Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | MERCER INTERNATIONAL INC. | ||
Entity Central Index Key | 0001333274 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Trading Symbol | MERC | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 66,167,191 | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity File Number | 000-51826 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 47-0956945 | ||
Entity Address, Address Line One | Suite 1120 | ||
Entity Address, Address Line Two | 700 West Pender Street | ||
Entity Address, City or Town | Vancouver | ||
Entity Address, State or Province | BC | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | V6C 1G8 | ||
City Area Code | 604 | ||
Local Phone Number | 684-1099 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 838.7 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 271 | ||
Auditor Location | Vancouver, Canada | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with its annual meeting of shareholders to be held in 2023 are incorporated by reference into Part III hereof. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 2,280,937 | $ 1,803,255 | $ 1,423,140 |
Costs and expenses | |||
Cost of sales, excluding depreciation and amortization | 1,638,672 | 1,245,622 | 1,163,727 |
Cost of sales depreciation and amortization | 144,064 | 132,117 | 128,817 |
Selling, general and administrative expenses | 105,833 | 78,933 | 66,867 |
Operating income | 392,368 | 346,583 | 63,729 |
Other income (expenses) | |||
Interest expense | (71,499) | (70,047) | (80,746) |
Loss on early extinguishment of debt | 0 | (30,368) | 0 |
Other income | 24,434 | 14,399 | 5,878 |
Total other expenses, net | (47,065) | (86,016) | (74,868) |
Income (loss) before income taxes | 345,303 | 260,567 | (11,139) |
Income tax provision | (98,264) | (89,579) | (6,096) |
Net income (loss) | $ 247,039 | $ 170,988 | $ (17,235) |
Net income (loss) per common share | |||
Basic | $ 3.74 | $ 2.59 | $ (0.26) |
Diluted | 3.71 | 2.58 | (0.26) |
Dividends declared per common share | $ 0.3000 | $ 0.2600 | $ 0.3325 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 247,039 | $ 170,988 | $ (17,235) |
Other comprehensive income (loss) | |||
Gain (loss) related to defined benefit pension plans | 10,755 | 19,206 | (8,530) |
Income tax recovery (provision) | (2,356) | (4,485) | 2,384 |
Gain (loss) related to defined benefit pension plans, net of tax | 8,399 | 14,721 | (6,146) |
Foreign currency translation adjustments | (97,568) | (77,939) | 95,131 |
Other comprehensive income (loss), net of taxes | (89,169) | (63,218) | 88,985 |
Total comprehensive income | $ 157,870 | $ 107,770 | $ 71,750 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 354,032 | $ 345,610 |
Accounts receivable, net | 351,993 | 345,345 |
Inventories | 450,470 | 356,731 |
Prepaid expenses and other | 21,680 | 16,619 |
Total current assets | 1,178,175 | 1,064,305 |
Property, plant and equipment, net | 1,341,322 | 1,135,631 |
Investment in joint ventures | 45,635 | 49,651 |
Amortizable intangible assets, net | 61,497 | 47,902 |
Goodwill | 30,937 | 0 |
Operating lease right-of-use assets | 15,049 | 9,712 |
Pension asset | 4,397 | 4,136 |
Other long-term assets | 48,025 | 38,718 |
Deferred income tax | 0 | 1,177 |
Total assets | 2,725,037 | 2,351,232 |
Current liabilities | ||
Accounts payable and other | 377,306 | 282,307 |
Pension and other post-retirement benefit obligations | 755 | 817 |
Total current liabilities | 378,061 | 283,124 |
Long-term debt | 1,346,508 | 1,237,545 |
Pension and other post-retirement benefit obligations | 12,178 | 21,252 |
Operating lease liabilities | 9,475 | 6,574 |
Other long-term liabilities | 14,072 | 13,590 |
Deferred income tax | 125,959 | 95,123 |
Total liabilities | 1,886,253 | 1,657,208 |
Shareholders’ equity | ||
Common shares $1 par value; 200,000,000 authorized; 66,167,000 issued and outstanding (2021 - 66,037,000) | 66,132 | 65,988 |
Additional paid-in capital | 354,495 | 347,902 |
Retained earnings | 598,119 | 370,927 |
Accumulated other comprehensive loss | (179,962) | (90,793) |
Total shareholders’ equity | 838,784 | 694,024 |
Total liabilities and shareholders’ equity | 2,725,037 | 2,351,232 |
Commitments and contingencies (Note 21) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 66,167,000 | 66,037,000 |
Common Stock, Shares, Outstanding | 66,167,000 | 66,037,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2019 | $ 550,403 | $ 65,598 | $ 344,994 | $ 256,371 | $ (116,560) |
Balance (in shares) at Dec. 31, 2019 | 65,629,000 | ||||
Shares issued on grants of restricted shares | $ 31 | (31) | |||
Shares issued on grants of restricted shares (in shares) | 68,000 | ||||
Shares issued on grants of performance share units | $ 195 | (195) | |||
Shares issued on grants of performance share units (in shares) | 195,000 | ||||
Stock compensation expense | 928 | 928 | |||
Net income (loss) | (17,235) | (17,235) | |||
Dividends declared | (21,892) | (21,892) | |||
Repurchase of common shares | (162) | $ (24) | (138) | ||
Repurchase of common shares, shares | (24,000) | ||||
Other comprehensive income (loss) | 88,985 | 88,985 | |||
Balance at Dec. 31, 2020 | 601,027 | $ 65,800 | 345,696 | 217,106 | (27,575) |
Balance (in shares) at Dec. 31, 2020 | 65,868,000 | ||||
Shares issued on grants of restricted shares | $ 68 | (68) | |||
Shares issued on grants of restricted shares (in shares) | 49,000 | ||||
Shares issued on grants of performance share units | $ 120 | (120) | |||
Shares issued on grants of performance share units (in shares) | 120,000 | ||||
Stock compensation expense | 2,394 | 2,394 | |||
Net income (loss) | 170,988 | 170,988 | |||
Dividends declared | (17,167) | (17,167) | |||
Other comprehensive income (loss) | (63,218) | (63,218) | |||
Balance at Dec. 31, 2021 | $ 694,024 | $ 65,988 | 347,902 | 370,927 | (90,793) |
Balance (in shares) at Dec. 31, 2021 | 66,037,000 | 66,037,000 | |||
Shares issued on grants of restricted shares | $ 49 | (49) | |||
Shares issued on grants of restricted shares (in shares) | 35,000 | ||||
Shares issued on grants of performance share units | $ 95 | (95) | |||
Shares issued on grants of performance share units (in shares) | 95,000 | ||||
Stock compensation expense | $ 6,737 | 6,737 | |||
Net income (loss) | 247,039 | 247,039 | |||
Dividends declared | (19,847) | (19,847) | |||
Other comprehensive income (loss) | (89,169) | (89,169) | |||
Balance at Dec. 31, 2022 | $ 838,784 | $ 66,132 | $ 354,495 | $ 598,119 | $ (179,962) |
Balance (in shares) at Dec. 31, 2022 | 66,167,000 | 66,167,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from (used in) operating activities | |||
Net income (loss) | $ 247,039 | $ 170,988 | $ (17,235) |
Adjustments to reconcile net income (loss) to cash flows from operating activities | |||
Depreciation and amortization | 144,153 | 132,199 | 128,921 |
Deferred income tax provision (recovery) | 7,003 | 18,791 | (15,249) |
Inventory impairment | 0 | 0 | 25,998 |
Loss on early extinguishment of debt | 0 | 30,368 | 0 |
Defined benefit pension plans and other post-retirement benefit plan expense | 1,708 | 2,831 | 3,053 |
Stock compensation expense | 6,737 | 2,394 | 928 |
Gain on sale of investments | (519) | 0 | (17,540) |
Foreign exchange transaction losses (gains) | (16,802) | (16,597) | 13,272 |
Other | (722) | 384 | 543 |
Defined benefit pension plans and other post-retirement benefit plan contributions | (2,942) | (4,258) | (4,164) |
Changes in working capital | |||
Accounts receivable | (20,476) | (121,579) | (6,269) |
Inventories | (63,184) | (96,442) | (11,430) |
Accounts payable and accrued expenses | 66,796 | 75,589 | (53,744) |
Other | (8,131) | (12,454) | (5,519) |
Net cash from (used in) operating activities | 360,660 | 182,214 | 41,565 |
Cash flows from (used in) investing activities | |||
Purchase of property, plant and equipment | (178,742) | (159,440) | (78,518) |
Acquisitions, net of cash acquired (Note 2) | (256,604) | (51,258) | 0 |
Property insurance proceeds | 8,616 | 21,540 | 0 |
Purchase of amortizable intangible assets | (495) | (1,385) | (647) |
Purchase of investments | (75,000) | 0 | (9,370) |
Proceeds from sale of investments | 75,519 | 0 | 26,910 |
Other | 1,029 | 3,416 | 1,798 |
Net cash from (used in) investing activities | (425,677) | (187,127) | (59,827) |
Cash flows from (used in) financing activities | |||
Redemption of senior notes | 0 | (824,557) | 0 |
Proceeds from issuance of senior notes | 0 | 875,000 | 0 |
Proceeds from (repayment of) revolving credit facilities, net | 115,330 | (33,396) | 52,651 |
Dividend payments | (19,847) | (17,167) | (21,892) |
Payment of debt issuance costs | (3,871) | (14,483) | 0 |
Proceeds from government grants | 1,067 | 9,333 | 362 |
Payment of finance lease obligations | (10,003) | (7,850) | (4,636) |
Other | (711) | 3,616 | (168) |
Net cash from (used in) financing activities | 81,965 | (9,504) | 26,317 |
Effect of exchange rate changes on cash and cash equivalents | (8,526) | (1,071) | 1,958 |
Net increase (decrease) in cash and cash equivalents | 8,422 | (15,488) | 10,013 |
Cash and cash equivalents, beginning of year | 345,610 | 361,098 | 351,085 |
Cash and cash equivalents, end of year | 354,032 | 345,610 | 361,098 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 67,103 | 73,088 | 78,151 |
Cash paid for income taxes | 86,037 | 22,950 | 19,331 |
Supplemental schedule of non-cash investing and financing activities: | |||
Leased production and other equipment | $ 0 | $ 29,344 | $ 13,121 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies Background Mercer International Inc. (“Mercer Inc.”) is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. Mercer Inc. owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50 % joint venture interest in a pulp mill in Canada, one sawmill in Germany and since acquiring the parent company of Holzindustrie Torgau KG ("Torgau") on September 30, 2022 it now owns one timber processing and value-add pallet production facility in Germany. The Company also owns a cross-laminated timber (“CLT”) facility located in Spokane, Washington called Mercer Mass Timber LLC ("Mercer Mass Timber"). In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars (“$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its subsidiaries (collectively, the “Company”). The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany balances and transactions have been eliminated upon consolidation. Mercer Inc. owns 100 % of its subsidiaries with the exception of the 50 % joint venture interest in the Cariboo Pulp & Paper Company (“CPP”) with West Fraser Mills Ltd., which is accounted for using the equity method. Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Investments Investments in equity securities in which the Company does not exercise significant influence are measured at fair value through earnings. These securities are measured at fair value on a recurring basis, based upon Level 1 quoted market prices, with the unrealized and realized gains or losses included in “Other income” in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. The Company reviews the collectability of accounts receivable at each reporting date and maintains an allowance for doubtful accounts at an amount estimated to cover the expected losses on uninsured accounts receivable. Any amounts that are determined to be uncollectible and uninsured are offset against the allowance. The allowance is based on the Company’s evaluation of numerous factors, including the payment history, financial position of the debtors and current market conditions. The Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, obtaining letters of credit and setting credit limits prior to the sale. The Company reviews new customers' credit history before granting credit and conducts regular reviews of existing customers' credit. Inventories Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value and are released from inventory on the same basis. Spare parts and other materials are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include pulp logs, sawlogs and wood chips. These inventories are located both at the mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of pulp logs, sawlogs and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. The amortization periods have been provided in the Property, Plant and Equipment, Net Note. The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant and equipment are capitalized. The Company capitalizes interest on borrowings during the construction period of major capital projects as part of the related asset. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is recognized as an expense in the Consolidated Statements of Operations as incurred. The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit adjusted risk-free interest rate. Note 1. The Company and Summary of Significant Accounting Policies (continued) Impairment of Long-Lived Assets Long-lived assets include "Property, plant and equipment, net" and "Amortizable intangible assets, net". The unit of accounting for impairment testing for long-lived assets is its “Asset Group”, which includes the long-lived assets and liabilities directly related to those assets. The Company evaluates an Asset Group for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as continuing operating losses. When an indicator that the carrying value of an Asset Group may not be recoverable is triggered, the Company compares the carrying value of the Asset Group to its forecasted undiscounted future cash flows. If the carrying value of the Asset Group is greater than the undiscounted future cash flows an impairment charge is recorded based on the excess of the Asset Group’s carrying value over its fair value. Leases The Company determines if a contract contains a lease at inception. Leases are classified as either operating or finance leases. Leases with a term of less than 12 months are not recorded in the Consolidated Balance Sheets, and are expensed over the term of the lease in the Consolidated Statements of Operations. Operating and finance lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the term of the lease. Renewal and termination options are included in the lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, the Company uses the implicit rate when readily determinable, or the Company’s estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in the Consolidated Statements of Operations on a straight-line basis over the term of the lease. Government Grants The Company records grants from federal, provincial and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the cost of the assets in the Consolidated Balance Sheets and amortized over the same period as the related asset in “Cost of sales depreciation and amortization” in the Consolidated Statements of Operations. Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company’s normal business operations, and are reported as a reduction of related expenses in the Consolidated Statements of Operations. The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. Both the fees and the fee reduction are recognized in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. Amortizable Intangible Assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. The amortization periods have been provided in the Amortizable Intangible Assets, Net Note. Note 1. The Company and Summary of Significant Accounting Policies (continued) Goodwill Goodwill is from the acquisition of the Torgau facility. Goodwill is not amortized and is tested for impairment every year at August 31, or more frequently if events or changes in circumstances indicate a potential impairment loss. The impairment test of goodwill is performed at the reporting unit level. Goodwill is assigned to the solid wood segment for the purpose of impairment testing as this is the reporting unit that benefits from the synergies arising from the Torgau acquisition. The Company has the option to perform a qualitative assessment of goodwill in order to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company concludes that this is the case, it must perform the quantitative impairment test. Otherwise, the Company does not need to perform any further assessment. The quantitative impairment test compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the impairment charge recognized cannot exceed the carrying amount of goodwill. The Company typically uses a discounted cash flow model to determine the fair value of a reporting unit. The assumptions used in the model require estimating future sales volumes, selling prices and costs, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal forecasts. Unanticipated market and macroeconomic events and circumstances may occur and could affect the accuracy of management assumptions. Sensitivities of these assumptions are also performed. The Company completed a preliminary purchase price allocation as of September 30, 2022 that valued the goodwill on that date. As of December 31, 2022, management assessed the value of the goodwill for any events that occurred or changes in circumstances that would indicate impairment and concluded that there were none and therefore no impairment test was performed. Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost, which includes both the direct and indirect costs of growing and harvesting the sandalwood trees, and net realizable value. The cost of the sandalwood plantations is recognized in “Other long-term assets” and the cost of the harvested sandalwood is recognized in “Inventories” in the Consolidated Balance Sheets. The sandalwood tree plantations are carried at historical cost and are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may be higher than the net realizable value, such as a sustained drop in sales price. Pension Plans The Company maintains defined benefit pension plans for its Peace River employees and its salaried employees at the Celgar mill which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected unit credit benefit method prorated on years of service. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of: (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10 % of the greater of the accrued benefit obligation and the fair value of plan assets as of the beginning of the year. The Company recognizes the net funded status of the plan. The Company also has a multiemployer pension plan and defined contribution plans for which contributions are expensed in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) Foreign Operations and Currency Translation The Company determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions related to operating activities are included in “Cost of sales, excluding depreciation and amortization” while those related to non-operating activities are included in “Other income” in the Consolidated Statements of Operations. Where intercompany loans are of a long-term investment nature, exchange rate changes are included as a foreign currency translation adjustment within “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally this occurs with the transfer of control of the products sold. Transfer of control to the customer is based on the standardized shipping terms in the contract as this determines when the Company has the right to payment, the customer has legal title to the asset and the customer has the risks of ownership. Payment is due, and a receivable is recognized after control has transferred to the customer and revenue is recognized. Payment terms are defined in the contract as typically due within three months after control has transferred to the customer, and as such, the contracts do not have a significant financing component. The Company excludes value-added taxes, sales and other taxes it collects from its customers on behalf of third parties concurrent with revenue-producing activities from revenues. The Company may arrange shipping and handling activities as part of the sale of its products. The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than as an additional promised service. The following is a description of the principal activities from which the Company generates its revenues. For a breakdown of revenues by product and geographic location see the Segment Information Note. Pulp and Lumber Revenues For European sales sent by truck or train from the mills directly to the customer, the contracted sales terms are such that control transfers once the truck or train leaves the mill. For orders sent by ocean freighter, the contract terms state that control transfers at the time the product passes the ship’s rail. For North American sales shipped by truck or train, the contracts state that control transfers once the truck or train has arrived at the customer’s specified location. The transaction price is included in the sales contract and is net of customer discounts, rebates and other selling concessions. Note 1. The Company and Summary of Significant Accounting Policies (continued) The Company’s pulp sales are to tissue and paper producers and the Company’s lumber sales are to manufacturers and retailers. The Company’s sales in Europe and North America are direct to the customer. The Company’s pulp sales to overseas customers are primarily through third party sales agents and the Company’s lumber sales to overseas customers are either direct to the customer or through third party sales agents. The Company is the principal in all of the arrangements with third party sales agents. Energy Revenues Energy sales are to utility companies in Canada and Germany. Sales of energy are recognized as the electricity is consumed by the customer and is based on contractual usage rates and meter readings that measure electricity consumption. Pallet, Chemical, Biofuel and Wood Residual Revenues Pallet, chemical, biofuel and wood residual revenues sold from the German mills are sold primarily into the European market. Pallet and biofuel sales are sold to the end customer or to a trader. Chemical and wood residual sales are sold direct to the customer. These sales typically have shipping terms where control transfers once the product is loaded onto the truck at the mill. Mass Timber Revenues Mass timber includes CLT manufactured at Mercer Mass Timber. A mass timber sales contract will typically represent a single distinct performance obligation due to the highly interdependent and interrelated nature of the underlying goods and/or services provided. Mass timber contract revenue is recognized over the contract term as the work progresses because of the continuous transfer of control to the customer. The customer typically controls the work in process as evidenced by the Company's right to payment of the transaction price associated with work performed to date on products or services that do not have an alternative use to the Company. The accounting for the mass timber contracts involves a judgmental process of estimating total sales, costs and profit for the performance obligation. Cost of sales is recognized as incurred. The amount reported as revenues is determined by adding a proportionate amount of the estimated profit to the amount reported as cost of sales. Recognizing revenue as costs are incurred provides an objective measure of progress and thereby best depicts the extent of transfer of control to the customer. Changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on the contract’s percentage-of-completion. Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized in “Revenues” in the Consolidated Statements of Operations. Shipping and handling costs incurred by the Company are included in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations at the time the related revenue is recognized. Insurance Claims The Company records business interruption insurance proceeds once the insurance provider acknowledges that the claim is covered and agrees in writing to the amount to be paid for the claim. The Company reports business interruption insurance proceeds in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) The Company records insurance proceeds related to property up to the amount of the related impairment when it is probable they will be received. Proceeds in excess of the impairment are recorded once the insurance provider acknowledges that the claim is covered and agrees in writing to the amount to be paid for the claim. The Company reports property insurance proceeds in the same line item in which the related impairment was recognized in the Consolidated Statements of Operations. Stock-Based Compensation The Company recognizes stock-based compensation expense over an award’s requisite service period based on the award’s fair value in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. Under the 2022 Plan, each performance share unit ("PSU") provides the holder the right to receive upon vesting a common share of the Company, a cash payment or a combination of common shares or cash if certain market and/or performance goals established by the Company are met. The performance objective period is generally three years . The fair value of PSUs granted with a performance condition is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. The fair value of PSUs granted with a market and performance condition is estimated using a Monte Carlo simulation model using historical volatility and a risk-free interest rate. The Company estimates forfeitures of PSUs based on management’s expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. The fair value of restricted shares, restricted stock units ("RSUs"), and deferred stock units (“DSUs”) is determined based upon the number of shares or units granted and the quoted price of the Company’s common shares on the date of grant. The vesting period is generally one year . Deferred Income Taxes Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all deferred tax liabilities and assets are offset and presented as a single net amount. Derivative Financial Instruments The Company occasionally enters into derivative financial instruments to manage certain market risks. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value in the Consolidated Balance Sheets with the changes in fair value recognized in “Other income” in the Consolidated Statements of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. Note 1. The Company and Summary of Significant Accounting Policies (continued) Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuations based on observable inputs in active markets for similar assets and liabilities, other than Level 1 prices, such as quoted commodity prices or interest or currency exchange rates. Level 3 – Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding in the period. Diluted net income (loss) per common share is calculated to give effect to all potentially dilutive common shares outstanding by applying the “Treasury Stock” and “If-Converted” methods. Instruments that could have a potentially dilutive effect on the Company’s weighted average shares outstanding include all or a portion of outstanding stock options, RSUs, DSUs, restricted shares, performance shares, PSUs and stock appreciation rights. Business Combinations The Company uses the acquisition method in accounting for a business combination that meets the definition of a business. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. In developing estimates of fair market values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, discount rates, estimated replacement costs and depreciation and obsolescence factors. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Acquisition costs, as well as costs to integrate acquired companies, are expensed as incurred in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In March 2021, the intended cessation date of LIBOR in the United States was extended to June 30, 2023. Accordingly, ASU 2022-06 defers the expiration date of Topic 848 to December 31, 2024. As of December 31, 2022, the Company does not have any debt agreements that utilize LIBOR as one of the alternative applicable rates. Therefore, the Company does not believe that the discontinuation of LIBOR will have a material adverse effect on its financial position. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions 2022 Torgau Acquisition On September 30, 2022 , the Company acquired all of the issued and outstanding shares of Wood Holdco GmbH, which is the parent company of Torgau for consideration of € 270.0 million ($ 263,196 ) cash. The acquisition results in 100 % ownership of a timber processing and value-add pallet production facility in Torgau, Germany and a wood processing facility in Dahlen, Germany that produces garden products. The acquisition of Torgau expands the Company’s solid wood business and further diversifies the Company’s product offerings. The following summarizes the Company’s preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: Purchase Price Cash $ 6,592 Accounts receivable 13,202 Inventories 50,900 Other current assets 2,548 Property, plant and equipment 205,450 Amortizable intangible assets (a) 25,141 Goodwill (b) 28,274 Other long-term assets 3,934 Total assets acquired 336,041 Accounts payable and other current liabilities ( 43,905 ) Deferred income tax ( 26,451 ) Other long-term liabilities ( 2,489 ) Total liabilities assumed ( 72,845 ) Net assets acquired $ 263,196 (a) Amortizable intangible assets include an order backlog, which has an estimated fair value of $ 15,243 and is being amortized on a straight-line basis over six months and an energy sales agreement, which has an estimated fair value of $ 9,898 and is being amortized on a straight-line basis over 12 years. (b) The goodwill is primarily for expected synergies from combining the operations of Torgau with the Company’s existing German operations. The goodwill is not deductible for tax purposes. Note 2. Acquisitions (continued) The purchase price allocation was based on a preliminary valuation and may be revised as a result of additional information obtained regarding the assets acquired and liabilities assumed, and revisions of provisional estimates of fair value, including, but not limited to, the completion of valuations related to property, plant, and equipment and the identification of intangible assets. The purchase price allocation will be finalized during the 12 month measurement period following the acquisition date. Management applied significant judgment in estimating the fair value of certain property, plant and equipment acquired using the cost approach, which involved the use of assumptions with respect to estimated replacement costs, estimated useful lives, as well as physical, functional and economic obsolescence, as applicable, at the time of acquisition. Torgau is a business under GAAP, accordingly the Company began consolidating its results of operations, financial position and cash flows in the consolidated financial statements as of the acquisition date. The amount of Torgau’s revenues and net loss included in the Consolidated Statements of Operations for the year ended December 31, 2022 was $ 64,364 and $ 13,450 , respectively. In the year ended December 31, 2022, $ 1,945 of acquisition related costs were recognized in “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The following unaudited pro forma information represents the Company’s results of operations as if the acquisition of Torgau had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. For the Year Ended December 31, 2022 2021 Revenues $ 2,532,271 $ 2,071,896 Net income $ 295,066 $ 196,017 The unaudited pro forma information had no material nonrecurring adjustments directly attributable to the acquisition. 2021 Mercer Mass Timber Acquisition On August 5, 2021 , the Company acquired Mercer Mass Timber, a CLT facility in Spokane Washington for $ 51,258 cash, including $ 1,258 of acquisition costs. The transaction was accounted for as an acquisition of a group of assets as management determined it does not qualify as an acquisition of a business under GAAP. Substantially all of the fair value of the gross assets acquired was concentrated in a group of similar identifiable assets, being the land, building and production equipment acquired. |
Business Interruption Insurance
Business Interruption Insurance | 12 Months Ended |
Dec. 31, 2022 | |
Extraordinary And Unusual Items [Abstract] | |
Business Interruption Insurance | Note 3. Business Interruption Insurance In 2022, a fire occurred in the woodyard of the Stendal mill. The Company has received written confirmation from the insurance provider that the business interruption insurance claim related to the fire is covered and the insurance provider paid initial nonrefundable payments of € 14.4 million ($ 15,143 ). The Company also received an initial € 2.1 million ($ 2,206 ) for property insurance related to the fire. The business interruption and property insurance proceeds were recognized in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. In 2021, the Company replaced the lower furnace of a boiler at the Peace River mill as a result of an incident that occurred in 2017. In 2021, the Company received written confirmation from the insurance provider that the business interruption insurance claim related to the boiler repair was covered and the amount of the settlement was C$ 43.0 million ($ 34,303 ). As of December 31, 2021, C$ 40.0 million ($ 31,551 ) of this payment was receivable. The business interruption insurance proceeds were recognized in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. Subsequent to year end, the insurance claim receivable was settled in full. |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Income And Expenses [Abstract] | |
Other Income | Note 4. Other Income Other income for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: For the Year Ended December 31, 2022 2021 2020 Foreign exchange gain (loss) $ 17,975 $ 12,674 $ ( 13,797 ) Gain on sale of investments (a) 519 — 17,540 Other 5,940 1,725 2,135 Other income $ 24,434 $ 14,399 $ 5,878 (a) On April 4, 2022, the Company purchased a $ 75,000 term deposit, which was classified as held to maturity and reported at cost. The term deposit had an annual interest rate of 1.38 % and matured on October 4, 2022 . The proceeds were held as cash. In 2020, the Company purchased certain equity security investments for $ 9,370 and sold them for $ 26,910 which resulted in a realized gain of $ 17,540 . These investments were Level 1 investments and were held at fair value with gains and losses included in earnings. As of December 31, 2022 and December 31, 2021, the Company held no such investments. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 5. Accounts Receivable, Net Accounts receivable, net as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, 2022 2021 Trade, net of allowance of $ 876 (2021 — $ 845 ) $ 296,192 $ 293,498 Insurance claims (a) — 37,953 Sales and income taxes receivable 40,240 6,709 Other 15,561 7,185 $ 351,993 $ 345,345 (a) Insurance claims receivable were for the final settlement of the 2021 Peace River boiler claims and included the remaining business interruption claim of C$ 40.0 million ($ 31,551 ) and the remaining property claim of C$ 8.1 million ($ 6,402 ). Subsequent to December 31, 2021, the insurance claims receivable were settled in full. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Net [Abstract] | |
Inventories | Note 6. Inventories Inventories as of December 31, 2022 and December 31, 2021, were comprised of the following: December 31, 2022 2021 Raw materials $ 160,442 $ 106,434 Finished goods 158,082 140,829 Spare parts and other 131,946 109,468 $ 450,470 $ 356,731 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 7. Property, Plant and Equipment, Net Property, plant and equipment, net as of December 31, 2022 and December 31, 2021, was comprised of the following: Estimated Useful Lives December 31, (Years) 2022 2021 Land $ 90,202 $ 61,067 Buildings 10 - 50 354,048 309,039 Production and other equipment 5 - 25 2,243,571 2,079,801 2,687,821 2,449,907 Less: accumulated depreciation ( 1,346,499 ) ( 1,314,276 ) $ 1,341,322 $ 1,135,631 As of December 31, 2022, property, plant and equipment was net of $ 144,096 of unamortized government grants (2021 – $ 164,439 ). Amortization expense related to government grants for the year ended December 31, 2022 was $ 18,103 (2021 – $ 19,855 ; 2020 – $ 18,369 ). In 2022, the Company received government grants of $ 1,067 (2021 - $ 9,333 ) to partially finance innovation and greenhouse gas reduction projects at the Canadian mills. These grants were netted against “Property, plant and equipment, net” in the Consolidated Balance Sheets. The Company maintains industrial landfills on its premises for the disposal of waste, primarily from the mills’ pulp processing activities. The mills have obligations under their landfill permits to decommission these disposal facilities pursuant to certain regulations. As of December 31, 2022, the Company had recorded $ 11,892 (2021 – $ 12,529 ) of asset retirement obligations in “Other long-term liabilities” in the Consolidated Balance Sheets. |
Amortizable Intangible Assets,
Amortizable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets, Net | Note 8. Amortizable Intangible Assets, Net Amortizable intangible assets, net as of December 31, 2022 and December 31, 2021, were comprised of the following: Estimated December 31, 2022 December 31, 2021 Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Energy sales agreements 11 - 12 $ 26,884 $ ( 8,590 ) $ 18,294 $ 17,047 $ ( 7,327 ) $ 9,720 Timber cutting rights 30 37,175 ( 5,032 ) 32,143 39,714 ( 4,051 ) 35,663 Order backlog 0.5 16,678 ( 8,339 ) 8,339 — — — Software and other intangible assets 5 26,977 ( 24,256 ) 2,721 27,376 ( 24,857 ) 2,519 $ 107,714 $ ( 46,217 ) $ 61,497 $ 84,137 $ ( 36,235 ) $ 47,902 Amortization expense related to intangible assets for the year ended December 31, 2022 was $ 11,882 (2021 – $ 4,767 ; 2020 – $ 4,414 ). Amortization expense for the next five years related to intangible assets as of December 31, 2022 is expected to be as follows: 2023 2024 2025 2026 2027 Amortization expense $ 12,888 $ 4,312 $ 4,022 $ 3,763 $ 3,665 |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Long-Term Assets | Note 9. Other Long-Term Assets Other long-term assets as of December 31, 2022 and December 31, 2021, were comprised of the following: December 31, 2022 2021 Sandalwood tree plantations $ 32,556 $ 30,731 German carbon certificates 10,680 5,453 Other 4,789 2,534 $ 48,025 $ 38,718 |
Accounts Payable and Other
Accounts Payable and Other | 12 Months Ended |
Dec. 31, 2022 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other | Note 10. Accounts Payable and Other Accounts payable and other as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, 2022 2021 Trade payables $ 92,848 $ 58,451 Accrued expenses 95,798 76,409 Interest payable 26,756 26,506 Income tax payable 99,827 56,241 Payroll-related accruals 34,353 20,707 Wastewater fee (a) 8,614 19,248 Finance lease liability 7,368 8,467 Operating lease liability 5,255 3,192 Government grants (b) 1,181 7,302 Other 5,306 5,784 $ 377,306 $ 282,307 (a) The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. Reduction to the wastewater fee for the year ended December 31, 2022 was $ 12,847 (2021 – $ nil ; 2020 – $ nil ). (b) The Canadian mills have a liability for unspent government grants which are required to be used to partially finance greenhouse gas emission reduction and innovation capital projects. The grants are recognized in “Cash and cash equivalents” in the Consolidated Balance Sheets, however, they are considered to be restricted as they are repayable if the mills do not spend the funds on approved projects. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 11. Debt Debt as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, Maturity 2022 2021 Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 300 million German joint revolving credit facility (b) 2027 109,326 — C$ 160 million Canadian joint revolving credit facility (c) 2027 31,749 — C$ 60 million Peace River revolving credit facility (c) — 22,874 C$ 60 million Celgar revolving credit facility (c) — — € 2.6 million demand loan (d) — — Finance lease liability 51,129 64,041 1,367,204 1,261,915 Less: unamortized senior note issuance costs ( 13,328 ) ( 15,903 ) Less: finance lease liability due within one year ( 7,368 ) ( 8,467 ) $ 1,346,508 $ 1,237,545 The maturities of the principal portion of debt as of December 31, 2022 were as follows: Senior Notes and Credit Arrangements Finance Leases 2023 $ — $ 8,597 2024 — 7,825 2025 — 6,954 2026 300,000 6,879 2027 141,075 6,879 Thereafter 875,000 18,690 1,316,075 55,824 Less imputed interest — ( 4,695 ) Total payments $ 1,316,075 $ 51,129 Certain of the Company’s debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As of December 31, 2022, the Company was in compliance with the terms of its debt agreements. (a) In January 2021, the Company issued $ 875,000 in aggregate principal amount of 5.125 % senior notes which mature on February 1, 2029 (the “2029 Senior Notes”). The net proceeds from the 2029 Senior Notes issuance were $ 860,517 after deducting the underwriter’s discount and offering expenses. The net proceeds were used to redeem the outstanding senior notes which were to mature in 2024 and 2025 and for general corporate purposes. In connection with the redemption, the Company recorded a loss on early extinguishment of debt of $ 30,368 in the Consolidated Statements of Operations. The 2029 Senior Notes and the senior notes which mature on January 15, 2026 (the “2026 Senior Notes” and collectively with the 2029 Senior Notes, the “Senior Notes”) are general unsecured senior obligations of the Company. The Company may redeem all or a part of the Senior Notes upon not less than 10 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. Note 11. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the Senior Notes: 2026 Senior Notes 2029 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage January 15, 2022 101.375 % February 1, 2024 102.563 % January 15, 2023 and thereafter 100.000 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % (b) A € 300.0 million joint revolving credit facility for the German mills that matures in September 2027. Borrowings under the new facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.30 % to 2.25 % dependent on conditions including but not limited to a prescribed leverage ratio. The facility is sustainability-linked whereby the interest rate margin is subject to upward or downward adjustments of up to 0.05 % per annum if the Company achieves, or fails to achieve, certain specified sustainability targets. As of December 31, 2022, approximately € 102.5 million ($ 109,326 ) of this facility was drawn and accruing interest at a rate of 3.193 % , approximately € 13.5 million ($ 14,433 ) was supporting bank guarantees and approximately € 184.0 million ($ 196,220 ) was available. (c) A C$ 160.0 million joint revolving credit facility for the Celgar mill, Peace River mill and certain other Canadian subsidiaries that matures in January 2027. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.20 % to 1.45 % per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50 %, an Adjusted Term SOFR for a one month tenor plus 1.00 % and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of December 31, 2022, approximately C$ 43.0 million ($ 31,749 ) of this facility was drawn and accruing interest at a rate of 6.034 %, approximately C$ 1.3 million ($ 970 ) was supporting letters of credit and approximately C$ 115.7 million ($ 85,415 ) was available. The facility replaced the Peace River and Celgar C$ 60.0 million revolving credit facilities. (d) A € 2.6 million demand loan for Rosenthal that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of December 31, 2022, approximately € 2.6 million ($ 2,722 ) of this facility was supporting bank guarantees and approximately $ nil was available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Post-Retirement Benefit Obligations | Note 12. Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Pension benefits are based on employees’ earnings and years of service. The defined benefit plans are funded by contributions from the Company based on actuarial estimates and statutory requirements. Information about the Celgar and Peace River defined benefit plans, in aggregate for the year ended December 31, 2022 was as follows: 2022 Pension Other Post- Total Change in benefit obligation Benefit obligation, December 31, 2021 $ 125,975 $ 13,339 $ 139,314 Service cost 3,553 191 3,744 Interest cost 3,756 410 4,166 Benefit payments, net ( 4,163 ) ( 534 ) ( 4,697 ) Actuarial gains ( 28,292 ) ( 2,960 ) ( 31,252 ) Foreign currency exchange rate changes ( 6,699 ) ( 434 ) ( 7,133 ) Benefit obligation, December 31, 2022 94,130 10,012 104,142 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2021 121,381 — 121,381 Actual returns ( 17,654 ) — ( 17,654 ) Contributions 2,942 — 2,942 Benefit payments ( 4,037 ) — ( 4,037 ) Foreign currency exchange rate changes ( 7,026 ) — ( 7,026 ) Fair value of plan assets, December 31, 2022 95,606 — 95,606 Funded status, December 31, 2022 $ 1,476 $ ( 10,012 ) $ ( 8,536 ) Components of the net benefit cost recognized Service cost $ 3,553 $ 191 $ 3,744 Interest cost 3,756 410 4,166 Expected return on plan assets ( 5,800 ) — ( 5,800 ) Amortization of unrecognized item s 290 ( 692 ) ( 402 ) Net benefit cost $ 1,799 $ ( 91 ) $ 1,708 Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) Information about the Celgar and Peace River defined benefit plans, in aggregate for the year ended December 31, 2021 was as follows: 2021 Pension Other Post- Total Change in benefit obligation Benefit obligation, December 31, 2020 $ 128,854 $ 14,234 $ 143,088 Service cost 3,942 303 4,245 Interest cost 3,524 391 3,915 Benefit payments, net ( 4,231 ) ( 531 ) ( 4,762 ) Actuarial gains ( 6,701 ) ( 1,130 ) ( 7,831 ) Foreign currency exchange rate changes 587 72 659 Benefit obligation, December 31, 2021 125,975 13,339 139,314 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2020 110,476 — 110,476 Actual returns 9,315 — 9,315 Contributions 4,258 — 4,258 Benefit payments ( 4,098 ) — ( 4,098 ) Foreign currency exchange rate changes 1,430 — 1,430 Fair value of plan assets, December 31, 2021 121,381 — 121,381 Funded status, December 31, 2021 $ ( 4,594 ) $ ( 13,339 ) $ ( 17,933 ) Components of the net benefit cost recognized Service cost $ 3,942 $ 303 $ 4,245 Interest cost 3,524 391 3,915 Expected return on plan assets ( 5,216 ) — ( 5,216 ) Amortization of unrecognized items 678 ( 791 ) ( 113 ) Net benefit cost $ 2,928 $ ( 97 ) $ 2,831 The components of the net benefit cost other than service cost are recognized in “Other income” in the Consolidated Statements of Operations. The amortization of unrecognized items relates to net actuarial losses (gains) and prior service costs. The Company anticipates that it will make contributions to the defined benefit plans of approximately $ 2,197 in 2023. Estimated future benefit payments under these plans as of December 31, 2022 were as follows: Pension Other Post-Retirement 2023 $ 4,789 $ 540 2024 $ 5,059 $ 566 2025 $ 5,354 $ 586 2026 $ 5,569 $ 604 2027 $ 5,747 $ 622 2028-2032 $ 31,012 $ 3,373 Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) Weighted Average Assumptions The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2022, 2021 and 2020 were as follows for Celgar’s defined benefit plan: For the Year Ended December 31, 2022 2021 2020 Benefit obligations Discount rate 5.00 % 3.10 % 2.55 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.10 % 2.70 % 3.00 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 3.60 % 4.00 % 4.10 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2022, 2021 and 2020 were as follows for Peace River’s defined benefit plan: For the Year Ended December 31, 2022 2021 2020 Benefit obligations Discount rate 5.00 % 3.10 % 2.70 % Rate of compensation increase 2.75 % 2.75 % 2.75 % Net benefit cost for year ended Discount rate 3.10 % 2.70 % 3.20 % Rate of compensation increase 2.75 % 2.75 % 2.75 % Expected rate of return on plan assets 5.48 % 4.93 % 4.68 % The discount rate assumption is adjusted annually to reflect the rates available on high-quality debt instruments, with a duration that is expected to match the timing and amount of expected pension and other post-retirement benefit payments. High-quality debt instruments are corporate bonds with a rating of “AA” or better. The expected rate of return on plan assets is a management estimate based on, among other factors, historical long-term returns, expected asset mix and an active management premium. The expected rate of compensation increase is a management estimate based on, among other factors, historical compensation increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with employees and the outlook for the industry. The assumed health care cost trend rates used to determine the other post-retirement benefit obligations as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 Health care cost trend rate assumed for next year 4.75 % 4.50 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.00 % 4.50 % Year that the rate reaches the ultimate trend rate 2026 2022 Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) The expected health care cost trend rates are based on historical trends for these costs, as well as recently enacted health care legislation. The Company also compares health care cost trend rates to those of the industry. Investment Objective and Asset Allocation The investment objective for the defined benefit pension plans is to sufficiently diversify invested plan assets to maintain a reasonable level of risk without imprudently sacrificing the return on the invested funds, and ultimately to achieve a long-term total rate of return, net of fees and expenses, at least equal to the long-term interest rate assumptions used for funding actuarial valuations. To achieve this objective, the Company’s overall investment strategy is to maintain an investment allocation mix of long-term growth investments (equities) and fixed income investments (debt securities). Investment allocation targets have been established by asset class after considering the nature of the liabilities, long-term return expectations, the risks associated with key asset classes, funded position, inflation and interest rates and related management fees and expenses. In addition, the defined benefit pension plan’s investment strategy seeks to minimize risk beyond legislated requirements by constraining the investment managers’ investment options. There are a number of specific constraints based on investment type, but they all have the general purpose of ensuring that the investments are fully diversified and that risk is appropriately managed. For example, there are constraints on the book value of assets that can be invested in any one entity or group, and all equity holdings must be listed on a public exchange. Reviews of the investment objectives, key assumptions and the independent investment managers are performed periodically. Pension De-Risking Actions In 2017, the Company initiated a pension de-risking strategy for Celgar’s defined benefit plan. The first step of the strategy resulted in changing the target investment mix to 80 % debt securities, to more effectively hedge the plan liabilities for inactive members, and 20 % equity securities, to consider the inflationary effect of future salary increases for the remaining active members. In 2018, the Company used the debt security investments in Celgar’s defined benefit plan to purchase buy-in annuities for all inactive members. This transaction fully hedges the plan liabilities for the majority of inactive members. Concentrations of Risk in the Defined Benefit Pension Plan’s Assets The Company has reviewed the defined benefit pension plan’s equity investments and determined that they are allocated based on the specific investment managers’ stated investment strategies with only slight over- or under-weightings within any specific category, and that those investments are within the constraints that have been set by the Company. Those constraints include a limitation on the value that can be invested in any one entity or investment category. The Company has concluded that there are no significant concentrations of risk. The following table presents the Celgar and Peace River defined benefit pension plans’ assets fair value measurements as of December 31, 2022 under the fair value hierarchy: Fair value measurements as of December 31, 2022 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ — $ 52,640 $ — $ 52,640 Debt securities — 23,071 — 23,071 Buy-in annuity — — 18,402 18,402 Other — 1,493 — 1,493 Total assets $ — $ 77,204 $ 18,402 $ 95,606 Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) The following table presents the Celgar and Peace River defined benefit pension plans’ assets fair value measurements as of December 31, 2021 under the fair value hierarchy: Fair value measurements as of December 31, 2021 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ — $ 64,057 $ — $ 64,057 Debt securities — 31,125 — 31,125 Buy-in annuity — — 24,458 24,458 Other — 1,741 — 1,741 Total assets $ — $ 96,923 $ 24,458 $ 121,381 The change in Level 3 fair value measurements of plan assets for the years ended December 31, 2022 and 2021 was as follows: Buy-in Annuity Balance as of December 31, 2020 $ 26,017 Actual return on plan assets 645 Benefit payments ( 1,789 ) Actuarial gains ( 545 ) Effect of foreign currency exchange rate changes 130 Balance as of December 31, 2021 24,458 Actual return on plan assets 623 Benefit payments ( 1,709 ) Actuarial gains ( 3,589 ) Effect of foreign currency exchange rate changes ( 1,381 ) Balance as of December 31, 2022 $ 18,402 Defined Contribution Plans Effective December 31, 2008, the defined benefit plans at the Celgar mill were closed to new members. In addition, the related defined benefit service accrual ceased on December 31, 2008, and members began to receive pension benefits, at a fixed contractual rate, under a new defined contribution plan effective January 1, 2009. The Company’s head office employees also participate in a defined contribution plan. During the year ended December 31, 2022, the Company made contributions of $ 1,982 to these plans (2021 – $ 1,768 ; 2020 – $ 1,634 ). Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. During the year ended December 31, 2022, the Company made contributions of $ 2,175 to this plan (2021 – $ 2,370 ; 2020 – $ 1,933 ). Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) Plan details for the years ended December 31, 2022, 2021 and 2020 were as follows: Provincially Registered Plan Expiration Date of Collective Bargaining Are the Company's Contributions Greater Than 5% of Total Contributions Legal name Number Agreement 2022 2021 2020 The Pulp and Paper Industry Pension Plan P085324 April 30, 2025 Yes Yes No |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes The components of i ncome (loss) before income taxes for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 U.S. $ ( 75,566 ) $ ( 75,955 ) $ ( 22,284 ) Foreign 420,869 336,522 11,145 $ 345,303 $ 260,567 $ ( 11,139 ) Provision for income taxes recognized in the Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: For the Year Ended December 31, 2022 2021 2020 U.S. Federal and State current income tax provision $ 297 $ 156 $ 1,782 Foreign current income tax provision 90,964 70,632 19,563 Total current income tax provision 91,261 70,788 21,345 Foreign deferred income tax provision (recovery) 7,003 18,791 ( 15,249 ) Total income tax provision $ 98,264 $ 89,579 $ 6,096 During the year ended December 31, 2022, the foreign current income tax provision is primarily for German entities. The Company’s effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in tax jurisdictions with differing statutory rates, changes in corporate structure, changes in the valuation of deferred tax assets and liabilities, the result of audit examinations of previously filed tax returns and changes in tax laws and rates. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Note 13. Income Taxes (continued) The Company and/or one or more of its subsidiaries file income tax returns in the U.S., Germany, Canada and Australia. Currently, the Company does not anticipate that the expiration of the statute of limitations or the completion of audits in the next fiscal year will result in liabilities for uncertain income tax positions that are materially different than the amounts accrued or disclosed as of December 31, 2022. However, this could change as tax years are examined by taxing authorities, the timing of which are uncertain at this time. The German tax authorities have completed examinations up to and including the 2017 tax year for all but two German entities. For one of the two entities, the German tax authorities have completed examinations up to and including the 2013 tax year; for the other entity, up to and including 2019. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2019 and 2018, respectively. The Company believes that it has adequately provided for any reasonable foreseeable outcomes related to its tax audits and that any settlement will not have a material adverse effect on its consolidated results. The liability in the Consolidated Balance Sheets related to unrecognized tax benefits was $ nil as of December 31, 2022 (2021 – $ nil ). The Company recognizes interest and penalties related to unrecognized tax benefits in “Income tax provision” in the Consolidated Statements of Operations. During the years ended December 31, 2022, 2021 and 2020 the Company did no t record any interest and penalties related to unrecognized tax benefits. Differences between the U.S. Federal statutory and the Company’s effective rates for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 U.S. Federal statutory rate 21 % 21 % 21 % U.S. Federal statutory rate on income (loss) before income taxes $ ( 72,570 ) $ ( 54,724 ) $ 2,339 Tax differential on foreign income ( 30,054 ) ( 25,361 ) ( 1,982 ) Effect of foreign earnings (a) ( 5,329 ) ( 7,524 ) ( 3,002 ) Valuation allowance 4,311 ( 12,048 ) ( 8,383 ) Tax benefit of partnership structure 3,132 3,132 3,740 Non-taxable foreign subsidies 2,704 2,936 2,851 True-up of prior year taxes 199 5,616 ( 1,863 ) Other ( 657 ) ( 1,606 ) 204 Income tax provision $ ( 98,264 ) $ ( 89,579 ) $ ( 6,096 ) (a) Primarily due to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017 . Note 13. Income Taxes (continued) Deferred income tax assets and liabilities as of December 31, 2022 and December 31, 2021 were comprised of the following: December 31, 2022 2021 German tax loss carryforwards $ 7,946 $ 9,500 U.S. tax loss carryforwards and credits 32,012 22,168 Canadian tax loss carryforwards 14,107 40,363 Australian tax loss carryforwards 6,580 5,090 Basis difference between income tax and financial reporting with respect to operating pulp mills ( 160,561 ) ( 146,000 ) Amortizable intangible assets ( 8,826 ) ( 9,449 ) Other long-term assets ( 6,986 ) ( 5,646 ) Debt ( 5,183 ) ( 5,691 ) Accounts payable and accrued expenses 4,765 5,382 Deferred pension liability 2,997 6,341 Finance leases 14,881 17,245 Scientific research and experimental development investment tax credit and expenditure pool 3,119 4,552 Other 8,069 5,389 ( 87,080 ) ( 50,756 ) Valuation allowance ( 38,879 ) ( 43,190 ) Net deferred income tax liability $ ( 125,959 ) $ ( 93,946 ) Comprised of: Deferred income tax asset $ — $ 1,177 Deferred income tax liability ( 125,959 ) ( 95,123 ) Net deferred income tax liability $ ( 125,959 ) $ ( 93,946 ) The following table details the scheduled expiration dates of the Company’s net operating loss, interest, investment tax credit and other tax attributes carryforwards as of December 31, 2022: Amount Expiration U.S. Interest $ 152,400 Indefinite Germany Interest $ 27,792 Indefinite Canada Net operating loss $ 50,000 2036 – 2041 Scientific research and experimental development investment tax credit $ 4,500 2030 – 2039 Australia Net operating loss $ 21,900 Indefinite At each reporting period, the Company assesses whether it is more likely than not that the deferred tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results and prudent and feasible tax planning strategies. The carrying value of the Company’s deferred tax assets reflects its expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. Significant judgment is required when evaluating this positive and negative evidence. Note 13. Income Taxes (continued) Changes in valuation allowances related to net deferred tax assets for the years ended December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Balance as of January 1 $ 43,190 $ 31,142 Additions (reversals) U.S. 10,839 14,770 Canada ( 15,926 ) ( 2,851 ) The impact of changes in foreign exchange rates 776 129 Balance as of December 31 $ 38,879 $ 43,190 As of December 31, 2022, the Company has recognized the deferred tax assets of its German entities and has a full valuation allowance against the net deferred tax assets of its U.S. and Canadian entities. The Company has not recognized a tax liability on the undistributed earnings of its foreign subsidiaries as of December 31, 2022 because these earnings are expected to be permanently reinvested outside the U.S. or repatriated without incurring a tax liability. As of December 31, 2022, the cumulative amount of undistributed earnings upon which U.S. income taxes have not been provided was approximately $ 404,472 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Note 14. Shareholders’ Equity Dividends The Company’s board of directors declared quarterly dividends during the years ended December 31, 2022 and 2021 as follows: Date Declared Dividend Per Amount February 17, 2022 $ 0.075 $ 4,960 April 28, 2022 0.075 4,962 July 28, 2022 0.075 4,963 October 27, 2022 0.075 4,962 $ 0.3000 $ 19,847 Date Declared Dividend Per Amount February 16, 2021 $ 0.065 $ 4,289 April 29, 2021 0.065 4,293 July 29, 2021 0.065 4,292 October 28, 2021 0.065 4,293 $ 0.2600 $ 17,167 On February 16, 2023, the Company’s board of directors declared a quarterly dividend of $ 0.075 per common share. Payment of the dividend will be on April 5, 2023 to all shareholders of record on March 29, 2023 . Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Note 14. Shareholders’ Equity (continued) Share Capital Preferred shares The Company has authorized 50,000,000 preferred shares (2021 – 50,000,000 ) with $ 1 par value issuable in series, of which 2,000,000 shares have been designated as Series A. The preferred shares may be issued in one or more series. Designations and preferences for each series shall be stated in the resolutions providing for the designation and issuance of each such series adopted by the Company’s board of directors. The board of directors is authorized by the Company’s articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. As of December 31, 2022, no preferred shares had been issued by the Company. Stock Based Compensation In May 2022, the Company adopted an amended and restated stock incentive plan (the “2022 Plan”) which provides for stock options, RSUs which under the prior plan were called “restricted stock rights”, DSUs, restricted shares, performance shares, PSUs, and stock appreciation rights to be awarded to employees, consultants and non-employee directors. The 2022 Plan replaced the Company’s 2010 stock incentive plan (the “2010 Plan”). However, the 2010 Plan will govern prior awards until all awards granted under the 2010 Plan have been exercised, forfeited, cancelled, expired, or otherwise terminated in accordance with the terms thereof. The Company may grant up to a maximum of 2.5 million common shares under the 2022 Plan, plus the number of common shares remaining available for grant pursuant to the 2010 Plan. During the year ended December 31, 2 0 22, there were no issued and outstanding stock options, performance shares or stock appreciation rights. As of December 31, 2022, after factoring in all allocated shares, there remain approximately 2.8 million common shares available for grant. As of December 31, 2022, the total compensation cost related to unvested PSUs, restricted shares, RSUs and DSUs not recognized was approximately $ 5,963 which will be recognized over a weighted average period of one year . PSUs PSU activity during the year ended December 31, 2022 was as follows: Number of PSUs Weighted Average Outstanding as of January 1, 2022 2,754,472 $ 12.98 Granted 1,709,688 13.61 Vested and issued ( 94,940 ) 15.34 Forfeited ( 885,066 ) 14.36 Outstanding as of December 31, 2022 3,484,154 $ 12.87 The weighted-average grant date fair value per unit of all PSUs granted in 2021 and 2020 was $ 13.72 and $ 11.00 , respectively. The total fair value of PSUs vested and issued in 2022, 2021 and 2020 was $ 1,208 , $ 1,642 and $ 2,101 , respectively. Note 14. Shareholders’ Equity (continued) Restricted Shares, RSUs and DSUs Restricted share, RSU and DSU activity during the year ended December 31, 2022 was as follows: Number of Restricted Shares Number of RSUs Number of DSUs Weighted Average Outstanding as of January 1, 2022 49,195 — — $ 14.84 Granted 34,699 50,000 16,048 15.65 Vested ( 49,195 ) — ( 4,494 ) 14.92 Outstanding as of December 31, 2022 34,699 50,000 11,554 $ 15.64 The weighted-average grant date fair value per share of all restricted shares granted in 2021 and 2020 was $ 14.84 and $ 8.07 , respectively. The total fair value of restricted shares and DSUs vested and issued in 2022, 2021 and 2020 was $ 793 , $ 1,011 and $ 248 , respectively. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 15. Net Income (Loss) Per Common Share The reconciliation of basic and diluted net income (loss) per common share for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Year Ended December 31, 2022 2021 2020 Net income (loss) Basic and diluted $ 247,039 $ 170,988 $ ( 17,235 ) Net income (loss) per common share Basic $ 3.74 $ 2.59 $ ( 0.26 ) Diluted $ 3.71 $ 2.58 $ ( 0.26 ) Weighted average number of common shares outstanding: Basic (a) 66,100,040 65,944,494 65,768,485 Effect of dilutive instruments: PSUs 468,931 312,455 — Restricted shares 17,842 27,054 — RSUs 11,886 — — DSUs 3,687 — — Diluted 66,602,386 66,284,003 65,768,485 (a) For the year ended December 31, 2022, the basic weighted average number of common shares outstanding excludes 34,699 restricted shares which have been issued, but have not vested as of December 31, 2022 (2021 – 49,195 restricted shares; 2020 – 68,140 restricted shares). The calculation of diluted net income (loss) per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per common share. Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 PSUs — — 2,364,848 Restricted shares — — 68,140 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 16. Accumulated Other Comprehensive Loss The change in accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2022, 2021 and 2020 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Balance as of December 31, 2019 $ ( 114,709 ) $ ( 1,851 ) $ ( 116,560 ) Other comprehensive income (loss) before reclassifications 95,131 ( 6,114 ) 89,017 Amounts reclassified — ( 32 ) ( 32 ) Other comprehensive income (loss) 95,131 ( 6,146 ) 88,985 Balance as of December 31, 2020 ( 19,578 ) ( 7,997 ) ( 27,575 ) Other comprehensive income (loss) before reclassifications ( 77,939 ) 14,834 ( 63,105 ) Amounts reclassified — ( 113 ) ( 113 ) Other comprehensive income (loss) ( 77,939 ) 14,721 ( 63,218 ) Balance as of December 31, 2021 ( 97,517 ) 6,724 ( 90,793 ) Other comprehensive income (loss) before reclassifications ( 97,568 ) 8,801 ( 88,767 ) Amounts reclassified — ( 402 ) ( 402 ) Other comprehensive income (loss) ( 97,568 ) 8,399 ( 89,169 ) Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) Foreign currency translation adjustments recognized in other comprehensive income (loss) include intra-entity foreign currency loans that are of a long-term investment nature. For the year ended December 31, 2022, the foreign currency translation gain from these transactions was $ 1,598 (2021 - loss of $ 6,905 ; 2020 - gain of $ 5,111 ). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17. Related Party Transactions The Company enters into related party transactions with its joint ventures. For the year ended December 31, 2022, pulp purchases from the Company’s 50 % owned CPP mill, which are transacted at the CPP mill’s cost, were $ 101,095 (2021 – $ 88,073 ; 2020 – $ 76,875 ) and as of December 31, 2022 the Company had a payable balance to the CPP mill of $ 4,409 (December 31, 2021 – receivable of $ 5,688 ). For the year ended December 31, 2022, services from the Company’s 50 % owned logging and chipping operation, which are transacted at arm’s length negotiated prices, were $ 12,545 (2021 – $ 12,775 ; 2020 – $ 15,118 ) and as of December 31, 2022 the Company had a receivable balance from the operation of $ 522 (December 31, 2021 – payable of $ 2,400 ). |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18. Segment Information The Company is managed based on the primary products it manufactures: pulp and solid wood. Accordingly, the Company's four pulp mills and its 50 % interest in the Cariboo pulp mill are aggregated into the pulp segment. The Friesau sawmill, the Torgau facility and the Mercer Mass Timber facility are aggregated into the solid wood segment. Historically the Mercer Mass Timber facility was included in corporate and other, but concurrent with the acquisition of Torgau on September 30, 2022, the Company reorganized its operating and management structure which included having the Mercer Mass Timber facility now being overseen by the same chief operating decision maker as the Friesau sawmill and the Torgau facility. The classification of the Mercer Mass Timber facility within the solid wood segment has been reflected retrospectively. The Company's sandalwood business is included in corporate and other as it does not meet the criteria to be reported as a separate reportable segment. None of the income or loss items following operating income in the Company’s Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management. Note 18. Segment Information (continued) Information about certain segment data for the years ended December 31, 2022, 2021 and 2020, was as follows: December 31, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 Operating income (loss) $ 340,664 $ 70,642 $ ( 18,938 ) $ 392,368 Depreciation and amortization $ 112,058 $ 31,170 $ 925 $ 144,153 Purchase of property, plant and equipment $ 146,635 $ 31,190 $ 917 $ 178,742 Total assets (a) $ 1,768,628 $ 613,171 $ 343,238 $ 2,725,037 Revenues by major products Pulp $ 1,686,370 $ — $ — $ 1,686,370 Lumber — 288,002 — 288,002 Energy and chemicals 179,747 25,653 6,362 211,762 Manufactured products (b) — 22,759 — 22,759 Pallets — 36,063 — 36,063 Biofuels (c) — 17,691 — 17,691 Wood residuals — 18,290 — 18,290 Total revenues $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 Revenues by geographical markets (d) U.S. $ 236,862 $ 177,917 $ 1,329 $ 416,108 Foreign countries Germany 553,935 142,846 392 697,173 China 495,668 1,774 — 497,442 Other countries 579,652 85,921 4,641 670,214 1,629,255 230,541 5,033 1,864,829 Total revenues $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 (a) Total assets for the pulp segment includes the Company’s $ 45,635 investment in joint ventures, primarily for the CPP mill. Total assets for the solid wood segment includes $ 30,937 of goodwill from the acquisition of Torgau. (b) Manufactured products primarily includes CLT and finger joint lumber. (c) Biofuels includes pellets and briquettes. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 18. Segment Information (continued) December 31, 2021 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 Operating income (loss) $ 251,724 $ 106,092 $ ( 11,233 ) $ 346,583 Depreciation and amortization $ 115,293 $ 15,784 $ 1,122 $ 132,199 Purchase of property, plant and equipment $ 139,312 $ 19,379 $ 749 $ 159,440 Total assets (a) $ 1,882,078 $ 313,354 $ 155,800 $ 2,351,232 Revenues by major products Pulp $ 1,389,439 $ — $ — $ 1,389,439 Lumber — 293,166 — 293,166 Energy and chemicals 93,654 11,547 6,690 111,891 Manufactured products (b) — 2,391 — 2,391 Wood residuals — 6,368 — 6,368 Total revenues $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 Revenues by geographical markets (c) U.S. $ 183,198 $ 159,153 $ 2,836 $ 345,187 Foreign countries Germany 459,725 62,986 — 522,711 China 375,891 1,245 — 377,136 Other countries 464,279 90,088 3,854 558,221 1,299,895 154,319 3,854 1,458,068 Total revenues $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 (a) Total assets for the pulp segment includes the Company’s $ 49,651 investment in joint ventures, primarily for the CPP mill. (b) Manufactured products primarily includes finger joint lumber. (c) Sales are attributed to countries based on the ship – to location provided by the customer. Note 18. Segment Information (continued) December 31, 2020 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 Operating income (loss) $ 37,952 $ 34,704 $ ( 8,927 ) $ 63,729 Depreciation and amortization $ 115,945 $ 12,212 $ 764 $ 128,921 Purchase of property, plant and equipment $ 53,734 $ 23,788 $ 996 $ 78,518 Total assets (a) $ 1,740,233 $ 112,267 $ 276,626 $ 2,129,126 Revenues by major products Pulp $ 1,130,302 $ — $ — $ 1,130,302 Lumber — 180,769 — 180,769 Energy and chemicals 90,342 10,619 4,847 105,808 Wood residuals — 6,261 — 6,261 Total revenues $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 Revenues by geographical markets (b) U.S. $ 149,816 $ 93,802 $ 1,734 $ 245,352 Foreign countries Germany 336,346 50,945 — 387,291 China 364,527 3,037 — 367,564 Other countries 369,955 49,865 3,113 422,933 1,070,828 103,847 3,113 1,177,788 Total revenues $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 (a) Total assets for the pulp segment includes the Company’s $ 46,429 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the solid wood segment to the pulp segment for use in the pulp production process and from the sale of residual fuel from the pulp segment to the solid wood segment for use in energy production. For the year ended December 31, 2022, the pulp segment sold $ nil of residual fuel to the solid wood segment (2021 – $ 336 ; 2020 – $ 459 ) and the solid wood segment sold $ 34,236 of residual fiber to the pulp segment (2021 – $ 12,661 ; 2020 – $ 12,040 ). The Company’s long-lived assets by geographic area based on the location of the assets as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 U.S. $ 53,291 $ 51,136 Foreign countries Germany 844,085 660,745 Canada 428,447 406,985 Australia 15,499 16,765 1,288,031 1,084,495 $ 1,341,322 $ 1,135,631 In 2022, no single customer accounted for greater than 10 % of the Company’s total revenues (2021 – no customer; 2020 – no customer). |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Note 19. Financial Instruments and Fair Value Measurement Due to their short-term maturity, the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and other, approximates their fair value. The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of December 31, 2022 and December 31, 2021 were as follows: Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 141,075 $ — $ 141,075 Senior notes — 1,015,633 — 1,015,633 $ — $ 1,156,708 $ — $ 1,156,708 Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 22,874 $ — $ 22,874 Senior notes — 1,197,449 — 1,197,449 $ — $ 1,220,323 $ — $ 1,220,323 The carrying value of the revolving credit facilities classified as Level 2 approximates the fair value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities. The fair value of the senior notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company’s senior notes are not carried at fair value on the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. However, fair value disclosure is required. The carrying value of the Company’s senior notes, net of note issuance costs is $ 1,161,672 as of December 31, 2022 (December 31, 2021 – $ 1,159,097 ). Credit Risk The Company’s credit risk is primarily attributable to cash held in bank accounts and accounts receivable. The Company maintains cash balances in foreign financial institutions in excess of insured limits. The Company limits its credit exposure on cash held in bank accounts by periodically investing cash in excess of short-term operating requirements and debt obligations in low risk government bonds, or similar debt instruments. The Company’s credit risk associated with its sales is managed through setting credit limits, the purchase of credit insurance and for certain customers a letter of credit is received prior to shipping the product. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit. Concentrations of credit risk on its sales are with customers and agents based primarily in Germany, China and the U.S. The Company’s exposure to credit losses may increase if its customers' production and other costs are adversely affected by inflation. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company’s customers are adversely impacted by inflation. As of December 31, 2022, the Company has not had significant credit losses. The carrying amount of cash and cash equivalents as of December 31, 2022 of $ 354,032 and accounts receivable as of December 31, 2022 of $ 351,993 recorded in the Consolidated Balance Sheet, net of any allowances for losses, represents the Company’s maximum exposure to credit risk. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Commitments | Note 20. Lease Commitments The Company has finance leases primarily for railcars and production equipment. The railcars primarily have a remaining lease term of six to 11 years with annual renewal options thereafter. The production equipment has a weighted average remaining lease term of eight years . The Company has operating leases primarily for land to support the sandalwood tree plantations and for offices. The land leases have remaining terms of two to nine years with options to renew for up to 17 years . The office leases have remaining terms of one to seven years with options to renew up to five years . A majority of the operating leases are subject to annual changes to the Consumer Price Index (“CPI”). Changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. A 100 -basis-point increase in CPI would not have a material impact on lease costs. The components of lease expense for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Lease cost: Operating lease cost $ 6,130 $ 4,086 $ 3,712 Finance lease cost: Amortization of right-of-use assets 6,869 7,481 4,963 Interest on lease liabilities 1,429 1,635 1,460 Total lease cost $ 14,428 $ 13,202 $ 10,135 Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow payments for operating leases $ 6,130 $ 4,086 $ 3,712 Operating cash flow payments for finance leases $ 1,429 $ 1,635 $ 1,460 Financing cash flow payments for finance leases $ 10,003 $ 7,850 $ 4,636 Other information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Weighted average remaining lease term: Operating leases 5 years 5 years 6 years Finance leases 9 years 8 years 9 years Weighted average discount rate: Operating leases 5 % 6 % 6 % Finance leases 3 % 3 % 3 % The discount rate used to calculate the present value of the minimum lease payments is the incremental borrowing rate that the subsidiary entering into the lease would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Note 20. Lease Commitments (continued) Supplemental balance sheet information related to leases as of December 31, 2022 and December 31, 2021 was as follows: December 31, 2022 2021 Operating Leases Operating lease right-of-use assets $ 15,049 $ 9,712 Other current liabilities $ 5,255 $ 3,192 Operating lease liabilities 9,475 6,574 Total operating lease liabilities $ 14,730 $ 9,766 Finance Leases Property and equipment, gross $ 77,954 $ 87,719 Accumulated depreciation ( 28,290 ) ( 24,850 ) Property and equipment, net $ 49,664 $ 62,869 Other current liabilities $ 7,368 $ 8,467 Long-term debt 43,761 55,574 Total finance lease liabilities $ 51,129 $ 64,041 M aturities of operating lease liabilities as of December 31, 2022 were as follows: Operating 2023 $ 5,490 2024 3,908 2025 2,162 2026 1,404 2027 1,255 Thereafter 2,312 Total lease payments 16,531 Less: imputed interest ( 1,801 ) Total lease liability $ 14,730 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21. Commitments and Contingencies (a) In the normal course of business, the Company has entered into purchase obligations primarily for fiber. As of December 31, 2022 these commitments were as follows: Commitments 2023 $ 121,553 2024 58,312 2025 33,386 2026 700 2027 480 Thereafter 229 $ 214,660 (b) The Company is involved in legal actions and claims arising in the ordinary course of business. While the outcome of any legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claims which are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company. (c) The Company is subject to regulations that require the handling and disposal of asbestos in a prescribed manner if a property undergoes a major renovation or demolition. Otherwise, the Company is not required to remove asbestos from its facilities. Generally asbestos is found on steam and condensate piping systems as well as certain cladding on buildings and in building insulation throughout older facilities. The Company’s obligation for the proper removal and disposal of asbestos products from the Company’s mills is a conditional asset retirement obligation. As a result of the longevity of the Company’s mills, due in part to the maintenance procedures and the fact that the Company does not have plans for major changes that require the removal of asbestos, the timing of the asbestos removal is indeterminate. As a result, the Company is currently unable to reasonably estimate the fair value of its asbestos removal and disposal obligation. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. (d) In 2021, the European Commission opened a cartel investigation into the wood pulp sector in Europe to investigate if there was an infringement of European Union competition law. In October 2021, the Commission conducted inspections of major European pulp producers including the Company’s German operations. The Company is cooperating with the investigation. As the matter is currently in the investigation stage, the Company cannot predict the timing of the same and what further actions, if any, the European Commission may pursue or what the outcome of any such actions may be. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Background | Background Mercer International Inc. (“Mercer Inc.”) is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. Mercer Inc. owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50 % joint venture interest in a pulp mill in Canada, one sawmill in Germany and since acquiring the parent company of Holzindustrie Torgau KG ("Torgau") on September 30, 2022 it now owns one timber processing and value-add pallet production facility in Germany. The Company also owns a cross-laminated timber (“CLT”) facility located in Spokane, Washington called Mercer Mass Timber LLC ("Mercer Mass Timber"). In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars (“$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. |
Basis of Presentation | Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its subsidiaries (collectively, the “Company”). The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany balances and transactions have been eliminated upon consolidation. Mercer Inc. owns 100 % of its subsidiaries with the exception of the 50 % joint venture interest in the Cariboo Pulp & Paper Company (“CPP”) with West Fraser Mills Ltd., which is accounted for using the equity method. |
Use of Estimates | Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. |
Investments | Investments Investments in equity securities in which the Company does not exercise significant influence are measured at fair value through earnings. These securities are measured at fair value on a recurring basis, based upon Level 1 quoted market prices, with the unrealized and realized gains or losses included in “Other income” in the Consolidated Statements of Operations. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. The Company reviews the collectability of accounts receivable at each reporting date and maintains an allowance for doubtful accounts at an amount estimated to cover the expected losses on uninsured accounts receivable. Any amounts that are determined to be uncollectible and uninsured are offset against the allowance. The allowance is based on the Company’s evaluation of numerous factors, including the payment history, financial position of the debtors and current market conditions. The Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, obtaining letters of credit and setting credit limits prior to the sale. The Company reviews new customers' credit history before granting credit and conducts regular reviews of existing customers' credit. |
Inventories | Inventories Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value and are released from inventory on the same basis. Spare parts and other materials are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include pulp logs, sawlogs and wood chips. These inventories are located both at the mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of pulp logs, sawlogs and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. The amortization periods have been provided in the Property, Plant and Equipment, Net Note. The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant and equipment are capitalized. The Company capitalizes interest on borrowings during the construction period of major capital projects as part of the related asset. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is recognized as an expense in the Consolidated Statements of Operations as incurred. The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit adjusted risk-free interest rate. |
Impairment of Long-Lived Assets | Note 1. The Company and Summary of Significant Accounting Policies (continued) Impairment of Long-Lived Assets Long-lived assets include "Property, plant and equipment, net" and "Amortizable intangible assets, net". The unit of accounting for impairment testing for long-lived assets is its “Asset Group”, which includes the long-lived assets and liabilities directly related to those assets. The Company evaluates an Asset Group for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as continuing operating losses. When an indicator that the carrying value of an Asset Group may not be recoverable is triggered, the Company compares the carrying value of the Asset Group to its forecasted undiscounted future cash flows. If the carrying value of the Asset Group is greater than the undiscounted future cash flows an impairment charge is recorded based on the excess of the Asset Group’s carrying value over its fair value. |
Leases | Leases The Company determines if a contract contains a lease at inception. Leases are classified as either operating or finance leases. Leases with a term of less than 12 months are not recorded in the Consolidated Balance Sheets, and are expensed over the term of the lease in the Consolidated Statements of Operations. Operating and finance lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the term of the lease. Renewal and termination options are included in the lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, the Company uses the implicit rate when readily determinable, or the Company’s estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in the Consolidated Statements of Operations on a straight-line basis over the term of the lease. |
Government Grants | Government Grants The Company records grants from federal, provincial and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the cost of the assets in the Consolidated Balance Sheets and amortized over the same period as the related asset in “Cost of sales depreciation and amortization” in the Consolidated Statements of Operations. Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company’s normal business operations, and are reported as a reduction of related expenses in the Consolidated Statements of Operations. The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. Both the fees and the fee reduction are recognized in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. |
Amortizable Intangible Assets | Amortizable Intangible Assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. The amortization periods have been provided in the Amortizable Intangible Assets, Net Note. |
Goodwill | Goodwill Goodwill is from the acquisition of the Torgau facility. Goodwill is not amortized and is tested for impairment every year at August 31, or more frequently if events or changes in circumstances indicate a potential impairment loss. The impairment test of goodwill is performed at the reporting unit level. Goodwill is assigned to the solid wood segment for the purpose of impairment testing as this is the reporting unit that benefits from the synergies arising from the Torgau acquisition. The Company has the option to perform a qualitative assessment of goodwill in order to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company concludes that this is the case, it must perform the quantitative impairment test. Otherwise, the Company does not need to perform any further assessment. The quantitative impairment test compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the impairment charge recognized cannot exceed the carrying amount of goodwill. The Company typically uses a discounted cash flow model to determine the fair value of a reporting unit. The assumptions used in the model require estimating future sales volumes, selling prices and costs, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal forecasts. Unanticipated market and macroeconomic events and circumstances may occur and could affect the accuracy of management assumptions. Sensitivities of these assumptions are also performed. The Company completed a preliminary purchase price allocation as of September 30, 2022 that valued the goodwill on that date. As of December 31, 2022, management assessed the value of the goodwill for any events that occurred or changes in circumstances that would indicate impairment and concluded that there were none and therefore no impairment test was performed. |
Sandalwood Tree Plantations | Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost, which includes both the direct and indirect costs of growing and harvesting the sandalwood trees, and net realizable value. The cost of the sandalwood plantations is recognized in “Other long-term assets” and the cost of the harvested sandalwood is recognized in “Inventories” in the Consolidated Balance Sheets. The sandalwood tree plantations are carried at historical cost and are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may be higher than the net realizable value, such as a sustained drop in sales price. |
Pension Plans | Pension Plans The Company maintains defined benefit pension plans for its Peace River employees and its salaried employees at the Celgar mill which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected unit credit benefit method prorated on years of service. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of: (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10 % of the greater of the accrued benefit obligation and the fair value of plan assets as of the beginning of the year. The Company recognizes the net funded status of the plan. The Company also has a multiemployer pension plan and defined contribution plans for which contributions are expensed in the Consolidated Statements of Operations. |
Foreign Operations and Currency Translation | Foreign Operations and Currency Translation The Company determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions related to operating activities are included in “Cost of sales, excluding depreciation and amortization” while those related to non-operating activities are included in “Other income” in the Consolidated Statements of Operations. Where intercompany loans are of a long-term investment nature, exchange rate changes are included as a foreign currency translation adjustment within “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally this occurs with the transfer of control of the products sold. Transfer of control to the customer is based on the standardized shipping terms in the contract as this determines when the Company has the right to payment, the customer has legal title to the asset and the customer has the risks of ownership. Payment is due, and a receivable is recognized after control has transferred to the customer and revenue is recognized. Payment terms are defined in the contract as typically due within three months after control has transferred to the customer, and as such, the contracts do not have a significant financing component. The Company excludes value-added taxes, sales and other taxes it collects from its customers on behalf of third parties concurrent with revenue-producing activities from revenues. The Company may arrange shipping and handling activities as part of the sale of its products. The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than as an additional promised service. The following is a description of the principal activities from which the Company generates its revenues. For a breakdown of revenues by product and geographic location see the Segment Information Note. Pulp and Lumber Revenues For European sales sent by truck or train from the mills directly to the customer, the contracted sales terms are such that control transfers once the truck or train leaves the mill. For orders sent by ocean freighter, the contract terms state that control transfers at the time the product passes the ship’s rail. For North American sales shipped by truck or train, the contracts state that control transfers once the truck or train has arrived at the customer’s specified location. The transaction price is included in the sales contract and is net of customer discounts, rebates and other selling concessions. Note 1. The Company and Summary of Significant Accounting Policies (continued) The Company’s pulp sales are to tissue and paper producers and the Company’s lumber sales are to manufacturers and retailers. The Company’s sales in Europe and North America are direct to the customer. The Company’s pulp sales to overseas customers are primarily through third party sales agents and the Company’s lumber sales to overseas customers are either direct to the customer or through third party sales agents. The Company is the principal in all of the arrangements with third party sales agents. Energy Revenues Energy sales are to utility companies in Canada and Germany. Sales of energy are recognized as the electricity is consumed by the customer and is based on contractual usage rates and meter readings that measure electricity consumption. Pallet, Chemical, Biofuel and Wood Residual Revenues Pallet, chemical, biofuel and wood residual revenues sold from the German mills are sold primarily into the European market. Pallet and biofuel sales are sold to the end customer or to a trader. Chemical and wood residual sales are sold direct to the customer. These sales typically have shipping terms where control transfers once the product is loaded onto the truck at the mill. Mass Timber Revenues Mass timber includes CLT manufactured at Mercer Mass Timber. A mass timber sales contract will typically represent a single distinct performance obligation due to the highly interdependent and interrelated nature of the underlying goods and/or services provided. Mass timber contract revenue is recognized over the contract term as the work progresses because of the continuous transfer of control to the customer. The customer typically controls the work in process as evidenced by the Company's right to payment of the transaction price associated with work performed to date on products or services that do not have an alternative use to the Company. The accounting for the mass timber contracts involves a judgmental process of estimating total sales, costs and profit for the performance obligation. Cost of sales is recognized as incurred. The amount reported as revenues is determined by adding a proportionate amount of the estimated profit to the amount reported as cost of sales. Recognizing revenue as costs are incurred provides an objective measure of progress and thereby best depicts the extent of transfer of control to the customer. Changes in estimated revenues, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on the contract’s percentage-of-completion. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized in “Revenues” in the Consolidated Statements of Operations. Shipping and handling costs incurred by the Company are included in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations at the time the related revenue is recognized. |
Insurance Claims | Insurance Claims The Company records business interruption insurance proceeds once the insurance provider acknowledges that the claim is covered and agrees in writing to the amount to be paid for the claim. The Company reports business interruption insurance proceeds in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) The Company records insurance proceeds related to property up to the amount of the related impairment when it is probable they will be received. Proceeds in excess of the impairment are recorded once the insurance provider acknowledges that the claim is covered and agrees in writing to the amount to be paid for the claim. The Company reports property insurance proceeds in the same line item in which the related impairment was recognized in the Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense over an award’s requisite service period based on the award’s fair value in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. Under the 2022 Plan, each performance share unit ("PSU") provides the holder the right to receive upon vesting a common share of the Company, a cash payment or a combination of common shares or cash if certain market and/or performance goals established by the Company are met. The performance objective period is generally three years . The fair value of PSUs granted with a performance condition is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. The fair value of PSUs granted with a market and performance condition is estimated using a Monte Carlo simulation model using historical volatility and a risk-free interest rate. The Company estimates forfeitures of PSUs based on management’s expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. The fair value of restricted shares, restricted stock units ("RSUs"), and deferred stock units (“DSUs”) is determined based upon the number of shares or units granted and the quoted price of the Company’s common shares on the date of grant. The vesting period is generally one year . |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all deferred tax liabilities and assets are offset and presented as a single net amount. |
Derivative Financial Instruments | Derivative Financial Instruments The Company occasionally enters into derivative financial instruments to manage certain market risks. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value in the Consolidated Balance Sheets with the changes in fair value recognized in “Other income” in the Consolidated Statements of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. |
Fair Value Measurements | Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuations based on observable inputs in active markets for similar assets and liabilities, other than Level 1 prices, such as quoted commodity prices or interest or currency exchange rates. Level 3 – Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding in the period. Diluted net income (loss) per common share is calculated to give effect to all potentially dilutive common shares outstanding by applying the “Treasury Stock” and “If-Converted” methods. Instruments that could have a potentially dilutive effect on the Company’s weighted average shares outstanding include all or a portion of outstanding stock options, RSUs, DSUs, restricted shares, performance shares, PSUs and stock appreciation rights. |
Business Combinations | Business Combinations The Company uses the acquisition method in accounting for a business combination that meets the definition of a business. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. In developing estimates of fair market values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, discount rates, estimated replacement costs and depreciation and obsolescence factors. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Acquisition costs, as well as costs to integrate acquired companies, are expensed as incurred in the Consolidated Statements of Operations. |
New Accounting Pronouncements | New Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In March 2021, the intended cessation date of LIBOR in the United States was extended to June 30, 2023. Accordingly, ASU 2022-06 defers the expiration date of Topic 848 to December 31, 2024. As of December 31, 2022, the Company does not have any debt agreements that utilize LIBOR as one of the alternative applicable rates. Therefore, the Company does not believe that the discontinuation of LIBOR will have a material adverse effect on its financial position. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following summarizes the Company’s preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: Purchase Price Cash $ 6,592 Accounts receivable 13,202 Inventories 50,900 Other current assets 2,548 Property, plant and equipment 205,450 Amortizable intangible assets (a) 25,141 Goodwill (b) 28,274 Other long-term assets 3,934 Total assets acquired 336,041 Accounts payable and other current liabilities ( 43,905 ) Deferred income tax ( 26,451 ) Other long-term liabilities ( 2,489 ) Total liabilities assumed ( 72,845 ) Net assets acquired $ 263,196 (a) Amortizable intangible assets include an order backlog, which has an estimated fair value of $ 15,243 and is being amortized on a straight-line basis over six months and an energy sales agreement, which has an estimated fair value of $ 9,898 and is being amortized on a straight-line basis over 12 years. (b) The goodwill is primarily for expected synergies from combining the operations of Torgau with the Company’s existing German operations. The goodwill is not deductible for tax purposes. |
2022 Torgau Acquisition | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information represents the Company’s results of operations as if the acquisition of Torgau had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. For the Year Ended December 31, 2022 2021 Revenues $ 2,532,271 $ 2,071,896 Net income $ 295,066 $ 196,017 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Income | Other income for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: For the Year Ended December 31, 2022 2021 2020 Foreign exchange gain (loss) $ 17,975 $ 12,674 $ ( 13,797 ) Gain on sale of investments (a) 519 — 17,540 Other 5,940 1,725 2,135 Other income $ 24,434 $ 14,399 $ 5,878 (a) On April 4, 2022, the Company purchased a $ 75,000 term deposit, which was classified as held to maturity and reported at cost. The term deposit had an annual interest rate of 1.38 % and matured on October 4, 2022 . The proceeds were held as cash. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable Net | Accounts receivable, net as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, 2022 2021 Trade, net of allowance of $ 876 (2021 — $ 845 ) $ 296,192 $ 293,498 Insurance claims (a) — 37,953 Sales and income taxes receivable 40,240 6,709 Other 15,561 7,185 $ 351,993 $ 345,345 (a) Insurance claims receivable were for the final settlement of the 2021 Peace River boiler claims and included the remaining business interruption claim of C$ 40.0 million ($ 31,551 ) and the remaining property claim of C$ 8.1 million ($ 6,402 ). Subsequent to December 31, 2021, the insurance claims receivable were settled in full. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Net [Abstract] | |
Components of Inventories | Inventories as of December 31, 2022 and December 31, 2021, were comprised of the following: December 31, 2022 2021 Raw materials $ 160,442 $ 106,434 Finished goods 158,082 140,829 Spare parts and other 131,946 109,468 $ 450,470 $ 356,731 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net as of December 31, 2022 and December 31, 2021, was comprised of the following: Estimated Useful Lives December 31, (Years) 2022 2021 Land $ 90,202 $ 61,067 Buildings 10 - 50 354,048 309,039 Production and other equipment 5 - 25 2,243,571 2,079,801 2,687,821 2,449,907 Less: accumulated depreciation ( 1,346,499 ) ( 1,314,276 ) $ 1,341,322 $ 1,135,631 |
Amortizable Intangible Assets_2
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Amortizable Intangible Assets Net | Amortizable intangible assets, net as of December 31, 2022 and December 31, 2021, were comprised of the following: Estimated December 31, 2022 December 31, 2021 Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Energy sales agreements 11 - 12 $ 26,884 $ ( 8,590 ) $ 18,294 $ 17,047 $ ( 7,327 ) $ 9,720 Timber cutting rights 30 37,175 ( 5,032 ) 32,143 39,714 ( 4,051 ) 35,663 Order backlog 0.5 16,678 ( 8,339 ) 8,339 — — — Software and other intangible assets 5 26,977 ( 24,256 ) 2,721 27,376 ( 24,857 ) 2,519 $ 107,714 $ ( 46,217 ) $ 61,497 $ 84,137 $ ( 36,235 ) $ 47,902 |
Schedule of Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets as of December 31, 2022 is expected to be as follows: 2023 2024 2025 2026 2027 Amortization expense $ 12,888 $ 4,312 $ 4,022 $ 3,763 $ 3,665 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Long-Term Assets | Other long-term assets as of December 31, 2022 and December 31, 2021, were comprised of the following: December 31, 2022 2021 Sandalwood tree plantations $ 32,556 $ 30,731 German carbon certificates 10,680 5,453 Other 4,789 2,534 $ 48,025 $ 38,718 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, 2022 2021 Trade payables $ 92,848 $ 58,451 Accrued expenses 95,798 76,409 Interest payable 26,756 26,506 Income tax payable 99,827 56,241 Payroll-related accruals 34,353 20,707 Wastewater fee (a) 8,614 19,248 Finance lease liability 7,368 8,467 Operating lease liability 5,255 3,192 Government grants (b) 1,181 7,302 Other 5,306 5,784 $ 377,306 $ 282,307 (a) The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. Reduction to the wastewater fee for the year ended December 31, 2022 was $ 12,847 (2021 – $ nil ; 2020 – $ nil ). (b) The Canadian mills have a liability for unspent government grants which are required to be used to partially finance greenhouse gas emission reduction and innovation capital projects. The grants are recognized in “Cash and cash equivalents” in the Consolidated Balance Sheets, however, they are considered to be restricted as they are repayable if the mills do not spend the funds on approved projects. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of December 31, 2022 and December 31, 2021, was comprised of the following: December 31, Maturity 2022 2021 Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 300 million German joint revolving credit facility (b) 2027 109,326 — C$ 160 million Canadian joint revolving credit facility (c) 2027 31,749 — C$ 60 million Peace River revolving credit facility (c) — 22,874 C$ 60 million Celgar revolving credit facility (c) — — € 2.6 million demand loan (d) — — Finance lease liability 51,129 64,041 1,367,204 1,261,915 Less: unamortized senior note issuance costs ( 13,328 ) ( 15,903 ) Less: finance lease liability due within one year ( 7,368 ) ( 8,467 ) $ 1,346,508 $ 1,237,545 (a) In January 2021, the Company issued $ 875,000 in aggregate principal amount of 5.125 % senior notes which mature on February 1, 2029 (the “2029 Senior Notes”). The net proceeds from the 2029 Senior Notes issuance were $ 860,517 after deducting the underwriter’s discount and offering expenses. The net proceeds were used to redeem the outstanding senior notes which were to mature in 2024 and 2025 and for general corporate purposes. In connection with the redemption, the Company recorded a loss on early extinguishment of debt of $ 30,368 in the Consolidated Statements of Operations. The 2029 Senior Notes and the senior notes which mature on January 15, 2026 (the “2026 Senior Notes” and collectively with the 2029 Senior Notes, the “Senior Notes”) are general unsecured senior obligations of the Company. The Company may redeem all or a part of the Senior Notes upon not less than 10 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the Senior Notes: 2026 Senior Notes 2029 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage January 15, 2022 101.375 % February 1, 2024 102.563 % January 15, 2023 and thereafter 100.000 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % (b) A € 300.0 million joint revolving credit facility for the German mills that matures in September 2027. Borrowings under the new facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.30 % to 2.25 % dependent on conditions including but not limited to a prescribed leverage ratio. The facility is sustainability-linked whereby the interest rate margin is subject to upward or downward adjustments of up to 0.05 % per annum if the Company achieves, or fails to achieve, certain specified sustainability targets. As of December 31, 2022, approximately € 102.5 million ($ 109,326 ) of this facility was drawn and accruing interest at a rate of 3.193 % , approximately € 13.5 million ($ 14,433 ) was supporting bank guarantees and approximately € 184.0 million ($ 196,220 ) was available. (c) A C$ 160.0 million joint revolving credit facility for the Celgar mill, Peace River mill and certain other Canadian subsidiaries that matures in January 2027. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.20 % to 1.45 % per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50 %, an Adjusted Term SOFR for a one month tenor plus 1.00 % and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of December 31, 2022, approximately C$ 43.0 million ($ 31,749 ) of this facility was drawn and accruing interest at a rate of 6.034 %, approximately C$ 1.3 million ($ 970 ) was supporting letters of credit and approximately C$ 115.7 million ($ 85,415 ) was available. The facility replaced the Peace River and Celgar C$ 60.0 million revolving credit facilities. (d) A € 2.6 million demand loan for Rosenthal that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of December 31, 2022, approximately € 2.6 million ($ 2,722 ) of this facility was supporting bank guarantees and approximately $ nil was available. |
Principal Maturities of Debt | The maturities of the principal portion of debt as of December 31, 2022 were as follows: Senior Notes and Credit Arrangements Finance Leases 2023 $ — $ 8,597 2024 — 7,825 2025 — 6,954 2026 300,000 6,879 2027 141,075 6,879 Thereafter 875,000 18,690 1,316,075 55,824 Less imputed interest — ( 4,695 ) Total payments $ 1,316,075 $ 51,129 |
Debt Redemption Period for Outstanding Senior Notes | The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the Senior Notes: 2026 Senior Notes 2029 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage January 15, 2022 101.375 % February 1, 2024 102.563 % January 15, 2023 and thereafter 100.000 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % |
Pension And Other Post-Retire_2
Pension And Other Post-Retirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Information about the Celgar and Peace River defined benefit plans, in aggregate for the year ended December 31, 2022 was as follows: 2022 Pension Other Post- Total Change in benefit obligation Benefit obligation, December 31, 2021 $ 125,975 $ 13,339 $ 139,314 Service cost 3,553 191 3,744 Interest cost 3,756 410 4,166 Benefit payments, net ( 4,163 ) ( 534 ) ( 4,697 ) Actuarial gains ( 28,292 ) ( 2,960 ) ( 31,252 ) Foreign currency exchange rate changes ( 6,699 ) ( 434 ) ( 7,133 ) Benefit obligation, December 31, 2022 94,130 10,012 104,142 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2021 121,381 — 121,381 Actual returns ( 17,654 ) — ( 17,654 ) Contributions 2,942 — 2,942 Benefit payments ( 4,037 ) — ( 4,037 ) Foreign currency exchange rate changes ( 7,026 ) — ( 7,026 ) Fair value of plan assets, December 31, 2022 95,606 — 95,606 Funded status, December 31, 2022 $ 1,476 $ ( 10,012 ) $ ( 8,536 ) Components of the net benefit cost recognized Service cost $ 3,553 $ 191 $ 3,744 Interest cost 3,756 410 4,166 Expected return on plan assets ( 5,800 ) — ( 5,800 ) Amortization of unrecognized item s 290 ( 692 ) ( 402 ) Net benefit cost $ 1,799 $ ( 91 ) $ 1,708 Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) Information about the Celgar and Peace River defined benefit plans, in aggregate for the year ended December 31, 2021 was as follows: 2021 Pension Other Post- Total Change in benefit obligation Benefit obligation, December 31, 2020 $ 128,854 $ 14,234 $ 143,088 Service cost 3,942 303 4,245 Interest cost 3,524 391 3,915 Benefit payments, net ( 4,231 ) ( 531 ) ( 4,762 ) Actuarial gains ( 6,701 ) ( 1,130 ) ( 7,831 ) Foreign currency exchange rate changes 587 72 659 Benefit obligation, December 31, 2021 125,975 13,339 139,314 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2020 110,476 — 110,476 Actual returns 9,315 — 9,315 Contributions 4,258 — 4,258 Benefit payments ( 4,098 ) — ( 4,098 ) Foreign currency exchange rate changes 1,430 — 1,430 Fair value of plan assets, December 31, 2021 121,381 — 121,381 Funded status, December 31, 2021 $ ( 4,594 ) $ ( 13,339 ) $ ( 17,933 ) Components of the net benefit cost recognized Service cost $ 3,942 $ 303 $ 4,245 Interest cost 3,524 391 3,915 Expected return on plan assets ( 5,216 ) — ( 5,216 ) Amortization of unrecognized items 678 ( 791 ) ( 113 ) Net benefit cost $ 2,928 $ ( 97 ) $ 2,831 |
Estimated Future Benefit Payments | Estimated future benefit payments under these plans as of December 31, 2022 were as follows: Pension Other Post-Retirement 2023 $ 4,789 $ 540 2024 $ 5,059 $ 566 2025 $ 5,354 $ 586 2026 $ 5,569 $ 604 2027 $ 5,747 $ 622 2028-2032 $ 31,012 $ 3,373 |
Summary of Key Assumptions | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2022, 2021 and 2020 were as follows for Celgar’s defined benefit plan: For the Year Ended December 31, 2022 2021 2020 Benefit obligations Discount rate 5.00 % 3.10 % 2.55 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.10 % 2.70 % 3.00 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 3.60 % 4.00 % 4.10 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2022, 2021 and 2020 were as follows for Peace River’s defined benefit plan: For the Year Ended December 31, 2022 2021 2020 Benefit obligations Discount rate 5.00 % 3.10 % 2.70 % Rate of compensation increase 2.75 % 2.75 % 2.75 % Net benefit cost for year ended Discount rate 3.10 % 2.70 % 3.20 % Rate of compensation increase 2.75 % 2.75 % 2.75 % Expected rate of return on plan assets 5.48 % 4.93 % 4.68 % |
Schedule of Assumed Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the other post-retirement benefit obligations as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 Health care cost trend rate assumed for next year 4.75 % 4.50 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.00 % 4.50 % Year that the rate reaches the ultimate trend rate 2026 2022 |
Schedule of Defined Benefit Pension Plans' Assets Fair Value Measurements | The following table presents the Celgar and Peace River defined benefit pension plans’ assets fair value measurements as of December 31, 2022 under the fair value hierarchy: Fair value measurements as of December 31, 2022 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ — $ 52,640 $ — $ 52,640 Debt securities — 23,071 — 23,071 Buy-in annuity — — 18,402 18,402 Other — 1,493 — 1,493 Total assets $ — $ 77,204 $ 18,402 $ 95,606 The following table presents the Celgar and Peace River defined benefit pension plans’ assets fair value measurements as of December 31, 2021 under the fair value hierarchy: Fair value measurements as of December 31, 2021 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ — $ 64,057 $ — $ 64,057 Debt securities — 31,125 — 31,125 Buy-in annuity — — 24,458 24,458 Other — 1,741 — 1,741 Total assets $ — $ 96,923 $ 24,458 $ 121,381 |
Schedule of Change In Level 3 Fair value Measurements of Plan Assets | The change in Level 3 fair value measurements of plan assets for the years ended December 31, 2022 and 2021 was as follows: Buy-in Annuity Balance as of December 31, 2020 $ 26,017 Actual return on plan assets 645 Benefit payments ( 1,789 ) Actuarial gains ( 545 ) Effect of foreign currency exchange rate changes 130 Balance as of December 31, 2021 24,458 Actual return on plan assets 623 Benefit payments ( 1,709 ) Actuarial gains ( 3,589 ) Effect of foreign currency exchange rate changes ( 1,381 ) Balance as of December 31, 2022 $ 18,402 |
Schedule of Multiemployer Plan | Note 12. Pension and Other Post-Retirement Benefit Obligations (continued) Plan details for the years ended December 31, 2022, 2021 and 2020 were as follows: Provincially Registered Plan Expiration Date of Collective Bargaining Are the Company's Contributions Greater Than 5% of Total Contributions Legal name Number Agreement 2022 2021 2020 The Pulp and Paper Industry Pension Plan P085324 April 30, 2025 Yes Yes No |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of i ncome (loss) before income taxes for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 U.S. $ ( 75,566 ) $ ( 75,955 ) $ ( 22,284 ) Foreign 420,869 336,522 11,145 $ 345,303 $ 260,567 $ ( 11,139 ) |
Schedule of Provision for Income Taxes Recognized in Consolidated Statements of Operations | Provision for income taxes recognized in the Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 was comprised of the following: For the Year Ended December 31, 2022 2021 2020 U.S. Federal and State current income tax provision $ 297 $ 156 $ 1,782 Foreign current income tax provision 90,964 70,632 19,563 Total current income tax provision 91,261 70,788 21,345 Foreign deferred income tax provision (recovery) 7,003 18,791 ( 15,249 ) Total income tax provision $ 98,264 $ 89,579 $ 6,096 |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal statutory and the Company’s effective rates for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 U.S. Federal statutory rate 21 % 21 % 21 % U.S. Federal statutory rate on income (loss) before income taxes $ ( 72,570 ) $ ( 54,724 ) $ 2,339 Tax differential on foreign income ( 30,054 ) ( 25,361 ) ( 1,982 ) Effect of foreign earnings (a) ( 5,329 ) ( 7,524 ) ( 3,002 ) Valuation allowance 4,311 ( 12,048 ) ( 8,383 ) Tax benefit of partnership structure 3,132 3,132 3,740 Non-taxable foreign subsidies 2,704 2,936 2,851 True-up of prior year taxes 199 5,616 ( 1,863 ) Other ( 657 ) ( 1,606 ) 204 Income tax provision $ ( 98,264 ) $ ( 89,579 ) $ ( 6,096 ) (a) Primarily due to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017 . |
Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities as of December 31, 2022 and December 31, 2021 were comprised of the following: December 31, 2022 2021 German tax loss carryforwards $ 7,946 $ 9,500 U.S. tax loss carryforwards and credits 32,012 22,168 Canadian tax loss carryforwards 14,107 40,363 Australian tax loss carryforwards 6,580 5,090 Basis difference between income tax and financial reporting with respect to operating pulp mills ( 160,561 ) ( 146,000 ) Amortizable intangible assets ( 8,826 ) ( 9,449 ) Other long-term assets ( 6,986 ) ( 5,646 ) Debt ( 5,183 ) ( 5,691 ) Accounts payable and accrued expenses 4,765 5,382 Deferred pension liability 2,997 6,341 Finance leases 14,881 17,245 Scientific research and experimental development investment tax credit and expenditure pool 3,119 4,552 Other 8,069 5,389 ( 87,080 ) ( 50,756 ) Valuation allowance ( 38,879 ) ( 43,190 ) Net deferred income tax liability $ ( 125,959 ) $ ( 93,946 ) Comprised of: Deferred income tax asset $ — $ 1,177 Deferred income tax liability ( 125,959 ) ( 95,123 ) Net deferred income tax liability $ ( 125,959 ) $ ( 93,946 ) |
Summary of Investment Tax Credit and Other Tax Attributes Carryforwards | The following table details the scheduled expiration dates of the Company’s net operating loss, interest, investment tax credit and other tax attributes carryforwards as of December 31, 2022: Amount Expiration U.S. Interest $ 152,400 Indefinite Germany Interest $ 27,792 Indefinite Canada Net operating loss $ 50,000 2036 – 2041 Scientific research and experimental development investment tax credit $ 4,500 2030 – 2039 Australia Net operating loss $ 21,900 Indefinite |
Summary of Changes in Valuation Allowance | Changes in valuation allowances related to net deferred tax assets for the years ended December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Balance as of January 1 $ 43,190 $ 31,142 Additions (reversals) U.S. 10,839 14,770 Canada ( 15,926 ) ( 2,851 ) The impact of changes in foreign exchange rates 776 129 Balance as of December 31 $ 38,879 $ 43,190 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders Equity [Line Items] | |
Summary of Dividends Declared | The Company’s board of directors declared quarterly dividends during the years ended December 31, 2022 and 2021 as follows: Date Declared Dividend Per Amount February 17, 2022 $ 0.075 $ 4,960 April 28, 2022 0.075 4,962 July 28, 2022 0.075 4,963 October 27, 2022 0.075 4,962 $ 0.3000 $ 19,847 Date Declared Dividend Per Amount February 16, 2021 $ 0.065 $ 4,289 April 29, 2021 0.065 4,293 July 29, 2021 0.065 4,292 October 28, 2021 0.065 4,293 $ 0.2600 $ 17,167 |
Performance Share Units | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | PSU activity during the year ended December 31, 2022 was as follows: Number of PSUs Weighted Average Outstanding as of January 1, 2022 2,754,472 $ 12.98 Granted 1,709,688 13.61 Vested and issued ( 94,940 ) 15.34 Forfeited ( 885,066 ) 14.36 Outstanding as of December 31, 2022 3,484,154 $ 12.87 |
Restricted Stock Restricted Stock Units and Deferred Stock Units [Member] | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | Restricted share, RSU and DSU activity during the year ended December 31, 2022 was as follows: Number of Restricted Shares Number of RSUs Number of DSUs Weighted Average Outstanding as of January 1, 2022 49,195 — — $ 14.84 Granted 34,699 50,000 16,048 15.65 Vested ( 49,195 ) — ( 4,494 ) 14.92 Outstanding as of December 31, 2022 34,699 50,000 11,554 $ 15.64 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The reconciliation of basic and diluted net income (loss) per common share for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Year Ended December 31, 2022 2021 2020 Net income (loss) Basic and diluted $ 247,039 $ 170,988 $ ( 17,235 ) Net income (loss) per common share Basic $ 3.74 $ 2.59 $ ( 0.26 ) Diluted $ 3.71 $ 2.58 $ ( 0.26 ) Weighted average number of common shares outstanding: Basic (a) 66,100,040 65,944,494 65,768,485 Effect of dilutive instruments: PSUs 468,931 312,455 — Restricted shares 17,842 27,054 — RSUs 11,886 — — DSUs 3,687 — — Diluted 66,602,386 66,284,003 65,768,485 (a) For the year ended December 31, 2022, the basic weighted average number of common shares outstanding excludes 34,699 restricted shares which have been issued, but have not vested as of December 31, 2022 (2021 – 49,195 restricted shares; 2020 – 68,140 restricted shares). |
Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share | Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the years ended December 31, 2022, 2021 and 2020 were as follows: For the Year Ended December 31, 2022 2021 2020 PSUs — — 2,364,848 Restricted shares — — 68,140 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Change in Accumulated Other Comprehensive Loss by Components | The change in accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2022, 2021 and 2020 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Balance as of December 31, 2019 $ ( 114,709 ) $ ( 1,851 ) $ ( 116,560 ) Other comprehensive income (loss) before reclassifications 95,131 ( 6,114 ) 89,017 Amounts reclassified — ( 32 ) ( 32 ) Other comprehensive income (loss) 95,131 ( 6,146 ) 88,985 Balance as of December 31, 2020 ( 19,578 ) ( 7,997 ) ( 27,575 ) Other comprehensive income (loss) before reclassifications ( 77,939 ) 14,834 ( 63,105 ) Amounts reclassified — ( 113 ) ( 113 ) Other comprehensive income (loss) ( 77,939 ) 14,721 ( 63,218 ) Balance as of December 31, 2021 ( 97,517 ) 6,724 ( 90,793 ) Other comprehensive income (loss) before reclassifications ( 97,568 ) 8,801 ( 88,767 ) Amounts reclassified — ( 402 ) ( 402 ) Other comprehensive income (loss) ( 97,568 ) 8,399 ( 89,169 ) Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the years ended December 31, 2022, 2021 and 2020, was as follows: December 31, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 Operating income (loss) $ 340,664 $ 70,642 $ ( 18,938 ) $ 392,368 Depreciation and amortization $ 112,058 $ 31,170 $ 925 $ 144,153 Purchase of property, plant and equipment $ 146,635 $ 31,190 $ 917 $ 178,742 Total assets (a) $ 1,768,628 $ 613,171 $ 343,238 $ 2,725,037 Revenues by major products Pulp $ 1,686,370 $ — $ — $ 1,686,370 Lumber — 288,002 — 288,002 Energy and chemicals 179,747 25,653 6,362 211,762 Manufactured products (b) — 22,759 — 22,759 Pallets — 36,063 — 36,063 Biofuels (c) — 17,691 — 17,691 Wood residuals — 18,290 — 18,290 Total revenues $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 Revenues by geographical markets (d) U.S. $ 236,862 $ 177,917 $ 1,329 $ 416,108 Foreign countries Germany 553,935 142,846 392 697,173 China 495,668 1,774 — 497,442 Other countries 579,652 85,921 4,641 670,214 1,629,255 230,541 5,033 1,864,829 Total revenues $ 1,866,117 $ 408,458 $ 6,362 $ 2,280,937 (a) Total assets for the pulp segment includes the Company’s $ 45,635 investment in joint ventures, primarily for the CPP mill. Total assets for the solid wood segment includes $ 30,937 of goodwill from the acquisition of Torgau. (b) Manufactured products primarily includes CLT and finger joint lumber. (c) Biofuels includes pellets and briquettes. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 18. Segment Information (continued) December 31, 2021 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 Operating income (loss) $ 251,724 $ 106,092 $ ( 11,233 ) $ 346,583 Depreciation and amortization $ 115,293 $ 15,784 $ 1,122 $ 132,199 Purchase of property, plant and equipment $ 139,312 $ 19,379 $ 749 $ 159,440 Total assets (a) $ 1,882,078 $ 313,354 $ 155,800 $ 2,351,232 Revenues by major products Pulp $ 1,389,439 $ — $ — $ 1,389,439 Lumber — 293,166 — 293,166 Energy and chemicals 93,654 11,547 6,690 111,891 Manufactured products (b) — 2,391 — 2,391 Wood residuals — 6,368 — 6,368 Total revenues $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 Revenues by geographical markets (c) U.S. $ 183,198 $ 159,153 $ 2,836 $ 345,187 Foreign countries Germany 459,725 62,986 — 522,711 China 375,891 1,245 — 377,136 Other countries 464,279 90,088 3,854 558,221 1,299,895 154,319 3,854 1,458,068 Total revenues $ 1,483,093 $ 313,472 $ 6,690 $ 1,803,255 (a) Total assets for the pulp segment includes the Company’s $ 49,651 investment in joint ventures, primarily for the CPP mill. (b) Manufactured products primarily includes finger joint lumber. (c) Sales are attributed to countries based on the ship – to location provided by the customer. Note 18. Segment Information (continued) December 31, 2020 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 Operating income (loss) $ 37,952 $ 34,704 $ ( 8,927 ) $ 63,729 Depreciation and amortization $ 115,945 $ 12,212 $ 764 $ 128,921 Purchase of property, plant and equipment $ 53,734 $ 23,788 $ 996 $ 78,518 Total assets (a) $ 1,740,233 $ 112,267 $ 276,626 $ 2,129,126 Revenues by major products Pulp $ 1,130,302 $ — $ — $ 1,130,302 Lumber — 180,769 — 180,769 Energy and chemicals 90,342 10,619 4,847 105,808 Wood residuals — 6,261 — 6,261 Total revenues $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 Revenues by geographical markets (b) U.S. $ 149,816 $ 93,802 $ 1,734 $ 245,352 Foreign countries Germany 336,346 50,945 — 387,291 China 364,527 3,037 — 367,564 Other countries 369,955 49,865 3,113 422,933 1,070,828 103,847 3,113 1,177,788 Total revenues $ 1,220,644 $ 197,649 $ 4,847 $ 1,423,140 (a) Total assets for the pulp segment includes the Company’s $ 46,429 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. |
Schedule of Long Lived Assets by Geographic Area | The Company’s long-lived assets by geographic area based on the location of the assets as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 U.S. $ 53,291 $ 51,136 Foreign countries Germany 844,085 660,745 Canada 428,447 406,985 Australia 15,499 16,765 1,288,031 1,084,495 $ 1,341,322 $ 1,135,631 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of the Outstanding Debt | The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of December 31, 2022 and December 31, 2021 were as follows: Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 141,075 $ — $ 141,075 Senior notes — 1,015,633 — 1,015,633 $ — $ 1,156,708 $ — $ 1,156,708 Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 22,874 $ — $ 22,874 Senior notes — 1,197,449 — 1,197,449 $ — $ 1,220,323 $ — $ 1,220,323 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Lease cost: Operating lease cost $ 6,130 $ 4,086 $ 3,712 Finance lease cost: Amortization of right-of-use assets 6,869 7,481 4,963 Interest on lease liabilities 1,429 1,635 1,460 Total lease cost $ 14,428 $ 13,202 $ 10,135 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow payments for operating leases $ 6,130 $ 4,086 $ 3,712 Operating cash flow payments for finance leases $ 1,429 $ 1,635 $ 1,460 Financing cash flow payments for finance leases $ 10,003 $ 7,850 $ 4,636 |
Other Information Related to Leases | Other information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 Weighted average remaining lease term: Operating leases 5 years 5 years 6 years Finance leases 9 years 8 years 9 years Weighted average discount rate: Operating leases 5 % 6 % 6 % Finance leases 3 % 3 % 3 % |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of December 31, 2022 and December 31, 2021 was as follows: December 31, 2022 2021 Operating Leases Operating lease right-of-use assets $ 15,049 $ 9,712 Other current liabilities $ 5,255 $ 3,192 Operating lease liabilities 9,475 6,574 Total operating lease liabilities $ 14,730 $ 9,766 Finance Leases Property and equipment, gross $ 77,954 $ 87,719 Accumulated depreciation ( 28,290 ) ( 24,850 ) Property and equipment, net $ 49,664 $ 62,869 Other current liabilities $ 7,368 $ 8,467 Long-term debt 43,761 55,574 Total finance lease liabilities $ 51,129 $ 64,041 |
Schedule of Maturities of Operating Lease Liabilities | M aturities of operating lease liabilities as of December 31, 2022 were as follows: Operating 2023 $ 5,490 2024 3,908 2025 2,162 2026 1,404 2027 1,255 Thereafter 2,312 Total lease payments 16,531 Less: imputed interest ( 1,801 ) Total lease liability $ 14,730 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligations Commitments | the Company has entered into purchase obligations primarily for fiber. As of December 31, 2022 these commitments were as follows: Commitments 2023 $ 121,553 2024 58,312 2025 33,386 2026 700 2027 480 Thereafter 229 $ 214,660 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Additional Information (Details) - Mill | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of pulp mills | 4 | |
Ownership percentage in subsidiaries | 100% | |
Net actuarial gain (loss) percent that is exceeded for amortization | 10% | |
Performance Share Units | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Vesting period | 3 years | |
RSUs | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Vesting period | 1 year | |
Canada | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of pulp mills | 2 | |
Germany | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of pulp mills | 2 | |
Number of sawmills | 1 | |
Number of timber processing and value-add pallet production facility | 1 | |
MPR - CPP | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Ownership percentage | 50% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands, € in Millions | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Aug. 05, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Acquiree revenues | $ 2,280,937 | $ 1,803,255 | $ 1,423,140 | |||
Acquiree net income | 247,039 | $ 170,988 | $ (17,235) | |||
Mercer Mass Timber | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Aug. 05, 2021 | |||||
Payments to acquire business facility | $ 51,258 | |||||
Acquisition related costs | $ 1,258 | |||||
2022 Torgau Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Sep. 30, 2022 | Sep. 30, 2022 | ||||
Payments to acquire business for cash | $ 263,196 | € 270 | ||||
Business acquisition ownership interest | 100% | 100% | ||||
Acquiree revenues | 64,364 | |||||
Acquiree net income | (13,450) | |||||
2022 Torgau Acquisition | Selling, General and Administrative Expenses | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 1,945 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Purchase Price Allocation | |||
Goodwill | $ 30,937 | $ 0 | |
2022 Torgau Acquisition | |||
Purchase Price Allocation | |||
Cash | $ 6,592 | ||
Accounts receivable | 13,202 | ||
Inventories | 50,900 | ||
Other current assets | 2,548 | ||
Property, plant and equipment | 205,450 | ||
Amortizable intangible assets | 25,141 | ||
Goodwill | 28,274 | ||
Other long-term assets | 3,934 | ||
Total assets acquired | 336,041 | ||
Accounts payable and other current liabilities | (43,905) | ||
Deferred income tax | (26,451) | ||
Other long-term liabilities | (2,489) | ||
Total liabilities assumed | (72,845) | ||
Net assets acquired | $ 263,196 |
Acquisitions - Summary of Pre_2
Acquisitions - Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | |
Order Backlog | ||
Business Acquisition [Line Items] | ||
Year of acquisition realized | 6 months | |
2022 Torgau Acquisition | Order Backlog | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets | $ 15,243 | |
Year of acquisition realized | 6 months | |
2022 Torgau Acquisition | Energy Sales Agreements | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets | $ 9,898 | |
Year of acquisition realized | 12 years |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Information (Details) - 2022 Torgau Acquisition - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 2,532,271 | $ 2,071,896 |
Net income | $ 295,066 | $ 196,017 |
Business Interruption Insuran_2
Business Interruption Insurance - Additional Information (Details) $ in Thousands, € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2021 CAD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Proceeds from property insurance | $ 8,616 | $ 21,540 | $ 0 | |||
Insurance settlement receivable | 31,551 | $ 40 | ||||
Cost of Sales, Excluding Depreciation and Amortization | Stendal fire | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Proceeds from property insurance | 2,206 | € 2.1 | ||||
Business interruption insurance claim settlement amount | $ 15,143 | € 14.4 | ||||
Cost of Sales, Excluding Depreciation and Amortization | Peace river boiler | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Business interruption insurance claim settlement amount | $ 34,303 | $ 43 |
Other Income - Schedule of Othe
Other Income - Schedule of Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |||
Foreign exchange gain (loss) | $ 17,975 | $ 12,674 | $ (13,797) |
Gain on sale of investments | 519 | 0 | 17,540 |
Other | 5,940 | 1,725 | 2,135 |
Other income | $ 24,434 | $ 14,399 | $ 5,878 |
Other Income - Schedule of Ot_2
Other Income - Schedule of Other Income (Parenthetical) (Details) $ in Thousands | Apr. 04, 2022 USD ($) |
Other Income And Expenses [Abstract] | |
Term deposit | $ 75,000 |
Term deposit annual interest rate | 1.38% |
Term deposit maturity date | Oct. 04, 2022 |
Other Income - Additional Infor
Other Income - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |||
Purchase of equity security investments | $ 75,000 | $ 0 | $ 9,370 |
Sale of equity security investments | 75,519 | 0 | 26,910 |
Gain on sale of investments | $ 519 | $ 0 | $ 17,540 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable [Line Items] | ||
Accounts receivable, net | $ 351,993 | $ 345,345 |
Insurance claims | 37,953 | |
Sales and income taxes receivable | 40,240 | 6,709 |
Trade accounts receivable | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, net | 296,192 | 293,498 |
Other non-trade receivables | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, net | $ 15,561 | $ 7,185 |
Accounts Receivable, Net - Sc_2
Accounts Receivable, Net - Schedule of Accounts Receivable Net (Parenthetical) (Details) $ in Thousands, $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) |
Accounts Receivable [Line Items] | |||
Insurance claims receivable | $ 37,953 | ||
Peace River Boiler Claims and Business Interruption Claim | |||
Accounts Receivable [Line Items] | |||
Insurance claims receivable | 31,551 | $ 40 | |
Property Claims | |||
Accounts Receivable [Line Items] | |||
Insurance claims receivable | 6,402 | $ 8.1 | |
Trade accounts receivable | |||
Accounts Receivable [Line Items] | |||
Allowance | $ 876 | $ 845 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Net [Abstract] | ||
Raw materials | $ 160,442 | $ 106,434 |
Finished goods | 158,082 | 140,829 |
Spare parts and other | 131,946 | 109,468 |
Inventories | $ 450,470 | $ 356,731 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,687,821 | $ 2,449,907 |
Less: accumulated depreciation | (1,346,499) | (1,314,276) |
Property, plant and equipment, net | 1,341,322 | 1,135,631 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 90,202 | 61,067 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 354,048 | 309,039 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 50 years | |
Production and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,243,571 | $ 2,079,801 |
Production and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 5 years | |
Production and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 25 years |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |||
Government grants received amount | $ 1,067 | $ 9,333 | |
Unamortized Government Grants | 144,096 | 164,439 | |
Amortization expense related to government grants | 18,103 | 19,855 | $ 18,369 |
Asset retirement obligation | $ 11,892 | $ 12,529 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets, Net - Schedule of Amortizable Intangible Assets Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets [Line Items] | ||
Gross Carrying Amount | $ 107,714 | $ 84,137 |
Accumulated Amortization | (46,217) | (36,235) |
Net | 61,497 | 47,902 |
Energy Sales Agreements | ||
Intangible assets [Line Items] | ||
Gross Carrying Amount | 26,884 | 17,047 |
Accumulated Amortization | (8,590) | (7,327) |
Net | $ 18,294 | 9,720 |
Energy Sales Agreements | Minimum | ||
Intangible assets [Line Items] | ||
Useful Lives (Years) | 11 years | |
Energy Sales Agreements | Maximum | ||
Intangible assets [Line Items] | ||
Useful Lives (Years) | 12 years | |
Timber cutting rights | ||
Intangible assets [Line Items] | ||
Gross Carrying Amount | $ 37,175 | 39,714 |
Accumulated Amortization | (5,032) | (4,051) |
Net | $ 32,143 | 35,663 |
Useful Lives (Years) | 30 years | |
Order backlog | ||
Intangible assets [Line Items] | ||
Gross Carrying Amount | $ 16,678 | 0 |
Accumulated Amortization | (8,339) | 0 |
Net | $ 8,339 | 0 |
Useful Lives (Years) | 6 months | |
Software and Other Intangible Assets | ||
Intangible assets [Line Items] | ||
Gross Carrying Amount | $ 26,977 | 27,376 |
Accumulated Amortization | (24,256) | (24,857) |
Net | $ 2,721 | $ 2,519 |
Useful Lives (Years) | 5 years |
Amortizable Intangible Assets_4
Amortizable Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 11,882 | $ 4,767 | $ 4,414 |
Amortizable Intangible Assets_5
Amortizable Intangible Assets, Net - Schedule of Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2023 | $ 12,888 |
2024 | 4,312 |
2025 | 4,022 |
2026 | 3,763 |
2027 | $ 3,665 |
Other Long-Term Assets - Schedu
Other Long-Term Assets - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Sandalwood tree plantations | $ 32,556 | $ 30,731 |
German carbon certificates | 10,680 | 5,453 |
Other | 4,789 | 2,534 |
Other long-term assets | $ 48,025 | $ 38,718 |
Accounts Payable and Other - Sc
Accounts Payable and Other - Schedule of Accounts Payable and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 92,848 | $ 58,451 |
Accrued expenses | 95,798 | 76,409 |
Interest payable | 26,756 | 26,506 |
Income tax payable | 99,827 | 56,241 |
Payroll-related accruals | 34,353 | 20,707 |
Wastewater fee | 8,614 | 19,248 |
Finance lease liability | 7,368 | 8,467 |
Operating lease liability | 5,255 | 3,192 |
Government grants | 1,181 | 7,302 |
Other | 5,306 | 5,784 |
Accounts payable and other | $ 377,306 | $ 282,307 |
Accounts Payable and Other - _2
Accounts Payable and Other - Schedule of Accounts Payable and Other (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |||
Reductions to wastewater fees | $ 12,847,000 | $ 0 | $ 0 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | $ 1,367,204 | $ 1,261,915 |
Less: unamortized senior note issuance costs | (13,328) | (15,903) |
Less: finance lease liability due within one year | (7,368) | (8,467) |
Long-term debt, net | $ 1,346,508 | 1,237,545 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2026 | |
Long-term debt and finance lease obligations, gross | $ 300,000 | 300,000 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2029 | |
Long-term debt and finance lease obligations, gross | $ 875,000 | 875,000 |
German Joint RCF - EUR 300 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 109,326 | 0 |
Canadian Joint RCF - C$160 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 31,749 | 0 |
Peace River Credit Facility - C$60 Million | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | 0 | 22,874 |
Celgar Credit Facility - C$60.0 Million | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | 0 | 0 |
Rosenthal Credit Facility - EUR 2.6 Million | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | 0 | 0 |
Finance Lease Liability | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | $ 51,129 | $ 64,041 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,346,508 | $ 1,237,545 | |||||
Loss on early extinguishment of debt | 0 | (30,368) | $ 0 | ||||
Long-term Debt | $ 1,316,075 | ||||||
2029 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt, interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||
Debt, face amount | $ 875,000 | ||||||
Debt, maturity date | Feb. 01, 2029 | ||||||
Long-term debt | $ 860,517 | ||||||
Loss on early extinguishment of debt | $ 30,368 | ||||||
2026 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt, interest rate | 5.50% | 5.50% | 5.50% | ||||
Debt, maturity date | Jan. 15, 2026 | ||||||
German Joint RCF - EUR 300 Million | |||||||
Debt Instrument [Line Items] | |||||||
Debt, interest rate | 3.193% | 3.193% | 3.193% | ||||
Line of credit, maximum borrowing capacity | € | € 300,000,000 | ||||||
Debt, description of variable basis spread | Euribor | ||||||
Debt, amount of debt supporting bank guarantees | $ 14,433 | 13,500,000 | |||||
Line of credit facility, remaining borrowing capacity | 196,220 | 184,000,000 | |||||
Long-term Debt | $ 109,326 | € 102,500,000 | |||||
German Joint RCF - EUR 300 Million | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 1.30% | ||||||
German Joint RCF - EUR 300 Million | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 2.25% | ||||||
Interest rate margin subject to upward or downward adjustments | 0.05% | ||||||
Canadian Joint RCF - C$160 Million | |||||||
Debt Instrument [Line Items] | |||||||
Debt, interest rate | 6.034% | 6.034% | 6.034% | ||||
Line of credit, maximum borrowing capacity | $ 160,000,000 | ||||||
Line of credit facility, remaining borrowing capacity | $ 85,415 | 115,700,000 | |||||
Long-term Debt | 31,749 | 43,000,000 | |||||
Line of credit, letters of credit outstanding, amount | $ 970 | 1,300,000 | |||||
Canadian Joint RCF - C$160 Million | Canadian Dollar Borrowings Rate Option 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | designated prime rate | ||||||
Canadian Joint RCF - C$160 Million | Canadian Dollar Borrowings Rate Option 1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | banker’s acceptance | ||||||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1a | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | federal funds rate | ||||||
Debt, variable basis spread | 0.50% | ||||||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1b | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | Adjusted Term SOFR for a one month tenor | ||||||
Debt, variable basis spread | 1% | ||||||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1c | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | bank’s applicable reference rate for U.S. dollar loans | ||||||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, description of variable basis spread | Adjusted Term SOFR | ||||||
Canadian Joint RCF - C$160 Million | Minimum | Canadian Dollar Borrowings Rate Option 1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 1.20% | ||||||
Canadian Joint RCF - C$160 Million | Minimum | US Dollar Borrowings Rate Option 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 1.20% | ||||||
Canadian Joint RCF - C$160 Million | Maximum | Canadian Dollar Borrowings Rate Option 1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 1.45% | ||||||
Canadian Joint RCF - C$160 Million | Maximum | US Dollar Borrowings Rate Option 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable basis spread | 1.45% | ||||||
Peace River Credit Facility - C$60 Million | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | ||||||
Peace River and Celgar C$60 Million Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | ||||||
Celgar Credit Facility - C$60.0 Million | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | ||||||
Rosenthal Credit Facility - EUR 2.6 Million | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | € | € 2,600,000 | ||||||
Debt, description of variable basis spread | three-month Euribor | ||||||
Debt, variable basis spread | 2.50% | ||||||
Debt, amount of debt supporting bank guarantees | $ 2,722 | € 2,600,000 | |||||
Line of credit facility, remaining borrowing capacity | $ 0 | ||||||
Senior Notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes, redemption notice days | 10 days | ||||||
Senior Notes | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes, redemption notice days | 60 days |
Debt - Principal Maturities of
Debt - Principal Maturities of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Senior Notes and Credit Arrangements | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 300,000 | |
2027 | 141,075 | |
Thereafter | 875,000 | |
Total payments | 1,316,075 | |
Less imputed interest | 0 | |
Finance Leases | ||
2023 | 8,597 | |
2024 | 7,825 | |
2025 | 6,954 | |
2026 | 6,879 | |
2027 | 6,879 | |
Thereafter | 18,690 | |
Total, Finance Leases | 55,824 | |
Less imputed interest | (4,695) | |
Total payments | $ 51,129 | $ 64,041 |
Debt - Debt Redemption Period f
Debt - Debt Redemption Period for Senior Notes (Details) | 12 Months Ended |
Dec. 31, 2022 | |
2026 Senior Notes | January 15, 2022 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.375% |
2026 Senior Notes | January 15, 2023 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
2029 Senior Notes | February 1, 2024 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.563% |
2029 Senior Notes | February 1, 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.281% |
2029 Senior Notes | February 1, 2026 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Obligations - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | $ 139,314 | $ 143,088 |
Service cost | 3,744 | 4,245 |
Interest cost | 4,166 | 3,915 |
Benefit payments, net | (4,697) | (4,762) |
Actuarial losses (gains) | (31,252) | (7,831) |
Foreign currency exchange rate changes | (7,133) | 659 |
Benefit obligation, ending balance | 104,142 | 139,314 |
Fair value of plan assets, beginning balance | 121,381 | 110,476 |
Actual returns | (17,654) | 9,315 |
Contributions | 2,942 | 4,258 |
Benefit payments | (4,037) | (4,098) |
Foreign currency exchange rate changes | (7,026) | 1,430 |
Fair value of plan assets, ending balance | 95,606 | 121,381 |
Funded status | (8,536) | (17,933) |
Expected return on plan assets | (5,800) | (5,216) |
Amortization of unrecognized items | (402) | (113) |
Net benefit cost | 1,708 | 2,831 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 125,975 | 128,854 |
Service cost | 3,553 | 3,942 |
Interest cost | $ 3,756 | $ 3,524 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Benefit payments, net | $ (4,163) | $ (4,231) |
Actuarial losses (gains) | (28,292) | (6,701) |
Foreign currency exchange rate changes | (6,699) | 587 |
Benefit obligation, ending balance | 94,130 | 125,975 |
Fair value of plan assets, beginning balance | 121,381 | 110,476 |
Actual returns | (17,654) | 9,315 |
Contributions | 2,942 | 4,258 |
Benefit payments | (4,037) | (4,098) |
Foreign currency exchange rate changes | (7,026) | 1,430 |
Fair value of plan assets, ending balance | 95,606 | 121,381 |
Funded status | 1,476 | (4,594) |
Expected return on plan assets | $ (5,800) | $ (5,216) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of unrecognized items | $ 290 | $ 678 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Net benefit cost | $ 1,799 | $ 2,928 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 13,339 | 14,234 |
Service cost | 191 | 303 |
Interest cost | 410 | 391 |
Benefit payments, net | (534) | (531) |
Actuarial losses (gains) | (2,960) | (1,130) |
Foreign currency exchange rate changes | (434) | 72 |
Benefit obligation, ending balance | 10,012 | 13,339 |
Funded status | (10,012) | (13,339) |
Amortization of unrecognized items | (692) | (791) |
Net benefit cost | $ (91) | $ (97) |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 2,197 | ||
Defined contribution plan, employer discretionary contribution amount | 1,982 | $ 1,768 | $ 1,634 |
Multiemployer plan, contributions by employer | $ 2,175 | $ 2,370 | $ 1,933 |
Celgar | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 80% | ||
Celgar | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 20% |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Obligations - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 4,789 |
2024 | 5,059 |
2025 | 5,354 |
2026 | 5,569 |
2027 | 5,747 |
2028-2032 | 31,012 |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 540 |
2024 | 566 |
2025 | 586 |
2026 | 604 |
2027 | 622 |
2028-2032 | $ 3,373 |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Obligations - Summary of Key Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Celgar | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 5% | 3.10% | 2.55% |
Benefit obligations, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Discount rate | 3.10% | 2.70% | 3% |
Net benefit cost, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Expected rate of return on plan assets | 3.60% | 4% | 4.10% |
Peace River's | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 5% | 3.10% | 2.70% |
Benefit obligations, Rate of compensation increase | 2.75% | 2.75% | 2.75% |
Net benefit cost, Discount rate | 3.10% | 2.70% | 3.20% |
Net benefit cost, Rate of compensation increase | 2.75% | 2.75% | 2.75% |
Net benefit cost, Expected rate of return on plan assets | 5.48% | 4.93% | 4.68% |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefit Obligations - Schedule of Assumed Health Care Cost Trend Rates (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for next year | 4.75% | 4.50% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2026 | 2022 |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Obligations - Schedule of Defined Benefit Pension Plans' Assets Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 95,606 | $ 121,381 | $ 110,476 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Fair Value, Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 77,204 | 96,923 | |
Fair Value, Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 18,402 | 24,458 | $ 26,017 |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 52,640 | 64,057 | |
Equity Securities | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Equity Securities | Fair Value, Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 52,640 | 64,057 | |
Equity Securities | Fair Value, Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 23,071 | 31,125 | |
Debt Securities | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Debt Securities | Fair Value, Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 23,071 | 31,125 | |
Debt Securities | Fair Value, Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Buy-in Annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 18,402 | 24,458 | |
Buy-in Annuity | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Buy-in Annuity | Fair Value, Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Buy-in Annuity | Fair Value, Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 18,402 | 24,458 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 1,493 | 1,741 | |
Other | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | 0 | |
Other | Fair Value, Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 1,493 | 1,741 | |
Other | Fair Value, Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 0 | $ 0 |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Obligations - Schedule of Change In Level 3 Fair value Measurements of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, beginning balance | $ 121,381 | $ 110,476 |
Actual returns | (17,654) | 9,315 |
Benefit payments | (4,037) | (4,098) |
Actuarial losses (gains) | (31,252) | (7,831) |
Foreign currency exchange rate changes | (7,026) | 1,430 |
Fair value of plan assets, ending balance | 95,606 | 121,381 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, beginning balance | 24,458 | 26,017 |
Actual returns | 623 | 645 |
Benefit payments | (1,709) | (1,789) |
Actuarial losses (gains) | (3,589) | (545) |
Foreign currency exchange rate changes | (1,381) | 130 |
Fair value of plan assets, ending balance | $ 18,402 | $ 24,458 |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefit Obligations - Schedule of Multiemployer Plan (Details) - The Pulp and Paper Industry Pension Plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Multiemployer Plans [Line Items] | |||
Provincially Registered Plan Number | P085324 | ||
Expiration Date of Collective Bargaining Agreement | Apr. 30, 2025 | ||
Are the Company's Contributions Greater Than 5% of Total Contributions | true | true | false |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income from Continuing Operations before Income Taxes, U.S. | $ (75,566) | $ (75,955) | $ (22,284) |
Income from Continuing Operations before Income Taxes, Foreign | 420,869 | 336,522 | 11,145 |
Income (loss) before income taxes | $ 345,303 | $ 260,567 | $ (11,139) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes Recognized in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State current income tax provision | $ 297 | $ 156 | $ 1,782 |
Foreign current income tax provision | 90,964 | 70,632 | 19,563 |
Total current income tax provision | 91,261 | 70,788 | 21,345 |
Foreign deferred income tax provision (recovery) | 7,003 | 18,791 | (15,249) |
Total income tax provision | $ 98,264 | $ 89,579 | $ 6,096 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Entity | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income tax examination, description | The German tax authorities have completed examinations up to and including the 2017 tax year for all but two German entities. For one of the two entities, the German tax authorities have completed examinations up to and including the 2013 tax year; for the other entity, up to and including 2019. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2019 and 2018, respectively. | ||
Recognized interest and penalties related to unrecognized tax benefit | $ 0 | $ 0 | $ 0 |
Unrecognized tax benefits | 0 | $ 0 | |
Undistributed Earnings of Foreign Subsidiaries | $ 404,472,000 | ||
German Tax Authorities | Foreign Country | |||
Income tax examinations not completed, number of entities | Entity | 2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
U.S. Federal statutory rate | 21% | 21% | 21% |
U.S. Federal statutory rate on income (loss) before income taxes | $ (72,570) | $ (54,724) | $ 2,339 |
Tax differential on foreign income | (30,054) | (25,361) | (1,982) |
Effect of foreign earnings | (5,329) | (7,524) | (3,002) |
Valuation allowance | 4,311 | (12,048) | (8,383) |
Tax benefit of partnership structure | 3,132 | 3,132 | 3,740 |
Non-taxable foreign subsidies | 2,704 | 2,936 | 2,851 |
True-up of prior year taxes | 199 | 5,616 | (1,863) |
Other | (657) | (1,606) | 204 |
Income tax provision | $ (98,264) | $ (89,579) | $ (6,096) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. tax loss carryforwards and credits | $ 32,012 | $ 22,168 | |
Basis difference between income tax and financial reporting with respect to operating pulp mills | (160,561) | (146,000) | |
Amortizable intangible assets | (8,826) | (9,449) | |
Other long-term assets | (6,986) | (5,646) | |
Debt | (5,183) | (5,691) | |
Accounts payable and accrued expenses | 4,765 | 5,382 | |
Deferred pension liability | 2,997 | 6,341 | |
Finance leases | 14,881 | 17,245 | |
Scientific research and experimental development investment tax credit and expenditure pool | 3,119 | 4,552 | |
Other | 8,069 | 5,389 | |
Total gross deferred tax liability | (87,080) | (50,756) | |
Valuation allowance | (38,879) | (43,190) | $ (31,142) |
Net deferred income tax liability | (125,959) | (93,946) | |
Deferred income tax asset | 0 | 1,177 | |
Deferred income tax liability | (125,959) | (95,123) | |
Federal Ministry of Finance, Germany | |||
Foreign tax loss carryforwards | 7,946 | 9,500 | |
Canada Revenue Agency | |||
Foreign tax loss carryforwards | 14,107 | 40,363 | |
Australian Taxation Office | |||
Foreign tax loss carryforwards | $ 6,580 | $ 5,090 |
Income Taxes - Summary of Inves
Income Taxes - Summary of Investment Tax Credit and Other Tax Attributes Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
United States | |
Income Taxes Disclosures [Line Items] | |
Interest | $ 152,400 |
Other Tax Carryforward Expiration Period | Indefinite |
German Tax Authorities | |
Income Taxes Disclosures [Line Items] | |
Interest | $ 27,792 |
Other Tax Carryforward Expiration Period | Indefinite |
Canada Revenue Agency | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 50,000 |
Scientific research and experimental development investment tax credit carryforwards | $ 4,500 |
Canada Revenue Agency | Minimum | |
Income Taxes Disclosures [Line Items] | |
Tax Loss Carryforwards Expiration Period | 2036 |
Tax Credits Carryforward, Expiration Year | 2030 |
Canada Revenue Agency | Maximum | |
Income Taxes Disclosures [Line Items] | |
Tax Loss Carryforwards Expiration Period | 2041 |
Tax Credits Carryforward, Expiration Year | 2039 |
Australian Taxation Office | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 21,900 |
Tax Loss Carryforwards Expiration Period | Indefinite |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance [Line Items] | ||
Valuation allowance, beginning of period | $ 43,190 | $ 31,142 |
The impact of changes in foreign exchange rates | 776 | 129 |
Valuation allowance, end of period | 38,879 | 43,190 |
United States | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | 10,839 | 14,770 |
Canada | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | $ (15,926) | $ (2,851) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||||||||
Date Declared | Oct. 27, 2022 | Jul. 28, 2022 | Apr. 28, 2022 | Feb. 17, 2022 | Oct. 28, 2021 | Jul. 29, 2021 | Apr. 29, 2021 | Feb. 16, 2021 | |||
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.3000 | $ 0.2600 | $ 0.3325 |
Dividends, Common Stock, Cash | $ 4,962 | $ 4,963 | $ 4,962 | $ 4,960 | $ 4,293 | $ 4,292 | $ 4,293 | $ 4,289 | $ 19,847 | $ 17,167 | $ 21,892 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 16, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.3000 | $ 0.2600 | $ 0.3325 | ||
Preferred shares, authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred shares, par value | $ 1 | $ 1 | |||||||||||
Preferred shares, issued | 0 | 0 | |||||||||||
Common shares available for grant | 2,800,000 | 2,800,000 | |||||||||||
Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding, options | 0 | 0 | |||||||||||
Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Stock Appreciation Rights (SARs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Performance Share Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 1,709,688 | ||||||||||||
Shares outstanding | 3,484,154 | 2,754,472 | 3,484,154 | 2,754,472 | |||||||||
Vesting period | 3 years | ||||||||||||
Weighted-average grant date fair value of awards granted | $ 13.61 | $ 13.72 | $ 11 | ||||||||||
Fair value of vested and issued shares or units | $ 1,208 | $ 1,642 | $ 2,101 | ||||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 34,699 | ||||||||||||
Shares outstanding | 34,699 | 49,195 | 34,699 | 49,195 | |||||||||
Weighted-average grant date fair value of awards granted | $ 14.84 | $ 8.07 | |||||||||||
Restricted Stock And Deferred Stock Units [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair value of vested and issued shares or units | $ 793 | $ 1,011 | $ 248 | ||||||||||
PSUs restricted shares RSUs and DSUs [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 1 year | ||||||||||||
Unrecognized compensation cost | $ 5,963 | $ 5,963 | |||||||||||
Series A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Preferred shares, authorized | 2,000,000 | 2,000,000 | |||||||||||
Dividend Declared | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per common share | $ 0.075 | ||||||||||||
Dividends Payable, Date to be Paid | Apr. 05, 2023 | ||||||||||||
Dividends Payable, Date of Record | Mar. 29, 2023 | ||||||||||||
2022 Plan | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common shares available for grant | 2,500,000 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Share Activity - PSU's (Details) - Performance Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 2,754,472 | ||
Granted | 1,709,688 | ||
Vested and issued (in shares) | (94,940) | ||
Forfeited (in shares) | (885,066) | ||
Outstanding - Ending | 3,484,154 | 2,754,472 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 12.98 | ||
Granted | 13.61 | $ 13.72 | $ 11 |
Vested and issued | 15.34 | ||
Forfeited | 14.36 | ||
Outstanding - Ending | $ 12.87 | $ 12.98 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Share Activity - Restricted Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 49,195 | ||
Granted | 34,699 | ||
Vested | (49,195) | ||
Outstanding - Ending | 34,699 | 49,195 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted | $ 14.84 | $ 8.07 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 50,000 | ||
Outstanding - Ending | 50,000 | ||
DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 16,048 | ||
Vested | (4,494) | ||
Outstanding - Ending | 11,554 | ||
Restricted Stock Restricted Stock Units and Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 14.84 | ||
Granted | 15.65 | ||
Vested and issued | 14.92 | ||
Outstanding - Ending | $ 15.64 | $ 14.84 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Net income (loss) - basic and diluted | $ 247,039 | $ 170,988 | $ (17,235) |
Net income (loss) per common share, basic | $ 3.74 | $ 2.59 | $ (0.26) |
Net income (loss) per common share, diluted | $ 3.71 | $ 2.58 | $ (0.26) |
Basic, Weighted average number of common shares outstanding | 66,100,040 | 65,944,494 | 65,768,485 |
Diluted, Weighted average number of common shares outstanding | 66,602,386 | 66,284,003 | 65,768,485 |
Performance Share Units | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 468,931 | 312,455 | |
Restricted Stock | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 17,842 | 27,054 | |
RSUs | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 11,886 | ||
DSUs | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 3,687 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Antidilutive securities excluded from computation of basic earnings per share amount | 34,699 | 49,195 | 68,140 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share (Details) | 12 Months Ended |
Dec. 31, 2020 shares | |
Performance Share Units | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 2,364,848 |
Restricted Stock | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 68,140 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Change in Accumulated Other Comprehensive Loss by Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 694,024 | $ 601,027 | $ 550,403 |
Other comprehensive income (loss), net of taxes | (89,169) | (63,218) | 88,985 |
Balance | 838,784 | 694,024 | 601,027 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (97,517) | (19,578) | (114,709) |
Other comprehensive income (loss) before reclassifications | (97,568) | (77,939) | 95,131 |
Amounts reclassified | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | (97,568) | (77,939) | 95,131 |
Balance | (195,085) | (97,517) | (19,578) |
Defined Benefit Pension and Other Post-Retirement Benefit Items | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | 6,724 | (7,997) | (1,851) |
Other comprehensive income (loss) before reclassifications | 8,801 | 14,834 | (6,114) |
Amounts reclassified | (402) | (113) | (32) |
Other comprehensive income (loss), net of taxes | 8,399 | 14,721 | (6,146) |
Balance | 15,123 | 6,724 | (7,997) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (90,793) | (27,575) | (116,560) |
Other comprehensive income (loss) before reclassifications | (88,767) | (63,105) | 89,017 |
Amounts reclassified | (402) | (113) | (32) |
Other comprehensive income (loss), net of taxes | (89,169) | (63,218) | 88,985 |
Balance | $ (179,962) | $ (90,793) | $ (27,575) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intra-entity Loans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Foreign currency translation gain (loss) | $ 1,598 | $ (6,905) | $ 5,111 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
MPR - CPP | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% | ||
Related party transaction, purchases from related party | $ 101,095 | $ 88,073 | $ 76,875 |
Receivable balance from related party | 5,688 | ||
Accounts payable, related parties | $ 4,409 | ||
MPR - logging JV | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% | ||
Related party transaction, purchases from related party | $ 12,545 | 12,775 | $ 15,118 |
Receivable balance from related party | $ 522 | ||
Accounts payable, related parties | $ 2,400 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Customer Mill | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) Customer | |
Segment Reporting Information [Line Items] | |||
Number of pulp mills | Mill | 4 | ||
Revenues | $ 2,280,937,000 | $ 1,803,255,000 | $ 1,423,140,000 |
Number of customers accounting for 10% or more of sales | Customer | 0 | 0 | 0 |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Minimum | |||
Segment Reporting Information [Line Items] | |||
Revenue major customer percentage | 10% | ||
Intersegment Eliminations | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 336,000 | $ 459,000 |
Intersegment Eliminations | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 34,236,000 | $ 12,661,000 | $ 12,040,000 |
MPR - CPP | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage | 50% |
Segment Information - Schedule
Segment Information - Schedule of Results by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Acquiree revenues | $ 2,280,937 | $ 1,803,255 | $ 1,423,140 |
Operating income (loss) | 392,368 | 346,583 | 63,729 |
Depreciation and amortization | 144,153 | 132,199 | 128,921 |
Purchase of property, plant and equipment | 178,742 | 159,440 | 78,518 |
Total assets | 2,725,037 | 2,351,232 | 2,129,126 |
Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,686,370 | 1,389,439 | 1,130,302 |
Lumber | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 288,002 | 293,166 | 180,769 |
Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 211,762 | 111,891 | 105,808 |
Wood Residuals | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 18,290 | 6,368 | 6,261 |
Manufactured Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 22,759 | 2,391 | |
Pallets | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 36,063 | ||
Biofuels | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 17,691 | ||
Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,866,117 | 1,483,093 | 1,220,644 |
Operating income (loss) | 340,664 | 251,724 | 37,952 |
Depreciation and amortization | 112,058 | 115,293 | 115,945 |
Purchase of property, plant and equipment | 146,635 | 139,312 | 53,734 |
Total assets | 1,768,628 | 1,882,078 | 1,740,233 |
Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 408,458 | 313,472 | 197,649 |
Operating income (loss) | 70,642 | 106,092 | 34,704 |
Depreciation and amortization | 31,170 | 15,784 | 12,212 |
Purchase of property, plant and equipment | 31,190 | 19,379 | 23,788 |
Total assets | 613,171 | 313,354 | 112,267 |
Operating Segments | Pulp | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,686,370 | 1,389,439 | 1,130,302 |
Operating Segments | Pulp | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Operating Segments | Lumber | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Operating Segments | Lumber | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 288,002 | 293,166 | 180,769 |
Operating Segments | Energy and Chemicals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 179,747 | 93,654 | 90,342 |
Operating Segments | Energy and Chemicals | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 25,653 | 11,547 | 10,619 |
Operating Segments | Wood Residuals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Operating Segments | Wood Residuals | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 18,290 | 6,368 | 6,261 |
Operating Segments | Manufactured Products | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | |
Operating Segments | Manufactured Products | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 22,759 | 2,391 | |
Operating Segments | Pallets | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | ||
Operating Segments | Pallets | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 36,063 | ||
Operating Segments | Biofuels | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | ||
Operating Segments | Biofuels | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 17,691 | ||
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 6,362 | 6,690 | 4,847 |
Operating income (loss) | (18,938) | (11,233) | (8,927) |
Depreciation and amortization | 925 | 1,122 | 764 |
Purchase of property, plant and equipment | 917 | 749 | 996 |
Total assets | 343,238 | 155,800 | 276,626 |
Corporate, Non-Segment | Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Corporate, Non-Segment | Lumber | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Corporate, Non-Segment | Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 6,362 | 6,690 | 4,847 |
Corporate, Non-Segment | Wood Residuals | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Corporate, Non-Segment | Manufactured Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | |
Corporate, Non-Segment | Pallets | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | ||
Corporate, Non-Segment | Biofuels | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 416,108 | 345,187 | 245,352 |
United States | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 236,862 | 183,198 | 149,816 |
United States | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 177,917 | 159,153 | 93,802 |
United States | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,329 | 2,836 | 1,734 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 697,173 | 522,711 | 387,291 |
Germany | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 553,935 | 459,725 | 336,346 |
Germany | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 142,846 | 62,986 | 50,945 |
Germany | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 392 | 0 | 0 |
China | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 497,442 | 377,136 | 367,564 |
China | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 495,668 | 375,891 | 364,527 |
China | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,774 | 1,245 | 3,037 |
China | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 0 | 0 | 0 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 670,214 | 558,221 | 422,933 |
Other Countries | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 579,652 | 464,279 | 369,955 |
Other Countries | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 85,921 | 90,088 | 49,865 |
Other Countries | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 4,641 | 3,854 | 3,113 |
Foreign Countries | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,864,829 | 1,458,068 | 1,177,788 |
Foreign Countries | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 1,629,255 | 1,299,895 | 1,070,828 |
Foreign Countries | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | 230,541 | 154,319 | 103,847 |
Foreign Countries | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Acquiree revenues | $ 5,033 | $ 3,854 | $ 3,113 |
Segment Information - Schedul_2
Segment Information - Schedule of Results by Segment (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | |||
Investment in joint ventures | $ 45,635 | $ 49,651 | $ 46,429 |
Goodwill | 30,937 | $ 0 | |
Solid Wood | Torgau | |||
Restructuring Cost and Reserve [Line Items] | |||
Goodwill | $ 30,937 |
Segment Information - Schedul_3
Segment Information - Schedule Of Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,341,322 | $ 1,135,631 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 53,291 | 51,136 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 844,085 | 660,745 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 428,447 | 406,985 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 15,499 | 16,765 |
Foreign Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,288,031 | $ 1,084,495 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,156,708 | $ 1,220,323 |
Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 141,075 | 22,874 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,015,633 | 1,197,449 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,156,708 | 1,220,323 |
Fair Value, Significant Other Observable Inputs (Level 2) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 141,075 | 22,874 |
Fair Value, Significant Other Observable Inputs (Level 2) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,015,633 | 1,197,449 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant unobservable inputs (Level 3) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant unobservable inputs (Level 3) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Accounts receivable | $ 351,993 | $ 345,345 |
Cash and cash equivalents | 354,032 | 345,610 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value of senior notes, net of unamortized note issuance costs | $ 1,161,672 | $ 1,159,097 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Weighted Average Remaining Lease Term | 9 years | 8 years | 9 years |
Consumer Price Index Basis Point Change | 1% | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 17 years | ||
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Weighted Average Remaining Lease Term | 8 years | ||
Minimum | Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 2 years | ||
Minimum | Railroad Transportation Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 6 years | ||
Minimum | Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Maximum | Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 9 years | ||
Maximum | Railroad Transportation Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 11 years | ||
Maximum | Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Lessee, Operating Lease, Term of Contract | 7 years |
Lease Commitments - Components
Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,130 | $ 4,086 | $ 3,712 |
Finance lease, amortization of right-of-use assets | 6,869 | 7,481 | 4,963 |
Finance lease, interest on lease liabilities | 1,429 | 1,635 | 1,460 |
Total lease cost | $ 14,428 | $ 13,202 | $ 10,135 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flow payments for operating leases | $ 6,130 | $ 4,086 | $ 3,712 |
Operating cash flow payments for finance leases | 1,429 | 1,635 | 1,460 |
Financing cash flow payments for finance leases | $ 10,003 | $ 7,850 | $ 4,636 |
Lease Commitments - Other Infor
Lease Commitments - Other Information Related To Leases (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 5 years | 6 years |
Finance Lease, Weighted Average Remaining Lease Term | 9 years | 8 years | 9 years |
Operating Lease, Weighted Average Discount Rate, Percent | 5% | 6% | 6% |
Finance Lease, Weighted Average Discount Rate, Percent | 3% | 3% | 3% |
Lease Commitments - Supplemen_2
Lease Commitments - Supplemental Balance Sheet Information Related To Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 15,049 | $ 9,712 |
Operating lease liability | $ 5,255 | $ 3,192 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other | Accounts payable and other |
Operating lease liabilities | $ 9,475 | $ 6,574 |
Total operating lease liabilities | 14,730 | 9,766 |
Property and equipment, gross | 77,954 | 87,719 |
Accumulated depreciation | (28,290) | (24,850) |
Finance Lease, property, plant and equipment | $ 49,664 | $ 62,869 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Other current liabilities | $ 7,368 | $ 8,467 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other | Accounts payable and other |
Long-term debt | $ 43,761 | $ 55,574 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Total finance lease liabilities | $ 51,129 | $ 64,041 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 5,490 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 3,908 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 2,162 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 1,404 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,255 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 2,312 | |
Lessee, Operating Lease, Liability, Payments, Due | 16,531 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,801) | |
Operating lease liabilities, total | $ 14,730 | $ 9,766 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Purchase Obligations Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2023 | $ 121,553 |
2024 | 58,312 |
2025 | 33,386 |
2026 | 700 |
2027 | 480 |
Thereafter | 229 |
Purchase obligation | $ 214,660 |