the potential liability for the contamination at the Fox River. We contend other factors, such as a party’s role in causing costs, the location of discharge, and the location of contamination must be considered in order for the allocation to be equitable.

- 19 -

GLATFELTER

9.30.14 Form 10-Q

Range of Reasonably Possible Outcomes. Our analysis of the range of reasonably possible outcomes is derived from all available information, including but not limited to decisions of the courts, official documents such as records of decision, discussions with the United States and other parties, as well as legal counsel and engineering consultants. Based on our analysis of the current records of decision and cost estimates for work to be performed at the Site, and substantially dependent on the resolution of the allocation arguments discussed above, we believe it is reasonably possible that our costs associated with the Fox River matter could exceed the aggregate amounts accrued for the Fox River matter by amounts ranging from insignificant to $185 million.

We expect remediation costs to be incurred primarily over the next two to three years, although we are unable to determine with any degree of certainty whether we will be required to share in the funding of the downstream remediation. We believe the likelihood of an outcome in the upper end of the monetary range is significantly less than other possible outcomes within the range and the possibility of an outcome in excess of the upper end of the monetary range is remote.

However, we cannot predict the outcome of any actions related to interim funding. To the extent we are required to provide any such interim funding, we contend that NCR or another party would be required to reimburse us once the final allocation is determined.

Summary. Our current assessment is we will be able to manage this environmental matter without a long-term, material adverse impact on the Company. This matter could, however, at any particular time or for any particular year or years, have a material adverse effect on our consolidated financial position, liquidity and/or results of operations or could result in a default under our debt covenants. Moreover, there can be no assurance our reserves will be adequate to provide for future obligations related to this matter, or our share of costs and/or damages will not exceed our available resources, or those obligations will not have a long-term, material adverse effect on our consolidated financial position, liquidity or results of operations. Should a court grant the United States or the State of Wisconsin relief requiring us individually either to perform directly or to contribute significant amounts towards remedial action downstream of Little Lake Butte des Morts those developments could have a material adverse effect on our consolidated financial position, liquidity and results of operations and might result in a default under our loan covenants.

- 20 -

GLATFELTER

9.30.14 Form 10-Q

18. SEGMENT INFORMATION

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	154.5	$	161.5	$	74.4	$	69.5	$	236.2	$	225.7	$	—		$	—		$	465.1		$	456.6
Energy and related sales, net		—		—		—		—		0.9		1.2		—			—			0.9			1.2
Total revenue		154.5		161.5		74.4		69.5		237.1		226.9		—			—			466.0			457.8
Cost of products sold		123.7		129.5		64.7		63.7		195.2		196.4		1.8			2.3			385.4			391.8
Gross profit (loss)		30.8		31.9		9.7		5.8		41.9		30.5		(1.8	)		(2.3	)		80.5			66.0
SG&A		12.6		13.0		2.2		1.9		14.1		12.5		9.0			7.1			37.9			34.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(1.6	)		(0.3	)		(1.6	)		(0.3	)
Total operating income (loss)		18.1		18.9		7.5		3.9		27.8		18.1		(9.2	)		(9.1	)		44.2			31.8
Non-operating expense		—		—		—		—		—		—		(4.8	)		(4.7	)		(4.8	)		(4.7	)
Income (loss) before income taxes	$	18.1	$	18.9	$	7.5	$	3.9	$	27.8	$	18.1	$	(14.0	)	$	(13.8	)	$	39.4		$	27.1
Supplementary Data
Net tons sold (thousands)		40.1		40.3		26.3		24.8		208.4		203.6		—			—			274.7			268.7
Depreciation, depletion and amortization	$	7.4	$	7.1	$	2.3	$	2.2	$	6.5	$	8.3	$	0.5		$	0.4		$	16.7		$	18.0
Capital expenditures		5.4		12.8		1.3		0.8		9.7		11.1		0.5			0.7			16.9			25.3
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	470.1	$	415.9	$	216.2	$	202.2	$	679.9	$	669.8	$	—		$	—		$	1,366.2		$	1,287.8
Energy and related sales, net		—		—		—		—		6.9		2.7		—			—			6.9			2.7
Total revenue		470.1		415.9		216.2		202.2		686.8		672.5		—			—			1,373.1			1,290.5
Cost of products sold		376.7		334.5		189.9		182.0		624.3		599.7		5.2			10.0			1,196.1			1,126.3
Gross profit (loss)		93.4		81.3		26.3		20.1		62.5		72.8		(5.2	)		(10.0	)		177.0			164.3
SG&A		38.8		34.4		6.8		6.4		39.5		40.3		18.7			21.3			103.8			102.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(3.9	)		(0.4	)		(3.9	)		(0.4	)
Total operating income (loss)		54.6		46.9		19.5		13.7		23.0		32.5		(20.0	)		(31.0	)		77.1			62.1
Non-operating expense		—		—		—		—		—		—		(14.0	)		(12.5	)		(14.0	)		(12.5	)
Income (loss) before income taxes	$	54.6	$	46.9	$	19.5	$	13.7	$	23.0	$	32.5	$	(34.0	)	$	(43.5	)	$	63.1		$	49.6
Supplementary Data
Net tons sold (thousands)		119.5		97.9		76.0		72.4		601.3		601.6		—			—			796.8			771.9
Depreciation, depletion and amortization	$	22.7	$	17.7	$	6.9	$	6.6	$	22.6	$	24.9	$	1.3		$	0.8		$	53.5		$	50.0
Capital expenditures		16.7		49.0		4.1		4.8		24.5		27.9		1.7			4.4			47.0			86.1

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

On April 30, 2013, we completed the acquisition of Dresden for $211 million. Dresden’s results are included prospectively from the acquisition date as part of the Composite Fibers business unit. For additional information related to this acquisition, refer to Note 3 – Acquisition.

- 21 -

GLATFELTER

9.30.14 Form 10-Q

19. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Our 5.375% Notes issued by P. H. Glatfelter Company (the “Parent”) are fully and unconditionally guaranteed, on a joint and several basis, by certain of our 100%-owned domestic subsidiaries, PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC. The guarantees are subject to certain customary release provisions including i) the designation of such subsidiary as an unrestricted or excluded subsidiary; (ii) in connection with any sale or disposition of the capital stock of the subsidiary guarantor; and (iii) upon our exercise of our legal defeasance option or our covenant defeasance option, all of which are more fully described in the Indenture dated as of October 3, 2012 among us, the Guarantors and US Bank National Association, as Trustee, relating to the 5.375% Notes. The following presents our condensed consolidating statements of income, including comprehensive income for the three months and nine months ended September 30, 2014 and 2013, our condensed consolidating balance sheets as of September 30, 2014 and December 31, 2013 and condensed consolidating cash flows for the nine months ended September 30, 2014 and 2013. These financial statements reflect the parent, the guarantor subsidiaries (on a combined basis), the non-guarantor subsidiaries (on a combined basis) and elimination entries necessary to combine such entities on a consolidated basis. Effective December 31, 2013, Glatfelter Pulpwood Company, previously a guarantor, was merged with and into the parent. Accordingly, all condensed consolidating financial statements have been restated to give effect to this merger as of the earliest period presented. In addition, the amounts of intercompany investing and financing activities and the related interest expense and interest income previously presented net for the nine months ended September 30, 2013 have been presented on a gross basis to conform to the current year’s presentation.

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	7		$	228,910		$	(7	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			7			228,910			(7	)		465,952
Costs of products sold		196,888			7			188,551			(7	)		385,439
Gross profit		40,154			—			40,359			—			80,513
Selling, general and administrative expenses		19,352			306			18,228			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income (loss)		22,392			(306	)		22,131			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Other, net		14,491			90,952			202			(105,812	)		(167	)
Total other non-operating income (expense)		9,853			180,903			(89,751	)		(105,813	)		(4,808	)
Income (loss) before income taxes		32,245			180,597			(67,620	)		(105,813	)		39,409
Income tax provision		1,873			470			6,694			—			9,037
Net income (loss)		30,372			180,127			(74,314	)		(105,813	)		30,372
Other comprehensive income (loss)		(29,577	)		(25,844	)		16,924			8,920			(29,577	)
Comprehensive income (loss)	$	795		$	154,283		$	(57,390	)		96,893		$	795

- 22 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	225,690		$	3		$	230,958		$	(3	)	$	456,648
Energy and related sales, net		1,196			—			—			—			1,196
Total revenues		226,886			3			230,958			(3	)		457,844
Costs of products sold		199,596			3			192,209			(3	)		391,805
Gross profit		27,290			—			38,749			—			66,039
Selling, general and administrative expenses		16,203			190			18,087			—			34,480
(Gains) loss on dispositions of plant, equipment and timberlands, net		(285	)		—			3			—			(282	)
Operating income (loss)		11,372			(190	)		20,659			—			31,841
Other non-operating income (expense)
Interest expense		(4,721	)		—			(2,537	)		2,470			(4,788	)
Interest income		183			2,376			3			(2,470	)		92
Other, net		18,341			103			(587	)		(17,891	)		(34	)
Total other non-operating income (expense)		13,803			2,479			(3,121	)		(17,891	)		(4,730	)
Income before income taxes		25,175			2,289			17,538			(17,891	)		27,111
Income tax provision (benefit)		(8,944	)		(891	)		2,827			—			(7,008	)
Net income		34,119			3,180			14,711			(17,891	)		34,119
Other comprehensive income (loss)		17,903			6,400			(219	)		(6,181	)		17,903
Comprehensive income	$	52,022		$	9,580		$	14,492		$	(24,072	)	$	52,022

- 23 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	28		$	686,277		$	(28	)	$	1,366,154
Energy and related sales – net		6,912			—			—			—			6,912
Total revenues		686,789			28			686,277			(28	)		1,373,066
Costs of products sold		629,360			28			566,716			(28	)		1,196,076
Gross profit		57,429			—			119,561			—			176,990
Selling, general and administrative expenses		53,699			462			49,590			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		6,295			854			69,971			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Other, net		54,789			90,973			1,673			(147,330	)		105
Total other non-operating income (expense)		40,973			186,138			(93,777	)		(147,331	)		(13,997	)
Income (loss) before income taxes		47,268			186,992			(23,806	)		(147,331	)		63,123
Income tax provision (benefit)		(2,421	)		2,098			13,757			—			13,434
Net income (loss)		49,689			184,894			(37,563	)		(147,331	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	158,502		$	(18,656	)	$	(139,846	)	$	26,103

- 24 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	669,792		$	15		$	618,012		$	(15	)	$	1,287,804
Energy and related sales, net		2,721			—			—			—			2,721
Total revenues		672,513			15			618,012			(15	)		1,290,525
Costs of products sold		609,524			15			516,747			(15	)		1,126,271
Gross profit		62,989			—			101,265			—			164,254
Selling, general and administrative expenses		54,256			293			47,946			—			102,495
Gains on dispositions of plant, equipment and timberlands, net		(374	)		—			—			—			(374	)
Operating income (loss)		9,107			(293	)		53,319			—			62,133
Other non-operating income (expense)
Interest expense		(14,141	)		—			(5,008	)		6,006			(13,143	)
Interest income		443			5,791			12			(6,006	)		240
Other, net		42,437			94			868			(43,011	)		388
Total other non-operating income (expense)		28,739			5,885			(4,128	)		(43,011	)		(12,515	)
Income before income taxes		37,846			5,592			49,191			(43,011	)		49,618
Income tax provision (benefit)		(12,835	)		419			11,353			—			(1,063	)
Net income		50,681			5,173			37,838			(43,011	)		50,681
Other comprehensive income		17,319			3,171			(5,078	)		1,907			17,319
Comprehensive income	$	68,000		$	8,344		$	32,760		$	(41,104	)	$	68,000

- 25 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Balance Sheet as of

September 30, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	20,308	$	93		$	33,254		$	—		$	53,655
Other current assets		238,216		420,388			313,091			(471,667	)		500,028
Plant, equipment and timberlands, net		250,066		998			440,576			—			691,640
Other assets		1,007,426		304,088			191,166			(1,151,259	)		351,421
Total assets	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744
Liabilities and Shareholders’ Equity
Current liabilities	$	400,103	$	5,026		$	323,128		$	(476,317	)	$	251,940
Long-term debt		250,000		—			749,491			(593,131	)		406,360
Deferred income taxes		73,961		(628	)		70,076			(12,732	)		130,677
Other long-term liabilities		103,772		—			11,792			4,023			119,587
Total liabilities		827,836		4,398			1,154,487			(1,078,157	)		908,564
Shareholders’ equity		688,180		721,169			(176,400	)		(544,769	)		688,180
Total liabilities and shareholders’ equity	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744

Condensed Consolidating Balance Sheet as of

December 31, 2013

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	56,216	$	501		$	66,165	$	—		$	122,882
Other current assets		208,814		327,152			253,779		(326,045	)		463,700
Plant, equipment and timberlands, net		247,243		1,054			475,043		—			723,340
Other assets		973,748		236,411			214,301		(1,055,972	)		368,488
Total assets	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410
Liabilities and Shareholders’ Equity
Current liabilities	$	375,535	$	2,855		$	247,855	$	(337,878	)	$	288,367
Long-term debt		250,000		—			513,120		(320,795	)		442,325
Deferred income taxes		70,989		(283	)		78,633		(8,319	)		141,020
Other long-term liabilities		105,021		—			13,792		3,409			122,222
Total liabilities		801,545		2,572			853,400		(663,583	)		993,934
Shareholders’ equity		684,476		562,546			155,888		(718,434	)		684,476
Total liabilities and shareholders’ equity	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410

- 26 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,368		$	17,300		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net repayments of indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Payments related to share-based comp- ensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(408	)		(32,911	)		—			(69,227	)
Cash at the beginning of period		56,216			501			66,165			—			122,882
Cash at the end of period	$	20,308		$	93		$	33,254		$	—		$	53,655

- 27 -

GLATFELTER

9.30.14 Form 10-Q

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	30,380		$	10,857		$	54,247		$	209		$	95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(32,075	)		—			(53,805	)		(209	)		(86,089	)
Proceeds from disposal plant, equipment and timberlands, net		379			—			—			—			379
Repayments from intercompany loans		—			15,100			—			(15,100	)		—
Advances of intercompany loans		—			(30,066	)		—			30,066			—
Intercompany capital contributed		—			(91	)		—			91			—
Acquisitions, net of cash acquired		—			—			(210,911	)		—			(210,911	)
Other		(325	)		—			—			—			(325	)
Total investing activities		(32,021	)		(15,057	)		(264,716	)		14,848			(296,946	)
Financing activities
Net proceeds from indebtedness		—			—			182,230			—			182,230
Payments of note offering costs		(160	)		—			(259	)		—			(419	)
Payment of dividends to shareholders		(12,603	)		—			—			—			(12,603	)
Repayments of intercompany loans		(1,100	)		—			(14,000	)		15,100			—
Borrowings of intercompany loans		8,570			—			21,496			(30,066	)		—
Intercompany capital received		—			—			91			(91	)		—
Proceeds from stock options exercised and other		(2,332	)		—			—			—			(2,332	)
Total financing activities		(7,625	)		—			189,558			(15,057	)		166,876
Effect of exchange rate on cash		—			—			333			—			333
Net decrease in cash		(9,266	)		(4,200	)		(20,578	)		—			(34,044	)
Cash at the beginning of period		43,781			4,278			49,620			—			97,679
Cash at the end of period	$	34,515		$	78		$	29,042		$	—		$	63,635

20. SUBSEQUENT EVENT

On October 1, 2014, we completed the acquisition of all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for $10.7 million in cash. SPO has annual sales of approximately $33 million. SPO, located near Frankfurt, Germany, produces primarily electrical products and applications include highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables

and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags. SPO will become part of the Composite Fibers business unit, and complements other technical specialties such as the electrical products sector.

- 28 -

GLATFELTER

9.30.14 Form 10-Q

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 2013 Annual Report on 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 regarding expectations of, among others, shipping volumes, selling prices, input costs, non-cash pension expense, environmental costs, capital expenditures and liquidity, 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. variations in demand for our products including the impact of any unplanned market-related downtime, or variations in product pricing;

ii. changes in the cost or availability of raw materials we use, in particular pulpwood, pulp, pulp substitutes, caustic soda, and abaca fiber;

iii. changes in energy-related costs and commodity raw materials with an energy component;

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

v. the impact of exposure to volatile market-based pricing for sales of excess electricity;

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

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

viii. cost and other effects of environmental compliance, cleanup, damages, remediation or restoration, or personal injury or property damages related thereto, such as the costs of natural resource restoration or damages related to the presence of polychlorinated biphenyls (“PCBs”) in the lower Fox River on which our former Neenah mill was located;

ix. adverse results in litigation in the Fox River matter;

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

xi. geopolitical events, including war and terrorism;

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

xiii. the impact of unfavorable outcomes of audits by various state, federal or international tax authorities;

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

xv. our ability to finance, consummate and integrate acquisitions.

We manufacture a wide array of specialty papers and fiber-based engineered materials. We manage our company along three business units:

• Composite Fibers with revenue from the sale of single-serve coffee and tea filtration papers, non-woven wall covering, metallized papers, composite laminates, and other technical specialty papers;

• Advanced Airlaid Materials with revenue from the sale of airlaid non-woven fabric like materials used in feminine hygiene products, adult incontinence products, cleaning pads, food pads, napkins, tablecloths, and baby wipes; and

• Specialty Papers with revenue from the sale of carbonless papers, forms, book publishing, envelope & converting papers, and fiber-based engineered products.

- 29 -

GLATFELTER

9.30.14 Form 10-Q

RESULTS OF OPERATIONS

Nine months ended September 30, 2014 versus the nine months ended September 30, 2013

Overview For the first nine months of 2014, net income was $49.7 million, or $1.13 per diluted share, compared with $50.7 million, or $1.15 per diluted share, in the same period of 2013. On an adjusted earnings basis, a non-GAAP measure that excludes non-core business items discussed below, earnings per share increased to $1.11 compared with $1.06 in 2013. The year-over-year comparison of results of operations reflects the adverse impact, primarily in the first quarter of 2014, of significant additional costs related to poor pulp mill performance issues in Ohio, severe weather conditions and, during the second quarter, higher planned costs related to annual maintenance outages which led to unfavorable results compared to the prior year.

The following table sets forth summarized results of operations:

	Nine months ended September 30
In thousands, except per share	2014		2013
Net sales	$	1,366,154	$	1,287,804
Gross profit		176,990		164,254
Operating income		77,120		62,133
Net income		49,689		50,681
Earnings per diluted share		1.13		1.15

Our results reflect benefits from our two growth businesses as they delivered a combined 11% increase in net sales. Composite Fibers, driven by the previously acquired Dresden business, and Advanced Airlaid Materials reported improved operating profit of 16% and 42%, respectively, over the prior year period. In addition, our results benefited from the release of tax reserves related to alternative fuel mixture credits of $1.0 million in the first nine months of 2014 and $9.9 million in the same period of 2013.

Effective April 30, 2013, we completed the acquisition of Dresden Papier GmbH (“Dresden”) for approximately $211 million, net of cash acquired. Our reported results include Dresden prospectively from the acquisition date, including $118.4 million of net sales and $23.6 million of operating profit for the first nine months of 2014. The comparable amounts for the year earlier period were $67.8 million and $12.3 million, respectively.

In addition to the results reported in accordance with GAAP, we evaluate our performance using adjusted net income and adjusted earnings per diluted 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 that it is helpful in understanding underlying operating trends and cash flow generation. Adjusted net income consists of net income determined in accordance with GAAP adjusted to exclude the impact of the following:

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 significantly impact our operating performance. As such, these items may not be indicative of past and future performance of the Company and therefore are excluded for comparability purposes.

Alternative fuel mixture/Cellulosic biofuel credits. These adjustments reflect the release of reserves for uncertain tax position due to the lapse of statutes of limitation.

Asset impairment charge. This adjustment represents a non-cash charge required to adjust to its estimated fair value the carrying value of a trade name intangible asset. Charges of this nature are irregular in timing and as such may not be indicative of our past and future performance.

Acquisition and integration related costs. These adjustments include costs directly related to the consummation of the acquisition process and those related to integrating recently acquired businesses. These costs are irregular in timing and as such may not be indicative of our past and future performance.

International legal entity restructuring costs. These adjustments include costs that are directly related to actions undertaken to improve the flexibility of the organizational structure to support our growth initiatives. As such, these items are considered to be unusual in nature and not indicative of our past and future and are therefore excluded for the purpose of understanding underlying operating trends.

- 30 -

GLATFELTER

9.30.14 Form 10-Q

Adjusted earnings per diluted share is calculated by dividing adjusted net income by diluted weighted-average shares outstanding. Adjusted earnings and adjusted earnings per diluted share are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. These non-GAAP measures may differ from other companies. 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 for the reconciliation of net income to adjusted earnings for the nine months ended September 30, 2014 and 2013:

In thousands, except per share	After-tax amounts			Diluted EPS
2014
Net income	$	49,689		$	1.13
Timberland sales and related costs		(2,381	)		(0.05	)
Alternative fuel mixture/ Cellulosic biofuel credits		(1,032	)		(0.02	)
Asset impairment charge		2,356			0.05
Acquisition and integration related costs		115			—
Adjusted earnings (non-GAAP)	$	48,747		$	1.11
2013
Net income	$	50,681		$	1.15
Timberland sales and related costs		(424	)		(0.01	)
Alternative fuel mixture/Cellulosic biofuel credits		(9,866	)		(0.22	)
Acquisition and integration related costs		5,884			0.13
International legal entity restructuring costs		570			0.01
Adjusted earnings (non-GAAP)	$	46,845		$	1.06

Our growth-oriented fiber-based materials businesses reported improved results evidenced by a $13.5 million increase in operating profit. However, Specialty Papers operating income declined $9.5 million reflecting the impact of the operational issues and higher costs of maintenance outages.

Composite Fibers’ operating income increased to $54.6 million from $46.9 million in the first nine months of 2013 primarily due to the inclusion of Dresden. Excluding Dresden, shipping volumes declined 2.7% although the mix improved. This unit’s results were adversely impacted by softness in certain markets or regions it sells to such as Russia and Ukraine.

Advanced Airlaid Materials’ operating income increased to $19.5 million compared with $13.7 million for the first nine months of 2013. The improved performance was largely driven by a 5.0% increase in shipping volumes.

Specialty Papers’ operating profit for the first nine months of 2014 totaled $23.0 million compared with $32.5 million in the same period of 2013. Volumes shipped were essentially unchanged in the comparison, although selling prices increased.

- 31 -

GLATFELTER

9.30.14 Form 10-Q

Business Unit Performance

Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	470.1	$	415.9	$	216.2	$	202.2	$	679.9	$	669.8	$	—		$	—		$	1,366.2		$	1,287.8
Energy and related sales, net		—		—		—		—		6.9		2.7		—			—			6.9			2.7
Total revenue		470.1		415.9		216.2		202.2		686.8		672.5		—			—			1,373.1			1,290.5
Cost of products sold		376.7		334.5		189.9		182.0		624.3		599.7		5.2			10.0			1,196.1			1,126.3
Gross profit (loss)		93.4		81.3		26.3		20.1		62.5		72.8		(5.2	)		(10.0	)		177.0			164.3
SG&A		38.8		34.4		6.8		6.4		39.5		40.3		18.7			21.3			103.8			102.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(3.9	)		(0.4	)		(3.9	)		(0.4	)
Total operating income (loss)		54.6		46.9		19.5		13.7		23.0		32.5		(20.0	)		(31.0	)		77.1			62.1
Non-operating expense		—		—		—		—		—		—		(14.0	)		(12.5	)		(14.0	)		(12.5	)
Income (loss) before income taxes	$	54.6	$	46.9	$	19.5	$	13.7	$	23.0	$	32.5	$	(34.0	)	$	(43.5	)	$	63.1		$	49.6
Supplementary Data
Net tons sold (thousands)		119.5		97.9		76.0		72.4		601.3		601.6		—			—			796.8			771.9
Depreciation, depletion and amortization	$	22.7	$	17.7	$	6.9	$	6.6	$	22.6	$	24.9	$	1.3		$	0.8		$	53.5		$	50.0
Capital expenditures		16.7		49.0		4.1		4.8		24.5		27.9		1.7			4.4			47.0			86.1

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

Business Units Results of individual business units 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 business units are not necessarily comparable with similar information for any other company. The management accounting process uses assumptions and allocations to measure performance of the business units. 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 business unit are allocated primarily based on an estimated utilization of support area services or are included in “Other and Unallocated” in the Business Unit Performance table.

Management evaluates results of operations of the business units before pension expense, 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 business units and the extent of cash flow generated from these core operations. Such amounts are presented under the caption “Other and Unallocated.” 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.

- 32 -

GLATFELTER

9.30.14 Form 10-Q

Sales and Costs of Products Sold

	Nine months ended September 30
In thousands	2014			2013			Change
Net sales	$	1,366,154		$	1,287,804		$	78,350
Energy and related sales – net		6,912			2,721			4,191
Total revenues		1,373,066			1,290,525			82,541
Costs of products sold		1,196,076			1,126,271			69,805
Gross profit	$	176,990		$	164,254		$	12,736
Gross profit as a percent of Net sales		13.0	%		12.8	%

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

	Nine months ended September 30
Percent of Total	2014			2013
Business Unit
Composite Fibers		34.4	%		32.3	%
Advanced Airlaid Material		15.8			15.7
Specialty Papers		49.8			52.0
Total		100.0	%		100.0	%

Net sales for the first nine months of 2014 totaled $1,366.2 million, a 6.1% increase compared with the same period of 2013. Excluding the Dresden acquisition, organic growth totaled 2.2%.

Composite Fibers’ net sales totaled $470.1 million in the first nine months of 2014, an increase of $54.2 million compared to the same period of 2013, of which the Dresden acquisition accounted for $50.6 million. The translation of foreign currencies benefited the comparison by $10.9 million; however, lower selling prices adversely impacted the comparison by $8.3 million. On an organic basis, shipping volumes declined 2.7% although the mix was favorable.

Operating income for the first nine months of 2014 increased $7.7 million compared to the year-ago period due to the Dresden acquisition, operating efficiencies and lower raw material and energy costs, partially offset by lower selling prices.

In Advanced Airlaid Materials, net sales increased $14.0 million, or 6.9%, primarily due to a 5.0% increase in shipping volumes. Foreign currency translation favorably impacted the year-over-year net sales comparison by $3.5 million.

Advanced Airlaid Material’s operating income for the first nine months of 2014 increased $5.8 million, or 42.3%, compared with the year-ago period, primarily due to higher shipping volumes and foreign currency translation.

In the Specialty Papers business unit, net sales in the first nine months of 2014 increased $10.1 million compared with the same period of 2013 due to higher selling prices. Higher selling prices favorably affected the comparison by $16.0 million.

Specialty Papers’ reported operating income for the first nine months of 2014 was $9.5 million lower than the same period of 2013. The decline was primarily due to $9.4 million of costs related to pulp mill performance issues at its Ohio facility resulting in higher per ton pulp production costs as well as increased use of higher cost purchased pulp. These performance issues have since been resolved. In addition, the 2014 results were adversely impacted by $6.6 million of costs related to severe weather conditions as well as $6.5 million of higher costs related to the annual maintenance outages. These negative factors were partially offset by higher selling prices and sales of excess power. Energy and related sales increased $4.2 million in the year-over-year comparison as severe weather conditions early in 2014 resulted in higher selling prices for excess power.

We sell excess power generated by the Spring Grove, PA facility. The following table summarizes this activity for the first nine months of 2014 and 2013:

	Nine months ended September 30
In thousands	2014			2013			Change
Energy sales	$	10,714		$	6,379		$	4,335
Costs to produce		(5,288	)		(5,235	)		(53	)
Net		5,426			1,144			4,282
Renewable energy credits		1,486			1,577			(91	)
Total	$	6,912		$	2,721		$	4,191

Renewable energy credits (“RECs”) represent sales of certified credits earned related to burning renewable sources of energy such as black liquor and wood waste. We sell RECs into an emerging and illiquid market. The extent and value of future revenues from REC sales is dependent on many factors outside of management’s control. Therefore, we may not be able to generate consistent additional sales of RECs in future periods.

- 33 -

GLATFELTER

9.30.14 Form 10-Q

Asset impairment charge During the third quarter of 2014, we recorded a $3.3 million non-cash asset impairment charge related to a trade name intangible asset acquired in connection with the 2013 Dresden acquisition. The charge was due to a change in the trade name’s estimated fair value, primarily driven by a substantial increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political instability. The charge is reflected in the accompanying condensed consolidated statements of income under the caption “selling, general and administrative expenses.”

Other and Unallocated The amount of net operating expenses not allocated to a business unit and reported as “Other and Unallocated” in our table of Business Unit Performance, totaled $20.0 million in the first nine months of 2014 compared with $31.0 million in the first nine months of 2013. Excluding the gains from sales of timberlands in the comparison, unallocated net operating expenses decreased $7.5 million primarily due to lower acquisition related costs and lower pension expense, partially offset by the asset impairment charge.

Pension Expense The following table summarizes the amounts of pension expense recognized for the periods indicated:

	Nine months ended September 30
In thousands	2014		2013		Change
Recorded as:
Costs of products sold	$	4,957	$	9,274	$	(4,317	)
SG&A expense		55		1,385		(1,330	)
Total	$	5,012	$	10,659	$	(5,647	)

The amount of pension expense recognized each year is dependent on various actuarial assumptions and certain other factors, including discount rates and the fair value of our pension assets. Pension expense for the full year of 2014 is expected to be approximately $6.7 million compared with $14.2 million in 2013. The decrease is primarily due to higher discount rates and the impact of amortizing deferred actuarial gains from higher returns on assets in 2013.

Income taxes For the first nine months of 2014, we recorded a provision for income taxes of $13.4 million on pretax income of $63.1 million, the comparable amounts in the first nine months of 2013 were income tax benefits of $1.1 million on $49.6 million of pretax income. The amount of taxes recorded in 2014 and 2013 include benefits of $1.0 million and $9.9 million, respectively, from the release of tax reserves related to alternative fuel mixture credits earned in 2009, due to the lapse of the applicable statutes of limitation.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany and France it is the Euro, in the UK, it is the British Pound Sterling, and in the Philippines the functional currency is the Peso. During the first nine months of 2014, Euro functional currency operations generated approximately 33.1% of our sales and 30.4% of operating expenses and British Pound Sterling operations represented 5.9% of net sales and 5.6% of operating expenses. 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 nine months of 2014

In thousands	Nine months ended September 30, 2014
	Favorable (unfavorable)
Net sales	$	14,345
Costs of products sold		(9,909	)
SG&A expenses		(1,077	)
Income taxes and other		(408	)
Net income	$	2,951

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2014 were the same as 2013. It does not present the impact of certain competitive advantages or disadvantages of operating or competing in multi-currency markets.

- 34 -

GLATFELTER

9.30.14 Form 10-Q

Three months ended September 30, 2014 versus the three months ended September 30, 2013

Overview For the third quarter of 2014, net income was $30.4 million, or $0.69 per diluted share, compared with $34.1 million, or $0.77 per diluted share in the third quarter of 2013.

The following table sets forth summarized results of operations:

	Three months ended September 30
In thousands, except per share	2014		2013
Net sales	$	465,092	$	456,648
Gross profit		80,513		66,039
Operating income		44,217		31,841
Net income		30,372		34,119
Earnings per diluted share		0.69		0.77

Adjusted earnings, a non-GAAP financial measure, is set forth in the following table for the third quarters of 2014 and 2013:

In thousands, except per share	After-tax amounts			Diluted EPS
2014
Net income	$	30,372		$	0.69
Timberland sales and related costs		(1,004	)		(0.02	)
Alternative fuel mixture/ Cellulosic biofuel credits		(1,032	)		(0.02	)
Acquisition and integration related costs		115			—
Asset impairment charge		2,356			0.05
Adjusted earnings (non-GAAP)	$	30,807		$	0.70
2013
Net income	$	34,119		$	0.77
Acquisition and integration related costs		154			—
International legal entity restructuring costs		117			—
Timberland sales and related costs		(142	)		—
Alternative fuel mixture/ Cellulosic biofuel credits		(9,866	)		(0.22	)
Adjusted earnings (non-GAAP)	$	24,382		$	0.55

Business Unit Performance

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	154.5	$	161.5	$	74.4	$	69.5	$	236.2	$	225.7	$	—		$	—		$	465.1		$	456.6
Energy and related sales, net		—		—		—		—		0.9		1.2		—			—			0.9			1.2
Total revenue		154.5		161.5		74.4		69.5		237.1		226.9		—			—			466.0			457.8
Cost of products sold		123.7		129.5		64.7		63.7		195.2		196.4		1.8			2.3			385.4			391.8
Gross profit (loss)		30.8		31.9		9.7		5.8		41.9		30.5		(1.8	)		(2.3	)		80.5			66.0
SG&A		12.6		13.0		2.2		1.9		14.1		12.5		9.0			7.1			37.9			34.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(1.6	)		(0.3	)		(1.6	)		(0.3	)
Total operating income (loss)		18.1		18.9		7.5		3.9		27.8		18.1		(9.2	)		(9.1	)		44.2			31.8
Non-operating expense		—		—		—		—		—		—		(4.8	)		(4.7	)		(4.8	)		(4.7	)
Income (loss) before income taxes	$	18.1	$	18.9	$	7.5	$	3.9	$	27.8	$	18.1	$	(14.0	)	$	(13.8	)	$	39.4		$	27.1
Supplementary Data
Net tons sold (thousands)		40.1		40.3		26.3		24.8		208.4		203.6		—			—			274.7			268.7
Depreciation, depletion and amortization	$	7.4	$	7.1	$	2.3	$	2.2	$	6.5	$	8.3	$	0.5		$	0.4		$	16.7		$	18.0
Capital expenditures		5.4		12.8		1.3		0.8		9.7		11.1		0.5			0.7			16.9			25.3

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

- 35 -

GLATFELTER

9.30.14 Form 10-Q

Sales and Costs of Products Sold

	Three months ended September 30
In thousands	2014			2013			Change
Net sales	$	465,092		$	456,648		$	8,444
Energy and related sales – net		860			1,196			(336	)
Total revenues		465,952			457,844			8,108
Costs of products sold		385,439			391,805			(6,366	)
Gross profit	$	80,513		$	66,039		$	14,474
Gross profit as a percent of Net sales		17.3	%		14.5	%

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

	Three months ended September 30
Percent of Total	2014			2013
Business Unit
Composite Fibers		33.2	%		35.4	%
Advanced Airlaid Material		16.0			15.2
Specialty Papers		50.8			49.4
Total		100.0	%		100.0	%

Net sales totaled $465.1 million in the third quarter of 2014, a 1.8% increase compared with the third quarter of 2013.

Composite Fibers’ net sales for the third quarter of 2014 declined $6.9 million or 4.3% compared to the same quarter of 2013 primarily due to the $4.9 million impact of lower selling prices. Shipping volumes declined less than 1% and foreign currency translation favorably impacted the year-over-year net sales comparison by $1.2 million.

Composite Fibers’ third-quarter 2014 operating income decreased $0.8 million to $18.1 million. The adverse impact from lower selling prices was substantially offset by improved operating performance including the impact of market related downtime taken to reduce inventories.

Advanced Airlaid Materials’ net sales increased $4.9 million or 7.0% in the quarter-over-quarter comparison primarily due to a 5.9% increase in shipping volumes.

Third-quarter 2014 operating income increased $3.6 million, nearly double the year-ago quarter. The third-quarter 2013 results were adversely impacted by $1.7 million of costs, net of insurance, related to fires at this business unit’s facilities. Excluding these costs from the comparison, 2014 operating income increased $1.9 million primarily due to higher shipping volumes and slightly lower raw material and energy costs.

Specialty Papers’ net sales increased $10.5 million or 4.7% primarily due to an $8.3 million benefit from higher average selling prices together with 2.4% increase in shipping volumes.

Operating income in this business unit increased $9.7 million, or 53.6% primarily due to higher selling prices together with significant improvements in operating performance, including record quarterly pulp production, partially offset by higher incentive compensation and normal cost inflation.

We sell excess power generated by the Spring Grove, PA facility. The following table summarizes this activity for the third quarters of 2014 and 2013:

	Three months ended September 30
In thousands	2014			2013			Change
Energy sales	$	1,513		$	2,722		$	(1,209	)
Costs to produce		(1,268	)		(1,941	)		673
Net		245			781			(536	)
Renewable energy credits		615			415			200
Total	$	860		$	1,196		$	(336	)

Other and Unallocated The amount of net operating expenses not allocated to a business unit and reported as “Other and Unallocated” in our table of Business Unit Performance, totaled $9.2 million in the third quarters of 2014 and 2013. Excluding the impact of sales of timberlands in the comparison, unallocated net operating expenses increased $1.3 million primarily due the asset impairment partially offset by lower acquisition related costs and lower pension expense.

Pension Expense The following table summarizes the amounts of pension expense recognized for the periods indicated:

	Three months ended September 30
In thousands	2014		2013		Change
Recorded as:
Costs of products sold	$	1,650	$	3,092	$	(1,442	)
SG&A expense		3		462		(459	)
Total	$	1,653	$	3,554	$	(1,901	)

The amount of pension expense recognized each year is dependent on various actuarial assumptions and certain other factors, including discount rates and the fair value of our pension assets. Pension expense in 2014 is expected to be approximately $6.7 million compared with $14.2 million in 2013. The decrease is primarily due to higher discount rates and the impact of amortizing deferred actuarial gains from higher returns on assets in 2013.

- 36 -

GLATFELTER

9.30.14 Form 10-Q

Income taxes For the third quarter of 2014, we recorded a provision for income taxes of $9.0 million on pretax income of $39.4 million. The comparable amounts in the third quarter of 2013 were income tax benefit of $7.0 million on $27.1 million of pretax income. In the third quarters of 2014 and 2013 we recorded benefits of $1.0 million and $9.9 million, respectively, from the release of tax reserves related to alternative fuel mixture credits earned in 2009, due to the lapse of the applicable statutes of limitation. In addition, the effective tax rate was lower in 2013 primarily due to changes in valuation allowances and the reduction of statutory tax rates in a foreign jurisdiction.

Foreign Currency We own and operate facilities in Canada, Germany, France, the United Kingdom and the Philippines. The functional currency of our Canadian operations is the U.S. dollar. However, in Germany and France it is the Euro, in the UK, it is the British Pound Sterling, and in the Philippines the functional currency is the Peso. During the third quarter of 2014, Euro functional currency operations generated approximately 32.5% of our sales and 31.2% of operating expenses and British Pound Sterling operations represented 5.6% of net sales and 5.7% of operating expenses. 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 third quarter of 2014 compared to the third quarter of 2013:

In thousands	Three months ended September 30, 2014
	Favorable (unfavorable)
Net sales	$	1,186
Costs of products sold		(757	)
SG&A expenses		(123	)
Income taxes and other		123
Net income	$	429

The above table only presents the financial reporting impact of foreign currency translations assuming currency exchange rates in 2014 were the same as 2013. 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 is capital intensive and requires significant expenditures for new or enhanced equipment, to support our research and development efforts, for environmental compliance matters including, but not limited to, the Clean Air Act, 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:

	Nine months ended September 30
In thousands	2014			2013
Cash and cash equivalents at beginning of period	$	122,882		$	97,679
Cash provided (used) by
Operating activities		21,380			95,693
Investing activities		(43,585	)		(296,946	)
Financing activities		(46,007	)		166,876
Effect of exchange rate changes on cash		(1,015	)		333
Net cash used		(69,227	)		(34,044	)
Cash and cash equivalents at end of period	$	53,655		$	63,635

At September 30, 2014, we had $53.7 million in cash and cash equivalents held by both domestic and foreign subsidiaries. Although unremitted earnings of our foreign subsidiaries are deemed to be permanently reinvested, all of the cash and cash equivalents are available for use domestically. In addition to our cash and cash equivalents, $218.1 million is available under our revolving credit agreement, which matures in November 2016.

Cash provided by operating activities totaled $21.4 million in the first nine months of 2014 compared with $95.7 million in the same period a year ago. The decrease in cash from operations reflects an increase in working capital usage, primarily related to an increase in inventory and reduction of accounts payable, higher tax payments and payment of customer incentives earned at Dresden.

Net cash used by investing activities declined by $253.4 million in the year-to-date comparison of 2014 to 2013. Excluding $210.9 million of cash used in 2013 to acquire Dresden, cash used for investing activities declined in the comparison by $42.5 million due to lower capital expenditures. The prior year amount included $31.5 million related to the Composite Fibers capacity expansion project. Capital expenditures for all of 2014 are expected to be approximately $75 million to $80 million compared to $103.0 million for the year ended December 31, 2013.

- 37 -

GLATFELTER

9.30.14 Form 10-Q

Net cash used by financing activities totaled $46.0 million in the first nine months of 2014 reflecting net cash used to reduce revolving credit facility borrowings, complete common stock repurchases and pay dividends. In the same period of 2013, $166.9 million of cash was provided by financing activities primarily reflecting borrowings to fund the Dresden acquisition partially offset by dividends paid on common stock.

The following table sets forth our outstanding long-term indebtedness:

In thousands	September 30 2014			December 31 2013
Revolving credit facility, due Nov. 2016	$	93,810		$	133,540
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		12,592			—
2.05% Term Loan, due Mar. 2023		53,768			58,785
Total long-term debt		410,170			442,325
Less current portion		(3,810	)		—
Long-term debt, net of current portion	$	406,360		$	442,325

Our revolving credit facility contains a number of customary compliance covenants, the most restrictive of which is a maximum leverage ratio of 3.5x. As of September 30, 2014, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.3x, within the limits set forth in our credit agreement. Based on our expectations of future results of operations and capital needs, we do not believe the debt covenants will impact our operations or limit our ability to undertake financings that may be necessary to meet our capital needs.

The 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the credit agreement at maturity, or a default under the credit agreement that accelerates the debt outstanding thereunder. As of September 30, 2014, we met all of the requirements of our debt covenants. The significant terms of the debt instruments are more fully discussed in Item 1—Financial Statements – Note 12.

Cash used for financing activities includes cash used for common stock dividends and to repurchase stock. In 2014, our Board of Directors authorized a 10% increase in our quarterly cash dividend. In the first nine months of 2014, we used $13.9 million of cash for dividends on our common stock compared with $12.6 million in the same period of 2013. The 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.

Cash used for common share repurchases totaled $12.2 million in the first nine months of 2014. On May 1, 2014, the Company announced that its Board of Directors approved a $25 million increase to the share repurchase program and extended the expiration date to May 1, 2016. Under the revised program, the Company may repurchase up to $50 million of its outstanding common stock. The following table summarizes share repurchases made under this program through September 30, 2014:

	shares		(thousands)
Authorized amount		n/a	$	50,000
Repurchases		755,310		(16,627	)
Remaining authorization			$	33,373

The total repurchases set forth above includes 464,190 shares at a cost of $12.2 million completed through September 30 2014. No shares were repurchased in the first nine months of 2013.

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. As a result of new air quality regulations including the U.S. EPA Best Available Retrofit Technology rule (BART; otherwise known as the Regional Haze Rule) and the Boiler Maximum Achievable Control Technology rule (Boiler MACT), we anticipate that we could incur material capital and operating costs. Recently issued rules will require process modifications and/or installation of air pollution controls on boilers at two of our facilities. The cost of compliance is likely to be significant. Our current estimate to implement viable options could result in capital spending of between $85 million to $90 million. However, the amount of capital spending ultimately incurred may differ, and the difference could be material. In addition, the timing of such capital spending is uncertain, although we expect to incur the majority of expenditures generally in 2015 and 2016. Enactment of new environmental laws or regulations or changes in existing laws or regulations could significantly change our estimates.

- 38 -

GLATFELTER

9.30.14 Form 10-Q

In addition, as more fully discussed in Note 17 – Commitments, Contingencies and Legal Proceedings, it is conceivable we will need to fund a portion of the on-going costs to remediate a portion of the Lower Fox River in Wisconsin (the “Fox River”), an EPA Superfund site. Although we are unable to determine with any degree of certainty the amount we may fund, such amounts could be significant. The ultimate allocation of such costs is the subject of extensive ongoing litigation amongst three potentially responsible parties. See Item 1 – Financial Statements – Note 17 for a summary of significant environmental matters.

We expect to meet all of our near- and longer-term cash needs from a combination of operating cash flow, cash and cash equivalents, our credit facility or other bank lines of credit and other long-term debt. However, as discussed in Item 1 – Financial Statements – Note 17, an unfavorable outcome of the Fox River matters could have a material adverse impact on our consolidated financial position, liquidity and/or results of operations.

Off-Balance-Sheet Arrangements As of September 30, 2014 and December 31, 2013, 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 and a partnership, are reflected in the condensed consolidated balance sheets included herein in Item 1 – Financial Statements.

Outlook In the fourth quarter of 2014, Composite Fibers’ shipping volumes are expected to be approximately 5% lower than the third quarter of 2014 primarily due to seasonality. Selling prices and raw material and energy costs are expected to be in-line with the third quarter. The impact of downtime to reduce inventory levels in the fourth quarter is estimated to be $1 million to $2 million higher compared to the third quarter.

Shipping volumes for Advanced Airlaid Materials in the fourth quarter of 2014 are expected to decline by approximately 5% compared with the third quarter due to seasonality. Average raw material prices are expected to be slightly higher than the third quarter of 2014 resulting in higher selling prices consistent with our pass-through arrangements. In order to increase the production capacity of a line in Falkenhagen, we expect to incur approximately $1 million of costs related to lost production time from temporarily taking the line down.

For Specialty Papers, we expect shipping volumes in the fourth quarter of 2014 to decline by approximately 5% compared to the third quarter due to seasonality. Overall selling prices are expected to be slightly lower than the third quarter of 2014 and input costs are expected to increase slightly. Maintenance costs are expected to be approximately $2 million higher in the fourth quarter compared with the third quarter due to normal variations in the timing of certain work.

- 39 -

GLATFELTER

9.30.14 Form 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

	Year Ended December 31															September 30, 2014
Dollars in thousands	2014			2015			2016			2017			2018			Carrying Value		Fair Value
Long-term debt
Average principal outstanding
At fixed interest rates – Bond	$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000	$	257,033
At fixed interest rates – Term Loans		66,360			65,352			58,740			50,220			41,700			66,360		66,935
At variable interest rates		93,810			93,810			83,529			—			—			93,810		93,810
																$	410,170	$	417,778
Weighted-average interest rate
On fixed rate debt – Bond		5.375	%		5.375	%		5.375	%		5.375	%		5.375	%
On fixed rate debt – Term Loans		2.12	%		2.12	%		2.12	%		2.12	%		2.12	%
On variable rate debt		1.76	%		1.76	%		1.76	%		—			—

The table above presents the average principal outstanding and related interest rates for the next five years for debt outstanding as of September 30, 2014. 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 September 30, 2014, we had $410.2 million of long-term debt, of which 22.9% was at variable interest rates. Variable-rate debt outstanding represents borrowings under our revolving credit agreement that accrues interest based on one month LIBOR plus a margin. At September 30, 2014, the interest rate paid was approximately 1.76%. A hypothetical 100 basis point increase or decrease in the interest rate on variable rate debt would increase or decrease annual interest expense by $0.9 million.

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 15.

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. During the first nine months of 2014, Euro functional currency operations generated approximately 33.1% of our sales and 30.4% of operating expenses and British Pound Sterling operations represented 5.9% of net sales and 5.6% of operating expenses.

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 September 30, 2014, 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 September 30, 2014, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

- 40 -

GLATFELTER

9.30.14 Form 10-Q

PART II

ITEM 6. EXHIBITS

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

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.
31.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
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.
32.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

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.

	P. H. GLATFELTER COMPANY
	(Registrant)
November 4, 2014
	By	/s/ David C. Elder
		David C. Elder
		Vice President, Finance

- 41 -

GLATFELTER

9.30.14 Form 10-Q

EXHIBIT INDEX

Exhibit Number	Description
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, 18 U.S.C. Section 1350 – Chief Executive Officer, filed herewith.
31.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer, 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 – Chief Executive Officer, filed herewith.
32.2	Certification of John P. Jacunski, Executive Vice President and Chief Financial Officer of Glatfelter, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 – Chief Financial Officer, filed herewith.
101.INS	XBRL Instance Document, filed herewith
101.SCH	XBRL Taxonomy Extension Schema, filed herewith
101.CAL	XBRL Extension Calculation Linkbase, filed herewith
101.DEF	XBRL Extension Definition Linkbase, filed herewith
101.LAB	XBRL Extension Label Linkbase, filed herewith
101.PRE	XBRL Extension Presentation Linkbase, filed herewith

- 42 -

GLATFELTER

9.30.14 Form 10-Q

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 September 30, 2014 of P. H. Glatfelter Company (“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.

November 4, 2014

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

EX-31.2

EXHIBIT 31.2

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

I, John P. Jacunski certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 of P. H. Glatfelter Company (“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.

November 4, 2014

By	/s/ John P. Jacunski
	John P. Jacunski
	Executive Vice President and Chief Financial Officer

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 September 30, 2014, of P. H. Glatfelter Company (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.

November 4, 2014

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

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 September 30, 2014, of P. H. Glatfelter Company (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Jacunski, Executive Vice President and Chief Financial 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.

November 4, 2014

By	/s/ John P. Jacunski
	John P. Jacunski
	Executive Vice President and Chief Financial Officer

XML

Financial Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2014

Fair Values of Derivative Instruments

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	September 30 2014		December 31 2013		September 30 2014		December 31 2013
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	2,106	$	—	$	166	$	1,163
Not designated as hedging:
Forward foreign currency exchange contracts	$	10	$	36	$	73	$	46

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 September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(137	)	$	(384	)	$	(1,227	)	$	(641	)
Ineffective portion – other – net		81			49			181			74
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	595		$	(348	)	$	1,792		$	(794	)

Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2014			2013
Balance at January 1,	$	(1,296	)	$	(599	)
Deferred (losses) gains on cash flow hedges		2,223			(778	)
Reclassified to earnings		1,227			641
Balance at September 30,	$	2,154		$	(736	)

Designated as Hedging [Member]

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	September 30 2014		December 31 2013
Derivative	Buy Notional
Sell / Buy
Euro / U.S. dollar		22,631		27,105
U.S. dollar / Canadian dollar		8,124		13,077
Euro / Philippine peso		439,675		—
British Pound / Philippine peso		243,310		—
Euro / British Pound		3,358		—

Not Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

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	September 30 2014			December 31 2013
Derivative	Sell (Buy) Notional
Sell / Buy
U.S. dollar / British Pound		11,000			6,000
Euro / British Pound		(9,000	)		(8,000	)
Euro / British Pound		2,000			5,000
Canadian dollar / U.S. dollar		2,000			2,000
U.S. dollar / Euro		—			2,000
Euro / U.S. dollar		—			9,000

XML

Stock-Based Compensation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Restricted Stock Units (RSU) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The vesting graded scale	Over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting.
Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative performance targets	3 years
Grants under performance share awards	95,691	181,670
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of stock	3 years
Vesting term	10 years

XML

Earnings Per Share - 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 (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Potential common shares	282		282

XML

Financial Derivatives and Hedging Activities - Outstanding Derivatives Used to Hedge Foreign Exchange Risks (Detail) In Thousands, unless otherwise specified	Sep. 30, 2014 Cash Flow Hedges [Member] Designated as Hedging [Member] Euro / U.S. Dollar [Member] USD ($)	Dec. 31, 2013 Cash Flow Hedges [Member] Designated as Hedging [Member] Euro / U.S. Dollar [Member] USD ($)	Sep. 30, 2014 Cash Flow Hedges [Member] Designated as Hedging [Member] U.S. Dollar / Canadian Dollar [Member] CAD	Dec. 31, 2013 Cash Flow Hedges [Member] Designated as Hedging [Member] U.S. Dollar / Canadian Dollar [Member] CAD	Sep. 30, 2014 Cash Flow Hedges [Member] Designated as Hedging [Member] Euro / Philippine Peso [Member] PHP	Sep. 30, 2014 Cash Flow Hedges [Member] Designated as Hedging [Member] British Pound / Philippine Peso [Member] PHP	Sep. 30, 2014 Cash Flow Hedges [Member] Designated as Hedging [Member] Euro / British Pound [Member] GBP (£)	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Euro / U.S. Dollar [Member] EUR (€)	Sep. 30, 2014 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Euro / British Pound [Member] EUR (€)	Sep. 30, 2014 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Euro / British Pound [Member] GBP (£)	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Euro / British Pound [Member] EUR (€)	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Euro / British Pound [Member] GBP (£)	Sep. 30, 2014 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] U.S. Dollar / British Pound [Member] USD ($)	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] U.S. Dollar / British Pound [Member] USD ($)	Sep. 30, 2014 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Canadian Dollar / U.S Dollar [Member] CAD	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] Canadian Dollar / U.S Dollar [Member] CAD	Dec. 31, 2013 Foreign Currency Hedges [Member] Not Designated as Hedging [Member] U.S Dollar / Euro [Member] USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Sell (Buy) Notional	$ 22,631	$ 27,105	8,124	13,007	439,675	243,310	£ 3,358	€ 9,000	€ 2,000	£ (9,000)	€ 5,000	£ (8,000)	$ 11,000	$ 6,000	2,000	2,000	$ 2,000

XML

Stock-Based Compensation - Summary of RSU and PSA Activity (Detail) (Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member])	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	1,001,814	847,679
Granted	173,206	210,856
Forfeited	(45,355)	(40,991)
Shares delivered	(239,394)	(113,230)
Ending Balance	890,271	904,314

XML

Segment Information - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended
	Apr. 30, 2013	Sep. 30, 2013	Apr. 30, 2013 Dresden Papier GmbH [Member]	Sep. 30, 2014 Dresden Papier GmbH [Member]
Segment Reporting Information [Line Items]
Date of acquisition				Apr. 30, 2013
Payment made for acquisition, net of cash acquired	$ 211,000	$ 210,911	$ 211,000

XML

Gains on Dispositions of Plant, Equipment and Timberlands, Net - Summary for Sale of Timberlands and Other Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Proceeds			$ 4,051	$ 379
Gain	1,590	282	3,881	374
Timberlands [Member]
Property, Plant and Equipment [Line Items]
Acres			2,030	172
Proceeds			4,041	287
Gain			3,876	282
Other [Member]
Property, Plant and Equipment [Line Items]
Proceeds			10	92
Gain			$ 5	$ 92

XML

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]

Summary of Stock Option Activity

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

Units	2014			2013
Balance at January 1,		1,001,814			847,679
Granted		173,206			210,856
Forfeited		(45,355	)		(40,991	)
Shares delivered		(239,394	)		(113,230	)
Balance at September 30,		890,271			904,314

Compensation Expense for Stock Option Activity

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

	September 30
In thousands	2014		2013
Three months ended	$	854	$	892
Nine months ended		1,874		2,216

Stock Only Stock Appreciation Rights (SOSARs) [Member]

Summary of Stock Option Activity

The following table sets forth information related to outstanding SOSARS.

	2014					2013
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,977,133		$	13.91		2,121,454		$	12.93
Granted		281,881			29.22		361,923			18.36
Exercised		(26,245	)		15.67		(435,562	)		12.63
Canceled / forfeited		(29,842	)		19.36		(73,901	)		16.25
Outstanding at September 30,		2,202,927		$	15.77		1,973,914		$	13.87
SOSAR Grants
Weighted average grant date fair value per share	$	9.81				$	5.64
Aggregate grant date fair value (in thousands)	$	2,764				$	2,042
Black-Scholes assumptions
Dividend yield		1.48	%				2.18	%
Risk free rate of return		1.74	%				0.99	%
Volatility		37.59	%				39.62	%
Expected life		6 yrs					6 yrs

Compensation Expense for Stock Option Activity

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2014		2013
Three months ended	$	577	$	398
Nine months ended		1,585		1,198

XML

Condensed Consolidating Financial Statements - Additional Information (Detail)	Sep. 30, 2014	Oct. 03, 2012
PHG Tea Leaves, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Mollanvick, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
Glatfelter Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage owned in domestic subsidiaries	100.00%
5.375% Notes [Member]
Schedule of Equity Method Investments [Line Items]
Interest rate on notes guaranteed	5.375%	5.375%

XML

Financial Derivatives and Hedging Activities - Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance at January 1,	$ (1,296)	$ (599)
Deferred (losses) gains on cash flow hedges	2,223	(778)
Reclassified to earnings	1,227	641
Balance at September 30,	$ 2,154	$ (736)

XML

Stock-Based Compensation - Schedule of Information Related to Outstanding SOSARS (Detail) (Stock Only Stock Appreciation Rights (SOSARs) [Member], USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance, Outstanding	1,977,133	2,121,454
Granted	281,881	361,923
Exercised	(26,245)	(435,562)
Canceled / forfeited	(29,842)	(73,901)
Ending Balance, Outstanding	2,202,927	1,973,914
Beginning Balance, Weighted Average Exercise Price, Outstanding	$ 13.91	$ 12.93
Weighted Average Exercise Price, Granted	$ 29.22	$ 18.36
Weighted Average Exercise Price, Exercised	$ 15.67	$ 12.63
Weighted Average Exercise Price, Canceled / forfeited	$ 19.36	$ 16.25
Ending Balance, Weighted Average Exercise Price, Outstanding	$ 15.77	$ 13.87
Weighted average grant date fair value per share	$ 9.81	$ 5.64
Aggregate grant date fair value	$ 2,764	$ 2,042
Black-Scholes assumptions
Dividend yield	1.48%	2.18%
Risk free rate of return	1.74%	0.99%
Volatility	37.59%	39.62%
Expected life	6 years	6 years

XML

Commitments, Contingencies and Legal Proceedings - Additional Information (Detail) (USD $)	9 Months Ended			0 Months Ended			0 Months Ended		1 Months Ended
	Sep. 30, 2014	Sep. 30, 2014 Maximum [Member]	Sep. 30, 2014 Minimum [Member]	Oct. 14, 2014 Subsequent Event [Member]	Oct. 14, 2014 Subsequent Event [Member]	Oct. 14, 2014 OU1 [Member] Subsequent Event [Member]	Sep. 25, 2014 OU2-5 [Member]	Sep. 30, 2014 OU2-5 [Member]	Jan. 31, 2008 OU2-5 [Member] Whiting Litigation [Member]	Oct. 14, 2014 OU2-5 [Member] Subsequent Event [Member]	Sep. 30, 2014 Dredging Season [Member]
Commitments Contingencies And Litigation [Line Items]
Upper end estimate of total past and future response costs				$ 1,100,000,000
Uncertainty premium for future response costs				100,000,000
Estimated future cost of work yet to be done						100,000,000				500,000,000
Annual estimated cost rate seek by Government								70,000,000			90,000,000
Initial minimum amount of NRD assessment	176,000,000
Initial maximum amount of NRD assessment	333,000,000
Revised minimum amount of NRD assessment	287,000,000
Revised maximum amount of NRD assessment	423,000,000
Reserve for environmental liability, expected compensation payments				45,900,000
Environmental loss contingencies recovered	16,300,000				105,000,000
Other prepaid loss contingencies for earlier settlements					59,000,000
Cost of response incurred by government	4,280,000
NCR costs and damages percentage							100.00%		100.00%
Reserve for Environmental liabilities, current portion	100,000
Maximum estimated percentage of discharge	27.00%
Maximum estimated cost related to Fox River matter	$ 185,000,000
Period over which estimated cost accrued		P3Y	P2Y

XML

Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 53,655	$ 122,882	$ 63,635	$ 97,679
Other current assets	500,028	463,700
Plant, equipment and timberlands, net	691,640	723,340
Other assets	351,421	368,488
Total assets	1,596,744	1,678,410
Liabilities and Shareholders' Equity
Current liabilities	251,940	288,367
Long-term debt	406,360	442,325
Deferred income taxes	130,677	141,020
Other long-term liabilities	119,587	122,222
Total liabilities	908,564	993,934
Shareholders' equity	688,180	684,476
Total liabilities and shareholders' equity	1,596,744	1,678,410
Adjustments/ Eliminations [Member]
Assets
Other current assets	(471,667)	(326,045)
Other assets	(1,151,259)	(1,055,972)
Total assets	(1,622,926)	(1,382,017)
Liabilities and Shareholders' Equity
Current liabilities	(476,317)	(337,878)
Long-term debt	(593,131)	(320,795)
Deferred income taxes	(12,732)	(8,319)
Other long-term liabilities	4,023	3,409
Total liabilities	(1,078,157)	(663,583)
Shareholders' equity	(544,769)	(718,434)
Total liabilities and shareholders' equity	(1,622,926)	(1,382,017)
Parent Company [Member]
Assets
Cash and cash equivalents	20,308	56,216	34,515	43,781
Other current assets	238,216	208,814
Plant, equipment and timberlands, net	250,066	247,243
Other assets	1,007,426	973,748
Total assets	1,516,016	1,486,021
Liabilities and Shareholders' Equity
Current liabilities	400,103	375,535
Long-term debt	250,000	250,000
Deferred income taxes	73,961	70,989
Other long-term liabilities	103,772	105,021
Total liabilities	827,836	801,545
Shareholders' equity	688,180	684,476
Total liabilities and shareholders' equity	1,516,016	1,486,021
Guarantors [Member]
Assets
Cash and cash equivalents	93	501	78	4,278
Other current assets	420,388	327,152
Plant, equipment and timberlands, net	998	1,054
Other assets	304,088	236,411
Total assets	725,567	565,118
Liabilities and Shareholders' Equity
Current liabilities	5,026	2,855
Deferred income taxes	(628)	(283)
Total liabilities	4,398	2,572
Shareholders' equity	721,169	562,546
Total liabilities and shareholders' equity	725,567	565,118
Non Guarantors [Member]
Assets
Cash and cash equivalents	33,254	66,165	29,042	49,620
Other current assets	313,091	253,779
Plant, equipment and timberlands, net	440,576	475,043
Other assets	191,166	214,301
Total assets	978,087	1,009,288
Liabilities and Shareholders' Equity
Current liabilities	323,128	247,855
Long-term debt	749,491	513,120
Deferred income taxes	70,076	78,633
Other long-term liabilities	11,792	13,792
Total liabilities	1,154,487	853,400
Shareholders' equity	(176,400)	155,888
Total liabilities and shareholders' equity	$ 978,087	$ 1,009,288

XML

Segment Information - Schedule of Financial and Other Information by Business Unit (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014 T	Sep. 30, 2013 T	Sep. 30, 2014 T	Sep. 30, 2013 T
Segment Reporting Information [Line Items]
Net sales	$ 465,092	$ 456,648	$ 1,366,154	$ 1,287,804
Energy and related sales, net	860	1,196	6,912	2,721
Total revenue	465,952	457,844	1,373,066	1,290,525
Cost of products sold	385,439	391,805	1,196,076	1,126,271
Gross profit (loss)	80,513	66,039	176,990	164,254
SG&A	37,886	34,480	103,751	102,495
Gains on dispositions of plant, equipment and timberlands, net	(1,590)	(282)	(3,881)	(374)
Total operating income (loss)	44,217	31,841	77,120	62,133
Non-operating expense	(4,808)	(4,730)	(13,997)	(12,515)
Income (loss) before income taxes	39,409	27,111	63,123	49,618
Supplementary Data
Net tons sold	274,700	268,700	796,800	771,900
Depreciation, depletion and amortization	16,700	18,000	53,547	50,028
Capital expenditures	16,900	25,300	47,000	86,100
Composite Fibers [Member]
Segment Reporting Information [Line Items]
Net sales	154,500	161,500	470,100	415,900
Total revenue	154,500	161,500	470,100	415,900
Cost of products sold	123,700	129,500	376,700	334,500
Gross profit (loss)	30,800	31,900	93,400	81,300
SG&A	12,600	13,000	38,800	34,400
Total operating income (loss)	18,100	18,900	54,600	46,900
Income (loss) before income taxes	18,100	18,900	54,600	46,900
Supplementary Data
Net tons sold	40,100	40,300	119,500	97,900
Depreciation, depletion and amortization	7,400	7,100	22,700	17,700
Capital expenditures	5,400	12,800	16,700	49,000
Advanced Airlaid Materials [Member]
Segment Reporting Information [Line Items]
Net sales	74,400	69,500	216,200	202,200
Total revenue	74,400	69,500	216,200	202,200
Cost of products sold	64,700	63,700	189,900	182,000
Gross profit (loss)	9,700	5,800	26,300	20,100
SG&A	2,200	1,900	6,800	6,400
Total operating income (loss)	7,500	3,900	19,500	13,700
Income (loss) before income taxes	7,500	3,900	19,500	13,700
Supplementary Data
Net tons sold	26,300	24,800	76,000	72,400
Depreciation, depletion and amortization	2,300	2,200	6,900	6,600
Capital expenditures	1,300	800	4,100	4,800
Specialty Papers [Member]
Segment Reporting Information [Line Items]
Net sales	236,200	225,700	679,900	669,800
Energy and related sales, net	900	1,200	6,900	2,700
Total revenue	237,100	226,900	686,800	672,500
Cost of products sold	195,200	196,400	624,300	599,700
Gross profit (loss)	41,900	30,500	62,500	72,800
SG&A	14,100	12,500	39,500	40,300
Total operating income (loss)	27,800	18,100	23,000	32,500
Income (loss) before income taxes	27,800	18,100	23,000	32,500
Supplementary Data
Net tons sold	208,400	203,600	601,300	601,600
Depreciation, depletion and amortization	6,500	8,300	22,600	24,900
Capital expenditures	9,700	11,100	24,500	27,900
Other and Unallocated [Member]
Segment Reporting Information [Line Items]
Cost of products sold	1,800	2,300	5,200	10,000
Gross profit (loss)	(1,800)	(2,300)	(5,200)	(10,000)
SG&A	900	7,100	18,700	21,300
Gains on dispositions of plant, equipment and timberlands, net	(1,600)	(300)	(3,900)	(400)
Total operating income (loss)	(9,200)	(9,100)	(20,000)	(31,000)
Non-operating expense	(4,800)	(4,700)	(14,000)	(12,500)
Income (loss) before income taxes	(14,000)	(13,800)	(34,000)	(43,500)
Supplementary Data
Depreciation, depletion and amortization	500	400	1,300	800
Capital expenditures	$ 500	$ 700	$ 1,700	$ 4,400

XML

Financial Derivatives and Hedging Activities - Fair Values of Derivative Instruments (Detail) (Forward Foreign Currency Exchange Contracts [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 2,106
Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	166	1,163
Not Designated as Hedging [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	10	36
Not Designated as Hedging [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 73	$ 46

XML

Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

19. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Our 5.375% Notes issued by P. H. Glatfelter Company (the “Parent”) are fully and unconditionally guaranteed, on a joint and several basis, by certain of our 100%-owned domestic subsidiaries, PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC. The guarantees are subject to certain customary release provisions including i) the designation of such subsidiary as an unrestricted or excluded subsidiary; (ii) in connection with any sale or disposition of the capital stock of the subsidiary guarantor; and (iii) upon our exercise of our legal defeasance option or our covenant defeasance option, all of which are more fully described in the Indenture dated as of October 3, 2012 among us, the Guarantors and US Bank National Association, as Trustee, relating to the 5.375% Notes. The following presents our condensed consolidating statements of income, including comprehensive income for the three months and nine months ended September 30, 2014 and 2013, our condensed consolidating balance sheets as of September 30, 2014 and December 31, 2013 and condensed consolidating cash flows for the nine months ended September 30, 2014 and 2013. These financial statements reflect the parent, the guarantor subsidiaries (on a combined basis), the non-guarantor subsidiaries (on a combined basis) and elimination entries necessary to combine such entities on a consolidated basis. Effective December 31, 2013, Glatfelter Pulpwood Company, previously a guarantor, was merged with and into the parent. Accordingly, all condensed consolidating financial statements have been restated to give effect to this merger as of the earliest period presented. In addition, the amounts of intercompany investing and financing activities and the related interest expense and interest income previously presented net for the nine months ended September 30, 2013 have been presented on a gross basis to conform to the current year’s presentation.

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	7		$	228,910		$	(7	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			7			228,910			(7	)		465,952
Costs of products sold		196,888			7			188,551			(7	)		385,439
Gross profit		40,154			—			40,359			—			80,513
Selling, general and administrative expenses		19,352			306			18,228			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income (loss)		22,392			(306	)		22,131			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Other, net		14,491			90,952			202			(105,812	)		(167	)
Total other non-operating income (expense)		9,853			180,903			(89,751	)		(105,813	)		(4,808	)
Income (loss) before income taxes		32,245			180,597			(67,620	)		(105,813	)		39,409
Income tax provision		1,873			470			6,694			—			9,037
Net income (loss)		30,372			180,127			(74,314	)		(105,813	)		30,372
Other comprehensive income (loss)		(29,577	)		(25,844	)		16,924			8,920			(29,577	)
Comprehensive income (loss)	$	795		$	154,283		$	(57,390	)		96,893		$	795

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	225,690		$	3		$	230,958		$	(3	)	$	456,648
Energy and related sales, net		1,196			—			—			—			1,196
Total revenues		226,886			3			230,958			(3	)		457,844
Costs of products sold		199,596			3			192,209			(3	)		391,805
Gross profit		27,290			—			38,749			—			66,039
Selling, general and administrative expenses		16,203			190			18,087			—			34,480
(Gains) loss on dispositions of plant, equipment and timberlands, net		(285	)		—			3			—			(282	)
Operating income (loss)		11,372			(190	)		20,659			—			31,841
Other non-operating income (expense)
Interest expense		(4,721	)		—			(2,537	)		2,470			(4,788	)
Interest income		183			2,376			3			(2,470	)		92
Other, net		18,341			103			(587	)		(17,891	)		(34	)
Total other non-operating income (expense)		13,803			2,479			(3,121	)		(17,891	)		(4,730	)
Income before income taxes		25,175			2,289			17,538			(17,891	)		27,111
Income tax provision (benefit)		(8,944	)		(891	)		2,827			—			(7,008	)
Net income		34,119			3,180			14,711			(17,891	)		34,119
Other comprehensive income (loss)		17,903			6,400			(219	)		(6,181	)		17,903
Comprehensive income	$	52,022		$	9,580		$	14,492		$	(24,072	)	$	52,022

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	28		$	686,277		$	(28	)	$	1,366,154
Energy and related sales – net		6,912			—			—			—			6,912
Total revenues		686,789			28			686,277			(28	)		1,373,066
Costs of products sold		629,360			28			566,716			(28	)		1,196,076
Gross profit		57,429			—			119,561			—			176,990
Selling, general and administrative expenses		53,699			462			49,590			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		6,295			854			69,971			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Other, net		54,789			90,973			1,673			(147,330	)		105
Total other non-operating income (expense)		40,973			186,138			(93,777	)		(147,331	)		(13,997	)
Income (loss) before income taxes		47,268			186,992			(23,806	)		(147,331	)		63,123
Income tax provision (benefit)		(2,421	)		2,098			13,757			—			13,434
Net income (loss)		49,689			184,894			(37,563	)		(147,331	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	158,502		$	(18,656	)	$	(139,846	)	$	26,103

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	669,792		$	15		$	618,012		$	(15	)	$	1,287,804
Energy and related sales, net		2,721			—			—			—			2,721
Total revenues		672,513			15			618,012			(15	)		1,290,525
Costs of products sold		609,524			15			516,747			(15	)		1,126,271
Gross profit		62,989			—			101,265			—			164,254
Selling, general and administrative expenses		54,256			293			47,946			—			102,495
Gains on dispositions of plant, equipment and timberlands, net		(374	)		—			—			—			(374	)
Operating income (loss)		9,107			(293	)		53,319			—			62,133
Other non-operating income (expense)
Interest expense		(14,141	)		—			(5,008	)		6,006			(13,143	)
Interest income		443			5,791			12			(6,006	)		240
Other, net		42,437			94			868			(43,011	)		388
Total other non-operating income (expense)		28,739			5,885			(4,128	)		(43,011	)		(12,515	)
Income before income taxes		37,846			5,592			49,191			(43,011	)		49,618
Income tax provision (benefit)		(12,835	)		419			11,353			—			(1,063	)
Net income		50,681			5,173			37,838			(43,011	)		50,681
Other comprehensive income		17,319			3,171			(5,078	)		1,907			17,319
Comprehensive income	$	68,000		$	8,344		$	32,760		$	(41,104	)	$	68,000

Condensed Consolidating Balance Sheet as of

September 30, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	20,308	$	93		$	33,254		$	—		$	53,655
Other current assets		238,216		420,388			313,091			(471,667	)		500,028
Plant, equipment and timberlands, net		250,066		998			440,576			—			691,640
Other assets		1,007,426		304,088			191,166			(1,151,259	)		351,421
Total assets	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744
Liabilities and Shareholders’ Equity
Current liabilities	$	400,103	$	5,026		$	323,128		$	(476,317	)	$	251,940
Long-term debt		250,000		—			749,491			(593,131	)		406,360
Deferred income taxes		73,961		(628	)		70,076			(12,732	)		130,677
Other long-term liabilities		103,772		—			11,792			4,023			119,587
Total liabilities		827,836		4,398			1,154,487			(1,078,157	)		908,564
Shareholders’ equity		688,180		721,169			(176,400	)		(544,769	)		688,180
Total liabilities and shareholders’ equity	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744

Condensed Consolidating Balance Sheet as of

December 31, 2013

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	56,216	$	501		$	66,165	$	—		$	122,882
Other current assets		208,814		327,152			253,779		(326,045	)		463,700
Plant, equipment and timberlands, net		247,243		1,054			475,043		—			723,340
Other assets		973,748		236,411			214,301		(1,055,972	)		368,488
Total assets	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410
Liabilities and Shareholders’ Equity
Current liabilities	$	375,535	$	2,855		$	247,855	$	(337,878	)	$	288,367
Long-term debt		250,000		—			513,120		(320,795	)		442,325
Deferred income taxes		70,989		(283	)		78,633		(8,319	)		141,020
Other long-term liabilities		105,021		—			13,792		3,409			122,222
Total liabilities		801,545		2,572			853,400		(663,583	)		993,934
Shareholders’ equity		684,476		562,546			155,888		(718,434	)		684,476
Total liabilities and shareholders’ equity	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,368		$	17,300		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net repayments of indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Payments related to share-based comp- ensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(408	)		(32,911	)		—			(69,227	)
Cash at the beginning of period		56,216			501			66,165			—			122,882
Cash at the end of period	$	20,308		$	93		$	33,254		$	—		$	53,655

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	30,380		$	10,857		$	54,247		$	209		$	95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(32,075	)		—			(53,805	)		(209	)		(86,089	)
Proceeds from disposal plant, equipment and timberlands, net		379			—			—			—			379
Repayments from intercompany loans		—			15,100			—			(15,100	)		—
Advances of intercompany loans		—			(30,066	)		—			30,066			—
Intercompany capital contributed		—			(91	)		—			91			—
Acquisitions, net of cash acquired		—			—			(210,911	)		—			(210,911	)
Other		(325	)		—			—			—			(325	)
Total investing activities		(32,021	)		(15,057	)		(264,716	)		14,848			(296,946	)
Financing activities
Net proceeds from indebtedness		—			—			182,230			—			182,230
Payments of note offering costs		(160	)		—			(259	)		—			(419	)
Payment of dividends to shareholders		(12,603	)		—			—			—			(12,603	)
Repayments of intercompany loans		(1,100	)		—			(14,000	)		15,100			—
Borrowings of intercompany loans		8,570			—			21,496			(30,066	)		—
Intercompany capital received		—			—			91			(91	)		—
Proceeds from stock options exercised and other		(2,332	)		—			—			—			(2,332	)
Total financing activities		(7,625	)		—			189,558			(15,057	)		166,876
Effect of exchange rate on cash		—			—			333			—			333
Net decrease in cash		(9,266	)		(4,200	)		(20,578	)		—			(34,044	)
Cash at the beginning of period		43,781			4,278			49,620			—			97,679
Cash at the end of period	$	34,515		$	78		$	29,042		$	—		$	63,635

XML

Accumulated Other Comprehensive Income - Schedule of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	$ 385,439	$ 391,805	$ 1,196,076	$ 1,126,271
Selling, general and administrative	37,886	34,480	103,751	102,495
Income tax provision	9,037	(7,008)	13,434	(1,063)
Reclassifications Out of Accumulated Other Comprehensive Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Net of tax	2,494	4,074	8,075	11,861
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Pension Plan Items [Member]
Defined Benefit Plan Disclosure [Line Items]
Before tax	3,804	6,010	11,413	18,032
Income tax provision	(1,441)	(2,264)	(4,325)	(6,782)
Net of tax	2,363	3,746	7,088	11,250
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Pension Plan Items [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	621	572	1,864	1,838
Selling, general and administrative	206	201	618	483
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Pension Plan Items [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	2,215	3,792	6,644	12,203
Selling, general and administrative	762	1,445	2,287	3,508
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member]
Defined Benefit Plan Disclosure [Line Items]
Before tax	57	77	171	231
Income tax provision	(22)	(29)	(66)	(87)
Net of tax	35	48	105	144
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Prior Service Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	(59)	(100)	(178)	(301)
Selling, general and administrative	(13)	(25)	(38)	(74)
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Amortization of Deferred Benefit Other Plan Items [Member] | Actuarial Losses [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	106	155	319	465
Selling, general and administrative	23	47	68	141
Reclassifications Out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | (Gains) Losses on Cash Flow Hedges [Member]
Defined Benefit Plan Disclosure [Line Items]
Costs of products sold	137	384	1,227	641
Income tax provision	(41)	(104)	(345)	(174)
Net of tax	$ 96	$ 280	$ 882	$ 467

XML

Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	236,182		$	7		$	228,910		$	(7	)	$	465,092
Energy and related sales, net		860			—			—			—			860
Total revenues		237,042			7			228,910			(7	)		465,952
Costs of products sold		196,888			7			188,551			(7	)		385,439
Gross profit		40,154			—			40,359			—			80,513
Selling, general and administrative expenses		19,352			306			18,228			—			37,886
Gains on dispositions of plant, equipment and timberlands, net		(1,590	)		—			—			—			(1,590	)
Operating income (loss)		22,392			(306	)		22,131			—			44,217
Other non-operating income (expense)
Interest expense		(4,790	)		—			(90,098	)		90,217			(4,671	)
Interest income		152			89,951			145			(90,218	)		30
Other, net		14,491			90,952			202			(105,812	)		(167	)
Total other non-operating income (expense)		9,853			180,903			(89,751	)		(105,813	)		(4,808	)
Income (loss) before income taxes		32,245			180,597			(67,620	)		(105,813	)		39,409
Income tax provision		1,873			470			6,694			—			9,037
Net income (loss)		30,372			180,127			(74,314	)		(105,813	)		30,372
Other comprehensive income (loss)		(29,577	)		(25,844	)		16,924			8,920			(29,577	)
Comprehensive income (loss)	$	795		$	154,283		$	(57,390	)		96,893		$	795

Condensed Consolidating Statements of Income and Comprehensive Income for the

three months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	225,690		$	3		$	230,958		$	(3	)	$	456,648
Energy and related sales, net		1,196			—			—			—			1,196
Total revenues		226,886			3			230,958			(3	)		457,844
Costs of products sold		199,596			3			192,209			(3	)		391,805
Gross profit		27,290			—			38,749			—			66,039
Selling, general and administrative expenses		16,203			190			18,087			—			34,480
(Gains) loss on dispositions of plant, equipment and timberlands, net		(285	)		—			3			—			(282	)
Operating income (loss)		11,372			(190	)		20,659			—			31,841
Other non-operating income (expense)
Interest expense		(4,721	)		—			(2,537	)		2,470			(4,788	)
Interest income		183			2,376			3			(2,470	)		92
Other, net		18,341			103			(587	)		(17,891	)		(34	)
Total other non-operating income (expense)		13,803			2,479			(3,121	)		(17,891	)		(4,730	)
Income before income taxes		25,175			2,289			17,538			(17,891	)		27,111
Income tax provision (benefit)		(8,944	)		(891	)		2,827			—			(7,008	)
Net income		34,119			3,180			14,711			(17,891	)		34,119
Other comprehensive income (loss)		17,903			6,400			(219	)		(6,181	)		17,903
Comprehensive income	$	52,022		$	9,580		$	14,492		$	(24,072	)	$	52,022

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	679,877		$	28		$	686,277		$	(28	)	$	1,366,154
Energy and related sales – net		6,912			—			—			—			6,912
Total revenues		686,789			28			686,277			(28	)		1,373,066
Costs of products sold		629,360			28			566,716			(28	)		1,196,076
Gross profit		57,429			—			119,561			—			176,990
Selling, general and administrative expenses		53,699			462			49,590			—			103,751
Gains on dispositions of plant, equipment and timberlands, net		(2,565	)		(1,316	)		—			—			(3,881	)
Operating income		6,295			854			69,971			—			77,120
Other non-operating income (expense)
Interest expense		(14,284	)		—			(95,643	)		95,682			(14,245	)
Interest income		468			95,165			193			(95,683	)		143
Other, net		54,789			90,973			1,673			(147,330	)		105
Total other non-operating income (expense)		40,973			186,138			(93,777	)		(147,331	)		(13,997	)
Income (loss) before income taxes		47,268			186,992			(23,806	)		(147,331	)		63,123
Income tax provision (benefit)		(2,421	)		2,098			13,757			—			13,434
Net income (loss)		49,689			184,894			(37,563	)		(147,331	)		49,689
Other comprehensive income (loss)		(23,586	)		(26,392	)		18,907			7,485			(23,586	)
Comprehensive income (loss)	$	26,103		$	158,502		$	(18,656	)	$	(139,846	)	$	26,103

Condensed Consolidating Statements of Income and Comprehensive Income for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net sales	$	669,792		$	15		$	618,012		$	(15	)	$	1,287,804
Energy and related sales, net		2,721			—			—			—			2,721
Total revenues		672,513			15			618,012			(15	)		1,290,525
Costs of products sold		609,524			15			516,747			(15	)		1,126,271
Gross profit		62,989			—			101,265			—			164,254
Selling, general and administrative expenses		54,256			293			47,946			—			102,495
Gains on dispositions of plant, equipment and timberlands, net		(374	)		—			—			—			(374	)
Operating income (loss)		9,107			(293	)		53,319			—			62,133
Other non-operating income (expense)
Interest expense		(14,141	)		—			(5,008	)		6,006			(13,143	)
Interest income		443			5,791			12			(6,006	)		240
Other, net		42,437			94			868			(43,011	)		388
Total other non-operating income (expense)		28,739			5,885			(4,128	)		(43,011	)		(12,515	)
Income before income taxes		37,846			5,592			49,191			(43,011	)		49,618
Income tax provision (benefit)		(12,835	)		419			11,353			—			(1,063	)
Net income		50,681			5,173			37,838			(43,011	)		50,681
Other comprehensive income		17,319			3,171			(5,078	)		1,907			17,319
Comprehensive income	$	68,000		$	8,344		$	32,760		$	(41,104	)	$	68,000

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet as of

September 30, 2014

In thousands	Parent Company		Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	20,308	$	93		$	33,254		$	—		$	53,655
Other current assets		238,216		420,388			313,091			(471,667	)		500,028
Plant, equipment and timberlands, net		250,066		998			440,576			—			691,640
Other assets		1,007,426		304,088			191,166			(1,151,259	)		351,421
Total assets	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744
Liabilities and Shareholders’ Equity
Current liabilities	$	400,103	$	5,026		$	323,128		$	(476,317	)	$	251,940
Long-term debt		250,000		—			749,491			(593,131	)		406,360
Deferred income taxes		73,961		(628	)		70,076			(12,732	)		130,677
Other long-term liabilities		103,772		—			11,792			4,023			119,587
Total liabilities		827,836		4,398			1,154,487			(1,078,157	)		908,564
Shareholders’ equity		688,180		721,169			(176,400	)		(544,769	)		688,180
Total liabilities and shareholders’ equity	$	1,516,016	$	725,567		$	978,087		$	(1,622,926	)	$	1,596,744

Condensed Consolidating Balance Sheet as of

December 31, 2013

In thousands	Parent Company		Guarantors			Non Guarantors		Adjustments/ Eliminations			Consolidated
Assets
Cash and cash equivalents	$	56,216	$	501		$	66,165	$	—		$	122,882
Other current assets		208,814		327,152			253,779		(326,045	)		463,700
Plant, equipment and timberlands, net		247,243		1,054			475,043		—			723,340
Other assets		973,748		236,411			214,301		(1,055,972	)		368,488
Total assets	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410
Liabilities and Shareholders’ Equity
Current liabilities	$	375,535	$	2,855		$	247,855	$	(337,878	)	$	288,367
Long-term debt		250,000		—			513,120		(320,795	)		442,325
Deferred income taxes		70,989		(283	)		78,633		(8,319	)		141,020
Other long-term liabilities		105,021		—			13,792		3,409			122,222
Total liabilities		801,545		2,572			853,400		(663,583	)		993,934
Shareholders’ equity		684,476		562,546			155,888		(718,434	)		684,476
Total liabilities and shareholders’ equity	$	1,486,021	$	565,118		$	1,009,288	$	(1,382,017	)	$	1,678,410

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2014

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	712		$	3,368		$	17,300		$	—		$	21,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(26,368	)		—			(20,668	)		—			(47,036	)
Proceeds from disposal plant, equipment and timberlands, net		2,687			1,355			9			—			4,051
Repayments from intercompany loans		—			10,409			—			(10,409	)		—
Advances of intercompany loans		—			(15,540	)		—			15,540			—
Other		(600	)		—			—			—			(600	)
Total investing activities		(24,281	)		(3,776	)		(20,659	)		5,131			(43,585	)
Financing activities
Net repayments of indebtedness		—			—			(18,128	)		—			(18,128	)
Payment of dividends to shareholders		(13,935	)		—			—			—			(13,935	)
Repurchases of common stock		(12,180	)		—			—			—			(12,180	)
Repayments of intercompany loans		—			—			(10,409	)		10,409			—
Borrowings of intercompany loans		15,540			—			—			(15,540	)		—
Payments related to share-based comp- ensation awards and other		(1,764	)		—			—			—			(1,764	)
Total financing activities		(12,339	)		—			(28,537	)		(5,131	)		(46,007	)
Effect of exchange rate on cash		—			—			(1,015	)		—			(1,015	)
Net decrease in cash		(35,908	)		(408	)		(32,911	)		—			(69,227	)
Cash at the beginning of period		56,216			501			66,165			—			122,882
Cash at the end of period	$	20,308		$	93		$	33,254		$	—		$	53,655

Condensed Consolidating Statement of Cash Flows for the nine

months ended September 30, 2013

In thousands	Parent Company			Guarantors			Non Guarantors			Adjustments/ Eliminations			Consolidated
Net cash provided (used) by
Operating activities	$	30,380		$	10,857		$	54,247		$	209		$	95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(32,075	)		—			(53,805	)		(209	)		(86,089	)
Proceeds from disposal plant, equipment and timberlands, net		379			—			—			—			379
Repayments from intercompany loans		—			15,100			—			(15,100	)		—
Advances of intercompany loans		—			(30,066	)		—			30,066			—
Intercompany capital contributed		—			(91	)		—			91			—
Acquisitions, net of cash acquired		—			—			(210,911	)		—			(210,911	)
Other		(325	)		—			—			—			(325	)
Total investing activities		(32,021	)		(15,057	)		(264,716	)		14,848			(296,946	)
Financing activities
Net proceeds from indebtedness		—			—			182,230			—			182,230
Payments of note offering costs		(160	)		—			(259	)		—			(419	)
Payment of dividends to shareholders		(12,603	)		—			—			—			(12,603	)
Repayments of intercompany loans		(1,100	)		—			(14,000	)		15,100			—
Borrowings of intercompany loans		8,570			—			21,496			(30,066	)		—
Intercompany capital received		—			—			91			(91	)		—
Proceeds from stock options exercised and other		(2,332	)		—			—			—			(2,332	)
Total financing activities		(7,625	)		—			189,558			(15,057	)		166,876
Effect of exchange rate on cash		—			—			333			—			333
Net decrease in cash		(9,266	)		(4,200	)		(20,578	)		—			(34,044	)
Cash at the beginning of period		43,781			4,278			49,620			—			97,679
Cash at the end of period	$	34,515		$	78		$	29,042		$	—		$	63,635

XML

Share Repurchases - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended	29 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Equity [Abstract]
Authorized a share repurchase under a stock repurchase plan	$ 50,000	$ 50,000
Share repurchase program expiration date	2016-05
Repurchases, shares	464,190	755,310
Repurchases, amount	$ 12,200	$ 16,627

XML

Asset Retirement Obligation (Tables)

9 Months Ended

Sep. 30, 2014

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Asset Retirement Obligation

 Following is a summary of activity recorded during the first nine months of 2014 and 2013:

In thousands	2014			2013
Balance at January 1,	$	5,032		$	8,882
Accretion		115			234
Payments		(767	)		(2,719	)
Gain		(128	)		(1,255	)
Balance at September 30,	$	4,252		$	5,142

Schedule of Consolidated Balance Sheets where Asset Retirement Obligations Recorded

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2014		2013
Other current liabilities	$	2,905	$	915
Other long-term liabilities		1,347		4,117
Total	$	4,252	$	5,032

XML

Income Taxes - Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction (Detail)	9 Months Ended
	Sep. 30, 2014
United States - Federal [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2013
Examination in progress	2011 - 2012
United States - State [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2009 - 2013
Examination in progress	2011 - 2012
Canada [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010 - 2013
Examination in progress	2009
Germany [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012 - 2013
Examination in progress	2007 - 2011
France [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010, 2013
Examination in progress	2011 - 2012
United Kingdom [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2010 - 2013
Philippines [Member]
Income Tax Examination [Line Items]
Examinations not yet initiated	2012 - 2013
Examination in progress	2011

XML

Fair Value of Financial Instruments - Carrying Value and Fair Value of Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	$ 410,170	$ 442,325
Fair Value	417,778	446,025
Fixed-Rate Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	250,000	250,000
Fair Value	257,033	254,533
2.40% Term Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	12,592
Fair Value	12,910
2.05% Term Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	53,768	58,785
Fair Value	54,025	57,952
Variable Rate Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Value	93,810	133,540
Fair Value	$ 93,810	$ 133,540

XML

Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total long-term debt	$ 410,170	$ 442,325
Less current portion	(3,810)
Long-term debt, net of current portion	406,360	442,325
Total long-term debt	410,170	442,325
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Total long-term debt	250,000	250,000
Total long-term debt	250,000	250,000
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Total long-term debt	12,592
Total long-term debt	12,592
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Total long-term debt	53,768	58,785
Total long-term debt	53,768	58,785
Revolving Credit Facility, Due Nov. 2016 [Member]
Debt Instrument [Line Items]
Total long-term debt	93,810	133,540
Total long-term debt	$ 93,810	$ 133,540

XML

Earnings Per Share - Details of Basic and Diluted Earnings Per Share (EPS) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Net income	$ 30,372	$ 34,119	$ 49,689	$ 50,681
Weighted average common shares outstanding used in basic EPS	43,049	43,251	43,233	43,118
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs	792	1,077	878	1,095
Weighted average common shares outstanding and common share equivalents used in diluted EPS	43,841	44,328	44,111	44,213
Earnings per share
Basic	$ 0.71	$ 0.79	$ 1.15	$ 1.18
Diluted	$ 0.69	$ 0.77	$ 1.13	$ 1.15

XML

Acquisition

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisition

3. ACQUISITION

On April 30, 2013, we completed the acquisition of all outstanding shares of Dresden Papier GmbH (“Dresden”) from Fortress Paper Ltd. for $211 million, net of cash acquired. Dresden, based in Heidenau, Germany, is the leading global supplier of nonwoven wallpaper base materials, and is a major supplier to most of the world’s largest wallpaper manufacturers. Dresden’s revenue for the full year 2013 was $158.6 million and it employed approximately 146 people at its state-of-the-art, 72,800 short-ton-capacity manufacturing facility. We financed the acquisition through a combination of cash on hand and borrowings under our Revolving Credit Facility.

The acquisition of Dresden added another industry-leading nonwovens product line to our Composite Fibers business, and broadens our relationship with leading producers of consumer and industrial products. The Dresden acquisition also provided additional operational leverage and growth opportunities for Glatfelter globally, particularly in large markets such as Russia and China, and other developing markets in Eastern Europe and Asia.

Dresden now operates as part of our Composite Fibers business unit which manufactures fiber-based products for growing global niche markets including filtration papers for tea and single serve coffee applications, metallized papers, and technical specialties.

The share purchase agreement provides for, among other terms, indemnification provisions for claims that may arise, including among others, uncertain tax positions and other third party claims. The allocation of the purchase price to assets acquired and liabilities assumed is as follows:

In thousands	As originally presented			Cumulative adjustments			Adjusted
Assets
Cash and cash equivalents	$	12,227		$	—		$	12,227
Accounts receivable		23,870			—			23,870
Inventory		13,864			—			13,864
Prepaid and other current assets		6,674			1,386			8,060
Plant, equipment and timberlands		60,951			—			60,951
Intangible assets		87,596			—			87,596
Goodwill		76,256			(1,386	)		74,870
Total assets		281,438			—			281,438
Liabilities
Accounts payable		20,360			(107	)		20,253
Deferred tax liabilities		36,120			—			36,120
Other long term liabilities		1,820			107			1,927
Total liabilities		58,300			—			58,300
Total		223,138			—			223,138
less cash acquired		(12,227	)		—			(12,227	)
Total purchase price	$	210,911		$	—		$	210,911

The adjustments set forth above primarily relate to the recognition of additional indemnification receivable from the seller associated with certain tax matters. Such adjustments were recorded in the third quarter of 2013 and did not impact previously reported results of operations, earnings per share, or cash flows.

For purposes of allocating the total purchase price, assets acquired and liabilities assumed are recorded at their estimated fair market value. The allocation set forth above is based on management’s estimate of the fair value using valuation techniques such as discounted cash flow models, appraisals and similar methodologies. The amount allocated to intangible assets represents the estimated value of customer relationships, technological know-how and trade name.

Acquired property, plant and equipment are being depreciated on a straight-line basis with estimated remaining lives ranging from 5 years to 30 years. Intangible assets are being amortized on a straight-line basis over an average estimated remaining life of 17 years reflecting the expected future value.

In connection with the Dresden acquisition we recorded $74.9 million of goodwill and $87.6 million of intangible assets. The goodwill arising from the acquisition largely relates to strategic benefits, product and market diversification, assembled workforce, and similar factors. For tax purposes, none of the goodwill is deductible. Intangible assets consisted of $9.8 million of non-amortizing tradename, and the remainder consists of technology and customer relationships.

Our results of operations include the results of Dresden prospectively since the acquisition was completed on April 30, 2013. All such results reported herein are included as part of the Composite Fibers business unit. Revenue of Dresden included in our consolidated results of operations for the third quarter and first nine months of 2014 totaled $38.8 million and $118.4 million, respectively, and operating income for the same periods of 2014 totaled $6.5 million and $23.6 million, respectively.

The table below summarizes pro forma financial information as if the acquisition and related financing transaction occurred as of January 1, 2013:

This unaudited pro forma financial information above is not necessarily indicative of what the operating results would have been had the acquisition been completed at the beginning of the respective period nor is it indicative of future results.

In thousands, except per share	Nine months ended September 30, 2013
Pro forma
Net sales	$	1,344,623
Net income		63,709
Diluted earnings per share		1.44

XML

Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
5.375% Notes, Due Oct. 2020 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Oct. 31, 2020
Percentage of aggregate principal amount of outstanding	5.375%	5.375%
2.40% Term Loan, Due Jun. 2022 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Jun. 30, 2022
Percentage of aggregate principal amount of outstanding	2.40%
2.05% Term Loan, Due Mar. 2023 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Mar. 31, 2023
Percentage of aggregate principal amount of outstanding	2.05%	2.05%
Revolving Credit Facility, Due Nov. 2016 [Member]
Debt Instrument [Line Items]
Long-term debt, maturity date	Nov. 30, 2016

XML

Acquisition - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended			9 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Apr. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2014 Minimum [Member]	Sep. 30, 2014 Maximum [Member]	Apr. 30, 2013 Dresden Papier GmbH [Member]	Sep. 30, 2014 Dresden Papier GmbH [Member]	Sep. 30, 2014 Dresden Papier GmbH [Member]	Dec. 31, 2013 Dresden Papier GmbH [Member] Employees t
Business Acquisition [Line Items]
Payment made for acquisition, net of cash acquired	$ 211,000,000				$ 210,911,000				$ 211,000,000
Revenue		465,952,000	457,844,000	1,373,066,000	1,290,525,000					38,800,000	118,400,000	158,600,000
Number of employees												146
Manufacturing capacity												72,800
Date of acquisition											Apr. 30, 2013
Useful life of property plant and equipment							5 years	30 years
Remaining useful life of intangible assets				17 years
Goodwill		87,772,000		87,772,000		95,948,000				74,900,000	74,900,000
Intangible assets		87,596,000		87,596,000						87,600,000	87,600,000
Identifiable intangible assets				9,800,000
Operating income		$ 44,217,000	$ 31,841,000	$ 77,120,000	$ 62,133,000					$ 6,500,000	$ 23,600,000

XML

Gains on Dispositions of Plant, Equipment and Timberlands, Net (Tables)

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Summary for Sale of Timberlands and Other Assets

During the first nine months of 2014 and 2013, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881
2013
Timberlands		172	$	287	$	282
Other		n/a		92		92
Total			$	379	$	374

XML

Acquisition (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Summary of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The allocation of the purchase price to assets acquired and liabilities assumed is as follows:

In thousands	As originally presented			Cumulative adjustments			Adjusted
Assets
Cash and cash equivalents	$	12,227		$	—		$	12,227
Accounts receivable		23,870			—			23,870
Inventory		13,864			—			13,864
Prepaid and other current assets		6,674			1,386			8,060
Plant, equipment and timberlands		60,951			—			60,951
Intangible assets		87,596			—			87,596
Goodwill		76,256			(1,386	)		74,870
Total assets		281,438			—			281,438
Liabilities
Accounts payable		20,360			(107	)		20,253
Deferred tax liabilities		36,120			—			36,120
Other long term liabilities		1,820			107			1,927
Total liabilities		58,300			—			58,300
Total		223,138			—			223,138
less cash acquired		(12,227	)		—			(12,227	)
Total purchase price	$	210,911		$	—		$	210,911

Summary of Pro Forma Financial Information

The table below summarizes pro forma financial information as if the acquisition and related financing transaction occurred as of January 1, 2013:

In thousands, except per share	Nine months ended September 30, 2013
Pro forma
Net sales	$	1,344,623
Net income		63,709
Diluted earnings per share		1.44

XML

Stock-Based Compensation - Compensation Expense for Stock Option Activity (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Restricted Stock Units (RSU) and Performance Share Awards (PSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 854	$ 892	$ 1,874	$ 2,216
Stock Only Stock Appreciation Rights (SOSARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 577	$ 398	$ 1,585	$ 1,198

XML

Acquisition - Summary of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Assets
Cash and cash equivalents	$ 12,227
Accounts receivable	23,870
Inventory	13,864
Prepaid and other current assets	8,060
Plant, equipment and timberlands	60,951
Intangible assets	87,596
Goodwill	74,870
Total assets	281,438
Liabilities
Accounts payable	20,253
Deferred tax liabilities	36,120
Other long term liabilities	1,927
Total liabilities	58,300
Total	223,138
Total	223,138
less cash acquired	(12,227)
Total purchase price	210,911
As Originally Presented [Member]
Assets
Cash and cash equivalents	12,227
Accounts receivable	23,870
Inventory	13,864
Prepaid and other current assets	6,674
Plant, equipment and timberlands	60,951
Intangible assets	87,596
Goodwill	76,256
Total assets	281,438
Liabilities
Accounts payable	20,360
Deferred tax liabilities	36,120
Other long term liabilities	1,820
Total liabilities	58,300
Total	223,138
Total	223,138
less cash acquired	(12,227)
Total purchase price	210,911
Cumulative Adjustments [Member]
Assets
Prepaid and other current assets	1,386
Goodwill	(1,386)
Liabilities
Accounts payable	(107)
Other long term liabilities	$ 107

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Details of Basic and Diluted Earnings Per Share (EPS)

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

	Three months ended September 30
In thousands, except per share	2014		2013
Net income	$	30,372	$	34,119
Weighted average common shares outstanding used in basic EPS		43,049		43,251
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		792		1,077
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,841		44,328
Earnings per share
Basic	$	0.71	$	0.79
Diluted		0.69		0.77

	Nine months ended September 30
In thousands, except per share	2014		2013
Net income	$	49,689	$	50,681
Weighted average common shares outstanding used in basic EPS		43,233		43,118
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		878		1,095
Weighted average common shares outstanding and common share equivalents used in diluted EPS		44,111		44,213
Earnings per share
Basic	$	1.15	$	1.18
Diluted		1.13		1.15

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 for stock options and restricted stock units that were not included in the computation of diluted EPS for the period indicated, because their effect would be anti-dilutive:

	September 30
	2014		2013
Three months ended		282		—
Nine months ended		282		—

XML

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

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 nine months ended September 30, 2014 and 2013.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at July 1, 2013	$	(7,914	)	$	(379	)	$	(152,056	)	$	(4,201	)	$	(164,550	)
Other comprehensive income before reclassifications (net of tax)		14,263			(434	)		—			—			13,829
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			280			3,746			48			4,074
Net current period other comprehensive income (loss)		14,263			(154	)		3,746			48			17,903
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at January 1, 2013	$	316		$	(425	)	$	(159,560	)	$	(4,297	)	$	(163,966	)
Other comprehensive income before reclassifications (net of tax)		6,033			(575	)		—			—			5,458
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			467			11,250			144			11,861
Net current period other comprehensive income (loss)		6,033			(108	)		11,250			144			17,319
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Description													Line Item in Statements of Income
Cash flow hedges (Note 14)
(Gains) losses on cash flow hedges	$	137		$	384		$	1,227		$	641		Costs of products sold
Tax (benefit) expense		(41	)		(104	)		(345	)		(174	)	Income tax provision
Net of tax		96			280			882			467
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		621			572			1,864			1,838		Costs of products sold
		206			201			618			483		Selling, general and administrative
Actuarial losses		2,215			3,792			6,644			12,203		Costs of products sold
		762			1,445			2,287			3,508		Selling, general and administrative
		3,804			6,010			11,413			18,032
		(1,441	)		(2,264	)		(4,325	)		(6,782	)	Income tax provision
Net of tax		2,363			3,746			7,088			11,250
Amortization of deferred benefit other plan items
Prior service costs		(59	)		(100	)		(178	)		(301	)	Costs of products sold
		(13	)		(25	)		(38	)		(74	)	Selling, general and administrative
Actuarial losses		106			155			319			465		Costs of products sold
		23			47			68			141		Selling, general and administrative
		57			77			171			231
		(22	)		(29	)		(66	)		(87	)	Income tax provision
Net of tax		35			48			105			144
Total reclassifications, net of tax	$	2,494		$	4,074		$	8,075		$	11,861

XML

Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Accounting Policies

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 that you have read the audited consolidated financial statements included in our 2013 Annual Report on Form 10-K.

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 that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted for fiscal years beginning after December 15, 2016 and early adoption is not permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

XML

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Summary of Tax Years that Remain Subject to Examination by Major Jurisdiction

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013		2011 - 2012
State		2009 - 2013		2011 - 2012
Canada (1)		2010 - 2013		2009
Germany (1)		2012 - 2013		2007 - 2011
France		2010, 2013		2011 - 2012
United Kingdom		2010 - 2013		N/A
Philippines		2012 - 2013		2011

(1) – includes provincial or similar local jurisdictions, as applicable

Summary of Information Related to Interest and Penalties on Uncertain Tax Positions

The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2014		2013
Interest expense	$	0.1	$	(0.1	)
Penalties		—		—
	September 30 2014		December 31 2013
Accrued interest payable	$	0.7	$	0.6

XML

Subsequent Event - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	0 Months Ended	3 Months Ended		9 Months Ended		0 Months Ended
	Apr. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Oct. 01, 2014 Subsequent Event [Member] Spezialpapierfabrik Oberschmitten GmbH [Member]
Subsequent Event [Line Items]
Date of acquisition						Oct. 31, 2014
Payment made for acquisition in cash	$ 211,000				$ 210,911	$ 10,700
Annual sales		$ 465,952	$ 457,844	$ 1,373,066	$ 1,290,525	$ 33,000

XML

Share Repurchases (Tables)

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Summary of Share Repurchases under Stock Repurchase Plan

The following table summarizes share repurchases made pursuant to a $50 million share repurchase program which expires in May 2016:

	shares		(thousands)
Authorized amount		n/a	$	50,000
Repurchases		755,310		(16,627	)
Remaining authorization			$	33,373

XML

Income Taxes - Summary of Information Related to Interest and Penalties on Uncertain Tax Positions (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Interest expense	$ 0.1	$ (0.1)
Accrued interest payable	$ 0.7		$ 0.6

XML

Financial Derivatives and Hedging Activities - Income or (Loss) from Derivative Instruments Recognized in Results of Operations (Detail) (Forward Foreign Currency Exchange Contracts [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Costs of Products Sold [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion of derivative instruments, gain (loss)	$ (137)	$ (384)	$ (1,227)	$ (641)
Other - Net [Member] | Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Ineffective portion of derivative instruments, gain (loss)	81	49	181	74
Other - Net [Member] | Not Designated as Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss)	$ 595	$ (348)	$ 1,792	$ (794)

XML

Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Net sales	$ 465,092	$ 456,648	$ 1,366,154	$ 1,287,804
Energy and related sales, net	860	1,196	6,912	2,721
Total revenues	465,952	457,844	1,373,066	1,290,525
Costs of products sold	385,439	391,805	1,196,076	1,126,271
Gross profit	80,513	66,039	176,990	164,254
Selling, general and administrative expenses	37,886	34,480	103,751	102,495
Gains on dispositions of plant, equipment and timberlands, net	(1,590)	(282)	(3,881)	(374)
Operating income	44,217	31,841	77,120	62,133
Non-operating income (expense)
Interest expense	(4,671)	(4,788)	(14,245)	(13,143)
Interest income	30	92	143	240
Other, net	(167)	(34)	105	388
Total non-operating expense	(4,808)	(4,730)	(13,997)	(12,515)
Income before income taxes	39,409	27,111	63,123	49,618
Income tax provision (benefit)	9,037	(7,008)	13,434	(1,063)
Net income	$ 30,372	$ 34,119	$ 49,689	$ 50,681
Earnings per share
Basic	$ 0.71	$ 0.79	$ 1.15	$ 1.18
Diluted	$ 0.69	$ 0.77	$ 1.13	$ 1.15
Cash dividends declared per common share	$ 0.11	$ 0.10	$ 0.33	$ 0.30
Weighted average shares outstanding
Basic	43,049	43,251	43,233	43,118
Diluted	43,841	44,328	44,111	44,213

XML

Acquisition - Summary of Pro Forma Financial Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Pro forma
Net sales	$ 1,344,623
Net income	$ 63,709
Diluted earnings per share	$ 1.44

XML

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating activities
Net income	$ 49,689	$ 50,681
Adjustments to reconcile to net cash provided by operations:
Depreciation, depletion and amortization	53,547	50,028
Amortization of debt issue costs and original issue discount	985	977
Pension expense, net of unfunded benefits paid	4,575	9,646
Charge for impairment of intangible asset	3,262
Deferred income tax benefit	(4,434)	(10,876)
Gains on dispositions of plant, equipment and timberlands, net	(3,881)	(374)
Share-based compensation	5,811	5,523
Change in operating assets and liabilities
Accounts receivable	(35,528)	(23,496)
Inventories	(19,982)	7,225
Prepaid and other current assets	(2,367)	4,659
Accounts payable	(25,576)	5,065
Accruals and other current liabilities	(6,214)	2,218
Other	1,493	(5,583)
Net cash provided by operating activities	21,380	95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(47,036)	(86,089)
Proceeds from disposals of plant, equipment and timberlands, net	4,051	379
Acquisition, net of cash acquired		(210,911)
Other	(600)	(325)
Net cash used by investing activities	(43,585)	(296,946)
Financing activities
Net borrowings under (repayments of) revolving credit facility	(30,720)	126,139
Payments of borrowing costs		(419)
Proceeds from term loans	12,592	56,091
Repurchases of common stock	(12,180)
Payments of dividends	(13,935)	(12,603)
Payments related to share-based compensation awards and other	(1,764)	(2,332)
Net cash (used) provided by financing activities	(46,007)	166,876
Effect of exchange rate changes on cash	(1,015)	333
Net decrease in cash and cash equivalents	(69,227)	(34,044)
Cash and cash equivalents at the beginning of period	122,882	97,679
Cash and cash equivalents at the end of period	53,655	63,635
Cash paid for:
Interest, net of amounts capitalized	9,959	9,388
Income taxes, net	$ 19,928	$ 10,834

XML

Asset Impairment Charge - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Non-cash asset impairment charge	$ 3,262
Dresden Papier GmbH [Member] | Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Non-cash asset impairment charge	$ 3,300

XML

Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories, Net of Reserves

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2014		2013
Raw materials	$	59,410	$	59,440
In-process and finished		118,620		109,578
Supplies		70,025		67,292
Total	$	248,055	$	236,310

XML

Asset Retirement Obligation - Schedule of Asset Retirement Obligation (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]
Balance at January 1,	$ 5,032	$ 8,882
Accretion	115	234
Payments	(767)	(2,719)
Gain	(128)	(1,255)
Balance at September 30,	$ 4,252	$ 5,142

XML

Share Repurchases

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Share Repurchases

16. SHARE REPURCHASES

The following table summarizes share repurchases made pursuant to a $50 million share repurchase program which expires in May 2016:

	shares		(thousands)
Authorized amount		n/a	$	50,000
Repurchases		755,310		(16,627	)
Remaining authorization			$	33,373

The amounts set forth above include 464,190 shares at a cost of $12.2 million of repurchases completed in 2014.

XML

Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2014			2013
Revolving credit facility, due Nov. 2016	$	93,810		$	133,540
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		12,592			—
2.05% Term Loan, due Mar. 2023		53,768			58,785
Total long-term debt		410,170			442,325
Less current portion		(3,810	)		—
Long-term debt, net of current portion	$	406,360		$	442,325

XML

Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

18. SEGMENT INFORMATION

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	154.5	$	161.5	$	74.4	$	69.5	$	236.2	$	225.7	$	—		$	—		$	465.1		$	456.6
Energy and related sales, net		—		—		—		—		0.9		1.2		—			—			0.9			1.2
Total revenue		154.5		161.5		74.4		69.5		237.1		226.9		—			—			466.0			457.8
Cost of products sold		123.7		129.5		64.7		63.7		195.2		196.4		1.8			2.3			385.4			391.8
Gross profit (loss)		30.8		31.9		9.7		5.8		41.9		30.5		(1.8	)		(2.3	)		80.5			66.0
SG&A		12.6		13.0		2.2		1.9		14.1		12.5		9.0			7.1			37.9			34.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(1.6	)		(0.3	)		(1.6	)		(0.3	)
Total operating income (loss)		18.1		18.9		7.5		3.9		27.8		18.1		(9.2	)		(9.1	)		44.2			31.8
Non-operating expense		—		—		—		—		—		—		(4.8	)		(4.7	)		(4.8	)		(4.7	)
Income (loss) before income taxes	$	18.1	$	18.9	$	7.5	$	3.9	$	27.8	$	18.1	$	(14.0	)	$	(13.8	)	$	39.4		$	27.1
Supplementary Data
Net tons sold (thousands)		40.1		40.3		26.3		24.8		208.4		203.6		—			—			274.7			268.7
Depreciation, depletion and amortization	$	7.4	$	7.1	$	2.3	$	2.2	$	6.5	$	8.3	$	0.5		$	0.4		$	16.7		$	18.0
Capital expenditures		5.4		12.8		1.3		0.8		9.7		11.1		0.5			0.7			16.9			25.3
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	470.1	$	415.9	$	216.2	$	202.2	$	679.9	$	669.8	$	—		$	—		$	1,366.2		$	1,287.8
Energy and related sales, net		—		—		—		—		6.9		2.7		—			—			6.9			2.7
Total revenue		470.1		415.9		216.2		202.2		686.8		672.5		—			—			1,373.1			1,290.5
Cost of products sold		376.7		334.5		189.9		182.0		624.3		599.7		5.2			10.0			1,196.1			1,126.3
Gross profit (loss)		93.4		81.3		26.3		20.1		62.5		72.8		(5.2	)		(10.0	)		177.0			164.3
SG&A		38.8		34.4		6.8		6.4		39.5		40.3		18.7			21.3			103.8			102.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(3.9	)		(0.4	)		(3.9	)		(0.4	)
Total operating income (loss)		54.6		46.9		19.5		13.7		23.0		32.5		(20.0	)		(31.0	)		77.1			62.1
Non-operating expense		—		—		—		—		—		—		(14.0	)		(12.5	)		(14.0	)		(12.5	)
Income (loss) before income taxes	$	54.6	$	46.9	$	19.5	$	13.7	$	23.0	$	32.5	$	(34.0	)	$	(43.5	)	$	63.1		$	49.6
Supplementary Data
Net tons sold (thousands)		119.5		97.9		76.0		72.4		601.3		601.6		—			—			796.8			771.9
Depreciation, depletion and amortization	$	22.7	$	17.7	$	6.9	$	6.6	$	22.6	$	24.9	$	1.3		$	0.8		$	53.5		$	50.0
Capital expenditures		16.7		49.0		4.1		4.8		24.5		27.9		1.7			4.4			47.0			86.1

The sum of individual amounts set forth above may not agree to the consolidated financial statements included herein due to rounding.

On April 30, 2013, we completed the acquisition of Dresden for $211 million. Dresden’s results are included prospectively from the acquisition date as part of the Composite Fibers business unit. For additional information related to this acquisition, refer to Note 3 – Acquisition.

XML

Fair Value of Financial Instruments - Additional Information (Detail) (5.375% Fixed Rate Bonds [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
5.375% Fixed Rate Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of fixed rate debt	$ 250.0	$ 250.0
Percentage of aggregate principal amount of outstanding	5.375%	5.375%

XML

Organization

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Organization

1. ORGANIZATION

P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, Pennsylvania, our manufacturing facilities are located in Spring Grove, Pennsylvania; Chillicothe and Freemont, Ohio; Gatineau, Quebec, Canada; Lydney, England; Caerphilly, Wales; Gernsbach, Falkenhagen and Heidenau, Germany; Scaër, France; and the Philippines. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

XML

Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 30,372	$ 34,119	$ 49,689	$ 50,681
Foreign currency translation adjustments	(33,450)	14,263	(33,255)	6,033
Net change in:
Deferred gains (losses) on cash flow hedges, net of taxes of $(593), $62, $(974) and $28, respectively	1,475	(154)	2,476	(108)
Unrecognized retirement obligations, net of taxes of $(1,463), $(2,293), $(4,391) and $(6,869), respectively	2,398	3,794	7,193	11,394
Other comprehensive income (loss)	(29,577)	17,903	(23,586)	17,319
Comprehensive income	$ 795	$ 52,022	$ 26,103	$ 68,000

XML

Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories

11. INVENTORIES

Inventories, net of reserves, were as follows:

	September 30		December 31
In thousands	2014		2013
Raw materials	$	59,410	$	59,440
In-process and finished		118,620		109,578
Supplies		70,025		67,292
Total	$	248,055	$	236,310

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	GLT
Entity Registrant Name	GLATFELTER P H CO
Entity Central Index Key	0000041719
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		42,942,534

XML

Long-Term Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

12. LONG-TERM DEBT

Long-term debt is summarized as follows:

	September 30			December 31
In thousands	2014			2013
Revolving credit facility, due Nov. 2016	$	93,810		$	133,540
5.375% Notes, due Oct. 2020		250,000			250,000
2.40% Term Loan, due Jun. 2022		12,592			—
2.05% Term Loan, due Mar. 2023		53,768			58,785
Total long-term debt		410,170			442,325
Less current portion		(3,810	)		—
Long-term debt, net of current portion	$	406,360		$	442,325

On November 21, 2011, we entered into an amendment to our revolving credit agreement with a consortium of banks (the “Revolving Credit Facility”) which increased the amount available for borrowing to $350 million, extended the maturity of the facility to November 21, 2016, and instituted a lower interest rate pricing grid.

For all U.S. dollar denominated borrowings under the Revolving Credit Facility, the borrowing rate is, at our option, (a) the bank’s base rate which is equal to the greater of i) the prime rate; ii) the federal funds rate plus 50 basis points plus an applicable spread ranging from 25 basis points to 125 basis points based on our corporate credit ratings determined by Standard & Poor’s Rating Services and Moody’s Investor Service, Inc. (the “Corporate Credit Rating”); or iii) the daily Euro-rate plus 100 basis points; or (b) the daily Euro-rate plus an applicable margin ranging from 125 basis points to 225 basis points based on the Corporate Credit Rating. For non-US dollar denominated borrowings, interest is based on (b) above.

The Revolving Credit Facility contains a number of customary covenants for financings of this type that, among other things, restrict our ability to dispose of or create liens on assets, incur additional indebtedness, repay other indebtedness, limits certain intercompany financing arrangements, make acquisitions and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios including: i) maximum net debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio (the “leverage ratio”); ii) a consolidated EBITDA to interest expense ratio; and iii) beginning December 31, 2015, a minimum liquidity ratio. The most restrictive of our covenants is a maximum leverage ratio of 3.5x. As of September 30, 2014, the leverage ratio, as calculated in accordance with the definition in our credit agreement, was 2.3x, within the limits set forth in 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 facility.

On October 3, 2012, we completed a private placement offering of $250.0 million aggregate principal amount of 5.375% Senior Notes due 2020 (the “5.375% Notes”). The 5.375% Notes are fully and unconditionally guaranteed, jointly and severally, by PHG Tea Leaves, Inc., Mollanvick, Inc., and Glatfelter Holdings, LLC (the “Guarantors”).

Interest on the 5.375% Notes is payable semiannually in arrears on April 15 and October 15, commencing on April 15, 2013.

The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a “make-whole” premium as specified in the Indenture. These Notes and the guarantees of the notes are senior obligations of the Company and the Guarantors, respectively, rank equally in right of payment with future senior indebtedness of the Company and the Guarantors and will mature on October 15, 2020.

The 5.375% Notes contain various covenants customary to indebtedness of this nature including limitations on i) the amount of indebtedness that may be incurred; ii) certain restricted payments including common stock dividends; iii) distributions from certain subsidiaries; iv) sales of assets; v) transactions amongst subsidiaries; and vi) incurrence of liens on assets. In addition, the 5.375% Notes contain cross default provisions that could result in all such notes becoming due and payable in the event of a failure to repay debt outstanding under the Revolving Credit Agreement at maturity or a default under the Revolving Credit Agreement that accelerates the debt outstanding thereunder. As of September 30, 2014, we met all of the requirements of our debt covenants.

Glatfelter Gernsbach GmbH & Co. KG (“Gernsbach”), a wholly-owned subsidiary of ours, entered into two separate agreements with IKB Deutsche Industriebank AG, Düsseldorf (“IKB”). Pursuant to the first agreement, dated April 11, 2013, Gernsbach borrowed approximately €42.7 million (or $57.6 million) aggregate principal amount (the “2013 IKB Loan”). The 2013 IKB Loan is repayable in 32 quarterly installments beginning on June 30, 2015 and ending on March 31, 2023 and bears interest at a rate of 2.05% per annum.

Pursuant to the second agreement with IKB dated September 4, 2014, Gernsbach borrowed €10.0 million (or $12.6 million) aggregate principal amount (the “2014 IKB Loan”). The 2014 IKB Loan is repayable in 27 quarterly installments beginning on September 30, 2015 and ending on June 30, 2022 and bears interest at a rate of 2.40% per annum. Interest on the IKB Loan or portion thereof is payable quarterly in each year of the term of the loan with interest accruing from the date the loan or portion thereof is drawn.

The IKB loans provide for representations, warranties and covenants customary for financings of these types. The financial covenants contained in each of the IBK loans, which relate to the minimum ratio of consolidated EBITDA to consolidated interest expense and the maximum ratio of consolidated total net debt to consolidated adjusted EBITDA, will be calculated by reference to our Amended and Restated Credit Agreement, dated November 21, 2011.

P. H. Glatfelter Company guarantees all debt obligations of its subsidiaries, including each of the IKB loans. All such obligations are recorded in these condensed consolidated financial statements.

As of September 30, 2014 and December 31, 2013, we had $5.2 million of letters of credit issued to us by certain financial institutions. 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. 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.

XML

Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Income and Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Income Statements, Captions [Line Items]
Net sales	$ 465,092	$ 456,648	$ 1,366,154	$ 1,287,804
Energy and related sales, net	860	1,196	6,912	2,721
Total revenues	465,952	457,844	1,373,066	1,290,525
Costs of products sold	385,439	391,805	1,196,076	1,126,271
Gross profit	80,513	66,039	176,990	164,254
Selling, general and administrative expenses	37,886	34,480	103,751	102,495
(Gains) loss on dispositions of plant, equipment and timberlands, net	(1,590)	(282)	(3,881)	(374)
Operating income (loss)	44,217	31,841	77,120	62,133
Other non-operating income (expense)
Interest expense	(4,671)	(4,788)	(14,245)	(13,143)
Interest income	30	92	143	240
Other, net	(167)	(34)	105	388
Total other non-operating income (expense)	(4,808)	(4,730)	(13,997)	(12,515)
Income (loss) before income taxes	39,409	27,111	63,123	49,618
Income tax provision (benefit)	9,037	(7,008)	13,434	(1,063)
Net income	30,372	34,119	49,689	50,681
Other comprehensive income (loss)	(29,577)	17,903	(23,586)	17,319
Comprehensive income	795	52,022	26,103	68,000
Adjustments/ Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	(7)	(3)	(28)	(15)
Total revenues	(7)	(3)	(28)	(15)
Costs of products sold	(7)	(3)	(28)	(15)
Operating income (loss)
Other non-operating income (expense)
Interest expense	90,217	2,470	95,682	6,006
Interest income	(90,218)	(2,470)	(95,683)	(6,006)
Other, net	(105,812)	(17,891)	(147,330)	(43,011)
Total other non-operating income (expense)	(105,813)	(17,891)	(147,331)	(43,011)
Income (loss) before income taxes	(105,813)	(17,891)	(147,331)	(43,011)
Net income	(105,813)	(17,891)	(147,331)	(43,011)
Other comprehensive income (loss)	8,920	(6,181)	7,485	1,907
Comprehensive income	96,893	(24,072)	(139,846)	(41,104)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	236,182	225,690	679,877	669,792
Energy and related sales, net	860	1,196	6,912	2,721
Total revenues	237,042	226,886	686,789	672,513
Costs of products sold	196,888	199,596	629,360	609,524
Gross profit	40,154	27,290	57,429	62,989
Selling, general and administrative expenses	19,352	16,203	53,699	54,256
(Gains) loss on dispositions of plant, equipment and timberlands, net	(1,590)	(285)	(2,565)	(374)
Operating income (loss)	22,392	11,372	6,295	9,107
Other non-operating income (expense)
Interest expense	(4,790)	(4,721)	(14,284)	(14,141)
Interest income	152	183	468	443
Other, net	14,491	18,341	54,789	42,437
Total other non-operating income (expense)	9,853	13,803	40,973	28,739
Income (loss) before income taxes	32,245	25,175	47,268	37,846
Income tax provision (benefit)	1,873	(8,944)	(2,421)	(12,835)
Net income	30,372	34,119	49,689	50,681
Other comprehensive income (loss)	(29,577)	17,903	(23,586)	17,319
Comprehensive income	795	52,022	26,103	68,000
Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	7	3	28	15
Total revenues	7	3	28	15
Costs of products sold	7	3	28	15
Selling, general and administrative expenses	306	190	462	293
(Gains) loss on dispositions of plant, equipment and timberlands, net			(1,316)
Operating income (loss)	(306)	(190)	854	(293)
Other non-operating income (expense)
Interest income	89,951	2,376	95,165	5,791
Other, net	90,952	103	90,973	94
Total other non-operating income (expense)	180,903	2,479	186,138	5,885
Income (loss) before income taxes	180,597	2,289	186,992	5,592
Income tax provision (benefit)	470	(891)	2,098	419
Net income	180,127	3,180	184,894	5,173
Other comprehensive income (loss)	(25,844)	6,400	(26,392)	3,171
Comprehensive income	154,283	9,580	158,502	8,344
Non Guarantors [Member]
Condensed Income Statements, Captions [Line Items]
Net sales	228,910	230,958	686,277	618,012
Total revenues	228,910	230,958	686,277	618,012
Costs of products sold	188,551	192,209	566,716	516,747
Gross profit	40,359	38,749	119,561	101,265
Selling, general and administrative expenses	18,228	18,087	49,590	47,946
(Gains) loss on dispositions of plant, equipment and timberlands, net		3
Operating income (loss)	22,131	20,659	69,971	53,319
Other non-operating income (expense)
Interest expense	(90,098)	(2,537)	(95,643)	(5,008)
Interest income	145	3	193	12
Other, net	202	(587)	1,673	868
Total other non-operating income (expense)	(89,751)	(3,121)	(93,777)	(4,128)
Income (loss) before income taxes	(67,620)	17,538	(23,806)	49,191
Income tax provision (benefit)	6,694	2,827	13,757	11,353
Net income	(74,314)	14,711	(37,563)	37,838
Other comprehensive income (loss)	16,924	(219)	18,907	(5,078)
Comprehensive income	$ (57,390)	$ 14,492	$ (18,656)	$ 32,760

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Taxes on deferred gains (losses) on cash flow hedges	$ (593)	$ 62	$ (974)	$ 28
Taxes on unrecognized retirement obligations	$ (1,463)	$ (2,293)	$ (4,391)	$ (6,869)

XML

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

6. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth details of the changes in accumulated other comprehensive income (losses) for the three months and nine months ended September 30, 2014 and 2013.

in thousands	Currency translation adjustments			Unrealized gain (loss) on cash flow hedges			Change in pensions			Change in other postretirement defined benefit plans			Total
Balance at July 1, 2014	$	15,336		$	60		$	(84,822	)	$	60		$	(69,366	)
Other comprehensive income before reclassifications (net of tax)		(33,450	)		1,379			—			—			(32,071	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			96			2,363			35			2,494
Net current period other comprehensive income (loss)		(33,450	)		1,475			2,363			35			(29,577	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at July 1, 2013	$	(7,914	)	$	(379	)	$	(152,056	)	$	(4,201	)	$	(164,550	)
Other comprehensive income before reclassifications (net of tax)		14,263			(434	)		—			—			13,829
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			280			3,746			48			4,074
Net current period other comprehensive income (loss)		14,263			(154	)		3,746			48			17,903
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)
Balance at January 1, 2014	$	15,141		$	(941	)	$	(89,547	)	$	(10	)	$	(75,357	)
Other comprehensive income before reclassifications (net of tax)		(33,255	)		1,594			—			—			(31,661	)
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			882			7,088			105			8,075
Net current period other comprehensive income (loss)		(33,255	)		2,476			7,088			105			(23,586	)
Balance at September 30, 2014	$	(18,114	)	$	1,535		$	(82,459	)	$	95		$	(98,943	)
Balance at January 1, 2013	$	316		$	(425	)	$	(159,560	)	$	(4,297	)	$	(163,966	)
Other comprehensive income before reclassifications (net of tax)		6,033			(575	)		—			—			5,458
Amounts reclassified from accumulated other comprehensive income (net of tax)		—			467			11,250			144			11,861
Net current period other comprehensive income (loss)		6,033			(108	)		11,250			144			17,319
Balance at September 30, 2013	$	6,349		$	(533	)	$	(148,310	)	$	(4,153	)	$	(146,647	)

Reclassifications out of accumulated other comprehensive income were as follows:

	Three months ended September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Description													Line Item in Statements of Income
Cash flow hedges (Note 14)
(Gains) losses on cash flow hedges	$	137		$	384		$	1,227		$	641		Costs of products sold
Tax (benefit) expense		(41	)		(104	)		(345	)		(174	)	Income tax provision
Net of tax		96			280			882			467
Retirement plan obligations (Note 9)
Amortization of deferred benefit pension plan items
Prior service costs		621			572			1,864			1,838		Costs of products sold
		206			201			618			483		Selling, general and administrative
Actuarial losses		2,215			3,792			6,644			12,203		Costs of products sold
		762			1,445			2,287			3,508		Selling, general and administrative
		3,804			6,010			11,413			18,032
		(1,441	)		(2,264	)		(4,325	)		(6,782	)	Income tax provision
Net of tax		2,363			3,746			7,088			11,250
Amortization of deferred benefit other plan items
Prior service costs		(59	)		(100	)		(178	)		(301	)	Costs of products sold
		(13	)		(25	)		(38	)		(74	)	Selling, general and administrative
Actuarial losses		106			155			319			465		Costs of products sold
		23			47			68			141		Selling, general and administrative
		57			77			171			231
		(22	)		(29	)		(66	)		(87	)	Income tax provision
Net of tax		35			48			105			144
Total reclassifications, net of tax	$	2,494		$	4,074		$	8,075		$	11,861

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

5. EARNINGS PER SHARE

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

	Three months ended September 30
In thousands, except per share	2014		2013
Net income	$	30,372	$	34,119
Weighted average common shares outstanding used in basic EPS		43,049		43,251
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		792		1,077
Weighted average common shares outstanding and common share equivalents used in diluted EPS		43,841		44,328
Earnings per share
Basic	$	0.71	$	0.79
Diluted		0.69		0.77

	Nine months ended September 30
In thousands, except per share	2014		2013
Net income	$	49,689	$	50,681
Weighted average common shares outstanding used in basic EPS		43,233		43,118
Common shares issuable upon exercise of dilutive stock options and PSAs / RSUs		878		1,095
Weighted average common shares outstanding and common share equivalents used in diluted EPS		44,111		44,213
Earnings per share
Basic	$	1.15	$	1.18
Diluted		1.13		1.15

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

	September 30
	2014		2013
Three months ended		282		—
Nine months ended		282		—

XML

Commitments, Contingencies and Legal Proceedings

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Proceedings

17. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Fox River – Neenah, Wisconsin

Background. We have significant uncertainties 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”).

After giving effect to settlements reached with the Governments, the remaining potentially responsible parties (“PRPs”) consist of us, Georgia-Pacific Consumer Products, L.P. (formerly known as Fort James Operating Company), and NCR Corporation (“NCR”).

The United States Environmental Protection Agency (“EPA”) has divided the Site into five “operable units”, including the most upstream and portion of the site on which our facility was located (“OU1”) and four downstream reaches of the river and bay (“OU2-5”).

The Site has been subject to certain studies and the parties conducted certain demonstration projects and completed certain interim cleanups. The permanent cleanup, known as a “remedial action” under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”), consists of sediment dredging, installation of engineered caps, and placement of sand covers in various areas in the bed of the river.

We and WTM I Company implemented the remedial action in OU1 under a consent decree with the Governments; Menasha Corporation made a financial contribution to that work. That project began in 2004 and the work is complete other than on-going monitoring and maintenance.

For the downstream portion of the Site, referred to as OU2-5, work has proceeded primarily under a Unilateral Administrative Order (“UAO”) issued in November 2007 by the EPA to us and seven other respondents. The remedial actions have been funded, to date, primarily by NCR and its indemnitors, including Appvion, Inc. (formerly known as Appleton Papers Inc.). Work is scheduled to continue in OU2-5 through 2017, with monitoring and maintenance to follow.

Although we have not contributed funds towards remedial actions other than in OU1, as more fully discussed below, significant uncertainties exist pertaining to the ultimate allocation of OU2-5 remediation costs as well as the shorter term funding of the remedial actions for OU2-5.

Cost estimates. Estimates of the Site remediation change over time as we, or others, gain additional data and experience at the Site. In addition, disagreement exists over the likely costs for some of this work. On October 14, 2014, the Governments represented to the United States District Court in Green Bay that $1.1 billion provided an “upper end estimate of total past and future response costs” including a $100 million “uncertainty premium for future response costs.” Based upon estimates made by the Governments and independent estimates commissioned by various potentially responsible parties, we have no reason to disagree with the Governments’ assertion. Much of that amount has already been incurred, including approximately $100 million for OU1 and what we believe to be approximately $500 million for OU2-5.

The Governments previously indicated their expectation to have work in OU2-5 completed at a rate estimated to cost at least $70 million in 2015 and 2016 and at lower rates thereafter. We understand the cost for the 2015 dredging season may total nearly $90 million.

As the result of a partial settlement, Georgia-Pacific has no obligation to pay for work upstream of a line near Georgia-Pacific’s Green Bay West Mill located in OU4. We believe substantially all in-water work upstream of this line has been completed as of the end of the 2014 dredging season.

NRDs. The Governments’ NRD assessment documents originally claimed we are jointly and severally responsible for NRDs with a value between $176 million and $333 million. The Governments claimed this range should be inflated to current dollars and then certain unreimbursed past assessment costs should be added, so the range of their claim was $287 million to $423 million in 2009.

However, on October 14, 2014, the Governments represented to the district court that if certain settlements providing $45.9 million toward compensation of NRDs were approved the total NRD recovery would amount to $105 million. The Governments would consider those recoveries adequate and they would withdraw their claims against us and NCR for additional compensation of NRDs. Some of the settling parties, including all of the settling parties contributing the $45.9 million, have waived their rights to seek contribution from us of the settlement amounts. We previously paid a portion of the other $59 million in earlier settlements.

Allocation Litigation. In January 2008, NCR and Appvion brought an action in the federal district court in Green Bay to allocate among all of the parties responsible for this Site all of the costs incurred by the Governments, all of the costs incurred by the parties, and all of the NRDs owed to the Natural Resource Trustees. We have previously referred to this case as the “Whiting Litigation.” After several summary judgment rulings and a trial, the trial court entered judgment in the Whiting Litigation, allocating to NCR 100 percent of the costs (a) of the OU2-5 cleanup, (b) NRDs, (c) past and future costs incurred by the Governments in OU2-5, and (d) past and future costs incurred by any of the other parties net of an appropriate equitable adjustment for insurance recoveries. As to Glatfelter, NCR was judged liable to us for $4.28 million and any future costs or damages we may incur. NCR was held not responsible for costs incurred in OU1.

All parties appealed the Whiting Litigation judgment to the United States Court of Appeals for the Seventh Circuit. On September 25, 2014, that court affirmed, holding that if knowledge and fault were the only equitable factors governing allocation of costs and NRDs at the Site, NCR would owe 100% of all costs and damages in OU2-5, but would not have a share of costs in OU1, which is upstream of the outfall of the facilities for which NCR is responsible. However, the court of appeals vacated the judgment and remanded the case for the district court’s further consideration of whether any other equitable factors might cause the district court to alter its allocation. We contend the district court should, after further consideration, reinstate the 100%, or some similar very high, allocation to NCR of all the costs, and we should bear no share or a very small share.

However, in the interim NCR may take a contrary position and seek contributions from others for future work until all allocation issues are resolved. In order to ensure compliance with the UAO and to ensure work continues in OU2-5, in the absence of an agreement amongst us, NCR and Georgia-Pacific, it is possible the Governments may attempt to force the funding while a final allocation in the Whiting Litigation is pursued. We cannot predict the outcome of any such actions or any possible resulting litigation. Therefore, in the interim it is conceivable we may be required to contribute resources to fund a portion of the annual cost of remedial actions in OU2-5. Although we are unable to determine with any degree of certainty the amount we may fund, such amounts could be significant. Any amounts we pay or any other party pays in the interim are likely to be subject to reallocation when the Whiting Litigation is resolved. We do not know the timing of further proceedings in the Whiting Litigation, nor can we predict when it will be finally resolved.

Appvion and NCR have had a cost-sharing agreement since at least 1998. The court of appeals held if Appvion incurred any recoverable costs because the Governments had named Appvion as a potentially responsible party rather than as a consequence of Appvion’s obligations to NCR, then Appvion may have a right to recover those costs under CERCLA. We contend Appvion has no such costs, and if it did, we would have a right to contribution of any recovery against NCR and others.

Enforcement Litigation. In October 2010, the United States and the State of Wisconsin brought an action (“Government Action”) in the federal district court in Green Bay against us and 13 other defendants seeking (a) to recover all of their unreimbursed past costs, (b) a declaration of joint and several liability for all of their future costs, (c) NRDs, and (d) a declaration of liability of all of the respondents on the UAO to perform the remedy in OU2-5 as required by the UAO and a mandatory permanent injunction to the same effect. The last of these claims was tried in 2012, and in May 2013, the district court enjoined us, NCR, WTM I, and Menasha Corp. to perform the work under the UAO. As the result of partial settlements, U.S. Paper Mills Corp. and Georgia-Pacific Consumer Products L.P. agreed to joint and several liability for some of the work. Appvion was held not liable for this Site under CERCLA.

All other potentially responsible parties, including the United States and the State of Wisconsin, have either settled with the Governments or entered into a consent decree that awaits approval from the United States and then the district court. As a result, the remaining defendants consist of us, NCR, and Georgia-Pacific.

We appealed the injunction to the United States Court of Appeals for the Seventh Circuit, as did NCR, WTM I, and Menasha. On September 25, 2014, the court of appeals decided our and NCR’s appeals; the others’ appeals were not decided because they have entered into a settlement that awaits approval. The court of appeals vacated the injunction as to us and NCR. However, it affirmed the district court’s ruling that we are liable for response actions in OU2-5 and for complying with the UAO.

Except as described above with respect to the claim for NRDs, we do not know the Governments’ intentions concerning further litigation of the Government Action, nor do we know the schedule for any further proceedings. We cannot now predict when it will be resolved.

Reserves for the Site. As of September 30, 2014, our reserve for the Site totaled $16.3 million, including our remediation and ongoing monitoring obligations in OU1, our share of remediation of the rest of the Site, NRDs and all pending, threatened or asserted and unasserted claims against us relating to PCB contamination at the Site. Of our total reserve for the Fox River, $0.1 million is recorded in the accompanying condensed consolidated balance sheets under the caption “Environmental liabilities” and the remainder is recorded under the caption “Other long term liabilities.” In the event we are required to fund remediation activities in OU2-5, such developments would affect the classification of the current portion of our reserve.

As described above, the appellate court vacated and remanded for reconsideration the district court’s ruling in the Whiting Litigation that NCR would bear 100% of costs for the downstream portion of the Site. We continue to believe we will not be allocated a significant share of liability in any final equitable allocation of the response costs for OU2-5 or for NRDs. The accompanying condensed consolidated financial statements do not include reserves for any future defense costs, which could be significant, related to our involvement at the Site.

In setting our reserve for the Site, we have assessed our legal defenses, including our successful defenses to the allegations made in the Whiting Litigation and the original determination in the Whiting Litigation that NCR owes us “full contribution” for response costs and for NRDs that we may become obligated to pay except in OU1. We assume we will not bear the entire cost of remediation or damages to the exclusion of other known parties at the Site, who are also jointly and severally liable. The existence and ability of other parties to participate has also been taken into account in setting our reserve, and setting our reserve is generally based on our evaluation of recent publicly available financial information on certain of the responsible parties and any known insurance, indemnity or cost sharing agreements between responsible parties and third parties. In addition, we have considered the magnitude, nature, location and circumstances associated with the various discharges of PCBs to the river and the relationship of those discharges to identified contamination. We will continue to evaluate our exposure and the level of our reserves, including, but not limited to, our potential share of the costs and NRDs, if any, associated with the Site.

Other Information. The Governments have published studies estimating the amount of PCBs discharged by each identified potentially responsible party to the lower Fox River and Green Bay. These reports estimate our Neenah mill’s share of the mass of PCBs discharged to be as high as 27 percent. The district court has found the discharge mass estimates used in these studies not to be accurate. We believe the Neenah mill’s absolute and relative contribution of PCB mass is significantly lower than the estimates set forth in these studies. The trial court in the Government Action has found that the Neenah mill discharged an unknown amount of PCBs.

Based upon the rulings in the Whiting Litigation and the Government Action, neither of which endorsed an equitable allocation in proportion to the mass of PCBs discharged, we continue to believe an allocation in proportion to mass of PCBs discharged would not constitute an equitable allocation of the potential liability for the contamination at the Fox River. We contend other factors, such as a party’s role in causing costs, the location of discharge, and the location of contamination must be considered in order for the allocation to be equitable.

Range of Reasonably Possible Outcomes. Our analysis of the range of reasonably possible outcomes is derived from all available information, including but not limited to decisions of the courts, official documents such as records of decision, discussions with the United States and other parties, as well as legal counsel and engineering consultants. Based on our analysis of the current records of decision and cost estimates for work to be performed at the Site, and substantially dependent on the resolution of the allocation arguments discussed above, we believe it is reasonably possible that our costs associated with the Fox River matter could exceed the aggregate amounts accrued for the Fox River matter by amounts ranging from insignificant to $185 million.

We expect remediation costs to be incurred primarily over the next two to three years, although we are unable to determine with any degree of certainty whether we will be required to share in the funding of the downstream remediation. We believe the likelihood of an outcome in the upper end of the monetary range is significantly less than other possible outcomes within the range and the possibility of an outcome in excess of the upper end of the monetary range is remote.

However, we cannot predict the outcome of any actions related to interim funding. To the extent we are required to provide any such interim funding, we contend that NCR or another party would be required to reimburse us once the final allocation is determined.

Summary. Our current assessment is we will be able to manage this environmental matter without a long-term, material adverse impact on the Company. This matter could, however, at any particular time or for any particular year or years, have a material adverse effect on our consolidated financial position, liquidity and/or results of operations or could result in a default under our debt covenants. Moreover, there can be no assurance our reserves will be adequate to provide for future obligations related to this matter, or our share of costs and/or damages will not exceed our available resources, or those obligations will not have a long-term, material adverse effect on our consolidated financial position, liquidity or results of operations. Should a court grant the United States or the State of Wisconsin relief requiring us individually either to perform directly or to contribute significant amounts towards remedial action downstream of Little Lake Butte des Morts those developments could have a material adverse effect on our consolidated financial position, liquidity and results of operations and might result in a default under our loan covenants.

XML

Asset Retirement Obligation

9 Months Ended

Sep. 30, 2014

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation

13. ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first nine months of 2014 and 2013:

In thousands	2014			2013
Balance at January 1,	$	5,032		$	8,882
Accretion		115			234
Payments		(767	)		(2,719	)
Gain		(128	)		(1,255	)
Balance at September 30,	$	4,252		$	5,142

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:

	September 30		December 31
In thousands	2014		2013
Other current liabilities	$	2,905	$	915
Other long-term liabilities		1,347		4,117
Total	$	4,252	$	5,032

XML

Retirement Plans and Other Post-Retirement Benefits

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Plans and Other Post-Retirement Benefits

9. 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.

	Three months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	2,602		$	2,897
Interest cost		6,216			5,504
Expected return on plan assets		(10,969	)		(10,857	)
Amortization of prior service cost		827			773
Amortization of unrecognized loss		2,977			5,237
Net periodic benefit cost	$	1,653		$	3,554
Other Benefits
Service cost	$	614		$	789
Interest cost		597			545
Amortization of prior service cost		(72	)		(125	)
Amortization of unrecognized loss		129			202
Net periodic benefit cost	$	1,268		$	1,411
	Nine months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	7,810		$	8,693
Interest cost		18,696			16,504
Expected return on plan assets		(32,907	)		(32,570	)
Amortization of prior service cost		2,482			2,321
Amortization of unrecognized loss		8,931			15,711
Net periodic benefit cost	$	5,012		$	10,659
Other Benefits
Service cost	$	1,844		$	2,367
Interest cost		1,793			1,635
Amortization of prior service cost		(216	)		(375	)
Amortization of unrecognized loss		387			606
Net periodic benefit cost	$	3,808		$	4,233

XML

Inventories - Inventories, Net of Reserves (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 59,410	$ 59,440
In-process and finished	118,620	109,578
Supplies	70,025	67,292
Total	$ 248,055	$ 236,310

XML

Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

7. 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 consolidated financial statements or tax returns. The effects of income taxes are measured based on enacted tax laws and rates.

As of September 30, 2014 and December 31, 2013, we had $13.7 million and $14.9 million of gross unrecognized tax benefits. As of September 30, 2014, if such benefits were to be recognized, approximately $13.7 million would be recorded as a component of income tax expense, thereby affecting our effective tax rate.

We, or one of our subsidiaries, file income tax returns with the United States Internal Revenue Service, as well as various state and foreign authorities.

The following table summarizes, by major jurisdiction, tax years that remain subject to examination:

	Open Tax Years
Jurisdiction	Examinations not yet initiated		Examination in progress
United States
Federal		2013		2011 - 2012
State		2009 - 2013		2011 - 2012
Canada (1)		2010 - 2013		2009
Germany (1)		2012 - 2013		2007 - 2011
France		2010, 2013		2011 - 2012
United Kingdom		2010 - 2013		N/A
Philippines		2012 - 2013		2011

(1) – includes provincial or similar local jurisdictions, as applicable

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 $3.5 million. Substantially all of this range relates to tax positions taken in the U.S. and Germany.

We recognize interest and penalties related to uncertain tax positions as income tax expense. The following table summarizes information related to interest and penalties on uncertain tax positions:

	Nine months ended September 30
In millions	2014		2013
Interest expense	$	0.1	$	(0.1	)
Penalties		—		—
	September 30 2014		December 31 2013
Accrued interest payable	$	0.7	$	0.6

XML

Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides 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.

Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights.

Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The RSUs vest on the passage of time, generally on a graded scale over a three, four, and five-year period, or in certain instances the RSUs were issued with five year cliff vesting. PSAs are issued annually to members of management and each respective grant cliff vests each December 31 of the third year following the grant, assuming the achievement of predetermined, three-year cumulative performance targets. 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 both RSUs and PSAs, the grant date fair value of the awards, which is equal to 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. 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	2014			2013
Balance at January 1,		1,001,814			847,679
Granted		173,206			210,856
Forfeited		(45,355	)		(40,991	)
Shares delivered		(239,394	)		(113,230	)
Balance at September 30,		890,271			904,314

The amount granted in 2014 and 2013 includes PSAs of 95,691 and 181,670, respectively, exclusive of reinvested dividends.

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

	September 30
In thousands	2014		2013
Three months ended	$	854	$	892
Nine months ended		1,874		2,216

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. The SOSARs vest ratably over a three year period and have a term of ten years.

The following table sets forth information related to outstanding SOSARS.

	2014					2013
SOSARS	Shares			Wtd Avg Exercise Price		Shares			Wtd Avg Exercise Price
Outstanding at January 1,		1,977,133		$	13.91		2,121,454		$	12.93
Granted		281,881			29.22		361,923			18.36
Exercised		(26,245	)		15.67		(435,562	)		12.63
Canceled / forfeited		(29,842	)		19.36		(73,901	)		16.25
Outstanding at September 30,		2,202,927		$	15.77		1,973,914		$	13.87
SOSAR Grants
Weighted average grant date fair value per share	$	9.81				$	5.64
Aggregate grant date fair value (in thousands)	$	2,764				$	2,042
Black-Scholes assumptions
Dividend yield		1.48	%				2.18	%
Risk free rate of return		1.74	%				0.99	%
Volatility		37.59	%				39.62	%
Expected life		6 yrs					6 yrs

The following table sets forth SOSAR compensation expense for the periods indicated:

	September 30
In thousands	2014		2013
Three months ended	$	577	$	398
Nine months ended		1,585		1,198

XML

Asset Impairment Charge

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Asset Impairment Charge

10. ASSET IMPAIRMENT CHARGE

During the third quarter of 2014, in connection with our annual test of potential impairment of indefinite lived intangible assets, we recorded a $3.3 million non-cash asset impairment charge related to a trade name intangible asset acquired in connection with the 2013 Dresden acquisition. The charge was due to a change in the estimated fair value of the trade name, primarily driven by a substantial increase in discount rates related to Dresden’s business in Russia and Ukraine and this region’s political instability. The charge is recorded in the accompanying condensed consolidated statements of income under the caption “selling, general and administrative expenses.”

XML

Asset Retirement Obligation - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2008
Asset Retirement Obligation Disclosure [Abstract]
Fair value of asset retirement obligations related to the legal requirements	$ 11.5

XML

Asset Retirement Obligation - Schedule of Consolidated Balance Sheets where Asset Retirement Obligations Recorded (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Asset retirement obligations	$ 4,252	$ 5,032	$ 5,142	$ 8,882
Other Current Liabilities [Member]
Asset retirement obligations	2,905	915
Other Long-Term Liabilities [Member]
Asset retirement obligations	$ 1,347	$ 4,117

XML

Long-Term Debt - Additional Information (Detail)	0 Months Ended		9 Months Ended			9 Months Ended			9 Months Ended				9 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014 IKB Loan [Member] Installment DebtAgreements	Apr. 11, 2013 IKB Loan [Member] USD ($)	Apr. 11, 2013 IKB Loan [Member] EUR (€)	Sep. 30, 2014 2014 IKB Loan [Member] Installment	Sep. 04, 2014 2014 IKB Loan [Member] USD ($)	Sep. 04, 2014 2014 IKB Loan [Member] EUR (€)	Sep. 30, 2014 Maximum [Member]	Sep. 30, 2014 Federal Funds Rate [Member]	Sep. 30, 2014 5.375% Notes [Member]	Oct. 03, 2012 5.375% Notes [Member] USD ($)	Sep. 30, 2014 Revolving Credit Facility [Member]	Nov. 21, 2011 Revolving Credit Facility [Member] USD ($)	Sep. 30, 2014 Revolving Credit Facility, Due Nov. 2016 [Member]	Sep. 30, 2014 Revolving Credit Facility, Due Nov. 2016 [Member] Minimum [Member]	Sep. 30, 2014 Revolving Credit Facility, Due Nov. 2016 [Member] Maximum [Member]	Sep. 30, 2014 Revolving Credit Facility, Due Nov. 2016 [Member] Daily Euro Rate [Member] Minimum [Member]	Sep. 30, 2014 Revolving Credit Facility, Due Nov. 2016 [Member] Daily Euro Rate [Member] Maximum [Member]	Sep. 30, 2014 Letters of Credit [Member] USD ($)	Dec. 31, 2013 Letters of Credit [Member] USD ($)
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity														$ 350,000,000
Debt instrument maturity date											Oct. 15, 2020		Nov. 21, 2016		Nov. 30, 2016
Federal fund rate spread										0.50%						0.25%	1.25%	1.25%	2.25%
Margin over Euro-rate		1.00%
Leverage ratio	2.3								3.5
Aggregate principal amount				57,600,000	42,700,000		12,600,000	10,000,000				250,000,000
Percentage of aggregate principal amount of outstanding			2.05%			2.40%					5.375%	5.375%
Frequency of interest payable											Semiannually
Debt instrument redemption											The 5.375% Notes are redeemable, in whole or in part, at anytime on or after October 15, 2016 at the redemption prices specified in the applicable Indenture. Prior to October 15, 2016, we may redeem some or all of the Notes at a "make-whole" premium as specified in the Indenture.
Number of separate loan agreement			2
Number of installments			32			27
Installments beginning date			Jun. 30, 2015			Sep. 30, 2015
Installments ending date			Mar. 31, 2023			Jun. 30, 2022
Letters of credit issued																				5,200,000	5,200,000
Letters of credit outstanding																				$ 0

XML

Retirement Plans and Other Post-Retirement Benefits (Tables)

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans

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

	Three months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	2,602		$	2,897
Interest cost		6,216			5,504
Expected return on plan assets		(10,969	)		(10,857	)
Amortization of prior service cost		827			773
Amortization of unrecognized loss		2,977			5,237
Net periodic benefit cost	$	1,653		$	3,554
Other Benefits
Service cost	$	614		$	789
Interest cost		597			545
Amortization of prior service cost		(72	)		(125	)
Amortization of unrecognized loss		129			202
Net periodic benefit cost	$	1,268		$	1,411
	Nine months ended September 30
In thousands	2014			2013
Pension Benefits
Service cost	$	7,810		$	8,693
Interest cost		18,696			16,504
Expected return on plan assets		(32,907	)		(32,570	)
Amortization of prior service cost		2,482			2,321
Amortization of unrecognized loss		8,931			15,711
Net periodic benefit cost	$	5,012		$	10,659
Other Benefits
Service cost	$	1,844		$	2,367
Interest cost		1,793			1,635
Amortization of prior service cost		(216	)		(375	)
Amortization of unrecognized loss		387			606
Net periodic benefit cost	$	3,808		$	4,233

XML

Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits	$ 13.7	$ 14.9
Unrecognized tax benefits that would impact effective tax rate	13.7
Lower range of gross unrecognized tax benefits balance may decrease within the next twelve months	0
Higher range of gross unrecognized tax benefits balance may decrease within the next twelve months	$ 3.5

XML

Financial Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives and Hedging Activities

15. 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”; 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.”

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 expected to be incurred over a maximum of twelve months. Currency forward contracts involve fixing the exchange for delivery of a specified amount of foreign currency on a specified date.

We designate certain currency forward contracts as cash flow hedges of forecasted raw material purchases or certain production costs with exposure to changes in foreign currency exchange rates. The effective portion of 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 and is subsequently reclassified into costs of products sold in the period that inventory produced using the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly to earnings and reflected in the accompanying condensed consolidated statements of income as non-operating income (expense) under the caption “Other-net.”

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	September 30 2014		December 31 2013
Derivative	Buy Notional
Sell / Buy
Euro / U.S. dollar		22,631		27,105
U.S. dollar / Canadian dollar		8,124		13,077
Euro / Philippine peso		439,675		—
British Pound / Philippine peso		243,310		—
Euro / British Pound		3,358		—

These contracts have maturities of twelve months or less.

Derivatives Not Designated as Hedging Instruments - Foreign Currency Hedges We also enter 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	September 30 2014			December 31 2013
Derivative	Sell (Buy) Notional
Sell / Buy
U.S. dollar / British Pound		11,000			6,000
Euro / British Pound		(9,000	)		(8,000	)
Euro / British Pound		2,000			5,000
Canadian dollar / U.S. dollar		2,000			2,000
U.S. dollar / Euro		—			2,000
Euro / U.S. dollar		—			9,000

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	September 30 2014		December 31 2013		September 30 2014		December 31 2013
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
Designated as hedging:
Forward foreign currency exchange contracts	$	2,106	$	—	$	166	$	1,163
Not designated as hedging:
Forward foreign currency exchange contracts	$	10	$	36	$	73	$	46

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 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 September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
Designated as hedging:
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(137	)	$	(384	)	$	(1,227	)	$	(641	)
Ineffective portion – other – net		81			49			181			74
Not designated as hedging:
Forward foreign currency exchange contracts:
Other – net	$	595		$	(348	)	$	1,792		$	(794	)

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

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.”

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:

In thousands	2014			2013
Balance at January 1,	$	(1,296	)	$	(599	)
Deferred (losses) gains on cash flow hedges		2,223			(778	)
Reclassified to earnings		1,227			641
Balance at September 30,	$	2,154		$	(736	)

We expect substantially all of the amounts recorded as a component of accumulated other comprehensive income will be realized in results of operations within the next twelve 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.

XML

Subsequent Event

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Event

20. SUBSEQUENT EVENT

On October 1, 2014, we completed the acquisition of all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for $10.7 million in cash. SPO has annual sales of approximately $33 million. SPO, located near Frankfurt, Germany, produces primarily electrical products and applications include highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags. SPO will become part of the Composite Fibers business unit, and complements other technical specialties such as the electrical products sector.

XML

Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Losses) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (69,366)	$ (164,550)	$ (75,357)	$ (163,966)
Other comprehensive income before reclassifications (net of tax)	(32,071)	13,829	(31,661)	5,458
Amounts reclassified from accumulated other comprehensive income (net of tax)	2,494	4,074	8,075	11,861
Other comprehensive income (loss)	(29,577)	17,903	(23,586)	17,319
Ending Balance	(98,943)	(146,647)	(98,943)	(146,647)
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	15,336	(7,914)	15,141	316
Other comprehensive income before reclassifications (net of tax)	(33,450)	14,263	(33,255)	6,033
Other comprehensive income (loss)	(33,450)	14,263	(33,255)	6,033
Ending Balance	(18,114)	6,349	(18,114)	6,349
Unrealized Gain (Loss) on Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	60	(379)	(941)	(425)
Other comprehensive income before reclassifications (net of tax)	1,379	(434)	1,594	(575)
Amounts reclassified from accumulated other comprehensive income (net of tax)	96	280	882	467
Other comprehensive income (loss)	1,475	(154)	2,476	(108)
Ending Balance	1,535	(533)	1,535	(533)
Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(84,822)	(152,056)	(89,547)	(159,560)
Amounts reclassified from accumulated other comprehensive income (net of tax)	2,363	3,746	7,088	11,250
Other comprehensive income (loss)	2,363	3,746	7,088	11,250
Ending Balance	(82,459)	(148,310)	(82,459)	(148,310)
Other Postretirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	60	(4,201)	(10)	(4,297)
Amounts reclassified from accumulated other comprehensive income (net of tax)	35	48	105	144
Other comprehensive income (loss)	35	48	105	144
Ending Balance	$ 95	$ (4,153)	$ 95	$ (4,153)

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Financial and Other Information by Business Unit

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

Three months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	154.5	$	161.5	$	74.4	$	69.5	$	236.2	$	225.7	$	—		$	—		$	465.1		$	456.6
Energy and related sales, net		—		—		—		—		0.9		1.2		—			—			0.9			1.2
Total revenue		154.5		161.5		74.4		69.5		237.1		226.9		—			—			466.0			457.8
Cost of products sold		123.7		129.5		64.7		63.7		195.2		196.4		1.8			2.3			385.4			391.8
Gross profit (loss)		30.8		31.9		9.7		5.8		41.9		30.5		(1.8	)		(2.3	)		80.5			66.0
SG&A		12.6		13.0		2.2		1.9		14.1		12.5		9.0			7.1			37.9			34.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(1.6	)		(0.3	)		(1.6	)		(0.3	)
Total operating income (loss)		18.1		18.9		7.5		3.9		27.8		18.1		(9.2	)		(9.1	)		44.2			31.8
Non-operating expense		—		—		—		—		—		—		(4.8	)		(4.7	)		(4.8	)		(4.7	)
Income (loss) before income taxes	$	18.1	$	18.9	$	7.5	$	3.9	$	27.8	$	18.1	$	(14.0	)	$	(13.8	)	$	39.4		$	27.1
Supplementary Data
Net tons sold (thousands)		40.1		40.3		26.3		24.8		208.4		203.6		—			—			274.7			268.7
Depreciation, depletion and amortization	$	7.4	$	7.1	$	2.3	$	2.2	$	6.5	$	8.3	$	0.5		$	0.4		$	16.7		$	18.0
Capital expenditures		5.4		12.8		1.3		0.8		9.7		11.1		0.5			0.7			16.9			25.3
Nine months ended September 30 Dollars in millions	Composite Fibers				Advanced Airlaid Materials				Specialty Papers				Other and Unallocated						Total
	2014		2013		2014		2013		2014		2013		2014			2013			2014			2013
Net sales	$	470.1	$	415.9	$	216.2	$	202.2	$	679.9	$	669.8	$	—		$	—		$	1,366.2		$	1,287.8
Energy and related sales, net		—		—		—		—		6.9		2.7		—			—			6.9			2.7
Total revenue		470.1		415.9		216.2		202.2		686.8		672.5		—			—			1,373.1			1,290.5
Cost of products sold		376.7		334.5		189.9		182.0		624.3		599.7		5.2			10.0			1,196.1			1,126.3
Gross profit (loss)		93.4		81.3		26.3		20.1		62.5		72.8		(5.2	)		(10.0	)		177.0			164.3
SG&A		38.8		34.4		6.8		6.4		39.5		40.3		18.7			21.3			103.8			102.5
Gains on dispositions of plant, equipment and timberlands, net		—		—		—		—		—		—		(3.9	)		(0.4	)		(3.9	)		(0.4	)
Total operating income (loss)		54.6		46.9		19.5		13.7		23.0		32.5		(20.0	)		(31.0	)		77.1			62.1
Non-operating expense		—		—		—		—		—		—		(14.0	)		(12.5	)		(14.0	)		(12.5	)
Income (loss) before income taxes	$	54.6	$	46.9	$	19.5	$	13.7	$	23.0	$	32.5	$	(34.0	)	$	(43.5	)	$	63.1		$	49.6
Supplementary Data
Net tons sold (thousands)		119.5		97.9		76.0		72.4		601.3		601.6		—			—			796.8			771.9
Depreciation, depletion and amortization	$	22.7	$	17.7	$	6.9	$	6.6	$	22.6	$	24.9	$	1.3		$	0.8		$	53.5		$	50.0
Capital expenditures		16.7		49.0		4.1		4.8		24.5		27.9		1.7			4.4			47.0			86.1

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 53,655	$ 122,882
Accounts receivable, net	195,316	167,830
Inventories	248,055	236,310
Prepaid expenses and other current assets	56,657	59,560
Total current assets	553,683	586,582
Plant, equipment and timberlands, net	691,640	723,340
Goodwill	87,772	95,948
Intangible assets	80,533	96,081
Other assets	183,116	176,459
Total assets	1,596,744	1,678,410
Liabilities and Shareholders' Equity
Current portion of long-term debt	3,810
Accounts payable	128,568	161,242
Dividends payable	4,761	4,363
Environmental liabilities	125	125
Other current liabilities	114,676	122,637
Total current liabilities	251,940	288,367
Long-term debt	406,360	442,325
Deferred income taxes	130,677	141,020
Other long-term liabilities	119,587	122,222
Total liabilities	908,564	993,934
Commitments and contingencies
Shareholders' equity
Common stock	544	544
Capital in excess of par value	54,085	53,940
Retained earnings	904,733	869,329
Accumulated other comprehensive loss	(98,943)	(75,357)
Shareholders' equity before treasury stock	860,419	848,456
Less cost of common stock in treasury	(172,239)	(163,980)
Total shareholders' equity	688,180	684,476
Total liabilities and shareholders' equity	$ 1,596,744	$ 1,678,410

XML

Gains on Dispositions of Plant, Equipment and Timberlands, Net

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Gains on Dispositions of Plant, Equipment and Timberlands, Net

4. GAINS ON DISPOSITIONS OF PLANT, EQUIPMENT AND TIMBERLANDS, NET

During the first nine months of 2014 and 2013, we completed sales of assets as summarized in the following table:

Dollars in thousands	Acres		Proceeds		Gain
2014
Timberlands		2,030	$	4,041	$	3,876
Other		n/a		10		5
Total			$	4,051	$	3,881
2013
Timberlands		172	$	287	$	282
Other		n/a		92		92
Total			$	379	$	374

XML

Retirement Plans and Other Post-Retirement Benefits - Schedule of Net Periodic Costs of Pension and Post Retirement Medical Benefit Plans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Amortization of Deferred Benefit Pension Plan Items [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,602	$ 2,897	$ 7,810	$ 8,693
Interest cost	6,216	5,504	18,696	16,504
Expected return on plan assets	(10,969)	(10,857)	(32,907)	(32,570)
Amortization of prior service cost	827	773	2,482	2,321
Amortization of unrecognized loss	2,977	5,237	8,931	15,711
Net periodic benefit cost	1,653	3,554	5,012	10,659
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	614	789	1,844	2,367
Interest cost	597	545	1,793	1,635
Amortization of prior service cost	(72)	(125)	(216)	(375)
Amortization of unrecognized loss	129	202	387	606
Net periodic benefit cost	$ 1,268	$ 1,411	$ 3,808	$ 4,233

XML

Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	$ 21,380	$ 95,693
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(47,036)	(86,089)
Proceeds from disposal plant, equipment and timberlands, net	4,051	379
Acquisitions, net of cash acquired		(210,911)
Other	(600)	(325)
Net cash used by investing activities	(43,585)	(296,946)
Financing activities
Net (repayments of) proceeds from indebtedness	(18,128)	182,230
Payments of note offering costs		(419)
Payment of dividends to shareholders	(13,935)	(12,603)
Repurchases of common stock	(12,180)
Payments related to share-based compensation awards and other	(1,764)	(2,332)
Net cash (used) provided by financing activities	(46,007)	166,876
Effect of exchange rate on cash	(1,015)	333
Net decrease in cash and cash equivalents	(69,227)	(34,044)
Cash and cash equivalents at the beginning of period	122,882	97,679
Cash and cash equivalents at the end of period	53,655	63,635
Adjustments/ Eliminations [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities		209
Investing activities
Expenditures for purchases of plant, equipment and timberlands		(209)
Repayments from intercompany loans	(10,409)	(15,100)
Advances of intercompany loans	15,540	30,066
Intercompany capital contributed		91
Net cash used by investing activities	5,131	14,848
Financing activities
Repayments of intercompany loans	10,409	15,100
Borrowings of intercompany loans	(15,540)	(30,066)
Intercompany capital received		(91)
Net cash (used) provided by financing activities	(5,131)	(15,057)
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	712	30,380
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(26,368)	(32,075)
Proceeds from disposal plant, equipment and timberlands, net	2,687	379
Other	(600)	(325)
Net cash used by investing activities	(24,281)	(32,021)
Financing activities
Payments of note offering costs		(160)
Payment of dividends to shareholders	(13,935)	(12,603)
Repurchases of common stock	(12,180)
Repayments of intercompany loans		(1,100)
Borrowings of intercompany loans	15,540	8,570
Payments related to share-based compensation awards and other	(1,764)	(2,332)
Net cash (used) provided by financing activities	(12,339)	(7,625)
Net decrease in cash and cash equivalents	(35,908)	(9,266)
Cash and cash equivalents at the beginning of period	56,216	43,781
Cash and cash equivalents at the end of period	20,308	34,515
Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	3,368	10,857
Investing activities
Proceeds from disposal plant, equipment and timberlands, net	1,355
Repayments from intercompany loans	10,409	15,100
Advances of intercompany loans	(15,540)	(30,066)
Intercompany capital contributed		(91)
Net cash used by investing activities	(3,776)	(15,057)
Financing activities
Net decrease in cash and cash equivalents	(408)	(4,200)
Cash and cash equivalents at the beginning of period	501	4,278
Cash and cash equivalents at the end of period	93	78
Non Guarantors [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided (used) by Operating activities	17,300	54,247
Investing activities
Expenditures for purchases of plant, equipment and timberlands	(20,668)	(53,805)
Proceeds from disposal plant, equipment and timberlands, net	9
Acquisitions, net of cash acquired		(210,911)
Net cash used by investing activities	(20,659)	(264,716)
Financing activities
Net (repayments of) proceeds from indebtedness	(18,128)	182,230
Payments of note offering costs		(259)
Repayments of intercompany loans	(10,409)	(14,000)
Borrowings of intercompany loans		21,496
Intercompany capital received		91
Net cash (used) provided by financing activities	(28,537)	189,558
Effect of exchange rate on cash	(1,015)	333
Net decrease in cash and cash equivalents	(32,911)	(20,578)
Cash and cash equivalents at the beginning of period	66,165	49,620
Cash and cash equivalents at the end of period	$ 33,254	$ 29,042

XML

Financial Derivatives and Hedging Activities - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014
Designated as Hedging [Member]
Derivative [Line Items]
Production costs expected to be incurred maximum period	12 months
Maximum maturity period of foreign currency derivative contracts designated as hedging instruments	12 months
Not Designated as Hedging [Member]
Derivative [Line Items]
Maturities of foreign currency derivative contracts not designated as hedging instruments	1 month
Fair Value, Measurements [Member]
Derivative [Line Items]
Accumulated other comprehensive income realization period	12 months

XML

Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

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 that you have read the audited consolidated financial statements included in our 2013 Annual Report on Form 10-K.

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 that actual results may differ from those estimates and assumptions.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards. The new standard is required to be adopted for fiscal years beginning after December 15, 2016 and early adoption is not permitted. We are in the process of evaluating the impact this standard may have, if any, on our reported results of operations or financial position.

XML

Share Repurchases - Summary of Share Repurchases under Stock Repurchase Plan (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended	29 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Equity [Abstract]
Authorized, shares
Authorized, amount	$ 50,000	$ 50,000
Repurchases, shares	464,190	755,310
Repurchases, amount	(12,200)	(16,627)
Remaining authorization, amount	$ 33,373	$ 33,373

XML

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Carrying Value and Fair Value of Long-Term Debt

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

	September 30, 2014				December 31, 2013
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Fixed-rate bonds	$	250,000	$	257,033	$	250,000	$	254,533
2.40% Term loan	$	12,592	$	12,910		—		—
2.05% Term loan		53,768		54,025		58,785		57,952
Variable rate debt		93,810		93,810		133,540		133,540
Total	$	410,170	$	417,778	$	442,325	$	446,025

XML

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

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

	September 30, 2014				December 31, 2013
In thousands	Carrying Value		Fair Value		Carrying Value		Fair Value
Fixed-rate bonds	$	250,000	$	257,033	$	250,000	$	254,533
2.40% Term loan	$	12,592	$	12,910		—		—
2.05% Term loan		53,768		54,025		58,785		57,952
Variable rate debt		93,810		93,810		133,540		133,540
Total	$	410,170	$	417,778	$	442,325	$	446,025

As of September 30, 2014, and December 31, 2013, we had $250.0 million of 5.375% fixed rate bonds. These bonds are publicly registered, but thinly traded. Accordingly, the values set forth above for the bonds, as well as our other debt instruments, are based on observable inputs and other relevant market data (Level 2). The fair value of financial derivatives is set forth below in Note 15.