Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 13, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | MERCER INTERNATIONAL INC. | ||
Entity Central Index Key | 1,333,274 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Trading Symbol | merc | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 65,201,661 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,072.5 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 1,457,718 | $ 1,169,145 | $ 931,623 |
Costs and expenses | |||
Cost of sales, excluding depreciation and amortization | 1,032,101 | 866,019 | 700,494 |
Cost of sales depreciation and amortization | 96,288 | 84,893 | 71,476 |
Selling, general and administrative expenses | 61,462 | 49,679 | 44,529 |
Operating income | 267,867 | 168,554 | 115,124 |
Other income (expenses) | |||
Interest expense | (51,464) | (54,796) | (51,575) |
Loss on settlement of debt (Note 8(a)) | (21,515) | (10,696) | (454) |
Legal cost award (Note 17(c)) | (6,951) | 0 | 0 |
Acquisition commitment fee (Note 2) | (5,250) | 0 | 0 |
Other income (expenses) | (5,417) | 873 | (3,631) |
Total other expenses | (90,597) | (64,619) | (55,660) |
Income before provision for income taxes | 177,270 | 103,935 | 59,464 |
Provision for income taxes | (48,681) | (33,452) | (24,521) |
Net income | $ 128,589 | $ 70,483 | $ 34,943 |
Net income per common share | |||
Basic | $ 1.97 | $ 1.09 | $ 0.54 |
Diluted | 1.96 | 1.08 | 0.54 |
Dividends declared per common share | $ 0.5 | $ 0.47 | $ 0.46 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 128,589 | $ 70,483 | $ 34,943 |
Other comprehensive income (loss), net of taxes | |||
Foreign currency translation adjustment | (76,920) | 120,509 | (14,369) |
Change in unrecognized losses and prior service costs related to defined benefit pension plans, net of tax of $424 (2017 and 2016 - $nil) | 7,730 | 5,763 | 675 |
Change in unrealized gains/losses on marketable securities, net of taxes of $nil in all years | 21 | (4) | (1) |
Other comprehensive income (loss), net of taxes | (69,169) | 126,268 | (13,695) |
Total comprehensive income | $ 59,420 | $ 196,751 | $ 21,248 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 |
Change in unrecognized losses and prior service costs related to defined benefit plan, tax effect | 424 | 0 | 0 |
Change in unrealized gains/losses on marketable securities, tax effect | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 240,491 | $ 143,299 |
Restricted cash to redeem senior notes (Note 8(a)) | 0 | 317,439 |
Accounts receivable | 252,692 | 206,027 |
Inventories | 303,813 | 176,601 |
Prepaid expenses and other | 13,703 | 8,973 |
Total current assets | 810,699 | 852,339 |
Property, plant and equipment, net | 1,029,257 | 844,848 |
Investment in joint ventures (Note 2) | 62,574 | 0 |
Intangible and other assets | 71,831 | 26,147 |
Deferred income tax | 1,374 | 1,376 |
Total assets | 1,975,735 | 1,724,710 |
Current liabilities | ||
Accounts payable and other | 194,484 | 133,557 |
Pension and other post-retirement benefit obligations | 904 | 985 |
Senior notes to be redeemed with restricted cash (Note 8(a)) | 0 | 295,924 |
Total current liabilities | 195,388 | 430,466 |
Debt | 1,041,389 | 662,997 |
Pension and other post-retirement benefit obligations | 25,829 | 21,156 |
Capital leases and other | 38,593 | 27,464 |
Deferred income tax | 93,107 | 31,961 |
Total liabilities | 1,394,306 | 1,174,044 |
Shareholders' equity | ||
Common shares | 65,171 | 64,974 |
Additional paid-in capital | 342,438 | 338,695 |
Retained earnings | 301,990 | 205,998 |
Accumulated other comprehensive loss | (128,170) | (59,001) |
Total shareholders' equity | 581,429 | 550,666 |
Total liabilities and shareholders' equity | 1,975,735 | 1,724,710 |
Commitments and contingencies (Note 17) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 65,202,000 | 65,017,000 |
Common Stock, Shares, Outstanding | 65,202,000 | 65,017,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Total shareholders' equity | $ 382,976 | $ 64,424 | $ 329,246 | $ 160,880 | $ (171,574) |
Balance (in shares) at Dec. 31, 2015 | 64,502 | ||||
Shares issued on grants of restricted shares | 0 | $ 78 | (78) | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 38 | ||||
Shares issued on grants of performance share units | 0 | $ 154 | (154) | 0 | 0 |
Shares issued on grants of performance share units (in shares) | 154 | ||||
Stock compensation expense | 4,659 | $ 0 | 4,659 | 0 | 0 |
Net income | 34,943 | 0 | 0 | 34,943 | 0 |
Dividends declared | (29,755) | 0 | 0 | (29,755) | 0 |
Other comprehensive loss | (13,695) | $ 0 | 0 | 0 | (13,695) |
Balance (in shares) at Dec. 31, 2016 | 64,694 | ||||
Total shareholders' equity | 379,128 | $ 64,656 | 333,673 | 166,068 | (185,269) |
Shares issued on grants of restricted shares | 0 | $ 38 | (38) | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 43 | ||||
Shares issued on grants of performance share units | 0 | $ 280 | (280) | 0 | 0 |
Shares issued on grants of performance share units (in shares) | 280 | ||||
Stock compensation expense | 2,890 | $ 0 | 2,890 | 0 | 0 |
Net income | 70,483 | 0 | 0 | 70,483 | 0 |
Dividends declared | (30,553) | 0 | 0 | (30,553) | 0 |
Settlement of short-swing trade profit claim | 2,450 | 0 | 2,450 | 0 | 0 |
Other comprehensive loss | $ 126,268 | $ 0 | 0 | 0 | 126,268 |
Balance (in shares) at Dec. 31, 2017 | 65,017 | 65,017 | |||
Total shareholders' equity | $ 550,666 | $ 64,974 | 338,695 | 205,998 | (59,001) |
Shares issued on grants of restricted shares | 0 | $ 43 | (43) | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 31 | ||||
Shares issued on grants of performance share units | 0 | $ 154 | (154) | 0 | 0 |
Shares issued on grants of performance share units (in shares) | 154 | ||||
Stock compensation expense | 3,940 | $ 0 | 3,940 | 0 | 0 |
Net income | 128,589 | 0 | 0 | 128,589 | 0 |
Dividends declared | (32,597) | 0 | 0 | (32,597) | 0 |
Other comprehensive loss | $ (69,169) | $ 0 | 0 | 0 | (69,169) |
Balance (in shares) at Dec. 31, 2018 | 65,202 | 65,202 | |||
Total shareholders' equity | $ 581,429 | $ 65,171 | $ 342,438 | $ 301,990 | $ (128,170) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from (used in) operating activities | |||
Net income | $ 128,589 | $ 70,483 | $ 34,943 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Depreciation and amortization | 96,729 | 85,294 | 71,984 |
Deferred income tax provision | 16,596 | 22,056 | 16,809 |
Loss on settlement of debt | 21,515 | 10,696 | 454 |
Defined benefit pension plans and other post-retirement benefit plan expense | 1,868 | 2,179 | 1,955 |
Stock compensation expense | 3,940 | 2,890 | 4,659 |
Other | 3,165 | 2,497 | 4,582 |
Defined benefit pension plans and other post-retirement benefit plan contributions | (1,133) | (2,031) | (2,316) |
Changes in working capital | |||
Accounts receivable | (10,370) | (64,949) | 9,466 |
Inventories | (58,082) | (19,994) | 6,844 |
Accounts payable and accrued expenses | 37,959 | 37,170 | (10,274) |
Other | (4,108) | (4,365) | 1,676 |
Net cash from (used in) operating activities | 236,668 | 141,926 | 140,782 |
Cash flows from (used in) investing activities | |||
Purchase of property, plant and equipment | (87,012) | (57,915) | (42,526) |
Purchase of intangible assets | (600) | (1,777) | (1,844) |
Acquisitions (Note 2) | (380,312) | (61,627) | 0 |
Other | 445 | (232) | 67 |
Net cash from (used in) investing activities | (467,479) | (121,551) | (44,303) |
Cash flows from (used in) financing activities | |||
Redemption of senior notes | (317,439) | (234,945) | (23,079) |
Proceeds from issuance of senior notes | 350,000 | 550,000 | 0 |
Proceeds from revolving credit facilities, net | 36,560 | 22,281 | 0 |
Dividend payments | (40,724) | (29,866) | (29,733) |
Payment of interest rate derivative liability | 0 | (6,887) | (10,883) |
Payment of debt issuance costs | (10,074) | (11,620) | 0 |
Other | (3,462) | (212) | 1,318 |
Net cash from (used in) financing activities | 14,861 | 288,751 | (62,377) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,297) | 10,716 | (2,065) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (220,247) | 319,842 | 32,037 |
Cash, cash equivalents and restricted cash, beginning of year | 460,738 | 140,896 | 108,859 |
Cash, cash equivalents and restricted cash, end of year | 240,491 | 460,738 | 140,896 |
Supplemental cash flow disclosure | |||
Cash paid for interest | 40,278 | 45,908 | 50,159 |
Cash paid for income taxes | 16,149 | 10,866 | 13,352 |
Supplemental schedule of non-cash investing and financing activities | |||
Leased production equipment | $ 12,145 | $ 145 | $ 17,792 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions Disclosure [Text Block] | Acquisitions MPR On December 10, 2018, the Company acquired all of the issued and outstanding shares of MPR for consideration of $344,588 cash, subject to certain customary working capital adjustments. The acquisition results in 100% ownership of a bleached kraft pulp mill in Peace River, Alberta, a 50% joint venture interest in an NBSK pulp mill in Quesnel, British Columbia, and a 50% interest in a logging and chipping operation for the areas underlying MPR's forest management agreements and timber allocations. The acquisition of MPR expands the Company's presence in Asia and adds northern bleached hardwood kraft to its product mix. The following summarizes the Company's preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed from MPR at the acquisition date: Purchase Price Allocation Current assets $ 135,305 Property, plant and equipment 207,743 Investment in joint ventures 62,672 Amortizable intangible assets, timber cutting rights (a) 34,810 Other long-term assets 392 Total assets acquired 440,922 Current liabilities 35,578 Pension obligations 9,747 Deferred income tax 47,912 Other long-term liabilities 3,097 Total liabilities assumed 96,334 Net assets acquired $ 344,588 (a) The timber cutting rights are being amortized on a straight line basis over 30 years. The fair value of the timber cutting rights was determined through the market approach utilizing comparable market data. The values were then discounted at a rate of 12.5% for 30 years to arrive at the fair value. 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. MPR 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 MPR's revenues and net loss included in the Consolidated Statement of Operations for the year ended December 31, 2018 was $29,907 and $978 , respectively. In the year ended December 31, 2018, $1,871 of acquisition related costs were recognized in selling, general and administrative expenses in the Consolidated Statement of Operations. The Company also incurred an acquisition commitment fee of $5,250 for a senior unsecured bridge facility to ensure financing was in place for the acquisition. However the bridge facility was not used as the Company issued the senior notes due 2025. The following unaudited pro forma information represents the Company's results of operations as if the acquisition of MPR had occurred on January 1, 2017. 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, 2018 2017 Revenues $ 1,906,697 $ 1,503,446 Net income $ 189,431 $ 42,267 The unaudited pro forma information includes additional interest expense related to debt issued to finance the acquisition of $25,190 and $26,989 for the years ended December 31, 2018 and December 31, 2017, respectively and additional depreciation expense of $11,679 and $9,776 for the years ended December 31, 2018 and December 31, 2017, respectively. Other adjustments also include those related to increasing the December 31, 2018 net income and decreasing the December 31, 2017 net income by the non-recurring acquisition commitment fee of $5,250 and acquisition costs of $1,871 . MPR undertakes related party transactions in the normal course of business with the 50% owned NBSK pulp mill with whom $6,044 has been incurred primarily for the purchase of pulp. MPR also transacts with the 50% owned logging operation and as of December 31, 2018, had a balance of $2,343 owing to the logging operation related to the purchase of chips and logs. Santanol On October 18, 2018, the Company acquired Santanol for $35,724 cash. Santanol owns and leases existing Indian sandalwood plantations and a processing extraction plant in Australia. The acquisition presents the opportunity to expand the Company’s operations to include plantation harvesting as well as production and marketing of solid wood chemical extractives. The following summarizes the Company's allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Santanol at the acquisition date: Purchase Price Allocation Net working capital $ 5,111 Property, plant and equipment 18,490 Sandalwood tree plantations (a) 12,123 Net assets acquired $ 35,724 (a) The fair value of the sandalwood tree plantations was determined using the discounted cash flows method using a rate of 10.5% . Santanol 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 Santanol's revenues and net loss included in the Consolidated Statement of Operations for the year ended December 31, 2018 was $478 and $907 , respectively. In the year ended December 31, 2018, $777 of acquisition related costs were recognized in selling, general and administrative expenses in the Consolidated Statement of Operations. Pro forma information related to acquisition of Santanol has not been included as it does not have a material effect on the Company's Consolidated Statements of Operations. |
The Company And Summary Of Sign
The Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
The Company And Summary Of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies Background Mercer International Inc. ("Mercer Inc.") is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Market. Since acquiring Mercer Peace River Pulp Ltd. (formally called Daishowa-Marubeni International Ltd.) ("MPR") in December 2018 it now owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50% joint venture interest in an NBSK pulp mill in Canada and owns one sawmill that also has a biomass power plant in Germany. In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars ("$"). 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. The Company owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in an NBSK pulp mill with West Fraser Timber Co. 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, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Restricted cash is comprised of cash deposits that are designated for the settlement of debt or which cannot be withdrawn without prior notice or penalty. 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. The Company maintains an allowance for doubtful accounts at an amount estimated to cover the potential losses on certain 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 and financial position of the debtors. For certain customers the Company receives a letter of credit prior to shipping its product. 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. 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 costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant, and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. 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 Statement of Operations as incurred. Leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item are capitalized at the present value of the minimum lease payments. Capital leases are depreciated over the lease term. Operating lease payments are recognized as an expense in the Consolidated Statement of Operations on a straight-line basis over the lease term. 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 The Company reviews its long-lived assets, consisting of property, plant and equipment and finite-life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. To determine recoverability, the Company compares the carrying value of the assets to the estimated future undiscounted cash flows. Measurement of an impairment loss for long-lived assets held for use is based on the fair value of the asset. Government Grants The Company records investment grants from federal 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 Sheet. 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 Statement of Operations when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. 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. 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 Intangible and Other Assets Note. Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost which includes both direct and indirect costs of growing and harvesting the sandalwood trees and net realizable value. The cost of the sandalwood plantations is recorded in intangible assets and other and the cost of the harvested sandalwood is recorded in inventory in the Consolidated Balance Sheets. Pension Plans The Company maintains defined benefit pension plans for its MPR employees and its salaried employees at Celgar which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected benefit method prorated on services. 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 at the beginning of the year. The Company recognizes the net funded status of the plan. In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are charged against earnings in the Consolidated Statement of Operations. 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 shareholders’ equity. 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 costs and expenses while those related to non-operating activities are included in other income (expenses) in the Consolidated Statement 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 shareholders’ equity. 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 terms are defined in the contract and payment is typically due within three months after control has transferred to the customer. The contracts do not have a significant financing component. The Company has elected to exclude value added, sales and other taxes it collects 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 Business 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 ships 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. 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 to 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. By-Product 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. Chemicals and wood residuals from our German mills are sold into the European market direct to the customer and hav e shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized as revenue in the Consolidated Statement of Operations. Shipping and handling costs incurred by the Company are included in cost of sales, excluding depreciation and amortization in the Consolidated Statement 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 Statement of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units ("PSUs") which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management’s best estimate. The final determination of the number of shares to be granted is made by the Company’s board of directors. 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 is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. 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 Sheet with the changes in fair value recognized in other income (expenses) in the Consolidated Statement 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 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 Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding in the period. Diluted net income 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, restricted shares, restricted share units, performance shares and PSUs. Business Combinations The Company uses the acquisition method in accounting for a business combination. 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 Statement of Operations. New Accounting Pronouncements Accounting Pronouncements Implemented In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue Recognition – Revenue from Contracts with Customers that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. Additionally, the update provides presentation and disclosure requirements which are more detailed in regards to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted ASU 2014-09 as at January 1, 2018 using the modified retrospective method. This update does not change the amount or timing of when the Company recognizes revenue as the majority of the Company's revenue arises from contracts with customers in which the sale of goods is the main performance obligation. The Company's revised revenue recognition disclosure has been included in the Significant Accounting Policies and the Business Segment Information Note. In March 2017, the FASB issued Accounting Standards Update 2017-07 ("ASU 2017-07"), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 as at January 1, 2018. For the year ended December 31, 2018, $1,132 of the net benefit cost has been recorded in other income (expenses) in the Consolidated Statement of Operations. For the years ended December 31, 2017 and December 31, 2016, $1,500 and $1,381 , respectively, has been reclassified from cost of sales, excluding depreciation and amortization to other income (expenses) in the Consolidated Statement of Operations. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the Tax Cuts and Jobs Act (the "Act"). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has elected to treat the GILTI inclusions as a period cost. In August 2018, the FASB issued Accounting Standards Update 2018-14 ("ASU 2018-14"), Compensation - Retirement Benefits - Defined Benefit Plans - General which both modifies and clarifies certain disclosure requirements for defined benefit pension and post-retirement plans. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company elected to early adopt ASU 2018-14 and the revised disclosure has been included in the Pension and Other Post-Retirement Benefit Obligations Note. Accounting Pronouncements Not Yet Implemented In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases ("ASU 2016-02") which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset ("ROU assets") and corresponding liability. In July 2018 the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases as well as Accounting Standards Update 2018-11, Leases: Targeted Improvements which further affect the guidance of ASU 2016-02. These updates are effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted at the beginning of an interim or annual reporting period. The Company will adopt these updates on January 1, 2019 using the available practical expedients. The standard will have a material impact on the Consolidated Balance Sheets, but is not expected to impact the Consolidated Statement of Operations. The most significant impact will be the recognition of ROU assets and lease liabilities for operating leases while the accounting for capital leases will remain substantially unchanged. Adoption of the standard will result in recognition of additional ROU assets and lease liabilities for operating leases of approximately $14,700 . In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This update is effective for fiscal years beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. The adoption of this update will not have an impact on the consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting which both clarifies and modifies accounting requirements relating to nonemployee share based payment transactions. The adoption of this update will not have an impact on the consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement which both modifies and clarifies the disclosure requirements for fair value measurement. This update is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this update will not have an impact on the current disclosure in the consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable December 31, 2018 2017 Trade, net of allowance of $nil (2017 – $18) $ 230,426 $ 186,008 Other 22,266 20,019 $ 252,692 $ 206,027 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories December 31, 2018 2017 Raw materials $ 103,983 $ 49,137 Finished goods 114,304 58,364 Spare parts and other 85,526 69,100 $ 303,813 $ 176,601 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Estimated Useful Lives (Years) December 31, 2018 2017 Land $ 54,832 $ 44,834 Buildings 10 - 50 251,408 187,738 Production and other equipment 25 1,698,132 1,556,242 2,004,372 1,788,814 Less: accumulated depreciation (975,115 ) (943,966 ) $ 1,029,257 $ 844,848 As at December 31, 2018 , property, plant and equipment was net of $211,532 of unamortized government investment grants ( 2017 – $243,164 ). As at December 31, 2018 , included in production and other equipment is equipment under capital leases which had gross amounts of $44,756 ( 2017 – $35,648 ), and accumulated depreciation of $15,963 ( 2017 – $13,954 ). During the year ended December 31, 2018 , production and other equipment totaling $12,145 was acquired under capital lease obligations ( 2017 – $145 ; 2016 – $17,792 ). 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 at December 31, 2018 , the Company had recorded $8,752 ( 2017 – $5,278 ) of asset retirement obligations in capital leases and other in the Consolidated Balance Sheet. |
Intangible and Other Assets
Intangible and Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible and Other Assets [Text Block] | Intangible and Other Assets Intangible assets as at December 31, 2018 and December 31, 2017, were comprised of the following: Estimated Useful Lives (Years) December 31, 2018 2017 Energy sales agreement 11 $ 17,234 $ 18,052 Timber cutting rights 30 34,139 — Software and other intangible assets 5 23,731 23,635 75,104 41,687 Less: accumulated amortization (21,177 ) (17,115 ) $ 53,927 $ 24,572 Other assets of $17,904 (2017 – $1,575 ) primarily relate to sandalwood tree plantations. |
Accounts Payable and Other
Accounts Payable and Other | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Accounts Payable and Other December 31, 2018 2017 Trade payables $ 36,333 $ 36,151 Accrued expenses 95,936 67,528 Interest payable 16,861 10,093 Income tax payable 29,818 4,324 Legal cost award payable (Note 17(c)) 6,951 — Dividends payable — 8,126 Other 8,585 7,335 $ 194,484 $ 133,557 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2018 2017 2022 Senior Notes, principal amount, $100,000 (a) $ 98,918 $ 394,565 2024 Senior Notes, principal amount, $250,000 (a) 246,154 245,398 2025 Senior Notes, principal amount, $350,000 (a) 342,761 — 2026 Senior Notes, principal amount, $300,000 (a) 294,588 293,773 Credit facilities €200 million joint revolving credit facility (b) 58,968 — C$40 million revolving credit facility (c) — — €70 million revolving credit facility — 25,185 €2.6 million demand loan (d) — — $ 1,041,389 $ 958,921 As at December 31, 2018 , the maturities of the principal portion of debt are as follows: 2019 $ — 2020 — 2021 — 2022 100,000 2023 58,968 Thereafter 900,000 $ 1,058,968 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 at December 31, 2018 , the Company is in compliance with the terms of its debt agreements. (a) On December 7, 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 ("2025 Senior Notes"). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offerings were $342,682 after deducting the underwriter's discount and offering expenses. The net proceeds, together with cash on hand, were used to finance the acquisition of MPR. On December 20, 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 ("2026 Senior Notes"). The 2026 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $293,795 , after deducting the underwriter's discount and offering expenses. In January 2018, the Company used the net proceeds of the 2026 Senior Notes, together with cash on hand, to purchase $300,000 in aggregate principal amount of 2022 Senior Notes (herein defined below). In connection with this redemption the Company recorded a loss on settlement of debt of $21,515 in the Consolidated Statement of Operations. As at December 31, 2017, the total cash used to redeem the 2022 Senior Notes was classified as restricted cash and the carrying value of the 2022 Senior Notes was classified as a current liability in the Consolidated Balance Sheet. On February 3, 2017, the Company issued $225,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 ("2024 Senior Notes") and on March 16, 2017, the Company issued an additional $25,000 in aggregate principal amount of its 2024 Senior Notes. The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offerings were $244,711 , after deducting the underwriter's discount and offering expenses. The net proceeds from the 2024 Senior Notes, together with cash on hand, were used to redeem $227,000 of remaining aggregate principal amount of outstanding senior notes due 2019, to finance the acquisition of the Friesau mill, a sawmill and biomass power plant near Friesau, Germany and for general working capital purposes. In connection with the redemption the Company recorded a loss on settlement of debt of $10,696 in the Consolidated Statement of Operations. On November 26, 2014 , the Company issued $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ("2022 Senior Notes" and collectively with the 2024 Senior Notes, 2025 Senior Notes and 2026 Senior Notes, the “Senior Notes”). The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are senior in right of payment to any current or future subordinated indebtedness of the Company. The Senior Notes are effectively junior in right of payment to all existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company’s subsidiaries. The Company may redeem all or a part of the 2025 Senior Notes or 2026 Senior Notes, upon not less than 10 days ’ or more than 60 days ’ notice and the Company may redeem all or a part of the 2024 Senior Notes or 2022 Senior Notes, upon not less than 30 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: 2022 Senior Notes 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage December 1, 2018 103.875 % February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % December 1, 2019 101.938 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % December 1, 2020 and thereafter 100.000 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % (b) A €200.0 million joint revolving credit facility with all of the Company’s German mills that matures in December 2023. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.05% to 2.00% dependent on conditions including but not limited to a prescribed leverage ratio. As at December 31, 2018, approximately €51.5 million ( $58,968 ) of this facility was drawn and accruing interest at a rate of 1.05% and approximately €11.9 million ( $13,582 ) of this facility was supporting bank guarantees leaving approximately €136.6 million ( $156,450 ) available. (c) A C$40.0 million revolving credit facility at the Celgar mill that matures in July 2023. Borrowings under the facility are collateralized by the mill’s inventory, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill’s inventory and accounts receivable. When the borrowing capacity is less than 25% of the total facility the Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime and the U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . When the borrowing capacity is greater than or equal to 25% of the total facility, the respective bankers acceptance or LIBOR margins are reduced by 0.25% and the Canadian Prime or U.S. base margins are reduced by 0.125% . As at December 31, 2018 , approximately C$1.7 million ( $1,245 ) was supporting letters of credit and approximately C$38.3 million ( $28,076 ) was available. (d) A €2.6 million demand loan at the Rosenthal mill 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 at December 31, 2018 , approximately €2.6 million ( $2,922 ) of this facility was supporting bank guarantees leaving approximately $nil available. (e) In 2019, MPR entered into a C$60.0 million revolving credit facility that matures in February 2024. 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 1.25% to 1.50% per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50% , a designated LIBOR rate plus 1.00% and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.50% per annum. The facility is secured by, among other things, the mill’s inventories and receivables. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Included in pension and other post-retirement benefit obligations are amounts related to Celgar and from the date of acquisition MPR. 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 defined benefit plans, in aggregate for the year ended December 31, 2018 were as follows: 2018 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2017 $ 38,330 $ 20,788 $ 59,118 Benefit obligation transferred, MPR 62,545 — 62,545 Service cost 269 467 736 Interest cost 1,409 709 2,118 Benefit payments (2,346 ) (594 ) (2,940 ) Actuarial losses (gains) 456 (5,065 ) (4,609 ) Foreign currency exchange rate changes (4,667 ) (1,446 ) (6,113 ) Benefit obligation, December 31, 2018 95,996 14,859 110,855 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2017 37,057 — 37,057 Fair value of plan assets transferred, MPR 52,740 — 52,740 Actual returns 378 — 378 Contributions 539 594 1,133 Benefit payments (2,346 ) (594 ) (2,940 ) Foreign currency exchange rate changes (4,246 ) — (4,246 ) Fair value of plan assets, December 31, 2018 84,122 — 84,122 Funded status, December 31, 2018 $ (11,874 ) $ (14,859 ) $ (26,733 ) Components of the net benefit cost recognized Service cost $ 269 $ 467 $ 736 Interest cost 1,409 709 2,118 Expected return on plan assets (1,694 ) — (1,694 ) Amortization of unrecognized items 915 (207 ) 708 Net benefit costs $ 899 $ 969 $ 1,868 Information about Celgar's defined benefit plans, in aggregate for the year ended December 31, 2017 was as follows: 2017 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2016 $ 35,125 $ 23,928 $ 59,053 Service cost 95 584 679 Interest cost 1,339 947 2,286 Benefit payments (2,222 ) (706 ) (2,928 ) Actuarial losses (gains) 1,499 (5,484 ) (3,985 ) Foreign currency exchange rate changes 2,494 1,519 4,013 Benefit obligation, December 31, 2017 38,330 20,788 59,118 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2016 33,011 — 33,011 Actual returns 2,564 — 2,564 Contributions 1,325 706 2,031 Benefit payments (2,222 ) (706 ) (2,928 ) Foreign currency exchange rate changes 2,379 — 2,379 Fair value of plan assets, December 31, 2017 37,057 — 37,057 Funded status, December 31, 2017 (1) $ (1,273 ) $ (20,788 ) $ (22,061 ) Components of the net benefit cost recognized Service cost $ 95 $ 584 $ 679 Interest cost 1,339 947 2,286 Expected return on plan assets (2,012 ) — (2,012 ) Amortization of unrecognized items 1,074 152 1,226 Net benefit costs $ 496 $ 1,683 $ 2,179 (1) The total of $22,141 in the Consolidated Balance Sheet also includes pension liabilities of $80 relating to employees at the Company’s Rosenthal mill. The amortization of unrecognized items relates to net actuarial losses and prior service costs. The Company anticipates that it will make contributions to the defined benefit plans of approximately $3,282 in 2019. Estimated future benefit payments under these plans are as follows: Pension Other Post-Retirement Benefits 2019 $ 3,922 $ 660 2020 4,095 688 2021 4,258 713 2022 4,449 735 2023 4,610 759 2024 - 2028 25,953 4,131 Weighted Average Assumptions The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs were as follows for Celgar's defined benefit plan: December 31, 2018 2017 2016 Benefit obligations Discount rate 3.14 % 3.50 % 3.80 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.50 % 3.80 % 4.00 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 4.40 % 6.00 % 6.40 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs were as follows for MPR's defined benefit plan: December 31, 2018 Benefit obligations Discount rate 3.90 % Rate of compensation increase 2.75 % Net benefit cost for year ended Discount rate 3.95 % Rate of compensation increase 3.25 % Expected rate of return on plan assets 5.15 % 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 of expected pension and other post-retirement benefit obligations. 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 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 were as follows: December 31, 2018 2017 Health care cost trend rate assumed for next year 5.50 % 6.00 % Rate to which the cost trend is assumed to decline to (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2021 2021 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 plan 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, 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 During 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 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 manager’s stated investment strategy 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 group and the investment category targets noted above. In addition, the Company has one independent investment manager. The Company has concluded that there are no significant concentrations of risk. The following table presents the Celgar and MPR defined benefit pension plans' assets fair value measurements as at December 31, 2018 under the fair value hierarchy: Fair value measurements as at December 31, 2018 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 31,230 $ — $ — $ 31,230 Debt securities, including buy-in annuities 49,724 — — 49,724 Cash 2,054 — — 2,054 Other 1,114 — — 1,114 Total assets $ 84,122 $ — $ — $ 84,122 Defined Contribution Plan 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. MPR also has defined contribution plans available to most of its employees. During the year ended December 31, 2018 , the Company made contributions of $1,024 ( 2017 – $959 ; 2016 – $743 ). 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. Contributions during the year ended December 31, 2018 totaled $2,218 ( 2017 – $1,969 ; 2016 – $1,944 ). Plan details are included in the following table: Provincially Registered Plan Number Expiration Date of Collective Bargaining Agreement Are the Company’s Contributions Greater Than 5% of Total Contributions? Legal name 2018 2017 2016 The Pulp and Paper Industry Pension Plan P085324 April 30, 2021 No No No |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes by taxing jurisdiction was as follows: Year Ended December 31, 2018 2017 2016 U.S. $ (69,202 ) $ (41,635 ) $ (32,511 ) Foreign 246,472 145,570 91,975 $ 177,270 $ 103,935 $ 59,464 The net income tax provision recognized in the Consolidated Statement of Operations for the years ended December 31, 2018 , 2017 and 2016 was related to foreign tax jurisdictions. 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. 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 at December 31, 2018 . 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 2015 tax year for all but two German entities. For one entity the German tax authorities have completed examinations up to and including the 2013 tax year and for the other entity the German tax authorities have completed examinations up to and including the 2007 tax year. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2015 and 2014, 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 Sheet related to unrecognized tax benefits was $nil as at December 31, 2018 ( 2017 – $nil ). The Company recognizes interest and penalties related to unrecognized tax benefits in provision for income taxes in the Consolidated Statement of Operations. During the year ended December 31, 2018 , the Company recognized $nil in interest and penalties ( 2017 – $nil ; 2016 – $nil ). The Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes included, but were not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018, a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as at December 31, 2017, and a minimum tax on certain foreign earnings. As a result of the reduction of the corporate tax rate, the Company revalued its U.S. net deferred tax asset balance, excluding after tax credits, as at December 31, 2017. Based on this revaluation, the net deferred tax asset was reduced by $27,445 and the Company recorded an offsetting reduction to the valuation allowance as the Company has a full valuation allowance against its U.S. deferred tax assets. The amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was $3,473 based on cumulative foreign earnings of $22,398 . The Company had loss carryforwards which were used to offset the tax.The final accounting for these impacts were finalized upon completion of the 2017 tax return and there were no material changes from the estimates reported as at December 31, 2017. The minimum tax on certain foreign earnings includes a provision to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries. The GILTI provision resulted in additional income for tax of $245,899 . The Company had loss carryforwards which were used to offset the income. The Company has calculated its best estimate of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. Differences between the U.S. Federal Statutory and the Company’s effective rates are as follows: Year Ended December 31, 2018 2017 2016 U.S. Federal statutory rate 21% 35% 35% U.S. Federal statutory rate on income before provision for income taxes $ (37,227 ) $ (36,377 ) $ (20,812 ) Tax differential on foreign income (17,511 ) 10,398 5,822 Effect of foreign earnings (1) (51,639 ) (3,584 ) (13,850 ) Change in undistributed earnings — 13,297 (13,297 ) Change in tax rate — (26,627 ) — Valuation allowance 64,573 5,750 9,188 Tax benefit of partnership structure 4,208 4,937 4,933 Non-taxable foreign subsidies 2,908 2,735 2,118 True-up of prior year taxes (9,877 ) (3,685 ) (980 ) Foreign exchange on valuation allowance (878 ) 1,953 632 Foreign exchange on settlement of debt 879 1,342 3,150 Other (4,117 ) (3,591 ) (1,425 ) $ (48,681 ) $ (33,452 ) $ (24,521 ) Comprised of: Current income tax provision $ (32,085 ) $ (11,396 ) $ (7,712 ) Deferred income tax provision (16,596 ) (22,056 ) (16,809 ) $ (48,681 ) $ (33,452 ) $ (24,521 ) (1) Includes the impact of the GILTI provision. Deferred income tax assets and liabilities are composed of the following: December 31, 2018 2017 German tax loss carryforwards $ 35,364 $ 52,415 U.S. tax loss carryforwards and credits 8,982 47,028 Canadian tax loss carryforwards — 5,672 Basis difference between income tax and financial reporting with respect to operating pulp mills (138,541 ) (73,665 ) Long-term debt (7,232 ) (7,655 ) Payable and accrued expenses 4,582 4,167 Deferred pension liability 9,657 6,122 Capital leases 8,269 5,879 Research and development expense pool 3,150 3,170 Other (4,848 ) 1,971 (80,617 ) 45,104 Valuation allowance (11,116 ) (75,689 ) Net deferred income tax liability $ (91,733 ) $ (30,585 ) Comprised of: Deferred income tax asset $ 1,374 $ 1,376 Deferred income tax liability (93,107 ) (31,961 ) Net deferred income tax liability $ (91,733 ) $ (30,585 ) The following table details the scheduled expiration dates of the Company’s net operating loss, interest and income tax credit carryforwards as at December 31, 2018 : Amount Expiration Date Germany Net operating loss $ 115,700 Indefinite Interest $ 69,000 Indefinite U.S. Net operating loss $ 8,900 2037 Income tax credits $ 7,100 2020 – 2027 Canada Scientific research and experimental development tax credits $ 4,300 2030 – 2036 Australia Net operating loss $ 970 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. The following table summarizes the changes in valuation allowances related to net deferred tax assets: 2018 2017 Balance as at January 1 $ 75,689 $ 81,439 Additions (reversals) U.S. (37,709 ) (3,060 ) Canada (26,384 ) (4,643 ) Australia 398 — The impact of changes in foreign exchange rates (878 ) 1,953 Balance as at December 31 $ 11,116 $ 75,689 As at December 31, 2018 , the Company has fully recognized all deferred tax assets for its German and Canadian entities and has a full valuation allowance against the deferred tax assets for its U.S. and Australian entities. The Company has not recognized a tax liability on the undistributed earnings of foreign subsidiaries as at December 31, 2018 because these earnings are expected to be permanently reinvested outside the U.S. or repatriated without incurring a tax liability. As at December 31, 2018 , the cumulative amount of undistributed earnings upon which U.S. income taxes have not been provided was approximately $413,700 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends During the years ended December 31, 2018 and 2017 the Company’s board of directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 15, 2018 $ 0.125 $ 8,147 May 3, 2018 0.125 8,150 July 26, 2018 0.125 8,150 October 25, 2018 0.125 8,150 $ 0.500 $ 32,597 Date Declared Dividend Per Amount February 9, 2017 $ 0.115 $ 7,472 April 27, 2017 0.115 7,477 July 27, 2017 0.115 7,477 October 26, 2017 0.125 8,127 $ 0.470 $ 30,553 In February 2019 , the Company’s board of directors declared a quarterly dividend of $0.125 per common share. Payment of the dividend will be made on April 3, 2019 to all shareholders of record on March 27, 2019 . Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Share Capital Preferred shares The Company has authorized 50,000,000 preferred shares ( 2017 – 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 at December 31, 2018 , no preferred shares had been issued by the Company. Stock Based Compensation In June 2010, the Company adopted a stock incentive plan which provides for options, restricted stock rights, restricted shares, performance shares, PSUs and stock appreciation rights to be awarded to employees, consultants and non-employee directors. During the year ended December 31, 2018 , there were no issued and outstanding options, restricted stock rights, performance shares or stock appreciation rights. As at December 31, 2018 , after factoring in all allocated shares, there remain approximately 2.8 million common shares available for grant. PSUs PSUs comprise rights to receive common shares at a future date that are contingent on the Company and the grantee achieving certain performance objectives. The performance objective period is generally three years. For the year ended December 31, 2018 , the Company recognized an expense of $3,422 related to PSUs ( 2017 – $2,437 ; 2016 – $4,210 ). The following table summarizes PSU activity during the year: Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding as at January 1, 2018 1,867,158 $ 9.28 Granted 652,548 12.75 Vested and issued (153,243 ) 13.19 Forfeited (330,455 ) 12.39 Outstanding as at December 31, 2018 2,036,008 $ 9.59 The weighted-average grant date fair value per unit of all PSUs granted in 2017 and 2016 was $12.00 and $6.04 , respectively. The total fair value of PSUs vested and issued in 2018 , 2017 and 2016 was $1,992 , $3,445 and $1,382 , respectively. Restricted Shares Restricted shares generally vest at the end of one year. Expense recognized for the year ended December 31, 2018 was $518 ( 2017 – $453 ; 2016 – $449 ). As at December 31, 2018 , the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $217 which will be amortized over the remaining vesting periods. The following table summarizes restricted share activity during the year: Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding as at January 1, 2018 43,635 $ 11.80 Granted 31,130 16.70 Vested and issued (43,635 ) 11.80 Outstanding as at December 31, 2018 31,130 $ 16.70 The weighted-average grant date fair value per share of all restricted shares granted in 2017 and 2016 was $11.80 and $9.41 , respectively. The total fair value of restricted shares vested and issued in 2018 , 2017 and 2016 was $703 , $437 and $697 , respectively. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Year Ended December 31, 2018 2017 2016 Net income Basic and diluted $ 128,589 $ 70,483 $ 34,943 Net income per common share Basic $ 1.97 $ 1.09 $ 0.54 Diluted $ 1.96 $ 1.08 $ 0.54 Weighted average number of common shares outstanding: Basic (1) 65,133,467 64,915,955 64,631,491 Effect of dilutive shares: PSUs 619,411 458,236 447,465 Restricted shares 17,962 18,914 19,309 Diluted 65,770,840 65,393,105 65,098,265 (1) For the year ended December 31, 2018 , the basic weighted average number of common shares outstanding excludes 31,130 restricted shares which have been issued, but have not vested as at December 31, 2018 ( 2017 – 43,635 restricted shares; 2016 – 38,000 restricted shares). The calculation of diluted net income per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income per common share. There were no anti-dilutive instruments for the years ended December 31, 2018 , 2017 and 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post-Retirement Benefit Items Unrealized Gains / Losses on Marketable Securities Total Balance as at December 31, 2016 $ (170,592 ) $ (14,663 ) $ (14 ) $ (185,269 ) Other comprehensive income (loss) before reclassifications 120,509 4,537 (4 ) 125,042 Amounts reclassified from accumulated other comprehensive loss — 1,226 — 1,226 Other comprehensive income (loss) 120,509 5,763 (4 ) 126,268 Balance as at December 31, 2017 (50,083 ) (8,900 ) (18 ) (59,001 ) Other comprehensive income (loss) before reclassifications (76,920 ) 7,022 21 (69,877 ) Amounts reclassified from accumulated other comprehensive loss — 708 — 708 Other comprehensive income (loss) (76,920 ) 7,730 21 (69,169 ) Balance as at December 31, 2018 $ (127,003 ) $ (1,170 ) $ 3 $ (128,170 ) |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company is managed based on the primary products it manufactures: pulp and wood products. Accordingly, the Company's four pulp mills and its 50% interest in the NBSK pulp mill are aggregated into the pulp business segment, and the Friesau mill is a separate reportable business segment, wood products. The Company's sandalwood business is included in Corporate and Other as it does not meet the criteria to be reported as a separate segment. None of the income or loss items following operating income in the Company's Consolidated Statement of Operations are allocated to the segments, since those items are reviewed separately by management. Information about certain segment data for the years ended December 31, 2018, 2017 and 2016, was as follows: December 31, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Operating income (loss) $ 274,356 $ 6,203 $ (12,692 ) $ 267,867 Depreciation and amortization $ 87,628 $ 8,485 $ 616 $ 96,729 Purchase of property, plant and equipment $ 66,207 $ 20,682 $ 123 $ 87,012 Total assets (1) $ 1,698,071 $ 131,754 $ 145,910 $ 1,975,735 Revenues by major products Pulp $ 1,190,588 $ — $ — $ 1,190,588 Lumber — 168,663 — 168,663 Energy and chemicals 77,616 10,831 478 88,925 Wood residuals — 9,542 — 9,542 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Revenues by geographical markets U.S. $ 55,692 $ 52,770 $ — $ 108,462 Germany 499,620 73,854 — 573,474 China 291,657 — — 291,657 Other countries 421,235 62,412 478 484,125 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 (1) Total assets for the pulp segment includes the Company's $62,574 investment in the 50% owned NBSK pulp mill. December 31, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,071,715 $ 97,430 $ — $ 1,169,145 Operating income (loss) $ 171,279 $ 5,610 $ (8,335 ) $ 168,554 Depreciation and amortization $ 80,833 $ 4,060 $ 401 $ 85,294 Purchase of property, plant and equipment $ 54,534 $ 3,197 $ 184 $ 57,915 Total assets $ 1,253,545 $ 116,320 $ 354,845 $ 1,724,710 Revenues by major products Pulp $ 979,645 $ — $ — $ 979,645 Lumber — 82,176 — 82,176 Energy and chemicals 92,070 8,872 — 100,942 Wood residuals — 6,382 — 6,382 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 Revenues by geographical markets U.S. $ 23,572 $ 20,060 $ — $ 43,632 Germany 421,895 47,146 — 469,041 China 292,231 — — 292,231 Other countries 334,017 30,224 — 364,241 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 December 31, 2016 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 931,623 $ — $ — $ 931,623 Operating income (loss) $ 124,594 $ — $ (9,470 ) $ 115,124 Depreciation and amortization $ 71,476 $ — $ 508 $ 71,984 Purchase of property, plant and equipment $ 42,462 $ — $ 64 $ 42,526 Revenues by major products Pulp $ 847,328 $ — $ — $ 847,328 Lumber — — — — Energy and chemicals 84,295 — — 84,295 Wood residuals — — — — Total revenues $ 931,623 $ — $ — $ 931,623 Revenues by geographical markets U.S. $ 26,985 $ — $ — $ 26,985 Germany 401,802 — — 401,802 China 221,773 — — 221,773 Other countries 281,063 — — 281,063 Total revenues $ 931,623 $ — $ — $ 931,623 Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the wood products 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 wood products segment for use in energy production. For the year ended December 31, 2018, the pulp segment sold $1,343 of residual fuel to the wood products segment (2017 – $1,350 ) and the wood products segment sold $18,537 of residual fiber to the pulp segment (2017 – $12,697 ). The following table presents total long-lived assets by geographic area based on location of the asset: December 31, 2018 2017 Germany $ 655,260 $ 681,141 Canada 355,817 163,707 Australia 18,180 — $ 1,029,257 $ 844,848 In 2018 , one customer for the pulp segment through several of their operations accounted for 13% of the Company’s total revenues ( 2017 – one customer through several of their operations accounted for 13% ; 2016 – two customers through several of their operations accounted for 19% and 10% ). |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Due to their short-term maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and accounts payable and other approximates their fair value. The carrying value of the revolving credit facilities classified as Level 2 approximates their 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 following tables present a summary of the Company’s outstanding financial instruments and their estimated fair values under the fair value hierarchy: Fair value measurements as at December 31, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 58,968 $ — $ 58,968 Senior notes — 965,000 — 965,000 $ — $ 1,023,968 $ — $ 1,023,968 Fair value measurements as at December 31, 2017 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 25,185 $ — $ 25,185 Senior notes — 989,125 — 989,125 $ — $ 1,014,310 $ — $ 1,014,310 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 the sale of pulp, lumber and other wood residuals 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. Concentrations of credit risk on the sale of pulp, lumber and other wood residuals are with customers and agents based primarily in Germany, China and Italy. The carrying amount of cash and cash equivalents of $240,491 and accounts receivable of $252,692 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, 2018 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments Minimum lease payments, primarily for vehicles, and plant and equipment under capital and non-cancellable operating leases and the present value of net minimum payments as at December 31, 2018 are as follows: Capital Leases Operating Leases 2019 $ 6,302 $ 3,309 2020 3,601 2,963 2021 3,441 2,717 2022 3,278 2,557 2023 3,410 2,057 Thereafter 17,025 5,360 Total 37,057 $ 18,963 Less: imputed interest 7,477 Total present value of minimum capitalized payments 29,580 Less: current portion of capital lease obligations 4,911 Long-term capital lease obligations $ 24,669 The current portion of the capital lease obligations was included in accounts payable and other and the long-term portion was included in capital leases and other in the Consolidated Balance Sheet. Rent expense under operating leases was $1,413 for the year ended December 31, 2018 ( 2017 – $1,697 ; 2016 – $1,393 ). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) 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. (b) 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. (c) In March 2018, the Company announced it had received the decision of the tribunal in respect of its previously initiated claim in January 2012 against the Government of Canada under the North American Free Trade Agreement ("NAFTA"). The basis of the claim was that the Celgar mill had received discriminatory treatment regarding its ability to purchase and sell energy compared to other pulp mills and entities that generate and sell electricity within the Province of British Columbia. The tribunal ruled that there was no violation of NAFTA and as is customary in these matters, the tribunal awarded costs to the Government of Canada of approximately $6,951 . The Company settled this amount in January 2019. |
The Company And Summary Of Si_2
The Company And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Background | Background Mercer International Inc. ("Mercer Inc.") is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Market. Since acquiring Mercer Peace River Pulp Ltd. (formally called Daishowa-Marubeni International Ltd.) ("MPR") in December 2018 it now owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50% joint venture interest in an NBSK pulp mill in Canada and owns one sawmill that also has a biomass power plant in Germany. In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars ("$"). 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. The Company owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in an NBSK pulp mill with West Fraser Timber Co. 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, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Restricted cash is comprised of cash deposits that are designated for the settlement of debt or which cannot be withdrawn without prior notice or penalty. |
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. The Company maintains an allowance for doubtful accounts at an amount estimated to cover the potential losses on certain 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 and financial position of the debtors. For certain customers the Company receives a letter of credit prior to shipping its product. |
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. 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 costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant, and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. 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 Statement of Operations as incurred. Leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item are capitalized at the present value of the minimum lease payments. Capital leases are depreciated over the lease term. Operating lease payments are recognized as an expense in the Consolidated Statement of Operations on a straight-line basis over the lease term. 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 | Impairment of Long-Lived Assets The Company reviews its long-lived assets, consisting of property, plant and equipment and finite-life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. To determine recoverability, the Company compares the carrying value of the assets to the estimated future undiscounted cash flows. Measurement of an impairment loss for long-lived assets held for use is based on the fair value of the asset. |
Government Grants | Government Grants The Company records investment grants from federal 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 Sheet. 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 Statement of Operations when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. 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. 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 Intangible and Other Assets Note. |
Sandalwood Tree Plantations | Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost which includes both direct and indirect costs of growing and harvesting the sandalwood trees and net realizable value. The cost of the sandalwood plantations is recorded in intangible assets and other and the cost of the harvested sandalwood is recorded in inventory in the Consolidated Balance Sheets. |
Pension Plans | Pension Plans The Company maintains defined benefit pension plans for its MPR employees and its salaried employees at Celgar which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected benefit method prorated on services. 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 at the beginning of the year. The Company recognizes the net funded status of the plan. In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are charged against earnings in the Consolidated Statement 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 shareholders’ equity. 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 costs and expenses while those related to non-operating activities are included in other income (expenses) in the Consolidated Statement 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 shareholders’ equity. |
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 terms are defined in the contract and payment is typically due within three months after control has transferred to the customer. The contracts do not have a significant financing component. The Company has elected to exclude value added, sales and other taxes it collects 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 Business 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 ships 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. 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 to 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. By-Product 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. Chemicals and wood residuals from our German mills are sold into the European market direct to the customer and hav e shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized as revenue in the Consolidated Statement of Operations. Shipping and handling costs incurred by the Company are included in cost of sales, excluding depreciation and amortization in the Consolidated Statement 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 Statement of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units ("PSUs") which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management’s best estimate. The final determination of the number of shares to be granted is made by the Company’s board of directors. 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 is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. |
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 Sheet with the changes in fair value recognized in other income (expenses) in the Consolidated Statement 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 Per Common Share | Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding in the period. Diluted net income 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, restricted shares, restricted share units, performance shares and PSUs. |
Business Combinations | Business Combinations The Company uses the acquisition method in accounting for a business combination. 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 Statement of Operations. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Implemented In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue Recognition – Revenue from Contracts with Customers that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. Additionally, the update provides presentation and disclosure requirements which are more detailed in regards to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted ASU 2014-09 as at January 1, 2018 using the modified retrospective method. This update does not change the amount or timing of when the Company recognizes revenue as the majority of the Company's revenue arises from contracts with customers in which the sale of goods is the main performance obligation. The Company's revised revenue recognition disclosure has been included in the Significant Accounting Policies and the Business Segment Information Note. In March 2017, the FASB issued Accounting Standards Update 2017-07 ("ASU 2017-07"), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 as at January 1, 2018. For the year ended December 31, 2018, $1,132 of the net benefit cost has been recorded in other income (expenses) in the Consolidated Statement of Operations. For the years ended December 31, 2017 and December 31, 2016, $1,500 and $1,381 , respectively, has been reclassified from cost of sales, excluding depreciation and amortization to other income (expenses) in the Consolidated Statement of Operations. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the Tax Cuts and Jobs Act (the "Act"). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has elected to treat the GILTI inclusions as a period cost. In August 2018, the FASB issued Accounting Standards Update 2018-14 ("ASU 2018-14"), Compensation - Retirement Benefits - Defined Benefit Plans - General which both modifies and clarifies certain disclosure requirements for defined benefit pension and post-retirement plans. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company elected to early adopt ASU 2018-14 and the revised disclosure has been included in the Pension and Other Post-Retirement Benefit Obligations Note. Accounting Pronouncements Not Yet Implemented In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases ("ASU 2016-02") which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset ("ROU assets") and corresponding liability. In July 2018 the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases as well as Accounting Standards Update 2018-11, Leases: Targeted Improvements which further affect the guidance of ASU 2016-02. These updates are effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted at the beginning of an interim or annual reporting period. The Company will adopt these updates on January 1, 2019 using the available practical expedients. The standard will have a material impact on the Consolidated Balance Sheets, but is not expected to impact the Consolidated Statement of Operations. The most significant impact will be the recognition of ROU assets and lease liabilities for operating leases while the accounting for capital leases will remain substantially unchanged. Adoption of the standard will result in recognition of additional ROU assets and lease liabilities for operating leases of approximately $14,700 . In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This update is effective for fiscal years beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. The adoption of this update will not have an impact on the consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting which both clarifies and modifies accounting requirements relating to nonemployee share based payment transactions. The adoption of this update will not have an impact on the consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement which both modifies and clarifies the disclosure requirements for fair value measurement. This update is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this update will not have an impact on the current disclosure in the consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Purchase Price Allocations | The following summarizes the Company's allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Santanol at the acquisition date: Purchase Price Allocation Net working capital $ 5,111 Property, plant and equipment 18,490 Sandalwood tree plantations (a) 12,123 Net assets acquired $ 35,724 (a) The fair value of the sandalwood tree plantations was determined using the discounted cash flows method using a rate of 10.5% . The following summarizes the Company's preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed from MPR at the acquisition date: Purchase Price Allocation Current assets $ 135,305 Property, plant and equipment 207,743 Investment in joint ventures 62,672 Amortizable intangible assets, timber cutting rights (a) 34,810 Other long-term assets 392 Total assets acquired 440,922 Current liabilities 35,578 Pension obligations 9,747 Deferred income tax 47,912 Other long-term liabilities 3,097 Total liabilities assumed 96,334 Net assets acquired $ 344,588 (a) The timber cutting rights are being amortized on a straight line basis over 30 years. The fair value of the timber cutting rights was determined through the market approach utilizing comparable market data. The values were then discounted at a rate of 12.5% for 30 years to arrive at the fair value. |
Pro Forma Information | The following unaudited pro forma information represents the Company's results of operations as if the acquisition of MPR had occurred on January 1, 2017. 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, 2018 2017 Revenues $ 1,906,697 $ 1,503,446 Net income $ 189,431 $ 42,267 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | December 31, 2018 2017 Trade, net of allowance of $nil (2017 – $18) $ 230,426 $ 186,008 Other 22,266 20,019 $ 252,692 $ 206,027 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Components of Inventory | December 31, 2018 2017 Raw materials $ 103,983 $ 49,137 Finished goods 114,304 58,364 Spare parts and other 85,526 69,100 $ 303,813 $ 176,601 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Estimated Useful Lives (Years) December 31, 2018 2017 Land $ 54,832 $ 44,834 Buildings 10 - 50 251,408 187,738 Production and other equipment 25 1,698,132 1,556,242 2,004,372 1,788,814 Less: accumulated depreciation (975,115 ) (943,966 ) $ 1,029,257 $ 844,848 |
Intangible and Other Assets (Ta
Intangible and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible and Other Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets as at December 31, 2018 and December 31, 2017, were comprised of the following: Estimated Useful Lives (Years) December 31, 2018 2017 Energy sales agreement 11 $ 17,234 $ 18,052 Timber cutting rights 30 34,139 — Software and other intangible assets 5 23,731 23,635 75,104 41,687 Less: accumulated amortization (21,177 ) (17,115 ) $ 53,927 $ 24,572 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | December 31, 2018 2017 Trade payables $ 36,333 $ 36,151 Accrued expenses 95,936 67,528 Interest payable 16,861 10,093 Income tax payable 29,818 4,324 Legal cost award payable (Note 17(c)) 6,951 — Dividends payable — 8,126 Other 8,585 7,335 $ 194,484 $ 133,557 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | December 31, 2018 2017 2022 Senior Notes, principal amount, $100,000 (a) $ 98,918 $ 394,565 2024 Senior Notes, principal amount, $250,000 (a) 246,154 245,398 2025 Senior Notes, principal amount, $350,000 (a) 342,761 — 2026 Senior Notes, principal amount, $300,000 (a) 294,588 293,773 Credit facilities €200 million joint revolving credit facility (b) 58,968 — C$40 million revolving credit facility (c) — — €70 million revolving credit facility — 25,185 €2.6 million demand loan (d) — — $ 1,041,389 $ 958,921 (a) On December 7, 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 ("2025 Senior Notes"). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offerings were $342,682 after deducting the underwriter's discount and offering expenses. The net proceeds, together with cash on hand, were used to finance the acquisition of MPR. On December 20, 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 ("2026 Senior Notes"). The 2026 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $293,795 , after deducting the underwriter's discount and offering expenses. In January 2018, the Company used the net proceeds of the 2026 Senior Notes, together with cash on hand, to purchase $300,000 in aggregate principal amount of 2022 Senior Notes (herein defined below). In connection with this redemption the Company recorded a loss on settlement of debt of $21,515 in the Consolidated Statement of Operations. As at December 31, 2017, the total cash used to redeem the 2022 Senior Notes was classified as restricted cash and the carrying value of the 2022 Senior Notes was classified as a current liability in the Consolidated Balance Sheet. On February 3, 2017, the Company issued $225,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 ("2024 Senior Notes") and on March 16, 2017, the Company issued an additional $25,000 in aggregate principal amount of its 2024 Senior Notes. The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offerings were $244,711 , after deducting the underwriter's discount and offering expenses. The net proceeds from the 2024 Senior Notes, together with cash on hand, were used to redeem $227,000 of remaining aggregate principal amount of outstanding senior notes due 2019, to finance the acquisition of the Friesau mill, a sawmill and biomass power plant near Friesau, Germany and for general working capital purposes. In connection with the redemption the Company recorded a loss on settlement of debt of $10,696 in the Consolidated Statement of Operations. On November 26, 2014 , the Company issued $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ("2022 Senior Notes" and collectively with the 2024 Senior Notes, 2025 Senior Notes and 2026 Senior Notes, the “Senior Notes”). The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are senior in right of payment to any current or future subordinated indebtedness of the Company. The Senior Notes are effectively junior in right of payment to all existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company’s subsidiaries. The Company may redeem all or a part of the 2025 Senior Notes or 2026 Senior Notes, upon not less than 10 days ’ or more than 60 days ’ notice and the Company may redeem all or a part of the 2024 Senior Notes or 2022 Senior Notes, upon not less than 30 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: 2022 Senior Notes 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage December 1, 2018 103.875 % February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % December 1, 2019 101.938 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % December 1, 2020 and thereafter 100.000 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % (b) A €200.0 million joint revolving credit facility with all of the Company’s German mills that matures in December 2023. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.05% to 2.00% dependent on conditions including but not limited to a prescribed leverage ratio. As at December 31, 2018, approximately €51.5 million ( $58,968 ) of this facility was drawn and accruing interest at a rate of 1.05% and approximately €11.9 million ( $13,582 ) of this facility was supporting bank guarantees leaving approximately €136.6 million ( $156,450 ) available. (c) A C$40.0 million revolving credit facility at the Celgar mill that matures in July 2023. Borrowings under the facility are collateralized by the mill’s inventory, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill’s inventory and accounts receivable. When the borrowing capacity is less than 25% of the total facility the Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime and the U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . When the borrowing capacity is greater than or equal to 25% of the total facility, the respective bankers acceptance or LIBOR margins are reduced by 0.25% and the Canadian Prime or U.S. base margins are reduced by 0.125% . As at December 31, 2018 , approximately C$1.7 million ( $1,245 ) was supporting letters of credit and approximately C$38.3 million ( $28,076 ) was available. (d) A €2.6 million demand loan at the Rosenthal mill 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 at December 31, 2018 , approximately €2.6 million ( $2,922 ) of this facility was supporting bank guarantees leaving approximately $nil available. (e) In 2019, MPR entered into a C$60.0 million revolving credit facility that matures in February 2024. 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 1.25% to 1.50% per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50% , a designated LIBOR rate plus 1.00% and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.50% per annum. The facility is secured by, among other things, the mill’s inventories and receivables. |
Debt Instrument Redemption | The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods: 2022 Senior Notes 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage 12 M onth Period Beginning Percentage December 1, 2018 103.875 % February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % December 1, 2019 101.938 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % December 1, 2020 and thereafter 100.000 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % |
Principal Maturities Of Debt | As at December 31, 2018 , the maturities of the principal portion of debt are as follows: 2019 $ — 2020 — 2021 — 2022 100,000 2023 58,968 Thereafter 900,000 $ 1,058,968 |
Pension And Other Post-Retire_2
Pension And Other Post-Retirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | Information about the defined benefit plans, in aggregate for the year ended December 31, 2018 were as follows: 2018 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2017 $ 38,330 $ 20,788 $ 59,118 Benefit obligation transferred, MPR 62,545 — 62,545 Service cost 269 467 736 Interest cost 1,409 709 2,118 Benefit payments (2,346 ) (594 ) (2,940 ) Actuarial losses (gains) 456 (5,065 ) (4,609 ) Foreign currency exchange rate changes (4,667 ) (1,446 ) (6,113 ) Benefit obligation, December 31, 2018 95,996 14,859 110,855 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2017 37,057 — 37,057 Fair value of plan assets transferred, MPR 52,740 — 52,740 Actual returns 378 — 378 Contributions 539 594 1,133 Benefit payments (2,346 ) (594 ) (2,940 ) Foreign currency exchange rate changes (4,246 ) — (4,246 ) Fair value of plan assets, December 31, 2018 84,122 — 84,122 Funded status, December 31, 2018 $ (11,874 ) $ (14,859 ) $ (26,733 ) Components of the net benefit cost recognized Service cost $ 269 $ 467 $ 736 Interest cost 1,409 709 2,118 Expected return on plan assets (1,694 ) — (1,694 ) Amortization of unrecognized items 915 (207 ) 708 Net benefit costs $ 899 $ 969 $ 1,868 Information about Celgar's defined benefit plans, in aggregate for the year ended December 31, 2017 was as follows: 2017 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2016 $ 35,125 $ 23,928 $ 59,053 Service cost 95 584 679 Interest cost 1,339 947 2,286 Benefit payments (2,222 ) (706 ) (2,928 ) Actuarial losses (gains) 1,499 (5,484 ) (3,985 ) Foreign currency exchange rate changes 2,494 1,519 4,013 Benefit obligation, December 31, 2017 38,330 20,788 59,118 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2016 33,011 — 33,011 Actual returns 2,564 — 2,564 Contributions 1,325 706 2,031 Benefit payments (2,222 ) (706 ) (2,928 ) Foreign currency exchange rate changes 2,379 — 2,379 Fair value of plan assets, December 31, 2017 37,057 — 37,057 Funded status, December 31, 2017 (1) $ (1,273 ) $ (20,788 ) $ (22,061 ) Components of the net benefit cost recognized Service cost $ 95 $ 584 $ 679 Interest cost 1,339 947 2,286 Expected return on plan assets (2,012 ) — (2,012 ) Amortization of unrecognized items 1,074 152 1,226 Net benefit costs $ 496 $ 1,683 $ 2,179 (1) The total of $22,141 in the Consolidated Balance Sheet also includes pension liabilities of $80 relating to employees at the Company’s Rosenthal mill. |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Information about Celgar's defined benefit plans, in aggregate for the year ended December 31, 2017 was as follows: 2017 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2016 $ 35,125 $ 23,928 $ 59,053 Service cost 95 584 679 Interest cost 1,339 947 2,286 Benefit payments (2,222 ) (706 ) (2,928 ) Actuarial losses (gains) 1,499 (5,484 ) (3,985 ) Foreign currency exchange rate changes 2,494 1,519 4,013 Benefit obligation, December 31, 2017 38,330 20,788 59,118 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2016 33,011 — 33,011 Actual returns 2,564 — 2,564 Contributions 1,325 706 2,031 Benefit payments (2,222 ) (706 ) (2,928 ) Foreign currency exchange rate changes 2,379 — 2,379 Fair value of plan assets, December 31, 2017 37,057 — 37,057 Funded status, December 31, 2017 (1) $ (1,273 ) $ (20,788 ) $ (22,061 ) Components of the net benefit cost recognized Service cost $ 95 $ 584 $ 679 Interest cost 1,339 947 2,286 Expected return on plan assets (2,012 ) — (2,012 ) Amortization of unrecognized items 1,074 152 1,226 Net benefit costs $ 496 $ 1,683 $ 2,179 (1) The total of $22,141 in the Consolidated Balance Sheet also includes pension liabilities of $80 relating to employees at the Company’s Rosenthal mill. Information about the defined benefit plans, in aggregate for the year ended December 31, 2018 were as follows: 2018 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2017 $ 38,330 $ 20,788 $ 59,118 Benefit obligation transferred, MPR 62,545 — 62,545 Service cost 269 467 736 Interest cost 1,409 709 2,118 Benefit payments (2,346 ) (594 ) (2,940 ) Actuarial losses (gains) 456 (5,065 ) (4,609 ) Foreign currency exchange rate changes (4,667 ) (1,446 ) (6,113 ) Benefit obligation, December 31, 2018 95,996 14,859 110,855 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2017 37,057 — 37,057 Fair value of plan assets transferred, MPR 52,740 — 52,740 Actual returns 378 — 378 Contributions 539 594 1,133 Benefit payments (2,346 ) (594 ) (2,940 ) Foreign currency exchange rate changes (4,246 ) — (4,246 ) Fair value of plan assets, December 31, 2018 84,122 — 84,122 Funded status, December 31, 2018 $ (11,874 ) $ (14,859 ) $ (26,733 ) Components of the net benefit cost recognized Service cost $ 269 $ 467 $ 736 Interest cost 1,409 709 2,118 Expected return on plan assets (1,694 ) — (1,694 ) Amortization of unrecognized items 915 (207 ) 708 Net benefit costs $ 899 $ 969 $ 1,868 |
Estimated Future Benefit Payments | Estimated future benefit payments under these plans are as follows: Pension Other Post-Retirement Benefits 2019 $ 3,922 $ 660 2020 4,095 688 2021 4,258 713 2022 4,449 735 2023 4,610 759 2024 - 2028 25,953 4,131 |
Summary of Key Assumptions | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs were as follows for Celgar's defined benefit plan: December 31, 2018 2017 2016 Benefit obligations Discount rate 3.14 % 3.50 % 3.80 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.50 % 3.80 % 4.00 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 4.40 % 6.00 % 6.40 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs were as follows for MPR's defined benefit plan: December 31, 2018 Benefit obligations Discount rate 3.90 % Rate of compensation increase 2.75 % Net benefit cost for year ended Discount rate 3.95 % Rate of compensation increase 3.25 % Expected rate of return on plan assets 5.15 % |
Schedule of Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the other post-retirement benefit obligations were as follows: December 31, 2018 2017 Health care cost trend rate assumed for next year 5.50 % 6.00 % Rate to which the cost trend is assumed to decline to (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2021 2021 |
Schedule of Allocation of Plan Assets | The following table presents the Celgar and MPR defined benefit pension plans' assets fair value measurements as at December 31, 2018 under the fair value hierarchy: Fair value measurements as at December 31, 2018 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 31,230 $ — $ — $ 31,230 Debt securities, including buy-in annuities 49,724 — — 49,724 Cash 2,054 — — 2,054 Other 1,114 — — 1,114 Total assets $ 84,122 $ — $ — $ 84,122 |
Schedule of Multiemployer Plan | Plan details are included in the following table: Provincially Registered Plan Number Expiration Date of Collective Bargaining Agreement Are the Company’s Contributions Greater Than 5% of Total Contributions? Legal name 2018 2017 2016 The Pulp and Paper Industry Pension Plan P085324 April 30, 2021 No No No |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before provision for income taxes by taxing jurisdiction was as follows: Year Ended December 31, 2018 2017 2016 U.S. $ (69,202 ) $ (41,635 ) $ (32,511 ) Foreign 246,472 145,570 91,975 $ 177,270 $ 103,935 $ 59,464 |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal Statutory and the Company’s effective rates are as follows: Year Ended December 31, 2018 2017 2016 U.S. Federal statutory rate 21% 35% 35% U.S. Federal statutory rate on income before provision for income taxes $ (37,227 ) $ (36,377 ) $ (20,812 ) Tax differential on foreign income (17,511 ) 10,398 5,822 Effect of foreign earnings (1) (51,639 ) (3,584 ) (13,850 ) Change in undistributed earnings — 13,297 (13,297 ) Change in tax rate — (26,627 ) — Valuation allowance 64,573 5,750 9,188 Tax benefit of partnership structure 4,208 4,937 4,933 Non-taxable foreign subsidies 2,908 2,735 2,118 True-up of prior year taxes (9,877 ) (3,685 ) (980 ) Foreign exchange on valuation allowance (878 ) 1,953 632 Foreign exchange on settlement of debt 879 1,342 3,150 Other (4,117 ) (3,591 ) (1,425 ) $ (48,681 ) $ (33,452 ) $ (24,521 ) Comprised of: Current income tax provision $ (32,085 ) $ (11,396 ) $ (7,712 ) Deferred income tax provision (16,596 ) (22,056 ) (16,809 ) $ (48,681 ) $ (33,452 ) $ (24,521 ) (1) Includes the impact of the GILTI provision. |
Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities are composed of the following: December 31, 2018 2017 German tax loss carryforwards $ 35,364 $ 52,415 U.S. tax loss carryforwards and credits 8,982 47,028 Canadian tax loss carryforwards — 5,672 Basis difference between income tax and financial reporting with respect to operating pulp mills (138,541 ) (73,665 ) Long-term debt (7,232 ) (7,655 ) Payable and accrued expenses 4,582 4,167 Deferred pension liability 9,657 6,122 Capital leases 8,269 5,879 Research and development expense pool 3,150 3,170 Other (4,848 ) 1,971 (80,617 ) 45,104 Valuation allowance (11,116 ) (75,689 ) Net deferred income tax liability $ (91,733 ) $ (30,585 ) Comprised of: Deferred income tax asset $ 1,374 $ 1,376 Deferred income tax liability (93,107 ) (31,961 ) Net deferred income tax liability $ (91,733 ) $ (30,585 ) |
Summary of Tax Carryforwards | The following table details the scheduled expiration dates of the Company’s net operating loss, interest and income tax credit carryforwards as at December 31, 2018 : Amount Expiration Date Germany Net operating loss $ 115,700 Indefinite Interest $ 69,000 Indefinite U.S. Net operating loss $ 8,900 2037 Income tax credits $ 7,100 2020 – 2027 Canada Scientific research and experimental development tax credits $ 4,300 2030 – 2036 Australia Net operating loss $ 970 Indefinite |
Summary of Valuation Allowance | The following table summarizes the changes in valuation allowances related to net deferred tax assets: 2018 2017 Balance as at January 1 $ 75,689 $ 81,439 Additions (reversals) U.S. (37,709 ) (3,060 ) Canada (26,384 ) (4,643 ) Australia 398 — The impact of changes in foreign exchange rates (878 ) 1,953 Balance as at December 31 $ 11,116 $ 75,689 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Dividends Declared | During the years ended December 31, 2018 and 2017 the Company’s board of directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 15, 2018 $ 0.125 $ 8,147 May 3, 2018 0.125 8,150 July 26, 2018 0.125 8,150 October 25, 2018 0.125 8,150 $ 0.500 $ 32,597 Date Declared Dividend Per Amount February 9, 2017 $ 0.115 $ 7,472 April 27, 2017 0.115 7,477 July 27, 2017 0.115 7,477 October 26, 2017 0.125 8,127 $ 0.470 $ 30,553 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Share Based Compensation Arrangement Activity | The following table summarizes PSU activity during the year: Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding as at January 1, 2018 1,867,158 $ 9.28 Granted 652,548 12.75 Vested and issued (153,243 ) 13.19 Forfeited (330,455 ) 12.39 Outstanding as at December 31, 2018 2,036,008 $ 9.59 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Share Based Compensation Arrangement Activity | The following table summarizes restricted share activity during the year: Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding as at January 1, 2018 43,635 $ 11.80 Granted 31,130 16.70 Vested and issued (43,635 ) 11.80 Outstanding as at December 31, 2018 31,130 $ 16.70 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended December 31, 2018 2017 2016 Net income Basic and diluted $ 128,589 $ 70,483 $ 34,943 Net income per common share Basic $ 1.97 $ 1.09 $ 0.54 Diluted $ 1.96 $ 1.08 $ 0.54 Weighted average number of common shares outstanding: Basic (1) 65,133,467 64,915,955 64,631,491 Effect of dilutive shares: PSUs 619,411 458,236 447,465 Restricted shares 17,962 18,914 19,309 Diluted 65,770,840 65,393,105 65,098,265 (1) For the year ended December 31, 2018 , the basic weighted average number of common shares outstanding excludes 31,130 restricted shares which have been issued, but have not vested as at December 31, 2018 ( 2017 – 43,635 restricted shares; 2016 – 38,000 restricted shares). |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post-Retirement Benefit Items Unrealized Gains / Losses on Marketable Securities Total Balance as at December 31, 2016 $ (170,592 ) $ (14,663 ) $ (14 ) $ (185,269 ) Other comprehensive income (loss) before reclassifications 120,509 4,537 (4 ) 125,042 Amounts reclassified from accumulated other comprehensive loss — 1,226 — 1,226 Other comprehensive income (loss) 120,509 5,763 (4 ) 126,268 Balance as at December 31, 2017 (50,083 ) (8,900 ) (18 ) (59,001 ) Other comprehensive income (loss) before reclassifications (76,920 ) 7,022 21 (69,877 ) Amounts reclassified from accumulated other comprehensive loss — 708 — 708 Other comprehensive income (loss) (76,920 ) 7,730 21 (69,169 ) Balance as at December 31, 2018 $ (127,003 ) $ (1,170 ) $ 3 $ (128,170 ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the years ended December 31, 2018, 2017 and 2016, was as follows: December 31, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Operating income (loss) $ 274,356 $ 6,203 $ (12,692 ) $ 267,867 Depreciation and amortization $ 87,628 $ 8,485 $ 616 $ 96,729 Purchase of property, plant and equipment $ 66,207 $ 20,682 $ 123 $ 87,012 Total assets (1) $ 1,698,071 $ 131,754 $ 145,910 $ 1,975,735 Revenues by major products Pulp $ 1,190,588 $ — $ — $ 1,190,588 Lumber — 168,663 — 168,663 Energy and chemicals 77,616 10,831 478 88,925 Wood residuals — 9,542 — 9,542 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Revenues by geographical markets U.S. $ 55,692 $ 52,770 $ — $ 108,462 Germany 499,620 73,854 — 573,474 China 291,657 — — 291,657 Other countries 421,235 62,412 478 484,125 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 (1) Total assets for the pulp segment includes the Company's $62,574 investment in the 50% owned NBSK pulp mill. December 31, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,071,715 $ 97,430 $ — $ 1,169,145 Operating income (loss) $ 171,279 $ 5,610 $ (8,335 ) $ 168,554 Depreciation and amortization $ 80,833 $ 4,060 $ 401 $ 85,294 Purchase of property, plant and equipment $ 54,534 $ 3,197 $ 184 $ 57,915 Total assets $ 1,253,545 $ 116,320 $ 354,845 $ 1,724,710 Revenues by major products Pulp $ 979,645 $ — $ — $ 979,645 Lumber — 82,176 — 82,176 Energy and chemicals 92,070 8,872 — 100,942 Wood residuals — 6,382 — 6,382 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 Revenues by geographical markets U.S. $ 23,572 $ 20,060 $ — $ 43,632 Germany 421,895 47,146 — 469,041 China 292,231 — — 292,231 Other countries 334,017 30,224 — 364,241 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 December 31, 2016 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 931,623 $ — $ — $ 931,623 Operating income (loss) $ 124,594 $ — $ (9,470 ) $ 115,124 Depreciation and amortization $ 71,476 $ — $ 508 $ 71,984 Purchase of property, plant and equipment $ 42,462 $ — $ 64 $ 42,526 Revenues by major products Pulp $ 847,328 $ — $ — $ 847,328 Lumber — — — — Energy and chemicals 84,295 — — 84,295 Wood residuals — — — — Total revenues $ 931,623 $ — $ — $ 931,623 Revenues by geographical markets U.S. $ 26,985 $ — $ — $ 26,985 Germany 401,802 — — 401,802 China 221,773 — — 221,773 Other countries 281,063 — — 281,063 Total revenues $ 931,623 $ — $ — $ 931,623 |
Schedule Of Total Long-Lived Assets By Geographic Area Based On Location Of The Asset | The following table presents total long-lived assets by geographic area based on location of the asset: December 31, 2018 2017 Germany $ 655,260 $ 681,141 Canada 355,817 163,707 Australia 18,180 — $ 1,029,257 $ 844,848 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Outstanding Financial Instruments And Estimated Fair Values | The following tables present a summary of the Company’s outstanding financial instruments and their estimated fair values under the fair value hierarchy: Fair value measurements as at December 31, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 58,968 $ — $ 58,968 Senior notes — 965,000 — 965,000 $ — $ 1,023,968 $ — $ 1,023,968 Fair value measurements as at December 31, 2017 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 25,185 $ — $ 25,185 Senior notes — 989,125 — 989,125 $ — $ 1,014,310 $ — $ 1,014,310 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum lease payments, primarily for vehicles, and plant and equipment under capital and non-cancellable operating leases and the present value of net minimum payments as at December 31, 2018 are as follows: Capital Leases Operating Leases 2019 $ 6,302 $ 3,309 2020 3,601 2,963 2021 3,441 2,717 2022 3,278 2,557 2023 3,410 2,057 Thereafter 17,025 5,360 Total 37,057 $ 18,963 Less: imputed interest 7,477 Total present value of minimum capitalized payments 29,580 Less: current portion of capital lease obligations 4,911 Long-term capital lease obligations $ 24,669 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum lease payments, primarily for vehicles, and plant and equipment under capital and non-cancellable operating leases and the present value of net minimum payments as at December 31, 2018 are as follows: Capital Leases Operating Leases 2019 $ 6,302 $ 3,309 2020 3,601 2,963 2021 3,441 2,717 2022 3,278 2,557 2023 3,410 2,057 Thereafter 17,025 5,360 Total 37,057 $ 18,963 Less: imputed interest 7,477 Total present value of minimum capitalized payments 29,580 Less: current portion of capital lease obligations 4,911 Long-term capital lease obligations $ 24,669 |
Acquisitions Acquisitions MPR P
Acquisitions Acquisitions MPR PPA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 10, 2018 | Dec. 31, 2017 | |
MPR Purchase Price Allocation [Line Items] | |||
Investment in joint ventures | $ 62,574 | $ 0 | |
Discount rate used to value timber cutting rights | 12.50% | ||
Time period timber cutting rights discounted | 30 years | ||
MPR | |||
MPR Purchase Price Allocation [Line Items] | |||
Current assets | $ 135,305 | ||
Property, plant and equipment | 207,743 | ||
Investment in joint ventures | 62,672 | ||
Amortizable intangible assets, timber cutting rights (a) | 34,810 | ||
Other long-term assets | 392 | ||
Total assets acquired | 440,922 | ||
Current liabilities | 35,578 | ||
Pension obligations | 9,747 | ||
Deferred income tax | 47,912 | ||
Other long-term liabilities | 3,097 | ||
Total liabilities assumed | 96,334 | ||
Net assets acquired | $ 344,588 | ||
Timber cutting rights [Domain] | |||
MPR Purchase Price Allocation [Line Items] | |||
Intangible assets, useful life | 30 years |
The Company And Summary Of Si_3
The Company And Summary Of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)mill | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 10, 2018 | Oct. 03, 2018 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Cash And Cash Equivalents Maturity Period | 3 months | ||||
Net actuarial gain (loss) percent that is exceeded for amortization | 10.00% | ||||
Number Of Pulp Mills | 4 | ||||
ASU 2017-07 Reclassification to other income | $ | $ 1,132 | $ 1,500 | $ 1,381 | ||
ASU 2016-02 Leases, ROU assets and associated liabilities | $ | $ 14,700 | ||||
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 | ||||
MPR - Peace River | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||
MPR - CPP | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% |
Acquisitions Acquisitions - MPR
Acquisitions Acquisitions - MPR Pro forma (Details) - MPR - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Acquisitions MPR Pro forma [Line Items] | ||
Revenues | $ 1,906,697 | $ 1,503,446 |
Net income | $ 189,431 | $ 42,267 |
Acquisitions Acquisitions Santa
Acquisitions Acquisitions Santanol PPA (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Oct. 18, 2018 |
Acquisitions Santanol PPA [Line Items] | ||
Discount rate used to value sandalwood tree plantations | 10.50% | |
Santanol [Member] | ||
Acquisitions Santanol PPA [Line Items] | ||
Net working capital | $ 5,111 | |
Property, plant and equipment | 18,490 | |
Sandalwood tree plantations (a) | 12,123 | |
Net assets acquired | $ 35,724 |
Acquisitions Acquisitions San_2
Acquisitions Acquisitions Santanol (Narrative) (Details) - USD ($) $ in Thousands | Oct. 18, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 10, 2018 | Oct. 03, 2018 |
Acquisitions Santanol (Narrative) [Line Items] | ||||||
Revenues | $ 1,457,718 | $ 1,169,145 | $ 931,623 | |||
Net income | $ 128,589 | $ 70,483 | $ 34,943 | |||
MPR - CPP | ||||||
Acquisitions Santanol (Narrative) [Line Items] | ||||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% | |||
MPR - PRLLP | ||||||
Acquisitions Santanol (Narrative) [Line Items] | ||||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | |||||
Santanol [Member] | ||||||
Acquisitions Santanol (Narrative) [Line Items] | ||||||
Revenues | $ 478 | |||||
Acquisitions, Consideration Transferred | $ 35,724 | |||||
Net income | 907 | |||||
Acquisitions costs | $ 777 |
Acquisitions Acquisitions MPR (
Acquisitions Acquisitions MPR (Narrative) (Details) - USD ($) $ in Thousands | Dec. 10, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 03, 2018 |
Acquisitions MPR (Narrative) [Line Items] | |||||
Additional interest costs related to finance DMI acquisition | $ 25,190 | $ 26,989 | |||
Proforma depreciation - MPR | 11,679 | 9,776 | |||
Revenues | 1,457,718 | 1,169,145 | $ 931,623 | ||
Net income | 128,589 | 70,483 | 34,943 | ||
Acquisition commitment fee | 5,250 | $ 0 | $ 0 | ||
Related Party Transaction, Purchases from Related Party | 6,044 | ||||
Related Party Transaction, Due from (to) Related Party | (2,343) | ||||
MPR | |||||
Acquisitions MPR (Narrative) [Line Items] | |||||
Revenues | 29,907 | ||||
Acquisitions, Consideration Transferred | $ 344,588 | ||||
Net income | 978 | ||||
Acquisitions costs | $ 1,871 | ||||
MPR - Peace River | |||||
Acquisitions MPR (Narrative) [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||
MPR - CPP | |||||
Acquisitions MPR (Narrative) [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% | ||
MPR - PRLLP | |||||
Acquisitions MPR (Narrative) [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable [Line Items] | ||
Accounts Receivable | $ 252,692 | $ 206,027 |
Trade accounts receivable [Member] | ||
Accounts Receivable [Line Items] | ||
Allowance | 0 | 18 |
Accounts Receivable | 230,426 | 186,008 |
Other non-trade receivables [Member] | ||
Accounts Receivable [Line Items] | ||
Accounts Receivable | $ 22,266 | $ 20,019 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 103,983 | $ 49,137 |
Finished goods | 114,304 | 58,364 |
Spare parts and other | 85,526 | 69,100 |
Inventories | $ 303,813 | $ 176,601 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant And Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,004,372 | $ 1,788,814 |
Less: accumulated depreciation | (975,115) | (943,966) |
Property, plant and equipment, net | 1,029,257 | 844,848 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 54,832 | 44,834 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 251,408 | 187,738 |
Production and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,698,132 | $ 1,556,242 |
Property, plant and equipment, Useful Life | 25 years | |
Minimum [Member] | Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 10 years | |
Maximum [Member] | Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 50 years |
Property, Plant And Equipment_2
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Unamortized government investment grants | $ 211,532 | $ 243,164 | |
Capital leases, gross amounts | 44,756 | 35,648 | |
Capital leases, accumulated depreciation | (15,963) | (13,954) | |
Leased production equipment | 12,145 | 145 | $ 17,792 |
Asset retirement obligation | $ 8,752 | $ 5,278 |
Intangible and Other Assets (De
Intangible and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets [Line Items] | ||
Energy sales agreement | $ 17,234 | $ 18,052 |
Timber cutting rights | 34,139 | 0 |
Software and other intangible assets | 23,731 | 23,635 |
Intangible assets, gross | 75,104 | 41,687 |
Less: accumulated amortization | 21,177 | 17,115 |
Intangible assets, net | 53,927 | 24,572 |
Other assets, non-current | $ 17,904 | $ 1,575 |
Energy Sales Agreement [Domain] | ||
Intangible assets [Line Items] | ||
Intangible assets, useful life | 11 years | |
Timber cutting rights [Domain] | ||
Intangible assets [Line Items] | ||
Intangible assets, useful life | 30 years | |
Software and other intangible assets [Domain] | ||
Intangible assets [Line Items] | ||
Intangible assets, useful life | 5 years |
Accounts Payable and Other (Det
Accounts Payable and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 36,333 | $ 36,151 |
Accrued expenses | 95,936 | 67,528 |
Interest payable | 16,861 | 10,093 |
Income tax payable | 29,818 | 4,324 |
Legal cost award payable (Note 17(c)) | 6,951 | 0 |
Dividends payable | 0 | 8,126 |
Other | 8,585 | 7,335 |
Accounts payable and other | $ 194,484 | $ 133,557 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) | 12 Months Ended | ||||||||
Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 07, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 20, 2017USD ($) | Mar. 16, 2017USD ($) | Feb. 03, 2017USD ($) | Nov. 26, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||||
Total debt | $ 1,041,389,000 | $ 958,921,000 | |||||||
2026 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 294,588,000 | 293,773,000 | |||||||
2025 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 342,761,000 | 0 | |||||||
2024 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 246,154,000 | 245,398,000 | |||||||
Senior Notes 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 98,918,000 | 394,565,000 | |||||||
Rosenthal Credit Facility - EUR 2.6 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | three-month Euribor | ||||||||
Total debt | 0 | 0 | |||||||
Line of credit, maximum borrowing capacity | € | € 2,600,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 0 | ||||||||
Senior Notes 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, interest rate | 6.50% | ||||||||
Total debt | $ 244,711,000 | ||||||||
Debt, face amount | $ 25,000,000 | $ 225,000,000 | |||||||
Senior Notes 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, interest rate | 7.75% | ||||||||
Debt, face amount | 100,000,000 | $ 400,000,000 | |||||||
2024 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 250,000,000 | ||||||||
2025 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, interest rate | 7.375% | ||||||||
Total debt | $ 342,682,000 | ||||||||
Debt, face amount | 350,000,000 | $ 350,000,000 | |||||||
2026 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, interest rate | 5.50% | ||||||||
Total debt | $ 293,795,000 | ||||||||
Debt, face amount | 300,000,000 | $ 300,000,000 | |||||||
Rosenthal Credit Facility - EUR 70.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 0 | 25,185,000 | |||||||
Line of credit, maximum borrowing capacity | € | € 70,000,000 | ||||||||
German Joint RCF - EUR 200 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | Euribor | ||||||||
Debt, interest rate | 1.05% | 1.05% | 1.05% | ||||||
Total debt | € 51,500,000 | $ 58,968,000 | 0 | ||||||
Line of credit, maximum borrowing capacity | € | 200,000,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | € 136,600,000 | 156,450,000 | |||||||
Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 40,000,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 38,300,000 | 28,076,000 | |||||||
Celgar Credit Facility - C$40 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 0 | $ 0 | |||||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 103.875% | ||||||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.938% | ||||||||
Debt Instrument, Redemption, Period Five [Member] | Senior Notes 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.625% | ||||||||
Debt Instrument Redemption Period Nine [Member] | 2025 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument Redemption Period Seven [Member] | 2025 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 103.688% | ||||||||
Debt Instrument Redemption Period Ten [Member] | 2026 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 102.75% | ||||||||
Debt Instrument Redemption Period 12 [Domain] | 2026 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument, Redemption, Period Four [Member] | Senior Notes 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 103.25% | ||||||||
Debt Instrument Redemption Period Eight [Member] | 2025 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.844% | ||||||||
Debt Instrument Redemption Period 11 [Domain] | 2026 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.375% | ||||||||
Debt Instrument, Redemption, Period Three [Member] | Senior Notes 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument Redemption Period Six [Member] | Senior Notes 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Debt (Schedule of Debt Footnote
Debt (Schedule of Debt Footnotes) (Details) | Dec. 07, 2018USD ($) | Jan. 05, 2018USD ($) | Dec. 20, 2017USD ($) | Feb. 03, 2017USD ($) | Nov. 26, 2014USD ($) | Mar. 31, 2019CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Mar. 16, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 958,921,000 | $ 1,041,389,000 | |||||||||||
Loss on settlement of debt | $ 21,515,000 | 10,696,000 | $ 454,000 | ||||||||||
MPR Credit Facility - C$60 Million [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | banker's acceptance | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 1a [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | federal funds rate | ||||||||||||
Debt, variable basis spread | 0.50% | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 1b [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | LIBOR | ||||||||||||
Debt, variable basis spread | 1.00% | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 1c [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | bank’s applicable reference rate for U.S. dollar loans | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | Canadian Dollar Borrowings Rate Option 2 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | designated prime rate | ||||||||||||
MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 2 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | LIBOR | ||||||||||||
German Joint RCF - EUR 200 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 1.05% | 1.05% | 1.05% | ||||||||||
Long-term Debt | 0 | € 51,500,000 | $ 58,968,000 | ||||||||||
Debt, description of variable basis spread | Euribor | ||||||||||||
Line of credit, maximum borrowing capacity | € | 200,000,000 | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 136,600,000 | 156,450,000 | |||||||||||
Debt, amount of debt supporting bank guarantees | 11,900,000 | 13,582,000 | |||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 40,000,000 | ||||||||||||
Required available borrowing capacity | 25.00% | ||||||||||||
Line of credit, letters of credit outstanding, amount | 1,700,000 | 1,245,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 38,300,000 | 28,076,000 | |||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian & US Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.125%) | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | bankers acceptance | ||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | Canadian prime | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | US Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | LIBOR | ||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | US Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | U.S. base | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian & US Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.25%) | ||||||||||||
Rosenthal Credit Facility - EUR 2.6 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | $ 0 | 0 | |||||||||||
Debt, description of variable basis spread | three-month Euribor | ||||||||||||
Debt, variable basis spread | 2.50% | ||||||||||||
Line of credit, maximum borrowing capacity | € | 2,600,000 | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 0 | ||||||||||||
Debt, amount of debt supporting bank guarantees | € 2,600,000 | 2,922,000 | |||||||||||
2025 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, face amount | $ 350,000,000 | 350,000,000 | |||||||||||
Debt, maturity date | Jan. 15, 2025 | ||||||||||||
Debt, interest rate | 7.375% | ||||||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||||||
Long-term Debt | $ 342,682,000 | ||||||||||||
2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, face amount | $ 300,000,000 | 300,000,000 | |||||||||||
Debt, maturity date | Jan. 15, 2026 | ||||||||||||
Debt, interest rate | 5.50% | ||||||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||||||
Long-term Debt | $ 293,795,000 | ||||||||||||
Senior Notes 2024 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, face amount | $ 225,000,000 | $ 25,000,000 | |||||||||||
Debt, maturity date | Feb. 1, 2024 | ||||||||||||
Debt, interest rate | 6.50% | ||||||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||||||
Long-term Debt | $ 244,711,000 | ||||||||||||
Senior Notes 2022 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, face amount | $ 400,000,000 | $ 100,000,000 | |||||||||||
Debt, offering date | Nov. 26, 2014 | ||||||||||||
Debt, maturity date | Dec. 1, 2022 | ||||||||||||
Debt, interest rate | 7.75% | ||||||||||||
Debt, repurchase amount | $ 300,000,000 | ||||||||||||
Loss on settlement of debt | $ 21,515,000 | ||||||||||||
2019 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, repurchase amount | $ 227,000,000 | ||||||||||||
Loss on settlement of debt | $ 10,696,000 | ||||||||||||
Senior Notes 2025 and 2026 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior Notes, redemption notice minimum days | 10 days | ||||||||||||
Senior Notes, redemption notice maximum days | 60 days | ||||||||||||
Senior Notes 2022 and 2024 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior Notes, redemption notice minimum days | 30 days | ||||||||||||
Senior Notes, redemption notice maximum days | 60 days | ||||||||||||
Maximum [Member] | MPR Credit Facility - C$60 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Maximum [Member] | MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 2 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Maximum [Member] | German Joint RCF - EUR 200 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 2.00% | ||||||||||||
Minimum [Member] | MPR Credit Facility - C$60 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.25% | ||||||||||||
Minimum [Member] | MPR Credit Facility - C$60 Million [Member] | US Dollar Borrowings Rate Option 2 [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.25% | ||||||||||||
Minimum [Member] | German Joint RCF - EUR 200 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.05% |
Debt (Principal Maturities Of D
Debt (Principal Maturities Of Debt) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 100,000 |
2,023 | 58,968 |
Thereafter | 900,000 |
Total debt | $ 1,058,968 |
Debt Redemption period for Seni
Debt Redemption period for Senior Notes (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Senior Notes 2022 [Member] | Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.875% |
Senior Notes 2022 [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.938% |
Senior Notes 2022 [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Senior Notes 2024 [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.25% |
Senior Notes 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.625% |
Senior Notes 2024 [Member] | Debt Instrument Redemption Period Six [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2025 Senior Notes [Member] | Debt Instrument Redemption Period Seven [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.688% |
2025 Senior Notes [Member] | Debt Instrument Redemption Period Eight [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.844% |
2025 Senior Notes [Member] | Debt Instrument Redemption Period Nine [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2026 Senior Notes [Member] | Debt Instrument Redemption Period Ten [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.75% |
2026 Senior Notes [Member] | Debt Instrument Redemption Period 11 [Domain] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.375% |
2026 Senior Notes [Member] | Debt Instrument Redemption Period 12 [Domain] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Pension And Other Post-Retire_3
Pension And Other Post-Retirement Benefit Obligations (Plan Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 10, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation transferred, MPR | $ 62,545 | ||
Service cost | $ 736 | ||
Interest cost | 2,118 | ||
Benefit payments | 2,940 | ||
Actuarial gains (losses) | 4,609 | ||
Foreign currency exchange rate changes | 6,113 | ||
Benefit obligation, ending balance | 110,855 | ||
Actual returns | 378 | ||
Contributions | 1,133 | ||
Foreign currency exchange rate changes | (4,246) | ||
Fair value of plan assets, ending balance | 84,122 | ||
Funded status | (26,733) | ||
Expected return on plan assets | (1,694) | ||
Amortization of unrecognized items | 708 | ||
Net benefit costs | 1,868 | ||
Pension liabilities | $ 22,141 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation transferred, MPR | 62,545 | ||
Service cost | 269 | ||
Interest cost | 1,409 | ||
Benefit payments | 2,346 | ||
Actuarial gains (losses) | (456) | ||
Foreign currency exchange rate changes | 4,667 | ||
Benefit obligation, ending balance | 95,996 | ||
Fair value of plan assets transferred, MPR | 52,740 | ||
Actual returns | 378 | ||
Contributions | 539 | ||
Foreign currency exchange rate changes | (4,246) | ||
Fair value of plan assets, ending balance | 84,122 | ||
Funded status | (11,874) | ||
Expected return on plan assets | (1,694) | ||
Amortization of unrecognized items | 915 | ||
Net benefit costs | 899 | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation transferred, MPR | 0 | ||
Service cost | 467 | ||
Interest cost | 709 | ||
Benefit payments | 594 | ||
Actuarial gains (losses) | 5,065 | ||
Foreign currency exchange rate changes | 1,446 | ||
Benefit obligation, ending balance | 14,859 | ||
Fair value of plan assets transferred, MPR | $ 0 | ||
Actual returns | 0 | ||
Contributions | 594 | ||
Foreign currency exchange rate changes | 0 | ||
Fair value of plan assets, ending balance | 0 | ||
Funded status | (14,859) | ||
Expected return on plan assets | 0 | ||
Amortization of unrecognized items | (207) | ||
Net benefit costs | 969 | ||
Rosenthal [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension liabilities | 80 | ||
Celgar [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning balance | 59,118 | 59,053 | |
Service cost | 679 | ||
Interest cost | 2,286 | ||
Benefit payments | 2,928 | ||
Actuarial gains (losses) | (3,985) | ||
Foreign currency exchange rate changes | 4,013 | ||
Benefit obligation, ending balance | 59,118 | ||
Fair value of plan assets, beginning balance | 37,057 | 33,011 | |
Actual returns | 2,564 | ||
Contributions | 2,031 | ||
Foreign currency exchange rate changes | 2,379 | ||
Fair value of plan assets, ending balance | 37,057 | ||
Funded status | (22,061) | ||
Expected return on plan assets | (2,012) | ||
Amortization of unrecognized items | 1,226 | ||
Net benefit costs | 2,179 | ||
Celgar [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning balance | 38,330 | 35,125 | |
Service cost | 95 | ||
Interest cost | 1,339 | ||
Benefit payments | 2,222 | ||
Actuarial gains (losses) | 1,499 | ||
Foreign currency exchange rate changes | 2,494 | ||
Benefit obligation, ending balance | 38,330 | ||
Fair value of plan assets, beginning balance | 37,057 | 33,011 | |
Actual returns | 2,564 | ||
Contributions | 1,325 | ||
Foreign currency exchange rate changes | 2,379 | ||
Fair value of plan assets, ending balance | 37,057 | ||
Funded status | (1,273) | ||
Expected return on plan assets | (2,012) | ||
Amortization of unrecognized items | 1,074 | ||
Net benefit costs | 496 | ||
Celgar [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning balance | 20,788 | 23,928 | |
Service cost | 584 | ||
Interest cost | 947 | ||
Benefit payments | 706 | ||
Actuarial gains (losses) | (5,484) | ||
Foreign currency exchange rate changes | 1,519 | ||
Benefit obligation, ending balance | 20,788 | ||
Fair value of plan assets, beginning balance | $ 0 | 0 | |
Actual returns | 0 | ||
Contributions | 706 | ||
Foreign currency exchange rate changes | 0 | ||
Fair value of plan assets, ending balance | 0 | ||
Funded status | (20,788) | ||
Expected return on plan assets | 0 | ||
Amortization of unrecognized items | 152 | ||
Net benefit costs | $ 1,683 |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations (Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | $ 3,922 |
2,020 | 4,095 |
2,021 | 4,258 |
2,022 | 4,449 |
2,023 | 4,610 |
2024 - 2028 | 25,953 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | 660 |
2,020 | 688 |
2,021 | 713 |
2,022 | 735 |
2,023 | 759 |
2024 - 2028 | $ 4,131 |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Obligations (Summary Of Key Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Celgar [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 3.14% | 3.50% | 3.80% |
Benefit obligations, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Discount rate | 3.50% | 3.80% | 4.00% |
Net benefit cost, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Expected rate of return on plan assets | 4.40% | 6.00% | 6.40% |
MPR [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 3.90% | ||
Benefit obligations, Rate of compensation increase | 2.75% | ||
Net benefit cost, Discount rate | 3.95% | ||
Net benefit cost, Rate of compensation increase | 3.25% | ||
Net benefit cost, Expected rate of return on plan assets | 5.15% |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Obligations (Assumed Health Care Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Health care cost trend rate assumed | 5.50% | 6.00% |
Rate to which the cost trend is assumed to decline to (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,021 | 2,021 |
Pension And Other Post-Retire_7
Pension And Other Post-Retirement Benefit Obligations (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 84,122 | ||
Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 31,230 | ||
Debt securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 49,724 | ||
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2,054 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 1,114 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 84,122 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 31,230 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Debt securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 49,724 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2,054 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 1,114 | ||
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Debt securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant unobservable inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant unobservable inputs (Level 3) [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant unobservable inputs (Level 3) [Member] | Debt securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant unobservable inputs (Level 3) [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 0 | ||
Fair Value, Significant unobservable inputs (Level 3) [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 0 | ||
Celgar [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 37,057 | $ 33,011 | |
Celgar [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
Celgar [Member] | Debt securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80.00% |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Obligations (Multiemployer Plan Details) (Details) - The Pulp and Paper Industry Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Multiemployer Plans [Line Items] | |||
Provincially registered plan number | P085324 | ||
Expiration date of collective bargaining agreement | Apr. 30, 2021 | ||
Are the Company's contributions greater than 5% of total contributions | false | false | false |
Celgar [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 2,218 | $ 1,969 | $ 1,944 |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Obligations Pension and Other Post-Retirement Benefit Obligations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,024 | $ 959 | $ 743 |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 3,282 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cumulative undistributed earnings of foreign subsidiaries | $ 22,398,000 | ||
Unrecognized Tax Benefits | $ 0 | 0 | |
Recognized interest and penalties related to unrecognized tax benefit | 0 | 0 | $ 0 |
Effect of foreign earnings | 51,639,000 | 3,584,000 | 13,850,000 |
Undistributed Earnings of Foreign Subsidiaries | 413,700,000 | ||
Change in tax rate | $ 0 | $ (26,627,000) | $ 0 |
U.S. Federal statutory rate | 21.00% | 35.00% | 35.00% |
Deferred asset reduction from change in tax rate | $ 27,445,000 | ||
Foreign Earnings Repatriated | 3,473,000 | ||
GILTI provision | $ 245,899,000 | ||
Canada Revenue Agency [Member] | |||
Foreign tax loss carryforwards | 0 | 5,672,000 | |
Federal Ministry of Finance, Germany [Member] | |||
Foreign tax loss carryforwards | $ 35,364,000 | $ 52,415,000 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes By Taxing Jurisdiction) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income from Continuing Operations before Income Taxes, U.S. | $ (69,202) | $ (41,635) | $ (32,511) |
Income from Continuing Operations before Income Taxes, Foreign | 246,472 | 145,570 | 91,975 |
Income before income taxes | $ 177,270 | $ 103,935 | $ 59,464 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. Federal statutory rate | 21.00% | 35.00% | 35.00% |
U.S. Federal statutory rate on income before provision for income taxes | $ (37,227) | $ (36,377) | $ (20,812) |
Tax differential on foreign income | (17,511) | 10,398 | 5,822 |
Effect of foreign earnings | (51,639) | (3,584) | (13,850) |
Change in undistributed earnings | 0 | 13,297 | (13,297) |
Change in tax rate | 0 | (26,627) | 0 |
Valuation allowance | 64,573 | 5,750 | 9,188 |
Tax benefit of partnership structure | 4,208 | 4,937 | 4,933 |
Non-taxable foreign subsidies | 2,908 | 2,735 | 2,118 |
True-up of prior year taxes | (9,877) | (3,685) | (980) |
Foreign exchange on valuation allowance | (878) | 1,953 | 632 |
Foreign exchange on settlement of debt | 879 | 1,342 | 3,150 |
Other | (4,117) | (3,591) | (1,425) |
Total income tax provision | (48,681) | (33,452) | (24,521) |
Current income tax provision | (32,085) | (11,396) | (7,712) |
Deferred income tax provision | $ (16,596) | $ (22,056) | $ (16,809) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. tax loss carryforwards and credits | $ 8,982 | $ 47,028 | |
Basis difference between income tax and financial reporting with respect to operating pulp mills | (138,541) | (73,665) | |
Long-term debt | (7,232) | (7,655) | |
Payable and accrued expenses | 4,582 | 4,167 | |
Deferred pension liability | 9,657 | 6,122 | |
Capital leases | 8,269 | 5,879 | |
Research and development expense pool | 3,150 | 3,170 | |
Other (deferred tax liabilities) | (4,848) | ||
Other (deferred tax assets) | 1,971 | ||
Total gross deferred tax liability | (80,617) | ||
Total gross deferred tax asset | 45,104 | ||
Valuation allowance | (11,116) | (75,689) | $ (81,439) |
Net deferred income tax liability | (91,733) | (30,585) | |
Deferred income tax liability | 93,107 | 31,961 | |
Deferred income tax asset | 1,374 | 1,376 | |
Federal Ministry of Finance, Germany [Member] | |||
Foreign tax loss carryforwards | 35,364 | 52,415 | |
Canada Revenue Agency [Member] | |||
Foreign tax loss carryforwards | $ 0 | $ 5,672 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Federal Ministry of Finance, Germany [Member] | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 115,700 |
Interest carryforwards | $ 69,000 |
Tax Loss Carryforwards, Expiration Year | Indefinite |
Other Tax Carryforward, Expiration Year | Indefinite |
United States | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 8,900 |
Income tax credits carryforwards | $ 7,100 |
Tax Loss Carryforwards, Expiration Year | 2,037 |
Tax Credits Carryforward, Expiration Year | 2020 – 2027 |
Canada Revenue Agency [Member] | |
Income Taxes Disclosures [Line Items] | |
Scientific research and experimental development tax credits carryforwards | $ 4,300 |
Tax Credits Carryforward, Expiration Year | 2030 – 2036 |
Australian Taxation Office [Member] | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 970 |
Tax Loss Carryforwards, Expiration Year | Indefinite |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||
Valuation allowance, beginning of period | $ 75,689 | $ 81,439 |
Valuation allowance - the impact of changes in foreign exchange rates | (878) | 1,953 |
Valuation allowance, end of period | 11,116 | 75,689 |
United States | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | (37,709) | (3,060) |
Canada | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | (26,384) | (4,643) |
Australia | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | $ 398 | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred shares, authorized | 50,000,000 | 50,000,000 | |
Preferred shares, par value | $ 1 | ||
Preferred shares, issued | 0 | ||
Common shares available for grant | 2,800,000 | ||
Series A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred shares, authorized | 2,000,000 | ||
Restricted Stock Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Performance Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 652,548 | ||
Shares outstanding | 2,036,008 | 1,867,158 | |
Vesting period | 3 years | ||
Expense recognized | $ 3,422 | $ 2,437 | $ 4,210 |
Weighted-average grant date fair value of awards granted | $ 12.75 | $ 12 | $ 6.04 |
Fair value of vested and issued shares or units | $ 1,992 | $ 3,445 | $ 1,382 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 31,130 | ||
Shares outstanding | 31,130 | 43,635 | |
Vesting period | 1 year | ||
Expense recognized | $ 518 | $ 453 | $ 449 |
Weighted-average grant date fair value of awards granted | $ 16.70 | $ 11.80 | $ 9.41 |
Fair value of vested and issued shares or units | $ 703 | $ 437 | $ 697 |
Unrecognized compensation cost | $ 217 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 |
Shareholders' Equity (Summary o
Shareholders' Equity (Summary of Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 03, 2019 | Mar. 27, 2019 | Feb. 14, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Dividends Payable [Line Items] | ||||||||||||||
Dividends declared per common share | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.115 | $ 0.115 | $ 0.115 | $ 0.5 | $ 0.47 | $ 0.46 | |||
Dividends, Common Stock, Cash | $ 8,150 | $ 8,150 | $ 8,150 | $ 8,147 | $ 8,127 | $ 7,477 | $ 7,477 | $ 7,472 | $ 32,597 | $ 30,553 | $ 29,755 | |||
Dividend Declared [Member] | Subsequent Event [Member] | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Dividends declared per common share | $ 0.125 | |||||||||||||
Dividends Payable, Date Declared | Feb. 14, 2019 | |||||||||||||
Dividends Payable, Date of Record | Mar. 27, 2019 | |||||||||||||
Dividends Payable, Date to be Paid | Apr. 3, 2019 |
Shareholders' Equity (Summary_2
Shareholders' Equity (Summary Of Share Activity - PSU's) (Details) - Performance Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 1,867,158 | ||
Granted | 652,548 | ||
Vested and issued (in shares) | (153,243) | ||
Forfeited (in shares) | (330,455) | ||
Outstanding - Ending | 2,036,008 | 1,867,158 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 9.28 | ||
Granted | 12.75 | $ 12 | $ 6.04 |
Vested and issued | 13.19 | ||
Forfeited | 12.39 | ||
Outstanding - Ending | $ 9.59 | $ 9.28 |
Shareholders' Equity (Summary_3
Shareholders' Equity (Summary Of Share Activity - Restricted Shares) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of vested and issued shares or units | $ 703 | $ 437 | $ 697 |
Allocated Share-based Compensation Expense | $ 518 | $ 453 | $ 449 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 43,635 | ||
Granted | 31,130 | ||
Vested and issued | (43,635) | ||
Outstanding - Ending | 31,130 | 43,635 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 11.80 | ||
Granted | 16.70 | $ 11.80 | $ 9.41 |
Vested and issued | 11.80 | ||
Outstanding - Ending | $ 16.70 | $ 11.80 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Net income - basic and diluted | $ 128,589 | $ 70,483 | $ 34,943 |
Net income per common share, basic | $ 1.97 | $ 1.09 | $ 0.54 |
Net income per common share, diluted | $ 1.96 | $ 1.08 | $ 0.54 |
Basic, Weighted average number of common shares outstanding | 65,133,467 | 64,915,955 | 64,631,491 |
Diluted, Weighted average number of common shares outstanding | 65,770,840 | 65,393,105 | 65,098,265 |
Performance Share Units [Member] | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 619,411 | 458,236 | 447,465 |
Restricted Stock [Member] | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 17,962 | 18,914 | 19,309 |
Contingently issuable shares excluded from the basic weighted average shares outstanding | 31,130 | 43,635 | 38,000 |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Shareholders (Anti-dilutive Instruments) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | $ (69,877) | $ 125,042 | ||
Amounts reclassified from accumulated other comprehensive loss | 708 | 1,226 | ||
Other comprehensive income (loss), net of taxes | (69,169) | 126,268 | ||
Accumulated other comprehensive loss, ending balance | (128,170) | (59,001) | ||
Total shareholders' equity | 581,429 | 550,666 | $ 379,128 | $ 382,976 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (76,920) | 120,509 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | (76,920) | 120,509 | ||
Total shareholders' equity | (127,003) | (50,083) | (170,592) | |
Defined Benefit Pension and Other Post-Retirement Benefit Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | 7,022 | 4,537 | ||
Amounts reclassified from accumulated other comprehensive loss | 708 | 1,226 | ||
Other comprehensive income (loss), net of taxes | 7,730 | 5,763 | ||
Total shareholders' equity | (1,170) | (8,900) | (14,663) | |
Unrealized Gains / Losses on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | 21 | (4) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Other comprehensive income (loss), net of taxes | 21 | (4) | ||
Total shareholders' equity | 3 | (18) | (14) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | $ (128,170) | $ (59,001) | $ (185,269) | $ (171,574) |
Business Segment Information Bu
Business Segment Information Business Segment Information (Schedule of Results by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 10, 2018 | Oct. 03, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,457,718 | $ 1,169,145 | $ 931,623 | ||
Investment in joint ventures | 62,574 | 0 | |||
Operating income (loss) | 267,867 | 168,554 | 115,124 | ||
Depreciation and amortization | 96,729 | 85,294 | 71,984 | ||
Purchase of property, plant and equipment | 87,012 | 57,915 | 42,526 | ||
Assets | 1,975,735 | 1,724,710 | |||
Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,190,588 | 979,645 | 847,328 | ||
Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 168,663 | 82,176 | 0 | ||
Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 88,925 | 100,942 | 84,295 | ||
Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,542 | 6,382 | 0 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 108,462 | 43,632 | 26,985 | ||
Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 573,474 | 469,041 | 401,802 | ||
China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 291,657 | 292,231 | 221,773 | ||
Other countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 484,125 | 364,241 | 281,063 | ||
Operating Segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,268,204 | 1,071,715 | 931,623 | ||
Operating income (loss) | 274,356 | 171,279 | 124,594 | ||
Depreciation and amortization | 87,628 | 80,833 | 71,476 | ||
Purchase of property, plant and equipment | 66,207 | 54,534 | 42,462 | ||
Assets | 1,698,071 | 1,253,545 | |||
Operating Segments [Member] | Market Pulp [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,190,588 | 979,645 | 847,328 | ||
Operating Segments [Member] | Market Pulp [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Operating Segments [Member] | Market Pulp [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 77,616 | 92,070 | 84,295 | ||
Operating Segments [Member] | Market Pulp [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Operating Segments [Member] | Market Pulp [Member] | United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 55,692 | 23,572 | 26,985 | ||
Operating Segments [Member] | Market Pulp [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 499,620 | 421,895 | 401,802 | ||
Operating Segments [Member] | Market Pulp [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 291,657 | 292,231 | 221,773 | ||
Operating Segments [Member] | Market Pulp [Member] | Other countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 421,235 | 334,017 | 281,063 | ||
Operating Segments [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 189,036 | 97,430 | 0 | ||
Operating income (loss) | 6,203 | 5,610 | 0 | ||
Depreciation and amortization | 8,485 | 4,060 | 0 | ||
Purchase of property, plant and equipment | 20,682 | 3,197 | 0 | ||
Assets | 131,754 | 116,320 | |||
Operating Segments [Member] | Wood Products [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 168,663 | 82,176 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,831 | 8,872 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,542 | 6,382 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 52,770 | 20,060 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 73,854 | 47,146 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Operating Segments [Member] | Wood Products [Member] | Other countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 62,412 | 30,224 | 0 | ||
Intersegment Eliminations [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment sales | 1,343 | 1,350 | |||
Intersegment Eliminations [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment sales | 18,537 | 12,697 | |||
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 478 | 0 | 0 | ||
Operating income (loss) | (12,692) | (8,335) | (9,470) | ||
Depreciation and amortization | 616 | 401 | 508 | ||
Purchase of property, plant and equipment | 123 | 184 | 64 | ||
Assets | 145,910 | 354,845 | |||
Corporate, Non-Segment [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 478 | 0 | 0 | ||
Corporate, Non-Segment [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Corporate, Non-Segment [Member] | Other countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 478 | $ 0 | $ 0 | ||
MPR - CPP | |||||
Segment Reporting Information [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% |
Business Segment Information (S
Business Segment Information (Schedule Of Long Lived Assets By Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,029,257 | $ 844,848 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 655,260 | 681,141 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 355,817 | 163,707 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 18,180 | $ 0 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)millcustomer | Dec. 31, 2017USD ($)customer | Dec. 31, 2016customer | Dec. 10, 2018 | Oct. 03, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Investment in joint ventures | $ | $ 62,574 | $ 0 | |||
Number of pulp mills | mill | 4 | ||||
Number of customers accounting for 10% or more of sales | customer | 1 | 1 | 2 | ||
Customer 1 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue major customer percentage | 13.00% | 13.00% | 19.00% | ||
Customer 2 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue major customer percentage | 10.00% | ||||
MPR - CPP | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Acquisitions, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,023,968 | $ 1,014,310 |
Accounts receivables | 252,692 | 206,027 |
Cash and cash equivalents | 240,491 | 143,299 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
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) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,023,968 | 1,014,310 |
Fair Value, Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Revolving credit facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 58,968 | 25,185 |
Revolving credit facility [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Revolving credit facility [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 58,968 | 25,185 |
Revolving credit facility [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Senior notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 965,000 | 989,125 |
Senior notes [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Senior notes [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 965,000 | 989,125 |
Senior notes [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Lease Commitments (Details)
Lease Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital lease, 2019 | $ 6,302 |
Capital lease, 2020 | 3,601 |
Capital lease, 2021 | 3,441 |
Capital lease, 2022 | 3,278 |
Capital lease, 2023 | 3,410 |
Capital lease, Thereafter | 17,025 |
Capital Leases, Total | 37,057 |
Less: imputed interest | 7,477 |
Total present value of minimum capitalized payments | 29,580 |
Less: current portion of capital lease obligations | 4,911 |
Long-term capital lease obligations | 24,669 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating leases, 2019 | 3,309 |
Operating leases, 2020 | 2,963 |
Operating leases, 2021 | 2,717 |
Operating leases, 2022 | 2,557 |
Operating leases, 2023 | 2,057 |
Operating leases, Thereafter | 5,360 |
Operating leases, Total | $ 18,963 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 1,413 | $ 1,697 | $ 1,393 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal cost award | $ 6,951 | $ 0 | $ 0 |