Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 28, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | MERCER INTERNATIONAL INC. | |
Entity Central Index Key | 0001333274 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Trading Symbol | MERC | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,868,086 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity File Number | 000-51826 | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 47-0956945 | |
Entity Address, Address Line One | Suite 1120 | |
Entity Address, Address Line Two | 700 West Pender Street | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V6C 1G8 | |
City Area Code | 604 | |
Local Phone Number | 684-1099 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 333,151 | $ 383,536 | $ 1,024,945 | $ 1,293,239 |
Costs and expenses | ||||
Cost of sales, excluding depreciation and amortization | 272,165 | 314,894 | 832,554 | 994,360 |
Cost of sales depreciation and amortization | 31,862 | 31,934 | 94,952 | 94,108 |
Selling, general and administrative expenses | 15,388 | 17,961 | 49,326 | 54,662 |
Operating income | 13,736 | 18,747 | 48,113 | 150,109 |
Other income (expenses) | ||||
Interest expense | (19,864) | (18,183) | (60,056) | (55,103) |
Other income | 11,898 | 887 | 12,136 | 3,177 |
Total other expenses, net | (7,966) | (17,296) | (47,920) | (51,926) |
Income before income taxes | 5,770 | 1,451 | 193 | 98,183 |
Income tax recovery (provision) | 1,775 | (244) | (4,451) | (35,101) |
Net income (loss) | $ 7,545 | $ 1,207 | $ (4,258) | $ 63,082 |
Net income (loss) per common share | ||||
Basic and diluted | $ 0.11 | $ 0.02 | $ (0.06) | $ 0.96 |
Dividends declared per common share | $ 0.0650 | $ 0.1375 | $ 0.2675 | $ 0.4000 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,545 | $ 1,207 | $ (4,258) | $ 63,082 |
Other comprehensive income (loss), net of taxes | ||||
Foreign currency translation adjustment | 52,280 | (48,538) | 21,488 | (28,285) |
Change in unrecognized losses and prior service costs related to defined benefit pension plans, net of tax of $nil (2019 - $7 and $43, respectively) | 8 | 39 | 31 | 134 |
Other comprehensive income (loss), net of taxes | 52,288 | (48,499) | 21,519 | (28,151) |
Total comprehensive income (loss) | $ 59,833 | $ (47,292) | $ 17,261 | $ 34,931 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in unrecognized losses and prior service costs related to defined benefit pension plans, tax | $ 0 | $ 7 | $ 0 | $ 43 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 345,580 | $ 351,085 |
Accounts receivable, net | 202,619 | 208,740 |
Inventories | 269,864 | 272,599 |
Prepaid expenses and other | 16,417 | 12,273 |
Total current assets | 834,480 | 844,697 |
Property, plant and equipment, net | 1,065,345 | 1,074,242 |
Investment in joint ventures | 47,865 | 53,122 |
Amortizable intangible assets, net | 50,132 | 53,371 |
Operating lease right-of-use assets | 12,932 | 13,004 |
Other long-term assets | 32,744 | 26,038 |
Deferred income tax | 1,237 | 1,246 |
Total assets | 2,044,735 | 2,065,720 |
Current liabilities | ||
Accounts payable and other | 199,992 | 255,544 |
Pension and other post-retirement benefit obligations | 724 | 768 |
Total current liabilities | 200,716 | 256,312 |
Debt | 1,124,202 | 1,087,932 |
Pension and other post-retirement benefit obligations | 24,613 | 25,489 |
Finance lease liabilities | 39,741 | 31,103 |
Operating lease liabilities | 9,912 | 10,520 |
Other long-term liabilities | 14,213 | 14,114 |
Deferred income tax | 80,631 | 89,847 |
Total liabilities | 1,494,028 | 1,515,317 |
Shareholders’ equity | ||
Common shares $1 par value; 200,000,000 authorized; 65,868,000 issued and outstanding (2019 – 65,629,000) | 65,800 | 65,598 |
Additional paid-in capital | 345,583 | 344,994 |
Retained earnings | 234,365 | 256,371 |
Accumulated other comprehensive loss | (95,041) | (116,560) |
Total shareholders’ equity | 550,707 | 550,403 |
Total liabilities and shareholders’ equity | 2,044,735 | 2,065,720 |
Commitments and contingencies (Note 13) |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 65,868,000 | 65,629,000 |
Common Stock, Shares, Outstanding | 65,868,000 | 65,629,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Total shareholders' equity at Dec. 31, 2018 | $ 581,429 | $ 65,171 | $ 342,438 | $ 301,990 | $ (128,170) |
Balance (in shares) at Dec. 31, 2018 | 65,202 | ||||
Shares issued on grants of restricted shares | $ 31 | (31) | |||
Shares issued on grants of restricted shares (in shares) | 31 | ||||
Shares issued on grants of performance share units | $ 449 | (449) | |||
Shares issued on grants of performance share units (in shares) | 449 | ||||
Stock compensation expense | 2,036 | 2,036 | |||
Net income (loss) | 63,082 | 63,082 | |||
Dividends declared | (26,255) | (26,255) | |||
Repurchase of common shares | (754) | $ (53) | (701) | ||
Repurchase of common shares, shares | (53) | ||||
Other comprehensive income (loss) | (28,151) | (28,151) | |||
Total shareholders' equity at Sep. 30, 2019 | 591,387 | $ 65,598 | 343,994 | 338,116 | (156,321) |
Balance (in shares) at Sep. 30, 2019 | 65,629 | ||||
Total shareholders' equity at Jun. 30, 2019 | 646,525 | $ 65,598 | 342,815 | 345,934 | (107,822) |
Balance (in shares) at Jun. 30, 2019 | 65,629 | ||||
Stock compensation expense | 1,179 | 1,179 | |||
Net income (loss) | 1,207 | 1,207 | |||
Dividends declared | (9,025) | (9,025) | |||
Other comprehensive income (loss) | (48,499) | (48,499) | |||
Total shareholders' equity at Sep. 30, 2019 | 591,387 | $ 65,598 | 343,994 | 338,116 | (156,321) |
Balance (in shares) at Sep. 30, 2019 | 65,629 | ||||
Total shareholders' equity at Dec. 31, 2019 | $ 550,403 | $ 65,598 | 344,994 | 256,371 | (116,560) |
Balance (in shares) at Dec. 31, 2019 | 65,629 | 65,629 | |||
Shares issued on grants of restricted shares | $ 31 | (31) | |||
Shares issued on grants of restricted shares (in shares) | 68 | ||||
Shares issued on grants of performance share units | $ 195 | (195) | |||
Shares issued on grants of performance share units (in shares) | 195 | ||||
Stock compensation expense | $ 815 | 815 | |||
Net income (loss) | (4,258) | (4,258) | |||
Dividends declared | (17,610) | (17,610) | |||
Repurchase of common shares | (162) | $ (24) | (138) | ||
Repurchase of common shares, shares | (24) | ||||
Other comprehensive income (loss) | 21,519 | 21,519 | |||
Total shareholders' equity at Sep. 30, 2020 | $ 550,707 | $ 65,800 | 345,583 | 234,365 | (95,041) |
Balance (in shares) at Sep. 30, 2020 | 65,868 | 65,868 | |||
Total shareholders' equity at Jun. 30, 2020 | $ 494,260 | $ 65,800 | 344,688 | 231,101 | (147,329) |
Balance (in shares) at Jun. 30, 2020 | 65,868 | ||||
Stock compensation expense | 895 | 895 | |||
Net income (loss) | 7,545 | 7,545 | |||
Dividends declared | (4,281) | (4,281) | |||
Other comprehensive income (loss) | 52,288 | 52,288 | |||
Total shareholders' equity at Sep. 30, 2020 | $ 550,707 | $ 65,800 | $ 345,583 | $ 234,365 | $ (95,041) |
Balance (in shares) at Sep. 30, 2020 | 65,868 | 65,868 |
INTERIM CONSOLIDATED STATEMEN_5
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from (used in) operating activities | ||||
Net income (loss) | $ 7,545 | $ 1,207 | $ (4,258) | $ 63,082 |
Adjustments to reconcile net income (loss) to cash flows from operating activities | ||||
Depreciation and amortization | 31,884 | 32,052 | 95,031 | 94,447 |
Deferred income tax provision (recovery) | (4,255) | (1,706) | (10,330) | 2,359 |
Inventory impairment | 8,000 | 6,900 | 25,998 | 13,800 |
Defined benefit pension plans and other post-retirement benefit plan expense | 769 | 866 | 2,270 | 2,582 |
Stock compensation expense | 895 | 1,179 | 815 | 2,036 |
Gain on sale of investments | (15,443) | 0 | (15,443) | 0 |
Foreign exchange transaction losses (gains) | 3,384 | (8,873) | 4,120 | 369 |
Other | (1,801) | 2,887 | (2,993) | 4,331 |
Defined benefit pension plans and other post-retirement benefit plan contributions | (783) | (1,200) | (2,495) | (2,628) |
Changes in working capital | ||||
Accounts receivable | 17,226 | 41,381 | 11,238 | 17,232 |
Inventories | (8,031) | 2,342 | (20,443) | 15,714 |
Accounts payable and accrued expenses | (4,219) | (16,691) | (54,000) | (12,667) |
Other | (6,683) | (3,483) | (6,759) | (12,889) |
Net cash from (used in) operating activities | 28,488 | 56,861 | 22,751 | 187,768 |
Cash flows from (used in) investing activities | ||||
Purchase of property, plant and equipment | (14,639) | (37,049) | (59,201) | (81,417) |
Purchase of amortizable intangible assets | (30) | (215) | (557) | (710) |
Purchase of investments | 0 | 0 | (9,370) | 0 |
Proceeds from sale of investments | 21,540 | 0 | 21,540 | 0 |
Other | 396 | 162 | 1,243 | (181) |
Net cash from (used in) investing activities | 7,267 | (37,102) | (46,345) | (82,308) |
Cash flows from (used in) financing activities | ||||
Proceeds from (repayment of) revolving credit facilities, net | 8,750 | 0 | 34,359 | (58,404) |
Dividend payments | (4,282) | (9,025) | (13,329) | (17,231) |
Repurchase of common shares | 0 | 0 | (162) | (754) |
Payment of debt issuance costs | 0 | (369) | 0 | (1,126) |
Proceeds from government grants | 0 | 147 | 299 | 6,467 |
Other | (302) | (1,735) | (2,729) | (8,664) |
Net cash from (used in) financing activities | 4,166 | (10,982) | 18,438 | (79,712) |
Effect of exchange rate changes on cash and cash equivalents | 2,325 | (1,200) | (349) | (1,340) |
Net increase (decrease) in cash and cash equivalents | 42,246 | 7,577 | (5,505) | 24,408 |
Cash and cash equivalents, beginning of period | 303,334 | 257,322 | 351,085 | 240,491 |
Cash and cash equivalents, end of period | 345,580 | 264,899 | 345,580 | 264,899 |
Supplemental cash flow disclosure | ||||
Cash paid for interest | 38,029 | 32,857 | 76,257 | 55,742 |
Cash paid for income taxes | 2,916 | 3,337 | 17,797 | 42,074 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Leased production equipment | $ 510 | $ 0 | $ 11,206 | $ 0 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation The Interim Consolidated Financial Statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). Mercer Inc. owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in the Cariboo mill with West Fraser Mills Ltd., which is accounted for using the equity method. The Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The year-end Consolidated Balance Sheet data was derived from audited financial statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2019. In the opinion of the Company, the unaudited Interim Consolidated Financial Statements contained herein have been prepared on a consistent basis (except for the change in policy referred to below) with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2019 and contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol "€" refers to euros and the symbol "C$" refers to Canadian dollars. 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. Impact of the COVID-19 Pandemic The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic and information continues to evolve. In mid-2020, many countries eased restrictions on economic and social activities to, among other things, reopen their economies by allowing businesses to restart and encourage economic recovery. Recently there has been a widespread increase or "second wave" in reported infections including in Europe and the U.S. In response, various countries including in Europe have announced the re-imposition of some restrictions on social, business and other activities. Such economic disruption could have a material adverse effect on our business. Note 1. The Company and Summary of Significant Accounting Policies (continued) The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these Interim Consolidated Financial Statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations remain uncertain. New Accounting Pronouncements Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the current incurred loss impairment method with a method that reflects expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which provides entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. These updates were effective for financial statements issued after December 15, 2019. The Company adopted these updates on January 1, 2020 using the modified-retrospective approach. The adoption of these updates did not have an impact on the Interim Consolidated Financial Statements as the Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, letters of credit and setting credit limits prior to the sale. The Company reviews new customers' credit history before granting credit and conducts regular reviews of existing customers' credit performance. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. The Company's exposure to credit losses may increase if its customers are adversely affected by the COVID-19 pandemic. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company's customers are adversely impacted by the COVID-19 pandemic. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this update. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Net [Abstract] | |
Inventories | Note 2. Inventories Inventories as of September 30, 2020 and December 31, 2019, were comprised of the following: September 30, December 31, 2020 2019 Raw materials $ 64,104 $ 99,754 Finished goods 102,570 77,815 Spare parts and other 103,190 95,030 $ 269,864 $ 272,599 For the three and nine month periods ended September 30, 2020, as a result of low pulp prices and high fiber costs for the Canadian mills, the Company recorded inventory impairment charges of $8,000 and $25,998, respectively at certain Canadian mills (2019 – $6,900 and $13,800). These charges were recorded in "Cost of sales, excluding depreciation and amortization" in the Interim Consolidated Statements of Operations. As of September 30, 2020, $4,853 of the write-down was recorded against raw materials inventory and $3,147 was recorded against finished goods inventory. As of December 31, 2019, the Company recorded a $3,500 write-down against raw materials inventory and a $5,700 write-down against finished goods inventory. |
Accounts Payable and Other
Accounts Payable and Other | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other | Note 3. Accounts Payable and Other Accounts payable and other as of September 30, 2020 and December 31, 2019, was comprised of the following: September 30, December 31, 2020 2019 Trade payables $ 62,169 $ 73,721 Accrued expenses 93,517 111,696 Interest payable 14,908 33,198 Income tax payable 14,453 28,080 Other 14,945 8,849 $ 199,992 $ 255,544 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 4. Debt Debt as of September 30, 2020 and December 31, 2019, was comprised of the following: September 30, December 31, 2020 2019 2024 Senior Notes, principal amount $250,000 (a) $ 247,478 $ 246,911 2025 Senior Notes, principal amount $550,000 (a) 546,306 545,665 2026 Senior Notes, principal amount $300,000 (a) 295,933 295,356 Credit arrangements €200 million joint revolving credit facility (b) — — C$60 million revolving credit facility (c) 22,490 — C$60 million revolving credit facility (d) 11,995 — €2.6 million demand loan (e) — — $ 1,124,202 $ 1,087,932 Note 4. Debt (continued) The maturities of the principal portion of debt as of September 30, 2020 were as follows: 2020 $ — 2021 — 2022 — 2023 11,995 2024 272,490 Thereafter 850,000 $ 1,134,485 Certain of the Company's debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As of September 30, 2020, the Company was in compliance with the terms of its debt agreements. (a) In 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 (the "2025 Senior Notes"). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering 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 Mercer Peace River Pulp Ltd. ("MPR"). In October 2019, the Company issued an additional $200,000 in aggregate principal amount of 2025 Senior Notes at a price of 102.75% of their principal amount for a yield to worst of 6.435%. The net proceeds of the offering were $202,063 after deducting the underwriter's discount and offering expenses. The net proceeds were used to redeem $100,000 of remaining aggregate principal amount of outstanding senior notes due 2022 (the "2022 Senior Notes") and for general corporate purposes. In 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 (the "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 2018, the net proceeds, together with cash on hand, were used to redeem $300,000 in aggregate principal amount of the 2022 Senior Notes. In 2017, the Company issued $250,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (the "2024 Senior Notes" and collectively with the 2025 Senior Notes and 2026 Senior Notes, the "Senior Notes"). The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $244,711 after deducting the underwriter's discount and offering expenses. The net proceeds, 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 and for general working capital purposes. 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, 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. Note 4. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250% January 15, 2021 103.688% January 15, 2021 102.750% February 1, 2021 101.625% January 15, 2022 101.844% January 15, 2022 101.375% 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 of September 30, 2020, approximately €13.8 million ($16,142) of this facility was supporting bank guarantees and approximately €186.2 million ($218,018) was available. (c) A C$60.0 million revolving credit facility for MPR 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. Borrowings under the facility are collateralized by, among other things, the mill's inventories and accounts receivable. As of September 30, 2020, approximately C$30.0 million ($22,490) of this facility was drawn and accruing interest at a rate of 1.73%, approximately C$0.9 million ($695) was supporting letters of credit and approximately C$29.1 million ($21,795) was available. (d) In June 2020, Celgar amended its revolving credit facility agreement to increase the principal amount to C$60.0 million. The revolving credit facility matures in July 2023. Borrowings under the facility are collateralized by the mill's inventories, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill's inventories and accounts receivable. The facility is available by way of: (i) Canadian and U.S. denominated advances, which bear interest at a designated prime rate less 0.125% to plus 0.125% per annum; (ii) banker's acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker's acceptance plus 1.25% to 1.625% per annum; and (iii) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.625% per annum. As of September 30, 2020, approximately C$16.0 million ($11,995) of this facility was drawn and accruing interest at a rate of 1.86%, approximately C$1.7 million ($1,274) was supporting letters of credit and approximately C$20.3 million ($15,194) was available. (e) 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 of September 30, 2020, approximately €2.6 million ($2,988) of this facility was supporting bank guarantees and approximately $nil was available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Post-Retirement Benefit Obligations | Note 5. Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Pension benefits are based on employees' earnings and years of service. The defined benefit plans are funded by contributions from the Company based on actuarial estimates and statutory requirements. The components of the net benefit costs for the Celgar and MPR defined benefit plans, in aggregate for the three and nine month periods ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, 2020 2019 Pension Other Post- Retirement Benefits Pension Other Post- Retirement Benefits Service cost $ 857 $ 65 $ 721 $ 68 Interest cost 848 97 883 137 Expected return on plan assets (1,106 ) — (1,009 ) — Amortization of unrecognized items 232 (224 ) 236 (170 ) Net benefit costs $ 831 $ (62 ) $ 831 $ 35 Nine Months Ended September 30, 2020 2019 Pension Other Post- Retirement Benefits Pension Other Post- Retirement Benefits Service cost $ 2,530 $ 192 $ 2,148 $ 203 Interest cost 2,502 286 2,632 410 Expected return on plan assets (3,271 ) — (3,008 ) — Amortization of unrecognized items 693 (662 ) 704 (507 ) Net benefit costs $ 2,454 $ (184 ) $ 2,476 $ 106 The components of the net benefit costs other than service cost are recorded in "Other income" in the Interim Consolidated Statements of Operations. The amortization of unrecognized items relates to net actuarial losses and prior service costs. 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. During the three and nine month periods ended September 30, 2020, the Company made contributions of $320 and $791, respectively to this plan (2019 – $242 and $988). Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. During the three and nine month periods ended September 30, 2020, the Company made contributions of $475 and $1,481, respectively to this plan (2019 – $598 and $1,569). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes Differences between the U.S. Federal statutory and the Company's effective rates for the three and nine month periods ended September 30, 2020 and 2019, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 U.S. Federal statutory rate 21% 21% 21% 21% U.S. Federal statutory rate on income before income taxes $ (1,212 ) $ (304 ) $ (41 ) $ (20,618 ) Tax differential on foreign income 611 (1,177 ) (1,270 ) (9,539 ) Effect of foreign earnings (a) 468 892 (2,402 ) (11,148 ) Valuation allowance (919 ) (8,934 ) (4,084 ) (5,173 ) Tax benefit of partnership structure 935 960 2,805 2,881 Non-taxable foreign subsidies 734 1,571 2,098 2,965 True-up of prior year taxes (1,996 ) 6,733 (2,150 ) 5,612 Other 3,154 15 593 (81 ) $ 1,775 $ (244 ) $ (4,451 ) $ (35,101 ) Comprised of: Current income tax provision $ (2,480 ) $ (1,950 ) $ (14,781 ) $ (32,742 ) Deferred income tax recovery (provision) 4,255 1,706 10,330 (2,359 ) $ 1,775 $ (244 ) $ (4,451 ) $ (35,101 ) (a) Primarily due to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Note 7. Shareholders' Equity Dividends During the nine month period ended September 30, 2020, the Company's board of directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 13, 2020 $ 0.1375 $ 9,047 April 30, 2020 0.0650 4,282 July 30, 2020 0.0650 4,281 $ 0.2675 $ 17,610 On October 29, 2020, the Company's board of directors declared a quarterly dividend of $0.065 per common share. Payment of the dividend will be made on December 30, 2020 to all shareholders of record on December 23, 2020. Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Share Repurchase Program In May 2019, the Company's board of directors authorized a common stock repurchase program, under which the Company may repurchase up to $50,000 of its shares, which expired in May 2020 Note 7. Shareholders' Equity (continued) Stock Based Compensation In June 2010, the Company adopted a stock incentive plan which provides for options, restricted stock rights, restricted shares, performance shares, performance share units ("PSUs") and stock appreciation rights to be awarded to employees, consultants and non-employee directors. During the three and nine month periods ended September 30, 2020, there were no issued and outstanding options, restricted stock rights, performance shares or stock appreciation rights. As of September 30, 2020, after factoring in all allocated shares, there remain approximately 1.7 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 three and nine month periods ended September 30, 2020, the Company recognized an expense of $757 and $444, respectively related to PSUs (2019 – $1,066 and $1,669). The following table summarizes PSU activity during the period: Number of PSUs Outstanding as of January 1, 2020 1,764,976 Granted 1,140,834 Vested and issued (194,948 ) Forfeited (319,780 ) Outstanding as of September 30, 2020 2,391,082 Restricted Shares Restricted shares generally vest at the end of one year. For the three and nine month periods ended September 30, 2020, the Company recognized an expense of $138 and $371, respectively related to restricted shares (2019 - $113 and $367). As of September 30, 2020, the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $367 which will be amortized over the remaining vesting periods. The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding as of January 1, 2020 31,405 Granted 68,140 Vested (31,405 ) Outstanding as of September 30, 2020 68,140 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 8. Net Income (Loss) Per Common Share The reconciliation of basic and diluted net income (loss) per common share for the three and nine month periods ended September 30, 2020 and 2019 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) Basic and diluted $ 7,545 $ 1,207 $ (4,258 ) $ 63,082 Net income (loss) per common share Basic and diluted $ 0.11 $ 0.02 $ (0.06 ) $ 0.96 Weighted average number of common shares outstanding: Basic (a) 65,799,946 65,598,177 65,757,921 65,538,037 Effect of dilutive instruments: PSUs 79,489 372,495 — 358,851 Restricted shares 11,413 3,198 — 13,437 Diluted 65,890,848 65,973,870 65,757,921 65,910,325 (a) For the three and nine month periods ended September 30, 2020, the basic weighted average number of common shares outstanding excludes 68,140 restricted shares which have been issued, but have not vested as of September 30, 2020 (2019 – 31,405 restricted shares). The calculation of diluted net income (loss) per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per common share. Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the three and nine month periods ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSUs — — 2,391,082 — Restricted shares — — 68,140 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 9. Accumulated Other Comprehensive Loss The change in the accumulated other comprehensive loss by component (net of tax) for the nine month period ended September 30, 2020 was as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post- Retirement Benefit Items Total Balance as of January 1, 2020 $ (114,709 ) $ (1,851 ) $ (116,560 ) Other comprehensive income before reclassifications 21,488 — 21,488 Amounts reclassified from accumulated other comprehensive loss — 31 31 Other comprehensive income, net of taxes 21,488 31 21,519 Balance as of September 30, 2020 $ (93,221 ) $ (1,820 ) $ (95,041 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10. Related Party Transactions The Company enters into related party transactions with its joint ventures. For the three and nine month periods ended September 30, 2020, pulp purchases from the Company's 50% owned Cariboo mill, which are transacted at the Cariboo mill's cost, were $20,717 and $54,253, respectively (2019 – – – |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11. 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 Cariboo mill are aggregated into the pulp segment, and the Friesau sawmill is a separate reportable 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 reportable segment. None of the income or loss items following operating income in the Company's Interim Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management. Information about certain segment data for the three and nine month periods ended September 30, 2020 and 2019, was as follows: Three Months Ended September 30, 2020 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 274,916 $ 57,053 $ 1,182 $ 333,151 Operating income (loss) $ 3,753 $ 11,963 $ (1,980 ) $ 13,736 Depreciation and amortization $ 28,251 $ 3,446 $ 187 $ 31,884 Revenues by major products Pulp $ 253,056 $ — $ — $ 253,056 Lumber — 53,612 — 53,612 Energy and chemicals 21,860 2,226 1,182 25,268 Wood residuals — 1,215 — 1,215 Total revenues $ 274,916 $ 57,053 $ 1,182 $ 333,151 Revenues by geographical markets (a) U.S. $ 29,295 $ 31,466 $ 540 $ 61,301 Germany 79,535 11,744 — 91,279 China 83,554 — — 83,554 Other countries 82,532 13,843 642 97,017 Total revenues $ 274,916 $ 57,053 $ 1,182 $ 333,151 (a) Sales are attributed to countries based on the ship-to location provided by the customer. Note 11. Segment Information (continued) Three Months Ended September 30, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 345,060 $ 36,458 $ 2,018 $ 383,536 Operating income (loss) $ 21,386 $ 544 $ (3,183 ) $ 18,747 Depreciation and amortization $ 29,744 $ 2,016 $ 292 $ 32,052 Revenues by major products Pulp $ 322,707 $ — $ — $ 322,707 Lumber — 32,687 — 32,687 Energy and chemicals 22,353 1,621 2,018 25,992 Wood residuals — 2,150 — 2,150 Total revenues $ 345,060 $ 36,458 $ 2,018 $ 383,536 Revenues by geographical markets (a) U.S. $ 30,693 $ 13,027 $ — $ 43,720 Germany 97,339 11,915 — 109,254 China 113,578 — — 113,578 Other countries 103,450 11,516 2,018 116,984 Total revenues $ 345,060 $ 36,458 $ 2,018 $ 383,536 (a) Sales are attributed to countries based on the ship-to location provided by the customer. Nine Months Ended September 30, 2020 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 Operating income (loss) $ 33,302 $ 21,845 $ (7,034 ) $ 48,113 Depreciation and amortization $ 85,841 $ 8,627 $ 563 $ 95,031 Total assets (a) $ 1,767,397 $ 99,743 $ 177,595 $ 2,044,735 Revenues by major products Pulp $ 808,923 $ — $ — $ 808,923 Lumber — 132,209 — 132,209 Energy and chemicals 67,644 7,486 3,820 78,950 Wood residuals — 4,863 — 4,863 Total revenues $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 Revenues by geographical markets (b) U.S. $ 102,813 $ 66,710 $ 1,701 $ 171,224 Germany 246,775 38,941 — 285,716 China 247,916 — — 247,916 Other countries 279,063 38,907 2,119 320,089 Total revenues $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 (a) Total assets for the pulp segment includes the Company's $47,865 investment in joint ventures, primarily for the Cariboo mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 11. Segment Information (continued) Nine Months Ended September 30, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 Operating income (loss) $ 157,157 $ 2,075 $ (9,123 ) $ 150,109 Depreciation and amortization $ 87,616 $ 5,937 $ 894 $ 94,447 Revenues by major products Pulp $ 1,095,225 $ — $ — $ 1,095,225 Lumber — 107,172 — 107,172 Energy and chemicals 71,108 7,075 6,557 84,740 Wood residuals — 6,102 — 6,102 Total revenues $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 Revenues by geographical markets (a) U.S. $ 124,039 $ 38,997 $ — $ 163,036 Germany 338,678 40,860 — 379,538 China 347,232 — — 347,232 Other countries 356,384 40,492 6,557 403,433 Total revenues $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 (a) Sales are attributed to countries based on the ship-to location provided by the customer. As of December 31, 2019, the Company had total assets of $1,782,105 in the pulp segment, $83,102 in the wood products segment and $200,513 in corporate and other. Total assets for the pulp segment includes the Company's $53,122 investment in joint ventures, primarily for the Cariboo mill. 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 three and nine month periods ended September 30, 2020, the pulp segment sold $42 and $388, respectively of residual fuel to the wood products segment (2019 – $59 and $423) and the wood products segment sold $2,246 and $9,676, respectively of residual fiber to the pulp segment (2019 – $2,360 and $11,713). |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Note 12. Financial Instruments and Fair Value Measurement Due to their short-term maturity, the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and other approximates their fair value. The estimated fair values of the Company's outstanding debt under the fair value hierarchy as of September 30, 2020 and December 31, 2019 were as follows: Fair value measurements as of September 30, 2020 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 34,485 $ — $ 34,485 Senior Notes — 1,095,500 — 1,095,500 $ — $ 1,129,985 $ — $ 1,129,985 Fair value measurements as of December 31, 2019 using: Description Level 1 Level 2 Level 3 Total Senior Notes $ — $ 1,156,673 $ — $ 1,156,673 The carrying value of the revolving credit facilities classified as Level 2 approximates the fair value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities. The fair value of the Senior Notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company's Senior Notes are not carried at fair value on the Interim Consolidated Balance Sheets as of September 30, 2020 or December 31, 2019. However, fair value disclosure is required. The carrying value of the Company's Senior Notes, net of note issuance costs and premium is $1,089,717 as of September 30, 2020 (December 31, 2019 – For the three and nine month periods ended September 30, 2020, the Company recognized a realized gain of $15,443 on the sale of investments in “Other income” in the Interim Consolidated Statements of Operations. 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. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. Concentrations of credit risk on the sale of pulp, lumber and other wood residuals are with customers and agents based primarily in Germany, China, the U.S. and Italy. The Company’s exposure to credit losses may increase if its customers are adversely affected by the COVID-19 pandemic. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company’s customers are adversely impacted by the COVID-19 pandemic. The carrying amount of cash and cash equivalents of $345,580 and accounts receivable of $202,619 recorded in the Interim Consolidated Balance Sheet, net of any allowances for losses, represents the Company’s maximum exposure to credit risk. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. 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. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Interim Consolidated Financial Statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). Mercer Inc. owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in the Cariboo mill with West Fraser Mills Ltd., which is accounted for using the equity method. The Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The year-end Consolidated Balance Sheet data was derived from audited financial statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2019. In the opinion of the Company, the unaudited Interim Consolidated Financial Statements contained herein have been prepared on a consistent basis (except for the change in policy referred to below) with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2019 and contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol "€" refers to euros and the symbol "C$" refers to Canadian dollars. |
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. |
Impact of the COVID-19 Pandemic | Impact of the COVID-19 Pandemic The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic and information continues to evolve. In mid-2020, many countries eased restrictions on economic and social activities to, among other things, reopen their economies by allowing businesses to restart and encourage economic recovery. Recently there has been a widespread increase or "second wave" in reported infections including in Europe and the U.S. In response, various countries including in Europe have announced the re-imposition of some restrictions on social, business and other activities. Such economic disruption could have a material adverse effect on our business. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these Interim Consolidated Financial Statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations remain uncertain. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the current incurred loss impairment method with a method that reflects expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which provides entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. These updates were effective for financial statements issued after December 15, 2019. The Company adopted these updates on January 1, 2020 using the modified-retrospective approach. The adoption of these updates did not have an impact on the Interim Consolidated Financial Statements as the Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, letters of credit and setting credit limits prior to the sale. The Company reviews new customers' credit history before granting credit and conducts regular reviews of existing customers' credit performance. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. The Company's exposure to credit losses may increase if its customers are adversely affected by the COVID-19 pandemic. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company's customers are adversely impacted by the COVID-19 pandemic. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this update. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating its contracts and the optional expedients provided by the new standard. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Net [Abstract] | |
Components of Inventories | Inventories as of September 30, 2020 and December 31, 2019, were comprised of the following: September 30, December 31, 2020 2019 Raw materials $ 64,104 $ 99,754 Finished goods 102,570 77,815 Spare parts and other 103,190 95,030 $ 269,864 $ 272,599 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of September 30, 2020 and December 31, 2019, was comprised of the following: September 30, December 31, 2020 2019 Trade payables $ 62,169 $ 73,721 Accrued expenses 93,517 111,696 Interest payable 14,908 33,198 Income tax payable 14,453 28,080 Other 14,945 8,849 $ 199,992 $ 255,544 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of September 30, 2020 and December 31, 2019, was comprised of the following: September 30, December 31, 2020 2019 2024 Senior Notes, principal amount $250,000 (a) $ 247,478 $ 246,911 2025 Senior Notes, principal amount $550,000 (a) 546,306 545,665 2026 Senior Notes, principal amount $300,000 (a) 295,933 295,356 Credit arrangements €200 million joint revolving credit facility (b) — — C$60 million revolving credit facility (c) 22,490 — C$60 million revolving credit facility (d) 11,995 — €2.6 million demand loan (e) — — $ 1,124,202 $ 1,087,932 (a) In 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 (the "2025 Senior Notes"). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering 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 Mercer Peace River Pulp Ltd. ("MPR"). In October 2019, the Company issued an additional $200,000 in aggregate principal amount of 2025 Senior Notes at a price of 102.75% of their principal amount for a yield to worst of 6.435%. The net proceeds of the offering were $202,063 after deducting the underwriter's discount and offering expenses. The net proceeds were used to redeem $100,000 of remaining aggregate principal amount of outstanding senior notes due 2022 (the "2022 Senior Notes") and for general corporate purposes. In 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 (the "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 2018, the net proceeds, together with cash on hand, were used to redeem $300,000 in aggregate principal amount of the 2022 Senior Notes. In 2017, the Company issued $250,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (the "2024 Senior Notes" and collectively with the 2025 Senior Notes and 2026 Senior Notes, the "Senior Notes"). The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $244,711 after deducting the underwriter's discount and offering expenses. The net proceeds, 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 and for general working capital purposes. 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, 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. Note 4. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250% January 15, 2021 103.688% January 15, 2021 102.750% February 1, 2021 101.625% January 15, 2022 101.844% January 15, 2022 101.375% 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 of September 30, 2020, approximately €13.8 million ($16,142) of this facility was supporting bank guarantees and approximately €186.2 million ($218,018) was available. (c) A C$60.0 million revolving credit facility for MPR 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. Borrowings under the facility are collateralized by, among other things, the mill's inventories and accounts receivable. As of September 30, 2020, approximately C$30.0 million ($22,490) of this facility was drawn and accruing interest at a rate of 1.73%, approximately C$0.9 million ($695) was supporting letters of credit and approximately C$29.1 million ($21,795) was available. (d) In June 2020, Celgar amended its revolving credit facility agreement to increase the principal amount to C$60.0 million. The revolving credit facility matures in July 2023. Borrowings under the facility are collateralized by the mill's inventories, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill's inventories and accounts receivable. The facility is available by way of: (i) Canadian and U.S. denominated advances, which bear interest at a designated prime rate less 0.125% to plus 0.125% per annum; (ii) banker's acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker's acceptance plus 1.25% to 1.625% per annum; and (iii) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.625% per annum. As of September 30, 2020, approximately C$16.0 million ($11,995) of this facility was drawn and accruing interest at a rate of 1.86%, approximately C$1.7 million ($1,274) was supporting letters of credit and approximately C$20.3 million ($15,194) was available. (e) 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 of September 30, 2020, approximately €2.6 million ($2,988) of this facility was supporting bank guarantees and approximately $nil was available. |
Principal Maturities of Debt | The maturities of the principal portion of debt as of September 30, 2020 were as follows: 2020 $ — 2021 — 2022 — 2023 11,995 2024 272,490 Thereafter 850,000 $ 1,134,485 |
Debt Redemption Period for Outstanding Senior Notes | The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250% January 15, 2021 103.688% January 15, 2021 102.750% February 1, 2021 101.625% January 15, 2022 101.844% January 15, 2022 101.375% February 1, 2022 and thereafter 100.000% January 15, 2023 and thereafter 100.000% January 15, 2023 and thereafter 100.000% |
Pension And Other Post-Retire_2
Pension And Other Post-Retirement Benefit Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of the net benefit costs for the Celgar and MPR defined benefit plans, in aggregate for the three and nine month periods ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, 2020 2019 Pension Other Post- Retirement Benefits Pension Other Post- Retirement Benefits Service cost $ 857 $ 65 $ 721 $ 68 Interest cost 848 97 883 137 Expected return on plan assets (1,106 ) — (1,009 ) — Amortization of unrecognized items 232 (224 ) 236 (170 ) Net benefit costs $ 831 $ (62 ) $ 831 $ 35 Nine Months Ended September 30, 2020 2019 Pension Other Post- Retirement Benefits Pension Other Post- Retirement Benefits Service cost $ 2,530 $ 192 $ 2,148 $ 203 Interest cost 2,502 286 2,632 410 Expected return on plan assets (3,271 ) — (3,008 ) — Amortization of unrecognized items 693 (662 ) 704 (507 ) Net benefit costs $ 2,454 $ (184 ) $ 2,476 $ 106 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal statutory and the Company's effective rates for the three and nine month periods ended September 30, 2020 and 2019, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 U.S. Federal statutory rate 21% 21% 21% 21% U.S. Federal statutory rate on income before income taxes $ (1,212 ) $ (304 ) $ (41 ) $ (20,618 ) Tax differential on foreign income 611 (1,177 ) (1,270 ) (9,539 ) Effect of foreign earnings (a) 468 892 (2,402 ) (11,148 ) Valuation allowance (919 ) (8,934 ) (4,084 ) (5,173 ) Tax benefit of partnership structure 935 960 2,805 2,881 Non-taxable foreign subsidies 734 1,571 2,098 2,965 True-up of prior year taxes (1,996 ) 6,733 (2,150 ) 5,612 Other 3,154 15 593 (81 ) $ 1,775 $ (244 ) $ (4,451 ) $ (35,101 ) Comprised of: Current income tax provision $ (2,480 ) $ (1,950 ) $ (14,781 ) $ (32,742 ) Deferred income tax recovery (provision) 4,255 1,706 10,330 (2,359 ) $ 1,775 $ (244 ) $ (4,451 ) $ (35,101 ) (a) Primarily due to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders Equity [Line Items] | |
Summary of Dividends Declared | During the nine month period ended September 30, 2020, the Company's board of directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 13, 2020 $ 0.1375 $ 9,047 April 30, 2020 0.0650 4,282 July 30, 2020 0.0650 4,281 $ 0.2675 $ 17,610 |
Performance Share Units | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | The following table summarizes PSU activity during the period: Number of PSUs Outstanding as of January 1, 2020 1,764,976 Granted 1,140,834 Vested and issued (194,948 ) Forfeited (319,780 ) Outstanding as of September 30, 2020 2,391,082 |
Restricted Stock | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding as of January 1, 2020 31,405 Granted 68,140 Vested (31,405 ) Outstanding as of September 30, 2020 68,140 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The reconciliation of basic and diluted net income (loss) per common share for the three and nine month periods ended September 30, 2020 and 2019 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) Basic and diluted $ 7,545 $ 1,207 $ (4,258 ) $ 63,082 Net income (loss) per common share Basic and diluted $ 0.11 $ 0.02 $ (0.06 ) $ 0.96 Weighted average number of common shares outstanding: Basic (a) 65,799,946 65,598,177 65,757,921 65,538,037 Effect of dilutive instruments: PSUs 79,489 372,495 — 358,851 Restricted shares 11,413 3,198 — 13,437 Diluted 65,890,848 65,973,870 65,757,921 65,910,325 (a) For the three and nine month periods ended September 30, 2020, the basic weighted average number of common shares outstanding excludes 68,140 restricted shares which have been issued, but have not vested as of September 30, 2020 (2019 – 31,405 restricted shares). |
Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share | Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the three and nine month periods ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSUs — — 2,391,082 — Restricted shares — — 68,140 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Change in Accumulated Other Comprehensive Loss by Components | The change in the accumulated other comprehensive loss by component (net of tax) for the nine month period ended September 30, 2020 was as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post- Retirement Benefit Items Total Balance as of January 1, 2020 $ (114,709 ) $ (1,851 ) $ (116,560 ) Other comprehensive income before reclassifications 21,488 — 21,488 Amounts reclassified from accumulated other comprehensive loss — 31 31 Other comprehensive income, net of taxes 21,488 31 21,519 Balance as of September 30, 2020 $ (93,221 ) $ (1,820 ) $ (95,041 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the three and nine month periods ended September 30, 2020 and 2019, was as follows: Three Months Ended September 30, 2020 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 274,916 $ 57,053 $ 1,182 $ 333,151 Operating income (loss) $ 3,753 $ 11,963 $ (1,980 ) $ 13,736 Depreciation and amortization $ 28,251 $ 3,446 $ 187 $ 31,884 Revenues by major products Pulp $ 253,056 $ — $ — $ 253,056 Lumber — 53,612 — 53,612 Energy and chemicals 21,860 2,226 1,182 25,268 Wood residuals — 1,215 — 1,215 Total revenues $ 274,916 $ 57,053 $ 1,182 $ 333,151 Revenues by geographical markets (a) U.S. $ 29,295 $ 31,466 $ 540 $ 61,301 Germany 79,535 11,744 — 91,279 China 83,554 — — 83,554 Other countries 82,532 13,843 642 97,017 Total revenues $ 274,916 $ 57,053 $ 1,182 $ 333,151 (a) Sales are attributed to countries based on the ship-to location provided by the customer. Note 11. Segment Information (continued) Three Months Ended September 30, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 345,060 $ 36,458 $ 2,018 $ 383,536 Operating income (loss) $ 21,386 $ 544 $ (3,183 ) $ 18,747 Depreciation and amortization $ 29,744 $ 2,016 $ 292 $ 32,052 Revenues by major products Pulp $ 322,707 $ — $ — $ 322,707 Lumber — 32,687 — 32,687 Energy and chemicals 22,353 1,621 2,018 25,992 Wood residuals — 2,150 — 2,150 Total revenues $ 345,060 $ 36,458 $ 2,018 $ 383,536 Revenues by geographical markets (a) U.S. $ 30,693 $ 13,027 $ — $ 43,720 Germany 97,339 11,915 — 109,254 China 113,578 — — 113,578 Other countries 103,450 11,516 2,018 116,984 Total revenues $ 345,060 $ 36,458 $ 2,018 $ 383,536 (a) Sales are attributed to countries based on the ship-to location provided by the customer. Nine Months Ended September 30, 2020 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 Operating income (loss) $ 33,302 $ 21,845 $ (7,034 ) $ 48,113 Depreciation and amortization $ 85,841 $ 8,627 $ 563 $ 95,031 Total assets (a) $ 1,767,397 $ 99,743 $ 177,595 $ 2,044,735 Revenues by major products Pulp $ 808,923 $ — $ — $ 808,923 Lumber — 132,209 — 132,209 Energy and chemicals 67,644 7,486 3,820 78,950 Wood residuals — 4,863 — 4,863 Total revenues $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 Revenues by geographical markets (b) U.S. $ 102,813 $ 66,710 $ 1,701 $ 171,224 Germany 246,775 38,941 — 285,716 China 247,916 — — 247,916 Other countries 279,063 38,907 2,119 320,089 Total revenues $ 876,567 $ 144,558 $ 3,820 $ 1,024,945 (a) Total assets for the pulp segment includes the Company's $47,865 investment in joint ventures, primarily for the Cariboo mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 11. Segment Information (continued) Nine Months Ended September 30, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 Operating income (loss) $ 157,157 $ 2,075 $ (9,123 ) $ 150,109 Depreciation and amortization $ 87,616 $ 5,937 $ 894 $ 94,447 Revenues by major products Pulp $ 1,095,225 $ — $ — $ 1,095,225 Lumber — 107,172 — 107,172 Energy and chemicals 71,108 7,075 6,557 84,740 Wood residuals — 6,102 — 6,102 Total revenues $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 Revenues by geographical markets (a) U.S. $ 124,039 $ 38,997 $ — $ 163,036 Germany 338,678 40,860 — 379,538 China 347,232 — — 347,232 Other countries 356,384 40,492 6,557 403,433 Total revenues $ 1,166,333 $ 120,349 $ 6,557 $ 1,293,239 (a) Sales are attributed to countries based on the ship-to location provided by the customer. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of the Outstanding Debt | The estimated fair values of the Company's outstanding debt under the fair value hierarchy as of September 30, 2020 and December 31, 2019 were as follows: Fair value measurements as of September 30, 2020 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 34,485 $ — $ 34,485 Senior Notes — 1,095,500 — 1,095,500 $ — $ 1,129,985 $ — $ 1,129,985 Fair value measurements as of December 31, 2019 using: Description Level 1 Level 2 Level 3 Total Senior Notes $ — $ 1,156,673 $ — $ 1,156,673 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 30, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |
Economic interest percentage in subsidiaries | 100.00% |
ASU 2016-13 | |
Summary Of Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
MPR - Cariboo Mill | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage | 50.00% |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Net [Abstract] | ||
Raw materials | $ 64,104 | $ 99,754 |
Finished goods | 102,570 | 77,815 |
Spare parts and other | 103,190 | 95,030 |
Inventories | $ 269,864 | $ 272,599 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Inventory [Line Items] | |||||
Inventory write-down | $ 8,000 | $ 6,900 | $ 25,998 | $ 13,800 | |
Raw Materials | |||||
Inventory [Line Items] | |||||
Inventory impairment changes | 4,853 | 4,853 | $ 3,500 | ||
Finished Goods Inventory | |||||
Inventory [Line Items] | |||||
Inventory impairment changes | $ 3,147 | $ 3,147 | $ 5,700 |
Accounts Payable and Other - Sc
Accounts Payable and Other - Schedule of Accounts Payable and Other (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 62,169 | $ 73,721 |
Accrued expenses | 93,517 | 111,696 |
Interest payable | 14,908 | 33,198 |
Income tax payable | 14,453 | 28,080 |
Other | 14,945 | 8,849 |
Accounts payable and other | $ 199,992 | $ 255,544 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) $ in Thousands, $ in Millions | Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,124,202 | $ 1,087,932 | |
2024 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 247,478 | 246,911 | |
2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 546,306 | 545,665 | |
2026 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 295,933 | 295,356 | |
German Joint RCF - EUR 200 Million | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 0 | 0 | |
MPR Credit Facility - C$60 Million | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 22,490 | $ 30 | 0 |
Celgar Credit Facility - C$60.0 Million | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 11,995 | $ 16 | 0 |
Rosenthal Credit Facility - EUR 2.6 Million | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 0 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) | Oct. 31, 2019USD ($) | Dec. 20, 2017USD ($) | Feb. 03, 2017USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020CAD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Long-term Debt | $ 1,124,202,000 | $ 1,087,932,000 | ||||||
2024 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, maturity date | Feb. 1, 2024 | |||||||
Debt, face amount | $ 250,000,000 | |||||||
2024 Senior Notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, redemption notice days | 30 days | |||||||
2024 Senior Notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, redemption notice days | 60 days | |||||||
2025 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, maturity date | Jan. 15, 2025 | Jan. 15, 2025 | ||||||
Debt, face amount | $ 200,000,000 | $ 550,000,000 | $ 350,000,000 | |||||
Debt, interest rate | 7.375% | |||||||
Debt, issued price percentage of principal amount | 102.75% | 100.00% | ||||||
Long-term Debt | $ 202,063,000 | $ 342,682,000 | ||||||
Debt instrument, yield to worst percentage | 6.435% | |||||||
2026 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, maturity date | Jan. 15, 2026 | Jan. 15, 2026 | ||||||
Debt, face amount | $ 300,000,000 | $ 300,000,000 | ||||||
Debt, interest rate | 5.50% | |||||||
Debt, issued price percentage of principal amount | 100.00% | |||||||
Long-term Debt | $ 293,795,000 | |||||||
German Joint RCF - EUR 200 Million | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | € | € 200,000,000 | |||||||
Long-term Debt | $ 0 | 0 | ||||||
Debt, description of variable basis spread | Euribor | |||||||
Debt, amount of debt supporting bank guarantees | $ 16,142,000 | 13,800,000 | ||||||
Line of credit facility, remaining borrowing capacity | $ 218,018,000 | € 186,200,000 | ||||||
German Joint RCF - EUR 200 Million | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.05% | |||||||
German Joint RCF - EUR 200 Million | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 2.00% | |||||||
MPR Credit Facility - C$60 Million | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | |||||||
Debt, interest rate | 1.73% | 1.73% | 1.73% | |||||
Long-term Debt | $ 22,490,000 | $ 30,000,000 | 0 | |||||
Line of credit facility, remaining borrowing capacity | 21,795,000 | 29,100,000 | ||||||
Line of credit, letters of credit outstanding, amount | $ 695,000 | 900,000 | ||||||
MPR Credit Facility - C$60 Million | Canadian Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | designated prime rate | |||||||
MPR Credit Facility - C$60 Million | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | banker's acceptance | |||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1a | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | federal funds rate | |||||||
Debt, variable basis spread | 0.50% | |||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1b | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | LIBOR | |||||||
Debt, variable basis spread | 1.00% | |||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1c | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | bank's applicable reference rate for U.S. dollar loans | |||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | LIBOR | |||||||
MPR Credit Facility - C$60 Million | Minimum | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.25% | |||||||
MPR Credit Facility - C$60 Million | Minimum | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.25% | |||||||
MPR Credit Facility - C$60 Million | Maximum | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.50% | |||||||
MPR Credit Facility - C$60 Million | Maximum | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.50% | |||||||
Celgar Credit Facility - C$60.0 Million | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | 60,000,000 | |||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | |||||||
Debt, interest rate | 1.86% | 1.86% | 1.86% | |||||
Long-term Debt | $ 11,995,000 | $ 16,000,000 | 0 | |||||
Line of credit facility, remaining borrowing capacity | 15,194,000 | 20,300,000 | ||||||
Line of credit, letters of credit outstanding, amount | $ 1,274,000 | $ 1,700,000 | ||||||
Celgar Credit Facility - C$60.0 Million | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | banker's acceptance | |||||||
Celgar Credit Facility - C$60.0 Million | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | LIBOR | |||||||
Celgar Credit Facility - C$60.0 Million | Canadian & US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, description of variable basis spread | designated prime rate | |||||||
Celgar Credit Facility - C$60.0 Million | Minimum | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.25% | |||||||
Celgar Credit Facility - C$60.0 Million | Minimum | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.25% | |||||||
Celgar Credit Facility - C$60.0 Million | Minimum | Canadian & US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | (0.125%) | |||||||
Celgar Credit Facility - C$60.0 Million | Maximum | Canadian Dollar Borrowings Rate Option 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.625% | |||||||
Celgar Credit Facility - C$60.0 Million | Maximum | US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 1.625% | |||||||
Celgar Credit Facility - C$60.0 Million | Maximum | Canadian & US Dollar Borrowings Rate Option 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable basis spread | 0.125% | |||||||
Rosenthal Credit Facility - EUR 2.6 Million | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | € | € 2,600,000 | |||||||
Long-term Debt | $ 0 | $ 0 | ||||||
Debt, description of variable basis spread | three-month Euribor | |||||||
Debt, variable basis spread | 2.50% | |||||||
Debt, amount of debt supporting bank guarantees | $ 2,988,000 | € 2,600,000 | ||||||
Line of credit facility, remaining borrowing capacity | $ 0 | |||||||
Senior Notes 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, redemption value | $ 100,000,000 | $ 300,000,000 | ||||||
Senior Notes 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, maturity date | Feb. 1, 2024 | |||||||
Debt, face amount | $ 250,000,000 | |||||||
Debt, interest rate | 6.50% | |||||||
Debt, issued price percentage of principal amount | 100.00% | |||||||
Long-term Debt | $ 244,711,000 | |||||||
2019 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, repurchase amount | $ 227,000,000 | |||||||
Senior Notes 2025 and 2026 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, redemption notice days | 10 days | |||||||
Senior Notes 2025 and 2026 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, redemption notice days | 60 days |
Debt - Principal Maturities of
Debt - Principal Maturities of Debt (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 11,995 |
2024 | 272,490 |
Thereafter | 850,000 |
Total debt | $ 1,134,485 |
Debt - Debt Redemption Period f
Debt - Debt Redemption Period for Senior Notes (Details) | 9 Months Ended |
Sep. 30, 2020 | |
2024 Senior Notes | February 1, 2020 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.25% |
2024 Senior Notes | February 1, 2021 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.625% |
2024 Senior Notes | February 1, 2022 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2025 Senior Notes | January 15, 2021 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.688% |
2025 Senior Notes | January 15, 2022 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.844% |
2025 Senior Notes | January 15, 2023 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2026 Senior Notes | January 15, 2021 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.75% |
2026 Senior Notes | January 15, 2022 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.375% |
2026 Senior Notes | January 15, 2023 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Pension And Other Post-Retire_3
Pension And Other Post-Retirement Benefit Obligations - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 857 | $ 721 | $ 2,530 | $ 2,148 |
Interest cost | 848 | 883 | 2,502 | 2,632 |
Expected return on plan assets | (1,106) | (1,009) | (3,271) | (3,008) |
Amortization of unrecognized items | 232 | 236 | 693 | 704 |
Net benefit costs | 831 | 831 | 2,454 | 2,476 |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 65 | 68 | 192 | 203 |
Interest cost | 97 | 137 | 286 | 410 |
Expected return on plan assets | 0 | 0 | ||
Amortization of unrecognized items | (224) | (170) | (662) | (507) |
Net benefit costs | $ (62) | $ 35 | $ (184) | $ 106 |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Defined contribution plan, employer discretionary contribution amount | $ 320 | $ 242 | $ 791 | $ 988 |
Multiemployer plan, contributions by employer | $ 475 | $ 598 | $ 1,481 | $ 1,569 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||||
U.S. Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
U.S. Federal statutory rate on income before income taxes | $ (1,212) | $ (304) | $ (41) | $ (20,618) |
Tax differential on foreign income | 611 | (1,177) | (1,270) | (9,539) |
Effect of foreign earnings | 468 | 892 | (2,402) | (11,148) |
Valuation allowance | (919) | (8,934) | (4,084) | (5,173) |
Tax benefit of partnership structure | 935 | 960 | 2,805 | 2,881 |
Non-taxable foreign subsidies | 734 | 1,571 | 2,098 | 2,965 |
True-up of prior year taxes | (1,996) | 6,733 | (2,150) | 5,612 |
Other | 3,154 | 15 | 593 | (81) |
Total income tax provision | 1,775 | (244) | (4,451) | (35,101) |
Current income tax provision | (2,480) | (1,950) | (14,781) | (32,742) |
Deferred income tax recovery (provision) | $ 4,255 | $ 1,706 | $ 10,330 | $ (2,359) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||||
Date Declared | Jul. 30, 2020 | Apr. 30, 2020 | Feb. 13, 2020 | |||
Dividends declared per common share | $ 0.0650 | $ 0.0650 | $ 0.1375 | $ 0.1375 | $ 0.2675 | $ 0.4000 |
Dividends, Common Stock, Cash | $ 4,281 | $ 4,282 | $ 9,047 | $ 9,025 | $ 17,610 | $ 26,255 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 29, 2020 | May 31, 2020 | May 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared per common share | $ 0.0650 | $ 0.0650 | $ 0.1375 | $ 0.1375 | $ 0.2675 | $ 0.4000 | ||||
Stock repurchase program expiration date | May 31, 2020 | |||||||||
Payments for repurchase of common stock | $ 0 | $ 0 | $ 162 | $ 754 | ||||||
Common shares available for grant | 1,700,000 | 1,700,000 | ||||||||
Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 0 | 0 | ||||||||
Shares outstanding | 0 | 0 | ||||||||
Restricted Stock Rights | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 0 | 0 | ||||||||
Shares outstanding | 0 | 0 | ||||||||
Performance Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 0 | 0 | ||||||||
Shares outstanding | 0 | 0 | ||||||||
Stock Appreciation Rights (SARs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 0 | 0 | ||||||||
Shares outstanding | 0 | 0 | ||||||||
Performance Share Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 1,140,834 | |||||||||
Shares outstanding | 2,391,082 | 2,391,082 | 1,764,976 | |||||||
Vesting period | 3 years | |||||||||
Expense recognized | $ 757 | 1,066 | $ 444 | 1,669 | ||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted | 68,140 | |||||||||
Shares outstanding | 68,140 | 68,140 | 31,405 | |||||||
Vesting period | 1 year | |||||||||
Expense recognized | $ 138 | $ 113 | $ 371 | $ 367 | ||||||
Unrecognized compensation cost | $ 367 | $ 367 | ||||||||
Share Repurchase Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum amount of stock which can be repurchased, value | $ 50,000 | |||||||||
Payments for repurchase of common stock | $ 162 | |||||||||
Stock repurchased during period, shares | 23,584 | |||||||||
Average repurchase price per share | $ 6.84 | |||||||||
Dividend Declared | Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared per common share | $ 0.065 | |||||||||
Dividends Payable, Date to be Paid | Dec. 30, 2020 | |||||||||
Dividends Payable, Date of Record | Dec. 23, 2020 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Share Activity - PSU's (Details) - Performance Share Units | 9 Months Ended |
Sep. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 1,764,976 |
Granted | 1,140,834 |
Vested and issued (in shares) | (194,948) |
Forfeited (in shares) | (319,780) |
Outstanding - Ending | 2,391,082 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Share Activity - Restricted Shares (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 31,405 |
Granted | 68,140 |
Vested | (31,405) |
Outstanding - Ending | 68,140 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Net income (loss) - basic and diluted | $ 7,545 | $ 1,207 | $ (4,258) | $ 63,082 |
Net income (loss) per common share, basic and diluted | $ 0.11 | $ 0.02 | $ (0.06) | $ 0.96 |
Basic, Weighted average number of common shares outstanding | 65,799,946 | 65,598,177 | 65,757,921 | 65,538,037 |
Diluted, Weighted average number of common shares outstanding | 65,890,848 | 65,973,870 | 65,757,921 | 65,910,325 |
Performance Share Units | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments (in shares) | 79,489 | 372,495 | 358,851 | |
Restricted Stock | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments (in shares) | 11,413 | 3,198 | 13,437 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Parenthetical) (Details) - shares | Sep. 30, 2020 | Sep. 30, 2019 |
Restricted Stock | ||
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Contingently issuable shares excluded from the basic weighted average shares outstanding | 68,140 | 31,405 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
Performance Share Units | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 2,391,082 |
Restricted Stock | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 68,140 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Change in Accumulated Other Comprehensive Loss by Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | $ 494,260 | $ 646,525 | $ 550,403 | $ 581,429 |
Other comprehensive income (loss), net of taxes | 52,288 | (48,499) | 21,519 | (28,151) |
Total shareholders' equity | 550,707 | 591,387 | 550,707 | 591,387 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (114,709) | |||
Other comprehensive income before reclassifications | 21,488 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss), net of taxes | 21,488 | |||
Total shareholders' equity | (93,221) | (93,221) | ||
Defined Benefit Pension and Other Post-Retirement Benefit Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (1,851) | |||
Other comprehensive income before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 31 | |||
Other comprehensive income (loss), net of taxes | 31 | |||
Total shareholders' equity | (1,820) | (1,820) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (147,329) | (107,822) | (116,560) | (128,170) |
Other comprehensive income before reclassifications | 21,488 | |||
Amounts reclassified from accumulated other comprehensive loss | 31 | |||
Other comprehensive income (loss), net of taxes | 52,288 | (48,499) | 21,519 | (28,151) |
Total shareholders' equity | $ (95,041) | $ (156,321) | $ (95,041) | $ (156,321) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
MPR - Cariboo Mill | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Related party transaction, purchases from related party | $ 20,717 | $ 21,232 | $ 54,253 | $ 76,388 | |
Receivable balance from related party | $ 4,482 | $ 4,482 | $ 3,462 | ||
MPR - logging JV | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Related party transaction, purchases from related party | $ 3,265 | $ 3,074 | $ 11,543 | $ 11,923 | |
Accounts payable, related parties | $ 463 | $ 463 | $ 1,151 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)mill | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)mill | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of pulp mills | mill | 4 | 4 | |||
Assets | $ 2,044,735 | $ 2,044,735 | $ 2,065,720 | ||
Investment in joint ventures | 47,865 | 47,865 | 53,122 | ||
Revenues | 333,151 | $ 383,536 | 1,024,945 | $ 1,293,239 | |
Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 1,767,397 | 1,767,397 | 1,782,105 | ||
Revenues | 274,916 | 345,060 | 876,567 | 1,166,333 | |
Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 99,743 | 99,743 | 83,102 | ||
Revenues | 57,053 | 36,458 | 144,558 | 120,349 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 177,595 | 177,595 | $ 200,513 | ||
Revenues | 1,182 | 2,018 | 3,820 | 6,557 | |
Intersegment Eliminations | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 42 | 59 | 388 | 423 | |
Intersegment Eliminations | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,246 | $ 2,360 | $ 9,676 | $ 11,713 | |
MPR - Cariboo Mill | |||||
Segment Reporting Information [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% |
Segment Information - Schedule
Segment Information - Schedule of Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 333,151 | $ 383,536 | $ 1,024,945 | $ 1,293,239 | |
Operating income (loss) | 13,736 | 18,747 | 48,113 | 150,109 | |
Depreciation and amortization | 31,884 | 32,052 | 95,031 | 94,447 | |
Total assets | 2,044,735 | 2,044,735 | $ 2,065,720 | ||
Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 253,056 | 322,707 | 808,923 | 1,095,225 | |
Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 53,612 | 32,687 | 132,209 | 107,172 | |
Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 25,268 | 25,992 | 78,950 | 84,740 | |
Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,215 | 2,150 | 4,863 | 6,102 | |
Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 274,916 | 345,060 | 876,567 | 1,166,333 | |
Operating income (loss) | 3,753 | 21,386 | 33,302 | 157,157 | |
Depreciation and amortization | 28,251 | 29,744 | 85,841 | 87,616 | |
Total assets | 1,767,397 | 1,767,397 | 1,782,105 | ||
Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 57,053 | 36,458 | 144,558 | 120,349 | |
Operating income (loss) | 11,963 | 544 | 21,845 | 2,075 | |
Depreciation and amortization | 3,446 | 2,016 | 8,627 | 5,937 | |
Total assets | 99,743 | 99,743 | 83,102 | ||
Operating Segments | Pulp | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 253,056 | 322,707 | 808,923 | 1,095,225 | |
Operating Segments | Pulp | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Lumber | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Lumber | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 53,612 | 32,687 | 132,209 | 107,172 | |
Operating Segments | Energy and Chemicals | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 21,860 | 22,353 | 67,644 | 71,108 | |
Operating Segments | Energy and Chemicals | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,226 | 1,621 | 7,486 | 7,075 | |
Operating Segments | Wood Residuals | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Wood Residuals | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,215 | 2,150 | 4,863 | 6,102 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,182 | 2,018 | 3,820 | 6,557 | |
Operating income (loss) | (1,980) | (3,183) | (7,034) | (9,123) | |
Depreciation and amortization | 187 | 292 | 563 | 894 | |
Total assets | 177,595 | 177,595 | $ 200,513 | ||
Corporate, Non-Segment | Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,182 | 2,018 | 3,820 | 6,557 | |
Corporate, Non-Segment | Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 61,301 | 43,720 | 171,224 | 163,036 | |
United States | Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 29,295 | 30,693 | 102,813 | 124,039 | |
United States | Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 31,466 | 13,027 | 66,710 | 38,997 | |
United States | Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 540 | 0 | 1,701 | 0 | |
Germany | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 91,279 | 109,254 | 285,716 | 379,538 | |
Germany | Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 79,535 | 97,339 | 246,775 | 338,678 | |
Germany | Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 11,744 | 11,915 | 38,941 | 40,860 | |
Germany | Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
China | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 83,554 | 113,578 | 247,916 | 347,232 | |
China | Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 83,554 | 113,578 | 247,916 | 347,232 | |
China | Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
China | Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Other Countries | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 97,017 | 116,984 | 320,089 | 403,433 | |
Other Countries | Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 82,532 | 103,450 | 279,063 | 356,384 | |
Other Countries | Operating Segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 13,843 | 11,516 | 38,907 | 40,492 | |
Other Countries | Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 642 | $ 2,018 | $ 2,119 | $ 6,557 |
Segment Information - Schedul_2
Segment Information - Schedule of Results by Segment (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting [Abstract] | ||
Investment in joint ventures | $ 47,865 | $ 53,122 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,129,985 | |
Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 34,485 | |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,095,500 | $ 1,156,673 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,129,985 | |
Fair Value, Significant Other Observable Inputs (Level 2) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 34,485 | |
Fair Value, Significant Other Observable Inputs (Level 2) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,095,500 | 1,156,673 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Significant unobservable inputs (Level 3) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Significant unobservable inputs (Level 3) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Realized gain on sale of investments | $ 15,443 | $ 15,443 | |
Accounts receivable | 202,619 | 202,619 | $ 208,740 |
Cash and cash equivalents | 345,580 | 345,580 | 351,085 |
Senior Notes | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying value of senior notes, net of note issuance costs and premium | $ 1,089,717 | $ 1,089,717 | $ 1,087,932 |